Trade Desk Stock Surges After Being Added to S&P 500

The Trade Desk (TTD) stock jumped 9% after S&P Dow Jones Indices announced its addition to the S&P 500, replacing Ansys. The change takes effect July 18, following Ansys' $35 billion acquisition by Synopsys. The inclusion in the benchmark index may attract fresh investor interest from index-tracking funds and ETFs. Analysts note the S&P 500 entry could provide a sentiment boost for TTD despite broader tech valuations facing scrutiny.

The Trade Desk (TTD) stock experienced a significant jump of 9% after S&P Dow Jones Indices announced its addition to the S&P 500, effective July 18. This change follows the $35 billion acquisition of Ansys by Synopsys, which will see Ansys removed from the index. The inclusion in the S&P 500 could attract fresh investor interest from index-tracking funds and ETFs, potentially boosting TTD's visibility and liquidity.

The Trade Desk operates a leading demand-side platform (DSP), which helps advertisers focus on data-driven ads. The company's inclusion in the S&P 500 may provide a sentiment boost, despite broader tech valuations facing scrutiny. Analysts note that the S&P 500 entry could enhance TTD's exposure to more analysts and investors, potentially driving higher trading volumes.

TTD's strong performance in the second quarter, despite macroeconomic uncertainties, is a positive sign. The company expects at least $682 million in revenue, implying a 17% year-over-year growth, assuming stable market conditions. Adjusted EBITDA is projected to be around $259 million. TTD's key ad tech competitors on the S&P 500 list include Amazon (AMZN) and Alphabet (GOOGL), each with distinct strengths and market positions.

From a valuation standpoint, TTD trades at a forward price-to-sales ratio of 12.57X, higher than the industry average of 5.44X. The Zacks Consensus Estimate for TTD's earnings has remained unchanged over the past 60 days. TTD currently carries a Zacks Rank #3 (Hold).

References:
[1] https://finance.yahoo.com/quote/TTD/
[2] https://www.theglobeandmail.com/investing/markets/stocks/GOOGL/pressreleases/33440509/the-trade-desk-stock-climbs-higher-on-sp-500-debut-as-ansys-drops-out/
[3] https://finance.yahoo.com/news/p-500-stocks-list-additions-093000116.html
[4] https://www.fool.com/investing/2025/07/17/the-trade-desk-stock-soars-inclusion-sp-500-next/