The Trade Desk Stock Plummets Amid Amazon-Netflix Ad Partnership and Morgan Stanley Downgrade

The Trade Desk (TTD) shares tumbled 12.1% as artificial intelligence stocks broadly rallied. The adtech leader faced a double whammy: Amazon's DSP integration with Netflix's ad inventory and a Morgan Stanley downgrade.

Amazon's new partnership grants advertisers using its Demand-Side Platform direct access to Netflix's rapidly growing ad tier across major global markets. This alliance strengthens the "walled garden" ecosystems that challenge The Trade Desk's position. Morgan Stanley compounded the pressure, slashing its price target from $80 to $50 while admitting misjudgment about the company's growth durability.

This development marks another setback for The Trade Desk, already 2023's worst performer in its sector. The company continues battling intensified competition from tech giants building comprehensive advertising ecosystems.