The Trade Desk Inc 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 ( 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 ( NFLX ), 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 ( NFLX ) 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 ( NFLX ) announced plans to expand its buying capabilities to include The Trade Desk ( TTD ), 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 ( TTD ), among other programmatic partners, underscores the growing importance of companies like The Trade Desk ( TTD ) in the digital advertising ecosystem. As one of the main programmatic partners for advertisers on Netflix ( NFLX ), The Trade Desk ( TTD ) 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 ( NFLX ) this year is pretty simple: It's about growth and momentum,” said Peter Naylor, vice president of advertising sales at Netflix ( NFLX ).

Analysts Reactions: Analysts at Truist Securities, Susquehanna and Loop Capital remained bullish on The Trade Desk ( TTD ) following the announcement from Netflix ( NFLX ).

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 ( NFLX ) represents a significant opportunity for The Trade Desk ( TTD ) to expand its reach and solidify its position in the digital advertising market.

See Also: Bill Gates Sells Microsoft, Berkshire Hathaway Shares In Q1: Are These Still Top Positions?

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. ( TTD )