Datadog is now in the S&P 500. These big stocks still aren’t.
How do you get into the S&P 500 anyway? A weighty market value helps, but it’s not the only factor that matters.
Cloud-monitoring software provider Datadog surged 15% on Thursday, following the news that it will be added to the S&P 500 Index on July 9, replacing Juniper Networks.
Datadog’s addition marks another win for the tech sector, which has steadily expanded its footprint in America’s flagship index, with companies like DoorDash, Workday, Palantir, Dell, and Super Micro Computer added in recent reshuffles.
Let me in!
With trillions of dollars invested in ETFs that track the index, getting your company into the S&P 500 is a big deal.
So, how do you join the club?
One common misconception is that it’s simply the 500 largest stocks — but the criteria that Standard and Poor’s evaluates are a little more complex. To qualify, companies must meet eligibility factors including a market cap of at least $22.7 billion, a minimum of 12 months trading on a US exchange, and specific structural, profitability, and liquidity requirements. DDOG checks all the boxes, now with a $53.6 billion market cap (after yesterday’s rise). But what are the biggest names that so far haven’t been called up?
Topping the list is AppLovin, the ad tech company that became one of Wall Street’s darlings last year, followed by bitcoin-hoarding machine MicroStrategy.
A little further down the list is Robinhood, AI play CoreWeave, Snowflake, and Roblox.
Despite trailing the broader tech sector this year, Wall Street remains bullish on Datadog’s long-term growth, particularly in the AI space. In June, Bank of America analysts named it their top software pick for the second half of 2025, citing its ability to sustain over 20% revenue growth in the years ahead.
(Disclosure: Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company. I own Robinhood stock as part of my compensation.)
