Wall Street Pauses as Stock Futures Hover: Get Live Updates on the June Jobs Report!

Datadog, a rising star in cloud software, just got a boost. Analyst Dan Ives from Wedbush raised his price target from $140 to $170 after the company announced it will join the S&P 500. This change signals a 26% potential rise for the stock. Ives spoke about surprising choices for the index, noting that many expected Robinhood or Applovin to be included instead.

“Datadog is carving out a niche in observability, especially with its focus on AI,” he said. The company will take the place of Juniper Networks on July 9, following its acquisition by Hewlett Packard Enterprise. Ives believes Datadog is primed for success, aided by strong demand among its enterprise customers and its innovative market strategies.

In the premarket hours, shares of Datadog climbed over 9%. This excitement aligns with a growing trend: short interest in the S&P 500 and Nasdaq-100 is increasing despite a robust market recovery. According to S3 Partners, short interest in the S&P 500 has risen to about 5.8% from 5.4% since the year started.

Meanwhile, investor interest remains high with Tripadvisor’s stock jumping as news surfaced that activist investor Starboard Value has taken a stake of more than 9%. Its shares surged over 8% after this announcement, signaling renewed confidence in the travel sector’s recovery.

Interestingly, even as major indices hit new highs, there’s a cautious attitude among investors. Many seem skeptical about the market’s recovery, as reflected in rising short interest numbers. Historical patterns show that periods of rapid gains can often lead to corrections. For instance, after the 2008 crash, investors showed great caution even as recovery began.

As we look ahead, it’s crucial to watch how companies like Datadog adapt to changing market dynamics and continue to harness the potential of emerging technologies. With AI becoming more central, the landscape is evolving, and the next few months could reveal much about the future of these stocks.