Netflix recently announced a partnership with Amazon, allowing advertisers to buy ads on its platform through Amazon's demand-side platform starting later this year, intensifying competition within the connected TV advertising space.

This move directly affects The Trade Desk’s position as a leading independent adtech provider, raising questions about the value of inventory exclusivity and sharpening industry focus on competitive risks.

We’ll explore how Amazon gaining access to Netflix’s valuable ad inventory could reshape the investment outlook for The Trade Desk.

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To be a shareholder of The Trade Desk, you generally need to believe in the secular shift of global advertising budgets toward data-driven, measurable outcomes, particularly in connected TV (CTV), where the company has traditionally excelled as a leading independent player. The recent Netflix-Amazon DSP partnership, however, directly strikes at this narrative by reducing The Trade Desk's CTV inventory exclusivity and bringing a powerful rival directly into competition. This move intensifies concerns that the biggest risk currently facing the company is the rising dominance of walled gardens, potentially impacting short-term growth and market share.

Among recent company developments, the departure of long-time CFO Laura Schenkein and the appointment of Alex Kayyal as her replacement are especially relevant in this context. Leadership transitions at the executive level add uncertainty at a time when The Trade Desk must respond quickly to competitive threats and execute on key strategic initiatives, particularly those tied to maintaining its share of premium CTV ad spend and evolving its AI-powered platform.

On the other hand, the new level of direct competition for marquee streaming inventory raises issues investors should watch closely, such as...

Read the full narrative on Trade Desk (it's free!)

Trade Desk's outlook anticipates $4.3 billion in revenue and $823.2 million in earnings by 2028. This projection assumes annual revenue growth of 17.1% and an earnings increase of $406 million from the current earnings of $417.2 million.

Uncover how Trade Desk's forecasts yield a $74.48 fair value, a 65% upside to its current price.

Thirty-three members of the Simply Wall St Community place Trade Desk’s fair value between US$39.48 and US$111.31 per share. With walled gardens gaining inventory access, you can see why so many investors’ outlooks on future growth differ widely, consider exploring several viewpoints before making up your mind.

Explore 33 other fair value estimates on Trade Desk - why the stock might be worth 13% less than the current price!

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Trade Desk research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Our free Trade Desk research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trade Desk's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TTD.

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