Street Calls of the Week
Investing.com -- The Trade Desk (NASDAQ:TTD) stock declined 7% following news that Amazon Ads and Netflix (NASDAQ:NFLX) have formed a partnership that will allow advertisers using Amazon’s demand-side platform (DSP) to access Netflix’s premium ad inventory.
The partnership, announced today, will enable brands to purchase Netflix ad space programmatically through Amazon DSP starting in the fourth quarter of 2025. The service will be available across 11 countries, including the United States, United Kingdom, Germany, and Japan.
This development poses a potential competitive challenge to The Trade Desk, which operates one of the largest independent demand-side platforms in the digital advertising ecosystem. The company has positioned itself as an alternative to tech giants like Google and Amazon in the programmatic advertising space.
According to the announcement, Amazon DSP will leverage its first-party data insights and AI capabilities to help advertisers target Netflix’s global audience more effectively. Paul Kotas, Senior Vice President of Amazon Ads, stated that the partnership aims to "remove the guesswork for advertisers by making it simple to manage all of their TV planning and buying with Amazon Ads."
Amy Reinhard, President of Advertising at Netflix, noted that the integration aligns with Netflix’s strategy to provide advertisers "greater flexibility in their buys to achieve their marketing goals."
The market reaction reflects investor concerns that this partnership could divert advertising dollars away from alternative platforms like The Trade Desk as major advertisers may consolidate more of their programmatic spending through Amazon’s ecosystem.