Trade Desk's Stock Jumps 14% on S&P 500 Inclusion, Replacing Ansys After Acquisition.

The Trade Desk's stock jumped 14% in extended trading after the company was added to the S&P 500. Ansys was removed from the index due to its acquisition by Synopsys. Trade Desk's market cap has taken a hit this year, down 36%, but the inclusion in the S&P 500 is expected to boost the stock. The company competes with Amazon and Google in the digital advertising space.

The Trade Desk (NASDAQ: TTD) stock experienced a significant jump of 14% in extended trading following its addition to the S&P 500 index. This move comes as a major milestone for the digital advertising platform, which will replace ANSYS Inc. (NASDAQ: ANSS) in the prestigious index [1].

The inclusion in the S&P 500 typically drives significant buying pressure as index funds tracking the S&P 500 must purchase shares of newly added companies. The Trade Desk, which operates in the Communication Services sector, will be added prior to the opening of trading on Friday, July 18, 2025 [1].

The announcement of The Trade Desk's inclusion coincides with ANSYS's acquisition by Synopsys Inc. (NASDAQ: SNPS), which is expected to be completed on July 17. ANSYS will be removed from the S&P 500 index as a result of this acquisition [1].

The Trade Desk's stock has been under pressure this year, with its market capitalization down by 36%. However, the S&P 500 inclusion is expected to boost the stock, providing the company with greater visibility and liquidity, while potentially lowering its cost of capital [1].

The Trade Desk competes with major players like Amazon and Google in the digital advertising space. Its addition to the S&P 500 index underscores the growing importance of digital advertising technology companies in the broader market landscape [1].

References:
[1] https://www.investing.com/news/stock-market-news/the-trade-desk-stock-surges-after-sp-500-inclusion-announcement-93CH-4134507