Datadog’s Stock Jumps 10% On S&P 500 Inclusion

The stock of Datadog (DDOG) is up 10% on news that the cloud-based data analytics firm is being added to the benchmark S&P 500 index.

S&P Dow Jones Indices, which manages the S&P 500, announced that Datadog will replace Juniper Networks (JNPR) in the S&P 500 starting on July 9.

The change comes after Juniper Networks was successfully acquired by Hewlett Packard Enterprise (HPE) and will no longer trade as a standalone stock in the S&P 500.

Companies see their share price rise when added to a major index such as the S&P 500 as mutual funds and exchange-traded funds that track the index are required to buy the stock.

Datadog, which has a market capitalization of nearly $50 billion U.S., has long been a contender to join the S&P 500.

The Texas-based company provides customers with a single dashboard for viewing all of their cloud activity, including servers, applications, databases and security.

S&P Dow Jones Indices typically announces changes to the benchmark S&P 500 on a quarterly basis, rebalancing and adding or removing stocks as needed.

Datadog went public in 2019 and, prior to July 3, its share price had been down 6% on the year and trading at $135.01 U.S.