• by Boredlisted

Shares of digital advertising giant The Trade Desk soared by nearly 14% in after-hours trading on Monday, following news of its imminent inclusion in the prestigious S&P 500 Index. The announcement, made by S&P Global, marks a significant milestone for the company, which is set to replace software maker Ansys in the widely followed benchmark.

Synopsys Acquisition of Ansys Triggers Index Change

The move comes as Ansys prepares to exit the S&P 500, following its impending $35 billion acquisition by Synopsys, which was initially announced last year. Synopsys recently confirmed that the deal has received all necessary regulatory approvals and is expected to close around Thursday, prompting Ansys’ departure from the index effective Friday.

Impact of S&P 500 Inclusion

Trade Desk's inclusion in the S&P 500 is a notable achievement, reflecting its substantial growth and influence within the digital advertising industry. Companies often see their stock prices spike upon joining prominent indices, as institutional investors and fund managers must purchase shares to adjust their portfolios accordingly.

With a current market valuation of approximately $37 billion, Trade Desk comfortably sits mid-range among S&P 500 companies by market cap. Despite its strong performance over recent years—posting impressive stock gains of 63% in 2024 and 61% in 2023—Trade Desk experienced a downturn in 2025, with its stock down approximately 36% year-to-date. The inclusion in the S&P 500 could provide a timely boost to investor confidence and market visibility, potentially stabilizing the stock’s performance moving forward.

Growth Trajectory and Market Position

Founded in 2009 by Jeff Green, who currently serves as CEO, and David Pickles, Trade Desk quickly established itself as a significant player in the highly competitive digital advertising ecosystem. The company went public on Nasdaq in 2016 and has since expanded globally, with over 3,522 employees as of December 31.

Headquartered in Ventura, California, Trade Desk continues to leverage its advanced technology and platform to compete directly with industry heavyweights such as Amazon and Google. Its robust, data-driven platform helps advertisers effectively navigate the complex digital landscape, placing targeted advertisements across various online platforms.

Index Rebalancing and Market Implications

The change involving Trade Desk follows a similar recent index update when monitoring software company Datadog replaced Juniper Networks in the S&P 500 as part of the index’s routine quarterly rebalancing. Typically, index adjustments are scheduled events occurring quarterly. However, special cases such as acquisitions often necessitate off-schedule replacements, as seen with the Ansys acquisition by Synopsys.

Strategic Outlook

This strategic development represents a pivotal moment for Trade Desk. It likely attracts increased attention from institutional investors and enhances the company’s credibility within the broader financial market. The heightened visibility and demand resulting from inclusion in the S&P 500 may enhance the company's ability to attract further investment and expand its innovative offerings.

With the digital advertising market projected to continue its robust growth trajectory, Trade Desk’s addition to the S&P 500 positions the company favorably to capitalize on emerging opportunities and solidify its competitive standing among industry leaders.