The Trade Desk’s shares took a sharp decline of nearly 40%, marking its worst drop on record, due to concerns over increased competition from Amazon. The company, which helps companies target people across the web with ads, beat earnings expectations but failed to calm Wall Street’s worries.
Analysts cite Amazon’s expanding ad business as a major factor in the downturn. The e-commerce giant has secured deals with Roku and Prime Video, offering live sports programming that is attracting advertisers. This growth is making it harder for smaller players like The Trade Desk to compete.
In response, CEO Jeff Green argued that his company remains an important player due to its neutral seller status, unlike Amazon. He claimed Amazon’s ad business is not a direct competitor, and suggested the platform may eventually allow companies like his own to sell ads on Prime Video.
However, analysts remain skeptical, citing an increasingly competitive connected TV ad landscape. With major players like Netflix, Disney+, and Amazon entering the market, the growth potential for smaller companies like The Trade Desk is limited.
LightShed analysts described CEO Green’s stance as “seriously delusional” or living in a “fantasy world.” MoffettNathanson’s Michael Nathanson cut his rating to sell from neutral, citing the “Amazon shadow” over The Trade Desk’s stock.
Despite this, some analysts remain optimistic. Evercore maintained an outperform rating, citing growing partnerships with Netflix and Spotify for advertising sales. However, the overall outlook remains grim for The Trade Desk due to Amazon’s growing dominance in the TV ad market.
Source: https://www.businessinsider.com/the-trade-desk-shares-fell-competition-with-amazon-2025-8