Jul. 3 at 3:40 PM
$HOOD $SPX $HPE $DDOG DDOG Soars on S&P 500 Inclusion — While HOOD Waits
DDOG jumped +15.13% after being selected to join the SPX, replacing Juniper Networks, recently acquired by HPE (+0.78%). Despite speculation, HOOD (-4.65%) was passed over once again.
Datadog, which makes monitoring software for developers and IT teams, posted
$2.7B in revenue last year (+26% YoY) and had a market cap near $ 47B — rising to over $ 52B after the announcement.
Analysts, including TD Cowen’s Andrew Sherman, say S&P 500 inclusion often boosts visibility and buying from large-cap funds. Datadog fits the profile: high growth, high margins, and GAAP profitability.
APP (+1.28%) was another contender, but recent short-seller criticism may have worked against it, despite its $ 115B market cap and massive stock rally.