
Cloud software stocks are under heavy pressure as worries about AI financing spread across the sector. High-growth names that posted strong recent results are absorbing much of the selling.
Datadog, Inc. provides an analytics and monitoring platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company is headquartered in New York, New York.
| Revenue (TTM) | $3.97B |
| Gross Profit (TTM) | $3.15B |
| EBITDA | $82.90M |
| Operating Margin | 0.67% |
| Return on Equity | 4.70% |
| Return on Assets | 0.18% |
| Revenue/Share (TTM) | $11.26 |
| Book Value | $12.17 |
| Price-to-Book | 20.68 |
| Price-to-Sales (TTM) | 22.37 |
| EV/Revenue | 21.83 |
| EV/EBITDA | 307.41 |
| Quarterly Earnings Growth (YoY) | 1498.00% |
| Quarterly Revenue Growth (YoY) | 35.60% |
| Shares Outstanding | $334.90M |
| Float | $333.02M |
| % Insiders | 0.56% |
| % Institutions | 93.07% |
Volatility is currently expanding

Cloud software stocks are under heavy pressure as worries about AI financing spread across the sector. High-growth names that posted strong recent results are absorbing much of the selling.

NEW YORK, Oct. 14, 2026 (GLOBE NEWSWIRE) -- Datadog, Inc. (NASDAQ:DDOG), the leading AI-powered observability and security platform, today announced that it will report its third quarter fiscal year 2026 financial results before the U.S. financial markets open on Wednesday, November 4, 2026.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

We exited The Trade Desk in the quarter. Its revenue growth continues to lag that of peers such as Amazon, Meta, Google, and Walmart. We added a new position in Datadog this quarter. As cloud continues to grow strongly, software is becoming increasingly complex, requiring more monitoring, observability, and autonomy. Google dominates the internet with a 91% share of Search, 69% of phones with Android, 68% of browsers with Chrome, and over a 70% share for YouTube, Gmail, Maps, and Play Store.

Recently, Zacks.com users have been paying close attention to Datadog (DDOG). This makes it worthwhile to examine what the stock has in store.

Datadog (NASDAQ:DDOG | DDOG Price Prediction) stock is up 6% to $272.50, a sharp gain for the observability and monitoring company. That strength arrives against a weaker software group, giving Datadog stock a move that belongs to it alone.

Zacks.com users have recently been watching Datadog (DDOG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

DDOG's international expansion across EMEA and APAC could support revenue growth as recurring subscriptions drive broader platform adoption.

Personal AI assistants are moving beyond answering questions to carrying out everyday tasks through several steps. Meta Platforms' (META) Muse agent is one example that has taken the world by storm over the past week.

FTNT pairs faster billings growth, robust cash flow and a lower valuation, while DDOG delivers stronger revenue growth but faces near-term customer pressure.
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