Datadog Barking Up the Right Tree; Outlook Healthy

Datadog Barking Up the Right Tree; Outlook Healthy

Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. With the pandemic accelerating digital and cloud trends, the SaaS cloud observability company multiplied its valuation in a relatively short period. The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again.  

Updating his hypothesis and raising his price target was Brian White of Monness, who elaborated that Datadog posted revenues up 84% year-over-year, an impressive metric considering last year’s pandemic-driven profits. Additionally, the company bested Wall Street consensus estimates on its earnings per share, and provided a record operating margin.  

While the near-term may prove uncertain for DDOG and its tech peers, its outlook appears strong.