Datadog (NasdaqGS:DDOG) Joins S&P 500 Equal Weighted Index

Datadog (NasdaqGS:DDOG) recently experienced a significant milestone by being added to the S&P 500 Equal Weighted Index. This development aligns with an impressive 57% increase in the company's share price over the last quarter, potentially underscored by a series of inclusions into various S&P indexes on July 3, 2025. The broader market trends showed modest gains in the tech sector, including companies like Nvidia achieving record market caps, which may have provided a conducive backdrop. The company's quarterly earnings report on May 6, reflecting increased sales alongside new financial guidance, collectively support the upward momentum observed in Datadog's stock performance.

Datadog has 1 possible red flag we think you should know about.

The latest GPUs need a type of rare earth metal called Terbium and there are only 24 companies in the world exploring or producing it. Find the list for free.

The addition of Datadog to the S&P 500 Equal Weighted Index marks a significant development for its long-term trajectory. This inclusion could enhance investor interest and potentially elevate the stock's liquidity and visibility. Over a five-year horizon, Datadog's total return, accounting for both share price appreciation and dividends, was 64.94%. This performance illustrates a strong growth trajectory and reflects the company's ability to expand its market presence despite competitive challenges.

In the shorter term, Datadog's 57% share price surge over the past quarter underscores the market's positive reception to recent earnings and strategic index inclusions. However, while the share price currently trades at US$132.33, the consensus analyst price target of US$139.28 suggests limited upside. This indicates that the stock might be approaching a point where it aligns with market valuations. Analysts' revenue and earnings projections for Datadog assume sustained growth, driven in part by increased customer adoption and robust product expansion. As the company integrates AI capabilities, such developments could further drive revenue and earnings growth.

Explore historical data to track Datadog's performance over time in our past results report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com