AppLovin Falls 3% After Trade Desk Included in S&P 500 Index

AppLovin's stock fell 3% to $346.62 after Trade Desk's inclusion in the S&P 500 index. The inclusion of Trade Desk in the index may have negatively impacted AppLovin's stock price.

The Trade Desk, Inc. (NASDAQ:TTD) has seen a significant boost following its inclusion in the S&P 500 index, effective July 18, 2025. The digital ad platform's stock jumped 11.5% on the announcement, with shares trading at $86.67 after-hours on July 1, 2025 [2]. This inclusion comes as a result of the S&P Dow Jones Indices' decision to replace ANSYS Inc. (NASDAQ:ANSS) in the index, which is being acquired by Synopsys Inc. (NASDAQ:SNPS) [2].

The addition of The Trade Desk to the S&P 500 is expected to drive significant buying pressure, as index funds tracking the S&P 500 must purchase shares of newly added companies [2]. This inclusion also provides The Trade Desk with greater visibility and liquidity, potentially lowering its cost of capital [2].

Meanwhile, AppLovin Corp (NASDAQ:APP) has seen a notable impact on its stock price following The Trade Desk's inclusion. AppLovin's stock fell 3% to $346.62, with the company's shares moving lower as investors and analysts had been closely watching for potential S&P 500 additions [2]. The inclusion of The Trade Desk may have negatively impacted AppLovin's stock price, as the two companies operate in the Communication Services sector and compete in the digital advertising space [2].

The Trade Desk's addition to the S&P 500 represents a significant milestone in the company's growth trajectory, with the inclusion of digital advertising technology companies growing in importance in the broader market landscape [2]. As The Trade Desk continues to grow and expand its digital advertising platform, investors and financial professionals should closely monitor its performance and the potential impact on other companies in the sector.

References:
[1] https://seekingalpha.com/article/4801458-the-trade-desk-let-it-run
[2] https://www.investing.com/news/stock-market-news/the-trade-desk-stock-surges-after-sp-500-inclusion-announcement-93CH-4134507
[3] https://www.benzinga.com/trading-ideas/movers/25/07/46405791/the-trade-desk-stock-surges-on-sp-500-inclusion-robinhood-applovin-shares-slide