Trade Desk stock jumped 15.4% in premarket trading on Tuesday following S&P Dow Jones Indices’ announcement that the company will join the S&P 500 index effective July 18, 2025. The digital advertising platform will replace Ansys, which is being acquired by Synopsys.

The inclusion in the prestigious index typically drives significant buying pressure as index funds tracking the S&P 500 must purchase shares of newly added companies. The Trade Desk, which operates in the Communication Services sector, will be added prior to the opening of trading on Friday, July 18.

Meanwhile, AppLovin shares fell 1.7% and Robinhood dropped 0.7% on the news. Both companies had been considered potential candidates for S&P 500 inclusion, with investors and analysts closely watching for possible index additions.

S&P Dow Jones Indices stated that ANSYS will be removed from the index as its acquisition by Synopsys is expected to be completed on July 17. The Trade Desk’s addition comes amid growing importance of digital advertising technology companies in the broader market landscape.

Index inclusion typically provides companies with greater visibility and liquidity, while potentially lowering their cost of capital. For The Trade Desk, joining the S&P 500 represents a significant milestone in the company’s growth trajectory.