What happened

Week to date, shares of The Trade Desk (TTD -7.16%) were up 8.9% as of 11:58 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The advertising technology provider has received some good news recently that has investors feeling more optimistic about the company's prospects. 

Year to date, the stock is down 49% amid a weakening economy that is negatively impacting the digital advertising market.

So what

The softening economy has made it challenging for investors to see any meaningful near-term growth catalysts for Trade Desk, which is why the stock has sold off this year. But recent developments have started to shift the narrative.

On July 12, Trade Desk announced a deal with Walt Disney to provide advertisers better access to Disney's properties. 

The next day, Netflix announced that Microsoft would power its advertising technology for a new ad-supported subscription tier launching in 2023. Netflix's move to launch an ad-supported plan could drive significant demand for ad spending on The Trade Desk's platform.

Now what

Netflix has struggled to grow subscribers this year, but it still has a massive audience of 220 million subscribers. That could result in a lot of new business for Trade Desk, which charges a fee based on the total ad spending over its platform.

One analyst thinks Trade Desk could gain between $300 million to $950 million in incremental revenue next year from ad spending on Netflix. That is quite significant given Trade Desk's trailing-12-month revenue of $1.3 billion.