Why The Trade Desk, Roku, and Other Digital Advertising Stocks Got Crushed Today
Netflix (NASDAQ: NFLX) made a surprise move yesterday regarding its ad-supported tier, and the decision is sending shock waves across the digital advertising landscape. As a result of the unexpected decision, many digital advertising stocks are crumbling today on what was already a decidedly down day for Wall Street.
Shares of The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI) were hit the hardest, down 8.2% and 7.8%, respectively, at 12:21 p.m. ET. At the same time, Roku (NASDAQ: ROKU) and Criteo (NASDAQ: CRTO) also slumped, down 5.5% and 7.3%, respectively.
In the wake of its first subscriber loss in more than a decade, Netflix made the long-awaited decision to develop a paid, ad-supported tier for its streaming video service. The rumor mill has been in overdrive in recent weeks regarding both potential acquisitions and advertising partnerships. Netflix put all the rumors to rest yesterday, making a decision that no one had seen coming. The company announced yesterday it had picked Microsoft (NASDAQ: MSFT) as its ad-tech partner.
Source Fool.com
