Core Viewpoint - Datadog Inc. has transitioned into a growth phase, leading to its inclusion in the S&P 500 index, which is expected to drive significant institutional buying pressure and enhance its stock performance [2][4][5]. Company Overview - Datadog's current market capitalization stands at $53.7 billion, reflecting its rapid financial growth and making it a potential compounder for investors [3]. - The stock is currently trading at $154.04, with a 52-week range between $81.63 and $170.08, and a P/E ratio of 334.71 [2]. S&P 500 Inclusion Impact - The addition to the S&P 500 will require institutional investors to purchase Datadog stock, creating substantial buying pressure [4][5]. - UBS Asset Management increased its holdings in Datadog by 48.3%, totaling $281.4 million, positioning it as the largest institutional holder [6]. Stock Performance and Momentum - Datadog's stock has experienced a one-month rally of up to 27.8%, currently trading at 92% of its 52-week high, indicating strong momentum [7]. - If the stock retests or surpasses its previous 52-week high, it is likely to attract more institutional buyers due to common momentum strategies [7]. Financial Performance - Datadog reported quarterly revenue of $762 million, representing a 25% net growth rate year-over-year [9]. - The company has 3,770 users generating over $100,000 in annual recurring revenue (ARR), indicating a stable revenue model [10]. - Operating cash flow increased to $271.5 million from $212.3 million year-over-year, providing opportunities for debt reduction, EPS growth, stock buybacks, or acquisitions [12][13].