The Trade Desk Stock Price (TTD) Rallying As S&P 500 Inclusion Confirmed

The Trade Desk's stock (NASDAQ: TTD) is on the move pre-market, trading up 15% on news that the company is slated to join the S&P 500 index, effective prior to the opening of trading on Friday, July 18.

This landmark event, triggered by Synopsys’ (SNPS) acquisition of Ansys (ANSS), which The Trade Desk will replace, marks a significant milestone for the company. This inclusion is not merely a symbolic victory; it unlocks a new level of visibility and potential investment from index funds, supporting the stock.

The move comes on the heels of increasingly bullish sentiment from analysts, most notably from Citi's Ygal Arounian, who recently raised the firm's price target on TTD to $90 from $82, maintaining a “Buy” rating.

Arounian's optimism stems from positive feedback gathered at the Cannes Lions International Festival of Creativity and a comprehensive media buyer survey, both indicating strong support for The Trade Desk's leadership and its flagship Kokai platform.

While acknowledging the rising prominence of Amazon's DSP (AMZN) in the advertising ecosystem, the survey highlighted The Trade Desk as the clear market share leader and best-performing DSP across critical performance metrics.

This endorsement from industry professionals underscores the value proposition that TTD offers to advertisers seeking data-driven and efficient campaign management.

Citi has also initiated a “90-day positive catalyst watch” on The Trade Desk, anticipating a strong Q2 earnings report, contributing towards TTD adding 7.37% over the past month.

The upcoming Q2 earnings report is a pivotal event for The Trade Desk. The company's last reported earnings were slightly below consensus estimates, and a strong performance this quarter is crucial to maintaining confidence. Despite what has been an impressive run in recent years, the stock has stalled early in 2025, with a YTD decline of 35.93% leading into today coming largely off the back of a disappointing February report.

Despite these challenges, The Trade Desk's inclusion in the S&P 500 marks a potential turning point for the company, and set's the stage well for earnings season.