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 (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 (HOOD), AppLovin (APP), and Cheniere Energy (LNG).

Robinhood Markets

With a market cap of more than $80 billion, Robinhood is one of the largest U.S. companies not in the S&P 500. The financial services and trading platform is solidly profitable, generating $1.95 billion in net income in 2024 and $336 million in Q1 2025.

It has been growing quickly, too: In Q1, its revenue soared 50% year over year to $927 million. That growth was driven by its introduction of new products, and the company has been attracting new clients by offering 1% to 3% matching contributions on transfers and contributions to retirement accounts. Its Gold subscription service, which offers a number of perks for just $5 a month, or $50 a year, has also been catching on.

Robinhood is introducing artificial intelligence (AI) tools to its platform, including one called Cortex, to help traders navigate the market. It will also add a banking service this fall. Its recent $200 million acquisition of cryptocurrency exchange Bitstamp, meanwhile, expands the company’s services beyond retail trading and adds institutional and international clients.

Given its size and growth, I view Robinhood as the most likely company to be on the list for S&P 500 inclusion when the index next rebalances in September.

AppLovin

AppLovin (APP) was arguably the biggest snub during last quarter’s S&P 500 portfolio adjustment. With a market cap of over $115 billion, it is currently the largest qualifying U.S. company not to be included. It’s also solidly profitable, producing net income of nearly $1.6 billion last year and $576.4 million in Q1 2025.

Several recent short reports that accused the company of installing apps onto consumers’ devices without their permission and citing its alleged ties to China may have prompted the S&P 500 committee’s caution last time around. However, a number of high-profile investors own the stock, including Tiger Global’s Chase Coleman.

Meanwhile, there is no denying that the company is growing quickly. Last quarter, AppLovin’s total revenue jumped by 40% year over year to $1.48 billion while its advertising revenue soared 70% to $1.16 billion. The company is currently in the process of selling its legacy gaming app business, which will leave it a pure-play adtech business.

Its growth is being led by its AI-powered Axon-2 adtech solution, which gaming apps use to attract new users and more effectively monetize them. The company expects its mobile video gaming segment to grow by 20% to 30% annually over the long term due to industry growth and its own algorithms getting better over time. However, it is currently testing Axon 2 outside its core gaming app segment, and believes e-commerce will become a meaningful contributor to its financial performance in the years ahead.

Given its size and growth, I don’t think the S&P can continue to ignore AppLovin, despite the short reports.

Cheniere Energy

While both Enterprise Products Partners and Energy Transfer are larger energy companies than liquefied natural gas (LNG) giant Cheniere Energy and neither is in the S&P 500, those two don’t qualify to be since they are master limited partnerships (MLPs).

Cheniere has no such issue. It also has a market cap of over $50 billion and was solidly profitable both last quarter and last year.

It benefits from strong and growing demand for LNG. Analysts at Shell recently predicted that the LNG market would grow by 60% by 2040, and Cheniere is currently in the process of expanding its export capabilities. This should lead to solid future growth.

Meanwhile, with approximately 95% of its volumes contracted out until the mid-2030s via long-term take-or-pay contracts with global buyers, the company has strong visibility into its future cash flows. Overall, it’s a solid company that looks poised to be added to the S&P 500 in the near future.