Trade Desk On Back Foot After Amazon’s Disney, Roku Ad Tech Deals? Here’s What Analysts Think

Earlier this week, Amazon announced a similar deal with Roku, with the integration aimed at giving advertisers access to 80 million U.S. ConnectedTV households in the U.S. exclusively through Amazon DSP.

After Amazon’s (AMZN) advertising unit announced integration with Walt Disney Co.’s (DIS) Real-Time Ad Exchange (DRAX), MoffettNathanson analyst Michael Nathanson said the e-commerce giant was chipping away at Trade Desk’s (TTD) moat.

Trade Desk is a cloud-based, demand-side platform (DSP) that empowers advertisers to create, manage, and optimize digital advertising campaigns across various formats and devices.

Earlier this week, Amazon announced a similar deal with Roku, with the integration aimed at giving advertisers access to 80 million U.S. ConnectedTV (CTV) households in the U.S. exclusively through Amazon DSP.

The Fly reported that Nathanson said the recent integrations of Amazon's DSP with Roku and Disney are "a net negative" for Trade Desk.

The analyst has a ‘Neutral’ rating on Trade Desk stock.

Following the Amazon-Roku deal, Benchmark analyst Mark Zgutowicz said Trade Desk has a "substantially stronger advertiser base" relative to Amazon DSP, particularly given its "vastly superior open internet reach.

The analyst said he does not see significant implications regarding Trade Desk's advertiser share loss relative to Amazon DSP unless Roku's existing partnership agreement with Trade Desk has changed.

According to the analyst, the key question is the relative exclusivity Roku may now offer Amazon relative to Trade Desk.

Benchmark has a ‘Hold’ rating on Trade Desk shares.

Investing.com reported that BMO Capital Markets reiterated an ‘Outperform’ rating and $115 price target for Trade Desk.

The research firm called the Amazon-Roku partnership "potentially somewhat of a headline overhang for TTD.” The firm said the move was an expected one by Amazon to help fill Prime Video inventory.

On Stocktwits, retail sentiment toward Trade Desk stock was ‘bullish’ (55/100) by late Tuesday, improving from the ‘neutral’ mood that prevailed a day ago. The message volume on the Trade Desk stream was ‘high.’

A  bullish user urged fellow retailers to “always believe” in the stock, adding, "It’s been manipulated and then some bad market news… hate the Middle East clashes.”

Trade Desk stock slumped 3.72% to $67.64 on Tuesday following the Amazon-Disney partnership announcement. The stock is down over 42% for the year-to-date period.

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