Datadog Soars into the S&P 500 with a 10% Tech Stock Surge
Datadog shares leaped over 10% in after-hours trading on Wednesday. This surge followed the announcement that the cloud monitoring company will join the S&P 500 index, effective from July 9, 2025. The software firm is set to replace Juniper Networks, which was recently acquired by Hewlett Packard Enterprise in a deal finalized on July 2.
The inclusion of Datadog into this prestigious index is anticipated to trigger substantial buying from passive index funds and ETFs that track the S&P 500. These funds and ETFs collectively hold approximately $4.5 trillion in assets following the benchmark. The New York-based company, established in 2010 and public since 2019, offers monitoring and security software for enterprise technology infrastructure. This includes servers, applications, and databases.
Datadog showcased strong first-quarter results, with a revenue of $761.6 million. This represents a 25% year-over-year growth, surpassing analyst expectations of $741.5 million. The company generated a net income of $24.6 million, demonstrating profitability that contributed to its qualification for S&P 500 inclusion. Despite the stock being down about 6% year-to-date before the announcement, the index addition is expected to provide both short-term momentum and long-term institutional support.
Source: CNBC