This Friday, July 18, marks a pivotal moment for Trade Desk (TTD) as it officially joins the S&P 500 Index ($SPX), stepping in for software maker Ansys (ANSS). This change isn’t just symbolic — inclusion in the S&P often triggers heightened demand from index funds and institutional players.

In fact, investors are already feeling the buzz since the announcement, with TTD stock taking big leaps in reaction to the news. These gains could extend further in the coming sessions.

This milestone highlights growing confidence in TTD stock’s digital advertising platform and could usher in improved visibility. So, whether you’re actively trading or holding for the long term, positioning yourself ahead of Friday’s open could be a savvy move.

About Trade Desk Stock

Trade Desk is a prominent player in the digital advertising landscape that has steadily built a reputation as a leading independent demand-side platform (DSP). Its cloud-based platform enables advertisers and media buyers to plan, execute, and measure data-informed campaigns across digital channels. Its market capitalization currently stands at $39.5 billion, firmly establishing the company as a leading large-cap tech contender.

Trade Desk, however, has experienced a rocky ride so far this year. TTD stock has slumped 31% on a year-to-date (YTD) basis, driven by a mix of post-pandemic normalization and concerns over slowing growth. 

However, the stock has seen renewed investor interest following the announcement that it will be added to the S&P 500. TTD stock saw a 6.6% intraday leap on July 15, raising speculation around a potential shift in its YTD trajectory.

In terms of valuation, Trade Desk is priced at 79 times forward earnings and 15 times forward sales, trading at a premium compared to its industry peers but below its historical averages.

Trade Desk’s Stellar Q1 Earnings Results

Trade Desk released first-quarter 2025 earnings on May 8, reporting a strong quarter that surpassed expectations. Revenue reached $616 million, reflecting a robust 25% year-over-year (YOY) increase, comfortably ahead of analyst estimates. Non-GAAP EPS came in at $0.33, marking 27% annual growth and beating the consensus estimate. For the period, the company achieved adjusted EBITDA of $208 million, a 28% YOY increase and translating to a margin of 34%, up from 33%. Finally, retention remained strong at over 95%. 

On the innovation front, adoption of Unified ID 2.0 expanded significantly, with major publishers like Perion, Toyo Keizai, and Piemme integrating the privacy-first identity solution, enhancing advertiser trust and data accuracy. Trade Desk's flagship OpenPath initiative also gained traction. Additionally, the company closed its acquisition of Sincera, a data analytics firm, enhancing its ability to offer impression-level transparency and deeper advertiser insights. 

Management’s forward-looking guidance echoed confidence in continued growth. For Q2 2025, the firm forecasts at least $682 million in revenue as well as adjusted EBITDA of approximately $259 million. 

Analysts monitoring the company also remain optimistic. They predict EPS to climb to $0.95 for fiscal 2025, up 22% YOY, before surging another 37% annually to $1.30 in fiscal 2026.

What Do Analysts Expect for Trade Desk Stock?

BMO Capital recently reaffirmed its “Outperform” rating on TTD stock, maintaining a $115 price target. The firm argues that concerns around Amazon’s (AMZN) DSP stealing market share are “overblown,” reasoning that the expanding digital‑ad landscape can support more than one winner. 

Meanwhile, CFRA raised its TTD price target to $110, up from $82, while maintaining a “Buy” rating. CFRA believes the recently announced S&P 500 admission could reignite positive sentiment and attract institutional flows as portfolio shifts occur. 

However, last month, Wells Fargo downgraded shares from “Overweight” to “Equal Weight” and reduced its price target from $74 to $68, citing rising competitive pressure. Still, the firm maintained a cautiously optimistic long-term view.

TTD stock has a consensus “Moderate Buy” rating overall. Out of 36 analysts covering the stock, 23 recommend a “Strong Buy,” three give a “Moderate Buy" rating, and 10 analysts stay cautious with a “Hold” rating.

The average analyst price target for TTD is $89.30, indicating potential upside of 10%. Meanwhile, the Street-high target of $145 suggests that shares could rally as much as 79%.