Datadog Inc DDOG

What the company does

Datadog Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $96.8B, based in the USA.

It employs about 8,100 people and has been listed since Sep 19, 2019.

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, observability pipelines, synthetics, real user monitoring, product analytics, continuous profiler, database monitoring, data observability, LLM observability, error tracking, network monitoring, incident response, workflow automation and App builder, event management, bits AI SRE, cloud cost management, cloud security, code security, cloud SIEM, threat management, sensitive data scanner, and CI visibility.

Cheap or expensive? relatively expensive

Its price-to-earnings (P/E) is 518.6 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively expensive.

Revenue is growing 36% a year — the market is paying ahead for that growth. If it slows, the high multiple becomes the risk.

On analysts' next-year forecasts the multiple drops to 67.6 — they expect higher earnings.

The average analyst price target is 293.00, 9% above the current price (their view, not ours).

The stock sits at 85% of its one-year range (0% = the low, 100% = the high).

The risks

• • The stock is more volatile than average (beta 1.5) — big daily moves both ways.
• • Quarterly report in 10 days (2026-11-04) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 4 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ More cash than debt.
• ✅ Most analysts rate it buy (44 vs 2).
• ✅ Revenue is growing 36% a year.

What changed this week

Over the past week the stock rose 9.1% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

This week's news

• Palo Alto Networks, Datadog, Zscaler, and SentinelOne shares skyrocket, what you need to know finance.yahoo.com · 2026-10-24
  What the article says

  Palo Alto Networks, Datadog, Zscaler, and SentinelOne shares skyrocket, what you need to know What happened? A number of stocks jumped in the afternoon session after cybersecurity stocks surged as investors reacted to a massive new wave of artificial intelligence-enabled cyber threats that industry experts have dubbed… source ↗

• Agent cloud startup Daytona hits $1B valuation backed by FirstMark and a who’s who of angels finance.yahoo.com · 2026-10-23
  What the article says

  Daytona Platforms announced on Friday that it had raised a $60 million Series B round at a $1 billion valuation led by FirstMark Growth. The company says it has now raised a total of $91 million. The New York-based startup has attracted not just FirstMark (which also led its $24 million Series A in February), but also… source ↗

• 3 Investment Grade Bond Ideas Riding Big Tech AI Capex Plans finance.yahoo.com · 2026-10-23
  What the article says

  Big Tech just put eye watering long term spending on the table, with Meta, Tesla and SpaceX sketching hundreds of billions in future AI and chip infrastructure outlays while Apple keeps its cash engine on a tighter leash. That mix of ambition and restraint is shaking credit markets and bond spreads. This piece walks… source ↗

• Datadog (DDOG) Stock Looks Undervalued Even After A 216% Run finance.yahoo.com · 2026-10-23
  What the article says

  Datadog has delivered a powerful run over the past few years, helped by growing interest in observability tools and rising attention on AI workloads. With the share price now well above where it traded three years ago, the key question for investors is whether that move aligns with the cash the business can produce… source ↗

• Top Software Stocks to Watch Going Into Sept-Qtr Earnings, According to Jefferies finance.yahoo.com · 2026-10-22
  What the article says

  Investing.com-- Jefferies updated its outlook on several U.S. software stocks, highlighting opportunities across observability platforms, enterprise technology and cloud-based tools going into the September quarter earnings season. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and… source ↗

• 3 Big Reasons to Love Datadog (DDOG) finance.yahoo.com · 2026-10-21
  What the article says

  3 Big Reasons to Love Datadog (DDOG) Datadog has been on fire lately. In the past six months alone, the company's stock price has rocketed 99.7%, reaching $258.22 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is it too… source ↗

What changed since last week

• New risk flag: earnings report coming up.

• The price rose 9.1% since the last summary.