Shares of Trade Desk Inc. (TTD) plummeted 5.07% during intraday trading, as reports emerged of Walmart distancing itself from the ad tech company. The significant drop highlights investors' concerns about the potential impact on Trade Desk's business.

According to The Information, Walmart is backing away from its partnership with Trade Desk, an Amazon ad tech rival. In a move that has rattled the market, Walmart has reportedly renegotiated its arrangement with Trade Desk to make it non-exclusive. This development suggests that Walmart may be exploring other options in the competitive ad tech space, potentially weakening Trade Desk's position in the market.

The news is particularly impactful given Trade Desk's status as a rival to Amazon in the ad tech industry. Walmart's partnership has been seen as a strategic advantage for Trade Desk in competing against the e-commerce giant. The shift in this relationship could signal challenges ahead for Trade Desk in maintaining its competitive edge and market share in the rapidly evolving digital advertising landscape.