Once a high-flying $141 stock, The Trade Desk (TTD) became one of the most hated stocks on the S&P 500 ($SPX). Now trading at around $14, with a market cap of just $6.78 billion (a fraction of the $69 billion market cap peak in 2024), it’s getting booted from the index on Monday, Sept. 21.
The Trade Desk is set to leave the S&P 500 as part of the latest quarterly index reshuffling by S&P Dow Jones Indices. However, the consolation prize is that it will be added to the S&P SmallCap 600. Unsurprisingly, none of this news is helping the stock, as sentiment toward TTD is as negative as it’s ever been. In this situation, TTD stock could see less visibility from major analysts once it leaves the S&P 500. However, because it will remain in the S&P family, it could see less extreme price volatility than if it were to drop out of the S&P family entirely.
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Still, The Trade Desk Has Had a Brutal Run
Following the company’s disappointing second-quarter 2026 results, investors have grown tired of the stock. Second-quarter revenue increased just 3% year-over-year (YoY) to $715 million, which was well below the $751.4 million analysts had expected. Adjusted earnings per share came in at $0.34, missing expectations of $0.40. Net income dropped to $64 million from $90 million a year earlier, while adjusted EBITDA declined to $241 million from $271 million.
“This quarter did not meet the standard we set for ourselves, but it has reinforced our belief that we are focused on the right opportunities for the future,” said Jeff Green, Co-Founder and CEO of The Trade Desk, as quoted in the company’s earnings release. “Marketers are navigating a complex environment, but complexity increases the value of decisioning, measurement and AI. We have a clear understanding of the factors that impacted our performance, and we are taking decisive action to strengthen our execution, upgrade our platform, and sharpen our focus on the areas where we can create the greatest value.”
And Then Came the Guidance
Unfortunately, the third-quarter outlook made the situation look even worse. The Trade Desk guided for third-quarter revenue of at least $650 million, which would be a 12% decline YoY. That means the company went from delivering 18% revenue growth in the third quarter of 2025 to a potential 12% YoY decline. Adding more near-term pressure is Sept. 21. The S&P 500 removal won’t change The Trade Desk’s underlying business. But its removal could easily create another round of selling pressure as funds rebalance their portfolios. In addition, investors may also try to get ahead of those trades, which means some of the pressure could show up before Sept. 21.
