TradingKey – As of the U.S. market close on July 3, Datadog (DDOG) jumped 14.92% to $155.15 after being added to the S&P 500 index , a move that investors believe will bring significant passive inflows and improved liquidity.

[DDOG Intraday Chart (5min) | Source: Investing.com]

In contrast, Robinhood (HOOD) fell more than 3.6% , as it failed to win a spot in the latest S&P 500 update — a decision that disappointed many who had hoped for its inclusion. The change in the index came after Juniper Networks was acquired by Hewlett Packard Enterprise , opening the door for Datadog’s addition.

As a leading cloud monitoring platform, Datadog's strong profitability made it an ideal candidate for the index. Meanwhile, despite Robinhood’s $83.3 billion market cap and more than 100% year-to-date gain , it remains excluded — likely due to concerns over earnings consistency and business model stability.

Analyst Takeaways

• Morgan Stanley highlighted that joining the S&P 500 will significantly boost institutional investor attention on Datadog.
• Bank of America noted that while Robinhood may have missed this round, its long-term potential remains intact, particularly with continued growth in retail trading and crypto services.

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