Shares of Trade Desk Inc ( TTD ) moved sharply lower on Thursday on news of it losing share to Amazon.com Inc ( AMZN )'s demand-side platform (DSP),

Since Trade Desk ( TTD ) is a pure-play DSP, it has "several structural advantages" compared to Amazon's ( AMZN ) platform, according to Needham.

The Trade Desk ( TTD ) Analyst: Analyst Laura Martin maintained a Buy rating and price target of $84.

The Trade Desk Thesis: While the company specializes in brand building and reach-related ads for the world's largest advertisers, Amazon ( AMZN ) focuses on buying-related ads for medium-sized businesses, Martin said in the note.

Check out other analyst stock ratings.

Trade Desk's ( TTD ) clients buying performance ads on Amazon ( AMZN ) "is normal, not troubling," she added.

Moreover, the analyst mentioned some structural advantages of Trade Desk's ( TTD ) ads:

Customers from the largest ad categories, like e-commerce, offline retail, and GenAI, consider Amazon ( AMZN ) a competitor and would not want to share their data.

Unlike Amazon ( AMZN ), Trade Desk ( TTD ) supports buying ads on every device, across every category, at scale.

Trade Desk ( TTD ) uses data across 10,000 websites to optimize returns, while Amazon ( AMZN ) provides comparison only on its own site.

Amazon ( AMZN ) has financial motivations to send customers' ad dollars to its owned media properties like its e-commerce platform and Prime Video, even if it means lower returns. "TTD’s core value proposition is its independence," she wrote.

Referring to Trade Desk's ( TTD ) latest share price decline, Martin said, "We are buyers of TTD on this weakness."

TTD Price Action: Shares of Trade Desk ( TTD ) were down 0.22% to $70.96 at the time of publication on Friday.

Read More:

 The Trade Desk Stock Drops As Advertisers Shift To Amazon