The Datadog stand is being displayed on day one of many AWS Summit Seoul 2024 on the COEX Conference and Exhibition Middle in Seoul, South Korea, on Might 16, 2024.
Chris Jung | Nurphoto | Getty Photos
Datadog shares have been up 10% in prolonged buying and selling on Wednesday after S&P International stated the monitoring software program supplier will substitute Juniper Networks within the S&P 500 U.S. inventory index.
S&P International is making the change efficient earlier than the start of buying and selling on July 9, in keeping with a statement.
Laptop server maker Hewlett Packard Enterprise, additionally a constituent of the index, stated earlier on Wednesday that it had accomplished its acquisition of Juniper, which makes information heart networking {hardware}. HPE disclosed in a filing that it paid $13.4 billion to Juniper shareholders.
Over the weekend, the 2 corporations reached a settlement with the U.S. Justice Division, which had sued in opposition to the deal. As a part of the settlement, HPE agreed to divest its world On the spot On campus and department enterprise.
Whereas tech already makes up an outsized portion of the S&P 500, the index has has been constantly lifting its publicity because the trade expands into extra areas of society.
DoorDash was the social media tech firm to hitch over the past rebalancing in March. Cloud software program vendor Workday was added in December, and that was preceded earlier in 2024 with the additions of Palantir, Dell, CrowdStrike, GoDaddy and Super Micro Computer.
Shares typically rally after they’re added to a significant index, as fund managers must rebalance their portfolios to replicate the adjustments.
New York-based Datadog went public in 2019. The corporate generated $24.6 million in internet earnings on $761.6 million in income within the first quarter of 2025, in keeping with a press release. Rivals embody Cisco, which purchased Splunk final 12 months, in addition to Elastic and cloud infrastructure suppliers reminiscent of Amazon and Microsoft.
Datadog has underperformed the broader tech sector up to now this 12 months. The inventory was down 5.5% as of Wednesday’s shut, whereas the Nasdaq was up 5.6%. Nonetheless, with a market cap of $46.6 billion, Datadog’s valuation is considerably larger than the median for that index.
— CNBC’s Ari Levy contributed to this report.
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