Datadog to Replace Juniper in S&P 500

Datadog will join the S&P 500 index on July 9, replacing Juniper Networks, which was acquired by Hewlett Packard Enterprise for $13.4 billion. The announcement caused Datadog's stock to rise between 9% and 11% in after-hours and premarket trading, reaching five-month highs. This inclusion is expected to increase Datadog’s visibility among investors and index funds, potentially driving further gains as portfolios are rebalanced. Datadog reported a 25% year-over-year revenue increase in the first quarter and is viewed favorably by analysts for its AI and observability software prospects. Other companies such as Robinhood were speculated as potential additions but were not selected. The S&P 500 continues to expand its tech sector representation, recently adding DoorDash, Workday, and Palantir.