Datadog (DDOG)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$212.93-0.85%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
Broken: Primary pillar broken — Achieve non-GAAP EPS of $2.36-$2.44 in 2026: FY26 EPS guidance $2.50-$2.54 vs $2.36 target.
Datadog grows revenue about 32% year-over-year, aiming for $4.3-$4.34 billion in 2026. Profit per share is on track for $2.36-$2.44 this year. The company has a strong platform for cloud analytics and monitoring. Recent earnings beats support continued growth.
Demand may be slowing, as Bernstein warns and downgraded the stock. The high valuation at 142.7 PE times earnings is risky. If revenue growth falls below 27%, the business could face pressure.
The market prices about 27% revenue growth and a premium valuation. Our fair value is 56% below the current price, reflecting skepticism. We differ by expecting growth to be pressured by demand signals.
Breaks if: evidence of sustained decline in customer growth or usage
Breaks if: EPS falls below $2.20 in FY26
Breaks if: annual revenue falls below $4.0 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and profitability. The current thesis state is intact, supported by management's commitment to revenue and earnings targets despite recent market challenges.
The market currently prices DDOG at an expensive valuation compared to its peers, reflecting a stretched expectations gap. This suggests that investors are anticipating continued strong performance, but there is some fragility due to the high valuation.
Management is on track to meet its revenue and earnings goals, with significant year-over-year growth in revenue and an increase in high-value customers. However, there is a low probability of missing expectations, although recent industry trends show some peers have struggled.
The long-term thesis hinges on several factors, including the potential for the Federal Reserve to cut interest rates, which could benefit tech stocks. Additionally, strong performance from sector leaders like SAP, CRM, and NOW could provide positive momentum for DDOG.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a revenue increase to $4.45-$4.47 billion in 2026. Additionally, there is strong revenue growth momentum, with guidance reaffirmed for $4.30-$4.34 billion.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Overall, DDOG's fundamentals appear solid, but the elevated valuation and market risks warrant careful observation. Not investment advice.