The Trade Desk Inc (NASDAQ:TTD) is experiencing a surge in its shares Thursday afternoon following a significant development in the advertising technology landscape. The catalyst behind the move appears to be the recent announcement made by Netflix Inc (NASDAQ:NFLX) regarding its plans to launch an in-house advertising technology platform by the end of 2025.
What To Know: The groundbreaking move by Netflix, announced Wednesday, signals a shift in the advertising ecosystem, with implications for companies operating in the digital advertising space. By launching its own ad tech platform, Netflix aims to provide advertisers with new ways to buy, leverage insights and measure impact, thereby enhancing the effectiveness of advertising campaigns on its platform.
Netflix announced plans to expand its buying capabilities to include The Trade Desk, Google's Display & Video 360 and Magnite this summer. The trio will join Microsoft as the main programmatic partners for advertisers.
Netflix's decision to expand its buying capabilities to include The Trade Desk, among other programmatic partners, underscores the growing importance of companies like The Trade Desk in the digital advertising ecosystem. As one of the main programmatic partners for advertisers on Netflix, The Trade Desk stands to benefit from increased demand for its advertising solutions.
"There's a lot to be excited about over the next year. But the story of ads on Netflix this year is pretty simple: It's about growth and momentum," said Peter Naylor, vice president of advertising sales at Netflix.
Analysts Reactions: Analysts at Truist Securities, Susquehanna and Loop Capital remained bullish on The Trade Desk following the announcement from Netflix.
Truist Securities' Youssef Squali maintained a Buy rating with a price target of $105, while Susquehanna's Shyam Patil retained a Positive rating with a price target of $110. Loop Capital's Rob Sanderson echoed this sentiment, upping the price target to $109 from $102, affirming the company's resilience and growth potential in the face of evolving industry dynamics.
Overall, the announcement from Netflix represents a significant opportunity for The Trade Desk to expand its reach and solidify its position in the digital advertising market.
TTD Price Action: The Trade Desk Shares are up by 3.44% at $93.46 Thursday afternoon according to Benzinga Pro.
Image: Courtesy of The Trade Desk, Inc.