The Trade Desk stock holds steady as Jefferies notes Amazon’s expanding partnerships

Published 10/09/2025, 21:52
The Trade Desk stock holds steady as Jefferies notes Amazon’s expanding partnerships

Investing.com - The Trade Desk (NASDAQ:TTD) maintained its Hold rating and $50.00 price target from Jefferies amid Amazon’s newly announced partnership with Netflix (NASDAQ:NFLX), which currently trades near $1,248 with a market cap of $531 billion. According to InvestingPro data, Netflix boasts a perfect Piotroski Score of 9, indicating strong financial health.

Jefferies highlighted that Amazon’s focus on expanding beyond first-party inventory continues to evolve, with formal announcements of new or expanded partnerships with Roku, Disney, and now Netflix all occurring in 2025.

The firm noted that Amazon’s strategy of expanding into third-party supply was "inevitable" given that the majority of connected TV households consume content outside of Prime Video, allowing advertisers to leverage Amazon’s demand-side platform across the entire CTV ecosystem.

Jefferies identified the "lack of inventory exclusivity" as a negative for The Trade Desk, stating that with all major streaming services now available on Amazon’s DSP, TTD has "limited inventory advantage" which may create "ongoing investor concerns that TTD’s incumbent advantage is dissipating."

While the firm doesn’t expect material advertising revenue contribution for Netflix until 2026, Jefferies projects Netflix could double its advertising revenue to approximately $4 billion next year from an estimated $2 billion in 2025 and $1 billion in 2024, potentially representing about 8% of Netflix’s revenue. The company currently generates $41.7 billion in trailing twelve-month revenue, with a robust 48.5% gross margin and strong return on equity of 44%.

In other recent news, Netflix has been the focus of several key developments. Bernstein has reiterated its Outperform rating for Netflix with a price target of $1,390, while Citi has maintained a Neutral rating but increased its price target to $1,295. These updates come in the wake of Netflix’s second-quarter results, which have led to some mixed reactions. Meanwhile, Netflix is in the final stages of negotiating a deal to stream the "Home Run Derby" for over $35 million annually through 2028. The company is also making strides in technology by adopting artificial intelligence video tools from Runway AI for content production, a move that has sparked discussions in Hollywood about the potential impact on industry jobs. Additionally, Comcast’s NBCUniversal is nearing a significant $200 million annual deal with Major League Baseball for broadcasting rights, which includes streaming on Peacock. In other industry news, Josh Simon, a former Netflix executive, has been appointed as the new CEO of Funko, effective September 2025. These developments highlight Netflix’s strategic maneuvers in both content and technology.

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