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NEW YORK - Datadog, Inc. (NASDAQ:DDOG), a cloud application monitoring and security platform provider, has been added to the S&P 500 Index effective Wednesday, the company announced in a press release.
The S&P 500 is widely considered the primary benchmark for large-cap U.S. equities, tracking the performance of 500 leading American companies.
"Joining the S&P 500 Index is a significant milestone for Datadog," said Olivier Pomel, co-founder and CEO of Datadog, in the statement.
The company reported $2.8 billion in revenue for the trailing twelve months ending March 31, 2025, representing a 26% year-over-year growth, while maintaining impressive gross profit margins of 80.15%. Datadog serves approximately 30,500 customers worldwide as of March 31, 2025, with a strong financial health score of "GOOD" according to InvestingPro’s comprehensive analysis framework.
At its annual DASH conference in June, the company introduced over 400 products, capabilities and features, including offerings in LLM Observability, agentic AI, security, log management and an Internal Developer Portal.
Datadog’s platform integrates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, and cloud security into a unified system for observability and security across technology stacks.
The company’s inclusion in the S&P 500 comes amid ongoing expansion of its product portfolio across various domains including artificial intelligence, observability, security, and log management.
In other recent news, Datadog is set to join the S&P 500 index, replacing Juniper Networks following its acquisition by Hewlett Packard Enterprise. This inclusion, effective on July 9, 2025, is expected to attract significant interest from large-cap and generalist investors, as noted by TD Cowen, which reiterated its Buy rating and set a $150 price target for the company. Wedbush also responded to the announcement by raising its price target for Datadog to $170, maintaining an Outperform rating, and highlighting the company’s momentum in the observability space. Stifel increased its price target to $135 from $120, maintaining a Hold rating, based on survey data indicating stabilizing customer optimization trends. The survey revealed that over 50% of Datadog’s customers expect to return to growth after optimization efforts, with fiscal year 2025 growth expectations remaining flat at approximately 11%. Security adoption within Datadog’s suite is gaining traction, and improvements in product offerings are leading to some competitive displacements. The company’s addition to the S&P 500 is seen as a milestone in its growth journey since its public listing in 2019. Analysts suggest that a more significant acceleration in growth and operating margins might occur by the first half of 2026.
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