Trade Desk Stock Jumps After S&P 500 Addition

Trade Desk has a market value of more than $40 billion. (Dreamstime)

Trade Desk will be added to the S&P 500 index prior to the opening of trading on Friday.

It will replace Ansys, which is being purchased by S&P 500 constituent Synopsys on Thursday, according to S&P Dow Jones Indices.

Shares of Trade Desk, which provides a platform for advertising buyers, were sharply higher in premarket trading Tuesday, up 15% to $86.79, after being little changed in regular trading Monday. The news was released after 5 p.m. Eastern time.

Trade Desk has a market value of more than $40 billion.

“We view the inclusion as additional confirmation of TTD’s very impressive fundamentals and as additional confirmation of the centrality as the Internet Sector, as TTD now becomes the 13th ‘Net company added to the index,” writes Evercore ISI analyst Mark Mahaney.

Shares of companies added to the S&P 500 often rally ahead of their additions as investors anticipate buying by index funds.

Write to Andrew Bary at andrew.bary@barrons.com