The Trade Desk Inc . (NASDAQ:TTD) shares jumped over 4% Wednesday after it was revealed that Netflix (NASDAQ:NFLX) will team up with the company, Google Display & Video 360, and ad-tech firm Magnite to accelerate automated ad buying.
Here's how Wall Street reacted:
Analysts at Stifel believe the announcement is another component of their TTD thesis playing out. "We're at a CTV inflection point, and TTD is one of the best positioned to benefit," said the firm, reiterating a Buy rating on TTD.
Analysts at Truist said it is a "net, net positive" for TTD. "We view it as very positive for TTD as it should open up a massive high quality programmatic CTV ad inventory to TTD to buy on behalf of its clients," they wrote.
BMO Capital reiterated an Outperform rating and $108 price target on TTD. The firm stated that a Netflix CTV demand partnership reinforces the view that "TTD is best-positioned against a massive $150B linear TV opportunity shift towards connected TV."
Analysts at Morgan Stanley believe the announcement speaks to TTD's increasing importance in the ecosystem. They estimate that a "10% share of NFLX AVOD would drive 2% upside to TTD's '26 revenue."
Finally, analysts at Evercore ISI believe the deal is a medium-term positive for TTD. The firm maintained an Outperform rating and a $110 price target on the stock.