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Datadog stock jumps 10% on tech company's inclusion in S&P 500 index

1. Datadog to replace Juniper Networks in S&P 500 index on July 9. 2. Shares surged 10% in extended trading after the announcement. 3. Company reported $24.6 million net income on $761.6 million revenue last quarter. 4. Tech exposure in S&P 500 continues to increase with recent additions. 5. Datadog's stock has underperformed the tech sector so far this year.

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FAQ

Why Bullish?

Inclusion in the S&P 500 typically leads to price appreciation due to increased demand from funds. Historical examples include stocks like Nvidia and Amazon seeing rallies post-index inclusion.

How important is it?

The index inclusion is a significant event, likely to sway investor perceptions positively, hence the moderate score.

Why Short Term?

The immediate demand from index funds will boost Datadog's stock prior to the inclusion date. Similar past events show immediate impacts manifesting quickly.

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