Key Facts
Shares of The Trade Desk (NASDAQ: TTD) rose by as much as 5.2% on Wednesday, hitting a peak increase of 4.7% as of 12:31 p.m. ET. This surge follows reports that Amazon’s advertising practices are under scrutiny, with 22 states joining a lawsuit filed by the Federal Trade Commission (FTC).
The FTC alleges Amazon engaged in deceptive practices, overcharging advertisers through undisclosed surcharges and concealing the true costs of its ad auctions. In response, Amazon criticized the lawsuit as “misguided,” asserting that the FTC’s understanding of advertiser operations is flawed.
This legal scrutiny may benefit The Trade Desk, which promotes transparent pricing for advertisers. The company has faced decelerating growth for the last six quarters, but the current situation could encourage advertisers to shift dollars towards more independent platforms.
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