The Trade Desk became part of the S&P 500 index on July 18, resulting in a 6% stock price surge. This addition reflects the company's strong profitability and liquidity over the past year, boosting demand from passive investors due to the 'index effect.' The Trade Desk was chosen over other popular companies like Robinhood and AppLovin, replacing Ansys. However, the stock's high valuation, with a P/E ratio of 97, raises questions about its investment attractiveness despite potential growth in a rapidly expanding market influenced by artificial intelligence.
The Trade Desk's valuation makes it an expensive stock to buy right now as its P/E ratio stands at 97, nearly triple the Nasdaq-100's average.
Despite being selected over notable companies like Robinhood and AppLovin, The Trade Desk has witnessed a substantial increase in stock value after its S&P 500 inclusion.
Collection
[
|
...
]