Trade Desk's (TTD) narrative has "turned cautious" as it faces rising competitive intensity, primarily from Amazon (AMZN) DSP, Wedbush said in a Friday note.

Amazon has aggressively improved its DSP capabilities and offerings, and several marketers have migrated larger budgets to the platform from Trade Desk, Wedbush analysts said. Amazon is unlocking access to traditionally exclusive digital advertising inventory as it recently entered into partnerships with Disney (DIS) and Roku (ROKU), suggesting that Trade Desk's value proposition could "erode over time," the analysts said.

Trade Desk stated that macro uncertainty and regulatory changes could pressure large global brands, which has limited the visibility of H2 results, according to the note. The analysts said they expect 2025 revenue growth to be 17.4%, below initial estimates of around 21% at the start of the year.

Though Trade Desk is well positioned to benefit from the shift from linear TV advertising to connected TV, the analysts said they anticipate a slower long-term trajectory for the company, as well as the potential need for increase investments to support growth in case competition intensifies further, the analysts said.

Wedbush lowered the company's stock rating to neutral from outperform and price target to $68 from $90.

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