MW Robinhood misses out on the S&P 500 yet again, with Trade Desk to soon join the index

By Emily Bary

Trade Desk's stock is soaring, with the ad-tech company set to replace Ansys in the benchmark index later this week

Robinhood Markets Inc.'s quest for a spot in the S&P 500 drags on further, with Trade Desk Inc. instead getting the next opening.

S&P Dow Jones Indices, which runs the benchmark index, announced Monday afternoon that advertising-technology company Trade Desk (TTD) will replace Ansys Inc. $(ANSS)$ before Friday's open. Synopsys Inc. (SNPS) is in the process of acquiring Ansys, with that deal expected to close on Thursday.

This is the second merger-fueled S&P 500 SPX change announced this month. Datadog Inc. (DDOG) replaced Juniper Networks on July 9, after the latter's acquisition by Hewlett Packard Enterprise Co. (HPE). Though Datadog and Juniper were both information-technology companies, Trade Desk's arrival will slightly shift the sector balance. It's classified as a communications-services company, while Ansys is designated as IT.

Trade Desk's stock was up 14% in Monday's extended session. Robinhood's stock (HOOD) was off 1%, with some investors perhaps previously hopeful that it would have gotten Ansys's spot in the S&P 500, just as they had been with the Juniper slot and the typical June quarterly rebalance. The index committee decided against making any additions or deletions at the expected time in June.

See more: Datadog's stock soars on S&P 500 nod - as the wait continues for Robinhood

To be eligible for the S&P 500, there are thresholds for market capitalization, rules around profitability and more, but beyond that the index committee can use discretion when choosing new members. Some investors speculate about which companies might get added, since there are perceived benefits to being in the index. Not only is an S&P 500 slot a mark of legitimacy, but it also means that funds tracking the index have to give the stock greater consideration.

Robinhood has been a buzzy potential addition given its market value and hot stock performance lately. With an $88 billion market capitalization, it's more than double the size of Trade Desk ($37 billion) and one of the largest eligible companies not yet in the index. Meanwhile, Robinhood shares are up 168% so far this year, whereas Trade Desk shares are down 36% over the same span.

Trade Desk's stock came under particular pressure in February, with earnings that Jefferies analyst James Heaney deemed "a major disappointment." At the time, the company noted execution issues, but there have also been concerns on Wall Street about competition. The stock's 33% decline on Feb. 13 was its worst one-day percentage drop on record.

But in upgrading TTD's stock in late June with shares near $68, Evercore ISI analyst Mark Mahaney cited "an attractive opportunity to get involved again in what has proved over time to be one of the highest quality and most consistent performers across the internet landscape." Shares had climbed to about $75 as of Monday's close but remained below Evercore's $90 price target.

See also: MicroStrategy's stock surges as bitcoin purchases resume, lifting holdings to above 600,000

-Emily Bary

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July 14, 2025 18:27 ET (22:27 GMT)

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