Datadog, Inc. Stock News

Datadog excels in observability with strong R&D, efficient land-and-expand strategy, and high FCF efficiency, making it a top investment in this sector. Datadog's comprehensive platform covers infrastructure monitoring, APM, and log management, driving significant ARR and offering robust solutions for digital infrastructure management. Despite competition, Datadog's innovative products and stra...

Block (XYZ -2.56%), the fintech company formerly known as Square, was once a hot growth stock. It went public in 2015, and its revenue grew at a compound annual growth rate (CAGR) of 55% from 2015 to 2021.

Big Tech valuations have dropped, but companies like Shopify, Datadog, and Reddit have more attractive free cash flow yields.

Datadog's Q4-24 earnings showed strong multi-product adoption, with 50% of clients using four or more products. The company's record $1B in bookings in Q4-24 highlights momentum, but Q1-25 guidance was below expectations. Datadog's AI-native clients now represent ~6% of ARR, driving a five percentage-point contribution to YoY topline growth.

The S&P 500 (SNPINDEX: ^GSPC) tumbled as much as 19% from its high during the recent stock market rout. The benchmark index rebounded more than 9% on April 9 when President Donald Trump announced a 90-day delay on the reciprocal tariffs he unveiled a week earlier, but it dropped sharply again on April 10 and remains firmly in correction territory at 15% below its record high.

Of the three stock plays, two are in the cybersecurity business and one is a fintech.

Technology stocks are popular for a good reason. These companies qualify as solid growth stocks that can supercharge your portfolio and make you a millionaire.

Datadog is fascinating to me in that its experience over the last five years can teach us a lot about investing. In addition to being a great teacher, Datadog is also a fantastic business with rapid growth and huge margins, alongside a strong balance sheet. Today, I will walk us through some of the "Lessons From Datadog," then provide a comprehensive valuation of the business.