DDOGDatadog shows strong growth potential, driven by its platform's utility in cloud observability and security. Its fundamentals are improving, though valuation remains a consideration. Technicals suggest a potentially bullish short-term outlook with some overbought indicators.
Datadog is positioned to benefit from significant secular tailwinds in cloud computing, digital transformation, and the increasing need for robust observability and security solutions.
Datadog demonstrates robust revenue growth and improving profitability, supported by a solid balance sheet. The company is transitioning towards consistent net income and positive free cash flow.
Datadog is trading in an uptrend, with several moving averages suggesting bullish momentum. However, some oscillators indicate potential overbought conditions on shorter timeframes, suggesting a possible pause or minor pullback.
| Factor | Score |
|---|---|
| Cloud Adoption & Digital Transformation | 95 |
| Observability & Security Needs | 90 |
| AI & Machine Learning Integration | 80 |
| Competitive Landscape | 75 |
| Data Security & Privacy Regulations | 85 |
| Factor | Score |
|---|---|
| Valuation | 45 |
| Profitability | 65 |
| Growth | 90 |
| Balance Sheet Health | 85 |
| Cash Flow | 88 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 70 |
| Volume | 75 |
| Support and Resistance | 65 |
| Short-Term Oscillators | 65 |
Positive EPS Surprises
Datadog has consistently beaten EPS estimates, with recent quarters showing surprise percentages of 6.64%, 12.29%, and 15.24%. This suggests an ability to outperform analyst expectations.
Strong and Growing Cash Position
The company's cash and cash equivalents have grown from $338.99 million in Q4 2022 to $1,246.98 million in Q4 2024, providing significant financial flexibility and resilience.
High P/E Ratio
The trailing P/E ratio of 305.33 is exceptionally high, suggesting that investors are paying a significant premium for earnings, which could indicate overvaluation or high growth expectations.
High P/S Ratio
The trailing P/S ratio of 23.1 is also very high, indicating that the company's market capitalization is substantially greater than its revenue, further suggesting a premium valuation.
August 2025
7
Next Earnings Date
H: $0.42
A: $0.41
L: $0.40
H: 815.96M
A: 791.64M
L: 786.30M
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data observability, universal service monitoring, network monitoring, error tracking, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, event management and CI and LLM visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.
146.00 USD
The 39 analysts offering 1 year price forecasts for DDOG have a max estimate of 200.00 and a min estimate of 105.00.