As 2025 comes to a close, The Trade Desk (TTD 1.04%) remains one of the most closely watched companies in digital advertising. For years, the company earned its reputation as the independent alternative to Google and Meta Platforms, helping advertisers reach audiences across the open internet with transparency and control.

But this year marked a turning point. Competitive dynamics shifted, execution expectations reset, and the industry’s center of gravity continued to move toward large ecosystems with rich first-party data. The Trade Desk still stands on a strong footing, yet investors are entering 2026 with a more nuanced view of both the opportunity and the risks ahead.

Here are the three most important lessons from 2025.

Image source: Getty Images.

The Trade Desk remains strong, but the aura of flawless execution is gone

For nearly a decade, The Trade Desk built one of the most impressive track records in tech — more than 30 consecutive quarters of revenue beats, consistent margin expansion, and customer retention above 95%. That reliability became part of the company’s identity.

But by the end of 2024 and into early 2025, cracks finally appeared. The company reported its first revenue miss in years. Although growth rebounded quickly — rose in the high teens through 2025 — the miss altered investor psychology. The Trade Desk showed it is not immune to macro pressures, competitive intensity, or operational growing pains.

This doesn’t diminish the business. Retention remained above 95%, spending on the platform increased, and The Trade Desk continued investing aggressively in AI, identity, and related areas. Yet 2025 reminded investors that even excellent companies face tougher stretches.

In short, future performance will matter more than past streaks.

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Competition intensified sharply — especially from Amazon

This will be remembered as the year when Amazon Ads reshaped the digital advertising competitive landscape. Amazon’s advertising business surpassed $50 billion in annual revenue, and its influence expanded further as the company deepened its presence in streaming and programmatic buying.

The biggest development came when Netflix chose Amazon as its primary programmatic partner, giving Amazon’s demand-side platform access to some of the most valuable connected TV (CTV) inventory worldwide. Similar partnerships with Walt Disney and Roku reinforced Amazon’s growing dominance.

This shift matters. CTV sits at the center of The Trade Desk’s long-term growth strategy. Premium streaming inventory is both scarce and critical. When Amazon secures relationships at that level, the competitive bar rises, and The Trade Desk must work harder to maintain relevance and secure access to supply.

Meanwhile, Google and Meta strengthened their own ecosystems. Both companies rolled out deeper AI-driven personalization and leaned heavily on first-party data advantages. That combination further entrenched advertiser budgets inside walled gardens, heightening the challenge for independent platforms like The Trade Desk.

The Trade Desk still has plenty of room to grow. But the market it operates in looks more competitive than it did just a few years ago.

The open internet ecosystem remains The Trade Desk’s biggest advantage — and risk

The Trade Desk’s north star has always been the open internet. Its value proposition centers on neutrality, transparency, and cross-platform reach — something walled gardens don’t offer. In 2025, the company doubled down on that mission:

• UID2 expanded as a privacy-safe identity standard.
• OpenPath and curated publisher programs increased direct access to premium inventory.

These investments strengthened the ecosystem outside Amazon, Google, and Meta. Advertisers still want diversification, and publishers still seek independence. The Trade Desk plays a key role in enabling both.

But 2025 also exposed the fragility of the open internet. As more consumption shifts to streaming platforms and AI-powered interfaces, control increasingly consolidates within large ecosystems. If more publishers choose exclusive or preferential relationships with Amazon or other giants, The Trade Desk could lose meaningful supply over time.

The company’s future depends on keeping the open internet competitive, and proving it can deliver value that closed ecosystems can’t.

What does it mean for investors?

The Trade Desk heads into 2026 with a strong business, a powerful product roadmap, and a loyal customer base. But the landscape around it has changed. Execution needs to stay sharp, competitive pressures are real, and the open-internet thesis faces new tests.

The company isn’t in trouble, far from it. But investors should approach 2026 with clearer eyes and higher standards before making any investment in the company.