Prediction: After Datadog's S&P 500 Debut, These Stocks Could Be Next in Line

Being added to the S&P 500 is a big deal for any company, and usually a boon to its stock. Not only is the venerable large-cap index widely followed by individual investors, but many funds are built to replicate its performance, which results in consistent demand for its components as funds flow into those popular investment vehicles. It also means that whenever a new stock is chosen for inclusion, it tends to get a bump in its price as all of those funds must buy shares for their portfolios.Now, while the index is composed of 500 of the largest U.S. companies, simply growing to that size isn't enough to earn a company entry -- there are other requirements. For example, a company must be domiciled in the U.S., have a plurality of its assets here, and trade on a major U.S. exchange. The index also keeps out master limited partnerships and business development companies, and there are certain minimum requirements for share float. One of the biggest hurdles for entry, though, is that to be added at any given time, a company must have been GAAP profitable both in the prior quarter and over the prior 12 months.Datadog (NASDAQ: DDOG) was the most recent stock to get the nod to join the S&P 500, and the question now on some investors' minds is which stocks could be next. My prediction is that the three most likely stocks to be included next are Robinhood Markets (NASDAQ: HOOD), AppLovin (NASDAQ: APP), and Cheniere Energy (NYSE: LNG).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool