The Trade Desk Stock Climbs Higher on S&P 500 Debut as ANSYS Drops Out

On July 18, 2025, The Trade Desk Inc. (TTD) will officially join the S&P 500, replacing ANSYS Inc. (ANSS), which is set to be acquired by fellow S&P 500 constituent Synopsys Inc. (SNPS) a day prior. Following the announcement, TTD shares gained 6.6% on July 15 and closed at $80.40, reflecting strong investor sentiment. Being part of the S&P 500 greatly enhances a firm’s exposure. As more analysts follow the company, broader investor attention grows, and daily trading volumes typically increase.TTD operates a leading demand-side platform (DSP), which helps advertisers focus on data-driven ads. It aims to achieve continued revenue growth and profitability, as well as expansion of its Connected TV (CTV) offering, wider adoption of its flagship products, including Kokai, Unified ID 2.0 and OpenPath, alongside an increased global footprint and partnerships. Investors will be monitoring closely to see how it maintains its innovation edge as it scales its operations. Per a report by Precedence Research, the global digital ad spending market is projected to reach a hefty $1,483 billion by 2034, at a CAGR of 9.47% from 2025 to 2034. With global ad spend forecasted to grow, particularly in CTV and retail media, TTD is well-positioned to convert accelerating international momentum into a balanced global revenue base. TTD’s inclusion highlights how important ad tech has become as media shifts to streaming, personal content and more focus on privacy. For the second quarter, TTD acknowledged the uncertain macro environment and its negative impact on large global brands. However, it stays upbeat, backed by strong Kokai demand and a solid international pipeline. It expects at least $682 million in revenue, implying 17% year-over-year growth, assuming stable market conditions. This outlook includes the prior year's political ad spend boost of about 1%. Adjusted EBITDA is projected to be around $259 million.TTD’s Key Ad Tech Competitors on the S&P 500 ListAmazon (AMZN) is one of the largest e-commerce companies in the world. TTD focuses on independent, cross-channel programmatic buying, while Amazon relies on its rich first-party data and owned platforms for targeted ads. Both are competing to capture a larger slice of the fast-growing CTV ad market.AMZN is growing rapidly by creating video content for Prime users and by leading in e-commerce. Its huge product range, easy shopping, big deals and strong reviews keep it ahead. More people are shopping online, helping Amazon grow. Big brands might build their sites, but Amazon helps them reach new buyers. Small sellers rely on Amazon’s tech and delivery network. With global growth, Amazon’s strong pace is likely to continue.Alphabet (GOOGL) has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. TTD competes with Google by offering a neutral ad platform, unlike Google’s walled garden approach to advertising. While Google leads with its all-in-one ad setup, The Trade Desk targets the “open internet”, giving advertisers broader reach. This rivalry is particularly strong in ad-supported streaming, where The Trade Desk is experiencing growth.In the online search arena, Google has a monopoly with more than 94% of the online search volume and market. The Google Services include products and services such as ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search and YouTube. The segment generates revenues primarily from performance and brand advertising, which remains crucial for the overall business. Ad revenues accounted for 75.6% of the total revenues in 2024.TTD’s Price Performance, Valuation and EstimatesShares of TTD have gained 59.9% in the past three months compared with the Zacks Internet -Services industry and S&P 500 composites’ rise of 20.6% and 18.2% respectively.Image Source: Zacks Investment ResearchFrom a valuation standpoint, TTD trades at a forward price-to-sales of 12.57X, higher than the industry’s average of 5.44X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for TTD’s earnings has remained unchanged over the past 60 days.Image Source: Zacks Investment ResearchTTD currently carries a Zacks Rank #3 (Hold). 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(GOOGL): Free Stock Analysis Report The Trade Desk (TTD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks