Datadog (DDOG) shares surged more than 11% in morning trading on Thursday following S&P Global's announcement that the software company will soon be added to the S&P 500 Index ($SPX). The move is set to take effect before the market opens on July 9, with Datadog replacing Juniper Networks, which exits the index following its acquisition by Hewlett Packard Enterprise (HPE).
This development marks a significant milestone for Datadog. The company’s inclusion in the S&P 500 signals that it has reached a certain level of size and stability. For many institutional investors and index-tracking funds, it also means it’s time to buy. These funds are required to adjust their portfolios to reflect the benchmark, often resulting in a short-term spike in share price, as we’re currently seeing with Datadog.
