Shares in The Trade Desk tanked after the global advertising technology company posted its June quarter results.
The independent demand-side platform (DSP) reported a 19% rise to $US694 million in revenue, in line with expectations.
However, investors worried competition was becoming a threat and several market analysts downgraded the company.
The shares fell 38% to $54.23.
The analysts see challenges to Trade Desk from Amazon’s advertising business and the rise of AI search which is changing the flow of web traffic.
Trade Desk CEO and co-founder Jeff Green said the company’s strategy remains focused on transparency, objectivity and access to the entire internet.
“We don't see Amazon as a direct competitor because they focus on their own inventory and lack objectivity in buying across the open Internet,” he told analysts in a briefing.
“We believe a scaled independent DSP like The Trade Desk is essential for advertisers to buy across everything without conflict. “Amazon's focus on Prime Video and sponsored listings doesn't compete with us.
“We see Amazon more as a potential partner, especially if they open Prime Video to external demand.”
Green said the company continued to outpace the digital advertising market.
“The first half of 2025 has been defined by meaningful innovation across our platform,” he said.
“Kokai is helping advertisers drive better results by integrating more data into every decision, using AI as a co-pilot, and unlocking the full potential of first-party data.
“We’ve also made significant progress in CTV, retail media, and the supply chain, empowering the world’s largest brands and agencies to reach audiences across the open internet.
“With continued innovation in Kokai, growing adoption of OpenPath, and deeper partnerships across the ecosystem, we’re delivering exceptional value to our clients and helping to strengthen the open internet in the process.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.