Netflix's Advertising Platform Drives Trade Desk and Magnite Stock Prices Higher
The Trade Desk (TTD) and Magnite (MGNI) saw their stock prices rise on Wednesday following Netflix's announcement of an in-house advertising technology platform. This platform is expected to launch by the end of 2025.
Netflix's ad-supported plan has already reached 40 million global monthly active users (MAUs), with 40% of all signups in ad-supported countries coming from the ad plan. The company also announced plans to expand its roster of buy-side programmatic partners beyond Microsoft this summer. This expansion will include The Trade Desk, Google's Display & Video 360, and Magnite.
Netflix President of Advertising, Amy Reinhard, emphasized the company's commitment to providing a positive user experience with ads. "We're being incredibly strategic about how we present ads because we want our members to have a phenomenal experience," she said. "We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands."
The Trade Desk and Magnite shares closed up 4.72% and 8.41% respectively on Wednesday, reflecting investor optimism about the potential benefits of Netflix's advertising platform.