Shares of The Trade Desk (TTD 1.34%) have advanced more than 7% this week due to news of its inclusion in the S&P 500 (^GSPC 0.32%). The digital advertising company will be officially added to the popular index on July 18. It will replace Ansys, which was acquired by Synopsys.Importantly, The Trade Desk has been a phenomenal long-term investment. The stock is up 760% in the last seven years, and history says it could climb even higher in the near term after its addition to the S&P 500.Here's what investors ...

The Trade Desk (TTD) shares rallied 6.6% in the last trading session to close at $80.4. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.4% gain over the past four weeks.The Trade Desk is benefiting from higher adoption of Connected TV (CTV) amid the convergence of the Internet and television programming. This particular growth driver is fast becoming the focus of the company’s growth strategy.This digital-a ...

Core Insights - The Trade Desk Inc. (TTD) will join the S&P 500 on July 18, 2025, replacing ANSYS Inc. (ANSS), which is being acquired by Synopsys Inc. (SNPS) [1] - Following the announcement, TTD shares rose by 6.6% to $80.40, indicating strong investor sentiment [1] - TTD operates a leading demand-side platform (DSP) focused on data-driven advertising, aiming for revenue growth and profitability through its Connected TV (CTV) offerings and flagship products [2] Company Overview - TTD is positioned to benefit from the projected growth in the global digital ad spending market, expected to reach $1,483 billion by 2034, with a CAGR of 9.47% from 2025 to 2034 [3] - The company is focusing on expanding its global footprint and partnerships while maintaining its innovation edge [2][3] Financial Performance - For Q2, TTD anticipates revenue of at least $682 million, reflecting a 17% year-over-year growth, despite macroeconomic challenges [4][10] - Adjusted EBITDA is projected to be around $259 million [4] - TTD's shares have increased by 59.9% over the past three months, outperforming the Zacks Internet-Services industry and S&P 500 composites, which rose by 20.6% and 18.2%, respectively [11] Competitive Landscape - TTD competes with major players like Amazon (AMZN) and Alphabet (GOOGL) in the ad tech space, focusing on independent, cross-channel programmatic buying [5][7] - While Amazon leverages its first-party data for targeted ads, TTD offers a neutral ad platform targeting the open internet, which is particularly relevant in ad-supported streaming [7] Valuation Metrics - TTD currently trades at a forward price-to-sales ratio of 12.57X, significantly higher than the industry average of 5.44X [12] - The Zacks Consensus Estimate for TTD's earnings has remained stable over the past 60 days, with no revisions [13][14]

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be ...

Group 1 - The Trade Desk, Inc. (TTD) is experiencing an increase in stock price after being added to the S&P 500 Index, which is expected to attract more institutional investors [1] - The stock has encountered resistance around the price of $85.50, which corresponds to a previous gap created when the stock opened at $85.18 after closing at $122.23 [2] - A significant number of investors who purchased shares at the lower price experienced buyer's remorse, leading them to hold onto their positions and plan to sell at breakeven when the price rises [4][5] Group 2 - The resistance around the $85 price level is attributed to these investors placing sell orders as the stock price rallies back, creating a barrier to further price increases [5][6] - If the stock can break through this resistance, it may lead to a rapid price increase, potentially refilling the gap created in February [6][7] - The absence of trading activity at the lower price levels suggests that there may not be remorseful sellers, allowing buyers to push the price higher and potentially create a new uptrend [7]

The Trade Desk shares are rising Tuesday, climbing a day after S&P Dow Jones Indices said the digital advertising company will be replacing software maker Ansys in the S&P 500 Index. https://t.co/GZRE1vrCVF ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - Trade Desk Inc (NASDAQ:TTD) shares increased by 11.4% to $84.06 following the announcement that it will replace Ansys (ANSS) on the S&P 500 Index due to Synopsys (SNPS) acquiring Ansys for $35 billion [1][2] Group 1 - TTD's stock is trading at five-month highs and is on track for its best daily percentage increase since May 12, despite being down 30% year-to-date due to a significant post-earnings decline in February [2] - The 160-day moving average is currently limiting gains for TTD [2] Group 2 - Options trading activity has surged, with 53,000 calls and 19,000 puts traded, which is eight times the average daily volume, indicating strong interest in the stock [3] - The most popular options are the July 85 and 90 calls, with new positions being opened [3] - TTD has historically outperformed analysts' volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) rating of 90 out of 100 [3]

Shares of The Trade Desk (NASDAQ: TTD) jumped on the news that the company will be added to the S&P 500 index.In pre-market trading on Tuesday, the stock was up 14.05% to $86. The TTD share price closed the last trading session at $75.43, reflecting a year-to-date loss of almost 36%. TTD one-day stock price chart. Source: Google FinanceThe stock is set to start trading on the index at market opening on July 18. The American real-time programmatic marketing company is replacing Ansys following its acquisitio ...

Core Insights - The Trade Desk's stock surged 14% after being included in the S&P 500, indicating strong market recognition and potential for institutional investment [2] - The company has demonstrated impressive revenue growth, with a 25.8% average growth rate over three years, significantly outpacing the S&P 500's 5.5% [3] - Profitability metrics show The Trade Desk's operating margin at 17.6% and net margin at 16.0%, both exceeding the S&P 500 averages [4] - The balance sheet reflects strong financial health, with a debt-to-equity ratio of 0.9% and cash reserves of $1.7 billion [5] - Valuation analysis reveals The Trade Desk is trading at high premiums, with a price-to-earnings ratio of 92.3 compared to the S&P 500's 26.9 [7] - The company has shown vulnerability to market volatility, with significant stock price declines during economic downturns, yet has demonstrated strong recovery potential [8] - Competitive pressures and regulatory challenges in the programmatic advertising market could impact future growth [9][10] - The Trade Desk is positioned as an attractive investment opportunity due to its robust fundamentals and S&P 500 inclusion, but high valuation premiums necessitate careful risk assessment [11][12]