KeyBanc skeptical of Trade Desk launching smart TV operating system

KeyBanc analyst Justin Patterson expressed skepticism on the report from Lowpass that Trade Desk (TTD) is building its own smart TV operating system and pitching it to hardware makers. While the firm “can’t completely dismiss” the report, notes that Trade Desk has advocated for an open industry and “no more walled gardens.” Introducing a new operating system could be perceived as going back on this approach, the analyst tells investors in a research note. In addition, the optics of launching an operating system after partnering with Roku (ROKU) “also would be poor, and potentially create risk around future partnerships,” according to KeyBanc. The firm has a Sector Weight on Roku and Overweight on Trade Desk. Shares of Roku are down 1.5% to $67.40 in afternoon trading.