Should You Buy TTD Stock Following S&P 500 Inclusion?

Thursday, Jul 17, 2025 2:18 am ET1min read

Trade Desk (TTD) shares surge 8% after being added to the S&P 500 Index, replacing Ansys (ANSS) on July 18. Index inclusion often unlocks significant upside in a stock. Despite the surge, TTD stock is down 35% from its year-to-date high. BMO analysts see significant further upside in TTD shares to $115, citing strong liquidity and a new AI platform, Kokai. The consensus rating on TTD stock is "Moderate Buy."

Title: Trade Desk Shares Surge After S&P 500 Inclusion

Trade Desk (TTD) shares surged nearly 8% today following the announcement that the advertising technology company will replace software maker Ansys (ANSS) in the S&P 500 Index on July 18. This inclusion is expected to create significant demand for TTD stock, potentially pushing its price further upward in the coming weeks.

The addition to the S&P 500 is a significant milestone for Trade Desk, positioning it in the mid-range of S&P 500 companies by valuation. Despite the recent surge, TTD stock is down approximately 35% from its year-to-date high set in January. However, the inclusion in the S&P 500 index is seen as a major validation of Trade Desk's leadership in the digital advertising sector.

BMO analysts have reiterated their Outperform rating on TTD shares, with a price target of $115. They cited strong liquidity, with more cash on the balance sheet than debt, and the company's new AI platform, Kokai, as reasons for the bullish outlook. The platform is seen as a "step-function change" that simplifies the ad-buying process and should drive incremental ad spending over time.

The consensus rating on TTD stock is "Moderate Buy," with analysts expecting further upside of around 10% from current levels. Despite the recent surge, the stock remains volatile, reflecting the competitive nature of the digital advertising landscape.

References:
[1] https://finance.yahoo.com/news/trade-desk-joining-p-500-190315222.html
[2] https://www.ainvest.com/news/trade-desk-stock-surges-500-inclusion-2507/
[3] https://www.investing.com/news/analyst-ratings/bmo-capital-reiterates-outperform-rating-on-the-trade-desk-stock-93CH-4136074
[4] https://za.investing.com/news/analyst-ratings/bmo-capital-reiterates-outperform-rating-on-the-trade-desk-stock-93CH-3790168

Should You Buy TTD Stock Following S&P 500 Inclusion?

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