Retail giant Walmart (WMT) might be pulling back from its close partnership with adtech firm The Trade Desk (TTD), according to The Information. Until recently, advertisers using Walmart’s shopper data for web ads had to go through The Trade Desk’s platform. However, that deal was recently renegotiated and is no longer exclusive, which means that Walmart can now use other ad-buying platforms too. This is a big deal because Walmart has been one of The Trade Desk’s most important clients and has helped it compete with Amazon (AMZN) in the digital advertising space.
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At the same time, advertisers have been spending less due to tariff concerns, which has hurt The Trade Desk’s business. Meanwhile, Amazon is moving quickly to take over more of the online ad market. In fact, it is offering big incentives to advertisers, has recently made a deal with Roku (ROKU), and cut its platform fees to just 1%, while The Trade Desk reportedly charges Walmart’s advertisers double-digit fees. As a result, Walmart wants more control over its advertising tech, especially since it earned $4.4 billion in ad revenue in 2024, which was up 27% from the year before.
Though it is unlikely to partner with Amazon due to their rivalry, Walmart has other options, such as Google (GOOGL), and could even build or buy its own platform. Indeed, it recently replaced Roku’s software in its store-brand TVs with tech from Vizio, a company it bought, which shows that it is serious about owning its tools. While both Walmart and The Trade Desk say their relationship is still strong, the changes suggest that Walmart is preparing for a more independent future.
Is WMT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 30 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average WMT price target of $112.29 per share implies 11.2% upside potential.
