Datadog, Inc. Stock News

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.

Addressing growing software supply chain threats with real-time insights and proactive risk mitigation to eliminate vulnerabilities and accelerate engineering velocity KIRKLAND, Wash. , March 25, 2025 /PRNewswire/ -- Chainguard , the secure foundation for software development and deployment, today announced a partnership with Datadog , Inc. (NASDAQ: DDOG), the monitoring and security platform f...

The Nasdaq Composite index is made up of almost every stock listed on the Nasdaq exchange. It soared by 28% during 2024 thanks to massive gains in artificial intelligence (AI) stocks, but it's currently down 12% from its December record high, placing it in correction territory.

The stock market has recovered from its correction territory, but there's still significant fear due to tariff-related uncertainty.

Datadog, Inc. offers a leading observability and monitoring platform, with potential to achieve $8 billion in sales and $2-2.5 billion in net income by 2030. Despite recent technical setbacks, DDOG remains a consistent performer with an 80% gross margin and potential for significant profitability improvements due to AI efficiencies. DDOG's current valuation is relatively inexpensive, trading at...

The Nasdaq Composite (^IXIC -1.71%) entered market correction territory on March 6, meaning it closed more than 10% below its recent bull-market high. The index has continued to fall since then and currently trades 12% below the record high it reached in December.

Datadog has been a victim of a bursting of the tech bubble. DDOG reported $738 million in revenue with 25% YoY growth and strong GAAP profitability, supported by a net cash balance sheet. Despite a deceleration in growth rates, DDOG's long-term growth potential remains strong, driven by its wide portfolio and cross-selling opportunities.

Software stocks are facing heightened volatility this week, with Adobe Inc (NASDAQ:ADBE) , Datadog Inc (NASDAQ:DDOG) , and Dynatrace Inc (NYSE:DT) all struggling due to disappointing earnings guidance, market-wide headwinds, and sector-specific pressures.