Fast-growing tech company is the newest S&P 500 stock

A rapidly growing tech stock just joined the world's most widely followed stock market index. If previous additions to the S&P 500 are any indication, this could help drive substantial gains for the company's shareholders going forward.

Many investors around the world view the S&P 500 as a bellwether of the U.S. economy, and gaining a spot among its constituents is typically seen as validation of a company's scale and stability and investors' perception of a stock as a prospective portfolio candidate.

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Datadog (DDOG) , a leading cloud-native monitoring and analytics platform, officially became the latest member of the S&P 500 Index effective July 9, 2025.

The tech company replaced previous S&P 500 stock Juniper Networks, following the completion of its acquisition by Hewlett Packard Enterprise earlier this month.

Shares of Datadog surged nearly 15% on July 3 after S&P Global announced its impending addition to the S&P 500. The news sparked a fresh wave of investor interest, given the anticipation of increased near-term demand from both retail and institutional investors, especially among passive index funds, which will be forced to rebalance to reflect Datadog's inclusion.

Datadog is now part of the S&P 500 Index, Image source: Datadog

Datadog

The changing face of the S&P 500

Previous S&P 500 additions have preceded significant gains for the companies' respective shareholders; as of this writing, Palantir stock is up 275% since joining the index last September, DoorDash is up 25% since being added in March, and Coinbase shares have climbed 47% since joining the S&P 500 in May.

Shares of Datadog are up around 9% over the past year, slightly underperforming the S&P 500's 11.5% gain over the same period.

Datadog's inclusion in the S&P 500 highlights the growing role that data monitoring, security, and artificial intelligence tools play in today's technology landscape. Tech companies comprise over a third of the S&P 500's total value.

It also helps punctuate Datadog's impressive growth story; founded in 2010 and public since 2019, Datadog now serves over 30,500 customers globally, including nearly half of the companies in the S&P 500. Datadog's revenue for the trailing 12 months ending March 31, 2025, grew 26% year over year to $2.8 billion.

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Datadog's current full-year 2025 outlook calls for revenue of between $3.2 billion and $3.235 billion, or year-over-year growth of just over 20% at the midpoint.

Datadog leans heavily on AI innovations

Datadog has shifted significant resources toward developing new AI-driven products and solutions to help sustain that growth.

Datadog has integrated with AI-native platforms, including OpenAI's ChatGPT, for example, to help organizations monitor and optimize their ChatGPT usage, performance, and costs.

In May 2025, the company also launched a new division called Datadog AI Research, designed to collaborate with its core product and engineering teams on leveraging AI to enhance cloud observability and security. The division's first two releases were Toto, the industry's first open-source foundation model focused on observability, and BOOM, the largest public benchmark of observability metrics.

At its 2025 annual DASH Conference last month, Datadog unveiled over 400 new products, capabilities, and features, including launches in large language model observability, several new AI security capabilities, and multiple agentic AI monitoring and experimentation features through Datadog AI Research.

“Joining the S&P 500 Index is a significant milestone for Datadog and is a testament to the work of our employees, collaboration with partners, and above all, our relentless focus on meeting the complex needs of our 30,000+ global customers,” said Olivier Pomel, Datadog’s co-founder and CEO. “That said, we’re only getting started and it is still early days for cloud adoption and AI transformation.”