Datadog (DDOG.US) Joins the S&P 500 Index and Wedbush raised its target price to $170

The Zhitong Finance App learned that the latest research report by Wedbush Securities indicates that the inclusion of observable software service provider Datadog (DDOG.US) in the S&P 500 Index represents a major development milestone. Based on optimistic expectations of the Datadog market outlook, Wedbush raised its target price for the share from $140 to $170 per share and reaffirmed its leading position in the industry. The research report specifically mentioned that the partnership established between the company and OpenAI is expected to form a strategic synergy in the global application wave of generative AI technology.

According to information, the investment community previously generally anticipated that Robinhood (HOOD.US) or Applovin (APP.US) might be selected as a component of the index, but the S&P Dow Jones Index Committee finally chose Datadog. The Wedbush analysis team emphasized in the research report that the technology company's accumulation of technology in the field of observability, especially breakthrough progress in artificial intelligence application scenarios, has become a key factor in its differentiation.

Analysts specifically pointed out that as generative AI assistants accelerate their penetration into the industry, Datadog's technological innovation through the Bits AI platform is creating new opportunities — its 24-hour uninterrupted back-office scanning system can actively warn of hidden system hazards. Combined with automated fault repair suggestions, full-link tracking summaries, and innovative statistical monitoring solutions, it has significantly optimized developers' workflows.

Stimulated by this favorable news, the company's US stock price climbed more than 10% during the pre-market trading session on Thursday.

This index component adjustment stems from HPE Technology (HPE.US) completing the acquisition transaction of network equipment company Juniper Networks. According to the S&P index compilation rules, the acquired Juniper Networks will officially withdraw from the S&P 500 Index on July 9, and Datadog will take over its seat. This shift marks the latest sign of capital market revaluation in the field of cloud-native observability, and also confirms the rising trend of the AI-driven enterprise services market.