What happened

Shares of The Trade Desk (NASDAQ:TTD) were soaring 10.9% higher as of 3:31 p.m. EST on Monday. The buy-side programmatic advertising platform didn't announce any news today but reported better-than-expected third-quarter results late last week. Perhaps the biggest factor behind The Trade Desk's nice jump today, though, is investors' anticipation of the positive impact that the launch of Walt Disney's (NYSE:DIS) new Disney+ streaming service on Tuesday could have on The Trade Desk's growth prospects.

So what

Disney is offering a bundled package that includes Disney+, ESPN+, and the ad-supported version of Hulu. With an attractive price for the bundle of $12.99 per month, it seems likely that the option will be very popular.

Hand holding remote in front of a TV with blurred streaming options

Image source: Getty Images.

What does this mean for The Trade Desk? More consumers watching the ad-supported version of Hulu should drive higher demand for advertising spots on the streaming service. Anything that boosts demand for connected TV (CTV) advertising is great news for The Trade Desk, which offers one of the top software platforms that support buying digital ads, including CTV ads.

There's also a potential indirect way that the launch of Disney+ could help The Trade Desk. Disney and Amazon.com reached a deal last week that will make Disney+ available on Amazon Fire TV devices. Although Disney+ won't have ads, the availability of the streaming service on Fire TV devices could increase the usage of these devices. That's great for The Trade Desk, which is one of only two third-party advertising platforms through which Amazon allows advertisers to buy ads on its Fire TV devices.

Now what

Starting Tuesday, it will be off to the races for Disney+. And there's a really good chance that could mean The Trade Desk is off to the races, too. Although its prospects include a lot more than just the opportunities created by Disney+, the new service will likely be a solid tailwind for the company. The fast-expanding CTV market is perhaps the biggest reason The Trade Desk remains one of the hottest growth stocks around.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.