On Wednesday, after the close of trading, the S&P Dow Jones Indices, a leading index provider in the market, announced that the S&P 500 index added Datadog to the index by replacing Juniper Networks Inc.
According to a press release from S&P Dow Jones Indices, before the open on July 9, Datadog Inc., an American technology company, provides an analytics platform for infrastructure and cloud-scale applications, will join the S&P 500.
Datadog has introduced itself as a leader in the observability space, offering solutions that assist entities in monitoring their infrastructure performance.
S&P 500 replaced Juniper Networks with Datadog, following its recent acquisition by Hewlett-Packard Enterprise (HPE) Co., an American multinational information technology organization, the press release from S&P Dow Jones Indices added.
After the S&P 500 Inclusion Announcement, Datadog Stock Went Up 9.4%
On Wednesday, after S&P Global announced that the software provider would replace Juniper Networks in the S&P 500, the shares of Datadog increased 10% in the extended trading.
On Wednesday, Datadog(NASDAQ: DDOG) shares were up 9.40% in extended trading, and at the publication time, DDOG is trading at 4147.70, according to Benzinga Pro.
In after-hours trading, the stock of Datadog increased from 10.9% to 149.70%, reflecting a five-month high. Similarly, in Wednesday’s trading, its shares extended 2% to 135.01, and on April 7, the stock of DDOG hit a fifty-two-week low of 81.63.
Since going public in 2019, the firm’s addition to the S&P 500 has been a landmark in its development trajectory, highlighting its enhanced liquidity and capitalization of the market. When compared to other median organizations on the Nasdaq Composite index, the Datadog firm is profitable, with a higher valuation.
According to the latest reports, before the opening of trading on July 9, S&P Global is making the change more effective.
The Table below describes the change that will occur before the beginning of trading on the effective date.
| Date | Name of the Index | Action | Name of the organization | Ticker | GICS (Global Industry Classification Standard) sector |
|---|---|---|---|---|---|
| 2025 (July 9) | S&P 500 | Deletion | Juniper Networks | JNPR | Information technology |
| 2025 (July 9) | S&P 500 | Addition | Datadog | DDOG | Information technology |
Hewlett-Packard Enterprise (HPE) Co., a relevant constituent of the S&P 500 U.S stock index, disclosed in a filing that the company paid $13.4 billion to the shareholders of Juniper Networks. The 2 organizations reached a deal with the Justice Department of the U.S over the weekend.
According to the deal, Hewlett-Packard Enterprise agreed to evict its global instant-on branch business and Campus.
The majority of the S&P 500 stock index includes tech firms, and the index has been regularly highlighting its susceptibility as the industry expands into more portions of society. The latest tech firm added to the S&P 500 at the final rebalancing in March is DoorDash. In December, Workday, an on-demand cloud-based software vendor, joined the stock, and it was preceded earlier in 2024 with the joining of Super Micro Computer, Palantir, GoDaddy, and Dell.
So far this year, Datadog has performed less well in the broader tech sector, and as of Wednesday’s close, the stock was about 5.5% and the Nasdaq was up 5.6%. But still, due to the market cap of $46.6 billion, the valuation of the company is remarkably greater than the median for the Nasdaq Composite index.
