Datadog shares surged 10% in extended trading after S&P Global announced its addition to the S&P 500 U.S. stock index, replacing Juniper Networks. The software provider’s inclusion marks a significant milestone, with Hewlett Packard Enterprise completing its $13.4 billion acquisition of Juniper earlier in the day.
The company has consistently demonstrated profitability and boasts a higher valuation than the median Nasdaq Composite index company. S&P Global made the change effective July 9, aligning with HPE’s acquisition timeline.
This addition enhances tech exposure within the S&P 500, following recent additions like DoorDash, Workday, Palantir, Dell, CrowdStrike, and Super Micro Computer. Stocks tend to rally when companies join a major index, as fund managers rebalance their portfolios in response.
Datadog went public in 2019 with $24.6 million in net income and revenue of $761.6 million in its latest quarter. Despite underperforming the broader tech sector this year, the company’s valuation stands out at $46.6 billion, surpassing the median index value.
CNBC contributor Ari Levy contributed to this report, while Datadog CEO Olivier Pomel also shared insights on cloud computing with CNBC.
Source: https://www.cnbc.com/2025/07/02/datadog-stock-jumps-sp-500-index-inclusion.html