Datadog stock surges 15% after inclusion in S&P 500 Index on July 9

Datadog (DDOG) stock surged over 15% after news of its upcoming inclusion in the S&P 500 Index on July 9, replacing Juniper Networks post-acquisition by Hewlett Packard Enterprise. The index inclusion is expected to boost demand for DDOG shares from passive funds and ETFs, increasing institutional interest and analyst coverage.

While the initial price jump may be short-lived, Datadog’s index inclusion signals its financial health and market leadership, attracting more investors and enhancing long-term stability. Analysts maintain a “Buy” rating on DDOG stock, but caution that its high forward P/E ratio of nearly 600x makes it overvalued at current levels, with a consensus price target indicating potential downside.

Read more at Yahoo Finance: Dear Datadog Stock Fans, Mark Your Calendars for July 9