The Trade Desk Set to Join S&P 500 Today

A new company is set to join the benchmark S&P 500 Index.

Digital advertising company The Trade Desk (TTD) is joining the benchmark index today, S&P Dow Jones Indices has said. It replaces Ansys, which on Thursday was formally acquired by chip design software provider Synopsys (SNPS).

News that The Trade Desk would join the index has helped lift its shares since the change was announced late Monday. The stock, which is down roughly 30% this year, has risen about 8% between Monday’s close and yesterday’s.

Inclusion in the S&P 500 is broadly seen as bullish for companies, in part because it means other instruments that track the index will buy shares of companies that are added to it.

The Trade Desk’s market capitalization is near $40 billion, according to Visible Alpha data.

“Our inclusion in the S&P 500 is testament to the value and innovation we have delivered to the digital advertising industry since our founding, 16 years ago,” said CEO Jeff Green on Thursday.

Datadog (DDOG) joined earlier this month, replacing Juniper Networks after it was acquired by Hewlett Packard Enterprise (HPE).