Netflix-Amazon Ad Partnership Sparks 12% Plunge in Trade Desk Shares

The Trade Desk (TTD) shares plummeted 12% in a single trading session following Netflix's advertising partnership with Amazon. Morgan Stanley analyst Matthew Cost downgraded TTD from Buy to Hold, slashing his price target from $80 to $50 amid concerns over weakening connected-TV and online ad businesses.

The deal allows advertisers to purchase Netflix ad inventory through Amazon's demand-side platform, creating direct competition for The Trade Desk's Core DSP offering. Cost cited "mounting headwinds" in connected-TV and admitted overestimating the company's growth resilience.

This development compounds a challenging year for TTD, with shares down approximately 60% year-to-date. The company's position in the digital advertising ecosystem faces renewed pressure as streaming platforms vertically integrate their ad tech stacks.