Is Datadog Stock a Good Investment?
Datadog Investment Advice | DDOG |
- Examine Datadog's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Datadog's leadership team and their track record. Good management can help Datadog navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Datadog's business and its evolving consumer preferences.
- Compare Datadog's performance and market position to its competitors. Analyze how Datadog is positioned in terms of product offerings, innovation, and market share.
- Check if Datadog pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Datadog's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Datadog stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Datadog is a good investment.
Sell | Buy |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Datadog Stock
Researching Datadog's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.97. Datadog had not issued any dividends in recent years.
To determine if Datadog is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Datadog's research are outlined below:
| Datadog has a strong financial position based on the latest SEC filings | |
| Over 81.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: Agilent Q4 Earnings Surpass Estimates, Revenues Increase YY |
Datadog Quarterly Gross Profit |
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Datadog uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Datadog. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Datadog's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Datadog's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Datadog's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-05-06 | 2021-03-31 | 0.03 | 0.06 | 0.03 | 100 | ||
2023-05-04 | 2023-03-31 | 0.24 | 0.28 | 0.04 | 16 | ||
2021-02-11 | 2020-12-31 | 0.02 | 0.06 | 0.04 | 200 | ||
2020-11-10 | 2020-09-30 | 0.01 | 0.05 | 0.04 | 400 | ||
2020-08-06 | 2020-06-30 | 0.01 | 0.05 | 0.04 | 400 | ||
2020-02-13 | 2019-12-31 | -0.02 | 0.03 | 0.05 | 250 | ||
2024-11-07 | 2024-09-30 | 0.4 | 0.46 | 0.06 | 15 | ||
2024-08-08 | 2024-06-30 | 0.37 | 0.43 | 0.06 | 16 |
Know Datadog's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Datadog is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Datadog backward and forwards among themselves. Datadog's institutional investor refers to the entity that pools money to purchase Datadog's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Wcm Investment Management | 2024-09-30 | 4.4 M | Sands Capital Management, Llc | 2024-09-30 | 4.3 M | American Century Companies Inc | 2024-09-30 | 4.2 M | Iconiq Capital, Llc | 2024-09-30 | 4 M | Massachusetts Financial Services Company | 2024-09-30 | 3.9 M | Goldman Sachs Group Inc | 2024-06-30 | 3.4 M | Wellington Management Company Llp | 2024-06-30 | 3.3 M | Norges Bank | 2024-06-30 | 3.2 M | Amundi | 2024-06-30 | 2.5 M | Vanguard Group Inc | 2024-09-30 | 30.1 M | Blackrock Inc | 2024-06-30 | 20.1 M |
Datadog's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 52.45 B.Market Cap |
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Datadog's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | (0.01) | (0.01) | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.02 | 0.02 |
Determining Datadog's profitability involves analyzing its financial statements and using various financial metrics to determine if Datadog is a good buy. For example, gross profit margin measures Datadog's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Datadog's profitability and make more informed investment decisions.
Datadog's Earnings Breakdown by Geography
Evaluate Datadog's management efficiency
Datadog has return on total asset (ROA) of 0.0111 % which means that it generated a profit of $0.0111 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0866 %, meaning that it created $0.0866 on every $100 dollars invested by stockholders. Datadog's management efficiency ratios could be used to measure how well Datadog manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Datadog's Return On Tangible Assets are most likely to increase slightly in the upcoming years. The Datadog's current Return On Assets is estimated to increase to 0.01, while Return On Capital Employed is projected to decrease to (0.01). At this time, Datadog's Return On Tangible Assets are most likely to increase slightly in the upcoming years. The Datadog's current Fixed Asset Turnover is estimated to increase to 7.98, while Net Tangible Assets are projected to decrease to roughly 608.8 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.25 | 6.56 | |
| Tangible Book Value Per Share | 5.13 | 5.39 | |
| Enterprise Value Over EBITDA | 265.65 | 278.93 | |
| Price Book Value Ratio | 19.42 | 20.39 | |
| Enterprise Value Multiple | 265.65 | 278.93 | |
| Price Fair Value | 19.42 | 20.39 | |
| Enterprise Value | 50 B | 44.5 B |
The management team at Datadog has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.095 |
Basic technical analysis of Datadog Stock
As of the 28th of November, Datadog shows the Mean Deviation of 1.69, downside deviation of 1.9, and Coefficient Of Variation of 504.59. Datadog technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Datadog variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Datadog is priced favorably, providing market reflects its regular price of 151.96 per share. Given that Datadog has jensen alpha of 0.322, we urge you to verify Datadog's prevailing market performance to make sure the company can sustain itself at a future point.Datadog's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Datadog insiders, such as employees or executives, is commonly permitted as long as it does not rely on Datadog's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Datadog insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Datadog's Outstanding Corporate Bonds
Datadog issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Datadog uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Datadog bonds can be classified according to their maturity, which is the date when Datadog has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Datadog's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Datadog's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1581 | |||
| Market Risk Adjusted Performance | 0.4604 | |||
| Mean Deviation | 1.69 | |||
| Semi Deviation | 1.64 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 504.59 | |||
| Standard Deviation | 2.27 | |||
| Variance | 5.14 | |||
| Information Ratio | 0.1407 | |||
| Jensen Alpha | 0.322 | |||
| Total Risk Alpha | 0.0822 | |||
| Sortino Ratio | 0.1678 | |||
| Treynor Ratio | 0.4504 | |||
| Maximum Drawdown | 8.5 | |||
| Value At Risk | (2.63) | |||
| Potential Upside | 4.39 | |||
| Downside Variance | 3.61 | |||
| Semi Variance | 2.7 | |||
| Expected Short fall | (1.98) | |||
| Skewness | 0.6147 | |||
| Kurtosis | 1.35 |
| Risk Adjusted Performance | 0.1581 | |||
| Market Risk Adjusted Performance | 0.4604 | |||
| Mean Deviation | 1.69 | |||
| Semi Deviation | 1.64 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 504.59 | |||
| Standard Deviation | 2.27 | |||
| Variance | 5.14 | |||
| Information Ratio | 0.1407 | |||
| Jensen Alpha | 0.322 | |||
| Total Risk Alpha | 0.0822 | |||
| Sortino Ratio | 0.1678 | |||
| Treynor Ratio | 0.4504 | |||
| Maximum Drawdown | 8.5 | |||
| Value At Risk | (2.63) | |||
| Potential Upside | 4.39 | |||
| Downside Variance | 3.61 | |||
| Semi Variance | 2.7 | |||
| Expected Short fall | (1.98) | |||
| Skewness | 0.6147 | |||
| Kurtosis | 1.35 |
Consider Datadog's intraday indicators
Datadog intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Datadog stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 120415.0 | |||
| Daily Balance Of Power | (0.50) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 153.07 | |||
| Day Typical Price | 152.7 | |||
| Price Action Indicator | (2.33) | |||
| Period Momentum Indicator | (2.43) | |||
| Relative Strength Index | 57.43 |
Datadog Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Datadog Stock media impact
Far too much social signal, news, headlines, and media speculation about Datadog that are available to investors today. That information is available publicly through Datadog media outlets and privately through word of mouth or via Datadog internal channels. However, regardless of the origin, that massive amount of Datadog data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Datadog news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Datadog relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Datadog's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Datadog alpha.
Datadog Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Datadog can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Datadog Historical Investor Sentiment
Investor biases related to Datadog's public news can be used to forecast risks associated with an investment in Datadog. The trend in average sentiment can be used to explain how an investor holding Datadog can time the market purely based on public headlines and social activities around Datadog. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Datadog's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Datadog and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Datadog news discussions. The higher the estimate score, the more favorable the investor's outlook on Datadog.
Datadog Corporate Management
| David Obstler | Chief Officer | Profile | |
| Amit Agarwal | President | Profile | |
| Emilio Escobar | Chief Officer | Profile | |
| Kerry JD | General Secretary | Profile | |
| Alex Rosemblat | Chief Officer | Profile | |
| Angie Holt | Senior Success | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Datadog. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more detail on how to invest in Datadog Stock please use our How to Invest in Datadog guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Datadog. If investors know Datadog will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Datadog listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.333 | Earnings Share 0.56 | Revenue Per Share 7.609 | Quarterly Revenue Growth 0.26 | Return On Assets 0.0111 |
The market value of Datadog is measured differently than its book value, which is the value of Datadog that is recorded on the company's balance sheet. Investors also form their own opinion of Datadog's value that differs from its market value or its book value, called intrinsic value, which is Datadog's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Datadog's market value can be influenced by many factors that don't directly affect Datadog's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Datadog's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Datadog is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Datadog's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.