Datadog Inc ( DDOG ). saw a surge of nearly 11% in its stock value during after-hours trading on Wednesday.

What Happened: Datadog’s stock price experienced a 10.88% increase after the market closed on Wednesday, reaching $149.70. This surge followed the company’s announcement of its inclusion in the S&P 500 index. The stock’s closing price was $135.01, reflecting a 2.03% increase during regular trading hours.

S&P Dow Jones announced on July 2, 2025, Datadog ( DDOG ) is set to join the S&P 500. Datadog ( DDOG ) will officially replace Juniper Networks ( JNPR ) , acquired by Hewlett-Packard Enterprise ( HPE ) , in the index. This change will be effective before the market opens on July 9, 2025.

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Datadog’s market cap is currently at $46.63 billion, with an average trading volume of 4.36 million. The company’s price-to-earnings ratio stands at 267.48.

Why It Matters: Datadog’s stock surge comes on the heels of a strong performance in the first quarter of 2025. The company’s first-quarter revenue exceeded expectations, increasing by 25% year-over-year to $761.55 million. This performance led to a rise in the company’s revenue outlook, despite concerns about margin pressure.

Furthermore, a report by BofA Securities suggests that AI and analytics budgets are on the rise, which could potentially benefit companies like Datadog ( DDOG ). The report indicates that while software spending growth intentions have slightly decreased, they are still expected to increase by 9.9% for 2025 and 10.8% for 2026.

Price Action: DDOG stock is closed up at 2.03% at $135.01 during regular trading hours on July 3, 2025.

Benzinga's Edge Stock Rankings indicate a high growth score of 95.78  and bullish trends across all timeframes. Know the other parameters on which the stock fares.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.