Datadog, a cloud monitoring platform, has soared 315% since 2019 IPO, a buy recommendation.

Datadog, a cloud monitoring and security platform, has been added to the S&P 500 index, making it one of only five companies to achieve this milestone in 2025. Wall Street views the stock as a buy, despite its significant growth and accolades in the industry.

To qualify for the S&P 500, a company must be U.S.-based, have a market cap of at least $20.5 billion, be highly liquid, profitable based on GAAP, and profitable over the previous four quarters.

Datadog’s addition to the S&P 500 on July 9 marks a significant achievement, with the company outperforming the market since its IPO in 2019. Its revenue has increased by 694% and net income by 2,670%, driving a stock price gain of 315%.

Datadog’s monitoring and analytics platform plays a crucial role in the ongoing digital transformation, helping businesses monitor and manage their cloud-based systems to avoid critical downtime. The company’s strong financial results and expanding customer base demonstrate its growth potential and industry leadership.

Despite lowering guidance due to tariffs, Datadog remains a favorite on Wall Street, with 38 out of 46 analysts rating it a buy or strong buy. Analysts predict significant upside potential for the stock, citing its growth trajectory and increasing total addressable market as key factors.

While Datadog may not be cheap by traditional valuation metrics, its long-term growth potential, strong financial performance, and bullish outlook from analysts make it an attractive investment opportunity.

Read more at Yahoo Finance: The Newest Stock in the S&P 500 Has Soared 315% Since Its 2019 IPO, and It’s a Buy Right Now, According to Wall Street