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The Trade Desk’s Stock Declines After Netflix-Amazon Deal
The Trade Desk (NASDAQ: TTD) saw its shares tumble on Wednesday following Netflix’s announcement that advertisers can purchase ads programmatically through Amazon’s (NASDAQ: AMZN) demand-side platform (DSP) later this year. This move intensifies competition for The Trade Desk in the connected TV (CTV) advertising market.
Financial Performance and Growth Trends
In the second quarter of 2025, The Trade Desk reported a revenue increase of 19% year-over-year, reaching $694 million, alongside a margin of approximately 39% at $271 million in adjusted EBITDA. However, guidance for the third quarter suggests revenue growth will slow to 14% year-over-year, leading to questions about its sustainability in a competitive landscape where Netflix has expanded its programmatic ad partnerships.
Implications of Increased Competition
Netflix’s partnerships with major tech companies, including Amazon, deepen The Trade Desk’s competitive challenges as they threaten pricing power and market share. The Trade Desk remains an independent DSP leader with a customer retention rate above 95%, but the stock currently trades at a price-to-earnings ratio in the high 50s, prompting calls for better alignment with market risks.
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