Datadog Inc. ( DDOG ) shares are trading higher Thursday after S&P Dow Jones Indices announced the company will be added to the S&P 500 index next week on Wednesday.

What To Know: The inclusion follows the completion of Hewlett Packard Enterprise's acquisition of Juniper Networks, which Datadog ( DDOG ) will replace in the benchmark index. The adjustment is scheduled to take effect before the market opens on July 9.

Shares of Datadog ( DDOG ) rose more than 9% in after-hours on Wednesday trading following the announcement. The move comes as investors anticipate increased demand for the stock from index-tracking funds and institutional portfolios that are required to reflect the S&P 500's composition.

Meanwhile, other companies that had been speculated as potential S&P 500 candidates, such as Robinhood Markets, AppLovin, Interactive Brokers and Carvana, saw a modest pullback after the news. Robinhood in particular declined more than 2% after hours, erasing some of its earlier gains from Wednesday's regular session.

The index change caps off a multi-week period of speculation among analysts and investors over which company would fill Juniper Networks' spot. Now that the decision is final, Datadog ( DDOG ) is poised to see a shift in shareholder composition and could see higher daily volume leading up to and following the index change.

DDOG Price Action: Datadog ( DDOG ) shares were up 13.6% at $153.33 at the time of writing, according to Benzinga Pro.

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