Datadog jumps on inclusion in S&P 500 Index

Datadog, a monitoring software provider, jumped about 10% on Thursday morning on news it will soon be added to the S&P 500 Index.

Datadog will replace Juniper Networks in the index, which anchors millions of investors’ portfolios. Juniper was recently acquired by Hewlett Packard Enterprise, leaving an opening. Being added to the benchmark index usually causes a rally in shares as fund managers rebalance their portfolios to add the stock. Datadog will join the index on July 9.

Other names including Robinhood Markets and AppLovin are widely viewed as contenders to potentially join the index. “DDOG was selected over these names as the company’s platform continues to gain momentum within the observability space especially with AI front and center,” analysts at Wedbush Securities wrote in a Thursday note.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company.)