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 | $11.21 |
| Price-to-Book | 21.00 |
| Price-to-Sales (TTM) | 22.39 |
| EV/Revenue | 22.19 |
| EV/EBITDA | 312.47 |
| Quarterly Earnings Growth (YoY) | 1498.00% |
| Quarterly Revenue Growth (YoY) | 35.60% |
| Shares Outstanding | $334.90M |
| Float | $332.96M |
| % Insiders | 0.64% |
| % Institutions | 92.86% |
Volatility is currently expanding
Datadog (DDOG) is downgraded to a sell as valuation now requires near-flawless execution and sustained growth acceleration. Despite 35.6% YoY revenue growth and strong AI tailwinds, a large customer has reduced usage, raising concerns about future growth durability. DDOG trades at a significant premium to software peers, with downside risk if sentiment shifts or revenue growth decelerates.
DDOG's large customers are growing fast, driving 91% of ARR as enterprise bookings, AI adoption and platform expansion strengthen revenue momentum.
Datadog NASDAQ: DDOG Chief Financial Officer David Obstler said the company's recent growth has been supported by a broader product platform, market-share gains and expanding demand across customer sizes and geographies. In a conference discussion with Canaccord Genuity technology analyst Kingsley Crane, Obstler said the company has benefited from customers modernizing technology stacks and preparing infrastructure for artificial intelligence workloads.
Western Digital, Caterpillar and Datadog rank among top momentum picks using Driehaus' "buy high and sell higher" strategy.
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?
Datadog's Q2 beat, raised 2026 outlook, strong cash flow and AI momentum support growth, though the stock trades at a premium valuation.
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Every so often, the market serves up a reaction so at odds with the underlying news that it's worth asking what investors are really thinking. Datadog Inc. NASDAQ: DDOG delivered one such moment this week, when the observability software company followed up an excellent quarter with a 19% drop in its share price.
DDOG tops Q2 earnings and revenue guidance as sales rise 36%, customer expansion continues, and full-year outlook reflects a major customer's lower usage.
Datadog posted 36% revenue growth as AI and non-AI demand accelerated, while guidance was derisked for lower usage at its largest customer.
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