The Trade Desk’s stock plummeted nearly 40% after its CEO dismissed Amazon as a competitive threat, a situation made worse by a bombshell report from The Information revealing the company’s key partnership with Walmart is no longer exclusive.
Nothing to see here: On an August 7th earnings call, CEO Jeff Green tried to quell investor fears by claiming Amazon isn't a true rival due to conflicts of interest. “Amazon is not a competitor,” Green told analysts, suggesting it was “more of a potential partner, honestly.”
The numbers say otherwise: Wall Street wasn't convinced. Amazon’s ad business is on a tear, growing 22% in its last quarter to nearly $16 billion. Its aggressive moves into connected TV—including live sports on Prime Video and a new deal to sell Roku’s ad inventory—make it look less like a partner and more like a steamroller.
A crack in the shield: The loss of the exclusive Walmart deal, reportedly driven by the retailer’s frustration over high fees, dismantles a key part of The Trade Desk's defense against Amazon. While the company insisted it remains “fully committed” to the partnership, the damage to its competitive narrative was already done.
