Robinhood Markets Inc. is not the new member of the S&P 500.
Prior to the anticipated quarterly index rebalancing, Robinhood (HOOD) was a well-liked pick for S&P 500 SPX inclusion in early June. However, the index committee decided not to make any modifications at the scheduled time.
In order to guarantee that there are 500 businesses in the index once more, the committee has now made an unforeseen but essential move. S&P Dow Jones Global Indices has announced that Datadog Inc. (DDOG) would be added to the index prior to the opening bell on Wednesday, July 9.
The decision to choose Datadog makes some sense. The business is taking the place of Juniper Networks, which Hewlett Packard Enterprise Co. (HPE) concluded its acquisition of on Wednesday. Juniper and Datadog are both categorized as information technology providers.
Datadog provides analytics and monitoring solutions for developers and other users. With tools for things like network and database monitoring, the company’s software assists clients in understanding how their technology is operating. As of Wednesday’s end, the company’s market value was close to $47 billion. Last year, it brought in $2.7 billion.
In Wednesday’s after-hours trade, Datadog’s stock increased by almost 11%. As of Wednesday’s end, their year-to-date loss was 5.5%.
When selecting new elements for the S&P 500, which is more than just a list of the biggest American corporations by market value, the index committee has discretion. Reaching those benchmarks does not ensure a spot in the index, even though businesses must fulfill a number of requirements related to profitability, market capitalization, and other factors in order to be considered for entry.
Additionally, Datadog was selected for the S&P 500 ahead of AppLovin Corp. (APP), which has a market valuation of $114 billion. Even though AppLovin’s stock has doubled in the last 12 months, it is still slightly down year-to-date. Earlier this year, there were scathing short-seller reports about the advertising technology company.
