Trade Desk (TTD) is expected to expand its revenue, but growing competition from Amazon's (AMZN) demand-side platform has started to pressure its prospects, Wedbush said in a Friday note.

"Accelerating competition from Amazon's DSP has begun to erode TTD's future growth potential as Amazon takes a larger share of marketer budgets," Wedbush analysts said.

The company is deeply integrating itself across the broader media and digital ecosystem, especially beyond the closed "walled gardens" of platforms like Google and Facebook, forming expanding partnerships, the analysts said. They noted that linear TV advertisers are shifting their budgets to connected TV and other digital platforms like audio.

Trade Desk's content-agnostic approach allows it to serve ads across various content types, offering flexibility to advertisers.

However, the analysts are concerned that its Ventura smart TV operating system will not be compelling enough to persuade viewers to switch from their preferred TV operating system without a massive marketing effort.

Wedbush kept its neutral rating and $50 price target.

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