Trade Desk Is Joining the S&P 500. Should You Buy TTD Stock Here?
Trade Desk (TTD) shares are up nearly 8% today following news the advertising technology company will replace software maker Ansys (ANSS) in the S&P 500 Index ($SPX) on July 18.
Investors are cheering the news primarily because index inclusion often proves a material tailwind that unlocks significant further upside in a stock.
Despite today’s surge, Trade Desk stock is down some 35% versus its year-to-date high set in January.
Why Does the S&P 500 Inclusion Matter for Trade Desk Stock?
TTD shares are ripping higher this morning and could extend gains further in the coming sessions since S&P 500 inclusion essentially means funds that track the benchmark index are now required to own them.
This will create meaningful demand for Trade Desk stock – potentially pushing its price up further in the weeks ahead.
Simply put, index inclusion often results in a notable increase in institutional demand for a stock. Plus, it lowers the overall cost of capital and boosts confidence in the company’s long-term growth and stability.
BMO Sees Significant Further Upside in TTD Shares to $115
Trade Desk shares are now trading nearly 91% above their year-to-date low in early April. Still, BMO analysts believe the ad-tech firm could climb further in the second half of 2025.
In its research note on Tuesday, the investment firm dubbed digital advertising a massive $1 trillion opportunity.
BMO recommends owning TTD stock at current levels also because the company based out of Ventura, California boasts strong liquidity, with more cash on its balance sheet currently than debt.
The firm’s analysts are super bullish on Trade Desk’s new artificial intelligence platform (Kokai) as well, which they believe could push its stock price up to $115 over the next 12 months.
BMO’s price objective indicates potential for another 35% upside in TTD shares.
What’s the Consensus Rating on Trade Desk?
Other Wall Street firms are not nearly as bullish on Trade Desk stock as BMO, but the consensus rating on it, nonetheless, sits at “Moderate Buy” at the time of writing.
On average, analysts sees upside in TTD shares to roughly $90, suggesting they could climb nearly 10% further from their current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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