The Trade Desk’s ad-tech company shares plummeted almost 40% on Friday, marking their worst day on record. Despite beating earnings expectations, investors are increasingly concerned about competition from Amazon in the online advertising market.
Amazon has emerged as a significant player in digital advertising, and its demand-side platform (DSP) is gaining traction. Analysts at Wedbush warned that The Trade Desk’s value proposition could erode over time due to Amazon’s growing influence. The company’s CFO departed, citing increased competition from Amazon.
The Trade Desk reported a 19% increase in year-over-year revenue in the second quarter, topping estimates by $15 million. However, investors are cautious about the impact of President Donald Trump’s tariffs on ad spending and Amazon’s increasing role in the market.
CEO Jeff Green emphasized that The Trade Desk is essential for advertisers to buy across various platforms without conflict or compromise. He also highlighted the need for companies to respond to tariffs and inflation worries. Despite this, shares are down 54% for the year, while the S&P 500 has gained about 9%.
Source: https://www.cnbc.com/2025/08/08/trade-desk-tanks-cfo-departure-q2-results-amazon-competition.html