Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
718000.0
|
2023-11-07 00:00:00 UTC
|
US STOCKS-S&P 500, Nasdaq score longest win streak in 2 years on rate view
|
DDOG
|
https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-score-longest-win-streak-in-2-years-on-rate-view
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers maintain focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Updated at 4:00 p.m. ET/1900 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Markets are pricing in a 90.2% chance the Fed will once again hold rates steady at its December policy meeting, up from 68.9% a week ago, according to CME's FedWatch Tool.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq.
According to preliminary data, the S&P 500 .SPX gained 12.83 points, or 0.29%, to end at 4,378.81 points, while the Nasdaq Composite .IXIC gained 122.66 points, or 0.91%, to 13,641.44. The Dow Jones Industrial Average .DJI rose 62.14 points, or 0.18%, to 34,158.00.
The S&P 500 .SPX scored its seventh straight day in the green, with the Nasdaq .IXIC recording its eighth straight advance, the longest such streak for each index in two years. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
Energy .SPNY, the worst performing sector on the session, fell more than 2% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
Uber TechnologiesUBER.N rose as the ride-hailing firm projected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue.
(Reporting by Chuck Mikolajczak)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
|
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Updated at 4:00 p.m. ET/1900 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
|
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Updated at 4:00 p.m. ET/1900 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
|
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
|
b3aa799d-6cd9-4ef6-a7ae-47d104504996
|
718001.0
|
2023-11-07 00:00:00 UTC
|
Technology Sector Update for 11/07/2023: EH, GEN, DDOG, AYX
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-11-07-2023%3A-eh-gen-ddog-ayx
|
nan
|
nan
|
Tech stocks advanced late Tuesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index adding 0.8%.
In corporate news, EHang (EH) said Tuesday it "firmly denies" short-seller Hindenburg Research's allegations that the company misled investors about its order pipeline and sales. EHang shares were falling almost 13%.
Datadog (DDOG) surged 29% after the company posted higher-than-expected Q3 results and raised its 2023 outlook.
Gen Digital (GEN) jumped 8.4%. The company reported an increase in fiscal Q2 earnings and revenue, while tightening the forecasts for the full financial year.
Alteryx (AYX) reported late Monday it swung to Q3 adjusted earnings of $0.29 per diluted share from a $0.05 loss per share a year earlier. Analysts polled by Capital IQ expected a loss of $0.06 per share. Its shares soared 18%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) surged 29% after the company posted higher-than-expected Q3 results and raised its 2023 outlook. Tech stocks advanced late Tuesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index adding 0.8%. In corporate news, EHang (EH) said Tuesday it "firmly denies" short-seller Hindenburg Research's allegations that the company misled investors about its order pipeline and sales.
|
Datadog (DDOG) surged 29% after the company posted higher-than-expected Q3 results and raised its 2023 outlook. Tech stocks advanced late Tuesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index adding 0.8%. EHang shares were falling almost 13%.
|
Datadog (DDOG) surged 29% after the company posted higher-than-expected Q3 results and raised its 2023 outlook. In corporate news, EHang (EH) said Tuesday it "firmly denies" short-seller Hindenburg Research's allegations that the company misled investors about its order pipeline and sales. Alteryx (AYX) reported late Monday it swung to Q3 adjusted earnings of $0.29 per diluted share from a $0.05 loss per share a year earlier.
|
Datadog (DDOG) surged 29% after the company posted higher-than-expected Q3 results and raised its 2023 outlook. Tech stocks advanced late Tuesday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1.2% and the Philadelphia Semiconductor Index adding 0.8%. EHang shares were falling almost 13%.
|
a8dfa908-3b34-4142-b384-731d56864dcc
|
718002.0
|
2023-11-07 00:00:00 UTC
|
Datadog (DDOG) Q3 2023 Earnings Call Transcript
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-q3-2023-earnings-call-transcript
|
nan
|
nan
|
Image source: The Motley Fool.
Datadog (NASDAQ: DDOG)
Q3 2023 Earnings Call
Nov 07, 2023, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and thank you for standing by. Welcome to the third quarter 2023 Datadogearnings conference call At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.
[Operator instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Yuka Broderick, vice president of investor relations. Please go ahead.
Yuka Broderick -- Vice President, Investor Relations
Thank you, Gigi. Good morning and thank you for joining us to review Datadog's third quarter 2023 financial results, which we announced in our press release issued this morning. Joining me on the call today are Olivier Pomel, Datadog's co-founder and CEO; and David Obstler, Datadog's CFO. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the fourth quarter and the fiscal year 2023 and related notes and assumptions, our gross margins and operating margins, our product capabilities, our ability to capitalize on market opportunities, and usage optimization trends.
The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our Form 10-Q for the quarter ended June 30, 2023. Additional information will be made available in our upcoming Form 10-Q for the fiscal quarter ended September 30, 2023 and other filings with the SEC.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
This information is also available on the investor relations section of our website, along with a replay of this call. We will also discuss non-GAAP financial measures, which are reconciled to their most directly comparable GAAP financial measures in the tables in our earnings release, which is available at investors.datadoghq.com. With that, I'd like to turn the call over to Olivier.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thanks, Yuka, and thank you all for joining us this morning. We are pleased with our execution in Q3 as we delivered another quarter of profitable growth and robust new logo bookings, and we continue to broaden our platform to help customers become and grow digital businesses. Let me start with a review of our Q3 financial performance. Revenue was $548 million, an increase of 25% year over year and above the high end of our guidance range.
We ended with about 26,800 customers, up from about 22,200 last year. We ended the quarter with about 3,130 customers with an ARR of $100,000 or more, up from about 2,600 last year. And these customers generated about 86% of our ARR. And we generated free cash flow of $138 million, with a free cash flow margin of 25%.
Turning to platform adoption. Our platform strategy continues to resonate in the market. As of the end of Q3, 82% of customers were using two or more products, up from 80% a year ago; 46% of customers were using four or more products, up from 40% a year ago; and 21% of our customers were using six or more products, up from 16% last year. Now, let's discuss this quarter's business drivers.
In Q3, we saw usage growth in existing customers improved compared to Q2. Overall growth in Q3 was relatively consistent throughout the quarter and comparable to levels we've seen in Q1. We are seeing signs that the cloud optimization activity from some of our customers may be moderating. As a reminder, last quarter, we discussed a cohort of customers who began optimizing about a year ago, and we said that they appeared to stabilize their usage growth at the end of Q2.
That trend has held for the past several months with that cohort's usage remaining stable throughout Q3. Overall, we continue to see the impact from optimization in our business, but we believe that the intensity and breadth of optimization we've experienced in recent quarters is moderating. Meanwhile, our new logo activity has remained robust. New logo bookings continue to scale and grow year over year.
And for the second quarter in a row, we closed a record number of new deals with more than $100,000 in annual commitments. With our land-and-expand model, we expect new logos to turn into much larger customers over time as they lean into the cloud and add up more of our products. Finally, regarding customer growth, we are pleased with the new logos, new workloads, and new product [Inaudible] we added this quarter. We added a number of exciting new customers in Q3, and I'll discuss a couple of examples later.
Note that our total customer count is largely driven by our long tail of very small customers, while our sales motions are more targeted to the middle and high end of our prospects. And as a reflection of our team's strong execution, our net adds of customers over $100,000 saw an increase in Q3 compared to Q2. Despite a more cost-conscious demand environment over the past year, our business has continued to grow across product lines, and we are very proud to achieve several key milestones. First, our infrastructure monitoring ARR exceeded $1 billion.
Today, our infrastructure products cover monitoring the performance of hosts, networks, containers, Kubernetes deployment, serverless functions, and other aspects of infrastructure in the cloud, as well as a full set of AI and machine learning tools to help our customers separate signal from noise. Second, our APM suite, which includes core APM, synthetics, real user monitoring, and continuous profiler, exceeded 500 million in AAR. And we continue to expand our capabilities in APM, most recently with single-step instrumentation, which allows a single engineer to enable APM across all applications without code changes, and we achieved advances in mobile app monitoring, including mobile application testing and mobile session replay. Third, our log management product exceeded 500 million in ARR.
We also continue to expand our capabilities in log management. And with Flex Logs, customers can easily scale storage and compute separately, allowing for new very high-volume logging use cases in a cost-effective manner. From the very beginning, my co-founder, Alexis, and I had a vision to create a unified platform that serves end-to-end use cases across datasets, products, and team boundaries. We believe that these ARR milestones and their balance across the three pillars of observability demonstrate that Datadog is unique within the industry in establishing true platform value for customers.
And of course, even though these products have become significant in size, we are only just getting started. We will continue to innovate to deliver more solutions for our customers across observability and beyond. I will add that we have empathy for our customers and their pain points, in part, because we are, ourselves, users of cloud and next-gen technologies at a meaningful scale and we extensively deploy and use our own solution, which is appropriately known as dogfooding. As an example, we have extensively relied on our cloud cost management product as we expanded its capabilities this past year.
And the use of our product has played a large role in delivering cost, performance, and efficiency improvements, optimizing our own cloud usage and ultimately resulting in expansion of our gross margins in recent quarters. We also continue to innovate in the DevSecOps space. Our recent expansions in cloud security include Cloud SIEM Investigator, where customers can visualize logs over long periods of time to conduct security investigations. And within our cloud security management product, we have introduced Cloud Infrastructure Entitlement Management, or CIEM, to help customers prevent identity and access management security issues.
For a few years now, the industry has been talking about the idea of DevSecOps, the breaking down of silos among development, operations, and security teams. And we entered the security space on the premise that dev, ops, and security teams should share the same data in the same platform. So, starting this month, we are making the practice of DevSecOps easy to adopt for all customers by bringing together all the components needed to fully monitor and secure their entire stack with two simple packages. First, with infrastructure DevSecOps, our customers can observe and secure their entire cloud environment in one package.
With a simple per-host price and a single agent deployed, customers get end-to-end visibility into performance, availability, and security issues in one place. And from that one place, teams can also quickly remediate problems using built-in workflows and without any code or configuration changes. Second, with APM DevSecOps, we take this one step further. Customers can instrument cloud applications for both performance and vulnerability issues in one single package, enabled with the same unified agent used for infrastructure DevSecOps.
APM DevSecOps complements infrastructure DevSecOps by surfacing open-source and code-level security vulnerabilities alongside performance issues. Finally, we continue to be excited about the opportunity in generative AI and large language models. First, we believe adopting next-gen AI will require the use of cloud and other modern technologies and drive additional growth in cloud workloads. So, we are continuing to invest by integrating with more components at every layer of the new AI stack and by developing our own LLM observability products.
And while we see signs of AI adoption across large parts of our customer base, in the near term, we continue to see AI-related usage manifests itself most accurately with next-gen AI-native customers, who contributed about 2.5% of our ARR this quarter. In the mid to long term, we expect customers of all industries and sizes to keep adding value to their products using AI and to get their early exploration -- to get from early exploration to development and into production, thus driving larger cloud and observability usage across our customer base. Besides observing the AI stack, we also expect to keep adding value to our own platform using AI. Datadog's unified platform and purely SaaS model, combined with strong multiproduct adoption by our customers, generates a large amount of deep and precise observability data.
We believe combining AI capabilities with this broad dataset will allow us to deliver differentiated value to customers. And we are working to productize this differentiated value through recently announced capabilities such as our Bits AI assistant, AI-generated synthetic test, and AI-led error analysis and resolution. And we expect to deliver many more related innovation to customers over time. Let's move on to sales and marketing, where we continue to execute on both new logos and existing customers.
So, let's discuss some of our wins. First, we signed a seven-figure land over five years with a leading provider of dental care. This company's legacy monitoring just didn't cut and it contributed to delays with their migration to Azure. What's concerning to them was that customers noticed poor application performance and were complaining publicly on social media.
By adopting six Datadog products, they expect to find and fix the vast majority of incidents internally before their customers are affected. And in signing a five-year deal, this customer showed its confidence in Datadog as a long-term partner in their migration. Next, we signed a seven-figure land with a South American fintech company. By moving from basic built-in cloud monitoring, legacy tooling, and open-source tools to Datadog, this customer expects to significantly reduce costs by spending less on tooling, reducing time to resolution, and giving time back to engineers to innovate on their own products.
Next, we signed an eight-figure renewal over three years with a major American chain of convenience stores. With this expansion, Datadog will bring all aspects of this customer's tech systems into one platform, including their applications, hybrid cloud, networks, installed IoT technology, point-of-sale systems, self-serve kiosks, fuel pumps, and corporate infrastructure. This will free up employee time to focus on customer service, with expectations to save millions of dollars annually. This customer plans to use six Datadog products, replacing three commercial observability tools.
Next, we signed a seven-figure expansion with a major U.S. federal agency. When we first started working with this customer a year ago, Datadog was approved for a limited subset of programs. But as we have demonstrated value and gained internal adoption, this customer is now deploying Datadog across the entire agency.
They have adopted six Datadog products and, by doing so, consolidated out of seven tools. Next, we signed a seven-figure expansion with a Fortune 500 industrial company. This customer was concerned with out-of-control costs with its legacy log management product and was using a dozen different tools. And when they began using Datadog, they noticed far fewer support tickets submitted to their reliability team.
By growing usage with Datadog and expanding to seven products, this customer expects to deliver better service while saving time and reducing costs. And last, we signed a seven-figure expansion with a software business that is part of a tech hyperscaler. This longtime customer has used Datadog for infrastructure metrics and will now expand to adopt seven Datadog products. Datadog will be replacing its commercial APM tool, which wasn't well adopted by its engineers and led to inefficient troubleshooting, outages, and revenue impact.
Our support of OpenTelemetry, in particular, was key to their decision to expand with Datadog as it makes it possible for APM tracing to be democratized and use across their entire DevOps team. And that's it for this quarter's highlights. I'd like to thank our go-to-market teams for their strong execution in Q3. Before I turn it over to David for a financial review, let me reiterate our longer-term outlook.
As we have said throughout this period of cloud optimization and macro uncertainty, our long-term plans have remained unchanged. We continue to believe digital transformation and cloud migration are long-term secular growth drivers of our business and critical motions for every company to deliver value and competitive advantage. So, we continue to invest aggressively to broaden our platform, and we -- we aim -- sorry, and we aim to be our customers' mission-critical partners as they move to cloud and to modern DevSecOps. With that, I will turn it over to our CFO, David.
David Obstler -- Chief Financial Officer
Thanks, Olivier. Q3 revenue was $548 million, up 25% year over year and up 7% quarter over quarter. To dive into some of the drivers of this Q3 performance, first, regarding usage growth. We saw an improvement in usage growth in Q3 versus Q2.
The Q3 usage growth was more similar to Q1 and relatively steady throughout the quarter. We had a very healthy start to Q4 in October. While it is too early in the quarter to know for sure what will happen in the next couple of months, the trends we see in early Q4 are stronger than they've been for the past year. Regarding usage growth by customer size, we continue to see larger spending customer growth at a slower rate than smaller spending customers, but usage growth improved for all customer sizes in Q3 relative to Q2.
And as Olivier discussed, we believe there are signs that the optimization activity we've been seeing is moderating. Last quarter, we discussed a cohort of customers who started optimizing about a year ago. This cohort's usage has been stable -- was stable throughout Q3. As we look at our overall customer activity, we continue to see customers optimizing but with less impact than we experienced in Q2, contributing to our usage growth with existing customers improving in Q3 relative to Q2.
While we expect cost management to continue, we believe we are seeing moderation that is still present, but -- that -- but -- a moderation that's still present but is less intense and less widespread than we experienced in recent quarters. Geographically, we experienced similar sequential revenue growth in North America and in our international markets. And finally, as regards to retention metrics, our trailing 12-month net revenue retention was in line with our expectations and came in slightly below 120% in Q3. Our trailing 12-month gross revenue retention continues to be stable in the mid to high 90s, a sign of the mission-critical nature of our platform for our customers.
Moving on to our financial results. Billings were $607 million, up 30% year over year. Billings duration increased slightly year over year. Remaining performance obligations, or RPO, was 1.45 billion, up 54% year over year.
Current RPO growth was about 30% year over year. Over the past couple of quarters, we have seen an increasing preference from our customers to sign multiyear deals and our weighted average booking duration was up sequentially and year over year. We see continued interest in multiyear duration deals in our pipeline as customers seek longer-term strategic partnerships with us. We continue to believe that revenue is a better indicator of our business trends than billings and RPO as those can fluctuate relative to revenues based on the timing of invoice and the duration of customer contracts.
Now, let's review some of the key income statement results. Unless otherwise noted, all metrics are non-GAAP. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. Gross profit in the quarter was $451 million, representing a gross margin of 82.3%.
This compares to a gross margin of 81.3% last quarter and 79.7% in the year-ago quarter. As Olivier mentioned, we continue to experience efficiencies in cloud costs reflected in our cost of goods sold in the quarter as our engineering teams pursue cost savings and efficiency product -- projects. Our Q3 opex grew 17% year over year. This is a decline from 26% year-over-year growth last quarter.
We continue to execute on controlling costs given the uncertain environment. And Q3 operating income was $131 million for a 24% operating margin, up from 21% last quarter and above the 17% in the year-ago quarter. Our margins were higher than we expected in Q3 as our organic growth was higher than in Q2, while our internal optimization and cost management efforts were successful. Turning to the balance sheet and cash flow statements.
We ended the quarter with $2.3 billion in cash, cash equivalents, and marketable securities, and cash flow from operations was $153 million in the quarter. After taking into consideration capital expenditures and capitalized software, free cash flow was $138 million for a free cash flow margin of 25%. And now, for our outlook for the fourth quarter and for the full fiscal year 2023. A reminder, our guidance philosophy remains unchanged.
We base our guidance on trends observed in recent months and apply conservativism on these growth trends. For the fourth quarter, we expect revenues in -- to be in the range of $564 million to $568 million, which represents about 20% to 21% growth year over year. Non-GAAP operating income is expected to be in the range of $129 million to $133 million, and non-GAAP net income per share is expected to be $0.42 to $0.44 per share based on approximately 355 million weighted average diluted shares outstanding. For fiscal year 2023, we expect revenues to be in the range of $2.103 billion to $2.107 billion, which represents 26% year-over-year growth.
Non-GAAP operating income is expected to be in the range of $453 million to $457 million, and non-GAAP net income per share is expected to be in the range of $1.52 to $1.54 per share based on approximately 351 million weighted average diluted shares outstanding. Some additional notes for our guidance. First, we expect net interest income and net net interest and other income for fiscal 2023 to be approximately $95 million. We expect tax expense in the fiscal year to be $12 million to $14 million.
And finally, we expect capital expenditures and capitalized software together to be in the 3% to 4% of revenue range in fiscal 2023. And now, regarding 2024, it is too early for us to speak to 2024 revenue growth. We will digest the information we see over the next several months and give you our 2024 revenue guidance next quarter. As it relates to non-GAAP profitability, our operating income and margins were a little higher in Q3 than we targeted as usage growth improved from Q2 levels and we were successful with our cost efficiencies.
We expect continued strong execution on profitability in Q4. At the same time, we continue to be excited by our numerous long-term growth opportunities, and we have no shortage of investments to make and are confident in our ability to execute to strong ROI on those investments. As a result, while we are not providing 2024 margin guidance at this point, as always, we will balance our investments in long-term growth with margin discipline. And we will update you on that in more detail next quarter.
With that, we will open the call for questions. Operator, let's begin the Q&A.
Questions & Answers:
Operator
Thank you. [Operator instructions] Our first question comes from Mark Murphy of J.P. Morgan.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you very much and congratulations on a very strong performance. Olivier, I'm interested in your mention of 2.5% of ARR being driven by the native AI providers. Should we think of that mostly consisting of OpenAI, Llama, Anthropic, Cohere, etc., or are you meaning that as a slightly different reference? And can you just help us understand, is that up from close to zero a year ago? Then I have a quick follow-up.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. So, it's a number of companies that -- without naming anyone, so they tend to be model providers, but not just in -- on the language side, like model providers on the language, image side, like there's a number of different -- or video side. There's a lot of different types of companies there, even some "copilot-type" companies. The -- these customers all had revenue one year ago, but they've been growing a little bit faster than the rest of the customer base recently.
And the reason we included that in the script is we -- today, we see the usage growth related directly to AI coming mostly from these customers that provide models to others. Whereas we see broad usage of AI functionality across the customer base but at lower volumes, and it corresponds to the fact that for most customers or most enterprises, really, they're still in the early stages of developing and shipping AI applications. So, for now, the usage is concentrated among the model providers.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
OK. Yeah. That makes sense. And, Olivier, as a quick follow-up that you mentioned that log management is -- cost 500 million in ARR.
It's quite a milestone. You also mentioned the replacement of some legacy products. I'm curious if you see the acquisition of Splunk or any other acquisition activity in that market as a beneficial development? Just wondering, if Splunk customers or other companies that have been provided -- that have been acquired, excuse me, might be looking for any alternatives out there that are more modern and a more converged platform, and if you're seeing that in the pipeline.
Olivier Pomel -- Co-Founder and Chief Executive Officer
I -- we've seen that for a while now that new customers were looking for more integrated platforms, more modern offerings, things that were more cloud-first. And that's been one of the reasons of our success in new landing largely in brand-new applications, brand-new environment, brand-new cloud initiatives, and then, over time, consolidating our customers away from whatever they were using in the legacy. We don't think that it is going to change with the various acquisitions in tech privates that we've seen over the past quarter. So, we think we'll just see more of that over time.
I want to expand, by the way, on your first question. One interesting tidbit if you -- as I know many of you are trying to understand what the AI landscape is made of. Interestingly enough, the -- when we look at our cohort of customers that are -- that we consider to be AI-native and built largely on the AI and AI providers, they tend to be on different clouds. What we see is that a majority of these companies actually have a lot of their usage on AWS.
Though today, the larger part of the usage, the larger of these customers are on Azure. So, we see, really, several different adoption trends there that I think are interesting to the broader market.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you for that insight. Appreciate it.
Operator
Thank you. One moment for the next question. And our next question comes from Sanjit Singh of Morgan Stanley.
Sanjit Singh -- Morgan Stanley -- Analyst
Thank you for taking the questions. Olivier, the company's been innovating throughout this downturn quite aggressively across core observability, security, as well as AI. As we look into 2024 and we think about potential -- like a potential new product cycle for Datadog, what parts of the portfolio do you think could be contributors either in 2024 -- later in '24 and 2025? What are the things that you think the customers will be most receptive to? Just wanted to get a sense of where you think where -- the sort of timing of some of these new products that you've been delivering over the past couple of years.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, the -- you know, mathematically, the products that will contribute the most to the growth next year are going to be the product that have been here the longest and the core observability products. You know, we mentioned a billion in infrastructure, half a billion in APM, half a billion in logs. This is great. But still, a small fraction of these products can be at scale, and we are primarily going after that.
There's a number of other things we've been investing in and growing, and we're fairly happy with the way things are going, you know, in security, as I mentioned on the call, with some new packaging we've also rolled out, and some of the new initiatives that stand, I would say, a little bit left or right of what we've been doing in observability. This year, as you mentioned, was a year of innovation for us, as it was also a year of cost optimization for customers. It's not necessarily the best year to get products to very quick -- extremely quick revenue growth, but we've planted a lot of seeds that we think are going to deliver in the next couple of years.
Sanjit Singh -- Morgan Stanley -- Analyst
Yeah. That's great. And I had a sort of follow-up question on the sort of new packaging for the DevSecOps, the two new package. I was wondering if you could just give us, you know, a little bit of color around why you sort of went with the packaging approach and what you're trying to solve for.
Is it sort of, you know, trying to adopt the capabilities in a single integrated capability or is it also about sort of consolidated pricing, paying potentially one SKU -- one SKU price to consume all these capabilities? So, just love some detail around the motivation for these new packages.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes, a couple of things. So, the first one is we -- our security products have reached a certain level of maturity. And so, we think they're -- they can be brought into the conversation with a larger set of our customers as opposed to being something that our customers self-select to, which is what we started and how we start with most products, really. But also, we -- we're trying to bring those products in the same conversation as the initial adoption of DevOps basically as opposed to having to branch a conversation into, oh, hey, you know, you're doing operations and applications and can I interest you in some security with that, which would be a different conversation.
So, we -- so far, you know, the signs for this are encouraging. And again, we think it goes with the broader market trends, the adoption of DevSecOps and what customers actually want to do, and we think it's going to help them deliver better outcomes in security. But obviously, it's still -- we just rolled that out, so it's still too early to tell, you know, whether we got it right or whether we still need to tweak it a little bit.
Sanjit Singh -- Morgan Stanley -- Analyst
Appreciate the thoughts, Olivier. Thank you.
Operator
Thank you. One moment for our next question. And our next question comes from Raimo Lenschow of Barclays.
Raimo Lenschow -- Barclays -- Analyst
Hey. Thank you. Congrats from me as well. Olivier, like we're almost a year into this kind of current situation, and you saw -- Q2, obviously saw the digital natives that you commented just kind of having extra savings, but we're now back to kind of Q1 usage patterns.
What are you seeing in terms of changing behavior on customers? Not thinking in demand but more like how do you think about observability and how that potentially would change the world as we think about '24, '25 coming out of this in terms of kind of vendor consolidation, how to kind of build observability, etc.? And then I have one follow-up with David. Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
So, we think the trends of a vendor consolidation will continue. So, basically, customers are getting more sophisticated, more mature in their needs, they're getting further into the cloud. And as part of that, they will want to act less as integrators. And, you know, if they can use one platform instead of 12 different products, that's something that they all react very positively to, and we see that again and again as we expand into our customers.
You know, in terms of the broader trends, I think we -- it's too early to tell exactly, you know, what the next couple of quarters are going to be made of. You know, we say the -- it looks like we've hit an inflection point. It looks like there is a -- there's a lot less overhang now in terms of what needs to be optimized or could be optimized by customers. It looks like, also, optimization is more -- is less intense and less widespread across the customer base.
So, all that is positive. Now, you know, there's still quite a bit of uncertainty in the macro environment, you know, so I don't think we should get ahead of ourselves either and declare that it's the end of it for the foreseeable future. So, we feel positive about things, but it's still hard to know exactly what's going to happen in a couple of quarters from now. The -- from a buying behavior perspective, we've never seen customers really slow down in their intent to move to the cloud and the rate of adoption of new observability platforms and new products from us.
You know, we -- we've done well, and we scaled the new logo acquisition, we've scaled the new product actually. So, that has been a constant throughout the -- this optimization phase. In terms of the usage growth and customers scaling new workloads, I don't think we're back to the exuberant times of 2021, but maybe we're reverting back to the mean of what was happening before that.
Raimo Lenschow -- Barclays -- Analyst
OK. Makes sense. And if I can squeeze one quick one and, David, you talked -- we talked about opex, and opex growth in this quarter was lower than others. Should I read your comments about next year, and, you know, clearly, there is a big investment opportunity that opex growth like maybe wasn't quite where you wanted it to be? Just any comment there.
I know you can't guide.
David Obstler -- Chief Financial Officer
Yeah. I think as we talked about the movement of the top line because of consumption moves more quickly than we can adjust resources, so we've taken more of a optimization and cost prioritization this year, but we offset that. We do think there's a very large opportunity. So, we are expecting to increase the level of investment.
But as we say that, we've always been looking at the balance between maximizing the top-line growth with producing profit and are going to continue to operate on that, taking advantage of the long-term opportunities.
Raimo Lenschow -- Barclays -- Analyst
OK. Perfect. Thank you.
David Obstler -- Chief Financial Officer
Thanks.
Operator
Thank you. One moment for our next question. And our next question comes from Karl Keirstead of UBS.
Karl Keirstead -- UBS -- Analyst
Oh, thanks so much. Maybe, David, I'll direct this to you. I was intrigued by your comment that the fourth quarter or the month of October was off to a healthy start, understanding that that's just a month. But just curious if you could unpack that a little bit largely because investors on this call, we are picking up signals from other tech firms that would suggest a still very tough macro environment or maybe even slightly tougher.
So, I'm just curious where you might be seeing pockets of strength. If you could add a little more color. Thanks so much.
David Obstler -- Chief Financial Officer
Yeah. I think it's just essentially what we try to do in the last couple of quarters is to caution everybody that we still expect that there will be continued optimization and cost management, but give everyone a flavor for the direction. And what we're seeing -- as I think Olivier and I mentioned, we're seeing the continuation of that but at a more moderated level, and that was across the customer base. So, we're seeing essentially clients leaning a little more into growth.
Again, early in the quarter, too early to call it. But, you know, the trends seem to be a moderation of the previous cost management and optimization, although it's still continuing.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. And just to add color to that. So, yes, we had a healthy start to Q4. We see trends that are not as strong as they've been for the past year in terms of what happened early in the quarter.
That being said, Q4 is a tough quarter to call because it has fairly high seasonality. There is a -- typically a drop of usage in the -- at the very end of the quarter with the holidays. And that drop in different years has been -- can be more or less pronounced. Last year, in particular, it was very pronounced.
So, we're -- we -- we've given guidance with all that in mind basically.
David Obstler -- Chief Financial Officer
And let me just add because this question has been talked about. Like last quarter, we didn't take the strength of October into account. We took the exact same guidance approach, which was to take the weighted average historical trends and discount, apply conservativism. So, like last quarter, we had said that the first quarter looked a little more stable.
We didn't take that into consideration in our guidance, and we have stuck to the exact same guidance methodology, which is to act with that conservatism.
Olivier Pomel -- Co-Founder and Chief Executive Officer
One last thing, too, just to comment on the -- because I know a lot of you are trying to understand how we think with respect to the large cloud providers and how our trends correspond to theirs. Remember that we -- while our trends are similar in the long run, we -- in the short term, there can be differences of timing in terms of when we're going to see certain effects, when they're going to see them. We have a different mix. We have a mix of cloud providers, not exactly the same as a broader market, and a different mix of customers and geographies than the individual cloud providers as well.
So, things are not exactly 1-to-1 there.
Karl Keirstead -- UBS -- Analyst
OK. Very helpful and congrats on the nice results.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thank you.
Operator
Thank you. One moment for our next question. And our next question comes from Matt Hedberg of RBC.
Matt Hedberg -- RBC Capital Markets -- Analyst
Great. Thanks for taking my question, guys, and I'll offer my congrats as well. You know, Oli, I wanted to double-click on some of the improved usage trends. Can you provide us with an overview on how some of your large strategic customers think about optimization as really part of an ongoing IT spending strategy, coupled with what's driving some of this increased usage? I guess I'm wondering, have IT executives, from your perspective, changed their view on the level of monitoring needed with new levels of workload?
Olivier Pomel -- Co-Founder and Chief Executive Officer
No. So, they didn't change their view on the level of monitoring needed. I think they tried to save money wherever they could save it. By far, the biggest area they can save in their cloud infrastructure is their cloud bill itself.
As a reminder, you know, when customers pay $1 to us, you know, they pay $10 or $20 to their cloud provider. So, there's a lot more savings to be had there. But these savings flow down to us. You know, we charge commensurate to the size of our customer's infrastructure.
They also try to save what they could in the observability specifically. And usually, there's always a bit of fat you can cut. You can always sample certain things a bit more. You can retain your logs a bit less.
You can remove some of the debug logging. Like things like that that can drive your costs up but don't necessarily generate a ton of value. And that's the behavior, by the way, that we see all the time. Like we see it for most customers, you know, once a year, maybe twice a year, sometimes, usually before contract renegotiations and things like that, where they try to understand what it is they're going to need for the next two or three years.
The big difference over the past year has been that everybody's been doing that at once and multiple times. It was really an environment where everyone was feeling very uncertain about the economy and needed to save money very quickly. So, we expect optimization to continue as part of this macro trend in the near future. And in perpetuity after that, we'll have that continuous cycle of customers optimizing, reducing what they can reduce, and then growing workloads and maybe creating a little bit more mass over time as well, and then optimizing again on a regular basis, though not everyone at the same time.
Matt Hedberg -- RBC Capital Markets -- Analyst
Super. Thanks a lot, guys. Great color, Oli. Congrats again.
Operator
Thank you. One moment for our next question. And our next question comes from Fatima Boolani of Citi.
Fatima Boolani -- Citi -- Analyst
Good morning. Thank you for taking my questions. One for Oli and one for Dave, if I may. Olivier, the packaging and pricing motions that you discussed for the DevSecOps solution set, I wanted to zoom out generally a little bit and knowing what you know about how buying behavior and procurement behavior for a lot of your customers has changed over the course of this past year, I was wondering if you can kind of shed light on how you're thinking about an ELA- or EAA-type selling motion.
I know it's something that historically you've been averse to, but I'm curious how you're thinking about it in sort of the current day and age, if you will, in terms of how your customers have changed the way they're buying and deploying. And then for David, just wanted to get a sense of what expectations on net retention rates are built into your guidance? And in other words, should this be the quarter that we see a trough in expansion rates or net retention rates as you're thinking about it in the guidance? Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. So, on the ELA, so in general, look, we're always very open to new approaches in packaging. We try to see how things are consumed from the customer side and what makes the most sense to them. Now, ELA and things are very difficult for -- very inappropriate for a business like ours.
One, because we are fully SaaS-based and there's a very, very large volume dimension to absolutely everything we do for our customers, so it's very, very hard to provide a one price fits all for them. We also -- philosophically, we like to have -- to get signal from what customers are willing or not willing to pay for, and that drives a lot of our product innovation. We get a lot of good news this way because customers want to buy products, they scale them a lot. We also get bad news.
We get customers who don't find there is enough value in a given product or think it should be doing more or think it should be doing things differently or think that the packaging doesn't make sense. And we like to have that. The reason why we simplified the pricing there and we created those new SKUs is really to try and change the motion a little bit and integrate further the observability in the security side and make it easier to bring security into the conversation for these customers. But again, so far, we have some early evidence that it's -- it seems to resonate.
But it's way, way, way too early to call it. We need two or three quarters of that to understand the implications of the new packaging.
David Obstler -- Chief Financial Officer
Yeah. And as it relates to net retention, we do not provide guidance, but just the way that we think about it and some of the drivers, we don't provide guidance, sorry, on net retention per se. But essentially, what we've said was that Q3 organic growth was similar to what it was in Q1. And we had said previously that in Q2 and Q3 of last year, we had lower than before, but higher than that of Q1 -- Q4, Q1, and now Q3.
So, it really is a matter of lapping those comps. The comps have gotten increasingly easy to last lap. And we will let everybody know, if we do produce an organic growth that's higher this Q4 than it was in Q4 last year, we will have in this period trough in net retention, and it will begin to head up. So, that's sort of how we think about it.
In terms of our guidance, that's a different story. As we said, we provide conservativism. So, what's implicit in the guidance is something worse than we're experiencing, which would imply a lower organic growth. But in terms of the business trends themselves, it's really a matter of do we lap the Q4 and produce a higher organic growth in this -- in the Q4 coming up than we had in the Q4 last year.
Fatima Boolani -- Citi -- Analyst
Thank you. I appreciate the detail.
Operator
Thank you. One moment for the next question. And our next question comes from Brent Thill of Jefferies.
Brent Thill -- Jefferies -- Analyst
Hi. Good morning. David, I was curious if you could focus on the enterprise traction and what you're seeing. And maybe for Olivier and David, I guess on the customer add, you're at 700 and that's lower than your normal cruise altitude of 1,000-plus per quarter.
Can you just talk about is that number being misled because the enterprise traction is higher and that number is, therefore, going to be lower? Could you just drive into that a little bit? Thanks.
David Obstler -- Chief Financial Officer
Yeah. As a reminder, we have a broad range of customers as the long tail and, similar to what we discussed last quarter, the gross number of adds. So, the accumulation and in the enterprise, it was quite strong. It was very similar to what we've experienced.
And we have a very small tail that has a larger attrition rate but doesn't have a lot of dollars attached to it. So, the trends continue, which is very strong, as Olivier mentioned, new logo accumulation, both in terms of number of new logos and ARR, and that was true, and Olivier can talk about the enterprise side of it, offset by this tail that has very little dollars associated with it.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. And just to comment on that, remember, the bottom half of our customer is -- represent around 1% of our revenue, and the lower increase in customer number comes from the very, very low end, which is customers that pay us in the tens of dollars a month. And those customers, we're getting a little bit less of those to start with. I think that's part of the economic environment.
And the churn is a little bit higher than it used to be there, too. So, that's why these numbers will be depressed right now. That being said, we had a record number of new logos over $100,000. We're doing very well in the enterprise.
We're doing very well in the new market also. And we're also doing very well at the high end of the SMB. So, we are very happy with all of the segments we are targeting with our sales and marketing motions today. On the enterprise side, we actually mentioned a few of those very exciting contracts on the call.
We get really, really excited when we see very traditional enterprises moving to the cloud and adopting us and consolidating on us, you know, wall-to-wall. You know, David is -- we considered -- in the room, David is smiling because he's excited when he sees the dental care companies. He's excited when he sees the network of convenience stores where we even instrument their fuel pumps, you know. So, these are great deployment -- great developments for us, and we're leaning hard into that.
Operator
Thank you. One moment for our next question. And our next question comes from Kash Rangan of Goldman Sachs.
Kash Rangan -- Goldman Sachs -- Analyst
Hello. Thank you very much. Good to see you. I'm sure that you're all smiling at your results.
Two things. One is with respect to LLM monitoring, which was demoed at the DASH conference, which was, I thought, absolutely fascinating. I know you quantified, Oli, 2.5 percentage points of growth coming from generative AI workloads. How do we think about the revenue opportunity for LLM monitoring that it's at an early stage? And I also have a second question, slightly more controversial that when and if we run into customers that think they're spending -- their bills for Datadog are getting to be a little bit on the larger side, that is a sign of success.
But how do you ensure that that success does not work against the company, that it opens up the door for price competition from others and whatnot? Thank you so much and congrats.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. On the LLM upside, I think it's too early to tell how much the revenue opportunity there is in the tooling specific to the LLM ops. You know, the -- when you look -- when you think of the whole spectrum of tools, the closer you get to the developer side, the harder it is to monetize, and the further you get toward operations and infrastructure, the easier it is to monetize. You can ship things that are very useful and very accretive to our platform because that gets you a lot of users, a lot of attention, and a lot of stickiness that are harder to monetize.
So, we'll see where on the spectrum that is. What we know, though, is that the broader generative AI up and down the stack from the components themselves, the GPUs, all the way up to the models and the various things that are used to orchestrate them and store the data and move the data around, all of that is going to generate a lot of opportunity for us. We said, right now, it's concentrated among the AI-native, largely model providers, but we see that it's going to broaden and concern a lot more of our customers down the road. And your second question was, you know, so when we grow a lot, we are very successful with some customers, how do we not create a long-term issue where they spend a lot of money and that causes competition? Look, it's a great situation to be in to have customers spend a lot of money on you and have to justify that value over time.
I think it's very healthy. I think that, again, that's what drives innovation, great product development. And all of this is to make sure we have a healthy partnership with customers every single step of the way. And, you know, we -- again, we charge them an order of magnitude less than what they spend for their cloud infrastructure, maybe two orders of magnitude less than what they spend on their R&D.
And so, we think we should be in a position of leverage where if we do our jobs right, we show a lot of value for customers, we save them a lot of money, we make them a lot faster, and we help them generate a lot more revenue. So, that's how we see things and how we hold ourselves to.
Operator
Thank you. One moment for our next question. And our next question comes from Alex Zukin of Wolfe Research.
Alex Zukin -- Wolfe Research -- Analyst
Hey, guys. Thanks for taking the question and congrats on a great quarter. Maybe just two quick ones for me. Olivier, you mentioned the federal opportunity or you mentioned the federal activity in the quarter with a deal that was pretty interesting.
That's something that we picked up as an area of excitement for you guys. Can you maybe just talk about what the opportunity there is over the next 12 months and beyond and maybe stack rank it as a priority for you guys? And then I've got a quick follow-up.
Olivier Pomel -- Co-Founder and Chief Executive Officer
I -- sorry, I missed the domain you're talking about, sorry.
David Obstler -- Chief Financial Officer
Fed.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Oh, fed. So, that's definitely an area of investment for us. It's a -- look, we're happy with two things. Happy with the fact that we're moving further and further into the various levels of certifications needed.
We're happy with the early success with some agencies where we are spreading and assisting government agencies and now getting to call some of those wall-to-wall. But we are only scratching the surface of what we can do. In fact -- and there's a lot more we need to do. Some of it on the certification side and the product side and some of it on the go-to-market side and making sure we have all of the parts of the machine working.
So, we -- I expect that to be one of the main areas of investment on the go-to-market side next year in terms of new markets we're going after.
Alex Zukin -- Wolfe Research -- Analyst
OK. And then maybe on the -- back on the AI question. I guess maybe just can you drill a little bit deeper, within those AI-native companies, the criticality of their data [Inaudible] usage, meaning are you seeing something different where in a world where these applications become more prevalent, there's the opportunity to kind of expand wallet share as observability becomes even more important? And how should we think about the growth opportunities from those types of workloads in either 2024 or 2025?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. So, you know, in general, the more complexity there is, the more useful observability is, the more you shift value from writing code to actually understanding it and observing it. You know, so to caricature, like if you only -- if you spend a whole year writing five lines of code that are really, really deep, you actually know those five lines really well. Maybe you don't need observability for it because you'll see -- you'll understand exactly how they work and what's going on with them.
On the other hand, if thanks to all the major advances of technology and all of the various open source and AI and, you know, you can just very quickly generate thousands of lines of code, ship them, and start operating them, you actually have no idea how these work, what they do, and you'll need a lot of tooling in observability to actually understand that and keep track of that and secure it and do everything you need to do with it over time. So, we think that, overall, these increases in productivity are going to favor observability. In terms of the future growth of AI, look, I think like everyone, we're trying to guess how transformative it's going to be. Looks like it's going to be pretty transformative, you know, if you judge from just internally how much of that technology we are adopting and how much of a productivity impact it seems to be having.
So, I -- again, today, we only see a tiny, tiny bit of it, which is early adoption by model providers and a lot of companies that are trying to scale up and experiment and figure out how it applies to their businesses and see what they can ship to use the technology. But we think it's going to drive a lot of growth in the years to come.
Alex Zukin -- Wolfe Research -- Analyst
Thank you, guys.
Operator
Thank you. One moment for our next question. And our next question comes from Jake Roberge of William Blair.
Jake Roberge -- William Blair and Company -- Analyst
Hey. Thanks for taking the questions, and I'll echo my congrats on the great results. Olivier, you called out the 2.5 points from AI-native customers a few times, but you've also said that the broader customer base should start adding AI workloads to your platform over time. When do you think that actually takes place when the broader customer base starts to impact that AI growth in more earnest?
Olivier Pomel -- Co-Founder and Chief Executive Officer
We don't know and I think it's too early to tell. For one part, there are some uncertainty in terms of these customers having to figure out what it is they're going to ship to their own customers. I think everybody is trying to learn that right now and experimenting. And -- but the other part is also that, right now, the innovation is largely concentrated among the model providers.
And so, it's rational right now for most customers to rely on those instead of deploying their own infrastructure. Again, we think it's likely going to change. We see a lot of demand and interest in other ways to host models and run models and custom models and things like that. But today, that's the -- these are the trends in the market today basically.
Jake Roberge -- William Blair and Company -- Analyst
OK. Helpful. And then just a follow up on the optimization front, it sounds like the early optimizers took about a year to complete those initiatives, but what type of timelines are you seeing from kind of the second or third layer of customers that started their optimizations later in the game? Have those also started to stabilize given they weren't as large as the early optimizers? Just trying to kind of parse out the customer base there.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. So, we don't really know for sure. That's also why we're careful not to call an end to this forever, you know. The -- I would say there's -- for -- if -- for customers that are not part of this initial cohort, there's less of an overhang.
You know, so the customers that were the early optimizers and that had the most acute optimizations tended to be cloud-native, so all in on the cloud, very heavy on IT spend, in general, and the -- substantially all of their IT being in the cloud. These tended to be also companies that were fairly high growth but low profitability that needed to pivot their financials over a fairly short amount of time. I think if you look at the rest of the customer base, they're mostly not in that situation, so we expect the behavior to be different.
Operator
Thank you. This concludes the question-and-answer session. I would now like to turn it back to CEO, Olivier Pomel, for closing remarks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thank you very much. I want to thank everyone for attending the call today. I also want to take a minute to thank our customers for their trust. We know these are trying times with all the macro uncertainty, and we thank them for their trust.
I also want to thank our employees, all the Datadogs for a quarter of hard work and great successes. And on these good words, we'll all get back to work and get busy for the end of the year. So, thank you very much.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Yuka Broderick -- Vice President, Investor Relations
Olivier Pomel -- Co-Founder and Chief Executive Officer
David Obstler -- Chief Financial Officer
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Sanjit Singh -- Morgan Stanley -- Analyst
Raimo Lenschow -- Barclays -- Analyst
Karl Keirstead -- UBS -- Analyst
Matt Hedberg -- RBC Capital Markets -- Analyst
Fatima Boolani -- Citi -- Analyst
Brent Thill -- Jefferies -- Analyst
Kash Rangan -- Goldman Sachs -- Analyst
Alex Zukin -- Wolfe Research -- Analyst
Jake Roberge -- William Blair and Company -- Analyst
More DDOG analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) Q3 2023 Earnings Call Nov 07, 2023, 8:00 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Vice President, Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Raimo Lenschow -- Barclays -- Analyst Karl Keirstead -- UBS -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Alex Zukin -- Wolfe Research -- Analyst Jake Roberge -- William Blair and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. And the use of our product has played a large role in delivering cost, performance, and efficiency improvements, optimizing our own cloud usage and ultimately resulting in expansion of our gross margins in recent quarters.
|
Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Vice President, Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Raimo Lenschow -- Barclays -- Analyst Karl Keirstead -- UBS -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Alex Zukin -- Wolfe Research -- Analyst Jake Roberge -- William Blair and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2023 Earnings Call Nov 07, 2023, 8:00 a.m. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the fourth quarter and the fiscal year 2023 and related notes and assumptions, our gross margins and operating margins, our product capabilities, our ability to capitalize on market opportunities, and usage optimization trends.
|
Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Vice President, Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Raimo Lenschow -- Barclays -- Analyst Karl Keirstead -- UBS -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Alex Zukin -- Wolfe Research -- Analyst Jake Roberge -- William Blair and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2023 Earnings Call Nov 07, 2023, 8:00 a.m. As of the end of Q3, 82% of customers were using two or more products, up from 80% a year ago; 46% of customers were using four or more products, up from 40% a year ago; and 21% of our customers were using six or more products, up from 16% last year.
|
Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Vice President, Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Raimo Lenschow -- Barclays -- Analyst Karl Keirstead -- UBS -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Alex Zukin -- Wolfe Research -- Analyst Jake Roberge -- William Blair and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2023 Earnings Call Nov 07, 2023, 8:00 a.m. First, with infrastructure DevSecOps, our customers can observe and secure their entire cloud environment in one package.
|
d14233bc-ea6d-4871-9b5d-1d0812011356
|
718003.0
|
2023-11-07 00:00:00 UTC
|
Datadog surges after raising annual forecast on robust bookings
|
DDOG
|
https://www.nasdaq.com/articles/datadog-surges-after-raising-annual-forecast-on-robust-bookings
|
nan
|
nan
|
Updates share movement with milestone
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats.
Shares of the software solutions provider soared 29.9% and were on track for the biggest one-day percentage gain since their listing.
With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog.
The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Analysts were expecting $1.33 per share, according to LSEG data.
It also raised its full-year revenue forecast to the range of $2.10 billion to $2.11 billion, from its prior outlook of $2.05 billion to $2.06 billion.
Analysts expect Datadog to benefit from opportunities around cyber security and artificial intelligence with higher demand for development operations software.
The company's revenue for the third quarter stood at $548 million, beating estimates of $524.1 million.
Quarterly adjusted profit of 45 cents per share also topped expectations.
Earlier in October, internet companies Google, Amazon and Cloudflare had flagged the internet's largest-known denial of service attack that could easily cause widespread disruption. The firms had urged businesses to update their web servers to ensure that they do not remain vulnerable.
Datadog's total number of new and existing customers rose 20% to 3,130, with an annual recurring revenue of $100,000 or more as of Sept. 30.
(Reporting by Yamini Kalia in Bengaluru; Editing by Devika Syamnath and Shweta Agarwal)
((Yamini.Kalia@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Updates share movement with milestone Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog. Analysts expect Datadog to benefit from opportunities around cyber security and artificial intelligence with higher demand for development operations software.
|
Updates share movement with milestone Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Quarterly adjusted profit of 45 cents per share also topped expectations.
|
Updates share movement with milestone Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34.
|
Updates share movement with milestone Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Quarterly adjusted profit of 45 cents per share also topped expectations.
|
d707e02c-610b-472e-91a4-3b401d74963c
|
718004.0
|
2023-11-07 00:00:00 UTC
|
Tuesday's ETF Movers: WCLD, OIH
|
DDOG
|
https://www.nasdaq.com/articles/tuesdays-etf-movers%3A-wcld-oih
|
nan
|
nan
|
In trading on Tuesday, the WisdomTree Cloud Computing Fund ETF is outperforming other ETFs, up about 3.6% on the day. Components of that ETF showing particular strength include shares of Datadog, up about 29.2% and shares of Mongodb, up about 13.7% on the day.
And underperforming other ETFs today is the Oil Services ETF, off about 3.4% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of Propetro Holding, lower by about 6.2%, and shares of RES, lower by about 5.6% on the day.
VIDEO: Tuesday's ETF Movers: WCLD, OIH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, the WisdomTree Cloud Computing Fund ETF is outperforming other ETFs, up about 3.6% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of Propetro Holding, lower by about 6.2%, and shares of RES, lower by about 5.6% on the day. VIDEO: Tuesday's ETF Movers: WCLD, OIH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Components of that ETF showing particular strength include shares of Datadog, up about 29.2% and shares of Mongodb, up about 13.7% on the day. Among components of that ETF with the weakest showing on Tuesday were shares of Propetro Holding, lower by about 6.2%, and shares of RES, lower by about 5.6% on the day. VIDEO: Tuesday's ETF Movers: WCLD, OIH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, the WisdomTree Cloud Computing Fund ETF is outperforming other ETFs, up about 3.6% on the day. And underperforming other ETFs today is the Oil Services ETF, off about 3.4% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of Propetro Holding, lower by about 6.2%, and shares of RES, lower by about 5.6% on the day.
|
In trading on Tuesday, the WisdomTree Cloud Computing Fund ETF is outperforming other ETFs, up about 3.6% on the day. Components of that ETF showing particular strength include shares of Datadog, up about 29.2% and shares of Mongodb, up about 13.7% on the day. And underperforming other ETFs today is the Oil Services ETF, off about 3.4% in Tuesday afternoon trading.
|
df5e2add-3c4d-44db-b31b-a6810b5ded12
|
718005.0
|
2023-11-07 00:00:00 UTC
|
Wall St regains ground on megacap boost; Fed speakers in focus
|
DDOG
|
https://www.nasdaq.com/articles/wall-st-regains-ground-on-megacap-boost-fed-speakers-in-focus
|
nan
|
nan
|
By Amruta Khandekar and Shristi Achar A
Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path.
Treasury yields slipped on Tuesday ahead of large bond auctions this week, with the benchmark ten-year Treasury yield US10YT=RR last at 4.5892%.
While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
Federal Reserve Bank of Minneapolis President Neel Kashkari doused hopes of early rate cuts, saying the central bank may have to do more to bring inflation back down to its 2% target.
Chicago Fed chief Austan Goolsbee acknowledged the downward trend in inflation but maintained price pressures are not yet over.
Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers.
"Originally, higher rates placed concern on the multiples of these stocks (but) it's shifting now to the idea that they may be a defensive place to be in this market. They have fairly bulletproof balance sheets," said Rick Meckler, partner at Cherry Lane Investments, in New Vernon, New Jersey.
Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains.
Energy stocks .SPNY were the top decliners, down 2.4% as crude prices fell on mixed economic data from China. O/R
Market participants will parse commentary from New York Fed President John Williams later on Tuesday for more clues on the central bank's interest rate path. Fed Chair Jerome Powell's remarks will grab the spotlight on Wednesday.
The S&P 500 .SPX is set for its seventh straight day in the green, while the Nasdaq .IXIC is on track to rise for the eighth day in a row.
Despite the recent gains, uncertainty about the timing of rate cuts and the prospects of a recession have cast a doubt on whether there could be a year-end rally.
"Investors are not yet ready to completely jump back in. We're more likely to have a mixed market where you see sector rotation than we are to see a very significant year-end rally," Meckler said.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 93.99 points, or 0.28%, at 34,189.85, the S&P 500 .SPX was up 16.50 points, or 0.38%, at 4,382.48, and the Nasdaq Composite .IXIC was up 131.18 points, or 0.97%, at 13,649.96.
Uber TechnologiesUBER.N rose 3.5% as the ride-hailing firmprojected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers for a 1.15-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and three new lows, while the Nasdaq recorded 29 new highs and 87 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains.
|
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
|
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
|
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
|
386b1b6e-5b68-4f5d-9e66-3bdc84ef4136
|
718006.0
|
2023-11-07 00:00:00 UTC
|
Tuesday Sector Leaders: Information Technology Services, Application Software Stocks
|
DDOG
|
https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-information-technology-services-application-software-stocks
|
nan
|
nan
|
In trading on Tuesday, information technology services shares were relative leaders, up on the day by about 2.7%. Leading the group were shares of Datadog, up about 29.1% and shares of Unisys up about 21.4% on the day.
Also showing relative strength are application software shares, up on the day by about 2% as a group, led by Matterport, trading up by about 23.6% and Alteryx, trading higher by about 21.3% on Tuesday.
VIDEO: Tuesday Sector Leaders: Information Technology Services, Application Software Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, information technology services shares were relative leaders, up on the day by about 2.7%. Also showing relative strength are application software shares, up on the day by about 2% as a group, led by Matterport, trading up by about 23.6% and Alteryx, trading higher by about 21.3% on Tuesday. VIDEO: Tuesday Sector Leaders: Information Technology Services, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, information technology services shares were relative leaders, up on the day by about 2.7%. Also showing relative strength are application software shares, up on the day by about 2% as a group, led by Matterport, trading up by about 23.6% and Alteryx, trading higher by about 21.3% on Tuesday. VIDEO: Tuesday Sector Leaders: Information Technology Services, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, information technology services shares were relative leaders, up on the day by about 2.7%. Also showing relative strength are application software shares, up on the day by about 2% as a group, led by Matterport, trading up by about 23.6% and Alteryx, trading higher by about 21.3% on Tuesday. VIDEO: Tuesday Sector Leaders: Information Technology Services, Application Software Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, information technology services shares were relative leaders, up on the day by about 2.7%. Leading the group were shares of Datadog, up about 29.1% and shares of Unisys up about 21.4% on the day. Also showing relative strength are application software shares, up on the day by about 2% as a group, led by Matterport, trading up by about 23.6% and Alteryx, trading higher by about 21.3% on Tuesday.
|
dc9b7d93-7a9d-44de-b830-4124ff1c1bc3
|
718007.0
|
2023-11-07 00:00:00 UTC
|
Why Datadog Stock Soared as Much as 30% Higher on Tuesday
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-stock-soared-as-much-as-30-higher-on-tuesday
|
nan
|
nan
|
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 306%. As of 10:28 a.m. ET, the stock was still up 29.4%.
The catalyst that sent the cloud monitoring, analytics, and security company soaring was financial results that proved beyond the shadow of a doubt that its rebound was well and truly underway.
Why Datadog stock was running higher
For the third quarter, Datadog reported revenue of $547.5 million, up 25% year over year, resulting in non-GAAP earnings per share (EPS) of $0.45. This sailed past expectations, as analysts' consensus estimates were calling for $524.2 million and EPS of $0.34.
Helping fuel the robust results was strong growth of those customers spending $100,000 per year in annual recurring revenue. Their number grew to 3,130, up 20%.
At the same time, operating cash flow and free-cash-flow generation both accelerated, increasing 83% and 105%, respectively, compared to the year-ago period. This shows that it's only a matter of time before Datadog generates GAAP profitability.
Is the stock a buy?
Management expects Datadog's robust growth to continue. Management is guiding for revenue of about $566 million, up roughly 21% year over year at the midpoint of its guidance. The company is also forecasting adjusted EPS of about $0.43. For context, this is well ahead of Wall Street's expectations, as analysts' consensus estimates were calling for revenue of $543 million and adjusted EPS of $0.35.
Investors had been concerned about the slowing adoption -- or the trend toward optimization -- in the cloud computing space as economic uncertainty remains. Some feared this secular headwind would weigh on Datadog's results, but the company's strong performance and better-than-expected growth helped put those concerns to rest.
Datadog stock has never been cheap, currently selling for 13 times next year's sales after today's spike. That said, the stock is still near its cheapest valuation ever and well below its three-year average of 26.5. This gives astute investors the opportunity to buy Datadog stock on sale before the price surges even further.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Danny Vena has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 306%. The catalyst that sent the cloud monitoring, analytics, and security company soaring was financial results that proved beyond the shadow of a doubt that its rebound was well and truly underway. For context, this is well ahead of Wall Street's expectations, as analysts' consensus estimates were calling for revenue of $543 million and adjusted EPS of $0.35.
|
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 306%. This sailed past expectations, as analysts' consensus estimates were calling for $524.2 million and EPS of $0.34. Management expects Datadog's robust growth to continue.
|
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 306%. Why Datadog stock was running higher For the third quarter, Datadog reported revenue of $547.5 million, up 25% year over year, resulting in non-GAAP earnings per share (EPS) of $0.45. 10 stocks we like better than Datadog When our analyst team has a stock tip, it can pay to listen.
|
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 306%. ET, the stock was still up 29.4%. Why Datadog stock was running higher For the third quarter, Datadog reported revenue of $547.5 million, up 25% year over year, resulting in non-GAAP earnings per share (EPS) of $0.45.
|
f3bc63d7-f2f7-4388-abae-baa80cb278cc
|
718008.0
|
2023-11-07 00:00:00 UTC
|
Nasdaq 100 Movers: CEG, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ceg-ddog
|
nan
|
nan
|
In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 29.4%. Year to date, Datadog registers a 40.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is Constellation Energy, trading down 4.1%. Constellation Energy is showing a gain of 38.8% looking at the year to date performance.
Two other components making moves today are Baker Hughes, trading down 3.1%, and GlobalFoundries, trading up 7.2% on the day.
VIDEO: Nasdaq 100 Movers: CEG, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Nasdaq 100 Movers: CEG, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Constellation Energy, trading down 4.1%. Constellation Energy is showing a gain of 38.8% looking at the year to date performance.
|
VIDEO: Nasdaq 100 Movers: CEG, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 29.4%. Year to date, Datadog registers a 40.0% gain.
|
VIDEO: Nasdaq 100 Movers: CEG, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 29.4%. And the worst performing Nasdaq 100 component thus far on the day is Constellation Energy, trading down 4.1%.
|
VIDEO: Nasdaq 100 Movers: CEG, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Constellation Energy, trading down 4.1%. Constellation Energy is showing a gain of 38.8% looking at the year to date performance.
|
6ddb84cd-c01c-4e98-90ab-ba9946a27cb9
|
718009.0
|
2023-11-07 00:00:00 UTC
|
US STOCKS-S&P 500, Dow subdued as rate cut optimism wanes
|
DDOG
|
https://www.nasdaq.com/articles/us-stocks-sp-500-dow-subdued-as-rate-cut-optimism-wanes
|
nan
|
nan
|
By Amruta Khandekar and Shristi Achar A
Nov 7 (Reuters) - The S&P 500 and Dow Jones were subdued on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials.
After a stellar rally last week driven by tumbling Treasury yields, equities have lost momentum in recent days as investors await commentary by Fed policymakers for any signs of a pushback against expectations that U.S. interest rates have peaked.
Federal Reserve Bank of Minneapolis President Neel Kashkari doused hopes of early rate cuts, saying the central bank may have to do more to bring inflation back down to its 2% target.
"We will be higher for longer. We think that the first rate cut will take place not in the second quarter of next year, but in the third quarter of next year," said Sam Stovall, chief investment strategist of CFRA Research.
Further pressuring stocks, U.S. Treasury yields rebounded from multi-week lows in the previous session, ahead of large bond auctions this week that could determine whether there is enough demand for U.S. government debt.
The benchmark ten-year Treasury yield US10YT=RR was last at 4.5955%, slightly lower than Monday's level.
Market participants will parse commentary from Fed Board Governor Christopher Waller and New York Fed President John Williams later on Tuesday for more clues on the central bank's interest rate path. Fed Chair Jerome Powell's remarks will grab the spotlight on Wednesday.
Uncertainty about the timing of potential rate cuts and some dismal corporate forecasts for the fourth quarter have cast a doubt on whether there could be a year-end rally for stocks.
"History tells us that Q4 has always been positive. If we don't get an advance toward the end of the year, then that implies that investors believe that something worse is likely to occur in the coming calendar year," Stovall said.
Among the 11 major S&P 500 sectors, energy .SPNY led declines tracking a 2% fall in crude prices on mixed economic data from China. O/R
At 9:39 a.m. ET, the Dow Jones Industrial Average .DJI was down 53.13 points, or 0.16%, at 34,042.73, the S&P 500 .SPX was down 9.47 points, or 0.22%, at 4,356.51, and the Nasdaq Composite .IXIC was up 3.47 points, or 0.03%, at 13,522.25.
Uber TechnologiesUBER.N fell 1.9% as the ride-hailing firm missed Wall Street's profit target for the July-September period.
Cushioning the tech-heavy Nasdaq .IXIC, DatadogDDOG.O surged 25.0% on beating estimates for third-quarter results and raising its forecast for annual adjusted profit and revenue.
Other cloud firms including Mongodb MDB.O and Snowflake SNOW.N also added 11.0% and 8.1% respectively.
Declining issues outnumbered advancers for a 2.30-to-1 ratio on the NYSE and for a 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 12 new highs and 48 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cushioning the tech-heavy Nasdaq .IXIC, DatadogDDOG.O surged 25.0% on beating estimates for third-quarter results and raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - The S&P 500 and Dow Jones were subdued on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials. After a stellar rally last week driven by tumbling Treasury yields, equities have lost momentum in recent days as investors await commentary by Fed policymakers for any signs of a pushback against expectations that U.S. interest rates have peaked.
|
Cushioning the tech-heavy Nasdaq .IXIC, DatadogDDOG.O surged 25.0% on beating estimates for third-quarter results and raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - The S&P 500 and Dow Jones were subdued on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials. Market participants will parse commentary from Fed Board Governor Christopher Waller and New York Fed President John Williams later on Tuesday for more clues on the central bank's interest rate path.
|
Cushioning the tech-heavy Nasdaq .IXIC, DatadogDDOG.O surged 25.0% on beating estimates for third-quarter results and raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - The S&P 500 and Dow Jones were subdued on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials. After a stellar rally last week driven by tumbling Treasury yields, equities have lost momentum in recent days as investors await commentary by Fed policymakers for any signs of a pushback against expectations that U.S. interest rates have peaked.
|
Cushioning the tech-heavy Nasdaq .IXIC, DatadogDDOG.O surged 25.0% on beating estimates for third-quarter results and raising its forecast for annual adjusted profit and revenue. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - The S&P 500 and Dow Jones were subdued on Tuesday as optimism over potential rate cuts from the Federal Reserve next year waned, with investors on tenterhooks ahead of more commentary from central bank officials. We think that the first rate cut will take place not in the second quarter of next year, but in the third quarter of next year," said Sam Stovall, chief investment strategist of CFRA Research.
|
818c82e1-7188-4388-9076-53e8e560f5c7
|
718010.0
|
2023-11-07 00:00:00 UTC
|
Should You Invest in Datadog (DDOG) Based on Bullish Wall Street Views?
|
DDOG
|
https://www.nasdaq.com/articles/should-you-invest-in-datadog-ddog-based-on-bullish-wall-street-views
|
nan
|
nan
|
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Datadog currently has an average brokerage recommendation (ABR) of 1.76, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 33 brokerage firms. An ABR of 1.76 approximates between Strong Buy and Buy.
Of the 33 recommendations that derive the current ABR, 19 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 57.6% and 9.1% of all recommendations.
Brokerage Recommendation Trends for DDOG
Check price target & stock forecast for Datadog here>>>
The ABR suggests buying Datadog, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is DDOG Worth Investing In?
Looking at the earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has increased 66.7% over the past month to $1.32.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Datadog may serve as a useful guide for investors.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG Is DDOG Worth Investing In?
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG
|
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG Is DDOG Worth Investing In?
|
Brokerage Recommendation Trends for DDOG Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Is DDOG Worth Investing In?
|
3dc1a419-666e-41f9-9fca-5a2af01a726d
|
718011.0
|
2023-11-07 00:00:00 UTC
|
Technology Sector Update for 11/07/2023: DDOG, CLVT, GEN, XLK, XSD
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-11-07-2023%3A-ddog-clvt-gen-xlk-xsd
|
nan
|
nan
|
Technology stocks were mixed premarket Tuesday as the Technology Select Sector SPDR Fund (XLK) was up 0.2% while the SPDR S&P Semiconductor ETF (XSD) was marginally declining recently.
Datadog (DDOG) was gaining over 25% after it reported a Q3 non-GAAP net income of $0.45 per diluted share, up from $0.23 a year earlier. Analysts polled by Capital IQ expected $0.34.
Clarivate (CLVT) was nearly 5% higher after it reported Q3 adjusted earnings of $0.21 per diluted share, up from $0.20 a year earlier. Analysts polled by Capital IQ expected $0.18.
Gen Digital (GEN) was climbing past 4% after it reported fiscal Q2 non-GAAP earnings of $0.47 per diluted share, up from $0.45 a year ago. Four analysts polled by Capital IQ expected $0.47.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) was gaining over 25% after it reported a Q3 non-GAAP net income of $0.45 per diluted share, up from $0.23 a year earlier. Technology stocks were mixed premarket Tuesday as the Technology Select Sector SPDR Fund (XLK) was up 0.2% while the SPDR S&P Semiconductor ETF (XSD) was marginally declining recently. Clarivate (CLVT) was nearly 5% higher after it reported Q3 adjusted earnings of $0.21 per diluted share, up from $0.20 a year earlier.
|
Datadog (DDOG) was gaining over 25% after it reported a Q3 non-GAAP net income of $0.45 per diluted share, up from $0.23 a year earlier. Analysts polled by Capital IQ expected $0.34. Analysts polled by Capital IQ expected $0.18.
|
Datadog (DDOG) was gaining over 25% after it reported a Q3 non-GAAP net income of $0.45 per diluted share, up from $0.23 a year earlier. Analysts polled by Capital IQ expected $0.34. Analysts polled by Capital IQ expected $0.18.
|
Datadog (DDOG) was gaining over 25% after it reported a Q3 non-GAAP net income of $0.45 per diluted share, up from $0.23 a year earlier. Technology stocks were mixed premarket Tuesday as the Technology Select Sector SPDR Fund (XLK) was up 0.2% while the SPDR S&P Semiconductor ETF (XSD) was marginally declining recently. Analysts polled by Capital IQ expected $0.34.
|
b6bcca2b-eadf-44f2-a543-2a793be2df29
|
718012.0
|
2023-11-07 00:00:00 UTC
|
These 2 Cloud Computing Stocks Are Soaring Skyward
|
DDOG
|
https://www.nasdaq.com/articles/these-2-cloud-computing-stocks-are-soaring-skyward
|
nan
|
nan
|
The stock market looked poised to give up a bit of ground on Tuesday morning, consolidating some big gains over the past week. Recent government data has answered some lingering questions about the economy, and the Federal Reserve's decision to leave interest rates unchanged has restored some confidence in the future. Investors can therefore refocus their attention on all the quarterly results that companies are reporting right now.
Cloud computing stocks have experienced a lot of volatility in 2023, as excitement about artificial intelligence (AI) has had to fight with the financial realities of many clients pulling back on their IT spending. However, the latest results from Datadog (NASDAQ: DDOG) and Alteryx (NYSE: AYX) show that there's still plenty of room for strong tech companies to stand out from the crowd. Here's what you need to know about the latest results from these two cloud players.
Datadog fetches a fantastic quarter
Shares of Datadog soared more than 20% in premarket trading Tuesday morning. The provider of cloud security and monitoring software reported third-quarter financial results that restored confidence in the company's ability to generate robust growth.
Datadog saw revenue rise 25% year over year in the third quarter, coming in at $548 million. Adjusted net income almost doubled from year-ago levels to $158 million, which worked out to $0.45 per share. Customers continued to adopt Datadog's software platform, with the tech company reporting a 20% rise in clients spending $100,000 or more annually to 3,130.
In addition, investors liked the guidance that Datadog gave for the rest of the year. The software provider sees fourth-quarter sales of between $564 million and $568 million, with adjusted earnings of between $0.42 and $0.44 per share. That would help wrap up 2023 with revenue slightly above $2.1 billion and earnings of $1.52 to $1.54 per share.
Co-founder/CEO Olivier Pomel pointed to solid bookings of new business as highlights in Datadog's business during the period. With so many businesses needing help managing their security and operations needs in order to help software developers make the most of current cutting-edge technology, Datadog is optimistic that the future remains bright.
Alteryx bounces back
Alteryx also gave investors good news Tuesday morning, as the stock climbed 19% in the premarket session. The provider of analytics automation services reported third-quarter results that topped its previous outlook and demonstrated the success of its strategic moves to embrace AI.
Alteryx's numbers weren't hugely impressive by all accounts, but they still managed to give shareholders more optimism about the future. Revenue for the third quarter was $232 million, up 8% year over year. Adjusted net income of $20 million reversed a modest year-earlier loss and worked out to $0.29 per share, which was better than most of those following the cloud computing stock had anticipated.
Alteryx was particularly pleased with how other key business metrics fared. With $914 million in annualized recurring revenue at the end of September, Alteryx liked the 21% year-over-year growth that should fuel future sales for years to come. Current customers also kept boosting their spending on the platform, with a dollar-based net expansion rate reaching 119%.
Best of all, Alteryx sees year-over-year revenue growth accelerating slightly in the fourth quarter to a pace of 11% to 13%, with further gains in annualized recurring revenue. A quarterly adjusted profit of $1.10 to $1.17 per share would also be highly welcome, as it would pull Alteryx's bottom line for the year back into the black and build valuable momentum for 2024.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Dan Caplinger has positions in Datadog. The Motley Fool has positions in and recommends Alteryx and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
However, the latest results from Datadog (NASDAQ: DDOG) and Alteryx (NYSE: AYX) show that there's still plenty of room for strong tech companies to stand out from the crowd. Recent government data has answered some lingering questions about the economy, and the Federal Reserve's decision to leave interest rates unchanged has restored some confidence in the future. Cloud computing stocks have experienced a lot of volatility in 2023, as excitement about artificial intelligence (AI) has had to fight with the financial realities of many clients pulling back on their IT spending.
|
However, the latest results from Datadog (NASDAQ: DDOG) and Alteryx (NYSE: AYX) show that there's still plenty of room for strong tech companies to stand out from the crowd. The provider of cloud security and monitoring software reported third-quarter financial results that restored confidence in the company's ability to generate robust growth. Customers continued to adopt Datadog's software platform, with the tech company reporting a 20% rise in clients spending $100,000 or more annually to 3,130.
|
However, the latest results from Datadog (NASDAQ: DDOG) and Alteryx (NYSE: AYX) show that there's still plenty of room for strong tech companies to stand out from the crowd. Datadog fetches a fantastic quarter Shares of Datadog soared more than 20% in premarket trading Tuesday morning. Datadog saw revenue rise 25% year over year in the third quarter, coming in at $548 million.
|
However, the latest results from Datadog (NASDAQ: DDOG) and Alteryx (NYSE: AYX) show that there's still plenty of room for strong tech companies to stand out from the crowd. Investors can therefore refocus their attention on all the quarterly results that companies are reporting right now. The provider of cloud security and monitoring software reported third-quarter financial results that restored confidence in the company's ability to generate robust growth.
|
ba404a35-e4c5-4965-8e40-2c2d5e8e69b6
|
718013.0
|
2023-11-07 00:00:00 UTC
|
Datadog tops quarterly estimates on robust bookings, raises annual forecast
|
DDOG
|
https://www.nasdaq.com/articles/datadog-tops-quarterly-estimates-on-robust-bookings-raises-annual-forecast
|
nan
|
nan
|
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats.
Shares of the software solutions provider soared nearly 23% in trading before the bell.
With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog.
The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Analysts were expecting $1.33 per share, according to LSEG data.
It also raised its full-year revenue forecast to the range of $2.10 billion to $2.11 billion, from its prior outlook of $2.05 billion to $2.06 billion.
Analysts expect Datadog to benefit from opportunities around cyber security and artificial intelligence with higher demand for development operations software.
The company's revenue for the third quarter stood at $548 million, beating estimates of $524.1 million.
Quarterly adjusted profit of 45 cents per share also topped expectations.
Earlier in October, internet companies Google, Amazon and Cloudflare had flagged the internet's largest-known denial of service attack that could easily cause widespread disruption. The firms had urged businesses to update their web servers to ensure that they do not remain vulnerable.
Datadog's total number of new and existing customers rose 20% to 3,130, with an annual recurring revenue of $100,000 or more as of Sept. 30.
(Reporting by Yamini Kalia in Bengaluru; Editing by Devika Syamnath and Shweta Agarwal)
((Yamini.Kalia@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog. Analysts expect Datadog to benefit from opportunities around cyber security and artificial intelligence with higher demand for development operations software.
|
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Quarterly adjusted profit of 45 cents per share also topped expectations.
|
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. With the rising number of security breaches hitting major companies like MGM Resorts MGM.N and Clorox CLX.N, businesses and governments are turning to software and cybersecurity solutions providers like Datadog. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34.
|
Nov 7 (Reuters) - Datadog DDOG.O on Tuesday topped estimates for third-quarter results and raised its forecast for annual adjusted profit and revenue, driven by demand from customers seeking better security solutions due to increasing cybersecurity threats. The Delaware, New-York-based company said it expects annual adjusted profit between $1.52 and $1.54 per share, up from its prior outlook of $1.30 and $1.34. Quarterly adjusted profit of 45 cents per share also topped expectations.
|
ecf69805-e6b6-405d-b726-f02ce507cf84
|
718014.0
|
2023-11-07 00:00:00 UTC
|
Pre-Market Most Active for Nov 7, 2023 : UBER, BMY, SQQQ, VTYX, AAPL, DDOG, TQQQ, LIFW, PINS, KMI, SNOW, PLTR
|
DDOG
|
https://www.nasdaq.com/articles/pre-market-most-active-for-nov-7-2023-%3A-uber-bmy-sqqq-vtyx-aapl-ddog-tqqq-lifw-pins-kmi
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up 8.91 to 15,163.84. The total Pre-Market volume is currently 45,317,522 shares traded.
The following are the most active stocks for the pre-market session:
Uber Technologies, Inc. (UBER) is -0.49 at $47.65, with 3,900,952 shares traded. Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
Bristol-Myers Squibb Company (BMY) is +0.21 at $53.00, with 3,322,598 shares traded. BMY's current last sale is 88.33% of the target price of $60.
ProShares UltraPro Short QQQ (SQQQ) is +0.03 at $18.64, with 3,308,416 shares traded. This represents a 13.8% increase from its 52 Week Low.
Ventyx Biosciences, Inc. (VTYX) is -10.69 at $3.40, with 2,939,344 shares traded.VTYX is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.88 per share, which represents a -59 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.53 at $178.70, with 2,337,391 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.58. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.03 at $37.98, with 1,427,921 shares traded. This represents a 135.9% increase from its 52 Week Low.
MSP Recovery, Inc. (LIFW) is -1.26 at $8.39, with 1,226,444 shares traded.
Pinterest, Inc. (PINS) is -0.12 at $30.80, with 1,207,219 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.25. As reported by Zacks, the current mean recommendation for PINS is in the "buy range".
Kinder Morgan, Inc. (KMI) is -0.12 at $16.55, with 832,329 shares traded. KMI's current last sale is 82.75% of the target price of $20.
Snowflake Inc. (SNOW) is +10.55 at $154.75, with 616,571 shares traded. As reported by Zacks, the current mean recommendation for SNOW is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.02 at $18.56, with 551,640 shares traded. PLTR's current last sale is 116% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
|
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". The consensus earnings per share forecast is -0.88 per share, which represents a -59 percent increase over the EPS one Year Ago
|
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". The total Pre-Market volume is currently 45,317,522 shares traded.
|
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 8.91 to 15,163.84.
|
7c0153b4-acff-40ee-a4bc-3b5009fe55c8
|
718015.0
|
2023-11-06 00:00:00 UTC
|
Looking for High-Growth Tech Stocks to Buy? My Top 3 Picks
|
DDOG
|
https://www.nasdaq.com/articles/looking-for-high-growth-tech-stocks-to-buy-my-top-3-picks
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite the labor market’s resilience and its support for consumer spending, the Federal Reserve is anticipating a slowdown to help manage inflation. Even though the economy remains robust, it is displaying cooling signs in job growth and wage increases. Given the current economic landscape, it’s wise for investors to consider investments in these high-growth technology stocks that will deliver strong returns, even in a sluggish market.
Datadog Incorporated (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog Incorporated (NASDAQ:DDOG) is a Software as a Service (SaaS) analytics platform. It provides businesses with cloud infrastructure, data tracking, and database monitoring.
Impressively, DDOG is up 13.80% year to date (YTD) at $82.04 per share. WSJ analysts give DDOG 19 buy ratings. They forecast a median price target of $104.50, with a low to high price of $70.00 to $133.00.
The SaaS market is forecasted to grow at a CAGR of 18.7%, from $273.55 billion in 2023 to $908.21 billion in 2030. In short, the SaaS system is reliable. Thus, the rise in public and hybrid cloud solutions in enterprises is a driving factor in this market.
Datadog reported solid Q2 financials, with a $509.5 million resembling a 25% year over year (YOY) revenue increase. Also, the company shows a surge of 50% YOY in EPS to $0.36 and a healthy free cash flow of $141.7 million. Additionally, the company projects revenue of $2.05 billion to $2.06 billion for 2023. They also anticipate a Non-GAAP operating income between $390 million to $400 million.
Datadog has introduced a new Large Language Model (LLM) solution that allows businesses to monitor their LLM stacks with LLM-based applications. And, the company brought in its own AI-based assistant, Bits AI. It learns adaptively from customers’ observability data and effectively helps engineers resolve application issues in real-time. Datadog’s AI model is poised to demonstrate effective usage by customers with supplement integrations with OpenAI models and Microsoft Azure.
Tesla Incorporated (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Tesla Incorporated (NASDAQ:TSLA) is a world-leading automotive and clean-energy company.
Tipranks has 33 analysts predicting a 1-year price range on TSLA to be between $85.00 and $380.00, with a mean of $252.61.
The EV industry is expected to reach a valuation of $1.09 trillion by 2030, growing at a 13.9% CAGR. This bodes well for the company’s EVs. It includes global expansion of to regions including Pacific-Asia, South America, the Middle East, and Africa. Additionally, government subsidization encourages EV usage. Consequently, disposable incomes from the GDP growth of these countries increase as well.
TSLA boasts strong financials. The company reports $23.35 billion in revenue for Q3 2023, which has been growing at a staggering 8.8% 1-year CAGR. Tesla demonstrates its profitability through an 11.1% EBITDA margin, well above the sector median. Also, management has improved its ability to leverage debt and internally fundraise over the past year through total assets. These grew 26.2% and cash from financing grew 417.8% YOY.
Tesla shows tremendous growth potential through innovations in its manufacturing process and new product deliveries on the horizon. Tesla has further developed its GigaPress-Diecast Manufacturing process. It creates the underbody of a Tesla car with a single diecast piece. In contrast, it can take competitors up to 400 separate die casts. This innovation will streamline the manufacturing process while reducing expenditures significantly.
Tesla is a trillion-dollar potential that investors shouldn’t pass up.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Palo Alto Networks (NYSE:PANW) is a cybersecurity company that uses an application-centric approach along with AI to create innovative and cutting-edge products.
PANW stock is up 75.88% YTD and is currently priced at $243.53. Yahoo! Finance reports 39 analysts having a mean 12-month price target of $279.77, with the range spanning from a low of $190 to a high of $340. The global cybersecurity was valued at 202.72 billion in 2022. Further, it is forecast to grow at a CAGR of 12.7% to $527.58 by 2030.
PANW’s main current catalyst is the recent proliferation in AI. As a cutting-edge cybersecurity firm, they embrace AI to use in “anomaly detection, risk prioritization, and beyond”. Moreover, it uses application-centric infrastructure, monitoring potential threats from within applications. As a result, advancements in data analysis techniques, like machine learning, can offer invaluable benefits.
Finally, Palo Alto Networks shows significant potential to lower costs and expand profits in an industry with huge growth potential. PANW emerges as a worthwhile purchase for growth-oriented investors.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Looking for High-Growth Tech Stocks to Buy? My Top 3 Picks appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Incorporated (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog Incorporated (NASDAQ:DDOG) is a Software as a Service (SaaS) analytics platform. Impressively, DDOG is up 13.80% year to date (YTD) at $82.04 per share. WSJ analysts give DDOG 19 buy ratings.
|
Datadog Incorporated (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog Incorporated (NASDAQ:DDOG) is a Software as a Service (SaaS) analytics platform. Impressively, DDOG is up 13.80% year to date (YTD) at $82.04 per share. WSJ analysts give DDOG 19 buy ratings.
|
Datadog Incorporated (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog Incorporated (NASDAQ:DDOG) is a Software as a Service (SaaS) analytics platform. Impressively, DDOG is up 13.80% year to date (YTD) at $82.04 per share. WSJ analysts give DDOG 19 buy ratings.
|
Datadog Incorporated (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog Incorporated (NASDAQ:DDOG) is a Software as a Service (SaaS) analytics platform. Impressively, DDOG is up 13.80% year to date (YTD) at $82.04 per share. WSJ analysts give DDOG 19 buy ratings.
|
4d0253de-1598-49e2-8f74-eb1ead0402f2
|
718016.0
|
2023-11-05 00:00:00 UTC
|
Best Artificial Intelligence (AI) Stock to Buy: Snowflake vs. Datadog
|
DDOG
|
https://www.nasdaq.com/articles/best-artificial-intelligence-ai-stock-to-buy%3A-snowflake-vs.-datadog
|
nan
|
nan
|
Artificial intelligence (AI) has emerged as the next big thing in the business world. Tech giants such as Microsoft, Alphabet, Tesla, and Amazon have been investing heavily in AI technologies in an effort to strengthen their existing business lines or expand into new ones. With AI becoming increasingly embedded in our daily lives, this investment trend is likely to persist for the next several years.
Investing in alignment with secular trends is a wise strategy for success in the stock market. Hence, it only makes sense for retail investors to open stakes in prominent AI stocks such as Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG). But which of these two is apt to be the better investment pick over the long haul?
Snowflake
Cloud-native big data analytics and data warehousing company Snowflake helps break the silos of structured and unstructured data (stored on-premises or in the cloud), analyze it, and then derive rich contextual insights for clients. Its highly scalable and secure data platform can work seamlessly with all major cloud providers, such as Amazon Web Services, Google Cloud, and Azure.
Although it's not exactly an AI company, Snowflake's data platform is playing a pivotal role in enabling clients to implement their AI strategies. The company has built a repository of curated, optimized, and secure enterprise data -- which is a major building block for its clients' AI strategies. This can prove to be a key competitive edge for Snowflake.
Snowflake's Data Marketplace also enables clients to share data, which is a major requirement for AI workloads. In fact, in its fiscal 2024 second quarter (which ended July 31), 26% of Snowflake's clients were sharing data. Furthermore, as data sharing proves more and more profitable for clients, it is driving up the utility of Snowflake's platform. This, in turn, helps attract even more customers. Hence, Snowflake has also been benefiting from significant network effects.
Management expects the company to reach an annual run rate of $10 billion by its fiscal 2029 -- an ambitious target considering its trailing 12-month revenue of just $2.4 billion. However, considering the company's strong fundamentals, which include a large addressable target market (estimated to be $290 billion by calendar 2027), positive free cash flows, and robust balance sheet ($3.75 billion cash versus $297 million debt), its stock may grow rapidly in the coming years.
Datadog
Cloud-native observability and cybersecurity company Datadog's platform pools together diagnostic data from across the customers' entire technology stack (which includes servers, networks, applications, databases, software, and hardware) and analyzes it to provide clients with real-time, context-driven insights about application and IT infrastructure performance. This helps clients swiftly identify root causes of anomalies, threats, and vulnerabilities, and resolve them, which in turn mitigates the risk of major damage to the organization.
Datadog has also been focused on rapidly adopting generative AI technology. The company recently integrated a generative AI assistant called Bits AI with its platform to enhance the accuracy of troubleshooting for organizations with minimal human intervention. The company has also introduced a monitoring tool for large language models that helps detect challenges associated with them, such as model drift (degradation in performance) and model hallucinations (incorrect and nonexistent information or patterns). Forrester Research has recognized the company as a leader in artificial intelligence for IT Operations.
Datadog's robust second-quarter results, which included a 23% year-over-year jump in customer count and a 50% year-over-year jump in adjusted earnings per share to $0.36, bear testimony to the strength of the company's business, especially when customers have been optimizing their cloud spending. The company is now guiding for revenue of $521 million to $525 million for the third quarter, and $2.05 billion to $2.06 billion for fiscal 2023.
The choice between Snowflake and Datadog
On Amazon's third-quarterearnings call CFO Brian Olsavsky highlighted the view that while 90% of global IT spending is still for on-premises infrastructure, that share will shrink to just about 10% in the next 10 years. The rapid adoption of cloud computing will drive the usage of cloud-native observability and security as well as cloud-native big data analytics platforms. Both Snowflake and Datadog are well-positioned to benefit from this secular trend.
However, investing in either of these companies is not without risks. Snowflake has also witnessed a significant year-over-year decline in its revenue growth rate, from 106% in fiscal 2022 to 70% in fiscal 2023, which ended on Jan. 31. The company expects year-over-year revenue growth to be 34% in fiscal 2024. Datadog's revenue growth rate also dropped dramatically from 78% in the first half of 2022 to 29% in the first half of 2023. The company is also not profitable on a GAAP (generally accepted accounting principles) basis.
Snowflake and Datadog also trade at price-to-sales multiples of 19.2 and 13.7, respectively, significantly higher than the software industry's median multiple of 2.1.
While investors' choice between Snowflake and Datadog depends on several factors such as growth prospects, risk tolerance, and investment objectives, the mission-critical nature of observability and cybersecurity services (as compared to analytics services) in the current uncertain economic environment makes Datadog a safer pick now. Coupled with its focus on profits, more reasonable valuation, and resilience to market fluctuations, it could prove to be a better pick in 2023.
10 stocks we like better than Snowflake
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Snowflake wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 30, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Datadog, Microsoft, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Hence, it only makes sense for retail investors to open stakes in prominent AI stocks such as Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG). Tech giants such as Microsoft, Alphabet, Tesla, and Amazon have been investing heavily in AI technologies in an effort to strengthen their existing business lines or expand into new ones. This helps clients swiftly identify root causes of anomalies, threats, and vulnerabilities, and resolve them, which in turn mitigates the risk of major damage to the organization.
|
Hence, it only makes sense for retail investors to open stakes in prominent AI stocks such as Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG). Snowflake Cloud-native big data analytics and data warehousing company Snowflake helps break the silos of structured and unstructured data (stored on-premises or in the cloud), analyze it, and then derive rich contextual insights for clients. Datadog Cloud-native observability and cybersecurity company Datadog's platform pools together diagnostic data from across the customers' entire technology stack (which includes servers, networks, applications, databases, software, and hardware) and analyzes it to provide clients with real-time, context-driven insights about application and IT infrastructure performance.
|
Hence, it only makes sense for retail investors to open stakes in prominent AI stocks such as Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG). Snowflake Cloud-native big data analytics and data warehousing company Snowflake helps break the silos of structured and unstructured data (stored on-premises or in the cloud), analyze it, and then derive rich contextual insights for clients. Although it's not exactly an AI company, Snowflake's data platform is playing a pivotal role in enabling clients to implement their AI strategies.
|
Hence, it only makes sense for retail investors to open stakes in prominent AI stocks such as Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG). Furthermore, as data sharing proves more and more profitable for clients, it is driving up the utility of Snowflake's platform. However, investing in either of these companies is not without risks.
|
f4c59394-0b03-484f-b387-10dcee443b13
|
718017.0
|
2023-11-03 00:00:00 UTC
|
Datadog (DDOG) to Report Q3 Earnings: What's in the Cards?
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-to-report-q3-earnings%3A-whats-in-the-cards-0
|
nan
|
nan
|
Datadog DDOG is set to release its third-quarter 2023 results on Nov 7.
For the third quarter of 2023, Datadog anticipates revenues between $521 million and $525 million. The Zacks Consensus Estimate for the same is currently pegged at $523.3 million, suggesting 19.88% growth from the year-ago period.
Non-GAAP earnings are expected in the range of 33-35 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 34 cents per share over the past 30 days, indicating growth of 47.83% from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 33.85%.
Let’s see how things have shaped up prior to this announcement.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Factors to Consider
Datadog’s quarterly performance is likely to have benefited from the increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.
Significant investments in sales and marketing to engage customers, increase brand awareness and drive adoption of its platform and products are likely to have resulted in a growing customer base in the to-be-reported quarter.
In the second quarter of 2023, Datadog had about 2,990 customers with an annual run rate of $100K or more, up from 2,420 in the year-ago quarter. The Zacks Consensus Estimate is pegged at 3,140, indicating growth of 20.77% from the year-ago quarter.
As of the end of the second quarter, 82% of customers used two or more products, up from 79% in the year-ago quarter’s figure. Additionally, 45% of customers utilized four or more products, up from 37% in the year-ago quarter and 21% of customers used six or more products, up from 14% a year ago.
Datadog’s dollar-based retention rate was above 120% as customers increased their usage and adopted more products.
The company introduced new capabilities for its Cloud Cost Management product and observability space. These updates are expected to have boosted clientele growth in the to-be-reported quarter.
DDOG released 15 new integrations across the next-generation artificial intelligence (AI) stack, from GPU infrastructure providers to vector databases, model vendors and AI orchestration frameworks. This integration is expected to have boosted customer growth in the to-be-reported quarter.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +6.93% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is set to announce third-quarter 2023 results on Nov 21. Shares of NVDA have rallied 197.5% year to date.
Upstart UPST has an Earnings ESP of +9.09% and a Zacks Rank #2 at present.
Upstart is set to announce third-quarter 2023 results on Nov 7. Shares of UPST have gained 107.5% year to date.
Clarivate CLVT has an Earnings ESP of +5.56% and a Zacks Rank #3 at present.
Clarivate is set to announce third-quarter 2023 results on Nov 7. Shares of CLVT have declined 20.5% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report
Clarivate PLC (CLVT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog DDOG is set to release its third-quarter 2023 results on Nov 7. DDOG released 15 new integrations across the next-generation artificial intelligence (AI) stack, from GPU infrastructure providers to vector databases, model vendors and AI orchestration frameworks. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its third-quarter 2023 results on Nov 7. DDOG released 15 new integrations across the next-generation artificial intelligence (AI) stack, from GPU infrastructure providers to vector databases, model vendors and AI orchestration frameworks.
|
Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its third-quarter 2023 results on Nov 7. DDOG released 15 new integrations across the next-generation artificial intelligence (AI) stack, from GPU infrastructure providers to vector databases, model vendors and AI orchestration frameworks.
|
Datadog DDOG is set to release its third-quarter 2023 results on Nov 7. DDOG released 15 new integrations across the next-generation artificial intelligence (AI) stack, from GPU infrastructure providers to vector databases, model vendors and AI orchestration frameworks. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Clarivate PLC (CLVT) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
471b3a48-7aac-423e-b681-88abd34aef05
|
718018.0
|
2023-11-03 00:00:00 UTC
|
Palantir Is Quietly Emerging as a Leader in Artificial Intelligence (AI)
|
DDOG
|
https://www.nasdaq.com/articles/palantir-is-quietly-emerging-as-a-leader-in-artificial-intelligence-ai
|
nan
|
nan
|
One of the most watched companies on Wall Street is Palantir (NYSE: PLTR). The data analytics company was founded 20 years ago by Silicon Valley entrepreneur Peter Thiel. For many years, institutional and retail investors alike did not know much about Palantir beyond its close ties to the U.S. government. However, since going public in 2020, the company has increasingly seen its name in the spotlight.
For some, Palantir is viewed as no more than a glorified government contractor specializing in consulting. But for others, Palantir represents a far greater opportunity. The company has developed four core software platforms, all of which leverage artificial intelligence (AI) and machine learning capabilities. And while Palantir does work closely with the U.S. military, it has witnessed increasing demand from the private sector as well -- thanks in large part to its latest AI installment called Artificial Intelligence Platform (AIP).
A recent industry report by Dresner Advisory Services ranked Palantir as the top vendor in AI, data science, and machine learning. The best part? Palantir has ranked ahead of Microsoft and Alphabet. Let's dig into why investors shouldn't sleep on Palantir stock and assess if now is a compelling buying opportunity.
And with the first overall pick...
Dresner Advisory Services recently published an in-depth report analyzing a multitude of vendors operating in AI and its various applications. According to the report, "in rating the vendors, we consider core features (including neural network support), data preparation, usability, scalability, integration, and support for big data/open-source technologies."
Effectively, this is Dresner's summary of vendors that operate across all the different AI features the report analyzes. The post below from Palantir's corporate account on X (formerly Twitter) highlights the company's top ranking:
Palantir ranks as the #1 top vendor in the 2023 AI, Data Science, and Machine Learning Market Study published by Dresner Advisory Services.
To view the full report, visit: https://t.co/TPVjqgKgfc
Learn more: https://t.co/Jh2H3H9obA
Copyright 2023 – Dresner Advisory Services pic.twitter.com/OZmHpAYQ7g
— Palantir (@PalantirTech) October 26, 2023
|
And while Palantir does work closely with the U.S. military, it has witnessed increasing demand from the private sector as well -- thanks in large part to its latest AI installment called Artificial Intelligence Platform (AIP). A recent industry report by Dresner Advisory Services ranked Palantir as the top vendor in AI, data science, and machine learning. And with the first overall pick... Dresner Advisory Services recently published an in-depth report analyzing a multitude of vendors operating in AI and its various applications.
|
A recent industry report by Dresner Advisory Services ranked Palantir as the top vendor in AI, data science, and machine learning. And with the first overall pick... Dresner Advisory Services recently published an in-depth report analyzing a multitude of vendors operating in AI and its various applications. The post below from Palantir's corporate account on X (formerly Twitter) highlights the company's top ranking: Palantir ranks as the #1 top vendor in the 2023 AI, Data Science, and Machine Learning Market Study published by Dresner Advisory Services.
|
And while Palantir does work closely with the U.S. military, it has witnessed increasing demand from the private sector as well -- thanks in large part to its latest AI installment called Artificial Intelligence Platform (AIP). A recent industry report by Dresner Advisory Services ranked Palantir as the top vendor in AI, data science, and machine learning. The post below from Palantir's corporate account on X (formerly Twitter) highlights the company's top ranking: Palantir ranks as the #1 top vendor in the 2023 AI, Data Science, and Machine Learning Market Study published by Dresner Advisory Services.
|
And while Palantir does work closely with the U.S. military, it has witnessed increasing demand from the private sector as well -- thanks in large part to its latest AI installment called Artificial Intelligence Platform (AIP). A recent industry report by Dresner Advisory Services ranked Palantir as the top vendor in AI, data science, and machine learning. The post below from Palantir's corporate account on X (formerly Twitter) highlights the company's top ranking: Palantir ranks as the #1 top vendor in the 2023 AI, Data Science, and Machine Learning Market Study published by Dresner Advisory Services.
|
e6521b53-c511-46e6-8d19-190387540c57
|
718019.0
|
2023-11-02 00:00:00 UTC
|
Resuming the Bull Market: 3 Top Ranked Stocks Investors Can Buy Now
|
DDOG
|
https://www.nasdaq.com/articles/resuming-the-bull-market%3A-3-top-ranked-stocks-investors-can-buy-now
|
nan
|
nan
|
At yesterday’s FOMC meeting, Fed Chair Jerome Powell announced that for the second meeting in a row, interest rate hikes would remain paused. The market has taken this and the press conference that followed as a bullish signal, and it seems stocks have been given the green light to resume the bull run.
A number of stocks sold down to depressed levels over the last few weeks, which has presented discerning investors with a buying opportunity.
In this article I will cover three stocks with top Zacks Ranks that have compelling business models, and strong sales growth.
One stock has sold off considerably this year providing an exciting value investment, while another trendsetting fashion brand has outperformed the market by 40%. The last one is an exciting cloud-based technology stock that has languished all year, but is growing sales and earnings very rapidly, nonetheless.
Image Source: Zacks Investment Research
Trupanion
Trupanion TRUP is a pet insurance company that provides coverage for veterinary expenses incurred by pet owners. Founded in 2000, Trupanion offers customizable insurance plans for cats and dogs, helping pet owners manage unexpected medical costs and providing peace of mind. Their policies typically cover a wide range of veterinary services, including surgeries, medications, diagnostic tests, and more. Trupanion is known for its straightforward approach to pet insurance, offering a single comprehensive plan with no payout limits and a focus on simplifying the claims process for pet owners.
Insurance businesses enjoy very strong unit economics as their products have no marginal cost of production. But even more significant for TRUP is the fact that pet ownership is one of the fastest growing economic trends in the western world.
Today, in the US there are more pet owners than parents! Furthermore, Trupanion is the leading pet insurance company in the world, with a 30% market share.
Image Source: PetKeen
In addition to a Zacks Rank #1 (Strong Buy) rating, Trupanion has formed a compelling technical chart pattern. After selling down -50% YTD to levels not seen since 2017, TRUP stock looks to have formed a double bottom pattern.
I think so long as the stock can hold up above the $20 level, it is possible that it has found a near term low. It should be noted that TRUP reports earnings today, Thursday November 2, after the market closes.
Image Source: TradingView
Trupanion is also now trading at the lowest relative valuation in the company’s history. It is trading at a one year forward sales multiple of 0.78x, which is below the industry average of 1.9x, and below its median of 2.6x.
Image Source: Zacks Investment Research
Datadog
Datadog DDOG is a prominent cloud-based monitoring and analytics platform designed for modern technology stacks. Founded in 2010, Datadog offers comprehensive observability and monitoring solutions for applications, infrastructure, and cloud environments. Its platform allows organizations to collect and analyze data from various sources, providing real-time insights into the performance and health of their IT systems.
Reflecting strong earnings trend revisions, Datadog has a Zacks Rank #1 (Strong Buy) rating. Additionally, sales and earnings forecasts this and next year expect huge growth.
This year and next year’s sales are expected to climb 23% and 21% YoY respectively, while earnings for the same period are projected to climb 35% and 14.5% YoY.
Image Source: Zacks Investment Research
Today, Datadog is trading near its lowest valuation. Its forward sales multiple is currently 12.7x, which is above the industry average and below its four-year median of 29.2x. Admittedly, this is a very premium valuation, but with EPS forecast to grow by 22% annually over the next 3-5 years, investors are willing to pay up for the stock.
Image Source: Zacks Investment Research
Deckers Outdoor
Deckers Outdoor DECK, is an American footwear and apparel company. Established in 1973, the company is known for its diverse portfolio of brands, with the most notable being UGG, Teva, Hoka One, and Sanuk. UGG, in particular, is famous for its sheepskin boots and has gained international recognition. Deckers focuses on outdoor and casual lifestyle footwear and accessories, catering to a broad consumer base.
Deckers Outdoor has steadily grown its EPS from under $10 per share in 2020 to an expected $23 per share in FY23. This trend of growing earnings hasn’t gone over analysts' heads as they have began to upgrade earnings estimates for DECK, giving it a Zacks Rank #1 (Strong Buy) rating.
Image Source: Zacks Investment Research
The apparel business is a notoriously difficult sector to find long-term winners. Because of the constantly shifting consumer preferences companies and stocks in the fashion industry come and go, with very few putting up strong long-term returns.
But Deckers Outdoor stands out from the rest. Over the last ten years DECK stock has compounded at an incredible 22% annually, far better than the broad market, and absolutely trouncing the industry, which is down -50% over that period.
Image Source: Zacks Investment Research
Bottom Line
The Zacks Rank is an extremely effective way to filter for stocks which have near-term bullish tailwinds, which are powered by analysts upgrading earnings estimates. With the Zacks Rank you will never have a shortage of stocks to pick from.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Trupanion, Inc. (TRUP) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Image Source: Zacks Investment Research Datadog Datadog DDOG is a prominent cloud-based monitoring and analytics platform designed for modern technology stacks. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Founded in 2000, Trupanion offers customizable insurance plans for cats and dogs, helping pet owners manage unexpected medical costs and providing peace of mind.
|
Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog Datadog DDOG is a prominent cloud-based monitoring and analytics platform designed for modern technology stacks. Image Source: Zacks Investment Research Trupanion Trupanion TRUP is a pet insurance company that provides coverage for veterinary expenses incurred by pet owners.
|
Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog Datadog DDOG is a prominent cloud-based monitoring and analytics platform designed for modern technology stacks. Image Source: Zacks Investment Research Trupanion Trupanion TRUP is a pet insurance company that provides coverage for veterinary expenses incurred by pet owners.
|
Image Source: Zacks Investment Research Datadog Datadog DDOG is a prominent cloud-based monitoring and analytics platform designed for modern technology stacks. Click to get this free report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Trupanion Trupanion TRUP is a pet insurance company that provides coverage for veterinary expenses incurred by pet owners.
|
d90ea79a-0443-4f62-9a41-b6d9bb4a4f15
|
718020.0
|
2023-11-02 00:00:00 UTC
|
Guru Fundamental Report for DDOG
|
DDOG
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-19
|
nan
|
nan
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
|
1b34e071-2887-4d56-96b7-6397af3debf2
|
718021.0
|
2023-11-02 00:00:00 UTC
|
A bullish storm is brewing for cloud stocks
|
DDOG
|
https://www.nasdaq.com/articles/a-bullish-storm-is-brewing-for-cloud-stocks
|
nan
|
nan
|
Results from ServiceNow (NASDAQ: NOW) bode well for cloud services stocks. The company posted results that sparked a round of surprisingly bullish chatter from analysts that points to continued strength in this and other cloud services names.
Analysts viewed the ServiceNow results as remarkably strong, defying expectations on broad demand, with significant improvement in the outlook all because of AI. AI is expected to and is already proving capable of generating substantial cost savings for businesses; it will only gain momentum and drive business in the cloud. Because many of these stocks are beaten down on depressed expectations, there is a significant opportunity for them to outperform expectations and reinvigorate their stock prices.
ServiceNow confirms reversal, leads cloud stocks higher
ServiceNow had a strong quarter, with net revenues up 25% compared to last year. The $2.92 billion in revenue beat consensus by about 100 basis points on strength in government spending and AI, with revenue in that segment up 75%. Total subscription revenue is up 27%, outpacing the consensus by several hundred basis points, with the remaining performance obligation up an equal amount.
Guidance is what has ServiceNow stock moving higher. The company raised its guidance for the year, and it may be cautious. A new partnership with Deloitte highlights the growth potential; Deloitte will embed ServiceNow generative AI into its OperateEdge platform, and other large clients are doing likewise. Growth of large clients topped 50% for the quarter, and the penetration is deepening to provide a dual tailwind for growth.
Analysts rate this stock a Moderate Buy and have been raising their price targets all year. The Q3 release sparked another round of revisions, with the consensus target up 3% compared to last quarter and 12% compared to last year but in alignment with recent price action. The takeaway is that recent price targets have the stock trading in the $650 to $700 range, which is 7% to 15% above current action.
Datadog in the doghouse; market ready to rebound
Datadog (NASDAQ: DDOG) shares sank more than 20% following the Q2 release on overreacting to mixed news. The Q2 results were better than expected but came with mixed guidance that included modestly weak top-line expectations but better-than-expected earnings. The takeaway is that revenue weakness will be offset by earnings strength, and both targets may be cautious; Datadog raised guidance significantly in Q1, the Q2 reduction is a minor give-back, and outperformance is typical. Regarding next year, analysts project 25% top-line growth and a wider margin.
The analysts are expecting good things in Q3 2023 despite the guidance cut. They have only raised their revenue and earnings targets since the Q2 release and have consensus pegged near the top of the range. They’ve also been lowering their price targets for the stock, putting it on the Most Downgraded stock list. This activity has the market trading at a critical level and well positioned for a rebound, given a solid report. Despite the downward revisions, analysts see this market advancing more than 20%.
Snowflake: a blizzard of opportunity in AI
Snowflake (NASDAQ: SNOW) is another cloud stock whose share price is struggling to gain traction despite the massive opportunity in AI. The company’s growth slowed in 2023, helping to cap share price gains, but an acceleration of business is expected next year that will bring significant earnings leverage. The growth driver for this company is the need for data and data management, an absolute requirement for creating, training, deploying, and utilizing AI.
The company is embedding AI services across its platform to help businesses manage and gain insight from their data. To that end, Snowflake acquired several AI-oriented businesses to help with searching at scale and applying AI models.
Snowflake earnings are expected to grow by 50% in 2024, and the bar is likely low. Analysts have been lowering their targets despite persistent high-double-digit growth in large clients and a remarkable 142% net retention rate. This company is growing its client base and deepening penetration in what many see as the first innings of the AI revolution, so outperformance is more likely than not. As it is, revenue growth is estimated to slow to 28% from 35% in Q3 2023.
The article "A bullish storm is brewing for cloud stocks" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog in the doghouse; market ready to rebound Datadog (NASDAQ: DDOG) shares sank more than 20% following the Q2 release on overreacting to mixed news. The company posted results that sparked a round of surprisingly bullish chatter from analysts that points to continued strength in this and other cloud services names. The takeaway is that revenue weakness will be offset by earnings strength, and both targets may be cautious; Datadog raised guidance significantly in Q1, the Q2 reduction is a minor give-back, and outperformance is typical.
|
Datadog in the doghouse; market ready to rebound Datadog (NASDAQ: DDOG) shares sank more than 20% following the Q2 release on overreacting to mixed news. ServiceNow confirms reversal, leads cloud stocks higher ServiceNow had a strong quarter, with net revenues up 25% compared to last year. The Q3 release sparked another round of revisions, with the consensus target up 3% compared to last quarter and 12% compared to last year but in alignment with recent price action.
|
Datadog in the doghouse; market ready to rebound Datadog (NASDAQ: DDOG) shares sank more than 20% following the Q2 release on overreacting to mixed news. Because many of these stocks are beaten down on depressed expectations, there is a significant opportunity for them to outperform expectations and reinvigorate their stock prices. Snowflake: a blizzard of opportunity in AI Snowflake (NASDAQ: SNOW) is another cloud stock whose share price is struggling to gain traction despite the massive opportunity in AI.
|
Datadog in the doghouse; market ready to rebound Datadog (NASDAQ: DDOG) shares sank more than 20% following the Q2 release on overreacting to mixed news. Because many of these stocks are beaten down on depressed expectations, there is a significant opportunity for them to outperform expectations and reinvigorate their stock prices. Analysts rate this stock a Moderate Buy and have been raising their price targets all year.
|
bba73f57-8374-4b64-a0ac-7aac6ced62d6
|
718022.0
|
2023-11-02 00:00:00 UTC
|
Generative Artificial Intelligence (AI) Revenue Is Soaring Toward $1 Trillion: 2 Top-Pick Growth Stocks to Buy Right Now
|
DDOG
|
https://www.nasdaq.com/articles/generative-artificial-intelligence-ai-revenue-is-soaring-toward-%241-trillion%3A-2-top-pick
|
nan
|
nan
|
ChatGPT began dazzling the world with its latest generative artificial intelligence (AI) efforts roughly a year ago, laying the foundation for what promises to become a booming sector of the economy. Indeed, projections from Bloomberg Intelligence suggest that just generative AI-related revenue could compound at 42% annually over the next decade, reaching $1.3 trillion by 2032.
That rising tide will likely lift many companies, but certain Wall Street analysts see Datadog (NASDAQ: DDOG) and Docebo (NASDAQ: DCBO) as being especially well-positioned to benefit from the boom.
Here's what investors should know about these top-pick AI growth stocks.
1. Datadog
Datadog specializes in observability and cybersecurity software. Via turnkey integrations, its platform provides real-time visibility across the corporate IT stack, helping clients monitor and optimize their applications and infrastructure. Its platform also leans on artificial intelligence to automate various workflows and accelerate the resolution of performance problems.
Datadog offers nearly two dozen software modules and counting, giving it a distinct advantage over vendors with less robust product portfolios. Better yet, the company has earned a leadership position in several observability software markets -- including AI for IT operations, application performance monitoring, and log monitoring -- and it has a strong presence in many others.
Datadog delivered a solid financial performance in the most recent quarter. Its customer count climbed 23% to 26,100, and the average customer spent north of 20% more. In turn, revenue increased 25% to $510 million, and non-GAAP (adjusted) net income rose 50% to $125 million. Investors can expect similar momentum in the future.
Datadog values its addressable market at $62 billion in 2026, and the company is leaning into AI to capitalize on that opportunity. New platform integrations support end-to-end monitoring of the AI stack, such as graphics processing units at the compute layer, databases at the storage layer, development tools at the software layer, and AI models at the services layer.
Additionally, Datadog recently released a beta version of LLM Observability, a monitoring solution tailor-made for large language models that power generative AI applications. It released a beta version of Bits, a conversational interface that can surface insights and automate workflows to simplify incident resolution. Wolfe Research strategist Alex Zukin believes the rise of generative AI could make Datadog the "fastest-growing software company."
On that note, shares currently trade at 13.5 times sales, a bargain compared to the three-year average of 33.5 times sales. At that price, investors should feel comfortable buying a small position in this growth stock.
2. Docebo
Docebo specializes in corporate learning. Its platform helps businesses provision, personalize, deliver, and measure the impact of learning content across internal (employees) and external (customers, partners) audiences. Businesses can also automate the creation of learning content with Docebo Shape, a generative AI application that turns virtually any resource -- from online articles and case studies to white papers and presentations -- into training material.
Earlier this year, industry analyst Fosway Group recognized Docebo as a leader in the learning management systems (LMS) market for the sixth consecutive year, and Talented Learning awarded Docebo the highest score for all-purpose learning solutions. As another measure of success, Docebo has won the business of numerous high-profile companies, including Amazon, Coca-Cola, and Zoom Video Communications.
Despite difficult macroeconomic conditions, Docebo delivered a solid financial report in the second quarter. Its customer count climbed 16% to 3,591, revenue increased 25% to $43.6 million, and adjusted net income improved to $4.7 million, up from a loss of $729,000 in the prior year. Docebo also signed a major deal with a new customer described as another "big 5 U.S.-based global technology leader." While that customer was unnamed in the press release, the context points to Alphabet's Google.
Looking toward the future, investors have good reason to be bullish on Docebo. Management says its addressable market will reach $38 billion in 2026, leaving plenty of upside. Better yet, the company has historically grown more than twice as fast as the broader LMS market, meaning it has consistently taken share in the past.
With that in mind, Morgan Stanley analyst Josh Baer sees Docebo as one of the software vendors best positioned to monetize generative AI, and he believes revenue will compound at 17% annually through 2033. That forecast makes its current valuation of 8 times sales look reasonable, if not downright cheap. Investors should buy a small position in this little-known AI growth stock today.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 30, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Datadog, Docebo, and Zoom Video Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That rising tide will likely lift many companies, but certain Wall Street analysts see Datadog (NASDAQ: DDOG) and Docebo (NASDAQ: DCBO) as being especially well-positioned to benefit from the boom. ChatGPT began dazzling the world with its latest generative artificial intelligence (AI) efforts roughly a year ago, laying the foundation for what promises to become a booming sector of the economy. Businesses can also automate the creation of learning content with Docebo Shape, a generative AI application that turns virtually any resource -- from online articles and case studies to white papers and presentations -- into training material.
|
That rising tide will likely lift many companies, but certain Wall Street analysts see Datadog (NASDAQ: DDOG) and Docebo (NASDAQ: DCBO) as being especially well-positioned to benefit from the boom. Better yet, the company has earned a leadership position in several observability software markets -- including AI for IT operations, application performance monitoring, and log monitoring -- and it has a strong presence in many others. Its customer count climbed 16% to 3,591, revenue increased 25% to $43.6 million, and adjusted net income improved to $4.7 million, up from a loss of $729,000 in the prior year.
|
That rising tide will likely lift many companies, but certain Wall Street analysts see Datadog (NASDAQ: DDOG) and Docebo (NASDAQ: DCBO) as being especially well-positioned to benefit from the boom. Better yet, the company has earned a leadership position in several observability software markets -- including AI for IT operations, application performance monitoring, and log monitoring -- and it has a strong presence in many others. Earlier this year, industry analyst Fosway Group recognized Docebo as a leader in the learning management systems (LMS) market for the sixth consecutive year, and Talented Learning awarded Docebo the highest score for all-purpose learning solutions.
|
That rising tide will likely lift many companies, but certain Wall Street analysts see Datadog (NASDAQ: DDOG) and Docebo (NASDAQ: DCBO) as being especially well-positioned to benefit from the boom. Datadog Datadog specializes in observability and cybersecurity software. Docebo Docebo specializes in corporate learning.
|
abc42905-aa73-4d18-b22b-0e77115b0130
|
718023.0
|
2023-10-30 00:00:00 UTC
|
Datadog (DDOG) Stock Falls Amid Market Uptick: What Investors Need to Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-stock-falls-amid-market-uptick%3A-what-investors-need-to-know
|
nan
|
nan
|
The most recent trading session ended with Datadog (DDOG) standing at $80.42, reflecting a -1.54% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 1.16%.
Shares of the data analytics and cloud monitoring company have depreciated by 10.33% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.32% and the S&P 500's loss of 3.58%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company is slated to reveal its earnings on November 7, 2023. It is anticipated that the company will report an EPS of $0.34, marking a 47.83% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $523.3 million, indicating a 19.88% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.32 per share and a revenue of $2.06 billion, demonstrating changes of +34.69% and +22.75%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Datadog. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Datadog boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 62.05. This valuation marks a premium compared to its industry's average Forward P/E of 35.06.
It's also important to note that DDOG currently trades at a PEG ratio of 2.82. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.39 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The most recent trading session ended with Datadog (DDOG) standing at $80.42, reflecting a -1.54% shift from the previouse trading day's closing. It's also important to note that DDOG currently trades at a PEG ratio of 2.82. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The most recent trading session ended with Datadog (DDOG) standing at $80.42, reflecting a -1.54% shift from the previouse trading day's closing. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. It's also important to note that DDOG currently trades at a PEG ratio of 2.82.
|
The most recent trading session ended with Datadog (DDOG) standing at $80.42, reflecting a -1.54% shift from the previouse trading day's closing. It's also important to note that DDOG currently trades at a PEG ratio of 2.82. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The most recent trading session ended with Datadog (DDOG) standing at $80.42, reflecting a -1.54% shift from the previouse trading day's closing. It's also important to note that DDOG currently trades at a PEG ratio of 2.82. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
1a98c200-1a24-4645-9557-c4a6cb1cf9b9
|
718024.0
|
2023-10-29 00:00:00 UTC
|
The Best Stocks to Invest $1,000 in Right Now
|
DDOG
|
https://www.nasdaq.com/articles/the-best-stocks-to-invest-%241000-in-right-now-16
|
nan
|
nan
|
When seeking out the best stocks, investors should be keeping an eye on at least several key traits in a company. That includes track records of success, prominent positioning in an important market, and long runways for future growth. These characteristics, combined with a long-term time horizon, should lead to positive investment returns.
Fortunately, it doesn't take a lot of money to get started. With as little as $1,000, investors can consider the two stocks below. Tech giant Microsoft (NASDAQ: MSFT) and up-and-comer Datadog (NASDAQ: DDOG) may be on opposite ends of the spectrum in size, but both show strong promise ahead. Let's dig in and see why investors should take a closer look at them.
Microsoft
The name Microsoft is likely familiar to all investors given its long and storied history as one of the most important companies in the world. While its Windows operating system and suite of productivity software are still driving business results, Microsoft has also become one of the big-three cloud infrastructure providers with its Azure Cloud business. Azure is part of the intelligent cloud segment, which is Microsoft's largest and fastest growing source of revenue.
Microsoft recently reported its earnings results for the first quarter of its fiscal 2024 and there were several trends that should excite potential investors. First of all, top- and bottom-line growth have continued their trend of accelerating each quarter.
METRIC
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Revenue growth (YOY)
2%
7%
8%
13%
Earnings per share growth (YOY)
(11%)
10%
21%
27%
Data source: Microsoft
The revenue growth trend has been consistent across all of Microsoft's business segments. Of particular interest in this most recent quarter was the growth in the Azure cloud businesses, which grew 29% year over year. This was driven by companies migrating to the cloud and also by increased artificial intelligence (AI) business.
Microsoft's bottom-line growth starts with gross margin, which increased by 2 percentage points year over year. Improved business efficiency led to an operating margin increase of 5 percentage points, which is why earnings per share jumped by 27%. Put simply, Microsoft is growing its revenue and decreasing its expenses, all of which is good news for investors.
One note of caution for investors is Microsoft's valuation. While its current price-to-earnings multiple of 33 is not far above its historical average, it would be a mistake to consider the stock cheap. Buying shares at this price is reasonable but investors may want to consider dollar-cost averaging into this stock over time as the market may present more attractive buying opportunities down the road.
Datadog
While not nearly as well-known as Microsoft, Datadog is certainly making a name for itself in the IT operations market. Datadog provides companies with a simple unified platform where multiple aspects of what an IT department needs to monitor can happen in one place. The company refers to this as breaking down the silos between various IT departments.
Like many software-as-a-service (SaaS) companies, Datadog has been focused on growth more than profitability. In its time as a publicly traded company, it has averaged year-over-year revenue growth of 65%. However, that growth rate has been declining over the past year. In the most recently reported quarter, the second quarter of 2023, revenue grew by only 25% over the prior year. To be clear, that's still very strong, but it's worth pointing out the deceleration.
The good news is that even as revenue growth has slowed, the company has been making progress toward profitability. Datadog's net loss was $4 million in Q2 2023, improving slightly from a loss of $4.9 million in the year-ago quarter. On an adjusted basis, non-GAAP (adjusted) earnings per share grew by 50% year over year. That trend is expected to accelerate as the company is guiding for an adjusted earnings per share increase of 48% in the third quarter of 2023.
In a world where higher interest rates mean money is considerably more expensive for companies to borrow, getting to profitability is becoming more important. The fact that Datadog is making progress toward being sustainably profitable is a good sign both for the business and its shareholders.
Lastly, it's worth pointing out that Datadog's customer growth is still going strong and has seen less of a deceleration than its revenue growth. Total customers grew by 23% in Q2 2023 and its customers with annual recurring revenue of $100,000 or more grew by 24%.
Datadog is also selling more products to its current customers. In Q2 2022, only 14% of customers subscribed to six or more products. One year later, that number is 21%. Selling more products to current customers should continue to help profitability as there are fewer sales and marketing expenses when selling to a customer the company has already acquired.
10 stocks we like better than Microsoft
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 23, 2023
Jeff Santoro has positions in Datadog and Microsoft. The Motley Fool has positions in and recommends Datadog and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Tech giant Microsoft (NASDAQ: MSFT) and up-and-comer Datadog (NASDAQ: DDOG) may be on opposite ends of the spectrum in size, but both show strong promise ahead. That includes track records of success, prominent positioning in an important market, and long runways for future growth. Improved business efficiency led to an operating margin increase of 5 percentage points, which is why earnings per share jumped by 27%.
|
Tech giant Microsoft (NASDAQ: MSFT) and up-and-comer Datadog (NASDAQ: DDOG) may be on opposite ends of the spectrum in size, but both show strong promise ahead. Revenue growth (YOY) 2% 7% 8% 13% Earnings per share growth (YOY) (11%) 10% 21% 27% Data source: Microsoft The revenue growth trend has been consistent across all of Microsoft's business segments. Of particular interest in this most recent quarter was the growth in the Azure cloud businesses, which grew 29% year over year.
|
Tech giant Microsoft (NASDAQ: MSFT) and up-and-comer Datadog (NASDAQ: DDOG) may be on opposite ends of the spectrum in size, but both show strong promise ahead. Revenue growth (YOY) 2% 7% 8% 13% Earnings per share growth (YOY) (11%) 10% 21% 27% Data source: Microsoft The revenue growth trend has been consistent across all of Microsoft's business segments. Lastly, it's worth pointing out that Datadog's customer growth is still going strong and has seen less of a deceleration than its revenue growth.
|
Tech giant Microsoft (NASDAQ: MSFT) and up-and-comer Datadog (NASDAQ: DDOG) may be on opposite ends of the spectrum in size, but both show strong promise ahead. With as little as $1,000, investors can consider the two stocks below. Of particular interest in this most recent quarter was the growth in the Azure cloud businesses, which grew 29% year over year.
|
1703be52-251f-4ee8-98f9-29daf0a3d057
|
718025.0
|
2023-10-26 00:00:00 UTC
|
Notable Thursday Option Activity: WYNN, DDOG, SKX
|
DDOG
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-wynn-ddog-skx
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Wynn Resorts Ltd (Symbol: WYNN), where a total of 9,520 contracts have traded so far, representing approximately 952,000 underlying shares. That amounts to about 57.3% of WYNN's average daily trading volume over the past month of 1.7 million shares. Particularly high volume was seen for the $100 strike call option expiring January 19, 2024, with 2,060 contracts trading so far today, representing approximately 206,000 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $100 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) options are showing a volume of 20,734 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 57.2% of DDOG's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $83 strike call option expiring October 27, 2023, with 1,409 contracts trading so far today, representing approximately 140,900 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $83 strike highlighted in orange:
And Skechers USA Inc (Symbol: SKX) saw options trading volume of 9,340 contracts, representing approximately 934,000 underlying shares or approximately 55.9% of SKX's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $55 strike call option expiring November 17, 2023, with 4,018 contracts trading so far today, representing approximately 401,800 underlying shares of SKX. Below is a chart showing SKX's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for WYNN options, DDOG options, or SKX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stocks Insiders Are Buying But Hedge Funds Are Selling
CENX shares outstanding history
GABC Dividend Growth Rate
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $83 strike call option expiring October 27, 2023, with 1,409 contracts trading so far today, representing approximately 140,900 underlying shares of DDOG. Below is a chart showing WYNN's trailing twelve month trading history, with the $100 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 20,734 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 57.2% of DDOG's average daily trading volume over the past month, of 3.6 million shares.
|
Below is a chart showing WYNN's trailing twelve month trading history, with the $100 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 20,734 contracts thus far today. Below is a chart showing DDOG's trailing twelve month trading history, with the $83 strike highlighted in orange: And Skechers USA Inc (Symbol: SKX) saw options trading volume of 9,340 contracts, representing approximately 934,000 underlying shares or approximately 55.9% of SKX's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing SKX's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for WYNN options, DDOG options, or SKX options, visit StockOptionsChannel.com.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $83 strike highlighted in orange: And Skechers USA Inc (Symbol: SKX) saw options trading volume of 9,340 contracts, representing approximately 934,000 underlying shares or approximately 55.9% of SKX's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing WYNN's trailing twelve month trading history, with the $100 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 20,734 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 57.2% of DDOG's average daily trading volume over the past month, of 3.6 million shares.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $83 strike highlighted in orange: And Skechers USA Inc (Symbol: SKX) saw options trading volume of 9,340 contracts, representing approximately 934,000 underlying shares or approximately 55.9% of SKX's average daily trading volume over the past month, of 1.7 million shares. Below is a chart showing SKX's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for WYNN options, DDOG options, or SKX options, visit StockOptionsChannel.com. Below is a chart showing WYNN's trailing twelve month trading history, with the $100 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 20,734 contracts thus far today.
|
f20f9e34-88b8-4ef9-bd5c-743bd1ede7af
|
718026.0
|
2023-10-26 00:00:00 UTC
|
March 2024 Options Now Available For Datadog (DDOG)
|
DDOG
|
https://www.nasdaq.com/articles/march-2024-options-now-available-for-datadog-ddog
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the March 2024 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 141 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $80.00 strike price has a current bid of $9.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $80.00, but will also collect the premium, putting the cost basis of the shares at $70.85 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $81.28/share today.
Because the $80.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 11.44% return on the cash commitment, or 29.61% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Datadog Inc, and highlighting in green where the $80.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $85.00 strike price has a current bid of $9.65. If an investor was to purchase shares of DDOG stock at the current price level of $81.28/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $85.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 16.45% if the stock gets called away at the March 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $85.00 strike highlighted in red:
Considering the fact that the $85.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 11.87% boost of extra return to the investor, or 30.73% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $81.28) to be 58%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
High-Yield Canadian Real Estate Stocks
Funds Holding PSTL
FISI Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the March 2024 expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the March 2024 expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the March 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new March 2024 contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $85.00 strike highlighted in red: Considering the fact that the $85.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the March 2024 expiration.
|
1555007f-6324-4f81-a9a8-a7ecb2cf2852
|
718027.0
|
2023-10-26 00:00:00 UTC
|
Guru Fundamental Report for DDOG
|
DDOG
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-18
|
nan
|
nan
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
|
b484850c-0ee7-4d9a-9b1f-faf6f25af33b
|
718028.0
|
2023-10-25 00:00:00 UTC
|
Why C3.ai, Salesforce, and Datadog Were Down Big Today
|
DDOG
|
https://www.nasdaq.com/articles/why-c3.ai-salesforce-and-datadog-were-down-big-today
|
nan
|
nan
|
Shares of cloud and artificial intelligence (AI)-related software stocks C3.ai (NYSE: AI), Salesforce (NYSE: CRM), and Datadog (NASDAQ: DDOG) were plunging today, down 6%, 3.6%, and 6.5%, respectively, as of 3:03 p.m. ET.
There wasn't any material news for these individual stocks today, although two of them did receive lukewarm reviews from analysts earlier this week. Of note, macroeconomic concerns are front and center, with war in the Middle East and higher interest rates weighing on sentiment.
Moreover, these stocks flew higher earlier this year on enthusiasm for artificial intelligence applications. But as results from Alphabet and Microsoft showed last night, the AI spoils aren't being distributed evenly nor broadly just yet.
AI customers are gravitating to Microsoft, cautious on everyone else
Last night, Alphabet and Microsoft released earnings, with somewhat differing cloud computing revenue trajectories. While Microsoft's Azure revenue was strong, accelerating to 29% growth relative to the 26% growth from the prior quarter, Alphabet's Google Cloud growth decelerated markedly to 22.5% growth from 28% in the prior quarter.
Last year's debut of OpenAI's ChatGPT chatbot has ushered in a rush of AI investment. However, from the looks of it, it appears that Microsoft, which has invested heavily in OpenAI and has exclusivity with their capabilities, may be the only one reaping the benefits right now. On Alphabet's conference call, CEO Sundar Pichai noted the cloud slowdown was due to continued optimizations as customers looked to cut costs.
Still, it appears that the market today is reacting more to Alphabet's weaker results than Microsoft's stronger ones. While artificial intelligence applications are definitely getting attention from customers, it appears Microsoft's lead in this race is getting most of the attention. Alphabet is still working on its ChatGPT competitor model called Gemini, which should be out later this year, and which may be why it is getting less attention from cloud customers today.
For companies like C3.ai and Salesforce, their software actually goes up against Microsoft in key areas of business intelligence and enterprise resource planning. But since they don't have their own internal models, it's possible they could lose share to Microsoft's offerings, or even Alphabet's if Alphabet develops more cloud software in-house following the release of Gemini. Meanwhile, Datadog's trajectory is still highly levered to cloud spending in general, and it appears that spend is still muted outside of Microsoft.
Earlier this week, analysts at Piper Sandler downgraded Salesforce to neutral from overweight due to the uncertainty around Salesforce's ability to monetize AI features. Meanwhile, Datadog was initiated at Guggenheim earlier this week with a neutral rating, with analysts there citing the muted macroeconomic environment, as well as channel checks suggesting customers were complaining about unreasonable bills from the company. That could suggest price cuts or more churn ahead.
And of course, no big move in the market would be complete without a discussion of Treasury bond rates. After two days of declines as Treasury yields backed off from the 5% mark, Treasury yields were up again today, rising 11 basis points to 4.95% as of this writing.
It has been like clockwork that tech stocks tend to move in the opposite direction of bond yields these days. So, it's no surprise Treasury yields' bounce off the recent decline is negatively impacting tech stocks today.
AI is becoming a "show me the money" story
While the initial AI rush propelled a broad range of technology stocks higher this year, investors are now looking for financial impacts from this exciting new technology. However, as Microsoft and Google's results show, the benefits aren't being shared broadly among all tech names.
Moreover, with C3.ai and Datadog still inking net losses and Salesforce trading at a relatively high trailing P/E ratio, it's no surprise to see these stocks selling off as bond yields rise. Moreover, the benefits of AI may be in the early stages, but it's also a possibility that AI winners may ultimately be a smaller group than thought earlier in 2023.
10 stocks we like better than Salesforce
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Salesforce wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 23, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Billy Duberstein has positions in Alphabet and Microsoft. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Alphabet, Datadog, Microsoft, and Salesforce. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of cloud and artificial intelligence (AI)-related software stocks C3.ai (NYSE: AI), Salesforce (NYSE: CRM), and Datadog (NASDAQ: DDOG) were plunging today, down 6%, 3.6%, and 6.5%, respectively, as of 3:03 p.m. On Alphabet's conference call, CEO Sundar Pichai noted the cloud slowdown was due to continued optimizations as customers looked to cut costs. Meanwhile, Datadog was initiated at Guggenheim earlier this week with a neutral rating, with analysts there citing the muted macroeconomic environment, as well as channel checks suggesting customers were complaining about unreasonable bills from the company.
|
Shares of cloud and artificial intelligence (AI)-related software stocks C3.ai (NYSE: AI), Salesforce (NYSE: CRM), and Datadog (NASDAQ: DDOG) were plunging today, down 6%, 3.6%, and 6.5%, respectively, as of 3:03 p.m. While Microsoft's Azure revenue was strong, accelerating to 29% growth relative to the 26% growth from the prior quarter, Alphabet's Google Cloud growth decelerated markedly to 22.5% growth from 28% in the prior quarter. AI is becoming a "show me the money" story While the initial AI rush propelled a broad range of technology stocks higher this year, investors are now looking for financial impacts from this exciting new technology.
|
Shares of cloud and artificial intelligence (AI)-related software stocks C3.ai (NYSE: AI), Salesforce (NYSE: CRM), and Datadog (NASDAQ: DDOG) were plunging today, down 6%, 3.6%, and 6.5%, respectively, as of 3:03 p.m. AI customers are gravitating to Microsoft, cautious on everyone else Last night, Alphabet and Microsoft released earnings, with somewhat differing cloud computing revenue trajectories. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
|
Shares of cloud and artificial intelligence (AI)-related software stocks C3.ai (NYSE: AI), Salesforce (NYSE: CRM), and Datadog (NASDAQ: DDOG) were plunging today, down 6%, 3.6%, and 6.5%, respectively, as of 3:03 p.m. Alphabet is still working on its ChatGPT competitor model called Gemini, which should be out later this year, and which may be why it is getting less attention from cloud customers today. The Motley Fool has positions in and recommends Alphabet, Datadog, Microsoft, and Salesforce.
|
a17d225b-2961-46a6-a6bc-2b9f75914571
|
718029.0
|
2023-10-25 00:00:00 UTC
|
The top 3 stocks insiders are selling, but you shouldn’t
|
DDOG
|
https://www.nasdaq.com/articles/the-top-3-stocks-insiders-are-selling-but-you-shouldnt
|
nan
|
nan
|
Insider selling can signal horrible things to come for stock prices but is not always a harbinger of doom. Share-based compensation is a common practice among publicly traded and private corporations and can result in an active insider market. Remember, insiders aren’t allowed to sell their shares at will; they are restricted by Federal, state, and exchange regulations that could land them in jail for making knee-jerk inside trades that front-run the market.
The stocks we’re looking at today fall into that category: stocks with actively selling insiders caused by share-based compensation, but that is the worst that can be said. All 3 have solid businesses and an outlook for shareholder returns that makes them attractive opportunities.
Unity Software flexes pricing power
Unity Software (NYSE: U) received some mixed coverage following its announcement about prices. The company is altering its pricing structure in favor of revenue growth, which has some analysts concerned it will drive game-development business away. What investors should be aware of is that fees only impact new clients using premium services whose games cross two significant thresholds. Ultimately, only games with high volume will be charged, and those games require more resources to operate.
The caveat regarding the analysts' downgrades is that for every negative comment, there is a positive, and the sentiment in the stock is holding firm. Insidertrades.com tracks 19 analysts with current ratings that have the stock pegged at firm Hold, verging on Moderate Buy with an equally firm price target. That target assumes a 60% upside from current stock price levels.
Unity insiders made 17 sales over the past 90 days. The sales are by 11 insiders, including several C-suite execs and directors. The sales are small and regular, consistent with share-based compensation, and leave insider holdings at a still-robust 9%. The worry is from the institutional angle. The institutions sold heavily in Q3 and may continue to do so in Q4. The caveat for bears is that this company is expected to grow revenue by 20% this year to the next, and the estimates may be too low. The company has outperformed regularly, and the new fees, which take effect in January 2024, have yet to be factored in.
Proctor & Gamble's inside sales are no worry for investors
Proctor & Gamble’s (NYSE: PG) insider sales are even less of a worry than Unity Software’s, and there is little reason to worry about Unity Software. For 1, Proctor & Gamble insiders own a meager 0.17% of the stock, so have little impact on the market other than sentiment. Their sales are consistent with shares received as compensation and should be expected to continue. Unlike Unity, institutions are buying Proctor & Gamble in bulk. Institutions own about 64% of the stock, and their buying is consistent with the upward bias in the price action.
One reason the institutions are buying is Proctor & Gamble’s results, another is the dividend, and yet another is the value. Trading at 23X earnings, it is no value compared to the broad S&P 500, but it is fairly valued for a top-shelf consumer staple stock with a yield near 2.5%. The distribution is reliable at 60% of earnings for this Dividend King, and there is growth in the forecast. The Q3 results were better than expected, including widening margins and favorable guidance that has analysts raising their estimates.
Datadog insiders sell, institutions buy
Datadog (NASDAQ: DDOG) insiders are selling, but their sales are not concerning and are offset by institutions. The insiders own about 15% of the stock, so they have considerable skin in the game, while institutions, which own about 68% of the stock, have been buying all year. Analysts are also bullish on the stock, rating it a Moderate Buy with a price target about 25% above the recent action. There was some worry when the company lowered its FY revenue guidance at the end of Q2, but not enough to sway sentiment; analysts have been raising their targets for Q3 results, which are due out in November.
The article "The top 3 stocks insiders are selling, but you shouldn’t" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog insiders sell, institutions buy Datadog (NASDAQ: DDOG) insiders are selling, but their sales are not concerning and are offset by institutions. Share-based compensation is a common practice among publicly traded and private corporations and can result in an active insider market. The company is altering its pricing structure in favor of revenue growth, which has some analysts concerned it will drive game-development business away.
|
Datadog insiders sell, institutions buy Datadog (NASDAQ: DDOG) insiders are selling, but their sales are not concerning and are offset by institutions. Insidertrades.com tracks 19 analysts with current ratings that have the stock pegged at firm Hold, verging on Moderate Buy with an equally firm price target. Proctor & Gamble's inside sales are no worry for investors Proctor & Gamble’s (NYSE: PG) insider sales are even less of a worry than Unity Software’s, and there is little reason to worry about Unity Software.
|
Datadog insiders sell, institutions buy Datadog (NASDAQ: DDOG) insiders are selling, but their sales are not concerning and are offset by institutions. Proctor & Gamble's inside sales are no worry for investors Proctor & Gamble’s (NYSE: PG) insider sales are even less of a worry than Unity Software’s, and there is little reason to worry about Unity Software. The insiders own about 15% of the stock, so they have considerable skin in the game, while institutions, which own about 68% of the stock, have been buying all year.
|
Datadog insiders sell, institutions buy Datadog (NASDAQ: DDOG) insiders are selling, but their sales are not concerning and are offset by institutions. For 1, Proctor & Gamble insiders own a meager 0.17% of the stock, so have little impact on the market other than sentiment. One reason the institutions are buying is Proctor & Gamble’s results, another is the dividend, and yet another is the value.
|
142f3023-ac58-4312-b295-8e1efe2b7c29
|
718030.0
|
2023-10-24 00:00:00 UTC
|
7 Stocks That AI Predicts Will Soar in 2024
|
DDOG
|
https://www.nasdaq.com/articles/7-stocks-that-ai-predicts-will-soar-in-2024
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has become an invaluable tool for investors seeking an edge in today’s data-driven markets. By analyzing vast amounts of data and identifying patterns and insights that humans cannot, AI empowers investors to make smarter decisions about which stocks to buy, sell, or hold.
As we look ahead to 2024, some of the most promising AI-powered stock-picking platforms use natural language processing to generate actionable predictions. For example, EquBot applies IBM (NYSE:IBM) Watson’s AI to analyze news articles, financial reports, and other unstructured data to forecast returns. It then automatically allocates its AI Powered Equity ETF (NYSEARCA:AIEQ) portfolio based on those predictions.
The key is combining AI with human expertise. Just like humans, even the most advanced AI can make mistakes. However, by acting as a tool rather than a total replacement for human analysis, AI can significantly boost returns.
Today, I’ll be asking Bard for seven stock picks with the prompt, “Hi Bard, I am writing an article about ‘7 Stocks That AI Predicts Will Soar in 2024’. Can you give me some some picks that fit the title?” Then, I will state my opinion on each of these picks. Let’s start!
Twilio (TWLO)
Source: rafapress / Shutterstock.com
Bard: “Twilio (NYSE:TWLO) is a cloud communications platform that allows businesses to add voice, video, and messaging capabilities to their applications. The company is benefiting from the strong growth of the cloud computing market, as well as the increasing demand for customer engagement solutions.”
In my view, Twilio has certainly faced challenges over the past year, with the stock falling more than 86% from its early 2021 highs. Many shareholders who bought into the pandemic-fueled rally have seen the value of their investment drop dramatically. However, after going through a period of consolidation, Twilio now seems to be positioned for a potential turnaround. The stock has been trading sideways in the $50-60 range for a while, which could signal it is finding a bottom.
While growth has undoubtedly slowed from 2020 and 2021 levels, Twilio remains solidly profitable, with Q2 earnings per share coming in at 54 cents, beating estimates by a sizable margin of 24 cents. Additionally, revenue grew 10% in Q2, ahead of expectations. These beats make me very optimistic that Twilio can very well meet analyst expectations of $13 in 2032 earnings per share, and increase of 650% from today’s metrics.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Bard: “Datadog (NASDAQ:DDOG) is a cloud monitoring and analytics platform. The company is benefiting from the increasing demand for cloud-based monitoring and analytics solutions, as well as the growing adoption of DevOps practices.”
Datadog has fallen nearly 55% from all-time highs amid the larger correction in cloud software stocks. However, I believe its premium valuation remains justified given the immense growth potential still ahead. Like Twilio, Datadog is expected to have tremendous earnings growth in the coming years. This appears to be evidenced by the company’s recent revenue growth of 25% in Q2 2023. That’s exceptional growth for a company of its scale.
The company dominates the space alongside Dynatrace (NYSE:DT), but appears to be growing faster due to its comprehensive observability platform. That’s why I think Datadog handily beat estimates in both its top and bottom lines. Still, I would rate this stock as a “hold,” since I believe analysts are being a little too optimistic about data center growth (just like the AI hype trade) right now. If the enthusiasm cools down (as it has been), DDOG stock could be due for a reality check. Thus, I disagree with Bard on this specific stock.
UiPath (PATH)
Source: dennizn / Shutterstock.com
Bard: “UiPath (NYSE:PATH) is a robotic process automation (RPA) software company. RPA is a type of software that automates repetitive tasks performed by humans. UiPath is benefiting from the growing demand for RPA solutions as businesses seek to improve their efficiency and reduce costs.”
While I did badmouth AI’s trajectory in the segment above, I remain bullish on UiPath. That’s because this AI-related name is more focused on robotics, and less focused on text-based AI generators that have dubious pricing power. Plus, unlike many overvalued software stocks today, UiPath now trades at a reasonable valuation of around 7.4-times sales after its plunge from its peak. Despite the tough macro environment impacting new customer acquisition, growth in the company’s existing customer base has remained resilient, with net retention above 121% in Q2.
UiPath also boasts best-in-class gross margins, above 88%. Looking ahead, I’m bullish on robotic process automation as a way for companies to cut costs and boost efficiency. At only $16 per share, PATH offers substantial upside potential, with estimates projecting revenue growth of around 20% and earnings per share doubling by the end of 2028.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
Bard: “Snowflake (NYSE:SNOW) is a cloud-based data warehouse company. The company is benefiting from the increasing demand for data warehousing and analytics solutions, as well as the shift to cloud computing.”
Again, as with DDOG, I’m bearish on Snowflake’s prospects, given its premium valuation. The data warehousing company trades at over 19-times sales despite the speculation around AI’s long-term impact on data center businesses.
I agree, the company is a dominant force in the cloud data warehouse market. But I cannot justify investing in many data center pure plays at today’s prices.
Despite elevated optimism over Snowflake’s growth runway, a lot of risks remain. And if macro conditions deteriorate, businesses may cut spending on data analytics software.
To be fair, Snowflake exhibited resilience in Q2, maintaining strong growth. Plus, secular tailwinds are undeniable, with data becoming increasingly important. However, given its steep valuation, even a slight growth stumble could induce a massive sell-off. Thus, SNOW stock is also a “hold” for me.
Zoom Video Communications (ZM)
Source: Michael Vi / Shutterstock.com
Bard: “Zoom (NASDAQ:ZM) is a cloud-based video conferencing platform. The company is benefiting from the strong demand for video conferencing solutions as businesses and individuals transition to remote work and learning.”
Zoom was one of the poster children of the pandemic stock boom, with shares rising over 700% in 2020 alone. But the stock has since fallen below pre-pandemic levels after peaking in late 2020.
In my view, Zoom still presents a compelling risk/reward proposition for long-term investors. At under $65 per share, Zoom trades at just 14-times forward earnings, a reasonable valuation for a company still growing revenue double-digits. Sure, Zoom’s growth slowed to just 3.6% in Q2 2023. But analysts expect ~7.5% annual sales growth this decade as the work-from-home trend is far from over.
Despite the return to office trend, video conferencing is here to stay. Zoom is now woven into the fabric of business communications. Moreover, the company is successfully expanding into adjacent markets like cloud phones, contact centers, and live events.
Critics argue Zoom’s best days are behind it, and that post-pandemic demand is reverting to normal. There may be some truth to that. But with the stock trading near historic lows, much of this negative outlook appears priced in. For a company still generating free cash flow growth at 31%, Zoom looks attractive for long-term investors at current prices.
Roblox (RBLX)
Source: Michael Vi / Shutterstock.com
Bard: “Roblox (NYSE:RBLX) is an online gaming platform that allows users to create and play games. The company is benefiting from the strong growth of the gaming industry, as well as the increasing popularity of user-generated content.”
As a gaming platform relying on user-generated content, Roblox occupies a unique niche. The company’s Q2 financials were mixed, with revenue growth coming in at 22% but larger-than-expected losses. While the company could potentially disrupt gaming, and even the metaverse, I’m cautious about RBLX stock at $30.
Given the cash burn and unproven business model, Roblox remains a highly speculative investment. The company is still valued at nearly $20 billion despite minimal progress on profitability. That said, Roblox exhibits impressive engagement metrics, including 65.5 million daily active users in Q2. Plus, the business requires minimal capital, given its user-generated gaming platform. I’d rate RBLX stock as a “hold.”
Block (SQ)
Source: Shutterstock
Bard: “Block (NYSE:SQ) is a financial technology company that provides a variety of products and services, including payment processing, point-of-sale systems, and cryptocurrency trading. The company is benefiting from the strong growth of the digital payments market, as well as the increasing adoption of cryptocurrency.”
Trading at 1.3-times forward sales and 26-times forward earnings, Block looks expensive relative to payment peers like PayPal (NASDAQ:PYPL). The company has struggled with macro headwinds yet retains an impressive growth profile. However, the long-term growth prospects here puts this stock firmly ahead of its fintech peers, at least in my book. Revenue is expected to triple by 2033 and EPS could multiply by 9-times over the same timeframe.
With Block, investors gain exposure to some of fintech’s most promising innovations, including cryptocurrency, peer-to-peer payments, BNPL, and more. Yet the stock trades at a sixth of its 2021 highs. I definitely agree with Bard regarding SQ stock, and so do Wall Street analysts, with 73% expected upside in one year.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 7 Stocks That AI Predicts Will Soar in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Bard: “Datadog (NASDAQ:DDOG) is a cloud monitoring and analytics platform. If the enthusiasm cools down (as it has been), DDOG stock could be due for a reality check. The company is benefiting from the increasing demand for data warehousing and analytics solutions, as well as the shift to cloud computing.” Again, as with DDOG, I’m bearish on Snowflake’s prospects, given its premium valuation.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Bard: “Datadog (NASDAQ:DDOG) is a cloud monitoring and analytics platform. If the enthusiasm cools down (as it has been), DDOG stock could be due for a reality check. The company is benefiting from the increasing demand for data warehousing and analytics solutions, as well as the shift to cloud computing.” Again, as with DDOG, I’m bearish on Snowflake’s prospects, given its premium valuation.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Bard: “Datadog (NASDAQ:DDOG) is a cloud monitoring and analytics platform. If the enthusiasm cools down (as it has been), DDOG stock could be due for a reality check. The company is benefiting from the increasing demand for data warehousing and analytics solutions, as well as the shift to cloud computing.” Again, as with DDOG, I’m bearish on Snowflake’s prospects, given its premium valuation.
|
The company is benefiting from the increasing demand for data warehousing and analytics solutions, as well as the shift to cloud computing.” Again, as with DDOG, I’m bearish on Snowflake’s prospects, given its premium valuation. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Bard: “Datadog (NASDAQ:DDOG) is a cloud monitoring and analytics platform. If the enthusiasm cools down (as it has been), DDOG stock could be due for a reality check.
|
b7e507e5-ef1e-44a6-a574-1bf7c2b779fd
|
718031.0
|
2023-10-23 00:00:00 UTC
|
Datadog (DDOG) Falls More Steeply Than Broader Market: What Investors Need to Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-falls-more-steeply-than-broader-market%3A-what-investors-need-to-know
|
nan
|
nan
|
The most recent trading session ended with Datadog (DDOG) standing at $85.68, reflecting a -0.46% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.17%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.27%.
The the stock of data analytics and cloud monitoring company has fallen by 3.02% in the past month, lagging the Computer and Technology sector's loss of 2.16% and overreaching the S&P 500's loss of 3.95%.
The upcoming earnings release of Datadog will be of great interest to investors. The company's earnings report is expected on November 7, 2023. The company is predicted to post an EPS of $0.34, indicating a 47.83% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $523.3 million, showing a 19.88% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.32 per share and a revenue of $2.06 billion, representing changes of +34.69% and +22.75%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Datadog currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 65.39. This expresses a premium compared to the average Forward P/E of 35.87 of its industry.
We can additionally observe that DDOG currently boasts a PEG ratio of 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 1.43 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The most recent trading session ended with Datadog (DDOG) standing at $85.68, reflecting a -0.46% shift from the previouse trading day's closing. We can additionally observe that DDOG currently boasts a PEG ratio of 2.97. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The most recent trading session ended with Datadog (DDOG) standing at $85.68, reflecting a -0.46% shift from the previouse trading day's closing. We can additionally observe that DDOG currently boasts a PEG ratio of 2.97.
|
The most recent trading session ended with Datadog (DDOG) standing at $85.68, reflecting a -0.46% shift from the previouse trading day's closing. We can additionally observe that DDOG currently boasts a PEG ratio of 2.97. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The most recent trading session ended with Datadog (DDOG) standing at $85.68, reflecting a -0.46% shift from the previouse trading day's closing. We can additionally observe that DDOG currently boasts a PEG ratio of 2.97. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
cb05943a-c225-4d49-a43c-17c9b5d50ad8
|
718032.0
|
2023-10-23 00:00:00 UTC
|
Guggenheim Initiates Coverage of Datadog Inc - (DDOG) with Neutral Recommendation
|
DDOG
|
https://www.nasdaq.com/articles/guggenheim-initiates-coverage-of-datadog-inc-ddog-with-neutral-recommendation
|
nan
|
nan
|
Fintel reports that on October 23, 2023, Guggenheim initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation.
Analyst Price Forecast Suggests 25.68% Upside
As of October 5, 2023, the average one-year price target for Datadog Inc - is 108.19. The forecasts range from a low of 70.70 to a high of $139.65. The average price target represents an increase of 25.68% from its latest reported closing price of 86.08.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 19.23%. The projected annual non-GAAP EPS is 1.20.
For more in-depth coverage of Datadog Inc -, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 1260 funds or institutions reporting positions in Datadog Inc -. This is an increase of 6 owner(s) or 0.48% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 17.33%. Total shares owned by institutions decreased in the last three months by 4.66% to 247,688K shares.
The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 10,392K shares representing 3.20% ownership of the company. In it's prior filing, the firm reported owning 6,095K shares, representing an increase of 41.35%. The firm increased its portfolio allocation in DDOG by 117.49% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
ICONIQ Capital holds 7,817K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 13,176K shares, representing a decrease of 68.55%. The firm increased its portfolio allocation in DDOG by 188.67% over the last quarter.
Wcm Investment Management holds 6,292K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 6,204K shares, representing an increase of 1.40%. The firm decreased its portfolio allocation in DDOG by 7.71% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 23, 2023, Guggenheim initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 17.33%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 23, 2023, Guggenheim initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 17.33%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 23, 2023, Guggenheim initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 17.33%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 23, 2023, Guggenheim initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 17.33%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
db5d4251-8cb8-4c36-b0d4-c94ce8146b32
|
718033.0
|
2023-10-23 00:00:00 UTC
|
Nasdaq 100 Movers: TSLA, ISRG
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tsla-isrg
|
nan
|
nan
|
In early trading on Monday, shares of Intuitive Surgical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.8%. Year to date, Intuitive Surgical registers a 4.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 2.7%. Tesla is showing a gain of 67.4% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 1.8%, and Walgreens Boots Alliance, trading up 2.7% on the day.
VIDEO: Nasdaq 100 Movers: TSLA, ISRG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Year to date, Intuitive Surgical registers a 4.4% gain. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 2.7%. VIDEO: Nasdaq 100 Movers: TSLA, ISRG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In early trading on Monday, shares of Intuitive Surgical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.8%. Year to date, Intuitive Surgical registers a 4.4% gain. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 2.7%.
|
In early trading on Monday, shares of Intuitive Surgical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.8%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 2.7%. Two other components making moves today are Datadog, trading down 1.8%, and Walgreens Boots Alliance, trading up 2.7% on the day.
|
In early trading on Monday, shares of Intuitive Surgical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.8%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 2.7%. VIDEO: Nasdaq 100 Movers: TSLA, ISRG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
9ea6a97f-99cc-4535-a15a-55e171557247
|
718034.0
|
2023-10-22 00:00:00 UTC
|
Missed Out on Nvidia? 1 Artificial Intelligence (AI) Stock Could Be the "Fastest-Growing Software Company," According to This Wall Street Analyst
|
DDOG
|
https://www.nasdaq.com/articles/missed-out-on-nvidia-1-artificial-intelligence-ai-stock-could-be-the-fastest-growing
|
nan
|
nan
|
Semiconductor company Nvidia (NASDAQ: NVDA) sits at the heart of the artificial intelligence (AI) revolution. Analysts estimate its market share in machine learning processors to be between 80% and 95%, and the chipmaker reinforced its authority by branching into AI software and cloud services. Investors have recognized Nvidia's success and pushed its stock price up 250% in the last year. The company is now worth north of $1 trillion.
When you factor in the law of large numbers, it suggests that other, smaller stocks offer more upside potential at this point than Nvidia. That's just one of the reasons investors should consider Datadog (NASDAQ: DDOG) instead.
Morgan Stanley analyst Sanjit Singh sees Datadog as one of the software companies best positioned to benefit from generative AI, and Wolfe Research analyst Alex Zukin believes Datadog could become the "fastest-growing software company" amid the AI boom.
Here's what investors should know about AI growth stock Datadog.
Datadog is a leader in AI for IT operations
Datadog specializes in observability and cybersecurity software for development, operations, and security teams. Its platform collects data from across the enterprise technology stack to provide real-time visibility into applications, networks, and infrastructure, helping clients identify and resolve performance problems and security threats.
The Datadog platform also leans on artificial intelligence (AI) to detect anomalies, automate root cause analysis, and surface contextual insights, all of which accelerate investigative workflows. Prowess in data science won Datadog recognition as a leader in AI for IT operations from Forrester Research. The company also distinguished itself as a leader in other software verticals, including application performance monitoring, log monitoring, and network monitoring.
Despite difficult macroeconomic conditions, Datadog reported solid financial results in the second quarter. Its customer count increased 23% year over year to 26,100, and the average customer spent north of 20% more over the past year. In turn, second-quarter revenue increased 25% year over year to $510 million, and non-GAAP (generally accepted accounting principles) net income climbed 50% to $125 million.
Going forward, investors have good reason to believe Datadog can maintain (or even accelerate) its growth trajectory. Its platform includes over two dozen products, but only 21% of customers use six (or more) of those products, creating a substantial upsell opportunity. The broad scope of the Datadog platform is also a persuasive lure for new customers, especially those looking to consolidate observability spend through a single vendor.
On that note, management sees its market opportunity rising from $45 billion in 2023 to $62 billion in 2026, and growing demand for AI should be a powerful tailwind for the company.
Datadog is leaning into artificial intelligence
Any technology that makes corporate IT environments more complex makes performance monitoring more critical, so Datadog stands to benefit greatly from growing adoption of AI. The company is leaning into that tailwind with recently announced integrations and products, including Bits and LLM Observability.
Bits is a generative AI assistant that expedites the resolution of performance problems. Its conversational interface makes it easy for clients to gather insights and investigate issues. Bits can also suggest automated code fixes and trigger relevant workflows to accelerate remediation.
LLM Observability is a monitoring solution for large language models (LLMs). It helps clients detect and resolve problems like model hallucinations and model drift, terms that refer to nonsensical outputs and performance degradation, respectively, in generative AI applications.
More broadly, the Datadog platform supports end-to-end monitoring of the AI stack. Its platform integrates with infrastructure from vendors like Nvidia, vector databases like Pinecone, model development tools like Amazon SageMaker, and AI models themselves like LLMs from OpenAI.
Why Datadog stock is worth buying
Whether Datadog becomes the fastest-growing software company is somewhat irrelevant, though that commentary from Zukin certainly hints at high conviction. What actually matters is that Datadog has a strong presence in a large and growing market, and investors can confidently expect annual revenue growth in the mid-20% range in the coming years.
Indeed, Morgan Stanley forecasts annual revenue growth of 25% for Datadog through 2025. That makes its current valuation of 14.5 times sales look reasonable, and that multiple is certainly a bargain compared to the three-year average of 33.9 times sales. Risk-tolerant investors should consider buying a small position in this growth stock today.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 16, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com and Nvidia. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That's just one of the reasons investors should consider Datadog (NASDAQ: DDOG) instead. Its platform collects data from across the enterprise technology stack to provide real-time visibility into applications, networks, and infrastructure, helping clients identify and resolve performance problems and security threats. The Datadog platform also leans on artificial intelligence (AI) to detect anomalies, automate root cause analysis, and surface contextual insights, all of which accelerate investigative workflows.
|
That's just one of the reasons investors should consider Datadog (NASDAQ: DDOG) instead. Morgan Stanley analyst Sanjit Singh sees Datadog as one of the software companies best positioned to benefit from generative AI, and Wolfe Research analyst Alex Zukin believes Datadog could become the "fastest-growing software company" amid the AI boom. Its platform collects data from across the enterprise technology stack to provide real-time visibility into applications, networks, and infrastructure, helping clients identify and resolve performance problems and security threats.
|
That's just one of the reasons investors should consider Datadog (NASDAQ: DDOG) instead. Morgan Stanley analyst Sanjit Singh sees Datadog as one of the software companies best positioned to benefit from generative AI, and Wolfe Research analyst Alex Zukin believes Datadog could become the "fastest-growing software company" amid the AI boom. Datadog is leaning into artificial intelligence Any technology that makes corporate IT environments more complex makes performance monitoring more critical, so Datadog stands to benefit greatly from growing adoption of AI.
|
That's just one of the reasons investors should consider Datadog (NASDAQ: DDOG) instead. Morgan Stanley analyst Sanjit Singh sees Datadog as one of the software companies best positioned to benefit from generative AI, and Wolfe Research analyst Alex Zukin believes Datadog could become the "fastest-growing software company" amid the AI boom. Here's what investors should know about AI growth stock Datadog.
|
73cbe2b8-9a98-4e58-83fb-e320edc3250c
|
718035.0
|
2023-10-20 00:00:00 UTC
|
Look Under The Hood: PBUS Has 19% Upside
|
DDOG
|
https://www.nasdaq.com/articles/look-under-the-hood%3A-pbus-has-19-upside
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco MSCI USA ETF (Symbol: PBUS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $50.76 per unit.
With PBUS trading at a recent price near $42.65 per unit, that means that analysts see 19.01% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), Equifax Inc (Symbol: EFX), and Blackstone Inc (Symbol: BX). Although DDOG has traded at a recent price of $87.75/share, the average analyst target is 21.15% higher at $106.31/share. Similarly, EFX has 20.37% upside from the recent share price of $178.98 if the average analyst target price of $215.44/share is reached, and analysts on average are expecting BX to reach a target price of $113.40/share, which is 20.36% above the recent price of $94.22. Below is a twelve month price history chart comparing the stock performance of DDOG, EFX, and BX:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco MSCI USA ETF PBUS $42.65 $50.76 19.01%
Datadog Inc DDOG $87.75 $106.31 21.15%
Equifax Inc EFX $178.98 $215.44 20.37%
Blackstone Inc BX $94.22 $113.40 20.36%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
BBU Options Chain
DIBS shares outstanding history
UIS YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Invesco MSCI USA ETF PBUS $42.65 $50.76 19.01% Datadog Inc DDOG $87.75 $106.31 21.15% Equifax Inc EFX $178.98 $215.44 20.37% Blackstone Inc BX $94.22 $113.40 20.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), Equifax Inc (Symbol: EFX), and Blackstone Inc (Symbol: BX). Although DDOG has traded at a recent price of $87.75/share, the average analyst target is 21.15% higher at $106.31/share.
|
Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), Equifax Inc (Symbol: EFX), and Blackstone Inc (Symbol: BX). Invesco MSCI USA ETF PBUS $42.65 $50.76 19.01% Datadog Inc DDOG $87.75 $106.31 21.15% Equifax Inc EFX $178.98 $215.44 20.37% Blackstone Inc BX $94.22 $113.40 20.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although DDOG has traded at a recent price of $87.75/share, the average analyst target is 21.15% higher at $106.31/share.
|
Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), Equifax Inc (Symbol: EFX), and Blackstone Inc (Symbol: BX). Although DDOG has traded at a recent price of $87.75/share, the average analyst target is 21.15% higher at $106.31/share. Below is a twelve month price history chart comparing the stock performance of DDOG, EFX, and BX: Below is a summary table of the current analyst target prices discussed above:
|
Invesco MSCI USA ETF PBUS $42.65 $50.76 19.01% Datadog Inc DDOG $87.75 $106.31 21.15% Equifax Inc EFX $178.98 $215.44 20.37% Blackstone Inc BX $94.22 $113.40 20.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), Equifax Inc (Symbol: EFX), and Blackstone Inc (Symbol: BX). Although DDOG has traded at a recent price of $87.75/share, the average analyst target is 21.15% higher at $106.31/share.
|
d5bf7ac6-c423-4a01-b02d-4c377693f734
|
718036.0
|
2023-10-19 00:00:00 UTC
|
Guru Fundamental Report for DDOG
|
DDOG
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-17
|
nan
|
nan
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
|
8fe680e3-293a-4944-a783-ba683703c1ed
|
718037.0
|
2023-10-18 00:00:00 UTC
|
Alkami (ALKT) Surges 5.5%: Is This an Indication of Further Gains?
|
DDOG
|
https://www.nasdaq.com/articles/alkami-alkt-surges-5.5%3A-is-this-an-indication-of-further-gains
|
nan
|
nan
|
Alkami Technology ALKT shares rallied 5.5% in the last trading session to close at $18.55. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1% loss over the past four weeks.
The upswing in share prices can be attributed to Alkemi's growing brand awareness and expanding clientele. In second-quarter 2023, ALKT added 10 new digital banking platform clients.
This provider of digital banking services is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $67.47 million, up 26.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Alkami, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ALKT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Alkami is a member of the Zacks Internet - Software industry. One other stock in the same industry, Datadog DDOG, finished the last trading session 0.1% lower at $90.41. DDOG has returned -4.2% over the past month.
Datadog's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.34. Compared to the company's year-ago EPS, this represents a change of +47.8%. Datadog currently boasts a Zacks Rank of #1 (Strong Buy).
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
One other stock in the same industry, Datadog DDOG, finished the last trading session 0.1% lower at $90.41. DDOG has returned -4.2% over the past month. Click to get this free report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock in the same industry, Datadog DDOG, finished the last trading session 0.1% lower at $90.41. DDOG has returned -4.2% over the past month.
|
Click to get this free report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock in the same industry, Datadog DDOG, finished the last trading session 0.1% lower at $90.41. DDOG has returned -4.2% over the past month.
|
One other stock in the same industry, Datadog DDOG, finished the last trading session 0.1% lower at $90.41. DDOG has returned -4.2% over the past month. Click to get this free report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
7ff20ae2-1b41-471d-b532-e5a79df42425
|
718038.0
|
2023-10-17 00:00:00 UTC
|
Datadog (DDOG) Registers a Bigger Fall Than the Market: Important Facts to Note
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-registers-a-bigger-fall-than-the-market%3A-important-facts-to-note
|
nan
|
nan
|
Datadog (DDOG) closed the most recent trading day at $90.41, moving -0.12% from the previous trading session. This change lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.25%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 4.21% over the past month, lagging the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.34, indicating a 47.83% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $523.3 million, indicating a 19.88% increase compared to the same quarter of the previous year.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $2.06 billion. These results would represent year-over-year changes of +34.69% and +22.75%, respectively.
Investors might also notice recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Datadog boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 68.76. This valuation marks a premium compared to its industry's average Forward P/E of 36.85.
It's also important to note that DDOG currently trades at a PEG ratio of 3.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.52.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) closed the most recent trading day at $90.41, moving -0.12% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $2.06 billion. It's also important to note that DDOG currently trades at a PEG ratio of 3.12.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) closed the most recent trading day at $90.41, moving -0.12% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $2.06 billion.
|
Datadog (DDOG) closed the most recent trading day at $90.41, moving -0.12% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $2.06 billion. It's also important to note that DDOG currently trades at a PEG ratio of 3.12.
|
Datadog (DDOG) closed the most recent trading day at $90.41, moving -0.12% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $2.06 billion. It's also important to note that DDOG currently trades at a PEG ratio of 3.12.
|
981b1cff-e33b-41ea-90fb-fc85ce29c2b9
|
718039.0
|
2023-10-17 00:00:00 UTC
|
3 Cybersecurity Stocks to Buy Amid Rising Vulnerabilities
|
DDOG
|
https://www.nasdaq.com/articles/3-cybersecurity-stocks-to-buy-amid-rising-vulnerabilities
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While nothing can be taken for granted in the capital market, the concept of the top cybersecurity stocks to buy practically sells itself. Fundamentally, the pace of connectivity is only increasing. And though most of the endeavors online focus on productive pursuits, there will always be nefarious actors.
According to information compiled by Cybercrime Magazine, digital breaches of all varieties will cost the globe $10.5 trillion annually by 2025. Indeed, some experts have warned that such a vulnerability represents the greatest transfer of economic wealth in history. Worse yet, it’s not just empty doom-and-gloom speculation.
Recently, consumer goods giant Clorox (NYSE:CLX) revealed the extent of the damage it suffered from a cyberattack earlier this year. Unfortunately, the breach caused widescale disruption to Clorox’s operations, leading to a sharp exit among investors.
Essentially, it’s no time for enterprises to go cheap on their digital protection. And on that note, below are the top cybersecurity stocks to buy.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Pioneering the concept of next-generation firewalls, Palo Alto Networks (NASDAQ:PANW) easily ranks among the top cybersecurity stocks to buy. In particular, these advanced firewalls inspect the content of incoming traffic and identify the applications being used. Therefore, the company is able to enforce protective policies based on applications rather than merely ports or IP addresses, which can be spoofed.
Not surprisingly, PANW is a favorite among cybersecurity stocks. Since the beginning of the year, shares swung up nearly 89%. To be fair, the skyrocketing in 2023 has come at a cost. Right now, shares trade at 207.56X trailing earnings, considerably more than the underlying software industry (at 26.23x).
Still, the demand profile for Palo Alto will probably steadily increase. Notably, its three-year revenue growth rate comes in at 19.8%, above 73% of its peers. Analysts rate PANW a consensus strong buy with a $279.94 price target, implying over 7% upside potential.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
While not ranking among the top cybersecurity stocks from a traditional perspective, Datadog (NASDAQ:DDOG) provides critical observability services for modern cloud environments. With the cloud computing sector in the U.S. projected to reach $458.45 billion by 2032 according to Precedence Research, DDOG symbolizes one of the most relevant investments.
Moreover, as the company’s website states, Datadog primarily specializes in real-time monitoring and alerts. This coverage not only includes system performances but also tracks anomalies and potential security breaches. Given that quick detection of problems can help identify and mitigate issues before they become full-blown crises, it’s no wonder that DDOG jumped nearly 30% in the trailing six months.
To be fair, investors who jump aboard Datadog now will be doing so at a premium. Currently, shares trade with forward earnings multiple of 55.85x, ranked worse than 83% of the sector. However, for that valuation, you also get an impressive three-year revenue growth rate of 27%.
Lastly, analysts peg DDOG as a moderate buy with a $107.88 target, implying over 19% growth.
Fortinet (FTNT)
Source: Sundry Photography / Shutterstock.com
Headquartered in Sunnyvale, California, Fortinet (NASDAQ:FTNT) develops and sells security solutions like firewalls, endpoint security, and intrusion detection systems. Specifically, the company’s flagship offering is the Fortinet Security Fabric, a holistic approach that connects various security solutions into a single integrated platform. Under this umbrella, the technology specialist is able to offer unified visibility and automated protection for an enterprise client’s entire digital infrastructure.
Easily one of the most relevant cybersecurity stocks to buy, FTNT gained nearly 22% since the start of the year. Nevertheless, it’s arguably running a discount. In early August, management disclosed its results for the second quarter, which were mixed. Worse yet, the company lowered its outlook for the year. However, as cyber threats continue to rise in scope and scale, this pessimistic framework may shift positively.
As with the other market ideas, FTNT trading at 44.5x trailing earnings isn’t cheap. However, it also sports a robust three-year revenue growth rate of 30.4%, above 84.5% of its rivals. Finally, analysts rate FTNT a strong buy with a $75.77 target, implying over 28% upside.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Cybersecurity Stocks to Buy Amid Rising Vulnerabilities appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com While not ranking among the top cybersecurity stocks from a traditional perspective, Datadog (NASDAQ:DDOG) provides critical observability services for modern cloud environments. With the cloud computing sector in the U.S. projected to reach $458.45 billion by 2032 according to Precedence Research, DDOG symbolizes one of the most relevant investments. Given that quick detection of problems can help identify and mitigate issues before they become full-blown crises, it’s no wonder that DDOG jumped nearly 30% in the trailing six months.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com While not ranking among the top cybersecurity stocks from a traditional perspective, Datadog (NASDAQ:DDOG) provides critical observability services for modern cloud environments. With the cloud computing sector in the U.S. projected to reach $458.45 billion by 2032 according to Precedence Research, DDOG symbolizes one of the most relevant investments. Given that quick detection of problems can help identify and mitigate issues before they become full-blown crises, it’s no wonder that DDOG jumped nearly 30% in the trailing six months.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com While not ranking among the top cybersecurity stocks from a traditional perspective, Datadog (NASDAQ:DDOG) provides critical observability services for modern cloud environments. With the cloud computing sector in the U.S. projected to reach $458.45 billion by 2032 according to Precedence Research, DDOG symbolizes one of the most relevant investments. Given that quick detection of problems can help identify and mitigate issues before they become full-blown crises, it’s no wonder that DDOG jumped nearly 30% in the trailing six months.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com While not ranking among the top cybersecurity stocks from a traditional perspective, Datadog (NASDAQ:DDOG) provides critical observability services for modern cloud environments. With the cloud computing sector in the U.S. projected to reach $458.45 billion by 2032 according to Precedence Research, DDOG symbolizes one of the most relevant investments. Given that quick detection of problems can help identify and mitigate issues before they become full-blown crises, it’s no wonder that DDOG jumped nearly 30% in the trailing six months.
|
f01907c5-ef5b-4238-86dc-537269bdeb8e
|
718040.0
|
2023-10-17 00:00:00 UTC
|
3 Software Stocks Analysts Like Better Than Palantir
|
DDOG
|
https://www.nasdaq.com/articles/3-software-stocks-analysts-like-better-than-palantir
|
nan
|
nan
|
Shares of Palantir (PLTR), the enterprise software company, have been on a tear so far this year. Fueled by its artificial intelligence (AI) ambitions, strong earnings, and recent contract wins, Palantir's stock price has rallied 175% on a YTD basis.
That said, its present valuations are looking a bit stretched as a result, to put it mildly. Key metrics, like forward price/earnings (76.42), price/sales (16.87), and price/cash flow (74.61) all exceed sector medians by a considerable margin. Moreover, PLTR has an overall rating of “Hold” from analysts - and the mean target price of $13.81 actually denotes expected downside potential of more than 21% from current levels.
www.barchart.com
With Palantir potentially overpriced at current levels, here we'll discuss three other stocks from the software industry that analysts like better - all with an average rating of buy or better, and 17% upside potential or more from current levels.
Confluent
Founded in 2014 and based out of Mountain View, Calif., Confluent (CFLT) provides a unified platform for building and running real-time applications. Its notable clients include Netflix (NFLX), Airbnb (ABNB), and Uber (UBER). Its platform is used by companies for fraud detection, customer recommendation systems, and data processing, among other applications.
Commanding a market cap of $9.18 billion, Confluent's share price is 37.7% on a YTD basis.
www.barchart.com
The company's latest earnings results were strong, as revenues moved higher. Revenues for the quarter came in at $189.3 million, up 36% from the prior year. Meanwhile, adjusted earnings were breakeven on a per-share basis, which marked an improvement from the previous year's loss of $0.16 per share. In fact, the company's bottom line has exceeded expectations in each of the past five quarters.
Key metrics, like remaining performance obligations (up 78% YoY) and customers with ARR greater than $100,000 (up 33% YoY), also improved.
Meanwhile, to corner a larger chunk of its $60 billion addressable market, Confluent is building a comprehensive Data Streaming Platform that uses five integrated processes of streaming, connecting, governing, processing, and sharing. Confluent has already started monetizing these components by starting a freemium licensing/subscription to increase engagement and revenue.
Analysts have assigned a “Moderate Buy” rating on the stock, with a mean target price of $37.68. This indicates an upside potential of nearly 23% from current levels. Out of 25 analysts covering the stock, 14 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 10 have a “Hold” rating.
www.barchart.com
UiPath
Low-code robotic process automation (RPA) platform developer UiPath (PATH) was founded in 2005, and is headquartered in New York City. It enables organizations to automate repetitive tasks performed by humans to improve efficiency and accuracy and reduce costs. The company currently commands a market cap of $9.18 billion.
UiPath stock is up 30.2% in 2023 so far.
www.barchart.com
In Q2 2023, UiPath reported revenues of $287.3 million, a yearly increase of 18.6%, while the EPS of $0.09 compared favorably to a loss of $0.02 per share in the year-ago period. Moreover, the EPS came in above the consensus estimate of $0.04 per share. Notably, UiPath's annualized renewal run rate (ARR) of $1.31 billion also improved by 25% from the prior year. Remaining performance obligations, meanwhile, rose by 28% yearly to $905 million.
UiPath expects its product portfolio to benefit immensely from the generative AI revolution, as evidenced by its latest earnings presentation. Coupled with the company's recent strategic shift towards cloud-based offerings (cloud ARR recently crossed $500 million, up 125% YoY), should bode well for future growth.
Overall, analysts have pinned a “Moderate Buy” rating on the stock, with a mean target price of $19.57 - indicating an upside potential of 18% from current levels. Out of 16 analysts covering the stock, 5 have a “Strong Buy,” 1 has a “Moderate Buy,” and 10 have a “Hold” rating.
www.barchart.com
Datadog
We round out our list with cloud applications monitoring and analytics platform Datadog (DDOG). Datadog was founded in 2010 in New York City, and it provides a unified view of infrastructure, applications, and services, enabling DevOps teams to troubleshoot problems quickly and scale their operations efficiently.
The company currently commands a market cap of $29.42 billion, and Datadog's share price is up 23.2% on a YTD basis.
www.barchart.com
Datadog reported second-quarter revenues of $509.5 million, up 25% from the prior year, while EPS jumped 50% to $0.36. The company's EPS topped consensus estimates, as did revenue.
Customers with an ARR of more than $100,000 rose to 2,990 from 2,420 in the previous year. Further, the company also saw an improvement in free cash flows (up 135.6% YoY) and free cash flow margins (28% vs 15% in Q2 2022).
Datadog has also been making moves in the arena of generative AI, as it recently launched the Bits AI assistant, which learns from customers' observability data and helps engineers resolve application issues in real-time. Also, Datadog has been slowly making strides in the security business, as over 5,000 customers have adopted Datadog's security products, and 79 customers spent more than $100,000 in Q2 2023.
Analysts have an average “Moderate Buy” rating on the stock, with a mean target price of $106.31. This denotes an upside potential of about 17% from current levels. Out of 32 analysts covering the stock, 20 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating and 9 have a “Hold” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
www.barchart.com Datadog We round out our list with cloud applications monitoring and analytics platform Datadog (DDOG). Fueled by its artificial intelligence (AI) ambitions, strong earnings, and recent contract wins, Palantir's stock price has rallied 175% on a YTD basis. www.barchart.com In Q2 2023, UiPath reported revenues of $287.3 million, a yearly increase of 18.6%, while the EPS of $0.09 compared favorably to a loss of $0.02 per share in the year-ago period.
|
www.barchart.com Datadog We round out our list with cloud applications monitoring and analytics platform Datadog (DDOG). Out of 25 analysts covering the stock, 14 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 10 have a “Hold” rating. The company currently commands a market cap of $29.42 billion, and Datadog's share price is up 23.2% on a YTD basis.
|
www.barchart.com Datadog We round out our list with cloud applications monitoring and analytics platform Datadog (DDOG). www.barchart.com With Palantir potentially overpriced at current levels, here we'll discuss three other stocks from the software industry that analysts like better - all with an average rating of buy or better, and 17% upside potential or more from current levels. Out of 25 analysts covering the stock, 14 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 10 have a “Hold” rating.
|
www.barchart.com Datadog We round out our list with cloud applications monitoring and analytics platform Datadog (DDOG). Moreover, PLTR has an overall rating of “Hold” from analysts - and the mean target price of $13.81 actually denotes expected downside potential of more than 21% from current levels. Key metrics, like remaining performance obligations (up 78% YoY) and customers with ARR greater than $100,000 (up 33% YoY), also improved.
|
ccbd01f9-ff8d-447f-b73d-f06bde8fa823
|
718041.0
|
2023-10-17 00:00:00 UTC
|
Zacks Industry Outlook Highlights Palo Alto Networks, Datadog and Pinterest
|
DDOG
|
https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-palo-alto-networks-datadog-and-pinterest
|
nan
|
nan
|
For Immediate Release
Chicago, IL – October 17, 2023 – Today, Zacks Equity Research discusses Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS.
Industry: Internet Software
Link: https://www.zacks.com/commentary/2166423/3-internet-software-stocks-to-buy-from-a-prospering-industry
The Zacks Internet Software industry is benefiting from accelerated demand for digital transformation and the ongoing shift to the cloud, as well as the rapid evolution of the Metaverse. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks, Datadog and Pinterest.
The growing demand for solutions that support hybrid operating environments is noteworthy. Robust IT spending on software is another positive for industry participants. However, industry players are suffering from increased geopolitical risks due to the Russia-Ukraine conflict, higher wage inflation, currency fluctuations and pandemic-induced supply-chain disruptions.
Industry Description
The Zacks Internet Software industry comprises companies offering application performance monitoring, as well as infrastructure and application software, DevOps deployment, and Security software. Industry participants offer multi-cloud application security and delivery, social networking, online payment, and 3D printing applications and solutions. They use the SaaS-based cloud computing model to deliver solutions to end-users, as well as enterprises. Hence, subscription is the primary revenue source.
Advertising is also a major revenue source. Industry participants target a variety of end markets, including banking and financial services, service providers, federal governments, and animal health technology and services.
3 Trends Shaping the Future of the Internet Software Industry
Adoption of SaaS Growing: The industry is benefiting from the continued demand for digital transformation. Growth prospects are alluring, primarily due to the rapid adoption of SaaS, which offers a flexible and cost-effective delivery method of applications. It also cuts down on deployment time compared with legacy systems. SaaS attempts to deliver applications to any user, anywhere, anytime and on any device. It has been effective in addressing customer expectations of seamless communications across multiple channels, including voice, chat, email, web, social media and mobile.
This increases customer satisfaction and raises the retention rate, driving the top lines of industry participants. Moreover, the SaaS delivery model has supported the industry participants to deliver software applications amid the coronavirus-led lockdowns and shelter-in-place guidance. Remote working, learning and diagnosis have also boosted the demand for SaaS-based software applications.
Pay-As-You-Go Model Gaining Traction: The increasing customer-centric approach is allowing end-users to perform all required actions with minimal intervention from software providers. The pay-as-you-go model helps Internet Software providers scale their offerings per the needs of different users. The subscription-based business model ensures recurring revenues for the industry participants. The affordability of the SaaS delivery model, particularly for small and medium-sized businesses, is another major driver. The cloud-based applications are easy to use. Hence, the need for specialized training is reduced significantly, which lowers expenses, thereby driving profits.
Ongoing Transition to Cloud Creating Opportunities: Additionally, the growing need to secure cloud platforms amid the growing incidences of cyber-attacks and hacking drives the demand for web-based cyber security software. Further, as enterprises continue to move their on-premise workload to cloud environments, application and infrastructure monitoring is gaining importance. This is increasing the demand for web-based performance management monitoring tools.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Internet Software industry, placed within the broader Zacks Computer And Technology sector, carries a Zacks Industry Rank #69, which places it in the top 27% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s earnings estimates for 2023 have moved up 85.7% since Dec 31, 2022.
Before we present the top industry picks, it is worth looking at the industry’s shareholder returns and current valuation first.
Industry Lags Sector, Beats S&P 500
The Zacks Internet Software industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 Index in the past year.
The industry has risen 35.4% over this period against the S&P 500 Index’s gain of 18.1% and the broader sector’s growth of 36.4%.
Industry's Current Valuation
On the basis of trailing 12-month price-to-sales (P/S), which is a commonly used multiple for valuing Internet Software stocks, we see that the industry is currently trading at 2.69X compared with the S&P 500’s 3.71X and the sector’s trailing 12-month P/S of 4.24X.
Over the last three years, the industry has traded as high as 7.24X and as low as 1.63X, with a median of 4.68X.
3 Stocks to Buy Right Now
Datadog- This Zacks Rank #1 (Strong Buy) company is benefiting from customer additions and increased adoption of its cloud-based monitoring and analytics platform, driven by accelerated digital transformation and cloud migration across organizations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver besides an expanding portfolio.
This Delaware, NY-based company’s shares have gained 19.8% in the year-to-date period. The Zacks Consensus Estimate for Datadog’s 2023 earnings has been unchanged at $1.32 per share over the past 30 days.
Palo Alto Networks- This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security.
Shares of this Zacks Rank #1 company have gained 85.9% year to date. The Zacks Consensus Estimate for Palo Alto’s fiscal 2024 earnings is pegged at $5.34 per share, unchanged over the past 30 days.
Pinterest- Another Zacks Rank #1 company, it is benefiting from deepening user engagement on the platform. Focus on improving operational rigor and integration of cutting-edge AI models will likely boost relevancy and personalization.
Pinterest shares have gained 9.6% in the year-to-date period. The Zacks Consensus Estimate for the company’s 2023 earnings is pegged at 96 cents per share, unchanged in the past 30 days.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For Immediate Release Chicago, IL – October 17, 2023 – Today, Zacks Equity Research discusses Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. However, industry players are suffering from increased geopolitical risks due to the Russia-Ukraine conflict, higher wage inflation, currency fluctuations and pandemic-induced supply-chain disruptions.
|
Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 17, 2023 – Today, Zacks Equity Research discusses Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Industry Description The Zacks Internet Software industry comprises companies offering application performance monitoring, as well as infrastructure and application software, DevOps deployment, and Security software.
|
For Immediate Release Chicago, IL – October 17, 2023 – Today, Zacks Equity Research discusses Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry Description The Zacks Internet Software industry comprises companies offering application performance monitoring, as well as infrastructure and application software, DevOps deployment, and Security software.
|
For Immediate Release Chicago, IL – October 17, 2023 – Today, Zacks Equity Research discusses Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks, Datadog and Pinterest.
|
1e38b1ae-172a-46c8-99e9-3ba3d31f08a3
|
718042.0
|
2023-10-16 00:00:00 UTC
|
3 Internet Software Stocks to Buy From a Prospering Industry
|
DDOG
|
https://www.nasdaq.com/articles/3-internet-software-stocks-to-buy-from-a-prospering-industry-0
|
nan
|
nan
|
The Zacks Internet Software industry is benefiting from accelerated demand for digital transformation and the ongoing shift to the cloud, as well as the rapid evolution of the Metaverse. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. The growing demand for solutions that support hybrid operating environments is noteworthy. Robust IT spending on software is another positive for industry participants. However, industry players are suffering from increased geopolitical risks due to the Russia-Ukraine conflict, higher wage inflation, currency fluctuations and pandemic-induced supply-chain disruptions.
Industry Description
The Zacks Internet Software industry comprises companies offering application performance monitoring, as well as infrastructure and application software, DevOps deployment, and Security software. Industry participants offer multi-cloud application security and delivery, social networking, online payment, and 3D printing applications and solutions. They use the SaaS-based cloud computing model to deliver solutions to end-users, as well as enterprises. Hence, subscription is the primary revenue source. Advertising is also a major revenue source. Industry participants target a variety of end markets, including banking and financial services, service providers, federal governments, and animal health technology and services.
3 Trends Shaping the Future of the Internet Software Industry
Adoption of SaaS Growing: The industry is benefiting from the continued demand for digital transformation. Growth prospects are alluring, primarily due to the rapid adoption of SaaS, which offers a flexible and cost-effective delivery method of applications. It also cuts down on deployment time compared with legacy systems. SaaS attempts to deliver applications to any user, anywhere, anytime and on any device. It has been effective in addressing customer expectations of seamless communications across multiple channels, including voice, chat, email, web, social media and mobile. This increases customer satisfaction and raises the retention rate, driving the top lines of industry participants. Moreover, the SaaS delivery model has supported the industry participants to deliver software applications amid the coronavirus-led lockdowns and shelter-in-place guidance. Remote working, learning and diagnosis have also boosted the demand for SaaS-based software applications.
Pay-As-You-Go Model Gaining Traction: The increasing customer-centric approach is allowing end-users to perform all required actions with minimal intervention from software providers. The pay-as-you-go model helps Internet Software providers scale their offerings per the needs of different users. The subscription-based business model ensures recurring revenues for the industry participants. The affordability of the SaaS delivery model, particularly for small and medium-sized businesses, is another major driver. The cloud-based applications are easy to use. Hence, the need for specialized training is reduced significantly, which lowers expenses, thereby driving profits.
Ongoing Transition to Cloud Creating Opportunities: Additionally, the growing need to secure cloud platforms amid the growing incidences of cyber-attacks and hacking drives the demand for web-based cyber security software. Further, as enterprises continue to move their on-premise workload to cloud environments, application and infrastructure monitoring is gaining importance. This is increasing the demand for web-based performance management monitoring tools.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Internet Software industry, placed within the broader Zacks Computer And Technology sector, carries a Zacks Industry Rank #69, which places it in the top 27% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s earnings estimates for 2023 have moved up 85.7% since Dec 31, 2022.
Before we present the top industry picks, it is worth looking at the industry’s shareholder returns and current valuation first.
Industry Lags Sector, Beats S&P 500
The Zacks Internet Software industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 Index in the past year.
The industry has risen 35.4% over this period against the S&P 500 Index’s gain of 18.1% and the broader sector’s growth of 36.4%.
One-Year Price Performance
Industry's Current Valuation
On the basis of trailing 12-month price-to-sales (P/S), which is a commonly used multiple for valuing Internet Software stocks, we see that the industry is currently trading at 2.69X compared with the S&P 500’s 3.71X and the sector’s trailing 12-month P/S of 4.24X.
Over the last three years, the industry has traded as high as 7.24X and as low as 1.63X, with a median of 4.68X, as the charts below show.
Trailing 12-Month Price-to-Sales (P/S) Ratio
3 Stocks to Buy Right Now
Datadog - This Zacks Rank #1 (Strong Buy) company is benefiting from customer additions and increased adoption of its cloud-based monitoring and analytics platform, driven by accelerated digital transformation and cloud migration across organizations. You can see the complete list of today’s Zacks #1 Rank stocks here.
Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver besides an expanding portfolio.
This Delaware, NY-based company’s shares have gained 19.8% in the year-to-date period. The Zacks Consensus Estimate for Datadog’s 2023 earnings has been unchanged at $1.32 per share over the past 30 days.
Price and Consensus: DDOG
Palo Alto Networks - This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security.
Shares of this Zacks Rank #1 company have gained 85.9% year to date. The Zacks Consensus Estimate for Palo Alto’s fiscal 2024 earnings is pegged at $5.34 per share, unchanged over the past 30 days.
Price and Consensus: PANW
Pinterest - Another Zacks Rank #1 company, it is benefiting from deepening user engagement on the platform. Focus on improving operational rigor and integration of cutting-edge AI models will likely boost relevancy and personalization.
Pinterest shares have gained 9.6% in the year-to-date period. The Zacks Consensus Estimate for the company’s 2023 earnings is pegged at 96 cents per share, unchanged in the past 30 days.
Price and Consensus: PINS
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Price and Consensus: DDOG Palo Alto Networks - This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Price and Consensus: DDOG Palo Alto Networks - This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security.
|
The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Price and Consensus: DDOG Palo Alto Networks - This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
The high demand for Software as a Service or SaaS-based solutions due to the increasing need for remote working, learning and diagnosis software, as well as cybersecurity applications, has been a major driver for players like Palo Alto Networks PANW, Datadog DDOG and Pinterest PINS. Price and Consensus: DDOG Palo Alto Networks - This Santa Clara, CA-based company has been benefiting from continuous deal wins and increasing adoption of its next-generation security platforms, attributable to the rise in remote work environments and the need for stronger security. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
7b0ca20e-78c0-484f-8d15-db3b7305e23e
|
718043.0
|
2023-10-16 00:00:00 UTC
|
Want to Get Richer? 3 Best Stocks to Buy and Hold for the Next Decade
|
DDOG
|
https://www.nasdaq.com/articles/want-to-get-richer-3-best-stocks-to-buy-and-hold-for-the-next-decade-0
|
nan
|
nan
|
A decade might seem to be a long time to commit to holding onto an investment. However, while it may be difficult to identify which stocks will be winners over such a long period, it is definitely not impossible. In fact, companies capable of capitalizing on secular trends such as artificial intelligence (AI), cybersecurity, and observability can prove to be some of the best candidates for a long-term buy-and-hold strategy.
In my view, three stocks -- Nvidia (NASDAQ: NVDA), Datadog (NASDAQ: DDOG), and CrowdStrike (NASDAQ: CRWD) -- seem to fit the bill.
1. Nvidia
AI has ushered in a transformative technological change. In fact, according to Grand View Research, the AI market is projected to expand at a compound annual rate of 37.3% through the end of this decade, from $196.6 billion in 2023 to $1.8 trillion in 2030.
Nvidia stands out as a dominant player in this market, thanks to its advanced AI chips, closed-source CUDA software ecosystem, and a vast developer community of over 2 million. Recently, the company also introduced Nvidia NeMo SteerLM, a software tool that allows developers to customize the responses of large language models to specific real-time applications. Shares of the company are up by nearly 220% so far this year.
Besides AI, Nvidia is also capitalizing on trends such as cloud computing, gaming, and autonomous driving. The company's robust financials bear testament to its strong fundamentals. In its fiscal second quarter, which ended July 30, its performance was impressive, with revenues growing by 101% year over year to $13.5 billion and GAAP (generally accepted accounting principles) earnings per share growing by 854% to nearly $2.50.
There is no doubt that Nvidia is an expensive stock, trading at nearly 114 times earnings, far more than the semiconductor industry's median earnings multiple of 23.3. However, considering the huge growth potential of AI and the company's formidable position in its industry, this stock may prove to be a lucrative long-term holding.
2. Datadog
Shares of Datadog, a cloud-native observability and cybersecurity powerhouse, have appreciated by close to 21.6% so far this year. With the rapid adoption of cloud-based business tools and applications by enterprises across the world, ensuring seamless connections and data security has become mission-critical.
Datadog helps solve these problems by pooling together diagnostic data across the clients' entire technology stack, including databases, servers, hardware, and software, enabling proactive detection and resolution of issues. The company's services encompass infrastructure monitoring, digital experience monitoring, cloud security, log management, application performance monitoring, and developer experience monitoring. The timely rectification of threats and vulnerabilities, often with only minimal human intervention, helps mitigate potential damage to the clients.
Datadog's broad observability portfolio has played a pivotal role in ensuring the success of its cross-selling and upselling strategy. As of the end of the second quarter, 82% of its clients were using two or more of its products, 45% were using four or more products, and 21% were using six or more products. This illustrates that Datadog has become deeply entrenched in its clients' daily operations -- thereby ensuring a highly sticky customer base.
Recently, Datadog launched Bits AI, an AI-powered co-pilot that is integrated with its core platform. This innovation will further automate and accelerate the identification and resolution of vulnerabilities. Datadog has also introduced another observability tool to help large language model developers monitor the costs and accuracy of those models effectively.
Even at a time when businesses have been optimizing their IT spending, Datadog managed to grow its revenues by 25% year over year to $509 million. While it's not yet GAAP profitable, the company is free-cash-flow positive. Hence, considering its large target addressable market (forecast to be worth $62 billion by 2026), broad and ever-evolving product portfolio, and improving financials, now might be a good time for astute investors to consider this stock.
3. CrowdStrike
With the average cost of a data breach in 2023 surging to $4.45 million, cybersecurity is not a luxury for businesses, but a necessity. So cybersecurity titan CrowdStrike has proven resilient even at a time when many enterprises have been actively cutting down their overall IT spending.
CrowdStrike's Falcon platform harnesses AI and machine learning to combat cyberthreats in areas such as endpoint protection, identity protection, workload protection, cloud security, and observability. Its multi-modular, all-in-one, cloud-native cybersecurity solution is proving to be a game changer for the company -- in part thanks to strong network effects. Falcon's AI-driven Threat Graph intercepts trillions of data signals every week regarding emerging cyberthreats, the system continuously evolves -- making it smarter and more efficient at thwarting these threats. This, in turn, has helped CrowdStrike further cross-sell and upsell to existing clients as well as rapidly attract new customers.
CrowdStrike ended its fiscal 2023 on Jan. 31, 2022, with over 23,019 clients. Further, at the end of fiscal 2024's second quarter, 63% of its subscription customers were using five or more Falcon modules, 41% were using six or more modules, and 24% were using seven or more modules. In fiscal Q2 2024, CrowdStrike also saw an 80% year-over-year jump in deals involving eight or more Falcon modules. These numbers highlight the sticky nature of CrowdStrike's business model.
With CrowdStrike's target addressable market forecast to grow from $76 billion in 2023 to $158 billion in 2026, and Falcon's ability to cater to several critical cybersecurity threats, CrowdStrike is poised for significant growth over the next decade.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 9, 2023
Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Datadog, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In my view, three stocks -- Nvidia (NASDAQ: NVDA), Datadog (NASDAQ: DDOG), and CrowdStrike (NASDAQ: CRWD) -- seem to fit the bill. Recently, the company also introduced Nvidia NeMo SteerLM, a software tool that allows developers to customize the responses of large language models to specific real-time applications. Datadog helps solve these problems by pooling together diagnostic data across the clients' entire technology stack, including databases, servers, hardware, and software, enabling proactive detection and resolution of issues.
|
In my view, three stocks -- Nvidia (NASDAQ: NVDA), Datadog (NASDAQ: DDOG), and CrowdStrike (NASDAQ: CRWD) -- seem to fit the bill. The company's services encompass infrastructure monitoring, digital experience monitoring, cloud security, log management, application performance monitoring, and developer experience monitoring. Datadog has also introduced another observability tool to help large language model developers monitor the costs and accuracy of those models effectively.
|
In my view, three stocks -- Nvidia (NASDAQ: NVDA), Datadog (NASDAQ: DDOG), and CrowdStrike (NASDAQ: CRWD) -- seem to fit the bill. With CrowdStrike's target addressable market forecast to grow from $76 billion in 2023 to $158 billion in 2026, and Falcon's ability to cater to several critical cybersecurity threats, CrowdStrike is poised for significant growth over the next decade. See the 10 stocks *Stock Advisor returns as of October 9, 2023 Manali Bhade has no position in any of the stocks mentioned.
|
In my view, three stocks -- Nvidia (NASDAQ: NVDA), Datadog (NASDAQ: DDOG), and CrowdStrike (NASDAQ: CRWD) -- seem to fit the bill. In its fiscal second quarter, which ended July 30, its performance was impressive, with revenues growing by 101% year over year to $13.5 billion and GAAP (generally accepted accounting principles) earnings per share growing by 854% to nearly $2.50. Datadog Shares of Datadog, a cloud-native observability and cybersecurity powerhouse, have appreciated by close to 21.6% so far this year.
|
7b250bfb-9aac-49d6-b40e-dc05bd745640
|
718044.0
|
2023-10-14 00:00:00 UTC
|
Is It Too Late to Buy Datadog Stock?
|
DDOG
|
https://www.nasdaq.com/articles/is-it-too-late-to-buy-datadog-stock-1
|
nan
|
nan
|
Datadog (NASDAQ: DDOG) has had an impressive run so far this year, riding the broader-based recovery of technology stocks. Shares of the cloud monitoring specialist are up more than 22% so far this year, easily outperforming the 14% gains of the S&P 500. This is in stark contrast to its performance in 2022, when the stock slumped 59%.
Beyond the general market rebound, Datadog's expanding suite of cloud monitoring tools and its resilient financial results have helped drive the stock price higher. Furthermore, Datadog was able to generate consistent robust growth during the downturn, despite the worst economic conditions in more than a decade. This helped fuel investor confidence that the company is positioning itself for better days ahead.
What does this mean for those who missed out on Datadog's current rally? Are there additional gains on the horizon, or has the stock simply run too far too fast? Let's see what the data shows.
Image source: Getty Images.
What was weighing on Datadog stock?
Last year was certainly no picnic for Datadog shareholders. Even as the company continued to add to its strong customer base and improve its financial metrics, the stock took a beating. Even its impressive performance didn't shield it from the broader economic mayhem.
In the second quarter, Datadog's revenue grew 25% year over year (YOY) to $510 million. While that's enviable growth for any company, it pales in comparison to the 84% growth it generated in 2021 -- before the onset of the downturn.
However, there are signs that the bottom may be in. On theearnings call CEO Olivier Pomel noted that even as customers "scrutinize costs ... these new trends, along with the tenor of our customer interactions are encouraging." This suggests that the worst may be behind us, and a broader economic recovery could drive even more impressive growth for Datadog.
What could drive Datadog stock higher?
The more robust business spending environment aside, there are other catalysts that could drive gains for Datadog stock.
One potential driver is the company's relentless cadence of new customer additions and expanding relationships with existing customers. Datadog reported a customer base of more than 26,000, an increase of 23% YOY -- but that tells just part of the story.
Customers spending $100,000 or more in annual recurring revenue (ARR) climbed to 2,990, up 24%, and now account for 85% of the company's ARR. In fact, the company landed a record number of deals during the quarter, which suggests the tide may be turning. Furthermore, this is an important metric for the company because of its "land and expand" strategy. Newer customers tend to spend more as they become more familiar with all the company has to offer.
This has helped drive Datadog's improving bottom line. While the company isn't yet profitable on the basis of generally accepted accounting principles, it continues to generate strong operating cash flow and free cash flow. This shows that its losses are the result of noncash items like depreciation and that consistent profitability is on the horizon.
Datadog's integrated data platform offers a suite of 19 cloud-based products for infrastructure and application monitoring, log management, digital experience monitoring, cloud security, and developer operations. These interconnected offerings continue to expand Datadog's total addressable market, which management estimates at $45 billion, climbing to $62 billion by 2026.
Furthermore, the company's top-notch solutions have earned rave reviews from customers and industry accolades continue to pour in. Datadog was named a leader in the 2023 Gartner Magic Quadrant for application monitoring and observability and acknowledged as a leader in the Forrester Wave report for artificial intelligence (AI) for IT operations, where it was ranked highest for product vision, market presence, sensory/telemetry collection and retention, and data insights and visualizations.
How to approach Datadog stock now
To be clear, Datadog won't appeal to every investor. The stock is currently selling for 14 times trailing-12-month sales and an only slightly better 11 times forward sales. Given its valuation, some price-sensitive investors will likely take a hard pass.
However, since the company's IPO just four years ago, Datadog has grown revenue by 627%, pushing its stock up 138% -- even in the middle of the worst downturn in more than a decade. Its solid track record suggests the stock is worthy of a premium. Furthermore, Wall Street expects Datadog to continue its double-digit revenue and earnings-per-share growth between now and 2024.
Given the company's large and expanding market opportunity and reliable track record of growth, Datadog's rebound could accelerate as the broader economy rebounds.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Danny Vena has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) has had an impressive run so far this year, riding the broader-based recovery of technology stocks. Beyond the general market rebound, Datadog's expanding suite of cloud monitoring tools and its resilient financial results have helped drive the stock price higher. Datadog was named a leader in the 2023 Gartner Magic Quadrant for application monitoring and observability and acknowledged as a leader in the Forrester Wave report for artificial intelligence (AI) for IT operations, where it was ranked highest for product vision, market presence, sensory/telemetry collection and retention, and data insights and visualizations.
|
Datadog (NASDAQ: DDOG) has had an impressive run so far this year, riding the broader-based recovery of technology stocks. Beyond the general market rebound, Datadog's expanding suite of cloud monitoring tools and its resilient financial results have helped drive the stock price higher. While the company isn't yet profitable on the basis of generally accepted accounting principles, it continues to generate strong operating cash flow and free cash flow.
|
Datadog (NASDAQ: DDOG) has had an impressive run so far this year, riding the broader-based recovery of technology stocks. Beyond the general market rebound, Datadog's expanding suite of cloud monitoring tools and its resilient financial results have helped drive the stock price higher. How to approach Datadog stock now To be clear, Datadog won't appeal to every investor.
|
Datadog (NASDAQ: DDOG) has had an impressive run so far this year, riding the broader-based recovery of technology stocks. Even as the company continued to add to its strong customer base and improve its financial metrics, the stock took a beating. This suggests that the worst may be behind us, and a broader economic recovery could drive even more impressive growth for Datadog.
|
be951ed1-c791-457a-a7c5-214b2f1bbbee
|
718045.0
|
2023-10-11 00:00:00 UTC
|
Missed Nvidia? 2 Promising AI Stocks to Buy Now
|
DDOG
|
https://www.nasdaq.com/articles/missed-nvidia-2-promising-ai-stocks-to-buy-now
|
nan
|
nan
|
Artificial Intelligence (AI) is a pivotal technology, with McKinsey & Company's research predicting that by 2030 70% of global enterprises will implement AI.
Understandably, shares of AI-driven, accelerated-computing giant Nvidia (NASDAQ: NVDA) are up by nearly 200% in 2023 despite a slight dip in the last few weeks. However, given the company's current valuation of 33 times its past year's sales, the stock's potential future growth seems to be mostly priced in.
Instead, investors might wish to consider two other stocks: Datadog (NASDAQ: DDOG) and SentinelOne (NYSE: S), which are not only less expensive but also are at the forefront of the ongoing AI transformation. Here's why these stocks could post solid gains in the coming months.
Datadog
Cloud-native observability and cybersecurity player Datadog's shares are up by over 21% so far in 2023 despite some share price weakness in the past few weeks.
This software-as-a-service (SaaS) company helps organizations seamlessly monitor the diverse elements of their technology infrastructure such as servers, databases, software, hardware, user interfaces, and containers. By pooling together diagnostic data, the company helps clients detect pain points and anomalies and remediate them before they cause significant damage.
The recent integration of the Datadog platform with Bits AI, an AI-powered co-pilot, is further helping organizations quickly identify and rectify issues without significant manual intervention. The company has also introduced a new observability tool for large language model developers to monitor the models' cost and accuracy.
A Leader in the 2023 Gartner Magic Quadrant for application performance monitoring and observability for three consecutive years, Datadog has been adding new customers as well as cross-selling and upselling to existing customers at a healthy clip. The number of the company's high-value clients (those spending over $100,000 or more as annual recurring revenue) grew by 24% year-over-year to 2,990 at the end of 2023's second quarter.
The company's trailing 12-month dollar-based net retention rate (NRR) was 120% at the end of the second quarter. While this is lower than the NRR of 130% posted during the height of the pandemic due to clients increasingly scrutinizing their tech stacks and focusing on efficiency, it is still a healthy number. NRR above 100% shows that the company is raking in more revenue from a given customer cohort compared to that earned from the same cohort in the previous year.
Datadog's revenue soared by 25% year-over-year to reach $509 million, while adjusted earnings per share (EPS) was up by 50% year-over-year to $0.36 in the second quarter. While the company is not profitable on a generally accepted accounting principles (GAAP) basis, it is free-cash-flow positive.
With a target addressable market estimated to be worth $62 billion by 2026 and an annual run rate of less than $2 billion, Datadog's stock is well-positioned to grow rapidly in the coming months.
SentinelOne
A prominent AI-driven cybersecurity player, SentinelOne has seen its shares rise 14% so far this year, and there are several reasons why the stock could go even higher in the coming months.
Instead of opting for multiple security solutions and consoles from different vendors, clients are increasingly preferring SentinelOne's unified security platform, which provides autonomous protection through a single console in areas such as cloud, endpoints, and identity. This is proving to be a major plus point for the company, and is reflected in its customer acquisition and retention trends.
SentinelOne's customer count grew by 30% year-over-year to over 11,000 at the end of the second quarter of its fiscal 2024 (ending July 31, 2023). The number of customers spending over $100,000 annually on the company's offerings also grew by 37% year-over-year to 994. SentinelOne's second-quarter net retention rate of 115% was also impressive and highlighted the success of the company's cross-selling strategies, despite macro challenges and the inclusion of legacy products from the Attivo Networks acquisition causing some near-time weakness in sales.
The company is also leveraging generative AI to enable clients to reduce human intervention and improve efficacy and efficiency in operating cybersecurity software. To that effect, it has introduced Purple AI, a product that uses a variety of large language models to help significantly automate activities such as threat hunting, analysis, and remediation. Currently in the beta testing phase, if effective, this product could prove to be a game-changer for the company.
The stock has been facing significant turbulence in the past few quarters, mainly due to macro headwinds, sales delays, and unmet quarterly expectations. However, the company seems to be finally returning to growth based on its second-quarter performance. Revenue grew by 46% year-over-year to $149.4 million, ahead of the consensus estimate of $141.5 million. Simultaneously, the company's focus on cost efficiency has helped reduce its adjusted net loss to $0.08, from $0.20 in the same quarter of the prior year.
SentinelOne's has also revised its annual revenue projections for fiscal 2024, now set at an ambitious $600 million, up from the previously estimated $595 million. Considering the improving adoption of its robust unified cybersecurity platform, generative AI capabilities, and improving financials, now might be an opportune time for astute investors to consider this stock.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 2, 2023
Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Instead, investors might wish to consider two other stocks: Datadog (NASDAQ: DDOG) and SentinelOne (NYSE: S), which are not only less expensive but also are at the forefront of the ongoing AI transformation. This software-as-a-service (SaaS) company helps organizations seamlessly monitor the diverse elements of their technology infrastructure such as servers, databases, software, hardware, user interfaces, and containers. The recent integration of the Datadog platform with Bits AI, an AI-powered co-pilot, is further helping organizations quickly identify and rectify issues without significant manual intervention.
|
Instead, investors might wish to consider two other stocks: Datadog (NASDAQ: DDOG) and SentinelOne (NYSE: S), which are not only less expensive but also are at the forefront of the ongoing AI transformation. SentinelOne's second-quarter net retention rate of 115% was also impressive and highlighted the success of the company's cross-selling strategies, despite macro challenges and the inclusion of legacy products from the Attivo Networks acquisition causing some near-time weakness in sales. The company is also leveraging generative AI to enable clients to reduce human intervention and improve efficacy and efficiency in operating cybersecurity software.
|
Instead, investors might wish to consider two other stocks: Datadog (NASDAQ: DDOG) and SentinelOne (NYSE: S), which are not only less expensive but also are at the forefront of the ongoing AI transformation. Datadog Cloud-native observability and cybersecurity player Datadog's shares are up by over 21% so far in 2023 despite some share price weakness in the past few weeks. The number of the company's high-value clients (those spending over $100,000 or more as annual recurring revenue) grew by 24% year-over-year to 2,990 at the end of 2023's second quarter.
|
Instead, investors might wish to consider two other stocks: Datadog (NASDAQ: DDOG) and SentinelOne (NYSE: S), which are not only less expensive but also are at the forefront of the ongoing AI transformation. Datadog's revenue soared by 25% year-over-year to reach $509 million, while adjusted earnings per share (EPS) was up by 50% year-over-year to $0.36 in the second quarter. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
3e4e9b11-9a27-412e-8037-057b010bf64d
|
718046.0
|
2023-10-11 00:00:00 UTC
|
Is Datadog Stock a Buy Now?
|
DDOG
|
https://www.nasdaq.com/articles/is-datadog-stock-a-buy-now-3
|
nan
|
nan
|
As more business tools and applications move into the cloud, monitoring that these connections work with each other is vital. Maintaining data security is also a big deal as most of this processing happens offsite. Datadog (NASDAQ: DDOG) is a leader in both cloud applications, and the stock has become a popular investment.
Still, the stock is up only 20% for 2023 (still a good run) even though many of its software peers have seen their prices rise more than 50%. So, is this relative weakness a buying opportunity for Datadog stock? Let's find out.
Cloud revenue growth is slowing
Understanding when applications aren't working well together used to be a manual process; users had to contact IT to let them know something wasn't working properly. This could lead to significant downtime and, thus, lost productivity as they troubleshoot the problem. Datadog does all this automatically. In some cases, no human intervention is required.
Cloud monitoring is one of Datadog's top products. It also has a full suite of other offerings, like log management, cloud security management, and continuous testing, that fit nicely with the base product. This is a key part of the Datadog investment thesis as it must sign a user to one product and then upsell other products.
Datadog has done a spectacular job of doing so, considering that 82% of customers utilize two or more products. But the critical customers are the ones deploying even more. Customers using four or more products have risen from 37% last year to 45% this year, and those with six or more have risen from 14% to 21%.
That's a key metric to watch as any stagnation in its rise could spell disaster for Datadog. Still, Datadog's revenue growth has been slower than investors would like, as cloud spending has been tough to come by these days.
DDOG Revenue (Quarterly YoY Growth) data by YCharts. YoY = year over year.
While 25% growth is still impressive, it's not what investors are used to in the past. On its Q2 conference call, management credited the spending slowdown to customers optimizing their cloud computing spend, consistent with many others in the space. In fact, 40% of Datadog's revenue growth came from new customers who signed on in the past year.
This should unlock a significant spending tidal wave once existing customers are comfortable expanding their usage, so investors shouldn't expect its revenue growth to remain muted for long. This is critical, as Datadog still needs to improve its profitability.
Datadog is close to breaking even
Unlike many of its software peers, Datadog is on the brink of profitability. Unfortunately, the latest numbers have been moving in the wrong direction Operating expenses rose 32% in Q2, outpacing its revenue growth. As a result, Datadog's operating margin fell from a 1% loss last year to a 5% loss this year. But high interest rates saved Datadog on the bottom line. Its net interest income from its cash horde was nearly enough for Datadog to break even as it posted a $4 million net income loss.
With Datadog close to breaking even, it could easily become profitable overnight. But it is something to continue monitoring each quarter. Even though Datadog isn't profitable from a net income perspective, it is free-cash-flow (FCF) positive. In Q2, it churned out $142 million in FCF, giving it a 28% margin. This brought its trailing-12-month total to $421 million, which values the stock at an expensive 67 times FCF.
DDOG Price to Free Cash Flow data by YCharts. PS Ratio = price-to-sales ratio.
As the stock trades for about 15 times sales, it's a bit pricey on both valuation measures. But with a massive upside in cloud computing spend coming, I'd say this muted year for Datadog has presented investors with a buying opportunity. So, if you're looking for a cloud growth stock to add to your portfolio, Datadog should be a strong candidate.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 2, 2023
Keithen Drury has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) is a leader in both cloud applications, and the stock has become a popular investment. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG Price to Free Cash Flow data by YCharts.
|
DDOG Revenue (Quarterly YoY Growth) data by YCharts. Datadog (NASDAQ: DDOG) is a leader in both cloud applications, and the stock has become a popular investment. DDOG Price to Free Cash Flow data by YCharts.
|
Datadog (NASDAQ: DDOG) is a leader in both cloud applications, and the stock has become a popular investment. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG Price to Free Cash Flow data by YCharts.
|
Datadog (NASDAQ: DDOG) is a leader in both cloud applications, and the stock has become a popular investment. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG Price to Free Cash Flow data by YCharts.
|
d6e98a64-8282-4ef4-92d5-392daf566a31
|
718047.0
|
2023-10-10 00:00:00 UTC
|
Cloud Services Stocks: The Key to Outperformance in 2024?
|
DDOG
|
https://www.nasdaq.com/articles/cloud-services-stocks%3A-the-key-to-outperformance-in-2024
|
nan
|
nan
|
Prepare for a Strong Q4
Just last week, amidst a relatively sharp -8% correction in the S&P 500, investors were certain that something in the market was about to break. Three days later and stocks are suddenly screaming higher. What happened?
Admittedly, interest rates on long-term treasuries were reaching 16-year highs, and the Fed was sounding increasingly hawkish, but the signs of an imminent rally were forming. I personally noted a key technical level holding in the Nasdaq 100, sentiment was loudly bearish, and seasonality trends were strongly in favor of a bullish second half of October and Q4.
Image Source: TradingView
Dovishness on the Rise
Furthermore, several other Zacks analysts were growing increasingly bullish, and most importantly, Fed Funds futures markets were quickly drifting more dovish. As of today, the market is pricing in three rate hikes in 2024, while just a week ago it was just one.
Image Source: CME Group
Forget Fear – Plan for the Future
Now that we have moved passed the extreme bearishness, investors should again focus on long-term trends rather than, week to week moves. The market consistently climbs the wall of worry. And don’t forget it.
So where should investors look for big trends? Cloud computing and the services surrounding it is one of the fastest growing segments in the market, and with the explosion in Artificial Intelligence that trend may begin to accelerate. The Cloud Services market is projected to grow at a CAGR of 17% over the next 10 years.
Image Source: Precedence Research
Cloud Services
Amazon AMZN is the industry’s first mover and market share leader, while Alphabet GOOGL is the fastest growing of the big players.
Alphabet recently notched near 30% YoY revenue growth in its cloud services segment and expects EPS to grow 15.3% annually over the next 3-5 years.
Amazon enjoys a Zacks Rank #1 (Strong Buy) rating as well, with analysts unanimously raising earnings estimates across timeframes. EPS are forecast to grow an incredible 34% annually over the next 3-5 years.
I also have my eye on the descending wedge breakout in AMZN stock.
Image Source: TradingView
Cloud Security
Cloudflare NET, CrowdStrike CRWD, and Zscaler ZS are all cloud-based security solutions. CrowdStrike has a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions, and sales growth estimates of 35% in FY23.
Cloudflare expects to grow its EPS at 54% annually over the next 3-5 years and Zscaler is projecting 40% annual growth in EPS.
The breakout in CrowdStrike stock this week was emphatic.
Image Source: TradingView
Data
Then on top of cloud computing and security, AI power users are going to require robust data storage and manipulation capabilities. That’s where Datadog DDOG and MongoDB MDB come in.
DataDog boasts a Zacks Rank #2 (Buy) rating and MongoDB has some incredible earnings estimate upgrades over the last two months, seen below. Both expect well above market sales and earnings growth.
Image Source: Zacks Investment Research
Bottom Line
While some of the direct AI investments may be a bit extended at this point, utilizing a picks and axes approach to investing in the sector may be the way to catch the next major leg higher.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
MongoDB, Inc. (MDB) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That’s where Datadog DDOG and MongoDB MDB come in. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Admittedly, interest rates on long-term treasuries were reaching 16-year highs, and the Fed was sounding increasingly hawkish, but the signs of an imminent rally were forming.
|
Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. That’s where Datadog DDOG and MongoDB MDB come in. Image Source: TradingView Cloud Security Cloudflare NET, CrowdStrike CRWD, and Zscaler ZS are all cloud-based security solutions.
|
Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. That’s where Datadog DDOG and MongoDB MDB come in. Image Source: TradingView Dovishness on the Rise Furthermore, several other Zacks analysts were growing increasingly bullish, and most importantly, Fed Funds futures markets were quickly drifting more dovish.
|
That’s where Datadog DDOG and MongoDB MDB come in. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet recently notched near 30% YoY revenue growth in its cloud services segment and expects EPS to grow 15.3% annually over the next 3-5 years.
|
cddd02b4-5dd1-4fbc-a8b1-4159569cf652
|
718048.0
|
2023-10-10 00:00:00 UTC
|
Stock Index Futures Climb on Dovish Fed Comments, PepsiCo Earnings on Tap
|
DDOG
|
https://www.nasdaq.com/articles/stock-index-futures-climb-on-dovish-fed-comments-pepsico-earnings-on-tap
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.20%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.26% this morning as comments from Fed officials bolstered bets that the U.S. central bank may stand pat until year-end, while investors continued to evaluate the potential impact of the Israel-Hamas conflict.
In Monday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 posted 2-week highs, and the blue-chip Dow rose to a 1-week high. Zscaler Inc (ZS) gained over +3% after Barclays upgraded the stock to Overweight from Equal Weight. Also, defense stocks climbed following the unexpected attack by Hamas on Israel over the weekend, with Northrop Grumman Corporation (NOC) surging more than +11% and Lockheed Martin Corporation (LMT) rising over +8%. In addition, energy stocks gained ground as the price of WTI crude rose more than +4%. On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy.
Federal Reserve Vice Chair Philip Jefferson stated on Monday that officials are in a position to “proceed carefully” following the recent uptick in Treasury yields. “Looking ahead, I will remain cognizant of the tightening in financial conditions through higher bond yields and will keep that in mind as I assess the future path of policy,” Jefferson said. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said.
“The spike in bond yields coupled with the unfolding geopolitical tensions in the Middle East seem to have served as the catalyst for the much-anticipated dovish shift from the Federal Reserve - a move that equity markets have been eagerly awaiting,” said Tony Sycamore, a senior market analyst at IG Australia.
Meanwhile, U.S. rate futures have priced in a 10.4% chance of a 25 basis point rate increase at the next central bank meeting in November and a 26.9% probability of a 25 basis point rate hike at December’s monetary policy meeting.
On the earnings front, soda and snack giant PepsiCo Inc (PEP) is set to report its Q3 earnings results today.
In other news, the tensions in the Middle East could potentially intensify following a report by the Financial Times stating that a top U.S. general warned Iran to “not get involved” in the Israel-Hamas conflict.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.2% m/m in July. Economists foresee the August figure to be -0.1% m/m.
In addition, market participants will be looking toward a batch of speeches from Fed officials Bostic, Waller, Kashkari, and Daly.
In the bond markets, United States 10-year rates are at 4.658%, up +0.34%.
The Euro Stoxx 50 futures are up +1.57% this morning as a slight dovish shift in Federal Reserve officials’ tone boosted risk appetite. Mining stocks led the advance on Tuesday following a report by Bloomberg indicating that China is gearing up to introduce a new round of stimulus measures that may support metal prices. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices. In corporate news, Elis (ELIS.FP) gained over +4% following the announcement that Brazil-based asset manager BWGI intends to acquire a 6% stake in the French cleaning services company.
Italy’s Industrial Production data was released today.
The Italian August Industrial Production stood at +0.2% m/m and -4.2% y/y, stronger than expectations of 0.0% m/m and -5.0% y/y.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.70%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.43%.
China’s Shanghai Composite today closed lower as investors rushed to offload stocks with exposure to the Middle East. China Communications Construction tumbled over -8% as the state-owned company inked contracts worth $3 billion in the Middle East over the last three years. Also, China Railway Group slumped more than -7%. Meanwhile, Country Garden Holdings Co Ltd plunged over -10% after China’s largest private property developer warned that it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks. In addition, China said that its Commerce Minister Wang Wentao engaged in “rational and pragmatic” talks with U.S. senators led by Senate Majority Leader Chuck Schumer on Monday.
“As the focus turning to Q3 earnings, selling may have been exhausted somewhat, and upside surprises in upcoming earnings may trigger a tradable rally,” said Redmond Wong, Greater China market strategist at Saxo Markets.
Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. Energy stocks led the gains on Tuesday following an overnight spike in oil prices after military clashes between Israel and the Palestinian Islamist group Hamas raised concerns about potential disruptions in Middle East oil supply. Trading firms also climbed, with Sojitz Corp and Itochu Corp soaring over +7%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +3.03% to 21.09.
“Japanese shares were sold too heavily until last week. It was the time for a rebound, and overnight gains in Wall Street supported investor sentiment. Easing U.S. Treasury yields was also a positive factor,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The Japanese August Current Account n.s.a. stood at 2.280T, weaker than expectations of 3.091T.
Pre-Market U.S. Stock Movers
Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
Akero Therapeutics Inc (AKRO) climbed over +18% in pre-market trading after announcing the hosting of an investor conference on Tuesday to share topline week 36 results from its Phase 2b SYMMETRY study.
Juniper Networks Inc (JNPR) fell more than -2% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
Rivian Automotive Inc (RIVN) rose over +3% in pre-market trading after UBS upgraded the stock to Buy from Neutral.
EXACT Sciences Corporation (EXAS) gained more than +2% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
Pagerduty Inc (PD) plunged over -6% in pre-market trading after the company announced it intends to offer a $350 million principal amount of convertible senior notes due 2028 in a private placement.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - October 10th
PepsiCo (PEP), Neogen (NEOG), E2open Parent Holdings (ETWO), AZZ (AZZ).
More Stock Market News from Barchart
Stocks Recover Early Losses on Dovish Fed Remarks
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. More Stock Market News from Barchart Stocks Recover Early Losses on Dovish Fed Remarks Missed Out on Nvidia?
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. In the bond markets, United States 10-year rates are at 4.658%, up +0.34%. Pre-Market U.S. Stock Movers Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
|
b4691695-89d5-4d95-98a5-887e757d0af7
|
718049.0
|
2023-10-10 00:00:00 UTC
|
Stock Index Futures Climb as Dovish Fed Comments Boost Sentiment, PepsiCo Earnings on Tap
|
DDOG
|
https://www.nasdaq.com/articles/stock-index-futures-climb-as-dovish-fed-comments-boost-sentiment-pepsico-earnings-on-tap
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.20%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.26% this morning as comments from Fed officials bolstered bets that the U.S. central bank may stand pat until year-end, while investors continued to evaluate the potential impact of the Israel-Hamas conflict.
In Monday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 posted 2-week highs, and the blue-chip Dow rose to a 1-week high. Zscaler Inc (ZS) gained over +3% after Barclays upgraded the stock to Overweight from Equal Weight. Also, defense stocks climbed following the unexpected attack by Hamas on Israel over the weekend, with Northrop Grumman Corporation (NOC) surging more than +11% and Lockheed Martin Corporation (LMT) rising over +8%. In addition, energy stocks gained ground as the price of WTI crude rose more than +4%. On the bearish side, airline stocks retreated as most international carriers suspended direct flights to Tel Aviv, with Delta Air Lines Inc (DAL) and American Airlines Group (AAL) falling over -4%. Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy.
Federal Reserve Vice Chair Philip Jefferson stated on Monday that officials are in a position to “proceed carefully” following the recent uptick in Treasury yields. “Looking ahead, I will remain cognizant of the tightening in financial conditions through higher bond yields and will keep that in mind as I assess the future path of policy,” Jefferson said. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said.
“The spike in bond yields coupled with the unfolding geopolitical tensions in the Middle East seem to have served as the catalyst for the much-anticipated dovish shift from the Federal Reserve - a move that equity markets have been eagerly awaiting,” said Tony Sycamore, a senior market analyst at IG Australia.
Meanwhile, U.S. rate futures have priced in a 10.4% chance of a 25 basis point rate increase at the next central bank meeting in November and a 26.9% probability of a 25 basis point rate hike at December’s monetary policy meeting.
On the earnings front, soda and snack giant PepsiCo Inc (PEP) is set to report its Q3 earnings results today.
In other news, the tensions in the Middle East could potentially intensify following a report by the Financial Times stating that a top U.S. general warned Iran to “not get involved” in the Israel-Hamas conflict.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.2% m/m in July. Economists foresee the August figure to be -0.1% m/m.
In addition, market participants will be looking toward a batch of speeches from Fed officials Bostic, Waller, Kashkari, and Daly.
In the bond markets, United States 10-year rates are at 4.658%, up +0.34%.
The Euro Stoxx 50 futures are up +1.57% this morning as a slight dovish shift in Federal Reserve officials’ tone boosted risk appetite. Mining stocks led the advance on Tuesday following a report by Bloomberg indicating that China is gearing up to introduce a new round of stimulus measures that may support metal prices. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices. In corporate news, Elis (ELIS.FP) gained over +4% following the announcement that Brazil-based asset manager BWGI intends to acquire a 6% stake in the French cleaning services company.
Italy’s Industrial Production data was released today.
The Italian August Industrial Production stood at +0.2% m/m and -4.2% y/y, stronger than expectations of 0.0% m/m and -5.0% y/y.
Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.70%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +2.43%.
China’s Shanghai Composite today closed lower as investors rushed to offload stocks with exposure to the Middle East. China Communications Construction tumbled over -8% as the state-owned company inked contracts worth $3 billion in the Middle East over the last three years. Also, China Railway Group slumped more than -7%. Meanwhile, Country Garden Holdings Co Ltd plunged over -10% after China’s largest private property developer warned that it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks. In addition, China said that its Commerce Minister Wang Wentao engaged in “rational and pragmatic” talks with U.S. senators led by Senate Majority Leader Chuck Schumer on Monday.
“As the focus turning to Q3 earnings, selling may have been exhausted somewhat, and upside surprises in upcoming earnings may trigger a tradable rally,” said Redmond Wong, Greater China market strategist at Saxo Markets.
Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. Energy stocks led the gains on Tuesday following an overnight spike in oil prices after military clashes between Israel and the Palestinian Islamist group Hamas raised concerns about potential disruptions in Middle East oil supply. Trading firms also climbed, with Sojitz Corp and Itochu Corp soaring over +7%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +3.03% to 21.09.
“Japanese shares were sold too heavily until last week. It was the time for a rebound, and overnight gains in Wall Street supported investor sentiment. Easing U.S. Treasury yields was also a positive factor,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The Japanese August Current Account n.s.a. stood at 2.280T, weaker than expectations of 3.091T.
Pre-Market U.S. Stock Movers
Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
Akero Therapeutics Inc (AKRO) climbed over +18% in pre-market trading after announcing the hosting of an investor conference on Tuesday to share topline week 36 results from its Phase 2b SYMMETRY study.
Juniper Networks Inc (JNPR) fell more than -2% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
Rivian Automotive Inc (RIVN) rose over +3% in pre-market trading after UBS upgraded the stock to Buy from Neutral.
EXACT Sciences Corporation (EXAS) gained more than +2% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
Pagerduty Inc (PD) plunged over -6% in pre-market trading after the company announced it intends to offer a $350M principal amount of convertible senior notes due 2028 in a private placement.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - October 10th
PepsiCo (PEP), Neogen (NEOG), E2open Parent Holdings (ETWO), AZZ (AZZ).
More Stock Market News from Barchart
Stocks Recover Early Losses on Dovish Fed Remarks
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. Also, Dallas Fed President Lorie Logan stated that the recent increase in long-term U.S. Treasury yields, along with tighter financial conditions more generally, may result in reduced necessity for the Federal Reserve to implement additional interest rate hikes. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that inflation is expected to reach the European Central Bank’s target of around 2% by 2025, even in light of the impact of the Israel conflict on commodity prices.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. “Higher term premiums result in higher term interest rates for the same setting of the fed funds rate, all else equal,” Logan said. On the positive side, Hong Kong-listed tech giants advanced on Tuesday, boosted by dovish Federal Reserve remarks.
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. Japan’s Nikkei 225 Stock Index closed sharply higher today, driven by overnight gains on Wall Street, which bolstered investors’ risk appetite, leading them to scoop up beaten-down stocks. More Stock Market News from Barchart Stocks Recover Early Losses on Dovish Fed Remarks Missed Out on Nvidia?
|
Also, Datadog Inc (DDOG) slid more than -3% after BofA downgraded the stock to Neutral from Buy. In the bond markets, United States 10-year rates are at 4.658%, up +0.34%. Pre-Market U.S. Stock Movers Immunic Inc (IMUX) surged about +36% in pre-market trading after the biotech firm announced positive interim data from the Phase 2 CALLIPER trial.
|
1949ddc9-79c2-4d5f-8973-d5f59c8a0dae
|
718050.0
|
2023-10-09 00:00:00 UTC
|
Markets Today: Stocks Retreat on Conflict in the Middle East
|
DDOG
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-retreat-on-conflict-in-the-middle-east
|
nan
|
nan
|
Morning Markets
December E-Mini S&P 500 futures (ESZ23) are down -0.71%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are down -0.88%.
Stock index futures this morning are moderately lower as ramped-up geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +3% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack.
The markets are discounting a 22% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 40% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note yield is not trading today with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-week low of 2.828% and is down -1.7 bp at 2.867%. The 10-year UK gilt yield is down -0.5 bp at 4.568%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.76%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
The Euro Stoxx 50 today is moderately lower on increased geopolitical concerns after the surprise attack by the militant group Hamas on Israel over the weekend. Losses in travel and leisure stocks led the overall market lower as global airlines stopped flights to Israel. However, stocks recovered from their worst levels on a rally in defense stocks, with Saab, Rheinmetall, and Leonardo up at least 5%. Also, energy stocks rose, with crude prices up more than +4%. The global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
Today’s Eurozone economic news was mixed for stocks. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
China’s Shanghai Composite Stock Index today reopened after a week-long holiday and dropped to a 6-week low and was closed down -0.44%. Travel and tourism stocks declined as disappointing travel news during the Golden Week holiday showed weakness in consumer spending. Government data showed Chinese citizens recorded 826 million domestic trips over the eight-day holiday, bringing in 753.4 billion yuan ($103 billion) in revenue, below estimates for nearly 900 million trips generating 782.5 billion yuan in sales. Property stocks also retreated today on tepid home sales during the Golden Week holiday, a typically strong time of year for home sales. Chinese new home sales during the eight-day holiday fell -17% from last year, and sales of existing properties fell -8% over the same period. Today’s +4% surge in crude prices sparked a rally in energy stocks that helped the overall market recover from its worst levels.
Foreign investors continue to liquidate their Chinese stock holdings as mainland markets reopened from the Golden Week holiday. Overseas funds today sold 7.5 billion yuan ($1 billion) worth of onshore shares on a net basis via trading links with Hong Kong, the most since September 25.
Pre-Market U.S. Stock Movers
Airline stocks are under pressure in pre-market trading as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -2%.
Cruise line operators are moving lower in pre-market trading as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises Ltd (RCL) are down more than -1%.
Technology stocks with exposure to Israel are falling in pre-market trading following the surprise attack by Hamas on Israel over the weekend. Applied Materials (AMAT), Check Point Software Technologies (CHKP), Fortinet (FTNT), Intel (INTC), and Nvidia (NVDA) are down more than -1%.
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy.
Energy stocks and energy service companies are climbing in pre-market trading, with the price of WTI crude up more than +3%. As a result, ConocoPhillips (COP), Chevron (CVX), Devon Energy (DVN), Diamondback Energy (FANG), Marathon Oil (MRO), Occidental Petroleum (OXY), and Valero Energy (VLO) are up more than +2%.
Defense stocks are gaining in pre-market trading after the surprise attack by Hamas on Israel over the weekend. Lockheed Martin (LMT), RTX Corp (RTX), Northrop Grumman (NOC), and L3Harris Technologies (LHX) are up more than +3%.
Lennox International (LII) is up more than +1% in pre-market trading after Goldman Sachs double-upgraded the stock to buy from sell.
Oracle (ORCL) rose more than +1% in pre-market trading after Evercore ISI upgraded the stock to outperform from in line.
Earnings Reports (10/9/2023)
Applied Digital Corp (APLD), Waldencast plc (WALD).
More Stock Market News from Barchart
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
3 Strategies To Enhance Returns Beyond Just Buying The Dip
5 Massive Things to Watch in the Market This Week Including FOMC and CPI
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy. Stock index futures this morning are moderately lower as ramped-up geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. The global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
|
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday. The global geopolitical tensions and weakness in stocks sparked a rally in European government bonds on a flight to safety, as the 10-year German bund yield fell to a 1-week low.
|
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy. Stock index futures this morning are moderately lower as ramped-up geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. Pre-Market U.S. Stock Movers Airline stocks are under pressure in pre-market trading as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend.
|
Datadog (DDOG) tumbled more than -4% in pre-market trading after Bank of America downgraded the stock to neutral from buy. The 10-year German bund yield fell to a 1-week low of 2.828% and is down -1.7 bp at 2.867%. Pre-Market U.S. Stock Movers Airline stocks are under pressure in pre-market trading as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend.
|
a6df3316-6627-43c4-9a46-111ef4dfba83
|
718051.0
|
2023-10-09 00:00:00 UTC
|
Stocks Recover Early Losses on Dovish Fed Remarks
|
DDOG
|
https://www.nasdaq.com/articles/stocks-recover-early-losses-on-dovish-fed-remarks
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.63%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.49%.
Stocks on Monday recovered from early losses and posted moderate gains, with the S&P 500 and Nasdaq 100 climbing to 2-week highs and the Dow Jones Industrials posting a 1-week high. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again.
Stocks initially opened lower Monday morning as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields moved lower as investors flocked to the safety of government debt, although trading in the U.S. Treasury market was closed Monday for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risk there may be retaliation measures against Iran.
On the positive side for stocks, Monday’s surge in crude prices by more than +4% sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Fed Vice Chair Jefferson said policymakers are "in a position to proceed carefully in assessing the extent of any additional policy firming that may be necessary," as the recent increase in Treasury yields acts as a potential further restraint on the economy. Vice Chair Jefferson’s comments suggest he favors pausing fed rate hikes.
Comments on Monday from Dallas Fed President Logan, a known hawk, supported stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 12% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 28% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields on Monday moved lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 2-week low of 2.763% and finished down -11.2 bp at 2.772%. The 10-year UK gilt yield fell to a 1-week low of 4.472% and finished down -9.7 bp at 4.476%.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
The Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
German Aug industrial production fell -0.2% m/m, weaker than expectations of -0.1% m/m.
Overseas stock markets on Monday settled lower. The Euro Stoxx 50 closed down -0.77%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Defense stocks rallied Monday after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) closed up more than +11% to lead gainers in the S&P 500. Also, L3Harris Technologies (LHX) and Huntington Ingalls Industries (HII) closed up more than +9%. In addition, Lockheed Martin (LMT) and General Dynamics (GD) closed up more than +8%, and RTX Corp (RTX) closed up more than +4%.
Energy stocks and energy service companies moved higher after the price of WTI crude jumped more than +4%. As a result, Marathon Oil (MRO) and Haliburton closed up more than +6%. Also, Devon Energy (DVN), ConocoPhillips (COP), and Hess Corp (HES) closed up more than +5%. In addition, Occidental Petroleum (OXY) and Schlumberger (SLB) closed up more than +4%. Finally, Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) closed up more than +3% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) closed up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) closed up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Walt Disney (DIS) closed up more than +2% after activist investor Nelon Peltz’s Trian Fund Management increased its Disney holding to more than 30 million shares and is said to be seeking several seats on Disney’s board of directors.
Airline stocks were under pressure Monday as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL) closed down more than -5% to lead losers in the S&P 500. Also, Delta Air Lines (DAL) closed down by more than -5%, and American Airlines Group (AAL) closed down by more than -4%. In addition, Alaska Air Group (ALK) and Southwest Airlines (LUV) closed down more than -2%.
Cruise line operators retreated Monday as travel stocks took a hit on the conflict in the Middle East. Carnival (CCL) closed down more than -4%. Also, Royal Caribbean Cruises Ltd (RCL) closed down more than -3%, and Norwegian Cruise Line Holdings (NCLH) closed down more than -1%.
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy.
Fidelity National Information (FIS) closed down more than -2% after Truist Securities cut its price target on the stock to $50 from $60.
Moderna (MRNA) closed down more than -2% after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Illumina (ILMN) closed down more than -1% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Across the markets…
December 10-year T-notes (ZNZ23) Monday closed up +1-00/32 point, although the cash Treasury market was closed Monday for the Columbus Day holiday. Dec T-note futures rallied to a 1-week high Monday on the increase in safe-have demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. T-notes extended their gains Monday on dovish comments from Fed Vice Chair Jefferson and Dallas Fed President Logan, who said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. Monday’s +4% surge in crude oil prices raised inflation expectations and was negative for T-notes.
More Stock Market News from Barchart
Dollar Gives Up Early Gains on Dovish Fed Comments
Missed Out on Nvidia? Here's Another Top AI Stock to Buy Now
This Warren Buffett Stock Is a Deep Value Buy After Its Latest Slide
3 Reasons to Buy Advanced Micro Devices Stock Right Now
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy. Stocks initially opened lower Monday morning as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risk there may be retaliation measures against Iran.
|
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy. Today’s stock movers… Defense stocks rallied Monday after the surprise attack by Hamas on Israel over the weekend. Dec T-note futures rallied to a 1-week high Monday on the increase in safe-have demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend.
|
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy. What you need to know… The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.63%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.49%. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again.
|
Datadog (DDOG) closed down more than -3% after Bank of America downgraded the stock to neutral from buy. Stocks moved higher Monday on dovish Fed comments that signal the Fed may be willing to pause its rate hike cycle, saying the recent jump in long-term bond yields may mean less need for the Fed to tighten monetary policy again. T-notes extended their gains Monday on dovish comments from Fed Vice Chair Jefferson and Dallas Fed President Logan, who said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
|
2c054bf2-8898-4ed3-8d74-95e13e9d9f78
|
718052.0
|
2023-10-09 00:00:00 UTC
|
Stocks Mixed on Middle East Turmoil
|
DDOG
|
https://www.nasdaq.com/articles/stocks-mixed-on-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.22%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.01%.
Stocks are mixed after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
On the positive side for stocks, today’s surge in crude prices has sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Dovish comments today from Dallas Fed President Logan, a known hawk, are supporting stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 14% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 27% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-1/2 week low of 2.774% and is down -10.3 bp at 2.781%. The 10-year UK gilt yield fell to a 1-week low of 4.483% and is down -7.5 bp at 4.499%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.98%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL) is down more than -6% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%.
Airline stocks are under pressure today as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Also, Alaska Air Group (ALK) is down more than -3%, and Southwest Airlines (LUV) is down more than -3%.
Paramount Global (PARA) is down more than -3% after Needham & Co cut its price target on the stock to $15 from $28.
Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
Moderna (MRNA) is down more than -5% to lead losers in the Nasdaq 100 after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy.
Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Fidelity National Information (FIS) is down more than -3% after Truist Securities cut its price target on the stock to $50 from $60.
Defense stocks are rallying today after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) is up more than +8% to lead gainers in the S&P 500. Also, Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Huntington Ingalls Industries (HII) are up more than +6%. In addition, RTX Corp (RTX) is up more than +3%.
Energy stocks and energy service companies are climbing today, with the price of WTI crude up more than +3%. As a result, Marathon Oil (MRO) and Hess Corp (HES) are up more than +5%. Also, ConocoPhillips (COP), Devon Energy (DVN), Exxon Mobil (XOM), Occidental Petroleum (OXY), and Schlumberger (SLB) are up more than +4%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) is up more than +6% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) is up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) is up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +26 ticks at a 1-week high, although the U.S. cash Treasury market is closed today for the Columbus Day holiday. T-notes have support from safe-haven demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. Dovish comments from Dallas Fed President Logan also gave T-notes a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
The dollar index (DXY00) today is up by +0.21%. The dollar is moving higher today on increased safe-haven demand after Israel declared war on Hamas. The stock slide today has also boosted the liquidity demand for the dollar. The dollar fell back from its best levels on comments from Dallas Fed President Logan, who said higher Treasury yields may mean less of a need for the Fed to raise interest rates.
EUR/USD (^EURUSD) today is down by -0.32%. A stronger dollar today is weighing on the euro. Losses in EUR/USD are limited by hawkish comments from ECB Vice President Guindos, who said interest rates are likely to stay at their current levels for some time.
Today’s Eurozone economic news was mixed for the euro. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
USD/JPY (^USDJPY) today is down by -0.35%. Ramped-up geopolitical risks have sparked safe-haven buying of the yen after the surprise attack by Hamas militants on Israel over the weekend. Also, a rally in T-note prices today is supportive of the yen. Trading activity in the yen is muted, with Japanese markets closed today for the Health Sports Day holiday.
December gold (GCZ3) today is up +13.9 (+0.75%), and Dec silver (SIZ23) is up +0.042 (+0.19%). Precious metals prices this morning are moderately higher, with gold and silver posting 1-week highs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend. Also, dovish comments today from Dallas Fed President Logan gave precious metals a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. A stronger dollar today is limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Here's My No. 1 "Magnificent Seven" AI Stock Pick
Markets Today: Stocks Retreat on Conflict in the Middle East
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran. Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. Today’s stock movers… Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. Stocks are mixed after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. EUR/USD (^EURUSD) today is down by -0.32%.
|
e69f6c5d-688c-40c9-8cfc-244712c30441
|
718053.0
|
2023-10-09 00:00:00 UTC
|
Stocks Higher Despite Middle East Turmoil
|
DDOG
|
https://www.nasdaq.com/articles/stocks-higher-despite-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.58%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.39%.
Stocks are higher this afternoon, despite the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +4% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
On the positive side for stocks, today’s surge in crude prices has sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Dovish comments today from Dallas Fed President Logan, a known hawk, are supporting stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 14% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 27% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-1/2 week low of 2.774% and is down -10.3 bp at 2.781%. The 10-year UK gilt yield fell to a 1-week low of 4.483% and is down -7.5 bp at 4.499%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.98%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL) is down more than -6% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%.
Airline stocks are under pressure today as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Also, Alaska Air Group (ALK) is down more than -3%, and Southwest Airlines (LUV) is down more than -3%.
Paramount Global (PARA) is down more than -3% after Needham & Co cut its price target on the stock to $15 from $28.
Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
Moderna (MRNA) is down more than -5% to lead losers in the Nasdaq 100 after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy.
Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Fidelity National Information (FIS) is down more than -3% after Truist Securities cut its price target on the stock to $50 from $60.
Defense stocks are rallying today after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) is up more than +8% to lead gainers in the S&P 500. Also, Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Huntington Ingalls Industries (HII) are up more than +6%. In addition, RTX Corp (RTX) is up more than +3%.
Energy stocks and energy service companies are climbing today, with the price of WTI crude up more than +3%. As a result, Marathon Oil (MRO) and Hess Corp (HES) are up more than +5%. Also, ConocoPhillips (COP), Devon Energy (DVN), Exxon Mobil (XOM), Occidental Petroleum (OXY), and Schlumberger (SLB) are up more than +4%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) is up more than +6% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) is up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) is up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +26 ticks at a 1-week high, although the U.S. cash Treasury market is closed today for the Columbus Day holiday. T-notes have support from safe-haven demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. Dovish comments from Dallas Fed President Logan also gave T-notes a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
The dollar index (DXY00) today is up by +0.21%. The dollar is moving higher today on increased safe-haven demand after Israel declared war on Hamas. The stock slide today has also boosted the liquidity demand for the dollar. The dollar fell back from its best levels on comments from Dallas Fed President Logan, who said higher Treasury yields may mean less of a need for the Fed to raise interest rates.
EUR/USD (^EURUSD) today is down by -0.32%. A stronger dollar today is weighing on the euro. Losses in EUR/USD are limited by hawkish comments from ECB Vice President Guindos, who said interest rates are likely to stay at their current levels for some time.
Today’s Eurozone economic news was mixed for the euro. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
USD/JPY (^USDJPY) today is down by -0.35%. Ramped-up geopolitical risks have sparked safe-haven buying of the yen after the surprise attack by Hamas militants on Israel over the weekend. Also, a rally in T-note prices today is supportive of the yen. Trading activity in the yen is muted, with Japanese markets closed today for the Health Sports Day holiday.
December gold (GCZ3) today is up +13.9 (+0.75%), and Dec silver (SIZ23) is up +0.042 (+0.19%). Precious metals prices this morning are moderately higher, with gold and silver posting 1-week highs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend. Also, dovish comments today from Dallas Fed President Logan gave precious metals a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. A stronger dollar today is limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Here's My No. 1 "Magnificent Seven" AI Stock Pick
Markets Today: Stocks Retreat on Conflict in the Middle East
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran. Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. Today’s stock movers… Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials. EUR/USD (^EURUSD) today is down by -0.32%.
|
018f2e52-01fb-4a65-b84e-107422831b9a
|
718054.0
|
2023-10-09 00:00:00 UTC
|
Stocks Under Pressure from Middle East Turmoil
|
DDOG
|
https://www.nasdaq.com/articles/stocks-under-pressure-from-middle-east-turmoil
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.36%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.25%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.65%.
Stocks this morning are moderately lower as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. European government bond yields are lower as investors flock to the safety of government debt, although trading in the U.S. Treasury market is closed today for the Columbus Day holiday.
The attack by Hamas on Israel sent crude oil prices soaring by more than +3% on concern the conflict could widen and threaten crude supplies from the Middle East. The U.S. sent a group of warships to the eastern Mediterranean. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
On the positive side for stocks, today’s surge in crude prices has sparked a rally in energy stocks. Also, the surprise attack by Hamas on Israel over the weekend has fueled gains in defense stocks.
Dovish comments today from Dallas Fed President Logan, a known hawk, are supporting stocks. Logan believes the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again, saying, "Higher term premiums result in higher interest rates for the same setting of the fed funds rate, all else equal. Thus, if premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening."
The markets are discounting a 14% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 27% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
European bond yields are moving lower. The 10-year T-note is not trading today, with the U.S. Treasury market closed for the Columbus Day holiday. The 10-year German bund yield fell to a 1-1/2 week low of 2.774% and is down -10.3 bp at 2.781%. The 10-year UK gilt yield fell to a 1-week low of 4.483% and is down -7.5 bp at 4.499%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.98%. China’s Shanghai Composite Index closed down -0.44%. Japan’s Nikkei 225 today was closed for a holiday.
Today’s stock movers…
Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Carnival (CCL) is down more than -6% to lead losers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises Ltd (RCL) are down more than -4%.
Airline stocks are under pressure today as most international carriers suspended flights to Israel following the surprise attack by Hamas over the weekend. United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are down by more than -5%. Also, Alaska Air Group (ALK) is down more than -3%, and Southwest Airlines (LUV) is down more than -3%.
Paramount Global (PARA) is down more than -3% after Needham & Co cut its price target on the stock to $15 from $28.
Walmart (WMT) is down more than -1% to lead losers in the Dow Joines Industrials after a three-year probe by Mexican investigators concluded the company had abused its market power.
Moderna (MRNA) is down more than -5% to lead losers in the Nasdaq 100 after Bloomberg Intelligence said the company would need a “significant acceleration in inoculations” in Q4 of its Covid vaccines to achieve its guidance range of $6 billion to $8 billion.
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy.
Illumina (ILMN) is down more than -3% after Bloomberg reported that the European Union vetoed the company’s $7 billion takeover of Grail Inc amid concerns the deal would have hampered competition.
Fidelity National Information (FIS) is down more than -3% after Truist Securities cut its price target on the stock to $50 from $60.
Defense stocks are rallying today after the surprise attack by Hamas on Israel over the weekend. Northrop Grumman (NOC) is up more than +8% to lead gainers in the S&P 500. Also, Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Huntington Ingalls Industries (HII) are up more than +6%. In addition, RTX Corp (RTX) is up more than +3%.
Energy stocks and energy service companies are climbing today, with the price of WTI crude up more than +3%. As a result, Marathon Oil (MRO) and Hess Corp (HES) are up more than +5%. Also, ConocoPhillips (COP), Devon Energy (DVN), Exxon Mobil (XOM), Occidental Petroleum (OXY), and Schlumberger (SLB) are up more than +4%. In addition, Chevron (CVX) is up more than +3% to lead gainers in the Dow Jones Industrials.
Zscaler (ZS) is up more than +6% to lead gainers in the Nasdaq 100 after Barclays upgraded the stock to overweight from equal weight.
Motorola Solutions (MSI) is up more than +3% after Bank of America started coverage of the stock with a buy recommendation and a price target of $330.
Kinder Morgan (KMI) is up more than +2% after Goldman Sachs reinstated coverage of the stock with a buy recommendation and a price target of $20.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are up +26 ticks at a 1-week high, although the U.S. cash Treasury market is closed today for the Columbus Day holiday. T-notes have support from safe-haven demand due to geopolitical risks after the surprise attack by Hamas militants on Israel over the weekend. Dovish comments from Dallas Fed President Logan also gave T-notes a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again.
The dollar index (DXY00) today is up by +0.21%. The dollar is moving higher today on increased safe-haven demand after Israel declared war on Hamas. The stock slide today has also boosted the liquidity demand for the dollar. The dollar fell back from its best levels on comments from Dallas Fed President Logan, who said higher Treasury yields may mean less of a need for the Fed to raise interest rates.
EUR/USD (^EURUSD) today is down by -0.32%. A stronger dollar today is weighing on the euro. Losses in EUR/USD are limited by hawkish comments from ECB Vice President Guindos, who said interest rates are likely to stay at their current levels for some time.
Today’s Eurozone economic news was mixed for the euro. On the negative side, German Aug industrial production fell -0.2% m/m, slightly weaker than expectations of -0.1% m/m. Conversely, Eurozone Oct Sentix investor confidence fell -0.4 to -21.9, a smaller decline than expectations of -24.0.
ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs.
USD/JPY (^USDJPY) today is down by -0.35%. Ramped-up geopolitical risks have sparked safe-haven buying of the yen after the surprise attack by Hamas militants on Israel over the weekend. Also, a rally in T-note prices today is supportive of the yen. Trading activity in the yen is muted, with Japanese markets closed today for the Health Sports Day holiday.
December gold (GCZ3) today is up +13.9 (+0.75%), and Dec silver (SIZ23) is up +0.042 (+0.19%). Precious metals prices this morning are moderately higher, with gold and silver posting 1-week highs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend. Also, dovish comments today from Dallas Fed President Logan gave precious metals a boost when she said the recent jump in long-term Treasury yields may mean less need for the Fed to raise interest rates again. A stronger dollar today is limiting the upside in precious metals. Also, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Here's My No. 1 "Magnificent Seven" AI Stock Pick
Markets Today: Stocks Retreat on Conflict in the Middle East
Option Volatility And Earnings Report For October 9 - 13
Stocks Set to Open Lower as Investors Await U.S. Inflation Data and FOMC Minutes, Oil Soars on Middle East Conflict
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. Stocks this morning are moderately lower as geopolitical concerns sparked risk-off sentiment in asset markets after the militant group Hamas attacked Israel over the weekend, leaving more than 1,100 dead. The Wall Street Journal reported that Iranian security officials helped Hamas plan Saturday’s surprise attack, which raises the risks there may be retaliation measures against Iran.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. ECB Vice President Guindos said the ECB must stay vigilant on inflation, and interest rates are likely to stay at their current levels for some time "due to the evolution of oil prices, the depreciation of the euro, and the evolution of unit labor costs. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. Today’s stock movers… Cruise line operators are retreating today as travel stocks take a hit on the conflict in the Middle East. Precious metals are climbing on increased safe-haven demand today as global stocks retreated on geopolitical risks after Hamas militants attacked Israel over the weekend.
|
Datadog (DDOG) is down more than -4% after Bank of America downgraded the stock to neutral from buy. EUR/USD (^EURUSD) today is down by -0.32%. USD/JPY (^USDJPY) today is down by -0.35%.
|
d231f8d6-c801-4a4e-8f54-9ffc037b6e08
|
718055.0
|
2023-10-09 00:00:00 UTC
|
Why DataDog Stock Dropped Today
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-stock-dropped-today
|
nan
|
nan
|
What happened
Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider.
So what
In a note to clients early Monday morning, Bank of America analyst Koji Ikeda downgraded shares of Datadog from buy to neutral and lowered his firm's per-share price target from $123 to $105. The cloud computing stock is currently trading around $91 per share as of this writing.
Ikeda rationalized that he views Datadog's "upside as likely capped as conservative demand, competitive threats, and meaningful AI tailwinds likely come in second half 2024, constraining the growth growth profile."
Ikeda also lowered his firm's estimates for Datadog's revenue to $2.4 billion in 2024 (below consensus estimates for $2.53 billion) and $2.9 billion in 2025 (below consensus estimates for $3.25 billion).
Now what
The timing of the call is curious. While shares of Datadog are still up around 26% year to date even after today's drop, they've also already pulled back sharply in August after the company's conservative outlook overshadowed its better-than-expected second-quarter results.
We should receive more perspective on whether Bank of America's caution is merited when Datadog reports third-quarter results in early November. But for now, it's no surprise to see the stock pulling back as investors second-guess Wall Street's forward revenue expectations today.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Steve Symington has positions in Datadog. The Motley Fool has positions in and recommends Bank of America and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider. So what In a note to clients early Monday morning, Bank of America analyst Koji Ikeda downgraded shares of Datadog from buy to neutral and lowered his firm's per-share price target from $123 to $105. While shares of Datadog are still up around 26% year to date even after today's drop, they've also already pulled back sharply in August after the company's conservative outlook overshadowed its better-than-expected second-quarter results.
|
What happened Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider. So what In a note to clients early Monday morning, Bank of America analyst Koji Ikeda downgraded shares of Datadog from buy to neutral and lowered his firm's per-share price target from $123 to $105. Ikeda also lowered his firm's estimates for Datadog's revenue to $2.4 billion in 2024 (below consensus estimates for $2.53 billion) and $2.9 billion in 2025 (below consensus estimates for $3.25 billion).
|
What happened Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider. So what In a note to clients early Monday morning, Bank of America analyst Koji Ikeda downgraded shares of Datadog from buy to neutral and lowered his firm's per-share price target from $123 to $105. Ikeda also lowered his firm's estimates for Datadog's revenue to $2.4 billion in 2024 (below consensus estimates for $2.53 billion) and $2.9 billion in 2025 (below consensus estimates for $3.25 billion).
|
What happened Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider. But for now, it's no surprise to see the stock pulling back as investors second-guess Wall Street's forward revenue expectations today. The Motley Fool has positions in and recommends Bank of America and Datadog.
|
7e3ff8a4-f697-4739-8089-6c505cb701fc
|
718056.0
|
2023-10-09 00:00:00 UTC
|
Nasdaq 100 Movers: DDOG, CRWD
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ddog-crwd
|
nan
|
nan
|
In early trading on Monday, shares of CrowdStrike Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, CrowdStrike Holdings registers a 75.1% gain.
And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 3.8%. Datadog is showing a gain of 23.6% looking at the year to date performance.
Two other components making moves today are Moderna, trading down 3.0%, and Diamondback Energy, trading up 3.5% on the day.
VIDEO: Nasdaq 100 Movers: DDOG, CRWD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Nasdaq 100 Movers: DDOG, CRWD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, CrowdStrike Holdings registers a 75.1% gain. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 3.8%.
|
VIDEO: Nasdaq 100 Movers: DDOG, CRWD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of CrowdStrike Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. Year to date, CrowdStrike Holdings registers a 75.1% gain.
|
VIDEO: Nasdaq 100 Movers: DDOG, CRWD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of CrowdStrike Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 3.8%.
|
VIDEO: Nasdaq 100 Movers: DDOG, CRWD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of CrowdStrike Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 3.8%.
|
5c93b11b-3e7e-4ab5-8b5b-0b2284f03ec8
|
718057.0
|
2023-10-08 00:00:00 UTC
|
The Impact of Inflation on the Stock Market: 3 Things Investors Need to Know
|
DDOG
|
https://www.nasdaq.com/articles/the-impact-of-inflation-on-the-stock-market%3A-3-things-investors-need-to-know
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The U.S. Federal Reserve started its interest rate hike campaign in March 2022 after inflation had risen to an unprecedented level. Though inflation hit at record annualized rate of 9.1% in June of last year, prices have started to come down since then. For those looking to see how far the Fed has come in its fight against inflation, look no further than the CPI reports in June, July, and August the Bureau of Labor Statistics reported pricing pressures had come down significantly. Moreover, the August inflation report, in particular, exhibited positive developments in the labor market where the Fed has been the most concerned. While job growth in the United States picked up in August, wage growth moderated and the unemployment spiked to 3.8%.
All of that to say, while inflation has indeed trended downward, there are still three ways in which inflation impacts the stock market that investors should be aware about.
Inflation has eased but pain-points still exist
Source: Michael Wick / Shutterstock.com
Stock investors have been enjoying a bull market since the beginning of 2023. Of course, this was not expected. Last year, equities in the U.S. could only be described as volatile and largely underperforming. The macroeconomic environment, already beleaguered with sustained supply chain bottlenecks from the pandemic, intensified in part by Russia’s invasion of Ukraine, causing commodities prices to elevate globally. Although supply chain bottlenecks have greatly dissipated, according to the Federal Reserve Bank of New York, commodities prices may be on the run again, threatening the U.S. Federal Reserve’s progress. Saudi Arabia and Russia will extend their oil production cuts until the end of the year and U.S. oil reserve figures have slipped downward, which will elevate crude prices in short and medium term.
The labor market, a major concern of persistent inflation, has showed mixed signs of cooling down. The August data showcased moderated wage growth, but the number of job openings for that month unexpectedly grew, thereby rattling markets. Still, initial labor market data for September showed the private sector added less jobs than expected.
Ultimately, nothing is yet set in stone, and as pain-points disappear and resurface, investors should expect corresponding volatility in the broader equities market.
Interest rates could stay elevated for longer
Source: Yellow_man / Shutterstock.com
The debate about the ceiling for the Federal Funds rate, the benchmark interest rate in the U.S., continues unabated. Since the Fed’s eleventh rate hike in July, which saw the Federal Funds rate climb another 25 basis points (bps), Fed chairman, Jerome Powell, and other officials have adopted a ‘hawkish hold’ approach to their hike cycle. Sure, inflation has come down significantly, but not all Fed officials seem convinced. In their September meeting, Federal Reserve rate projections baked in another 25bps increase towards the end of the year. Whether this comes into fruition will be dependent upon the economic data that comes out in the following weeks.
Fed officials have also hinted rates are likely to be higher for ‘sometime’, which could place pressure on stocks in both 2023 and 2024. Interest rates tend to have a lagged effect on economic output and unemployment, so if they are to remain as elevated as they are for an even longer period of time, negative economic ramifications could surface, place both the state of broader economy and equities in jeopardy.
SMB-focused and consumer discretionary stocks could be most at risk
Source: Shutterstock
Persistent inflation and interest rates higher for longer could put unduly pressure on shares of public companies focused on servicing small-to-medium sized businesses (SMBs) and delivering consumer discretionary products. While SMBs are an important base of customers that could drive robust top-line growth figures, in times of higher interest rates, slowing economic activity, or other economic shocks, these businesses tend to be less resilient than their larger enterprise counterparts. This is why companies like Datadog (NASDAQ:DDOG), EverCommerce (NASDAQ:EVCM), and the recently IPO’d Instacart (NASDAQ:CART) – amongst many others I have written about in the past – have all experienced a decline in new customers or selling volume.
Similarly, consumer discretionary stocks, which rely heavily on consumers with disposable income, could be at risk as well, especially if rates remain elevated. The Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY), a consumer-focused exchange traded fund, has slipped nearly 10% since mid-September, most likely due to traders coming to terms with the viability of these companies’ business models as their customer base becomes more cash constrained. Student debt payments set to restart later this month also do not spell good news for American consumers.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The Impact of Inflation on the Stock Market: 3 Things Investors Need to Know appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This is why companies like Datadog (NASDAQ:DDOG), EverCommerce (NASDAQ:EVCM), and the recently IPO’d Instacart (NASDAQ:CART) – amongst many others I have written about in the past – have all experienced a decline in new customers or selling volume. The macroeconomic environment, already beleaguered with sustained supply chain bottlenecks from the pandemic, intensified in part by Russia’s invasion of Ukraine, causing commodities prices to elevate globally. The August data showcased moderated wage growth, but the number of job openings for that month unexpectedly grew, thereby rattling markets.
|
This is why companies like Datadog (NASDAQ:DDOG), EverCommerce (NASDAQ:EVCM), and the recently IPO’d Instacart (NASDAQ:CART) – amongst many others I have written about in the past – have all experienced a decline in new customers or selling volume. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The U.S. Federal Reserve started its interest rate hike campaign in March 2022 after inflation had risen to an unprecedented level. SMB-focused and consumer discretionary stocks could be most at risk Source: Shutterstock Persistent inflation and interest rates higher for longer could put unduly pressure on shares of public companies focused on servicing small-to-medium sized businesses (SMBs) and delivering consumer discretionary products.
|
This is why companies like Datadog (NASDAQ:DDOG), EverCommerce (NASDAQ:EVCM), and the recently IPO’d Instacart (NASDAQ:CART) – amongst many others I have written about in the past – have all experienced a decline in new customers or selling volume. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The U.S. Federal Reserve started its interest rate hike campaign in March 2022 after inflation had risen to an unprecedented level. Interest rates could stay elevated for longer Source: Yellow_man / Shutterstock.com The debate about the ceiling for the Federal Funds rate, the benchmark interest rate in the U.S., continues unabated.
|
This is why companies like Datadog (NASDAQ:DDOG), EverCommerce (NASDAQ:EVCM), and the recently IPO’d Instacart (NASDAQ:CART) – amongst many others I have written about in the past – have all experienced a decline in new customers or selling volume. Still, initial labor market data for September showed the private sector added less jobs than expected. In their September meeting, Federal Reserve rate projections baked in another 25bps increase towards the end of the year.
|
33c7a788-65ab-4475-9c21-4070f643621a
|
718058.0
|
2023-10-06 00:00:00 UTC
|
Broader Market Under Pressure on Fed Rate Hike Concerns
|
DDOG
|
https://www.nasdaq.com/articles/broader-market-under-pressure-on-fed-rate-hike-concerns
|
nan
|
nan
|
What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.21%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.24%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.11%.
Stocks this morning are mixed, with the Dow Jones Industrials falling to a 4-month low. The broader market is under pressure today after bond yields jumped when the monthly U.S. payroll report showed Sep nonfarm payrolls surged +336,000, well above expectations of +170,000 and the most in eight months. The strength in the U.S. labor market bolsters the chances that the Fed may boost interest rates at its next meeting in November.
On the positive side, Pioneer Natural Resources is up more than +9% after Bloomberg News reported that Exxon Mobil is in talks to acquire the company. Also, strength in cybersecurity stocks is lifting the Nasdaq 100 into positive territory.
U.S. Sep nonfarm payrolls surged +336,000, well above expectations of +170,000 and the most in eight months. Also, Aug nonfarm payrolls were revised upward by 40,000 to +227,000 from the initially reported +187,000. The Sep unemployment rate was unchanged at 3.8%, weaker than expectations of a decline to 3.7%.
U.S. Sep average hourly earnings rose +0.2% m/m and +4.2% y/y, weaker than expectations of +0.3% m/m and +4.3% y/y.
The markets are discounting a 32% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 50% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are moving higher. The 10-year T-note yield rose to a 16-year high of 4.885% and is up +8.2 bp at 4.801%. The 10-year German bund yield is up +2.5 bp at 2.902%. The 10-year UK gilt yield is up +5.5 at 4.597%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.52%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -0.26%.
Today’s stock movers…
AES Corp (AES) is down more than -5% to lead losers in the S&P 500 after UBS downgraded the stock to neutral from buy.
Beverage and snack stocks are under pressure today after Walmart said it’s already seeing an impact on shopping demand from people taking Ozempic, Wegovy, and other appetite-suppressing medications. As a result, Mondelez International (MDLZ) is down more than -5% to lead losers in the Nasdaq 100. Also, Kellanova (K), JM Smucker (SJM), Kraft Heinz (KHC), Keurig Dr Pepper (KDP), McCormick & Co (MKC), and Hormel Foods (HRL) are down more than -3%.
Walmart (WMT) and Costco Wholesale (COST) are down more than -3% after Walmart said it’s already seeing an impact on food shopping demand from people taking the diabetes drug Ozempic, Wegovy, and other appetite-suppressing medications.
Telecommunications companies are falling today on concerns that the Federal Communications Commission will force the companies to build new networks in areas of the U.S. deemed digitally deprived. As a result, Verizon Communications (VZ) is down more than -4% to lead losers in the Dow Jones Industrials. Also, AT&T (T) is down more than -4%, and SBA Communications (SBAC) is down more than -2%.
Tesla (TSLA) is down more than -2% after it cut the price on its most popular cars in the U.S.
LCI Industries (LCII) is down more than -6% after DA Davidson downgraded the stock to underperform from neutral.
Exxon Mobil (XOM) is down more than -2% after Bloomberg News reported the company is in talks to acquire Pioneer Natural Resources.
Levi Strauss (LEVI) is down more than -1% after reporting Q3 revenue of $1.51 billion, below the consensus of $1.54 billion, and cutting its full-year revenue forecast to 0% to +1% from a prior view of +1.5% to +2.5%.
Pioneer Natural Resources (PXD) is up more than +9% to lead gainers in the S&P 500 after Bloomberg News reported that Exxon Mobil is in talks to acquire the company.
Strength in cybersecurity stocks is lifting the Nasdaq 100 into positive territory. Crowdstrike Holdings (CRWD) and Zscaler (ZS) are up more than +4%. Also, Datadog (DDOG) and Palo Alto Networks (PANW) are up more than +3%.
MarketAxess Holdings (MKTX) is up more than +5% after UBS initiated coverage of the stock with a buy recommendation and a price target of $285.
MGM Resorts International (MGM) is up more than +2% after several analysts said the recent cyberattack on the company will have a limited impact on earnings going forward.
U.S.-listed Chinese stocks are climbing today after the Shanghai Securities News reported that spending on China’s online platforms during the Golden Week holiday topped pre-pandemic levels. As a result, PDD Holdings (PDD) is up more than +6% to lead gainers in the Nasdaq 100. Also, JD.com (JD), Alibaba Group Holding (BABA), Baidu (BIDU), and NetEase (NTES) are up more than +1%.
Elf Beauty (ELF) is up more than +3% after Jeffries upgraded the stock to buy from hold with a price target of $115.
Shoals Technologies Group (SHLS) is up more than +1% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $28.
Eaton Corp Plc (ETN) is up more than +1% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $230.
Across the markets…
December 10-year T-notes (ZNZ23) this morning are down -19 ticks, and the 10-year T-note yield is up +8.2 bp at 4.801%. Dec T-notes today retreated and are just above Wednesday’s 16-year nearest-futures low, although the 10-year T-note yield posted a new 16-year high of 4.885%. Today’s larger-than-expected jump in U.S Sep nonfarm payrolls undercut T-notes and bolsters the chance of the Fed raising interest rates at the November 1 FOMC meeting. On the positive side, U.S. Sep hourly earnings rose less than expected, easing concerns about wage pressures.
The dollar index (DXY00) today is up by +0.35%. Today’s stronger-than-expected U.S. Sep nonfarm payroll report pushed T-note yields higher and is bullish for the dollar. The strength in the U.S. labor market also increases the chances of the Fed tightening monetary policy further, a bullish development for the dollar. Weakness in stocks today also boosts liquidity demand for the dollar.
EUR/USD (^EURUSD) today is down by -0.37%. The euro today gave up overnight gains and is moderately lower as the dollar jumped on the stronger-than-expected U.S Sep payrolls report. The euro today initially moved higher on a stronger-than-expected German Aug factory orders report and on hawkish comments from ECB Executive Board member Schnabel, who said the ECB will continue to raise interest rates if inflation risks materialize.
German Aug factory orders rose +3.9% m/m, stronger than expectations of +1.5% m/m.
ECB Executive Board member Schnabel said, "I still see upside risks to inflation, and if they materialized, further interest rate hikes could be necessary."
USD/JPY (^USDJPY) is up by +0.57%. The yen today is moderately lower as the better-than-expected U.S. Sep payrolls report pushed the dollar and T-note yields higher. Also, today’s weaker-than-expected Japanese economic reports on Aug household spending and Aug labor cash earnings are dovish for BOJ policy and bearish for the yen. A supportive factor for the yen was the larger-than-expected increase in the Aug leading index CI to a 9-month high.
Japan Aug household spending fell -2.5% y/y, a smaller decline than expectations of -3.9% y/y.
Japan Aug labor cash earnings rose +1.1% y/y, weaker than expectation of +1.5% y/y.
The Japan Aug leading index CI rose +1.3 to a 9-month high of 109.5, stronger than expectations of 109.1.
December gold (GCZ3) today is up +2.7 (+0.15%), and Dec silver (SIZ23) is up +0.401 (+1.91%). Precious metals prices this morning recovered from early losses and are moderately higher. Precious metals moved higher as a slump in stocks today sparked some safe-haven demand for precious metals. Silver also garnered support today from the stronger-than-expected German Aug factory orders report, a positive factor for industrial metals demand. Today’s better-than-expected U.S. Sep payrolls report boosted the dollar and T-note yields and initially knocked gold prices down to a 7-month low. Also, hawkish comments from ECB Executive Board member Schnabel weighed on gold when she said additional ECB rate hikes may be necessary if inflation risks materialize. In addition, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low on Thursday.
More Stock Market News from Barchart
Should You Buy the Worst-Performing Nasdaq-100 Stock of 2023?
Microsoft Stock: Don't Overlook This AI Pick Hiding in Plain Sight
Markets Today: Stocks Fall and Bond Yields Jump as U.S. Payrolls Surge
A Little Known Strategy Indicates These Three Companies Could Explode!
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Also, Datadog (DDOG) and Palo Alto Networks (PANW) are up more than +3%. Also, Kellanova (K), JM Smucker (SJM), Kraft Heinz (KHC), Keurig Dr Pepper (KDP), McCormick & Co (MKC), and Hormel Foods (HRL) are down more than -3%. U.S.-listed Chinese stocks are climbing today after the Shanghai Securities News reported that spending on China’s online platforms during the Golden Week holiday topped pre-pandemic levels.
|
Also, Datadog (DDOG) and Palo Alto Networks (PANW) are up more than +3%. Today’s larger-than-expected jump in U.S Sep nonfarm payrolls undercut T-notes and bolsters the chance of the Fed raising interest rates at the November 1 FOMC meeting. The euro today initially moved higher on a stronger-than-expected German Aug factory orders report and on hawkish comments from ECB Executive Board member Schnabel, who said the ECB will continue to raise interest rates if inflation risks materialize.
|
Also, Datadog (DDOG) and Palo Alto Networks (PANW) are up more than +3%. The broader market is under pressure today after bond yields jumped when the monthly U.S. payroll report showed Sep nonfarm payrolls surged +336,000, well above expectations of +170,000 and the most in eight months. The euro today initially moved higher on a stronger-than-expected German Aug factory orders report and on hawkish comments from ECB Executive Board member Schnabel, who said the ECB will continue to raise interest rates if inflation risks materialize.
|
Also, Datadog (DDOG) and Palo Alto Networks (PANW) are up more than +3%. The 10-year T-note yield rose to a 16-year high of 4.885% and is up +8.2 bp at 4.801%. EUR/USD (^EURUSD) today is down by -0.37%.
|
bf46dcd8-5104-4cd8-a25e-0e7ac5c357bc
|
718059.0
|
2023-10-04 00:00:00 UTC
|
3 Killer Growth Stocks That Could Set You Up for Life
|
DDOG
|
https://www.nasdaq.com/articles/3-killer-growth-stocks-that-could-set-you-up-for-life
|
nan
|
nan
|
There's little doubt that the best path to long-term wealth generation is investing in quality stocks and holding them for years -- if not decades. While generating even average returns can provide a substantial nest egg, there is a special breed of companies that can ramp up potential returns for investors.
Finding stocks with the winning combination of a best-in-class offering, a large addressable market, and significant secular tailwinds can provide life-changing returns that can help set you up in style. Let's look at three stocks that fit the criteria for game-changing investments that could help set you up for life.
Image source: Getty Images.
1. Datadog: Keeping an eye on critical systems
The digital transformation continues, with more businesses than ever adopting cloud computing. In the midst of this evolution, keeping customer-facing systems up and running has never been more critical.
That's where cloud-native monitoring and analytics pioneer Datadog (NASDAQ: DDOG) comes in. The company's software-as-a-service (SaaS) systems monitor the performance of servers, databases, containers, and front-end systems, all from a convenient dashboard, notifying developers of problems before they reach critical mass. Perhaps as importantly, the system detects anomalies that foreshadow future problems.
Datadog was named a leader in the vaunted 2023 Gartner Magic Quadrant for application performance monitoring and observability, marking the third consecutive year achieving this distinction. The company was similarly identified as a leader in Forrester Research's Wave report for artificial intelligence (AI) for IT operations, noted for its data insights and visualizations.
Even amid the worst downturn in more than a decade, Datadog continued to notch enviable growth. In the second quarter, Datadog's revenue grew 25% year over year to $509 million, while its adjusted earnings per share (EPS) of $0.36 surged 50%. Furthermore, even though the company isn't yet delivering profits on a generally accepted accounting principles (GAAP) basis, it continues to generate strong operating and free cash flow, which shows that its lack of profits is related to depreciation and other noncash items, so profitability is most likely a matter of time.
Its customer metrics help backstop its strong growth, as Datadog's most lucrative customers -- those spending $100,000 or more in annual recurring revenue (ARR) -- climbed 23% year over year.
Datadog's top-notch technology, robust customer growth, and strong financial performance illustrate why the stock is a buy. Additionally, the company has a large addressable market, which will help it continue its upward growth trajectory. Datadog's revenue of $1.67 billion last year is a drop in the bucket compared to its vast market opportunity, which management estimates will climb to $62 billion by 2026.
2. HubSpot: Its CRM technology hits the spot
HubSpot (NYSE: HUBS) is best known for its novel approach to advertising. It pioneered the concept of inbound marketing which attracts potential customers by developing engaging online content (including on social media and blog posts) rather than chasing them.
From those humble beginnings, HubSpot has evolved. The company now offers a wide range of interconnected customer relationship management (CRM) solutions, including marketing, sales, service, content management systems, and operations, with solutions to help manage data, reporting, automation, content, messaging, and even payments.
HubSpot was named a leader in the vaunted 2023 Gartner Magic Quadrant for business-to-business (B2B) marketing automation platforms, marking the third consecutive year with that designation. Furthermore, the company earns 4.4 of 5 stars from Gartner's Peer Insights report, while 82% of reporting customers would recommend its services.
The company's second-quarter results help illustrate its potential. Revenue grew 25% year over year to $529 million, while adjusted EPS of $1.41 tripled. The results were driven by strong customer additions, which grew 23%. The company continued to expand its relationships with existing users, as 33% of customers use three or more Hubs, which generates 50% of annual recurring revenue.
HubSpot's leading technology, expanding customer relationships, and consistent financial performance illustrate the company's bona fides. Then there's its large and growing market opportunity. HubSpot generated revenue of $1.73 billion in 2022, which is just the beginning compared to its growing total addressable market, which management estimates will climb from $51 billion this year to $77 billion by 2028.
3. MongoDB: The future of databases
MongoDB (NASDAQ: MDB) made a name for itself by upending the traditional database. While most rival solutions are limited to what can fit neatly into rows and columns, MongoDB's cloud-native Atlas platform is much more flexible, handling a wide variety of structured and unstructured data including social media posts, audio and video files, and even entire documents. This provides users with a much more robust database solution and also helps developers facilitate the creation of software and apps.
The company is also on the receiving end of numerous industry accolades. MongoDB was named a leader in the 2023 Gartner Magic Quadrant for cloud database management systems, "the only pure-play application database provider recognized as a leader." The company was also highlighted as a leader in the Forrester Wave report for translytical data platforms, which "represents the growing convergence between transactional, analytical, and streaming systems."
The results for MongoDB's fiscal 2024 second quarter (ended July 31) fill out the rest of the picture. Revenue grew 40% year over year to $424 million, while its adjusted EPS of $0.93 more than tripled. The results were driven by the addition of 8,000 new customers over the past year, up 22%, while those spending $100,000 in ARR increased 27%.
MongoDB generated revenue of $1.28 billion in fiscal 2023, which pales in comparison to its market opportunity, which management expects to grow to $136 billion by 2027.
Data by YCharts
The fine print
It's important to note that in keeping with the high-risk, high-reward nature of these stocks, they also come with a high valuation. MongoDB, Datadog, and HubSpot are selling for 13, 12, and 10 times forward sales, respectively, when a reasonable price-to-sales ratio is between 1 and 2. However, valuation should never be viewed in a vacuum.
Over the past four years, these high fliers have far outpaced the gains of the S&P 500 index, helping illustrate why they deserve a premium. Considering their overall performance, they don't seem nearly that expensive.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 2, 2023
Danny Vena has positions in Datadog, HubSpot, and MongoDB. The Motley Fool has positions in and recommends Datadog, HubSpot, and MongoDB. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That's where cloud-native monitoring and analytics pioneer Datadog (NASDAQ: DDOG) comes in. Finding stocks with the winning combination of a best-in-class offering, a large addressable market, and significant secular tailwinds can provide life-changing returns that can help set you up in style. It pioneered the concept of inbound marketing which attracts potential customers by developing engaging online content (including on social media and blog posts) rather than chasing them.
|
That's where cloud-native monitoring and analytics pioneer Datadog (NASDAQ: DDOG) comes in. Its customer metrics help backstop its strong growth, as Datadog's most lucrative customers -- those spending $100,000 or more in annual recurring revenue (ARR) -- climbed 23% year over year. The company now offers a wide range of interconnected customer relationship management (CRM) solutions, including marketing, sales, service, content management systems, and operations, with solutions to help manage data, reporting, automation, content, messaging, and even payments.
|
That's where cloud-native monitoring and analytics pioneer Datadog (NASDAQ: DDOG) comes in. Its customer metrics help backstop its strong growth, as Datadog's most lucrative customers -- those spending $100,000 or more in annual recurring revenue (ARR) -- climbed 23% year over year. The company now offers a wide range of interconnected customer relationship management (CRM) solutions, including marketing, sales, service, content management systems, and operations, with solutions to help manage data, reporting, automation, content, messaging, and even payments.
|
That's where cloud-native monitoring and analytics pioneer Datadog (NASDAQ: DDOG) comes in. Datadog's top-notch technology, robust customer growth, and strong financial performance illustrate why the stock is a buy. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
06531c8c-ef83-4ac9-a3df-f287a9b710f6
|
718060.0
|
2023-10-03 00:00:00 UTC
|
A Bull Market Is Coming: 1 Super Stock Down 52% to Buy Right Now, According to Wall Street
|
DDOG
|
https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-1-super-stock-down-52-to-buy-right-now-according-to-wall-street
|
nan
|
nan
|
June 2022 marked the official beginning of a bear market as the S&P 500 index closed 20% below its all-time high, which met the technical criteria. Wall Street was in agreement, and the index continued to slide until October.
But the S&P 500 has recently traded more than 20% above that October low point, which prompted some analysts to declare the beginning of a new bull market. Others disagree, though, because they believe the index needs to reclaim its previous all-time high before the bulls are back in charge.
No matter which camp is right, history shows the broad market will rise to new heights over the long run. And while the Street is divided on the official classification of the market, it does have a clear bullish consensus on one stock.
The Wall Street Journal tracks 37 analysts covering cloud-monitoring stock Datadog (NASDAQ: DDOG), and the majority have given it the highest-possible buy rating. Here's why.
Image source: Getty Images.
Datadog just added artificial intelligence to its platform
First, what is cloud computing? Businesses used to store their data and host their websites by maintaining physical server hardware on location, which was expensive. Today, tech leaders like Amazon and Microsoft manage enormous, centralized data centers that businesses can rent for a small fraction of the cost.
Businesses can store their data and host their online sales channels without owning any physical infrastructure -- that is, they can operate in the cloud. But with so many facets of an enterprise now running online, tracking things like technical faults or even customer satisfaction requires specialized tools, and that's where Datadog comes in.
A business might be completely unaware its website is down in one specific region of the world, or for one specific group of customers, until it notices a drop in sales. Datadog's cloud observability platform monitors for those issues around the clock, so the business can rectify them before they affect the customer experience. And now, thanks to a new generative artificial intelligence (AI) tool, it's easier than ever to drill down to the root cause of a given problem.
It's called Bits AI, and it serves as a chatbot (much like ChatGPT) that is embedded in the Datadog platform. Operators can converse with Bits AI to identify, diagnose, and rectify faults far more quickly. It's effectively a hyper-intelligent assistant that knows the business' network inside and out.
That isn't the only way Datadog is exploring AI. It just launched an observability tool specifically for developers of large language models, which are foundational to generative AI applications. It can help them track the cost and the accuracy of a model in an automated fashion, saving hours of manual legwork.
Datadog expects a slow end to 2023, but there are positive signs on the horizon
The last 18 months have been marred by elevated inflation and rising interest rates, which have increased the cost of doing business. As a result, most software companies have seen their customers trim back spending and focus on optimizing their digital infrastructure for efficiency rather than investing in growth.
In the second quarter, that trend prompted Datadog to reduce its full-year revenue guidance to a range of $2.05 billion to $2.06 billion. The good news: The company is seeing evidence this tough period is coming to an end, which means it could experience a reacceleration in the new year.
With all of that said, Datadog's growth is still quite robust. Its second-quarter revenue of $509.5 million was up 25% year over year, and it also saw a 24% jump in the number of customers with annual recurring revenue of $100,000 on its platform.
That shows larger organizations view cloud monitoring as increasingly crucial -- and even a value-add to their business -- which bodes well for Datadog.
The company is also carefully managing costs, and its second-quarter net loss came in at just $3.9 million (or $0.01 per share). The company is treading water through this difficult economy and is waiting for the right time to start reinvesting more aggressively in growth. With over $2.1 billion in cash and marketable securities on its balance sheet, it is equipped to do so.
Bull market or not, Wall Street is very bullish on Datadog
Like many tech stocks, Datadog peaked during the tech frenzy of 2021 when interest rates were at record lows and the U.S. economy was thriving on trillions of dollars in economic stimulus. Its stock is currently trading 52% below that all-time high, which might be a great long-term opportunity for investors.
As I mentioned above, The Journal tracks 37 analysts covering Datadog, and 20 of them have given it the highest-possible buy rating. Another seven are in the overweight (bullish) camp, while 10 recommend holding. No analysts recommend selling.
Their consensus price target of $105.36 implies an upside of only 15% from where the stock trades today, but that's based on a short-term outlook. And many experts believe the Federal Reserve will begin cutting interest rates in mid-2024, which should drive more confidence in the corporate sector and among investors.
Lastly, cloud computing will only grow its reach as time progresses, especially because the cloud is where most AI applications are now being developed. Datadog clearly has its finger on the pulse of that trend with its new tools, so investors might do well to heed Wall Street's recommendation and own the stock ahead of the next bull market, whenever it does come.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of September 25, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Wall Street Journal tracks 37 analysts covering cloud-monitoring stock Datadog (NASDAQ: DDOG), and the majority have given it the highest-possible buy rating. Datadog expects a slow end to 2023, but there are positive signs on the horizon The last 18 months have been marred by elevated inflation and rising interest rates, which have increased the cost of doing business. Datadog clearly has its finger on the pulse of that trend with its new tools, so investors might do well to heed Wall Street's recommendation and own the stock ahead of the next bull market, whenever it does come.
|
The Wall Street Journal tracks 37 analysts covering cloud-monitoring stock Datadog (NASDAQ: DDOG), and the majority have given it the highest-possible buy rating. Datadog's cloud observability platform monitors for those issues around the clock, so the business can rectify them before they affect the customer experience. Bull market or not, Wall Street is very bullish on Datadog Like many tech stocks, Datadog peaked during the tech frenzy of 2021 when interest rates were at record lows and the U.S. economy was thriving on trillions of dollars in economic stimulus.
|
The Wall Street Journal tracks 37 analysts covering cloud-monitoring stock Datadog (NASDAQ: DDOG), and the majority have given it the highest-possible buy rating. Bull market or not, Wall Street is very bullish on Datadog Like many tech stocks, Datadog peaked during the tech frenzy of 2021 when interest rates were at record lows and the U.S. economy was thriving on trillions of dollars in economic stimulus. Datadog clearly has its finger on the pulse of that trend with its new tools, so investors might do well to heed Wall Street's recommendation and own the stock ahead of the next bull market, whenever it does come.
|
The Wall Street Journal tracks 37 analysts covering cloud-monitoring stock Datadog (NASDAQ: DDOG), and the majority have given it the highest-possible buy rating. It's called Bits AI, and it serves as a chatbot (much like ChatGPT) that is embedded in the Datadog platform. Its second-quarter revenue of $509.5 million was up 25% year over year, and it also saw a 24% jump in the number of customers with annual recurring revenue of $100,000 on its platform.
|
ee220148-d51e-4547-bba8-afc0161ef824
|
718061.0
|
2023-10-03 00:00:00 UTC
|
UBS Initiates Coverage of Datadog Inc - (DDOG) with Neutral Recommendation
|
DDOG
|
https://www.nasdaq.com/articles/ubs-initiates-coverage-of-datadog-inc-ddog-with-neutral-recommendation
|
nan
|
nan
|
Fintel reports that on October 2, 2023, UBS initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation.
Analyst Price Forecast Suggests 18.21% Upside
As of August 31, 2023, the average one-year price target for Datadog Inc - is 108.56. The forecasts range from a low of 70.70 to a high of $139.65. The average price target represents an increase of 18.21% from its latest reported closing price of 91.84.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 19.23%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1265 funds or institutions reporting positions in Datadog Inc -. This is an increase of 52 owner(s) or 4.29% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. Total shares owned by institutions increased in the last three months by 1.86% to 247,609K shares.
The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 10,392K shares representing 3.20% ownership of the company. In it's prior filing, the firm reported owning 6,095K shares, representing an increase of 41.35%. The firm increased its portfolio allocation in DDOG by 482.78% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
ICONIQ Capital holds 7,817K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 13,176K shares, representing a decrease of 68.55%. The firm increased its portfolio allocation in DDOG by 188.67% over the last quarter.
Wcm Investment Management holds 6,204K shares representing 1.91% ownership of the company. In it's prior filing, the firm reported owning 4,757K shares, representing an increase of 23.32%. The firm increased its portfolio allocation in DDOG by 65.05% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 2, 2023, UBS initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, UBS initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, UBS initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, UBS initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Neutral recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
32fe9f07-c871-44be-922e-d219ce8f64ec
|
718062.0
|
2023-10-03 00:00:00 UTC
|
Piper Sandler Upgrades Datadog Inc - (DDOG)
|
DDOG
|
https://www.nasdaq.com/articles/piper-sandler-upgrades-datadog-inc-ddog
|
nan
|
nan
|
Fintel reports that on October 2, 2023, Piper Sandler upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight .
Analyst Price Forecast Suggests 18.21% Upside
As of August 31, 2023, the average one-year price target for Datadog Inc - is 108.56. The forecasts range from a low of 70.70 to a high of $139.65. The average price target represents an increase of 18.21% from its latest reported closing price of 91.84.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 19.23%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1265 funds or institutions reporting positions in Datadog Inc -. This is an increase of 52 owner(s) or 4.29% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. Total shares owned by institutions increased in the last three months by 1.86% to 247,609K shares.
The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 10,392K shares representing 3.20% ownership of the company. In it's prior filing, the firm reported owning 6,095K shares, representing an increase of 41.35%. The firm increased its portfolio allocation in DDOG by 482.78% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
ICONIQ Capital holds 7,817K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 13,176K shares, representing a decrease of 68.55%. The firm increased its portfolio allocation in DDOG by 188.67% over the last quarter.
Wcm Investment Management holds 6,204K shares representing 1.91% ownership of the company. In it's prior filing, the firm reported owning 4,757K shares, representing an increase of 23.32%. The firm increased its portfolio allocation in DDOG by 65.05% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 2, 2023, Piper Sandler upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, Piper Sandler upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, Piper Sandler upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
Fintel reports that on October 2, 2023, Piper Sandler upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 28.00%. The put/call ratio of DDOG is 1.20, indicating a bearish outlook.
|
1d78c659-1c20-4b28-a1e9-9daf07c3b127
|
718063.0
|
2023-10-02 00:00:00 UTC
|
Stocks Set to Open Higher as Investors Await U.S. Jobs Data and Powell’s Comments, U.S. Avoids Shutdown
|
DDOG
|
https://www.nasdaq.com/articles/stocks-set-to-open-higher-as-investors-await-u.s.-jobs-data-and-powells-comments-u.s.
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are up +0.06%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.24% this morning as market participants looked ahead to comments from Fed Chair Jerome Powell and other Fed officials later today, while also bracing for more data on the U.S. labor market after a U.S. government shutdown was averted over the weekend.
The U.S. Congress passed a stopgap funding bill late on Saturday, sending the legislation to President Joe Biden, who signed it into law before the midnight deadline. The bill sustains government funding at 2023 levels until November 17th and does not include aid for Ukraine but increases federal disaster assistance by $16 billion.
In Friday’s trading session, Wall Street’s major averages closed mixed. Carnival Corporation (CCL) plunged about -5% and was the top percentage loser on the benchmark S&P 500 after the cruise line operator provided weaker-than-expected Q4 adjusted EBITDA guidance. Also, energy stocks retreated amid weakness in crude oil prices, with Schlumberger NV (SLB) falling more than -4% and Marathon Oil Corporation (MRO) dropping over -2%. On the bullish side, Nike Inc (NKE) soared more than +6% after the sports footwear and apparel giant topped Wall Street estimates for Q1 profit. In addition, Walgreens Boots Alliance Inc (WBA) climbed over +6% after Bloomberg reported that the company is contemplating the appointment of Tim Wentworth, the former leader of Cigna, as its next CEO.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.1% m/m and +3.9% y/y in August, compared to expectations of +0.2% m/m and +3.9% y/y. Also, the U.S. September Chicago PMI came in at 44.1, weaker than expectations of 47.6. In addition, the University of Michigan’s reading of consumer sentiment in September was revised upward to 68.1 from 67.7.
New York Fed President John Williams stated Friday that the Fed is at or near a peak on interest rates and is anticipated to hold around these levels for some time. “I expect we will need to maintain a restrictive stance of monetary policy for some time to fully restore balance to demand and supply and bring inflation back to our 2% longer-run goal,” Williams said.
U.S. rate futures have priced in a 28.9% chance of a 25 basis point rate hike at the conclusion of the Fed’s November meeting and a 37.6% probability of a 25 basis point rate increase at the December meeting.
The highlight of the upcoming week will be the U.S. Nonfarm Payrolls report for September. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate.
In addition, several Fed officials will be making appearances this week, including Williams, Mester, Bostic, Bowman, Goolsbee, Barkin, Daly, and Waller.
Meanwhile, Federal Reserve Chair Jerome Powell and Philadelphia Fed President Patrick Harker are scheduled to engage in a roundtable discussion with workers, small business owners, and community leaders later today.
Today, all eyes are focused on the U.S. ISM Manufacturing PMI in a couple of hours. Economists, on average, forecast that September ISM Manufacturing PMI will stand at 47.7, compared to the previous value of 47.6.
Also, investors will likely focus on U.S. ISM Manufacturing Prices data, which came in at 48.4 in August. Economists foresee the September figure to be 48.6.
U.S. S&P Global Manufacturing PMI will be reported today as well. Economists foresee this figure to stand at 48.9 in September, compared to 47.9 in August.
In the bond markets, United States 10-year rates are at 4.626%, up +1.10%.
The Euro Stoxx 50 futures are down -0.29% this morning as investors digested regional manufacturing data while also awaiting remarks from Fed Chair Jerome Powell to gain insight into the central bank’s interest rate trajectory. Losses in healthcare stocks are leading the overall market lower. A survey showed on Monday that manufacturing activity in the Eurozone continued to be stuck in a severe and broad-based downturn last month. In corporate news, Vivendi Se (VIV.FP) rose over +2% after Barclays upgraded the French media company to Overweight from Equal Weight.
Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
The Spanish September Manufacturing PMI has been reported at 47.7, stronger than expectations of 46.5.
The Italian September Manufacturing PMI came in at 46.8, stronger than expectations of 45.7.
The French September Manufacturing PMI stood at 44.2, stronger than expectations of 43.6.
The German September Manufacturing PMI arrived at 39.6, weaker than expectations of 39.8.
Eurozone September Manufacturing PMI came in at 43.4, in line with expectations.
Eurozone August Unemployment Rate was at 6.4%, in line with expectations.
U.K. September Manufacturing PMI stood at 44.3, stronger than expectations of 44.2.
Japan’s Nikkei 225 Stock Index (NIK) closed down -0.31%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index gave up early gains and closed lower, weighed by weakness in energy and healthcare stocks. The Bank of Japan’s Tankan survey showed Monday that confidence among Japan’s large manufacturers picked up more than expected, while sentiment among non-manufacturers surged to the highest level in 32 years in the three months to September. Separately, a survey showed on Monday that Japan’s factory activity fell at the fastest pace in seven months in September. Meanwhile, Japanese government bond yields climbed to decade highs on Monday, leading the country’s central bank to announce additional bond-buying operations. On the positive side, the yen retreated to an about 11-month low, boosting export-oriented stocks. In other news, a summary of the central bank’s policy meeting last month indicated that officials were showing signs of being more inclined toward considering policy revisions. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +2.61% to 18.88.
The Japanese Tankan Large Manufacturers Index stood at 9 in the third quarter, stronger than expectations of 6.
The Japanese Tankan Large Non-Manufacturers Index came in at 27 in the third quarter, stronger than expectations of 24.
The Japanese September Manufacturing PMI arrived at 48.5, weaker than expectations of 48.6.
Meanwhile, an official factory survey showed on Saturday that China’s factory activity expanded in September for the first time in six months, aligning with a series of indicators suggesting that the world’s second-largest economy has begun to stabilize. At the same time, a private-sector survey showed on Sunday that the country’s factory activity expanded at a slower pace in September, while services activity expanded at its slowest pace of the year in September.
The Chinese September Manufacturing PMI stood at 50.2, in line with expectations.
The Chinese September Non-Manufacturing PMI came in at 51.7, stronger than expectations of 51.5.
The Chinese September Caixin Manufacturing PMI was at 50.6, weaker than expectations of 51.2.
The Chinese September Caixin Services PMI arrived at 50.2, weaker than expectations of 52.0.
Pre-Market U.S. Stock Movers
NVIDIA Corporation (NVDA) climbed over +1% in pre-market trading after Goldman Sachs upgraded the stock to Conviction Buy from Buy.
Toast Inc (TOST) fell more than -1% in pre-market trading after Mizuho downgraded the stock to Neutral from Buy.
Li Auto Inc (LI) rose over +1% in pre-market trading after the company set a new monthly record with 36,060 vehicle deliveries in September.
Xpeng Inc (XPEV) gained about +1% in pre-market trading after announcing that its deliveries jumped by 12% m/m and 81% y/y to 15,310 units in September.
Insulet Corporation (PODD) soared over +3% in pre-market trading after Jefferies upgraded the stock to Buy from Hold.
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - October 2nd
Comtech (CMTL), Upexi (UPXI), Rite Aid (RAD).
More Stock Market News from Barchart
Crude Inventories, Jobs and Other Market Moving Items to Watch This Week
Apple Stock Is at 4-Month Lows and Looks Attractive to Value Investors
3 Stocks to Buy if You Believe Jeffrey Gundlach's Prediction of an Impending Recession
3 Reasons to Buy Meta Platforms Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.1% m/m and +3.9% y/y in August, compared to expectations of +0.2% m/m and +3.9% y/y. Meanwhile, Federal Reserve Chair Jerome Powell and Philadelphia Fed President Patrick Harker are scheduled to engage in a roundtable discussion with workers, small business owners, and community leaders later today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. U.S. S&P Global Manufacturing PMI will be reported today as well. In other news, a summary of the central bank’s policy meeting last month indicated that officials were showing signs of being more inclined toward considering policy revisions.
|
408c89a0-b49d-4900-966b-4cf56e6adbe3
|
718064.0
|
2023-10-02 00:00:00 UTC
|
US STOCKS-Wall St set to open lower as yields rise ahead of Powell speech
|
DDOG
|
https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-yields-rise-ahead-of-powell-speech
|
nan
|
nan
|
By Shubham Batra and Shashwat Chauhan
Oct 2 (Reuters) - Wall Street was set to open lower on Monday as the 10-year Treasury yield regained 2007 highs, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path.
Powell and Philadelphia Fed President Patrick Hasker will speak at a roundtable discussion, due 11 a.m. ET, with local employers and small business owners on efforts to grow the economy.
Later in the day, Cleveland Fed President Loretta Mester will speak on the outlook for the U.S. economy.
Yield on the 10-year Treasury note edged higher on Monday at 4.6371%, touching 16-year highs again, while the yield on the 2-year note, which best reflects interest rate expectations, remained above 5%. US/
"The Fed has said that their target is still 2% and they are still long ways away from getting inflation really going in the direction that they want," said Russell Hackmann, President of Hackmann Wealth Partners.
"More of a concern for market participants right now is the kind of dislocation in the markets as the treasury market is struggling (recently)."
U.S. stocks ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer amid a recent rally in crude prices fueling inflation concerns. O/R
A slew of economic data including U.S. manufacturing activity, job openings data leading to the crucial monthly jobs report at the end of the week is on investors' radar for more clues on the Fed's interest-rate path.
Traders' bets on the benchmark rate remained unchanged in November and December at nearly 74% and 55%, respectively, according to CME's FedWatch tool, while they have priced in a 25-basis-point rate cut as early as March.
The Congress on Saturday passed a stopgap funding bill with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party's hardliners for a partisan bill.
At 8:18 a.m. ET, Dow e-minis 1YMcv1 were down 85 points, or 0.25%, S&P 500 e-minis EScv1 were down 9.25 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 7.25 points, or 0.05%.
Crypto-linked stocks including Riot Platforms RIOT.O, Marathon Digital MARA.O and U.S.-listed shares of Hut 8 Mining HUT.TO were up between 5.2% and 7.7% in premarket trading after bitcoin BTC=BTSP hit near two-month highs.
Shares of CoinbaseCOIN.O climbed 5.2% after the cryptocurrency exchange got the Singapore payments licence from the city-state's central bank.
Cybersecurity firm Zscaler ZS.O jumped 2.7%, while cloud security platform Datadog DDOG.O advanced 2.3% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral".
Nvidia NVDA.O rose 1.2% on a report saying Goldman Sachs had upgraded the chipmaker's stock to "conviction buy".
Rivian Automotive RIVN.O advanced 2.9% after Evercore ISI raised the EV maker's stock to "outperform" from "in line".
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cybersecurity firm Zscaler ZS.O jumped 2.7%, while cloud security platform Datadog DDOG.O advanced 2.3% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street was set to open lower on Monday as the 10-year Treasury yield regained 2007 highs, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. U.S. stocks ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer amid a recent rally in crude prices fueling inflation concerns.
|
Cybersecurity firm Zscaler ZS.O jumped 2.7%, while cloud security platform Datadog DDOG.O advanced 2.3% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street was set to open lower on Monday as the 10-year Treasury yield regained 2007 highs, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. Yield on the 10-year Treasury note edged higher on Monday at 4.6371%, touching 16-year highs again, while the yield on the 2-year note, which best reflects interest rate expectations, remained above 5%.
|
Cybersecurity firm Zscaler ZS.O jumped 2.7%, while cloud security platform Datadog DDOG.O advanced 2.3% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street was set to open lower on Monday as the 10-year Treasury yield regained 2007 highs, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. U.S. stocks ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer amid a recent rally in crude prices fueling inflation concerns.
|
Cybersecurity firm Zscaler ZS.O jumped 2.7%, while cloud security platform Datadog DDOG.O advanced 2.3% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street was set to open lower on Monday as the 10-year Treasury yield regained 2007 highs, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. Powell and Philadelphia Fed President Patrick Hasker will speak at a roundtable discussion, due 11 a.m.
|
80752e4b-24b9-45d9-aabb-502c59753b34
|
718065.0
|
2023-10-02 00:00:00 UTC
|
US STOCKS-Futures mixed as investors await more data, comments from Fed officials
|
DDOG
|
https://www.nasdaq.com/articles/us-stocks-futures-mixed-as-investors-await-more-data-comments-from-fed-officials
|
nan
|
nan
|
By Shubham Batra and Shashwat Chauhan
Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook.
Powell and Philadelphia Fed President Patrick Hasker will speak at a roundtable discussion, due 11 a.m. ET, with local employers and small business owners on efforts to grow the economy.
Later in the day, Cleveland Fed President Loretta Mester will speak on the outlook for the U.S. economy.
All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns. O/R
A slew of economic data including U.S. manufacturing activity and the crucial monthly jobs reports at the end of the week is on investors' radar for more clues on the Fed's interest-rate path.
"Last week's inflation data suggested that while the Fed has made considerable progress against untoward levels of inflation, it still has more work to do before it can declare an end to the current rate hike cycle or even initiate an extended pause," John Stoltzfus, CIO at Oppenheimer Asset Management wrote in a note.
Traders' bets on the benchmark rate remaining unchanged in November and December stood at nearly 74% and 55%, respectively, according to CME's FedWatch tool, while a 25-basis-point rate cut is being priced in as early as March.
Meanwhile, the Congress on Saturday passed a stopgap funding bill with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party's hardliners for a partisan bill.
Yields on the 10-year Treasury note edged higher on Monday, with the 2-year note, which best reflects interest rate expectations, still above 5%. US/
At 6:59 a.m. ET, Dow e-minis 1YMcv1 were down 12 points, or 0.04%, S&P 500 e-minis EScv1 were up 0.5 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were up 25 points, or 0.17%.
Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading.
Crypto-linked stocks including Riot Platforms RIOT.O, Marathon Digital MARA.O and U.S.-listed shares of Hut 8 Mining HUT.TO were up between 7.4% and 8.7% after bitcoin BTC=BTSP hit near two-month highs.
Shares of CoinbaseCOIN.O climbed 5.4% after the cryptocurrency exchange got the Singapore payments licence from the city-state's central bank.
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral".
Nvidia NVDA.O rose 1.2% on a report saying Goldman Sachs had upgraded the chipmaker's stock to "conviction buy".
Rivian Automotive RIVN.O advanced 4.2% after Evercore ISI raised the EV maker's stock to "outperform" from "in line".
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
|
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
|
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
|
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral". By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
|
ebee7ab1-5ac7-4abe-8680-b639b0652b17
|
718066.0
|
2023-10-02 00:00:00 UTC
|
Markets Today: Stocks Slip as Bond Yields Resume Their Climb
|
DDOG
|
https://www.nasdaq.com/articles/markets-today%3A-stocks-slip-as-bond-yields-resume-their-climb
|
nan
|
nan
|
Morning Markets
December E-Mini S&P 500 futures (ESZ23) are down -0.20%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are down -0.05%.
Stock index futures this morning gave up overnight gains and turned lower as rising bond yields weighed on stocks. Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures. The markets are awaiting the U.S. Sep ISM manufacturing report and a speech from Fed Chair Powell later this morning for market direction.
Adding to positive sentiment is better-than-expected Chinese economic news that is supportive of global growth after China Sep manufacturing and Sep non-manufacturing activity expanded more than expected.
Goldman Sachs today said mega-cap U.S. tech stocks are likely to do well during the Q3 earnings season after a recent selloff led to lower valuations and "The divergence between falling valuations and improving fundamentals represents an opportunity for investors."
The markets are discounting a 33% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 50% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields today are moving higher. The 10-year T-note yield is up +6.0 bp at 4.631%. The 10-year German bund yield is up +2.8 bp at 2.867%. The 10-year UK gilt yield is up +4.6 bp at 4.484%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.39%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -0.31%.
The Euro Stoxx 50 today gave up an early advance and turned lower as higher bond yields weighed on the overall market. European government bond yields rose on hawkish comments from ECB Vice President Guindos, who said talk of rate cuts by the ECB are premature. Also, weakness in pharmaceutical stocks was putting pressure on the overall market. European stocks initially opened higher today as sectors exposed to China, such as luxury goods makers and miners, rose on signs of improvement in China’s economy after Chinese manufacturing activity in September expanded by the most in 6 months.
The Eurozone Aug unemployment rate fell -0.1 to match the record low of 6.4%, right on expectations.
ECB Vice President Guindos said interest rates at their current levels would help bring down inflation to the ECB's 2% target, and talk of rate cuts by the ECB are premature.
China’s Shanghai Composite Stock Index today was closed for the weeklong Golden Week holidays.
The China Sep manufacturing PMI rose +0.5 to 50.2, stronger than expectations of 50.1 and the fastest pace of expansion in 6 months. Also, the Sep non-manufacturing PMI rose +0.7 to 51.7, stronger than expectations of 51.6.
Japan’s Nikkei Stock Index today gave up early gains and closed moderately lower. Sings of weakness in Japanese manufacturing activity weighed on stocks after the Japan Sep Jibun Bank manufacturing PMI was revised downward to its steepest pace of contraction in 7 months. Also, soaring government bond yields undercut stocks after the 10-year JGB bond yield jumped to a 10-year high of 0.783%. Japanese stocks today initially opened higher on signs of economic optimism after the Q3 Tankan large manufacturing business conditions rose more than expected. Also, positive carryover for a rally in U.S. stock index futures initially pushed Japanese stocks higher after U.S. lawmakers reached a deal late Saturday night to avoid a government shutdown.
The yen dropped to an 11-1/4 month low against the dollar today after the Bank of Japan (BOJ) announced an extra bond-buying plan of five- to 10-year bonds for this week in an attempt to curb the rise in long-term government bond yields. The BOJ said it will announce the amounts of its five- to 10-year bond buys when it begins the operations.
The Japan Q3 Tankan large manufacturing business conditions rose +4 to 9, stronger than expectations of 6.
The Japan Sep Jibun Bank manufacturing PMI was revised downward by -0.1 to 48.5 from the initially reported 48.6, the steepest pace of contraction in 7 months.
Pre-Market U.S. Stock Movers
Discover Financial Services (DFS) climbed more than +3% in pre-market trading after agreeing to improve its consumer compliance management system and enhance related corporate governance and enterprise risk management practices as part of a consent order issued by the FDIC.
Tesla (TSLA) gained nearly +1% in pre-market trading after releasing an updated version of the Model Y in China, with improved configurations and the same starting price.
Datadog (DDOG) jumped more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral with a price target of $115.
Rivian Automotive (RIVN) rallied more than +3% in pre-market trading after Evercore ISI upgraded the stock to outperform from in line with a price target of $35.
FedEx (FDX) rose almost +1% in pre-market trading after Susquehanna Financial upgraded the stock to positive from neutral with a price target of $315.
Xylem (XYL) gained nearly +1% in pre-market trading after Melius Research upgraded the stock to buy from hold with a price target of $122.
Macerich (MAC) climbed more than +4% in pre-market trading after Piper Sandler upgraded the stock to neutral from underweight.
U.S. Steel (X) gained more than +1% in pre-market trading after Morgan Stanley upgraded the stock to overweight from neutral with a price target of $40.
Cryptocurrency-exposed stocks are moving higher in pre-market trading, with the price of Bitcoin up more than +5% at a 1-1/2 month high. As a result, Coinbase Global (COIN), Marathon Digital (MARA), Microstrategy (MSTR), and Riot Platforms (RIOT) are up more than +5%.
United Parcel Service (UPS) slid almost -1% in pre-market trading after Susquehanna Financial cut its price target on the stock to $160 from $173.
Fidelity National Financial (FNF) dropped more than -3% in pre-market trading after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform
Chubb Ltd (CB) fell more than -1% in pre-market trading after JPMorgan Chase downgraded the stock to neutral from overweight.
Toast (TOST) slid more than -1% in pre-market trading after Mizuho Securities downgraded the stock to neutral from buy.
Earnings Reports (10/2/2023)
Veradigm Inc (MDRX).
More Stock Market News from Barchart
This Option Trade on Adobe Stock Has a Profit Zone Between $480 and $540
Stocks Set to Open Lower as Investors Await U.S. Jobs Data and Powell’s Comments, U.S. Avoids Shutdown
Crude Inventories, Jobs and Other Market Moving Items to Watch This Week
Apple Stock Is at 4-Month Lows and Looks Attractive to Value Investors
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) jumped more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral with a price target of $115. Japanese stocks today initially opened higher on signs of economic optimism after the Q3 Tankan large manufacturing business conditions rose more than expected. The Japan Sep Jibun Bank manufacturing PMI was revised downward by -0.1 to 48.5 from the initially reported 48.6, the steepest pace of contraction in 7 months.
|
Datadog (DDOG) jumped more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral with a price target of $115. Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures. Sings of weakness in Japanese manufacturing activity weighed on stocks after the Japan Sep Jibun Bank manufacturing PMI was revised downward to its steepest pace of contraction in 7 months.
|
Datadog (DDOG) jumped more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral with a price target of $115. Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures. Fidelity National Financial (FNF) dropped more than -3% in pre-market trading after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform Chubb Ltd (CB) fell more than -1% in pre-market trading after JPMorgan Chase downgraded the stock to neutral from overweight.
|
Datadog (DDOG) jumped more than +3% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral with a price target of $115. The markets are awaiting the U.S. Sep ISM manufacturing report and a speech from Fed Chair Powell later this morning for market direction. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
|
5bfb2cef-f932-4710-ae1d-08a194233bd4
|
718067.0
|
2023-10-02 00:00:00 UTC
|
Stocks Set to Open Mixed as Investors Await U.S. Jobs Data and Powell’s Comments, U.S. Avoids Shutdown
|
DDOG
|
https://www.nasdaq.com/articles/stocks-set-to-open-mixed-as-investors-await-u.s.-jobs-data-and-powells-comments-u.s.
|
nan
|
nan
|
December S&P 500 futures (ESZ23) are down -0.05%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.20% this morning as market participants looked ahead to comments from Fed Chair Jerome Powell and other Fed officials later today, while also bracing for more data on the U.S. labor market after a U.S. government shutdown was averted over the weekend.
The U.S. Congress passed a stopgap funding bill late on Saturday, sending the legislation to President Joe Biden, who signed it into law before the midnight deadline. The bill sustains government funding at 2023 levels until November 17th and does not include aid for Ukraine but increases federal disaster assistance by $16 billion.
In Friday’s trading session, Wall Street’s major averages closed mixed. Carnival Corporation (CCL) plunged about -5% and was the top percentage loser on the benchmark S&P 500 after the cruise line operator provided weaker-than-expected Q4 adjusted EBITDA guidance. Also, energy stocks retreated amid weakness in crude oil prices, with Schlumberger NV (SLB) falling more than -4% and Marathon Oil Corporation (MRO) dropping over -2%. On the bullish side, Nike Inc (NKE) soared more than +6% after the sports footwear and apparel giant topped Wall Street estimates for Q1 profit. In addition, Walgreens Boots Alliance Inc (WBA) climbed over +6% after Bloomberg reported that the company is contemplating the appointment of Tim Wentworth, the former leader of Cigna, as its next CEO.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.1% m/m and +3.9% y/y in August, compared to expectations of +0.2% m/m and +3.9% y/y. Also, the U.S. September Chicago PMI came in at 44.1, weaker than expectations of 47.6. In addition, the University of Michigan’s reading of consumer sentiment in September was revised upward to 68.1 from 67.7.
New York Fed President John Williams stated Friday that the Fed is at or near a peak on interest rates and is anticipated to hold around these levels for some time. “I expect we will need to maintain a restrictive stance of monetary policy for some time to fully restore balance to demand and supply and bring inflation back to our 2% longer-run goal,” Williams said.
U.S. rate futures have priced in a 28.9% chance of a 25 basis point rate hike at the conclusion of the Fed’s November meeting and a 37.6% probability of a 25 basis point rate increase at the December meeting.
The highlight of the upcoming week will be the U.S. Nonfarm Payrolls report for September. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate.
In addition, several Fed officials will be making appearances this week, including Williams, Mester, Bostic, Bowman, Goolsbee, Barkin, Daly, and Waller.
Meanwhile, Federal Reserve Chair Jerome Powell and Philadelphia Fed President Patrick Harker are scheduled to engage in a roundtable discussion with workers, small business owners, and community leaders later today.
Today, all eyes are focused on the U.S. ISM Manufacturing PMI in a couple of hours. Economists, on average, forecast that September ISM Manufacturing PMI will stand at 47.7, compared to the previous value of 47.6.
Also, investors will likely focus on U.S. ISM Manufacturing Prices data, which came in at 48.4 in August. Economists foresee the September figure to be 48.6.
U.S. S&P Global Manufacturing PMI will be reported today as well. Economists foresee this figure to stand at 48.9 in September, compared to 47.9 in August.
In the bond markets, United States 10-year rates are at 4.626%, up +1.10%.
The Euro Stoxx 50 futures are down -0.29% this morning as investors digested regional manufacturing data while also awaiting remarks from Fed Chair Jerome Powell to gain insight into the central bank’s interest rate trajectory. Losses in healthcare stocks are leading the overall market lower. A survey showed on Monday that manufacturing activity in the Eurozone continued to be stuck in a severe and broad-based downturn last month. In corporate news, Vivendi Se (VIV.FP) rose over +2% after Barclays upgraded the French media company to Overweight from Equal Weight.
Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
The Spanish September Manufacturing PMI has been reported at 47.7, stronger than expectations of 46.5.
The Italian September Manufacturing PMI came in at 46.8, stronger than expectations of 45.7.
The French September Manufacturing PMI stood at 44.2, stronger than expectations of 43.6.
The German September Manufacturing PMI arrived at 39.6, weaker than expectations of 39.8.
Eurozone September Manufacturing PMI came in at 43.4, in line with expectations.
Eurozone August Unemployment Rate was at 6.4%, in line with expectations.
U.K. September Manufacturing PMI stood at 44.3, stronger than expectations of 44.2.
Japan’s Nikkei 225 Stock Index (NIK) closed down -0.31%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index gave up early gains and closed lower, weighed by weakness in energy and healthcare stocks. The Bank of Japan’s Tankan survey showed Monday that confidence among Japan’s large manufacturers picked up more than expected, while sentiment among non-manufacturers surged to the highest level in 32 years in the three months to September. Separately, a survey showed on Monday that Japan’s factory activity fell at the fastest pace in seven months in September. Meanwhile, Japanese government bond yields climbed to decade highs on Monday, leading the country’s central bank to announce additional bond-buying operations. On the positive side, the yen retreated to an about 11-month low, boosting export-oriented stocks. In other news, a summary of the central bank’s policy meeting last month indicated that officials were showing signs of being more inclined toward considering policy revisions. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +2.61% to 18.88.
The Japanese Tankan Large Manufacturers Index stood at 9 in the third quarter, stronger than expectations of 6.
The Japanese Tankan Large Non-Manufacturers Index came in at 27 in the third quarter, stronger than expectations of 24.
The Japanese September Manufacturing PMI arrived at 48.5, weaker than expectations of 48.6.
Meanwhile, an official factory survey showed on Saturday that China’s factory activity expanded in September for the first time in six months, aligning with a series of indicators suggesting that the world’s second-largest economy has begun to stabilize. At the same time, a private-sector survey showed on Sunday that the country’s factory activity expanded at a slower pace in September, while services activity expanded at its slowest pace of the year in September.
The Chinese September Manufacturing PMI stood at 50.2, in line with expectations.
The Chinese September Non-Manufacturing PMI came in at 51.7, stronger than expectations of 51.5.
The Chinese September Caixin Manufacturing PMI was at 50.6, weaker than expectations of 51.2.
The Chinese September Caixin Services PMI arrived at 50.2, weaker than expectations of 52.0.
Pre-Market U.S. Stock Movers
NVIDIA Corporation (NVDA) climbed over +1% in pre-market trading after Goldman Sachs upgraded the stock to Conviction Buy from Buy.
Toast Inc (TOST) fell more than -1% in pre-market trading after Mizuho downgraded the stock to Neutral from Buy.
Li Auto Inc (LI) rose over +1% in pre-market trading after the company set a new monthly record with 36,060 vehicle deliveries in September.
Xpeng Inc (XPEV) gained about +1% in pre-market trading after announcing that its deliveries jumped by 12% m/m and 81% y/y to 15,310 units in September.
Insulet Corporation (PODD) soared over +3% in pre-market trading after Jefferies upgraded the stock to Buy from Hold.
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - October 2nd
Comtech (CMTL), Upexi (UPXI), Rite Aid (RAD).
More Stock Market News from Barchart
Crude Inventories, Jobs and Other Market Moving Items to Watch This Week
Apple Stock Is at 4-Month Lows and Looks Attractive to Value Investors
3 Stocks to Buy if You Believe Jeffrey Gundlach's Prediction of an Impending Recession
3 Reasons to Buy Meta Platforms Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index, a key inflation gauge monitored by the Federal Reserve, stood at +0.1% m/m and +3.9% y/y in August, compared to expectations of +0.2% m/m and +3.9% y/y. Meanwhile, Federal Reserve Chair Jerome Powell and Philadelphia Fed President Patrick Harker are scheduled to engage in a roundtable discussion with workers, small business owners, and community leaders later today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. Also, investors will be monitoring a spate of economic data, including the U.S. JOLTs Job Openings, ADP Nonfarm Employment Change, S&P Global Composite PMI, S&P Global Services PMI, Factory Orders, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, Exports, Imports, Initial Jobless Claims, Trade Balance, Average Hourly Earnings, Private Nonfarm Payrolls, and Unemployment Rate. Spain’s Manufacturing PMI, Italy’s Manufacturing PMI, France’s Manufacturing PMI, Germany’s Manufacturing PMI, Eurozone’s Manufacturing PMI, Eurozone’s Unemployment Rate, and U.K.’s Manufacturing PMI were released today.
|
Datadog Inc (DDOG) rose more than +3% in pre-market trading after Piper Sandler upgraded the stock to Overweight from Neutral. U.S. S&P Global Manufacturing PMI will be reported today as well. In other news, a summary of the central bank’s policy meeting last month indicated that officials were showing signs of being more inclined toward considering policy revisions.
|
a4a3d0c8-26a0-4262-9c7c-a89af5c0fa0a
|
718068.0
|
2023-09-30 00:00:00 UTC
|
3 Stocks That Could Soar in the Near Future
|
DDOG
|
https://www.nasdaq.com/articles/3-stocks-that-could-soar-in-the-near-future
|
nan
|
nan
|
Savvy investments in the right stocks can help to grow your wealth significantly. By parking your money in growth stocks with solid potential, you could see your money snowball into a much larger sum, perhaps in just a few years.
To have the potential for quick growth, a company needs to have several attractive characteristics, such as a growing client base, sustainable catalysts, and strong revenue growth. A solid brand that's gaining traction and recognition is also a plus.
With those things in mind, here are three stocks that have big-time near-term potential.
Image source: Getty Images.
MercadoLibre
MercadoLibre (NASDAQ: MELI) is Latin America's largest e-commerce retailer. The business also provides payment services, loans, and logistics services to its customers. MercadoLibre has demonstrated robust growth over the years and possesses good potential for growing its business by expanding its breadth of services and making them stickier.
Total revenue jumped from $4 billion in 2020 to $10.5 billion in 2022, with the company going from a small net loss to a net profit of $482 million over the same period.MercadoLibre also proved its ability to generate positive free cash flow for all three years.
The company's momentum has carried on in the first half of 2023. Revenue jumped 33% year over year (YOY) to $6.5 billion, while operating income surged 131% YOY to $898 million. The business set a quarterly operating income record for its second quarter at $558 million, more than double the $250 million in the prior-year quarter.
Net income for the first half soared 146% to $463 million. MercadoLibre generated positive free cash flow of $2.1 billion, more than quadruple the $438 million that was generated the year before.
Operating metrics also looked impressive. Unique active users went from 107 million to 135 million, while gross merchandise volume (the dollar value of transactions excluding classifieds) climbed 23% to $20 billion. MercadoLibre's platform supported 4 million payment transactions, a sharp leap from the 2.4 million logged a year ago, with the total payment volume jumping 42.4% YOY to $79 billion. The business continued to enjoy fast profit growth in its key countries of Brazil and Mexico, with increasing fulfillment penetration and healthy traction in its credit portfolio.
With its dominant position and ongoing expansion strategy, MercadoLibre looks set to report better results in the years ahead.
Datadog
Datadog (NASDAQ: DDOG) helps its cloud clients monitor and secure their applications and infrastructure through its platform. This accumulated data is used to gain insights for clients about their customers and to help avoid downtime. The company has experienced explosive top-line growth over the past several years, with revenue jumping from $603 million in 2020 to $1.7 billion in 2022. Despite sustaining losses, the business generated an average positive free cash flow of $229 million from 2020 to 2022.
The first half of 2023 has seen Datadog continue to grow its top line and improve its free cash flow generation. Revenue climbed by 29% to $991 million, while free cash inflow jumped by 36% YOY to $258 million for a free cash flow margin of 26%. Total customers have continued to grow, starting with just 5,400 in 2017 and ending at around 26,100 for Q2 2023. Crucially, the company's customers providing more than $1 million in annual recurring revenue (ARR) have multiplied more than 28-fold from just 11 to 317, demonstrating that customers are not just growing but also spending more on its platform.
Another sign that customers are liking Datadog's offerings comes from the proportion of customers using six or more of the company's products, which has risen from just 6% two years ago to 21%. The company estimates that its current total addressable market stands at $45 billion and is poised to grow to $62 billion by 2026.
Cloud spending hit $400 billion in 2021 and constitutes around 9% of total information technology (IT) spending. By 2026, cloud spending is projected to more than double to $1 billion and comprise nearly 17% of all IT spending. These catalysts will act as strong tailwinds for Datadog and allow it to continue growing its business.
Asana
Asana (NYSE: ASAN) helps organizations manage and organize their workflow, improve productivity, and collaborate more effectively. The company has enjoyed steady growth over the past few years as more customers sign on seeking to improve their workflows and processes.
Revenue leapt from $227 million in fiscal 2021 (ending Jan. 31) to $547 million in fiscal 2023. For the first half of fiscal 2024, revenue continued climbing, improving by 23% YOY to $315 million.
On the customer front, the number of customers spending more than $5,000 jumped 15% YOY to 20,782, while those spending more than $100,000 climbed 20% YOY to 553. Asana runs a subscription-based business model with robust gross margins exceeding 90%, and uses its land-and-expand strategy to increase the use cases among its existing clientele.
The latest quarter also saw Asana sign up some of the largest companies in the world in the financial services, healthcare, retail, media, and manufacturing sectors. Asana has also incorporated artificial intelligence into its Asana Intelligence software to help organizations work better. The company is slated to hold its Investor Day on Oct. 3, where it will unveil more details of its growth strategies and how it will chart its path in the years ahead. I think there's a lot of opportunity for the company and am excited to see how it continues to thrive.
10 stocks we like better than MercadoLibre
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and MercadoLibre wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 18, 2023
Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Asana, Datadog, and MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Datadog (NASDAQ: DDOG) helps its cloud clients monitor and secure their applications and infrastructure through its platform. MercadoLibre has demonstrated robust growth over the years and possesses good potential for growing its business by expanding its breadth of services and making them stickier. The business continued to enjoy fast profit growth in its key countries of Brazil and Mexico, with increasing fulfillment penetration and healthy traction in its credit portfolio.
|
Datadog Datadog (NASDAQ: DDOG) helps its cloud clients monitor and secure their applications and infrastructure through its platform. Revenue jumped 33% year over year (YOY) to $6.5 billion, while operating income surged 131% YOY to $898 million. Despite sustaining losses, the business generated an average positive free cash flow of $229 million from 2020 to 2022.
|
Datadog Datadog (NASDAQ: DDOG) helps its cloud clients monitor and secure their applications and infrastructure through its platform. Total revenue jumped from $4 billion in 2020 to $10.5 billion in 2022, with the company going from a small net loss to a net profit of $482 million over the same period.MercadoLibre also proved its ability to generate positive free cash flow for all three years. Revenue jumped 33% year over year (YOY) to $6.5 billion, while operating income surged 131% YOY to $898 million.
|
Datadog Datadog (NASDAQ: DDOG) helps its cloud clients monitor and secure their applications and infrastructure through its platform. Revenue jumped 33% year over year (YOY) to $6.5 billion, while operating income surged 131% YOY to $898 million. For the first half of fiscal 2024, revenue continued climbing, improving by 23% YOY to $315 million.
|
4e712d1c-caf2-41d7-8192-299174b807bc
|
718069.0
|
2023-09-28 00:00:00 UTC
|
3 Big Data Stocks to Prosper in the ‘Intelligence Economy’
|
DDOG
|
https://www.nasdaq.com/articles/3-big-data-stocks-to-prosper-in-the-intelligence-economy
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the burgeoning intelligence economy, data stands as the linchpin of innovation. By 2025, six billion consumers are expected to tap into data every 18 seconds, bolstered by IoT devices producing a staggering 79 zettabytes (ZB).
Looking back at 2020, the International Data Corporation highlighted a massive 59ZB of data creation and capture, and with the rise of 5G and IoT, projections indicate this could surge to 200ZB by FY2025.
Furthermore, pioneers in today’s industry demonstrate data’s transformative prowess. For instance, Netflix (NASDAQ:NFLX) capitalizes on its vast data pool to innovate in entertainment. And Uber (NYSE:UBER) strategically utilizes insights, driving profound shifts in transportation dynamics.
Consequently, this paints a golden tableau for savvy investors. It’s not just the sheer volume but the inherent value of data that matters. Firms expertly navigating this data terrain are not only reshaping industries but also redefining investment horizons.
Splunk (SPLK)
Source: Michael Vi / Shutterstock.com
Diving deep into the intelligence economy, big data is the pulsating heart, and Splunk (NASDAQ:SPLK) stands out as its maestro.
This data analytics powerhouse, harnessing machine learning, offers tools such as Splunk Enterprise and Splunk Cloud, which empower users to collect, dissect seamlessly, and harness data.
Moreover, Splunk’s recent history paints a portrait of success. A snapshot from Q2 of 2024 reveals a robust revenue spike of $911 million, marking an impressive 14% year-over-year (YOY) growth. Simultaneously, their annual recurring revenue (ARR) flourished, reaching $3.86 billion. These figures aren’t merely numbers. They’re a testament to Splunk’s rising prominence across different industries and geographies.
Furthermore, with a tantalizing $100 billion addressable market in security and observability, Splunk’s growth potential is vast. A recent free cash flow of $805 million further propels them, fueling innovation.
In the big data saga, Splunk appears not just as a character but as a compelling protagonist.
MongoDB (MDB)
Source: Michael Vi / Shutterstock.com
Steering away from the well-trodden paths of traditional SQL and Oracle databases, MongoDB (NASDAQ:MDB) champions the NoSQL architecture. While it has legacy databases in its arsenal, the cloud-based Atlas database takes the spotlight. It resonates with Gartner’s endorsement as a leader in cloud database management systems.
Moreover, synchronized with the AI surge, MongoDB taps into the growing demand. AI’s expansion calls for enhanced storage, memory, and databases. MongoDB, with its agile document-based structure, is tailor-made for this AI era, offering unparalleled scaling. Additionally, its recent earnings spotlight a 40% YOY spike in subscription revenue, hitting $409.3 million, with Atlas registering massive growth numbers.
As we gaze ahead, MongoDB’s trajectory seems poised for distinction. A slew of innovative features, including Atlas Stream Processing, promise to further its edge. Coupled with strong customer growth, adding 1900 in the last quarter, MongoDB is not just a participant in the big data era but a formidable contender.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
In the expansive realm of big data stocks, Datadog (NASDAQ:DDOG) emerges as a formidable cloud monitoring maestro.
It boasts an impressive clientele of over 26,000, with luminaries like Tesla (NASDAQ:TSLA) and Microsoft (NASDAQ:MSFT) in the fold. Datadog’s stock trajectory did hit a bump, tumbling by a stark 58% in 2022. Yet, Datadog’s stock is rebounding, currently up 21% year-to-date. Additionally, it showcased a robust 25.4% revenue boost in Q2 2023, clocking in at $509.4 million and outpacing estimates with earnings per share at 36 cents.
Further, with an eye on soaring cloud adoption, they’re targeting an addressable market of $62 billion by 2026. And cloud monitoring expenditures are predicted to spike 24% annually through 2030.
Finally, fresh launches in AI, security, and automation are enhancing Datadog’s repertoire. With over 30% of clients already onboard with products introduced post-2021 and a promising profitability curve, DDOG is undeniably a stock to watch in the intelligence economy.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Big Data Stocks to Prosper in the ‘Intelligence Economy’ appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com In the expansive realm of big data stocks, Datadog (NASDAQ:DDOG) emerges as a formidable cloud monitoring maestro. With over 30% of clients already onboard with products introduced post-2021 and a promising profitability curve, DDOG is undeniably a stock to watch in the intelligence economy. By 2025, six billion consumers are expected to tap into data every 18 seconds, bolstered by IoT devices producing a staggering 79 zettabytes (ZB).
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com In the expansive realm of big data stocks, Datadog (NASDAQ:DDOG) emerges as a formidable cloud monitoring maestro. With over 30% of clients already onboard with products introduced post-2021 and a promising profitability curve, DDOG is undeniably a stock to watch in the intelligence economy. Splunk (SPLK) Source: Michael Vi / Shutterstock.com Diving deep into the intelligence economy, big data is the pulsating heart, and Splunk (NASDAQ:SPLK) stands out as its maestro.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com In the expansive realm of big data stocks, Datadog (NASDAQ:DDOG) emerges as a formidable cloud monitoring maestro. With over 30% of clients already onboard with products introduced post-2021 and a promising profitability curve, DDOG is undeniably a stock to watch in the intelligence economy. Splunk (SPLK) Source: Michael Vi / Shutterstock.com Diving deep into the intelligence economy, big data is the pulsating heart, and Splunk (NASDAQ:SPLK) stands out as its maestro.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com In the expansive realm of big data stocks, Datadog (NASDAQ:DDOG) emerges as a formidable cloud monitoring maestro. With over 30% of clients already onboard with products introduced post-2021 and a promising profitability curve, DDOG is undeniably a stock to watch in the intelligence economy. Splunk (SPLK) Source: Michael Vi / Shutterstock.com Diving deep into the intelligence economy, big data is the pulsating heart, and Splunk (NASDAQ:SPLK) stands out as its maestro.
|
77b88bd3-af80-4155-b2bc-0ec9a7962b67
|
718070.0
|
2023-09-28 00:00:00 UTC
|
Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-outpaces-stock-market-gains%3A-what-you-should-know-6
|
nan
|
nan
|
Datadog (DDOG) closed at $88.96 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 6.72% over the past month, lagging the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.34, up 47.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $523.3 million, up 19.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.32 per share and revenue of $2.06 billion, which would represent changes of +34.69% and +22.75%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 66.72. Its industry sports an average Forward P/E of 36.56, so we one might conclude that Datadog is trading at a premium comparatively.
It is also worth noting that DDOG currently has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) closed at $88.96 in the latest trading session, marking a +1.29% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 2.63. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) closed at $88.96 in the latest trading session, marking a +1.29% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 2.63.
|
Datadog (DDOG) closed at $88.96 in the latest trading session, marking a +1.29% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 2.63. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Datadog (DDOG) closed at $88.96 in the latest trading session, marking a +1.29% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 2.63. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
217293d6-cf0f-4a2f-b9a2-f2357dd56734
|
718071.0
|
2023-09-26 00:00:00 UTC
|
ANALYSIS-Cisco's $28 billion Splunk deal may ignite software deal frenzy
|
DDOG
|
https://www.nasdaq.com/articles/analysis-ciscos-%2428-billion-splunk-deal-may-ignite-software-deal-frenzy
|
nan
|
nan
|
By Milana Vinn
NEW YORK, Sept 26 (Reuters) - Cisco Systems' CSCO.O $28 billion deal for Splunk SPLK.O is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say.
Splunk, a cybersecurity and data analytics firm, was in the process of shifting its business model from licensing its software to charging for subscriptions when it announced an agreement last week to sell itself to Cisco, making it the third-largest software acquisition of all time.
Cisco CEO Chuck Robbins, who has been expanding his company's services offerings to compensate for its moribund telecommunications equipment business, told analysts that the $4 billion in annual recurring revenue that Splunk would bring from its subscriptions was a key driver behind the deal.
This underscores how Splunk's subscription revenue-focused peers, such as Elastic NV 3E1.F, Datadog DDOG.O, Crowdstrike Holdings CRWD.O and Dynatrace DT.N, are potential acquisition targets for technology conglomerates such as Microsoft MSFT.O, Adobe ADBE.O and Oracle ORCL.N, which are grappling with corporate customers seeking to cut spending, the bankers and analysts said.
Microsoft, Adobe and Oracle did not immediately respond to requests for comment.
The improving outlook for software mergers and acquisitions is a welcome boost for dealmakers, which have seen activity in the technology sector drop 61% year-to-date in the first 8 months of 2023 to $231.5 billion, according to LSEG data.
Dealmaking in the software sector has been dominated by private equity firms over the past year facing little competition from technology giants. New Relic NEWR.N, a Splunk competitor, agreed in July to be sold to private equity firms Francisco Partners and TPG Inc TPG.O for $6.5 billion.
David Chen, co-head of global technology investment banking at Morgan Stanley MS.N, predicts that a rally in the Nasdaq 100 index this year and market fears of an economic recession receding will embolden technology companies to follow Cisco's example and spend on big acquisitions.
"I think the buyers' outlook on their own business has really improved from four months ago, and that gives confidence to pull the trigger on transformational transactions," Chen said in an interview.
Jefferies analysts wrote in a note the Federal Reserve putting the brakes on interest rate hikes has given acquirers more certainty around their funding costs, helping dealmaking.
Even before Cisco's deal, there were some signs that technology giants had started to eye acquisitions of software firms this year, albeit at a smaller scale. IBM IBM.N, for example, agreed in June to buy technology spend-management platform Apptio for $4.6 billion.
ATTRACTIVE VALUATIONS
Splunk's stock performance made it receptive to a takeover. While its shares had risen 39% in 2023 prior to the deal's announcement, they were still down 44% from their October 2020 high, when the COVID-19 pandemic forced companies to spend more on information technology because most of their employees were working from home. Many of Splunk's peers have had similar stock performance.
Software stocks are cheap by historical standards, making them attractive acquisition targets. The average software stock trades at 5.8 times projected 12-month revenue, 28% below its 8-year historical average when excluding the impact of COVID-19, which temporarily buoyed valuations in the sector, according to the Jefferies analysts.
Cisco's deal valued Splunk at 7 times projected 12-month revenue, according to Jefferies. They and other analysts said the price Cisco was paying was reasonable.
"We note that the typical security company with 20% growth trades at about 7 times (sales)," BTIG analysts wrote in a note last week.
Private software companies may also be more receptive to takeovers. Keith Skirbe, managing director in Houlihan Lokey'sHLI.N technology investment banking group, said that some companies that raised money at high valuations during the 2021 fundraising cycle prefer to be sold rather than be forced to raise money from their investors again at a lower valuation.
"A tidal wave of software M&A (is) on the horizon," Wedbush analysts wrote in a note last week.
Software M&A pace likely to rebound after Cisco-Splunk deal https://tmsnrt.rs/3PQHslR
(Reporting by Milana Vinn in New York Editing by Anirban Sen and Anna Driver)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This underscores how Splunk's subscription revenue-focused peers, such as Elastic NV 3E1.F, Datadog DDOG.O, Crowdstrike Holdings CRWD.O and Dynatrace DT.N, are potential acquisition targets for technology conglomerates such as Microsoft MSFT.O, Adobe ADBE.O and Oracle ORCL.N, which are grappling with corporate customers seeking to cut spending, the bankers and analysts said. By Milana Vinn NEW YORK, Sept 26 (Reuters) - Cisco Systems' CSCO.O $28 billion deal for Splunk SPLK.O is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say. Cisco CEO Chuck Robbins, who has been expanding his company's services offerings to compensate for its moribund telecommunications equipment business, told analysts that the $4 billion in annual recurring revenue that Splunk would bring from its subscriptions was a key driver behind the deal.
|
This underscores how Splunk's subscription revenue-focused peers, such as Elastic NV 3E1.F, Datadog DDOG.O, Crowdstrike Holdings CRWD.O and Dynatrace DT.N, are potential acquisition targets for technology conglomerates such as Microsoft MSFT.O, Adobe ADBE.O and Oracle ORCL.N, which are grappling with corporate customers seeking to cut spending, the bankers and analysts said. By Milana Vinn NEW YORK, Sept 26 (Reuters) - Cisco Systems' CSCO.O $28 billion deal for Splunk SPLK.O is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say. The average software stock trades at 5.8 times projected 12-month revenue, 28% below its 8-year historical average when excluding the impact of COVID-19, which temporarily buoyed valuations in the sector, according to the Jefferies analysts.
|
This underscores how Splunk's subscription revenue-focused peers, such as Elastic NV 3E1.F, Datadog DDOG.O, Crowdstrike Holdings CRWD.O and Dynatrace DT.N, are potential acquisition targets for technology conglomerates such as Microsoft MSFT.O, Adobe ADBE.O and Oracle ORCL.N, which are grappling with corporate customers seeking to cut spending, the bankers and analysts said. By Milana Vinn NEW YORK, Sept 26 (Reuters) - Cisco Systems' CSCO.O $28 billion deal for Splunk SPLK.O is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say. Splunk, a cybersecurity and data analytics firm, was in the process of shifting its business model from licensing its software to charging for subscriptions when it announced an agreement last week to sell itself to Cisco, making it the third-largest software acquisition of all time.
|
This underscores how Splunk's subscription revenue-focused peers, such as Elastic NV 3E1.F, Datadog DDOG.O, Crowdstrike Holdings CRWD.O and Dynatrace DT.N, are potential acquisition targets for technology conglomerates such as Microsoft MSFT.O, Adobe ADBE.O and Oracle ORCL.N, which are grappling with corporate customers seeking to cut spending, the bankers and analysts said. By Milana Vinn NEW YORK, Sept 26 (Reuters) - Cisco Systems' CSCO.O $28 billion deal for Splunk SPLK.O is likely to prompt other technology giants to splash out on similar acquisitions of software vendors with predictable subscription revenue, investment bankers and analysts say. Dealmaking in the software sector has been dominated by private equity firms over the past year facing little competition from technology giants.
|
0a68eb85-c514-47b2-9a63-4ea0e9c2513b
|
718072.0
|
2023-09-22 00:00:00 UTC
|
Is It Worth Investing in Datadog (DDOG) Based on Wall Street's Bullish Views?
|
DDOG
|
https://www.nasdaq.com/articles/is-it-worth-investing-in-datadog-ddog-based-on-wall-streets-bullish-views-0
|
nan
|
nan
|
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Datadog currently has an average brokerage recommendation (ABR) of 1.59, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.59 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 21 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 65.6% and 9.4% of all recommendations.
Brokerage Recommendation Trends for DDOG
Check price target & stock forecast for Datadog here>>>
The ABR suggests buying Datadog, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DDOG a Good Investment?
Looking at the earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.32.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Datadog.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
|
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
|
Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
|
Brokerage Recommendation Trends for DDOG Let's take a look at what these Wall Street heavyweights have to say about Datadog (DDOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Is DDOG a Good Investment?
|
772ce173-37c1-4aac-bf47-988df1206af1
|
718073.0
|
2023-09-21 00:00:00 UTC
|
Notable Thursday Option Activity: DDOG, PLTR, SPHR
|
DDOG
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-ddog-pltr-sphr
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 20,605 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 63.8% of DDOG's average daily trading volume over the past month, of 3.2 million shares. Particularly high volume was seen for the $95 strike call option expiring September 29, 2023, with 1,155 contracts trading so far today, representing approximately 115,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $95 strike highlighted in orange:
Palantir Technologies Inc (Symbol: PLTR) saw options trading volume of 309,776 contracts, representing approximately 31.0 million underlying shares or approximately 62.4% of PLTR's average daily trading volume over the past month, of 49.7 million shares. Particularly high volume was seen for the $14 strike call option expiring September 29, 2023, with 17,819 contracts trading so far today, representing approximately 1.8 million underlying shares of PLTR. Below is a chart showing PLTR's trailing twelve month trading history, with the $14 strike highlighted in orange:
And Sphere Entertainment Co (Symbol: SPHR) options are showing a volume of 2,697 contracts thus far today. That number of contracts represents approximately 269,700 underlying shares, working out to a sizeable 60.8% of SPHR's average daily trading volume over the past month, of 443,725 shares. Particularly high volume was seen for the $55 strike call option expiring October 20, 2023, with 505 contracts trading so far today, representing approximately 50,500 underlying shares of SPHR. Below is a chart showing SPHR's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for DDOG options, PLTR options, or SPHR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
IFSM Videos
TSBX Stock Predictions
KEG Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $95 strike call option expiring September 29, 2023, with 1,155 contracts trading so far today, representing approximately 115,500 underlying shares of DDOG. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 20,605 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 63.8% of DDOG's average daily trading volume over the past month, of 3.2 million shares.
|
Particularly high volume was seen for the $95 strike call option expiring September 29, 2023, with 1,155 contracts trading so far today, representing approximately 115,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $95 strike highlighted in orange: Palantir Technologies Inc (Symbol: PLTR) saw options trading volume of 309,776 contracts, representing approximately 31.0 million underlying shares or approximately 62.4% of PLTR's average daily trading volume over the past month, of 49.7 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 20,605 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares).
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 20,605 contracts has been traded thus far today, a contract volume which is representative of approximately 2.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DDOG's trailing twelve month trading history, with the $95 strike highlighted in orange: Palantir Technologies Inc (Symbol: PLTR) saw options trading volume of 309,776 contracts, representing approximately 31.0 million underlying shares or approximately 62.4% of PLTR's average daily trading volume over the past month, of 49.7 million shares. That number works out to 63.8% of DDOG's average daily trading volume over the past month, of 3.2 million shares.
|
Particularly high volume was seen for the $95 strike call option expiring September 29, 2023, with 1,155 contracts trading so far today, representing approximately 115,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $95 strike highlighted in orange: Palantir Technologies Inc (Symbol: PLTR) saw options trading volume of 309,776 contracts, representing approximately 31.0 million underlying shares or approximately 62.4% of PLTR's average daily trading volume over the past month, of 49.7 million shares. Below is a chart showing SPHR's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for DDOG options, PLTR options, or SPHR options, visit StockOptionsChannel.com.
|
5727d616-dc65-4565-8e7e-bb2d3bf5c6c0
|
718074.0
|
2023-09-20 00:00:00 UTC
|
Datadog (DDOG) Stock Moves -0.9%: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-stock-moves-0.9%3A-what-you-should-know
|
nan
|
nan
|
In the latest trading session, Datadog (DDOG) closed at $92.05, marking a -0.9% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 0.85% over the past month, lagging the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.34, up 47.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $523.3 million, up 19.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $2.06 billion. These totals would mark changes of +34.69% and +22.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 120% higher. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Datadog currently has a Forward P/E ratio of 70.56. Its industry sports an average Forward P/E of 36.77, so we one might conclude that Datadog is trading at a premium comparatively.
It is also worth noting that DDOG currently has a PEG ratio of 2.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the latest trading session, Datadog (DDOG) closed at $92.05, marking a -0.9% move from the previous day. It is also worth noting that DDOG currently has a PEG ratio of 2.78. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, Datadog (DDOG) closed at $92.05, marking a -0.9% move from the previous day. It is also worth noting that DDOG currently has a PEG ratio of 2.78. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, Datadog (DDOG) closed at $92.05, marking a -0.9% move from the previous day. It is also worth noting that DDOG currently has a PEG ratio of 2.78. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
In the latest trading session, Datadog (DDOG) closed at $92.05, marking a -0.9% move from the previous day. It is also worth noting that DDOG currently has a PEG ratio of 2.78. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
c4b8a29c-6eb0-4830-970c-a5187b582483
|
718075.0
|
2023-09-20 00:00:00 UTC
|
Oracle (ORCL) to Restructure Network and Data Security
|
DDOG
|
https://www.nasdaq.com/articles/oracle-orcl-to-restructure-network-and-data-security
|
nan
|
nan
|
Oracle ORCL has announced its participation in a broader industry effort to create a fresh open standard for network and data security. This initiative aims to bolster data protection in distributed IT setups. The company is set to collaborate with Applied Invention, other prominent tech firms and key organizations, including Nomura Research Institute, Ltd., which is known for its consulting and system solutions.
The new standard will enable networks to collectively enforce shared security policies, enhancing existing security architectures without requiring changes to existing applications and networks. As part of this initiative, Oracle intends to introduce the Oracle Zero-Trust Packet Routing Platform based on the new standard. This platform will assist organizations in preventing unauthorized data access or usage without creating additional obstacles for legitimate activities.
ORCL and Applied Invention are actively involved in shaping and promoting a novel security standard that focuses on network and data protection. This standard aims to tackle these challenges by allowing organizations to safeguard their data across its entire lifecycle, all while keeping their distributed cloud environments intact. To achieve this, the standard will employ an intent-based security policy that is comprehensible to humans for reading and auditing.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Oracle to Fend Off Competition With Regular Security Updates
As businesses increasingly turn to cloud computing as a means to grow, update and remain competitive, these are also facing new vulnerabilities. The shift toward cloud adoption and remote work has altered the landscape of security, necessitating the implementation of additional security measures. This has given rise to giants like Oracle, VMware VMW, Palo Alto Networks PANW and Datadog DDOG in this space.
VMware is a prominent provider of multi-cloud services and catering to all types of applications, facilitating digital innovation while maintaining enterprise-level control. In 2018, VMW acquired CloudHealth and in the following year, it expanded its capabilities to offer seamless integration with VMware workloads and public cloud environments.
Palo Alto Networks, a frontrunner in the field of cybersecurity, is dedicated to influencing the technology-driven cloud-centric future. PANW's primary goal is to become the preferred cybersecurity collaborator, safeguarding its digital lifestyles. It safeguards a multitude of organizations across cloud environments, networks and mobile devices.
Datadog, employed by organizations of varying sizes and spanning diverse industries, serves as a monitoring and security platform for cloud applications. The Datadog SaaS platform seamlessly combines and automates infrastructure monitoring, application performance monitoring and log management to offer a consolidated and real-time observability solution for the customers' complete technology infrastructure.
Oracle releases security updates quarterly to stay up to date with the market. It recently unveiled its quarterly Critical Patch Update, which includes a total of 508 new security patches. Among them, more than 75 patches are dedicated to fixing critical-severity vulnerabilities.
In this quarterly series of security updates, the Financial Services sector received the highest number of patches, totaling 147. Within these resolved vulnerabilities, 115 are susceptible to exploitation by remote and unauthenticated attackers with network access.
Shares of this Zacks Rank #3 (Hold) company have gained 38% year to date compared with the Zacks Computer and Technology sector’s rise of 37.3% due to new patches for a range of other products, including Utilities Applications, Supply Chain, Retail Applications, Java SE, PeopleSoft, Siebel CRM, Commerce, Enterprise Manager, Construction and Engineering, E-Business Suite and JD Edwards.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle notes that the successful exploitation of certain vulnerabilities within these patches could result in full compromise of the application or system. Additionally, many of these updates incorporate supplementary third-party patches. This is expected to boost cloud service and license revenues in the upcoming quarters.
The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and licence revenues is pegged at $44.65 billion, indicating year-over-year growth of 26.48%. The Zacks Consensus Estimate for earnings is pegged at a profit of $5.52 per share, indicating year-over-year growth of 7.81%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
VMware, Inc. (VMW) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This has given rise to giants like Oracle, VMware VMW, Palo Alto Networks PANW and Datadog DDOG in this space. Click to get this free report VMware, Inc. (VMW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The company is set to collaborate with Applied Invention, other prominent tech firms and key organizations, including Nomura Research Institute, Ltd., which is known for its consulting and system solutions.
|
This has given rise to giants like Oracle, VMware VMW, Palo Alto Networks PANW and Datadog DDOG in this space. Click to get this free report VMware, Inc. (VMW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and licence revenues is pegged at $44.65 billion, indicating year-over-year growth of 26.48%.
|
Click to get this free report VMware, Inc. (VMW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. This has given rise to giants like Oracle, VMware VMW, Palo Alto Networks PANW and Datadog DDOG in this space. Oracle Corporation Price and Consensus Oracle Corporation price-consensus-chart | Oracle Corporation Quote Oracle to Fend Off Competition With Regular Security Updates As businesses increasingly turn to cloud computing as a means to grow, update and remain competitive, these are also facing new vulnerabilities.
|
This has given rise to giants like Oracle, VMware VMW, Palo Alto Networks PANW and Datadog DDOG in this space. Click to get this free report VMware, Inc. (VMW) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. ORCL and Applied Invention are actively involved in shaping and promoting a novel security standard that focuses on network and data protection.
|
eb2b2ce6-edd6-4853-9762-6414f587e42d
|
718076.0
|
2023-09-19 00:00:00 UTC
|
1 Artificial Intelligence (AI) Stock Down 52% You'll Regret Not Buying on the Dip
|
DDOG
|
https://www.nasdaq.com/articles/1-artificial-intelligence-ai-stock-down-52-youll-regret-not-buying-on-the-dip
|
nan
|
nan
|
Fool.com contributor Parkev Tatevosian highlights why this artificial intelligence stock has earned consideration from long-term investors.
*Stock prices used were the afternoon prices of Sept. 15, 2023. The video was published on Sept. 17, 2023.
Find out why Datadog is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Datadog is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of September 11, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fool.com contributor Parkev Tatevosian highlights why this artificial intelligence stock has earned consideration from long-term investors. Find out why Datadog is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Fool.com contributor Parkev Tatevosian highlights why this artificial intelligence stock has earned consideration from long-term investors. *Stock prices used were the afternoon prices of Sept. 15, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Fool.com contributor Parkev Tatevosian highlights why this artificial intelligence stock has earned consideration from long-term investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of September 11, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
|
Datadog is on the list -- but there are nine others you may be overlooking. The Motley Fool has positions in and recommends Datadog. His opinions remain his own and are unaffected by The Motley Fool.
|
38c02d30-ec9b-4e9b-86d6-ce70384bfa6c
|
718077.0
|
2023-09-18 00:00:00 UTC
|
First Week of October 20th Options Trading For Datadog (DDOG)
|
DDOG
|
https://www.nasdaq.com/articles/first-week-of-october-20th-options-trading-for-datadog-ddog
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the October 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new October 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $93.00 strike price has a current bid of $3.35. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $93.00, but will also collect the premium, putting the cost basis of the shares at $89.65 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $94.30/share today.
Because the $93.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.60% return on the cash commitment, or 41.09% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Datadog Inc, and highlighting in green where the $93.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $99.00 strike price has a current bid of $2.47. If an investor was to purchase shares of DDOG stock at the current price level of $94.30/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $99.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.60% if the stock gets called away at the October 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $99.00 strike highlighted in red:
Considering the fact that the $99.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.62% boost of extra return to the investor, or 29.88% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $94.30) to be 60%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
OVV Next Dividend Date
Funds Holding CMPO
Institutional Holders of VVC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $99.00 strike highlighted in red: Considering the fact that the $99.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the October 20th expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $99.00 strike highlighted in red: Considering the fact that the $99.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the October 20th expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $99.00 strike highlighted in red: Considering the fact that the $99.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the October 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new October 20th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new October 20th contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $99.00 strike highlighted in red: Considering the fact that the $99.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the October 20th expiration.
|
32c191e9-91f4-4dc9-8ff5-0e08a6bd397e
|
718078.0
|
2023-09-15 00:00:00 UTC
|
DDOG December 15th Options Begin Trading
|
DDOG
|
https://www.nasdaq.com/articles/ddog-december-15th-options-begin-trading
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the December 15th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 91 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $90.00 strike price has a current bid of $6.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $90.00, but will also collect the premium, putting the cost basis of the shares at $83.85 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $94.10/share today.
Because the $90.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.83% return on the cash commitment, or 27.40% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Datadog Inc, and highlighting in green where the $90.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $100.00 strike price has a current bid of $6.65. If an investor was to purchase shares of DDOG stock at the current price level of $94.10/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $100.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.34% if the stock gets called away at the December 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red:
Considering the fact that the $100.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.07% boost of extra return to the investor, or 28.33% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $94.10) to be 60%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
Industrial Stocks Hedge Funds Are Buying
TCOA Average Annual Return
VERX Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the December 15th expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the December 15th expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the December 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 15th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the December 15th expiration.
|
141e3115-376d-466a-8499-b428c802d5b8
|
718079.0
|
2023-09-13 00:00:00 UTC
|
Groundfloor Gems: 3 Hypergrowth Stocks Just Starting to Take Off
|
DDOG
|
https://www.nasdaq.com/articles/groundfloor-gems%3A-3-hypergrowth-stocks-just-starting-to-take-off
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In this shaky market, many investors seek shelter in stable, mature companies trading at modest valuations. But for those with higher risk appetites, compelling opportunities exist among early-stage disruptors poised for hypergrowth returns. Though more speculative, these emerging innovators can deliver exponential returns if their visions play out.
Of course, chasing hypergrowth stocks is risky. These are not stable blue-chip stocks. Many speculative companies fail, and choppy broader market pressures could cause more short-term pain for these companies. Plus, it is hard to judge any short-term uptrend as a turnaround, and I would choose some intrinsically strong companies instead of trying to time the market.
With that in mind, let’s look at the following three hypergrowth stocks, for those looking to take a more aggressive stance right now.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) has transformed into a cloud monitoring powerhouse, but the market has yet to fully appreciate its upside. This monitoring and analytics platform for cloud applications has over 26,100 customers, including enterprise giants like Tesla (NASDAQ:TSLA), IBM (NYSE:IBM), and Microsoft (NASDAQ:MSFT). However, the stock plunged more than 58% in 2022 amidst broad multiple contractions for high-growth software stocks. Thankfully it is now in recovery mode, with the stock up over 41.3% year-to-date.
Indeed, I believe the stock’s previous selloff was overdone. However, there’s a long way to go before DDOG stock makes a full recovery. Datadog is still posting robust growth, despite economic uncertainty. Revenue surged 25.4% in Q2 2023, with the company bringing in earnings per share of 36 cents, which beat estimates by 8 cents. Moreover, Datadog’s growth is actually reaccelerating. Sales growth is expected to hover between 20-30% through 2031. The company even posted its best-ever quarter for new logo clients, proving demand remains strong.
Critically, profitability is now coming into focus. The company is expected to expand its profits 10-fold, from 2023 to 2031. This should help it meet the rule of 40 requirement that many investors see as key.
Looking ahead, Datadog’s growth story remains intact. The company’s management team currently estimates its addressable market is $45 billion, but expects it to reach $62 billion by 2026 as cloud adoption proliferates. Cloud monitoring spending is forecasted to grow 24% annually through 2030. Datadog is the clear leader in this space and is still gaining share.
Meanwhile, new security, AI, and automation product launches expand Datadog’s capabilities and customer wallet share. Over 30% of clients now use new products launched since 2021. With revenue rapidly scaling and profitability improving, and yet shedding over half its value, DDOG presents a compelling opportunity while still early in its journey.
International Seaways (INSW)
Source: Igor Karasi / Shutterstock.com
With oil prices soaring since Russia’s invasion of Ukraine, tanker stocks are also prospering, in under-the-radar fashion. That said, most tanker stocks remain overlooked, creating huge disconnects between fundamentals and valuations. Take International Seaways (NYSE:INSW) for example, one of the world’s largest oil tanker operators.
Demand for oil tankers has surged, as companies scramble to shuttle supplies as trade flows shift globally. Sanctions exclude Russian seaborne volumes, increasing ton-mileage for available tankers. INSW’s fleet operates crucial routes exporting from the Americas and the Middle East, where production is rising. This perfect backdrop enabled massive profits over the past year.
INSW earned $615 million in net income over the last four quarters. After dividends and buybacks, the company has returned $360 million to shareholders. That represents a whopping 17% yield on its market cap. Despite these exceptional results, a valuation disconnect persists. INSW trades at just 4-times forward earnings, and less than book value.
This disconnect exists because many expect the tanker boom to end if the Russia-Ukraine war concludes. However, signs point to the conflict dragging on as neither side will capitulate. Even if it ended, sanctions preventing seaborne Russian oil exports would persist. EU embargoes expand later this year. So, demand tailwinds for INSW’s fleet remain strong.
With a rock-bottom valuation against a backdrop of spiking oil shipments, INSW offers intriguing upside. The company estimates oil demand will hit 102 million barrels per day in the back half of 2023, up 2 million from last year. If INSW simply maintains its present earnings power, shares could double. But this high-quality tanker operator should sail far higher with secular growth in seaborne oil flows.
JinkoSolar (JKS)
Source: Lutsenko_Oleksandr / Shutterstock.com
As a leading global solar module supplier, JinkoSolar (NYSE:JKS) benefits from surging clean energy demand. However, policy risks surrounding Chinese companies, plus solar industry volatility, have weighed heavily on shares. JKS stock currently trades nearly 60% below 2021 highs, presenting a golden buying opportunity.
From a fundamentals perspective, JinkoSolar is firing on all cylinders. Total revenue jumped 63% year-over-year in Q2 2023 to $4.2 billion, as total shipments exceeded 18 gigawatts. And with scale benefits kicking in, gross margins expanded substantially from 14.7% to 15.6%. JinkoSolar also earned $3.52 in diluted earnings per share, representing stunning earnings growth. This beat estimates by a $2.26. Yet, the stock has slumped by nearly 30% year-to-date.
The company sees robust growth continuing. It expects full-year module shipments between 70-75 gigawatts, up from prior guidance of 60-70 gigawatts. Management notes its order visibility has reached 80% of the guided range, with overseas orders making up the majority. Additionally, JinkoSolar continues to lead the industry transition to next-gen, high-efficiency N-type products.
Despite excellence operationally, JKS stock trades at just 0.09-times sales and 3-times forward earnings. Notably, the company managed to avoid recent U.S. tariffs on Chinese solar companies. For ESG-focused investors, JinkoSolar also leads its peer group in environmental initiatives as a top performer on the S&P Global ESG rating for PV companies. In the long-run, I see substantial upside for JKS stock, once this bearish momentum starts to fade.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Groundfloor Gems: 3 Hypergrowth Stocks Just Starting to Take Off appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has transformed into a cloud monitoring powerhouse, but the market has yet to fully appreciate its upside. However, there’s a long way to go before DDOG stock makes a full recovery. With revenue rapidly scaling and profitability improving, and yet shedding over half its value, DDOG presents a compelling opportunity while still early in its journey.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has transformed into a cloud monitoring powerhouse, but the market has yet to fully appreciate its upside. However, there’s a long way to go before DDOG stock makes a full recovery. With revenue rapidly scaling and profitability improving, and yet shedding over half its value, DDOG presents a compelling opportunity while still early in its journey.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has transformed into a cloud monitoring powerhouse, but the market has yet to fully appreciate its upside. However, there’s a long way to go before DDOG stock makes a full recovery. With revenue rapidly scaling and profitability improving, and yet shedding over half its value, DDOG presents a compelling opportunity while still early in its journey.
|
Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has transformed into a cloud monitoring powerhouse, but the market has yet to fully appreciate its upside. However, there’s a long way to go before DDOG stock makes a full recovery. With revenue rapidly scaling and profitability improving, and yet shedding over half its value, DDOG presents a compelling opportunity while still early in its journey.
|
280385fd-b336-447b-b18d-ea43b0f3997d
|
718080.0
|
2023-09-13 00:00:00 UTC
|
ChatGPT Has Ushered a Generative Artificial Intelligence (AI) Revolution: 2 Super Stocks to Buy and Hold Through the Boom
|
DDOG
|
https://www.nasdaq.com/articles/chatgpt-has-ushered-a-generative-artificial-intelligence-ai-revolution%3A-2-super-stocks-to
|
nan
|
nan
|
Since the launch of OpenAI's chatbot, ChatGPT, the focus on generative artificial intelligence (AI) has increased by leaps and bounds. In fact, the global generative AI market is estimated to grow annually at a compound average growth rate (CAGR) of nearly 80% from $1.75 billion in 2022 to $33 billion in 2027.
Not surprisingly, retail investors stand to benefit by picking up high-quality stocks that have exposure to this emerging tailwind. Here's why Meta Platforms (NASDAQ: META) and Datadog (NASDAQ: DDOG) fit the bill and can prove to be attractive buy-and-hold stocks in the ongoing AI boom.
Meta Platforms
Social media giant Meta Platforms has been a hot topic in 2023, with shares surging by nearly 148% so far this year. The growth seems even more impressive considering that the company's financial performance depends heavily on advertising -- a sector deeply affected by the current tough macroeconomic conditions. Investors have also been concerned about the company's heavy investments in the metaverse.
Despite these headwinds, Meta posted solid numbers in the second quarter. The company saw the daily active people (DAP) using its family of apps (Facebook, WhatsApp, Messenger, Instagram, and Threads) rise by 7% year over year to 3.07 billion and the number of monthly active people (MAP) grow by 6% year over year to 3.88 billion.
The company's use of AI, to analyze people's preferences and interactions and recommend relevant advertisements and content as well as track ad performance for sellers, is driving up engagement and monetization on the platform. AI-recommended content from unrelated accounts has emerged as the fastest-growing content category on Facebook Feed and has driven up the time spent on the platform by 7% in the second quarter. AI is also helping improve monetization with automated ad products called Meta Advantage.
Meta is working on integrating AI into its backbone infrastructure, which includes AI-optimized data centers, customized AI chips, and its 16,000-GPU supercomputer. The company launched AI Sandbox for advertisers, which helps them leverage the power of generative AI for a range of tasks including creating diverse variations of the same ad copy for different audiences, background creation based on text prompts, and image cropping for Facebook and Instagram ads.
Besides AI initiatives for its family of apps, Meta is also focused on monetizing short-form video feature Reels, Twitter clone Threads, and the Whatsapp Business app to drive top-line growth. CEO Mark Zuckerberg has dubbed 2023 the "Year of Efficiency" and has been aiming to make the organization more lean and flexible by laying off middle management staff and eliminating non-critical projects.
Wall Street analysts are forecasting the company's non-GAAP (adjusted) earnings per share (EPS) to reach $16.7 in fiscal 2024. Multiplying this by the company's forward P/E multiple of 22.4 produces a share price of $378, implying a decent upside potential close to 27%. Hence, it seems to make sense for investors to opt for a modest investment in this AI stock.
Datadog
Datadog is a cloud-native "observability" company that monitors servers, databases, tools, and services through its platform. Its shares dropped by a staggering 17% in a single day after the company reported second-quarter results on Aug. 8. The company's revenue surged by 25.4% year over year, reaching $509.5 million, while adjusted net income was up 50% year over year to $125 million. Despite the better-than-expected results, the gloomy outlook for the third quarter and full year did not sit well with the investors.
Although Datadog is facing near-term headwinds as large customers continued to optimize spending on cloud and observability in the second quarter, its long-term growth prospects still seem promising. Growing adoption of digitization and advanced technologies such as big data, cloud computing, machine learning, and AI have made its tools mission-critical for enterprises.
With Datadog's observability and cybersecurity platform providing real-time visibility to enterprises in their applications, databases, servers, and networks by pooling together diagnostic data, organizations are better equipped to quickly identify pain points and resolve them.
Hence, even in a supposedly difficult second quarter, Datadog saw a 23% year-over-year increase in total customer count to 26,100 customers -- which includes 2,990 customers who spend over $100,000 or more annually on the company's offerings.
Although the trailing-12-month dollar-based net revenue retention rate dropped year over year by 10 percentage points to 120% at the end of the second quarter, it was still above 100%, highlighting the success of the company in cross-selling and upselling to its existing customer base.
Datadog is also introducing new AI-based products to strengthen its position. This includes a large language model (LLM, used to power generative AI applications) observability product, to enable LLM developers to monitor the performance, quality, and accuracy of these models. The company has also introduced Bits AI, which acts as an incident management copilot and helps businesses identify and automatically remediate critical technical issues.
Datadog has a strong balance sheet -- $2.2 billion in cash and $885 million in total debt at the end of the second quarter -- giving the company much-needed flexibility to further fund its AI initiatives. The company's management is also well-known for providing conservative guidance and then outperforming its outlook on a quarterly basis.
Wall Street also seems to have deduced this trend. Out of the 38 analysts covering the stock, 29 recommend buying, despite the recent share price fall. Given the backdrop of high analyst confidence and the company's strong fundamentals, it makes sense for retail investors to consider a small position in this stock.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here's why Meta Platforms (NASDAQ: META) and Datadog (NASDAQ: DDOG) fit the bill and can prove to be attractive buy-and-hold stocks in the ongoing AI boom. The company's use of AI, to analyze people's preferences and interactions and recommend relevant advertisements and content as well as track ad performance for sellers, is driving up engagement and monetization on the platform. With Datadog's observability and cybersecurity platform providing real-time visibility to enterprises in their applications, databases, servers, and networks by pooling together diagnostic data, organizations are better equipped to quickly identify pain points and resolve them.
|
Here's why Meta Platforms (NASDAQ: META) and Datadog (NASDAQ: DDOG) fit the bill and can prove to be attractive buy-and-hold stocks in the ongoing AI boom. The company saw the daily active people (DAP) using its family of apps (Facebook, WhatsApp, Messenger, Instagram, and Threads) rise by 7% year over year to 3.07 billion and the number of monthly active people (MAP) grow by 6% year over year to 3.88 billion. The company's revenue surged by 25.4% year over year, reaching $509.5 million, while adjusted net income was up 50% year over year to $125 million.
|
Here's why Meta Platforms (NASDAQ: META) and Datadog (NASDAQ: DDOG) fit the bill and can prove to be attractive buy-and-hold stocks in the ongoing AI boom. The company saw the daily active people (DAP) using its family of apps (Facebook, WhatsApp, Messenger, Instagram, and Threads) rise by 7% year over year to 3.07 billion and the number of monthly active people (MAP) grow by 6% year over year to 3.88 billion. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
|
Here's why Meta Platforms (NASDAQ: META) and Datadog (NASDAQ: DDOG) fit the bill and can prove to be attractive buy-and-hold stocks in the ongoing AI boom. The company's use of AI, to analyze people's preferences and interactions and recommend relevant advertisements and content as well as track ad performance for sellers, is driving up engagement and monetization on the platform. Datadog Datadog is a cloud-native "observability" company that monitors servers, databases, tools, and services through its platform.
|
9dd656ae-4e2e-4c1d-9111-cbe358ab03e8
|
718081.0
|
2023-09-12 00:00:00 UTC
|
Datadog (DDOG) Recently Broke Out Above the 50-Day Moving Average
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-recently-broke-out-above-the-50-day-moving-average
|
nan
|
nan
|
Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
DDOG has rallied 13.5% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests DDOG could be on the verge of another move higher.
Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 14 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Free Report: Top EV Battery Stocks to Buy Now
Just-released report reveals 5 stocks to profit as millions of EV batteries are made. Elon Musk tweeted that lithium prices have gone to "insane levels," and they're likely to keep climbing. As a result, a handful of lithium battery stocks are set to skyrocket. Access this report to discover which battery stocks to buy and which to avoid.
Download free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. DDOG has rallied 13.5% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
|
Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend.
|
Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend. DDOG has rallied 13.5% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment.
|
a9804e28-8a37-4f3b-8668-6d6f8fd75e73
|
718082.0
|
2023-09-12 00:00:00 UTC
|
Software Bargains to Be Had in These ETFs
|
DDOG
|
https://www.nasdaq.com/articles/software-bargains-to-be-had-in-these-etfs
|
nan
|
nan
|
Software stocks are rarely inexpensive. Add to that, it’s usually difficult to find software equities trading at attractive multiples while simultaneously sporting wide moat attributes. Fortunately, there’s a difference between “difficult” and “impossible.”
Those possibilities open in broad fashion with the help of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). While QQQ and QQQM, both of which follow the Nasda-100 Index (NDX), are growth ETFs, there are occasions when some of the stocks residing in the funds sport attractive valuations.
Currently, that’s the case as it pertains to several of the software equities found in these ETFs. This is a relevant point because QQQ and QQQM allocate 49% of their weights to tech stocks. Those lineups are littered with software names.
Examples of QQQ Software Bargains
Zoom Video Communications (NASDAQ: ZM), the company that rose to fame during the early days of the coronavirus pandemic, is one of the smaller tech holdings in QQQ and QQQM, but after a couple of years of falling out of favor with investors, it’s valuations are arguably compelling.
“The company offers a differentiated peer-to-peer technology, complete with proprietary routing technology. Zoom is a recognized market leader in meeting software and is disrupting and expanding the $100 billion market for collaboration software with its ease of use and superior user experience,” observed Morningstar analyst Dan Romanoff.
Application software maker Autodesk (NASDAQ: ADSK) is another example of a QQQ/QQQM software holding that looks interesting on valuation. The company has strong subscriber and geographic diversification as its subs number in excess of four million across 180 countries.
Additionally, Autodesk software is used in an array of end markets, including construction, entertainment and gaming, among others. That implies the company isn’t dependent on a narrow number of customers to drive and top and bottom line growth.
“We think Autodesk will remain the industry standard, as its switching costs and network effect continue to reinforce one another and Autodesk stays at the forefront of industry trends. Autodesk now has over 95% of revenue recurring, after a gradual transition from licenses the past eight years. We think the change enables Autodesk to extract greater revenue per user as it upsells its loyal and increasingly maturing base,” noted Morningstar analyst Julie Bhusal Sharma.
Datadog (NASDAQ: DDOG), which is a QQQ/QQQM holding, is another example of an attractively valued software name.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG), which is a QQQ/QQQM holding, is another example of an attractively valued software name. Add to that, it’s usually difficult to find software equities trading at attractive multiples while simultaneously sporting wide moat attributes. While QQQ and QQQM, both of which follow the Nasda-100 Index (NDX), are growth ETFs, there are occasions when some of the stocks residing in the funds sport attractive valuations.
|
Datadog (NASDAQ: DDOG), which is a QQQ/QQQM holding, is another example of an attractively valued software name. Add to that, it’s usually difficult to find software equities trading at attractive multiples while simultaneously sporting wide moat attributes. Fortunately, there’s a difference between “difficult” and “impossible.” Those possibilities open in broad fashion with the help of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
|
Datadog (NASDAQ: DDOG), which is a QQQ/QQQM holding, is another example of an attractively valued software name. Examples of QQQ Software Bargains Zoom Video Communications (NASDAQ: ZM), the company that rose to fame during the early days of the coronavirus pandemic, is one of the smaller tech holdings in QQQ and QQQM, but after a couple of years of falling out of favor with investors, it’s valuations are arguably compelling. Zoom is a recognized market leader in meeting software and is disrupting and expanding the $100 billion market for collaboration software with its ease of use and superior user experience,” observed Morningstar analyst Dan Romanoff.
|
Datadog (NASDAQ: DDOG), which is a QQQ/QQQM holding, is another example of an attractively valued software name. Add to that, it’s usually difficult to find software equities trading at attractive multiples while simultaneously sporting wide moat attributes. This is a relevant point because QQQ and QQQM allocate 49% of their weights to tech stocks.
|
d9550e12-3603-4a2f-accf-4bfb4d19fd4f
|
718083.0
|
2023-09-08 00:00:00 UTC
|
Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-outpaces-stock-market-gains%3A-what-you-should-know-5
|
nan
|
nan
|
Datadog (DDOG) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 6.57% over the past month. This has outpaced the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 47.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $523.3 million, up 19.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $2.06 billion. These totals would mark changes of +34.69% and +22.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 107.14% higher. Datadog currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 73.44. Its industry sports an average Forward P/E of 38.78, so we one might conclude that Datadog is trading at a premium comparatively.
Meanwhile, DDOG's PEG ratio is currently 2.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. Meanwhile, DDOG's PEG ratio is currently 2.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Datadog (DDOG) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. Meanwhile, DDOG's PEG ratio is currently 2.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Datadog (DDOG) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. Meanwhile, DDOG's PEG ratio is currently 2.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
Datadog (DDOG) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. Meanwhile, DDOG's PEG ratio is currently 2.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
|
ac012ec2-6c18-4eaf-a062-759fa00abf32
|
718084.0
|
2023-09-08 00:00:00 UTC
|
Noteworthy Friday Option Activity: OCFC, DDOG, GOOG
|
DDOG
|
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-ocfc-ddog-goog
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in OceanFirst Financial Corp (Symbol: OCFC), where a total volume of 1,536 contracts has been traded thus far today, a contract volume which is representative of approximately 153,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 87.9% of OCFC's average daily trading volume over the past month, of 174,750 shares. Particularly high volume was seen for the $17.50 strike call option expiring October 20, 2023, with 1,535 contracts trading so far today, representing approximately 153,500 underlying shares of OCFC. Below is a chart showing OCFC's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 32,009 contracts, representing approximately 3.2 million underlying shares or approximately 85.9% of DDOG's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $72 strike put option expiring September 22, 2023, with 2,950 contracts trading so far today, representing approximately 295,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange:
And Alphabet Inc (Symbol: GOOG) saw options trading volume of 160,947 contracts, representing approximately 16.1 million underlying shares or approximately 80.9% of GOOG's average daily trading volume over the past month, of 19.9 million shares. Especially high volume was seen for the $137 strike put option expiring September 08, 2023, with 21,744 contracts trading so far today, representing approximately 2.2 million underlying shares of GOOG. Below is a chart showing GOOG's trailing twelve month trading history, with the $137 strike highlighted in orange:
For the various different available expirations for OCFC options, DDOG options, or GOOG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
BLBD Insider Buying
Construction mergers and acquisitions
PMVP shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $72 strike put option expiring September 22, 2023, with 2,950 contracts trading so far today, representing approximately 295,000 underlying shares of DDOG. Below is a chart showing OCFC's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 32,009 contracts, representing approximately 3.2 million underlying shares or approximately 85.9% of DDOG's average daily trading volume over the past month, of 3.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Alphabet Inc (Symbol: GOOG) saw options trading volume of 160,947 contracts, representing approximately 16.1 million underlying shares or approximately 80.9% of GOOG's average daily trading volume over the past month, of 19.9 million shares.
|
Below is a chart showing OCFC's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 32,009 contracts, representing approximately 3.2 million underlying shares or approximately 85.9% of DDOG's average daily trading volume over the past month, of 3.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Alphabet Inc (Symbol: GOOG) saw options trading volume of 160,947 contracts, representing approximately 16.1 million underlying shares or approximately 80.9% of GOOG's average daily trading volume over the past month, of 19.9 million shares. Particularly high volume was seen for the $72 strike put option expiring September 22, 2023, with 2,950 contracts trading so far today, representing approximately 295,000 underlying shares of DDOG.
|
Below is a chart showing OCFC's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 32,009 contracts, representing approximately 3.2 million underlying shares or approximately 85.9% of DDOG's average daily trading volume over the past month, of 3.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Alphabet Inc (Symbol: GOOG) saw options trading volume of 160,947 contracts, representing approximately 16.1 million underlying shares or approximately 80.9% of GOOG's average daily trading volume over the past month, of 19.9 million shares. Particularly high volume was seen for the $72 strike put option expiring September 22, 2023, with 2,950 contracts trading so far today, representing approximately 295,000 underlying shares of DDOG.
|
Below is a chart showing OCFC's trailing twelve month trading history, with the $17.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 32,009 contracts, representing approximately 3.2 million underlying shares or approximately 85.9% of DDOG's average daily trading volume over the past month, of 3.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Alphabet Inc (Symbol: GOOG) saw options trading volume of 160,947 contracts, representing approximately 16.1 million underlying shares or approximately 80.9% of GOOG's average daily trading volume over the past month, of 19.9 million shares. Particularly high volume was seen for the $72 strike put option expiring September 22, 2023, with 2,950 contracts trading so far today, representing approximately 295,000 underlying shares of DDOG.
|
475891a0-ff59-4f52-9d07-23995df47d58
|
718085.0
|
2023-09-08 00:00:00 UTC
|
Why Did DataDog Stock Fall 17% in August?
|
DDOG
|
https://www.nasdaq.com/articles/why-did-datadog-stock-fall-17-in-august
|
nan
|
nan
|
What happened
Shares of Datadog (NASDAQ: DDOG) tumbled 17.3% last month, according to S&P Global Market Intelligence. On Aug. 8, the observability and application performance monitoring specialist reported second-quarter earnings that exceeded Wall Street's forecasts, but investors were discouraged by management's outlook.
So what
Datadog has been a rock star among growth stocks over the past few years, achieving one of the most impressive revenue growth rates in the market. Software and data monitoring products have experienced strong demand from clients seeking to maximize the performance of their cloud applications, and Datadog is one of the industry leaders in terms of product quality and reputation.
Image source: Getty Images.
However, investors are feeling less bullish about that narrative after another quarter of slowing growth. Datadog reported 25% year-over-year revenue growth in Q2, and it beat analysts' consensus estimates. That's still an impressive rate of expansion, but the trend is clearly slowing. Management revised its full-year forecast downward, confirming that a near-term acceleration is unlikely. Investors were unimpressed with that outlook.
DDOG Revenue (Quarterly YoY Growth) data by YCharts.
This has been a common theme for high-growth software providers over the past year. Macroeconomic pressures and fears have led many large enterprises to cut expenses, and as they have increased the level of scrutiny they apply to new deals, they have extended the length of the sales cycle. Datadog and many of its peers have seen their growth rates tumble as a result, and their previous lofty valuations became unsustainable. Datadog's price-to-sales and forward price-to-earnings ratios have tumbled since the start of 2022, but both valuations are still high enough to expose the stock to volatility whenever the company's growth narrative is threatened.
DDOG PS Ratio data by YCharts.
Now what
Datadog is in a strange spot. A number of issues are likely to impact its earnings over the next few quarters, however, and the stock could be hit hard if there's a market downturn amid ongoing economic uncertainty. There's certainly a chance that its revenue will accelerate when the economic cycle shifts back into expansion mode. However, recent performance issues have called the company's economic moat into question.
Nonetheless, Datadog remains a leader in a high-growth industry, so it should have solid demand catalysts for the medium term. Despite some of the struggles that caught investor attention last quarter, the company still produced nearly $150 million in free cash flow. The latest sell-off hasn't made the stock cheap, but it has created a more attractive entry point for long-term investors.
{%sfr%}
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of Datadog (NASDAQ: DDOG) tumbled 17.3% last month, according to S&P Global Market Intelligence. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG PS Ratio data by YCharts.
|
What happened Shares of Datadog (NASDAQ: DDOG) tumbled 17.3% last month, according to S&P Global Market Intelligence. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG PS Ratio data by YCharts.
|
What happened Shares of Datadog (NASDAQ: DDOG) tumbled 17.3% last month, according to S&P Global Market Intelligence. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG PS Ratio data by YCharts.
|
What happened Shares of Datadog (NASDAQ: DDOG) tumbled 17.3% last month, according to S&P Global Market Intelligence. DDOG Revenue (Quarterly YoY Growth) data by YCharts. DDOG PS Ratio data by YCharts.
|
33d5fbee-54ee-4bca-b4c2-f9235478761e
|
718086.0
|
2023-09-07 00:00:00 UTC
|
Datadog (DDOG) Up 12.6% Since Last Earnings Report: Can It Continue?
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-up-12.6-since-last-earnings-report%3A-can-it-continue
|
nan
|
nan
|
A month has gone by since the last earnings report for Datadog (DDOG). Shares have added about 12.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Datadog due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Datadog Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Datadog reported second-quarter 2023 non-GAAP earnings per share (EPS) of 36 cents, which increased 50% from the year-ago quarter, beating the Zacks Consensus Estimate for earnings by 28.6%.
The company’s net revenues of $509.5 million increased 25.4% year over year and beat the consensus estimate by 1.82%.
Quarter Details
The company ended the second quarter with 26,100 customers, up from 21,200 in the prior-year period.
In the second quarter of 2023, Datadog had 2,990 customers with ARR of $100,000 or more, which increased 24% year over year. These customers generated about 85% of the total ARR.
As of the second-quarter end, 82% of customers used two or more products, up from 79% in the year-ago quarter. Additionally, 45% of customers utilized four or more products, up from 37% in the year-ago quarter.
Datadog’s dollar-based retention rate was more than 120% in the second quarter as customers increased their usage and adopted more products.
Operating Details
In the second quarter, Datadog’s adjusted gross margin increased 50 basis points (bps) on a year-over-year basis to 81.3%.
Research & development expenses gained 30.3% on a year-over-year basis to $158.4 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, increased 120 bps to 31.1%.
Sales and marketing expenses increased 24% year over year to $120.1 million. Sales and marketing expenses, as a percentage of revenues, contracted 30 bps to 23.6%.
General & administrative expenses increased 15.8% year over year, reaching $29 million in the reported quarter. General & administrative expenses, as a percentage of revenues, contracted 50 bps to 6.2%.
Datadog reported a non-GAAP operating income of $106.4 million compared with $84.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2023, Datadog had cash, cash equivalents, restricted cash and marketable securities of $2.2 billion compared with $2 billion as of Mar 31.
Operating cash flow was $153.2 million in the reported quarter, up from $133.8 million in the first quarter.
Free cash flow during the quarter was $141.7 million compared with $116.3 million in the first quarter.
Guidance
For the third quarter of 2023, Datadog anticipates revenues between $521 million and $525 million. Non-GAAP EPS is expected to be in the range of 33-35 cents. Non-GAAP operating income is expected to be in the range of $98-$102 million.
For 2023, Datadog anticipates revenues between $2.05 billion and $2.06 billion. Non-GAAP EPS is expected to be between $1.30 and $1.34. Non-GAAP operating income is expected to be in the range of $390-$400 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 125.49% due to these changes.
VGM Scores
At this time, Datadog has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Datadog has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Datadog is part of the Zacks Internet - Software industry. Over the past month, Aspen Technology (AZPN), a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2023 more than a month ago.
Aspen Technology reported revenues of $320.64 million in the last reported quarter, representing a year-over-year change of +34.2%. EPS of $2.13 for the same period compares with $2.43 a year ago.
For the current quarter, Aspen Technology is expected to post earnings of $1.41 per share, indicating a change of -35.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Aspen Technology has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A month has gone by since the last earnings report for Datadog (DDOG). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Datadog (DDOG). Datadog Q2 Earnings Beat Estimates, Revenues Rise Y/Y Datadog reported second-quarter 2023 non-GAAP earnings per share (EPS) of 36 cents, which increased 50% from the year-ago quarter, beating the Zacks Consensus Estimate for earnings by 28.6%.
|
Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Datadog (DDOG). Datadog Q2 Earnings Beat Estimates, Revenues Rise Y/Y Datadog reported second-quarter 2023 non-GAAP earnings per share (EPS) of 36 cents, which increased 50% from the year-ago quarter, beating the Zacks Consensus Estimate for earnings by 28.6%.
|
A month has gone by since the last earnings report for Datadog (DDOG). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog Q2 Earnings Beat Estimates, Revenues Rise Y/Y Datadog reported second-quarter 2023 non-GAAP earnings per share (EPS) of 36 cents, which increased 50% from the year-ago quarter, beating the Zacks Consensus Estimate for earnings by 28.6%.
|
c87bc620-ba10-4121-b09e-b0c9c44820ff
|
718087.0
|
2023-09-04 00:00:00 UTC
|
ChatGPT Is Making History: 2 Artificial Intelligence (AI) Growth Stocks to Buy Now and Hold Through the Boom
|
DDOG
|
https://www.nasdaq.com/articles/chatgpt-is-making-history%3A-2-artificial-intelligence-ai-growth-stocks-to-buy-now-and-hold
|
nan
|
nan
|
Conversational chatbot ChatGPT reached 1 million users in just five days following its launch last November, and it reached 100 million users in just two months, making it the fastest-growing consumer application in history, according to analysts at investment bank UBS. That explosive adoption hints at robust demand for generative artificial intelligence (AI) software in the years ahead.
Indeed, Morgan Stanley believes generative AI will unlock a $6 trillion market opportunity by improving online search, e-commerce, and digital advertising, among other uses.
Many companies are rushing to capitalize on that opportunity, but Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are particularly well positioned to benefit. Here's why.
1. Microsoft
Microsoft is the leader in enterprise software as a service, and Microsoft Azure makes it the second-largest cloud computing company. That should translate into strong revenue growth in the years ahead, since both markets are expected to increase at roughly 14% annually through 2030.
But Microsoft is leaning into artificial intelligence (AI) to supercharge growth in enterprise software and cloud computing, and the core of its strategy is an exclusive partnership with OpenAI.
Morgan Stanley analyst Keith Weiss says the perks of that partnership make Microsoft the software company best positioned to monetize generative AI.
For instance, Azure is the only cloud that offers access to OpenAI large language models, including the GPT models, allowing developers to build custom generative AI applications on the same foundation as ChatGPT. Azure is also the exclusive cloud provider for OpenAI, meaning Microsoft will benefit as the use of ChatGPT and other OpenAI products increases.
Microsoft itself has announced several products built on OpenAI models. Microsoft 365 Copilot will draft and edit content in Word, organize and analyze data in Excel, and create presentations in PowerPoint.
Dynamics 365 Copilot will provide sales insights, create marketing content, streamline customer service workflows, and improve supply chain management. And GitHub Copilot is already simplifying software projects for developers with auto-complete code suggestions.
Management says monetization of the Copilot products will ramp up slowly as they reach general availability in the coming quarters, but investors should see some impact by the second half of fiscal 2024 (ending June 30, 2024).
The slow onset notwithstanding, those products could be tremendous future revenue streams. According to Nvidia chief financial officer Colette Kress, AI-enabled assistants like Copilot will ultimately address a market opportunity worth many hundreds of billions of dollars.
Here's the bottom line: Microsoft's enterprise software and cloud computing revenue should grow in the low double digits through the end of the decade, maybe faster if its Azure offerings and Copilot products catch fire. That makes its current valuation of 11.6 times sales seem reasonable despite being a slight premium to the three-year average of 11.3. Investors should feel comfortable buying a small position in this AI stock today.
2. Datadog
Datadog helps businesses collect and make sense of observability and security data from across their IT environments. Its platform features more than a dozen products targeting different aspects of the corporate technology stack, but they collectively help clients keep their crucial applications and infrastructure performing.
Its software also leans on AI to accelerate incident remediation, and it does so to great effect. Forrester Research recently recognized Datadog as a leader in AI software for IT operations.
Datadog has innovated rapidly in recent years. It became the first platform to unify the three pillars of observability (i.e., metrics, traces, and logs) in 2018, providing clients with unmatched visibility across their applications and infrastructure, and the company has branched into new observability and cybersecurity verticals every year since.
Better yet, Datadog is a recognized market leader in several of those verticals, including application performance monitoring, log monitoring, and network monitoring.
Datadog earned $1.9 billion in revenue over the trailing 12 months, up 39% from the prior year, but management values its addressable market at $62 billion by 2026.
Given its track record, it should come as no surprise that Datadog recently announced two innovations meant to capitalize on the growing demand for generative AI. LLM Observability is a performance-monitoring product that helps businesses optimize their generative AI applications. And Bits is a generative AI assistant that helps development and operations (DevOps) teams investigate and remediate issues more quickly.
The bottom line: Datadog is a leader in several observability software verticals, and demand for its software should rise as technologies like generative AI make corporate IT environments more complex. In fact, Wolfe Research analyst Alex Zukin thinks interest in generative AI could make Datadog the fastest growing software company.
That means its current valuation of 16.2 time sales could look cheap in hindsight, and it's certainly a bargain compared to the three-year average of 35.6. Investors should feel comfortable buying a few shares of this growth stock today.
10 stocks we like better than Microsoft
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Datadog, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Many companies are rushing to capitalize on that opportunity, but Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are particularly well positioned to benefit. Management says monetization of the Copilot products will ramp up slowly as they reach general availability in the coming quarters, but investors should see some impact by the second half of fiscal 2024 (ending June 30, 2024). According to Nvidia chief financial officer Colette Kress, AI-enabled assistants like Copilot will ultimately address a market opportunity worth many hundreds of billions of dollars.
|
Many companies are rushing to capitalize on that opportunity, but Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are particularly well positioned to benefit. Microsoft Microsoft is the leader in enterprise software as a service, and Microsoft Azure makes it the second-largest cloud computing company. Here's the bottom line: Microsoft's enterprise software and cloud computing revenue should grow in the low double digits through the end of the decade, maybe faster if its Azure offerings and Copilot products catch fire.
|
Many companies are rushing to capitalize on that opportunity, but Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are particularly well positioned to benefit. Microsoft Microsoft is the leader in enterprise software as a service, and Microsoft Azure makes it the second-largest cloud computing company. Morgan Stanley analyst Keith Weiss says the perks of that partnership make Microsoft the software company best positioned to monetize generative AI.
|
Many companies are rushing to capitalize on that opportunity, but Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are particularly well positioned to benefit. Microsoft Microsoft is the leader in enterprise software as a service, and Microsoft Azure makes it the second-largest cloud computing company. Morgan Stanley analyst Keith Weiss says the perks of that partnership make Microsoft the software company best positioned to monetize generative AI.
|
800d4ae2-94fb-4e1c-b591-75705cf6c4c3
|
718088.0
|
2023-09-03 00:00:00 UTC
|
3 No-Brainer Stocks I'd Buy Right Now Without Hesitation
|
DDOG
|
https://www.nasdaq.com/articles/3-no-brainer-stocks-id-buy-right-now-without-hesitation-11
|
nan
|
nan
|
In today's stock market with literally tens of thousands of companies from which to choose, it's far too easy for investors to become paralyzed with indecision as they weigh their options. I've written thousands of articles about stocks and investing over the past decade, and I often find myself waffling between the bull and bear case for a company I'm researching.
There are, however, a handful of no-brainer stocks I would buy right now without hesitation if I were looking to put fresh capital to work.
Out of the doghouse and into your portfolio
It might seem counterintuitive, but I celebrate when stocks I own fall in price because -- as a long-term investor hoping for even greater gains down the road -- it gives me a chance to add to my position at those lower prices. Investors have been given such an opportunity with Datadog (NASDAQ: DDOG), a cloud-observability platform that's growing quickly, enjoying increasing operating leverage as it scales, and has a history of underpromising and overdelivering.
Shares of Datadog cratered 19% in a single day on Aug. 8 after the company delivered better-than-expected second-quarter results, but also slightly lowered its full-year revenue outlook.
On the former, Datadog saw revenue climb 25.4% year over year to $509.5 million, translating to non-GAAP (adjusted) net income of $0.36 per share -- both well above high ends of its previous guidance ranges. Despite its beat, however, Datadog lowered its full-year 2023 revenue guidance to a range of $2.05 billion to $2.06 billion (down from a range of $2.08 billion to $2.1 billion), while simultaneously raising its outlook for 2023 adjusted net income per share to be between $1.30 and $1.34 (up from between $1.13 and $1.20 per share previously). If anything, this disparity between lowering its revenue outlook and raising its earnings outlook speaks to the fact that Datadog is becoming more efficient as it scales.
During the subsequent conference call, Datadog co-founder and CEO Olivier Pomel explained that the company saw some usage growth from existing customers, particularly larger-spending customers (it now has 2,990 clients that generate annual recurring revenue (ARR) of at least $100,000), that was slightly lower than in previous quarters as those customers "scrutinized costs and optimize their cloud and observability usage during Q2." Pomel further reminded investors that Datadog generally applies "conservatism" in its outlook, and continues to expect the company's land-and-expand model to resonate with new customers.
Was that conservative outlook worthy of a 19% single-day haircut? I don't think so. Datadog is not a broken business, and I won't be the least bit surprised when Datadog once again outperforms its conservative guidance next quarter.
A creative portfolio option
Many investors will be focused on Adobe (NASDAQ: ADBE) when it releases its own fiscal third-quarter 2023 results in a couple of weeks (Sept. 14), but I believe the creative software specialist best known for products like Photoshop, Illustrator, and Premier is poised to knock it out of the park over the longer term as a key beneficiary of the rise of artificial intelligence (AI).
Adobe is already on a roll to that end; earlier this year the company added a new generative AI platform called Firefly to its Sensei AI and machine-learning framework. The move made its subscription-based suite of cloud-based creative software that much more compelling.
Shares also rallied in June after the company delivered a strong beat-and-raise performance, with revenue climbing 10% year over year to $4.82 billion and quarterly operating cash flow arriving at $2.14 billion. CEO Shantanu Narayen said that "Adobe's ground-breaking innovation positions us to lead the new era of generative AI given our rich datasets, foundation models and ubiquitous product interfaces."
If Adobe continues to take as much share as possible of what management estimates is already a more than $200 billion market opportunity, I'm confident it will prove to be a winner that keeps on winning.
Like a coiled spring ready to pop
Finally, investors appeared to let out a collective sigh of indifference in response to Twilio's (NYSE: TWLO) latest quarterly update a few weeks ago, with shares little changed on the news. But don't take that to mean the communication tools leader underperformed.
In fact, Twilio handily beat expectations for Q2; revenue was up 10% year over year, to $1.04 billion, translating to adjusted earnings of $0.54 per share, with each well above the high end of guidance and analysts' estimates for revenue and earnings of $987 million and $0.30 per share, respectively. Twilio also significantly raised its full-year profitability outlook, calling for adjusted operating income of $350 million to $400 million (up from $275 million to $350 million previously).
So why didn't the market seem to care? For one, Twilio's top-line growth continues to slow: Its outlook for the third quarter calls for revenue to be flat to up 1% -- though organic growth should be around 3% to 4% after you exclude its divestments of non-core businesses (namely its Internet of Things (IoT) business in June 2023 and its India-based ValueFirst business in July 2023) to hone its focus over the past year.
Twilio's core services make money based on the volume of text messages they process. Even as Twilio continues to build its client base each quarter -- with 304,000 total active customer accounts at the halfway point of 2023, up from 300,000 in Q1 and 275,000 a year earlier -- that volume has undoubtedly waned over the past couple of years.
Twilio remains confident it will return to more substantial growth in time, estimating its total addressable market could grow to $116 billion in 2025 thanks to expanded adoption of cloud-enabled customer engagement software. But until then, the company is making significant progress in its drive for increased operational efficiency.
When growth inevitably reaccelerates, I think Twilio will be perfectly positioned to capitalize having emerged as a more efficient, profitable business. And investors who buy now and wait patiently for its growth story to play out should be handsomely rewarded.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Steve Symington has positions in Datadog. The Motley Fool has positions in and recommends Adobe, Datadog, and Twilio. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors have been given such an opportunity with Datadog (NASDAQ: DDOG), a cloud-observability platform that's growing quickly, enjoying increasing operating leverage as it scales, and has a history of underpromising and overdelivering. CEO Shantanu Narayen said that "Adobe's ground-breaking innovation positions us to lead the new era of generative AI given our rich datasets, foundation models and ubiquitous product interfaces." Like a coiled spring ready to pop Finally, investors appeared to let out a collective sigh of indifference in response to Twilio's (NYSE: TWLO) latest quarterly update a few weeks ago, with shares little changed on the news.
|
Investors have been given such an opportunity with Datadog (NASDAQ: DDOG), a cloud-observability platform that's growing quickly, enjoying increasing operating leverage as it scales, and has a history of underpromising and overdelivering. On the former, Datadog saw revenue climb 25.4% year over year to $509.5 million, translating to non-GAAP (adjusted) net income of $0.36 per share -- both well above high ends of its previous guidance ranges. Despite its beat, however, Datadog lowered its full-year 2023 revenue guidance to a range of $2.05 billion to $2.06 billion (down from a range of $2.08 billion to $2.1 billion), while simultaneously raising its outlook for 2023 adjusted net income per share to be between $1.30 and $1.34 (up from between $1.13 and $1.20 per share previously).
|
Investors have been given such an opportunity with Datadog (NASDAQ: DDOG), a cloud-observability platform that's growing quickly, enjoying increasing operating leverage as it scales, and has a history of underpromising and overdelivering. Despite its beat, however, Datadog lowered its full-year 2023 revenue guidance to a range of $2.05 billion to $2.06 billion (down from a range of $2.08 billion to $2.1 billion), while simultaneously raising its outlook for 2023 adjusted net income per share to be between $1.30 and $1.34 (up from between $1.13 and $1.20 per share previously). During the subsequent conference call, Datadog co-founder and CEO Olivier Pomel explained that the company saw some usage growth from existing customers, particularly larger-spending customers (it now has 2,990 clients that generate annual recurring revenue (ARR) of at least $100,000), that was slightly lower than in previous quarters as those customers "scrutinized costs and optimize their cloud and observability usage during Q2."
|
Investors have been given such an opportunity with Datadog (NASDAQ: DDOG), a cloud-observability platform that's growing quickly, enjoying increasing operating leverage as it scales, and has a history of underpromising and overdelivering. Despite its beat, however, Datadog lowered its full-year 2023 revenue guidance to a range of $2.05 billion to $2.06 billion (down from a range of $2.08 billion to $2.1 billion), while simultaneously raising its outlook for 2023 adjusted net income per share to be between $1.30 and $1.34 (up from between $1.13 and $1.20 per share previously). * They just revealed what they believe are the ten best stocks for investors to buy right now… and Datadog wasn't one of them!
|
37f1bbf7-8979-4f6d-bb82-dc0c14c95847
|
718089.0
|
2023-08-31 00:00:00 UTC
|
Noteworthy Thursday Option Activity: ROKU, DDOG, ATGE
|
DDOG
|
https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-roku-ddog-atge
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Roku Inc (Symbol: ROKU), where a total of 68,591 contracts have traded so far, representing approximately 6.9 million underlying shares. That amounts to about 118.2% of ROKU's average daily trading volume over the past month of 5.8 million shares. Particularly high volume was seen for the $84 strike call option expiring September 01, 2023, with 5,515 contracts trading so far today, representing approximately 551,500 underlying shares of ROKU. Below is a chart showing ROKU's trailing twelve month trading history, with the $84 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 51,603 contracts, representing approximately 5.2 million underlying shares or approximately 92.7% of DDOG's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $100 strike call option expiring September 15, 2023, with 5,484 contracts trading so far today, representing approximately 548,400 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange:
And Adtalem Global Education Inc (Symbol: ATGE) options are showing a volume of 3,023 contracts thus far today. That number of contracts represents approximately 302,300 underlying shares, working out to a sizeable 87.4% of ATGE's average daily trading volume over the past month, of 345,990 shares. Especially high volume was seen for the $40 strike put option expiring November 17, 2023, with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of ATGE. Below is a chart showing ATGE's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for ROKU options, DDOG options, or ATGE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Agricultural Chemicals Dividend Stocks
SPB Dividend Growth Rate
LYB Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $100 strike call option expiring September 15, 2023, with 5,484 contracts trading so far today, representing approximately 548,400 underlying shares of DDOG. Below is a chart showing ROKU's trailing twelve month trading history, with the $84 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 51,603 contracts, representing approximately 5.2 million underlying shares or approximately 92.7% of DDOG's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: And Adtalem Global Education Inc (Symbol: ATGE) options are showing a volume of 3,023 contracts thus far today.
|
Below is a chart showing ROKU's trailing twelve month trading history, with the $84 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 51,603 contracts, representing approximately 5.2 million underlying shares or approximately 92.7% of DDOG's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $100 strike call option expiring September 15, 2023, with 5,484 contracts trading so far today, representing approximately 548,400 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: And Adtalem Global Education Inc (Symbol: ATGE) options are showing a volume of 3,023 contracts thus far today.
|
Below is a chart showing ROKU's trailing twelve month trading history, with the $84 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 51,603 contracts, representing approximately 5.2 million underlying shares or approximately 92.7% of DDOG's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing ATGE's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for ROKU options, DDOG options, or ATGE options, visit StockOptionsChannel.com. Especially high volume was seen for the $100 strike call option expiring September 15, 2023, with 5,484 contracts trading so far today, representing approximately 548,400 underlying shares of DDOG.
|
Below is a chart showing ROKU's trailing twelve month trading history, with the $84 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 51,603 contracts, representing approximately 5.2 million underlying shares or approximately 92.7% of DDOG's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing ATGE's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for ROKU options, DDOG options, or ATGE options, visit StockOptionsChannel.com. Especially high volume was seen for the $100 strike call option expiring September 15, 2023, with 5,484 contracts trading so far today, representing approximately 548,400 underlying shares of DDOG.
|
efd803e7-b769-4251-aee5-6f1af4492991
|
718090.0
|
2023-08-31 00:00:00 UTC
|
Citigroup Maintains Datadog Inc - (DDOG) Buy Recommendation
|
DDOG
|
https://www.nasdaq.com/articles/citigroup-maintains-datadog-inc-ddog-buy-recommendation-0
|
nan
|
nan
|
Fintel reports that on August 30, 2023, Citigroup maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation.
Analyst Price Forecast Suggests 15.56% Upside
As of August 2, 2023, the average one-year price target for Datadog Inc - is 108.81. The forecasts range from a low of 70.70 to a high of $147.00. The average price target represents an increase of 15.56% from its latest reported closing price of 94.16.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 19.23%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1261 funds or institutions reporting positions in Datadog Inc -. This is a decrease of 4 owner(s) or 0.32% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.48%, an increase of 8.62%. Total shares owned by institutions decreased in the last three months by 0.40% to 246,455K shares.
The put/call ratio of DDOG is 1.27, indicating a bearish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 10,392K shares representing 3.20% ownership of the company. In it's prior filing, the firm reported owning 6,095K shares, representing an increase of 41.35%. The firm increased its portfolio allocation in DDOG by 120.45% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
ICONIQ Capital holds 7,817K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 13,176K shares, representing a decrease of 68.55%. The firm increased its portfolio allocation in DDOG by 188.67% over the last quarter.
Wcm Investment Management holds 6,204K shares representing 1.91% ownership of the company. In it's prior filing, the firm reported owning 4,757K shares, representing an increase of 23.32%. The firm increased its portfolio allocation in DDOG by 65.05% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Additional reading:
Amended and Restated Non-Employee Director Compensation Policy
Amended and Restated Bylaws of Datadog, Inc.
Second quarter revenue grew 25% year-over-year to $509 million Strong growth of larger customers, with about 2,990 $100k+ ARR customers, up from about 2,420 a year ago Announced innovations for Generative AI, Observability, Security, Developer Experi
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on August 30, 2023, Citigroup maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, an increase of 8.62%. The put/call ratio of DDOG is 1.27, indicating a bearish outlook.
|
Fintel reports that on August 30, 2023, Citigroup maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, an increase of 8.62%. The put/call ratio of DDOG is 1.27, indicating a bearish outlook.
|
Fintel reports that on August 30, 2023, Citigroup maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, an increase of 8.62%. The put/call ratio of DDOG is 1.27, indicating a bearish outlook.
|
Fintel reports that on August 30, 2023, Citigroup maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, an increase of 8.62%. The put/call ratio of DDOG is 1.27, indicating a bearish outlook.
|
31811afb-e549-4022-9efc-75bb5988ca21
|
718091.0
|
2023-08-31 00:00:00 UTC
|
6 Cybersecurity Stocks: Which is the Best to Buy?
|
DDOG
|
https://www.nasdaq.com/articles/6-cybersecurity-stocks%3A-which-is-the-best-to-buy
|
nan
|
nan
|
Cybersecurity stocks are down hard compared to last year, but not because the industry isn't hot.
The problem was valuation, fears of slowing growth and threats of a looming recession. According to the Q2 reporting season, growth is slowing but still robust and above consensus. In addition, margins are widening and expected to remain strong or improve over the next year.
The analysts lifted their targets for cybersecurity stocks, putting a floor in the market. Based on the outlooks and the technical setups, these stocks are ready to rip higher, but which is the best one to buy?
CrowdStrike: Endpoint Security
The Falcon platform CrowdStrike Holdings Inc. (NASDAQ: CRWD) emerged as the leading source for endpoint security. Endpoint security focuses on securing the devices of endpoint users, including workstations, PCs, laptops and mobile. Services include malware, antivirus, detection and response.
It is the cheapest high-growth cybersecurity stock, with a P/E of 61x this year's earnings, which falls to a more reasonable 47x next year.
The Q2 report highlighted slowing growth but to a high-double-digit level, and growth should continue at a double-digit pace through next year. The analysts see the stock moving up at least 20%, which is a cautious estimate given the revision trend.
Zscaler: Zero-Trust Private Network
Zscaler Inc. (NASDAQ: ZS) has a cloud-based zero-trust private-network security system launched from over 150 data centers worldwide. Services are located geographically close to the end users, which helps to speed up detection and response. Among the system's features are decoys that lure and prevent unwanted access. Again, growth is slowing but at a high-double-digit pace expected to continue.
Next year’s consensus implies 285 top-line growth, likely a cautious estimate. Analysts rate Zscaler a "moderate buy" with about 12% upside potential; the consensus target flattened over the past month but is up compared to last quarter due to revisions following the Q2 results.
Datadog: Infrastructure Security
Datadog Inc. (NASDAQ: DDOG) operates a data tracking and analytics platform that includes security, prevention, detection and responses. The platform operates like a virtual private cloud that limits network access.
Growth slowed to 20% in the past quarter but came above the MarketBeat.com consensus, leading analysts to raise targets despite weak guidance. The company cut its revenue target for the year but maintained the guidance for earnings above consensus. The analysts rate the stock a "moderate buy" with a higher price target about 12% above the current action.
Check Point Software: AI-Based (Before AI was Cool)
Check Point Software Technologies (NASDAQ: CHKP) is an interesting choice because it has used AI for years. It is also a consolidated cybersecurity firm offering solutions for the cloud, networks, endpoints, mobile and the Internet of Things (IoT).
It is the cheapest stock in the group at 16x earnings, which is attractive but has the slowest growth. Growth should continue, and the stock is the least volatile of the group. Investors looking for exposure with less risk may choose this stock. However, the analysts rate it at "hold" with a price target that assumes fair value at current levels.
Okta: Security as a Business Service
Okta Inc. (NASDAQ: OKTA) operates an ID management and security platform. The platform secures networks by validating IDs to manage access via the cloud. The company’s growth slowed to 20% this year and 17% next year, with expected widening margins and outperformance.
Outperformance is expected because the company tends to beat consensus 100% of the time, and the Q2 results were robust, pointing to additional momentum. Guidance was also favorable and led the analysts to raise their targets. The sentiment and price target are moving higher than earlier in the year, with the sentiment up to "moderate buy" from "hold" and the price target leading the market.
Palo Alto Networks: Industry Leader
Palo Alto Networks Inc. (NASDAQ: PANW) is the most significant player in cybersecurity, with business spanning hardware, software, networks, the cloud and AI.
It trades at the most reasonable valuation of the group aside from Check Point, with a P/E of 43x. That’s high for a blue-chip tech stock but comes with 25% year-over-year (YOY) growth this year and 20% next. Analysts rate it a firm "buy" with a price target about 8% above the current action. The 8% isn’t much, but this is the only price target trending higher compared to last month, last quarter and last year, as seen in the price action.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog: Infrastructure Security Datadog Inc. (NASDAQ: DDOG) operates a data tracking and analytics platform that includes security, prevention, detection and responses. Analysts rate Zscaler a "moderate buy" with about 12% upside potential; the consensus target flattened over the past month but is up compared to last quarter due to revisions following the Q2 results. Growth slowed to 20% in the past quarter but came above the MarketBeat.com consensus, leading analysts to raise targets despite weak guidance.
|
Datadog: Infrastructure Security Datadog Inc. (NASDAQ: DDOG) operates a data tracking and analytics platform that includes security, prevention, detection and responses. Okta: Security as a Business Service Okta Inc. (NASDAQ: OKTA) operates an ID management and security platform. Palo Alto Networks: Industry Leader Palo Alto Networks Inc. (NASDAQ: PANW) is the most significant player in cybersecurity, with business spanning hardware, software, networks, the cloud and AI.
|
Datadog: Infrastructure Security Datadog Inc. (NASDAQ: DDOG) operates a data tracking and analytics platform that includes security, prevention, detection and responses. The company’s growth slowed to 20% this year and 17% next year, with expected widening margins and outperformance. The sentiment and price target are moving higher than earlier in the year, with the sentiment up to "moderate buy" from "hold" and the price target leading the market.
|
Datadog: Infrastructure Security Datadog Inc. (NASDAQ: DDOG) operates a data tracking and analytics platform that includes security, prevention, detection and responses. The analysts rate the stock a "moderate buy" with a higher price target about 12% above the current action. The company’s growth slowed to 20% this year and 17% next year, with expected widening margins and outperformance.
|
587b78f8-c4f2-4b4c-bb6c-e13aa35373e7
|
718092.0
|
2023-08-30 00:00:00 UTC
|
Best Stocks to Buy Now: Is CrowdStrike Stock a Buy After Earnings? CRWD Stock Analysis
|
DDOG
|
https://www.nasdaq.com/articles/best-stocks-to-buy-now%3A-is-crowdstrike-stock-a-buy-after-earnings-crwd-stock-analysis
|
nan
|
nan
|
CrowdStrike (NASDAQ: CRWD) achieved generally accepted accounting principles (GAAP) profitability for the second sequential quarter and delivered record results. Falcon, CrowdStrike's endpoint cybersecurity platform, leverages artificial intelligence (AI) and has grown from a single module in 2011 to 23 modules today.
In the video below, Motley Fool contributor and 25-year stock market veteran Eric Cuka breaks down CrowdStrike stock and provides earnings highlights, fundamental analysis, price targets, predictions, technical analysis, commentary, and more.
*Stock prices used were the evening prices of Aug. 30, 2023. The video was published on Aug. 30, 2023.
10 stocks we like better than CrowdStrike
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and CrowdStrike wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Eric Cuka has positions in Cloudflare, CrowdStrike, Datadog, Microsoft, SentinelOne, and Zscaler. The Motley Fool has positions in and recommends Cloudflare, CrowdStrike, Datadog, Microsoft, and Zscaler. The Motley Fool has a disclosure policy.
Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
CrowdStrike (NASDAQ: CRWD) achieved generally accepted accounting principles (GAAP) profitability for the second sequential quarter and delivered record results. In the video below, Motley Fool contributor and 25-year stock market veteran Eric Cuka breaks down CrowdStrike stock and provides earnings highlights, fundamental analysis, price targets, predictions, technical analysis, commentary, and more. The Motley Fool has positions in and recommends Cloudflare, CrowdStrike, Datadog, Microsoft, and Zscaler.
|
In the video below, Motley Fool contributor and 25-year stock market veteran Eric Cuka breaks down CrowdStrike stock and provides earnings highlights, fundamental analysis, price targets, predictions, technical analysis, commentary, and more. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Eric Cuka has positions in Cloudflare, CrowdStrike, Datadog, Microsoft, SentinelOne, and Zscaler. The Motley Fool has positions in and recommends Cloudflare, CrowdStrike, Datadog, Microsoft, and Zscaler.
|
In the video below, Motley Fool contributor and 25-year stock market veteran Eric Cuka breaks down CrowdStrike stock and provides earnings highlights, fundamental analysis, price targets, predictions, technical analysis, commentary, and more. 10 stocks we like better than CrowdStrike When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Eric Cuka has positions in Cloudflare, CrowdStrike, Datadog, Microsoft, SentinelOne, and Zscaler.
|
In the video below, Motley Fool contributor and 25-year stock market veteran Eric Cuka breaks down CrowdStrike stock and provides earnings highlights, fundamental analysis, price targets, predictions, technical analysis, commentary, and more. That's right -- they think these 10 stocks are even better buys. His opinions remain his own and are unaffected by The Motley Fool.
|
8ffd34f7-bcb3-46fa-92c4-678cdc3ce44b
|
718093.0
|
2023-08-30 00:00:00 UTC
|
Buzzwords of the Earnings Season: AI and Shrink
|
DDOG
|
https://www.nasdaq.com/articles/buzzwords-of-the-earnings-season%3A-ai-and-shrink
|
nan
|
nan
|
In this podcast, Motley Fool analysts Andy Cross and Jason Moser and host Dylan Lewis discuss:
The epic hype around Nvidia's earnings release, and how AI is playing into the ambitions for other companies in tech like Workday.
Why "shrink" is the buzzword of the season in retail and how investors should be looking at it.
How Williams-Sonoma and Ulta bucked tough trends in retail to put up strong numbers.
The numbers behind updates from Intuit and Autodesk.
Two stocks to watch: Nike and Chewy.
Olivier Pomel, CEO of Datadog, talks through the company's recent results, the promising signs he's seeing in customer spend, and why he thinks his company still has a 10X opportunity in front of it.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When our analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of MM/DD/YYYY
This video was recorded on August 25, 2023
Dylan Lewis: We've got tales of two earnings buzzwords. Can you guess what they are? Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me in studio, Motley Fool senior analysts, Andy Cross and Jason Moser. Great to have you both here, guys. We've got retailers doing well and not so well, a CEO's take on how listening to your customers can help shape your offerings, and of course, stocks on our radar. But we're kicking off today with two buzzwords from the earning season, AI and shrink. We're going to start with AI, and we're going to start with Nvidia. Jason, this is basically the company that could change its name to the AI Supply Company, [laughs] and no one would think twice. Safe to say AI is not going anywhere, and this business continues to benefit from it.
Jason Moser: I think that's a safe assumption, yes. Let's back up a little bit. Forgetting that Nvidia is a great company taking advantage of what is clearly very large market opportunity in the AI, the level of anticipation going into the release, to me, honestly, it's a red flag. This thing is taking on a life of its own. I'm not referring to the fundamentals of this business. Don't get me wrong. I'm referring to the level of enthusiasm, the sentiment, the perspective here that there is Nvidia, and then there's the rest of the market. I would encourage investors, at least, to be careful. Let's keep our heads screwed on straight here. We've had a lot of valuation lessons reiterated to us over the past couple of years. No matter how you slice it, this stock is screaming. Thirty-five times trailing sales, 115 times trailing earnings, the stock is up better than 220% just this year alone, and that's for good reason, and we'll get into that now. Revenue better than doubled from a year ago. Non-GAAP earnings per share up 430%. Yes, 430% from a year ago. I understand the enthusiasm. But you also look and think, this is a business that's come off some recent challenges, one that, long ago, where crypto was supposed to be the big tailwind taking this thing, and all of a sudden, that just disappeared, so I would just encourage investors to keep their heads about them in this case.
Now the AI story is real. That's not something that's going away, and management called this out in the call. I think with Nvidia today, really, the big focus of this business right now, it's the data center opportunity and the world has something along the lines of $100 trillion in data centers, which are ultimately in this process of transitioning into accelerated computing in generative AI. The investment that's going into this data center opportunity on an annual basis, management estimates somewhere in the neighborhood of a quarter of $1 trillion of capital spent each year. Nvidia is going to get their share of that. It also won't last forever, so just keep that in mind. The market, being a forward-looking mechanism, is looking at all of these numbers and looking at what this company has done to date and giving it a lot of credit. You just got to look forward and see how long does this opportunity continue, and what do these growth rates look like a year from now?
Andy Cross: I think, Jason, you hit it on the head with the data center, and that is where the massive growth is right now. I think their data center revenues may have doubled. It was just extensive. The other areas were very nice growth, but much smaller. The data center investment as Nvidia builds out, not just on the graphics processing units, just the chips, but the entire stack support the data with generative AI, with all the computing power required. You look at the clients they continue to reference in their call. You're talking AWS, Google Cloud, Meta, Microsoft, Oracle. Snowflake is a big client. They just partnered with Snowflake for a new deal to help Snowflake make sense of all the data that they are collecting for their clients, to be able to make sense of that as they are looking to analyze all that data. It's just fascinating. I can't remember another company in recent memory that the investment community has been so excited to understand and talk about because of this massive growth opportunity that we're seeing in generative AI.
Jason Moser: You said data center. Just to put a bow on that, dataset. I like to see how often things are mentioned, and then for the longest time, it's been AI. Data center itself was mentioned 50 times in this call. We're talking about record revenue of better than $10 billion. That was up, like you said, AC, up 141% sequentially, up 171% from a year ago, so clearly, they're lighting the world on fire here. Just try to figure out how long does this continue because, at some, point it starts to slow down.
Dylan Lewis: Andy, we're going to take the challenge here from Jason and have a conversation about AI that does not include Nvidia. [laughs] We're going to talk about another company. We see these headlines related to Nvidia and AI. Let's actually look at how businesses are implementing AI in their offerings and talking about the positioning there. You dug into the results from Workday. It seems like a good company to profile for that.
Andy Cross: Workday is actually a really interesting company to talk about not just because of what they are serving in the human resource, in the financial area, software provider to help companies make sense of their HR financial operations, but also, like you said, in the AI. Just very quickly, the quarter for Workday is a $60 billion market cap that provides the human resources and financial functions for half the Fortune 500, for example, so very large clients, really solid quarter. Subscription revenues up almost 19%. The revenue backlog was up almost 33%. Real operating margins, so you add in all that stock-based compensation, was at 2%, but that was versus a loss of a year ago, so they are making progress on the profit curve. But what's really interesting, like you said, Dylan, is the focus on AI, and they did talk about this throughout the call, highlighting Workday's investments in AI and machine learning that they've been doing since 2014. Their software touches 65 million users globally. You take their clients and all the people who touch and use that software, 65 million users who have that high personal touch interaction that are so important for a company like Workday, and AI and machine learning are really benefiting from that. The company believes that AI will be central to changing the way that Workday's clients interact with their software. Again, you're talking about HR and financial functions, so a very personal function for an employee base. They process 50 million machine learning inferences a day, and that's up 60% from a year ago. They're collecting all this information, trying to make sense of it, put it into their systems, and build better tools for their clients, and clearly right now, it is starting to work. I'm excited about Workday because it's interesting as it is not just being able to grow revenues but actually be able to grow profits. Finally they talked about the ability for things like generative AI to help improve their operating performance and eventually help with their operating margins down the line.
Dylan Lewis: Over to buzzword Number 2, and this is really the story of shrink. It continues to grow. This week we saw disappointing results from several retailers, Dollar Tree, Foot Locker, Dick's. Jason, one word just kept coming up, shrink.
Jason Moser: It is a real problem, although I think it's also a real excuse in some cases. I think, for some retailers, it's a bit more relevant than others. Looking at something, like Dollar Tree, for example, we were just going through those results earlier. Talking about things that are mentioned in call, the word shrink mentioned 26 times in Dollar Tree's call. I would argue, Dollar Tree, I think that's a business that's going to be difficult to really monitor this stuff because you have these shelves full thousands upon thousands of SKUs, just a lot of stuff in those stores. It's just difficult to keep track of all that stuff. But they did quantify this and that shrink is continuing to restrict their margins, they said, by about 75-80 basis points on a year-over-year basis. Now they're taking what they call the appropriate actions to try to combat that. They didn't really dig into what those actions were, and I think that is a testament to really how tough of a problem this is to solve. But I also think it will be noteworthy to hear this perspective a year from now, because if you think about it, shrink is really a trailing indicator. It's telling us what happened. As we've seen companies like Dollar Tree, they're through about 75% inventory for the year. As they finish that count, and we get a better understanding of how big of a force that is on their margins, a year from now, we'll see if those appropriate actions have actually helped out at all.
Dylan Lewis: Andy, going over to Jason's metric of the day, number of times things are mentioned inearnings call I looked over at Foot Locker, nine times on the call, shrink came up. Same story there?
Andy Cross: Actually, I don't think it is. Shrink definitely is impacting their business, but really, they are facing some very stiff headwinds on the consumer that their revenues were down almost 10%, and that was an improvement from a drop of revenues from the first quarter. This was in the second quarter. In the first quarter, that fell 11.4%, but still same-store sales down more than 9%. That was worse than they saw in the first quarter. Gross margin fell by 460 basis points, that's 4.6%, because of markdowns and occupancies costs. They have a lot of inventory they've been trying to move out the door because their consumers are just not spending as much, and that's the challenge that Foot Locker is facing right now. Their consumers are just not spending. They had to cut their EPS, cut their earnings per share guidance to $1.30 to $1.50 versus prior guidance of $2 to $2.25 just earlier this year. They are looking at their consumer base. They're looking at the challenges that consumers are going to have with not just the macro factors, like, what's going to happen when so many consumers have to start paying back student loans later this fall as we know? While employment numbers and workforces are still very strong, what has happened with the higher interest rates? How are all these factors are impacting a company like Foot Locker? Furthermore, Nike is almost 2/3 of their sales, and as we know, Nike is moving more and more to direct-to-consumer, and that's having an impact, so a lot of challenges for Foot Locker and a very difficult quarter they faced.
Dylan Lewis: Coming up after the break, we've got retailers putting up some better numbers. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis here in studio with Andy Cross and Jason Moser. We're going to stick with the retail conversation and continue the earnings parade with a look at Ulta. Jason, the cosmetics company raised full-year guidance and the top and bottom line for them. What's going on right for them right now?
Jason Moser: It is an encouraging report. I think it's one that shines a bit of a light on on the reasons why we like this cosmetics and beauty market. It's a resilient one. Its sale is two-and-a-half billion dollars. That was up from $2.3 billion a year ago, with comps up 8%, and earnings per share up 5.5%. They did see transactions up 9%, so clearly people are shopping. While they saw the average ticket just fall 1%, so not much really to write home about there. I think they are able to maintain some pricing there. Gross margin fell 110 basis points. Most of that really was just due to, unfortunately, they did mention the word shrink, but not nearly as much, but I think it was more about higher supply chain costs in this case. They did end up raising their outlook for the fiscal year. I think an interesting dynamic with Ulta, you look at their partnership with Target. It's something that probably flies under the radar. But they had that store-within-a-store partnership with Target. Now they opened 62 of those stores for the quarter. They have 421 of those little store-within-a-store now, and that's on top of the Ulta retail locations, which is above 1,300. It's just an interesting opportunity there for them. I think one of the things they are really focused on with that Target opportunity is their loyalty program. I'm not really sure fully of the economics in regard to that actual agreement there, but one thing we do know is it does sign up more Ulta Reward program members, and they now have 41.7 million active members. That was up 9% from a year ago. Just a fascinating point here, I discovered these loyalty members drive 95% of Ulta's revenues, so you can clearly see the value that they present.
Dylan Lewis: Sticking with retail, shares of Williams-Sonoma up 11% after earnings this week, revenue and earnings down year-over-year, but the market seemed to really like the margin picture that the company was putting together, Jason.
Jason Moser: We did talk a little bit earlier in the week about retail and how it can be a difficult space for buy-to-hold style investing as things change so much in this world. I think Williams-Sonoma, this is one that stands out where buy-to-hold can work along with Ulta. Williams-Sonoma is a longtime Stock Advisor recommendation. It's got tremendous return for a number. It's just a company that keeps on keeping on. You look at these results, not the greatest in the world. Comp revenue down about 12%. Gross margins saw some compression there to the tune of about 280 basis points. A lot of that was due to higher shipping and freight costs. While they did ratchet down expectations on the top line for the year, they're able to ratchet up a little bit on the operating margin side, which basically means it's a wash for earnings guidance. Earnings still ought to come in in line. I think that when you present that narrative to the market, that top-line is a little bit of a downer. But if the company is going to be as profitable, or even perhaps more, I think that's the enthusiasm we saw from the market.
Andy Cross: The cash flow line too as well, Jason. The inventory and those costs had been really hammering Williams-Sonoma. I think it will start to subside over the next certainly next year or so, and that's going to help on their free cash flow line. It's been a company that pays a nice dividend, buys back stock, makes smart investments. Laura Alber and her team, I think, are really underappreciated managers in the retail space, and Williams-Sonoma continues to impress.
Dylan Lewis: This isn't a company I'm super familiar with, Andy, but just in prepping for the show and getting my research together, I didn't realize the e-commerce presence they had and the push that they are making into college and dorm wares and just what that might mean for this business.
Andy Cross: It's really interesting, Dylan, because over the last, say, five years, they made a broad push to go more and more into e-commerce. They still have a retail footprint, but they're managing that very well. They really build out those brands they have and expanding beyond just the core Williams-Sonoma Pottery Barn into other lines, especially, as you said, into younger consumers, like those who are in college.
Dylan Lewis: Summertime might not be when people are generally thinking about taxes, but Intuit does a lot of other things. I think shareholders probably appreciated seeing a 2% bump after the company reported fiscal Q4 earnings. Andy, what did you see in the results?
Andy Cross: A really solid quarter from Intuit and strength in the business-to-business. That's really on the small business, self-employed QuickBooks Online, online services, that area, a little weakness on the new Credit Karma business they bought maybe two or three years ago. That was actually down 11% versus growth of 21% in the small business and self-employed which, by the way, saw strength there across the online system that they are continuing to add in the features, like payment volume. Payment volume was actually up 22% in that small business area, so strength in the B2B sphere, Dylan, and a little bit weakness on the consumer side. Now they're very excited about the Credit Karma business. I think that can lead to some really strong growth long term. But that was weak this quarter. They're expecting further weakness ahead. Yet still you think about the sales overall, up 12%, operating income, up 45%, adjusted EPS for the quarter, up 50%. They do have two-thirds of their debt maturing over the next 15 months or so, so it'll be interesting to see how they refinance that debt and what it cost them to do so.
Dylan Lewis: You mentioned the Credit Karma asset there. Is the weakness that we're seeing there part of the broader interest rate story, Andy?
Andy Cross: Yeah. It's part of the broader interest rate, so it's weakness in loans and it's strength in credit cards. They are seeing more and more interest in credit cards. Unfortunately as we are starting to see a little bit of weakness in credit card payments and some of the banks starting to set aside some of those reserves to some of those credit cards.
Dylan Lewis: Losing a little bit of talent too, aren't they, Andy, Intuit?
Andy Cross: They are. PayPal assigned their new CEO, who came from Intuit, ran a very nice business with Intuit. While that's an advantage that PayPal, that's a little bit of a loss to Intuit, I think.
Dylan Lewis: We'll round out the earnings talk with a look at Autodesk. Shares, up 5% this week. This is one of those lesser known companies. I know our Fool analysts follow it and really enjoy looking at the company, following it. This is also maybe a name that comes up in AI conversations. Andy?
Andy Cross: Yeah, a little bit. It's a 45 billion-dollar company, so it's not small, and they are the leader in providing software to architectures, engineer, construction firms as a big part of their business. They do AutoCAD. They have lots of different lines. They actually have a little media business too that provides 3D modeling to entertainment companies to help them build out some of their films and movies in television, so really solid business. They're revenue for the quarter was up 9%. They saw strength really pretty much across the board. AutoCAD, up 9%. That architecture, engineering, construction, which is the big part of their business, was up 14%, manufacturing, up 9%. Direct sales was up 18%. That's not going through resellers. That's going directly to their customers. That was up 18%, and now it makes up 3.7% of their sales, so strength really across the board for Autodesk. The backlog of demand, their CEO said, is still very significant as the markets figure out the best way to adopt digital solution to help build out what really is a need for better architecture solutions when it comes to helping to build all things, and Autodesk touches all things. The free cash flow is a little bit lower this quarter up to the rest of this fiscal year, but that will start to trough and start to improve in the next year or two. That's what I'm really excited about when I look at Autodesk, the free cash flow potential of this business.
Dylan Lewis: Is what we're seeing with the financial picture there, Andy, somewhat a reflection of this business transitioning from the licensed model of software to the as-a-service model of software?
Andy Cross: Absolutely, Dylan. They are moving from upfront payments and much more toward subscription both yearly and over a couple of years. That means the recognized revenue will get recognized over years [MUSIC] as opposed to upfront. That's impacting your near-term cash flows. But that will really start to normalize, not so much this coming quarter or the next quarter, but probably a year out. That's where I think the free cash-flow potential and viability of Autodesk will really start showing.
Dylan Lewis: Andy Cross, Jason Moser, fellows, we'll see you guys a little bit later in the show. Coming up, we've got the CEO of a company. Our analysts love talking through recent results and mistakes companies make when they only listen to their big customers. Welcome back to Motley Fool Money. I'm Dylan Lewis. We're sticking with the earnings theme this week for our interview. Earlier this month, cloud monitoring and security company Datadog reported its second quarter results. When it did, at affirmed the reality that, industrywide, customer spend is still a bit tight. But if you take a step back, that budget tightening looks more like a short-term hiccup than a long term headwind. Last week, Motley Fool analyst Tim Buyers caught up with Olivier Pomel, CEO of Datadog, to talk through the company's recent results, the promising signs he's seeing in customer spend, and why he thinks his company still has a 10x opportunity in front of.
Tim Beyers: The last time we talked about Datadog, there was a lot of innovations that you're introducing. You did more of that again this past quarter, continuing a trend I think we've seen from Datadog over the course of its public life and really throughout its history, but I wonder if we could just take it from the top. If you had to summarize where you are as a business today and maybe just thinking about the quarter because growth may have slowed a little bit. I don't think that surprises anybody, but how do you summarize where you are right now?
Olivier Pomel: We are the leader in observability and definitely around cloud workloads. We are establishing a footprint in security also in [inaudible] in addition to observability, and we're growing along with the broader trends of digital transformation and cloud migrations. As we say, in the recent quarters, cloud migration has slowed a little bit, at least, in the numbers after a few years of very rapid growth, after the pandemic. But we think we're still in the early stages of decades-long migration that's going to keep happening. Our role today, our job, is to keep building the product to cover all of our customers' observability and security needs and keep getting our customers set up with these products, basically, so we're heads down on that.
Tim Beyers: Let's talk about large customers because one of the things you've always tracked, and you've been very good about this over time, is the number of customers that generate high amounts of annual recurring revenue. Using Datadog, you reported at the 100K level, and you also reported at the million-dollar level. It seems to me that the customers that grow into that million-dollars tier, Olivier, are arguably the most important for thinking about the compounded value that Datadog can generate. Am I thinking about that right? If I'm not, can you help me think about, how do you consider what are the things that you have to do in terms of serving customers, generating value that creates real value for shareholders over a long period of time?
Olivier Pomel: I would say it's right in part, and we definitely derive a lot of value from there, and we focus a lot on customers that pay us a million dollar or more. Our largest customers today pay us in the tens of millions of dollars a year. But really where the bulk of our revenue comes from is all customers that are above $100,000 a year, and that represents about 85% of our total revenue. This is what I would say, today and in the few years to come, is really what's going to drive the growth of the company is to growth of these courts and scale of customers and they grow with us as they move further into the cloud. They move more of their architecture or infrastructure from legacy environments and on-prem environments into Cloud. Also they adopt more of our products as we solve more of their problems. Also they go from infrastructure monitoring to all of the observability including logs. I think Mission Providence monitoring, and then they add security and then they add developer workflows and all the other things we can do for them. I would say in the longer-term though, we also have a very broad customer base in general. Unlike most companies in the space, are either focus on the very low end, on the very high end. But nobody really covers the full spectrum like we do. Today the revenue is very concentrated on the higher-end and the bottom half of our customers only represent a couple of percent of our revenue. But as we keep adding more products in solving big problems for customers, the lower-end of our customers becomes more important and more monetizable. The issue you have when you have customers that don't pay you a lot of money because they are small, is that it's really hard to feed go-to-market team to better customer acquisition costs on that, and then to better cost of serving new customers and giving them customer support. But as you solve a bigger problem, as you add products have increased the amounts you can get from the smaller customers, and as a result, you make those more investable and you can make them off which other vector of growth. That's not the focus today, but as definitely something that's in our future as we brought on the platform and we solve bigger problems for all of our customers.
Tim Beyers Let me see if I'm hearing you correctly. What it sounds like is, one of the ways we should think about growth is that, as Datadog compounds its number of use cases, like I've a library of problems, there's Datadog that I can solve. If I have a very large library of problems I can solve, then I have a long tail of ways that a customer who may be small can come in to the Datadog ecosystem and then grow with Datadog over time. Am I hearing you right?
Olivier Pomel: Exactly.
Tim Beyers Is that the way to think about it?
Olivier Pomel: Exactly. In the short term, you mid term even, we're talking about larger customers, so $100,000 [inaudible] or a million dollar or more. In the longer run, every single customer, even the smaller ones, represent an interesting opportunity for us and eventual future growth. We do have a lot of value actually from having these very broad customer base. Even today, if the majority of our revenue comes from our larger customers, we do take a lot of influence for the smaller customers in terms of keeping their products simple and being deployed in a very wide variety of situations, which gives us a network effect for the product in terms of how it works and device configuration is going to support.
Tim Beyers I would also imagine that you may run into some situations where a use case that popped up at the lower end suddenly makes a lot of sense for a large customer that didn't realize they had that problem.
Olivier Pomel: Totally. A lot of the newer technologies, next-generation technologies, tend to start with the smaller customers and the newer companies and the smaller companies. That's the case, for example today with a lot of the newer AI stuff. A lot of that is starting with brand new companies that are exploring and trying new things. Some of it is being adopted by large enterprises, where it might take more time for that to crystallize and rescale in those larger enterprises, so we definitely see a lot of value from having those two worlds meet in Datadog, the world of the smaller, newer companies and the world of the larger, more traditional, high and larger scale enterprises.
Tim Beyers Let me give you a question around this idea of how you're investing, not just in the go-to-market team but just broadly. Your a company that rewards your employees with a lot of stock-based compensation. I get questions on this all the time from our members. SBC was 23% of revenue. In the last quarter, it's grown a lot. I know that this is something that you're going to use in a way that I tend to think about it. I imagine you're using this as a capital you're investing to recruit things, like very talented engineers. How should we think about the way that you think about stock-based compensation? Does this moderate over time? Where where are you in the genesis of using stock-based compensation as part of your strategy to grow?
Olivier Pomel: That's a great question. The first thing I'd say is that there hasn't been a large change in the ratio of how much we compensate with stock-based comp. One change is optical and accounting-driven because, before we took the company public, we were granting stock options to employees. When we went public, we stopped doing that, and we say granting RSUs instead. The stock options don't enter the GAAP numbers the same way as the RSU. The ramp up you've seen was largely the RSUs ramping up and replacing the stock options. We are, by design, compensating employees with equity. The reason for that is that we see ourselves as still at the very beginning of a long expansion cycle, where internally, we're going after the next 10x in the size of the company in the scope we can have for our customers. As a result, we want everybody to be aligned with the long-term success of the company. We do it in a way where the significance of the equity stake goes up with the seniority of the role in the company. But everyone at Datadog gets equity, and everyone is an owner. I think it's important. Culturally it's very important to us.
Tim Beyers: But I want to key on something you just said there. If I heard you right, this is an opportunity. It's early enough that you see there's a 10x opportunity here, meaning, that you think the addressable market for you is at least 10x over where you are today. Is that right?
Olivier Pomel: Yes.
Tim Beyers Did I hear you right?
Olivier Pomel: Yes. I think there's a 5X or 10x on the cloud migration alone because we're far from being done with it, and that trend is going to keep going on. We think AI is only going to accelerate that trend. If you want to add up AI, you need to be digital. That's given. Then you probably need to be in the cloud because all of you are going to it anyway, so I think it's going to accelerate all that. Then there is more of an opportunity if we can broaden to other categories and if we can fully establish ourselves as the leader in security in relation to observability. Then there's a few more potential, longer-term opportunities around ITSM, IT automation, and developer workflow is getting closer to the developers. There's a number of things we can do there to get to the 10X, and that's what we're looking for internally and that's also why we want employees to align on that in the long run.
Tim Beyers That makes sense. This is really interesting. This is a very short-term question, and you addressed this during theearnings call but I thought I'd just see if there is anything I missed here. What I thought I heard you say during theearnings callis there are some optimizations still happening. There are some headwinds that every cloud company has faced here. What is it that gets you out of those headwinds, and do you see that happening, 18 months, 24 months? Is there a reacceleration that you think you can see? What are you doing to get beyond some of these optimizations that may be crimping the growth rate in the short term?
Olivier Pomel: Here's the thing. We don't really control it because this is driven by a lot of the macro background, things that we don't control. It's driven also by a change in posture from a lot of investors to a lot of newer companies. If you look at our consumer base, the companies that have been optimizing the earliest and the most were the digital native companies. We [inaudible] more recent company, more tech-forward companies that were completely into the cloud, so substantially all of their IT spend is cloud spend for whom IT spend is a big part of their revenue. For a large fraction of them, they were actually unprofitable or not very profitable companies. As you well know, these companies were not viewed as favorable by investors over the past year, so they had to reorganize pretty drastically their finances, and one of the big opportunities for savings was the cloud. Even before us, before observability was their cloud provider, you have to remember that if a customer pays us a million dollar a year, they pay 10 million or $20 million a year to their cloud provider, but we are attached to that cloud consumption. So we don't really control it. That being said, when we look at those cohort of customers who started optimizing and who are at risk, we feel good now that they're in a much better place. We know that because we see those customers now commit with us for longer periods of time in the future and at a level of commitment days above their current consumption, meaning that instead of projecting themselves toward further optimization, they project themselves toward growth in cloud environments again. So we feel good about those. Now this is not the only cohort. There's still a number of pieces in the macro environment. It's just like, every other day, there's a new piece of economic data that falls and reshuffles the markets a little bit. So it's impossible for us to say whether we see all of that come to an end quarter-to-quarter, three-quarters, we can't tell, and if you look at the comments or the commentary in the earnings calls from the cloud providers, whether that's Microsoft or Amazon or Google, they also don't really know. They think also the market is reaching a trough right now, but they can't know for sure. What we know is that, while our earliest customers optimize, the slowing of cloud migration is a bit of a headwind for us. But we also know that, as that optimization subsides, the cloud migration and digital transformation are going to become a tailwind again, which has been true through 95% of the history of our business.
Dylan Lewis: If you're sweating what to cut is you optimize spend, one thing that might ease your mind is knowing that Motley Fool Money is available for free daily as a podcast and weekly here on the Radio. You can get our full archive at podcast.fool.com or wherever you listen to podcasts. Coming up after the break, Jason Moser and Andy Cross return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. [MUSIC] As always, people on the program may have interests in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't just buy or sell anything based solely on what you hear. I'm Dylan Lewis joined again by Andy Cross and Jason Moser. We've got stocks on our radar. But first, a story to round out the show, Subway is going to be taken private by Roark Capital in an estimated $10 billion deal, ending the company's long run as a family owned business. Jason, if I give you 10 billion bucks, which company are you taking private in the restaurant industry?
Jason Moser: Dylan, I'm not going to lie. I've got a Joey Tribbiani-esque love for sandwiches. I love them. One that flies under the radar for a lot of folks, AC, I know you know what I'm talking about. Dylan, you may not. I grew up with a Schlotzsky's back down in Charleston, South Carolina. There's only 340 locations nationwide from what I can see, man. I would buy that thing, I would rejuvenate it. I would spread that thing far and wide because that is a delicious sandwich. Just the bread they use for them, it's one I just don't think gets enough credit in today's sandwich-driven world.
Dylan Lewis: It sounds like Jason's going passion project. Where are you going with 10 billion points?
Andy Cross: I like the Dog Haus Hot Dog Cheese. There's one downtown Silver Spring where I live, and you can go there and get all different kinds of hot dogs. They have beers on tap, and they have televisions. I like the Dog Haus. I don't know who even owns it, but when I just want to get a hot dog, that's the place I go.
Dylan Lewis: It's a good local shout-out. We appreciate it. Over to stocks on our radar, our man behind the glass, Dan Boyd, is going to hit you with a question. Andy, you're up first. What are you looking at this week.
Andy Cross: Dan, I'm going with Nike. The stocks at 98 is down 18% year-to-date, $150 billion in market cap. It has a lovely balance sheet, almost $11 billion in cash versus about nine billion in debt. The stock really is a struggle as you're thinking about all the challenges that consumers are having. We talked about the retail challenges. The stock has fallen almost everyday for the past two weeks, a trend I don't think it's seen in a long time. Concerns over slowing consumer growth. The direct-to-consumer strategy that they really want to push toward more than 60% of sales versus about 44 now, maybe that's not having as much success as they originally thought. China's about 14% of sales. Their gross and their operating margins have fallen by more than 200 basis points, so a lot of challenges that Nike is facing. But when you think about leading brands, you think about very solid business, you think about global opportunities. Digital sales now make up more than a quarter of total sales. Nike Direct, I mentioned how important that is for them as they are bypassing some retailers. Price to earnings about 30 times trailing, less than 25 times forward sales. Really one of the best companies in the retail space, one of the best brands, and I think Nike could be a buying opportunity here.
Dylan Lewis: Dan, a question about the Greek goddess of Victory.
Dan Boyd: Nike, a little-known company, Nike, of course. Would you say that it's in its value play era right now?
Andy Cross: It's moving in that direction with the price. I wouldn't say it's quite there yet, but definitely one of those growth at a reasonable price levels because, Dan, the year is not going to be great for Nike, but I think over the next 2-3 years you're going to see it rebound.
Dylan Lewis: Jason, what's on your radar this week?
Jason Moser: Woof, woof. Chewy earnings are out on Wednesday, ticker CHWY. Just to look back at last quarter, this is a business they benefited clearly over the last several years for obvious reasons. Revenue last quarter, $2.8 billion, was up almost 15% with net sales per active customer, up 14.8% as well. Margins maintaining their composure there. I think a lot of that just has to do with the fact that this is such a digital-centric business. It is something that, as they grow, they should continue to be able to scale that. One of the more attractive parts of business is the Autoship. You just set it and forget it. As a guy with three dogs and a cat at home, that Autoship is a lifesaver because that stuff just shows up on my front porch as if out of nowhere every couple of weeks. Autoship sales grew 18.6% representing 75% of sales for the quarter, so I think that's something they'll continue to benefit from. They ended the quarter with 20.4 million active customers, and that was actually down incrementally from a year ago. I think that really is something to keep an eye on with this business. The growth in active customers, it's worth remembering they ended 2019 with 13-1/2 million actives, so they really brought a lot in over the last several years. I'm not understanding why. I wonder how far that can go past this 20.4 that they reported last quarter? Dan, you're a cat man Any question about Chewy.
Dan Boyd: Jason, you only have three dogs? Because when you recorded at home, it sounds like you've got about 100.
Jason Moser: They're very loud dogs. They're just three, but they are very loud.
Dylan Lewis: Dan, which company is going on your watch list?
Dan Boyd: I'd like a big brand with tempting valuation, so I'm going to go with Nike.
Dylan Lewis: Put that on the board. Andy Cross, Jason Moser, guys, thanks for being here.
Andy Cross: Thanks, Dylan.
Dylan Lewis: That's going to do it for this week's Motley Fool Money Radio Show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Andy Cross has positions in Alphabet, Amazon.com, Autodesk, Datadog, Meta Platforms, Microsoft, Nvidia, PayPal, Target, Williams-Sonoma, and Workday. Dan Boyd has positions in Amazon.com and Autodesk. Dylan Lewis has positions in Datadog. Jason Moser has positions in Alphabet, Amazon.com, Autodesk, Chewy, Nike, and PayPal. Tim Beyers has positions in Alphabet, Amazon.com, Chewy, and Datadog. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Autodesk, Chewy, Datadog, Intuit, Meta Platforms, Microsoft, Nike, Nvidia, Oracle, PayPal, Target, Ulta Beauty, Williams-Sonoma, and Workday. The Motley Fool recommends Foot Locker and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In this podcast, Motley Fool analysts Andy Cross and Jason Moser and host Dylan Lewis discuss: The epic hype around Nvidia's earnings release, and how AI is playing into the ambitions for other companies in tech like Workday. But you also look and think, this is a business that's come off some recent challenges, one that, long ago, where crypto was supposed to be the big tailwind taking this thing, and all of a sudden, that just disappeared, so I would just encourage investors to keep their heads about them in this case. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Autodesk, Chewy, Datadog, Intuit, Meta Platforms, Microsoft, Nike, Nvidia, Oracle, PayPal, Target, Ulta Beauty, Williams-Sonoma, and Workday.
|
Andy Cross: Workday is actually a really interesting company to talk about not just because of what they are serving in the human resource, in the financial area, software provider to help companies make sense of their HR financial operations, but also, like you said, in the AI. Andy Cross has positions in Alphabet, Amazon.com, Autodesk, Datadog, Meta Platforms, Microsoft, Nvidia, PayPal, Target, Williams-Sonoma, and Workday. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Autodesk, Chewy, Datadog, Intuit, Meta Platforms, Microsoft, Nike, Nvidia, Oracle, PayPal, Target, Ulta Beauty, Williams-Sonoma, and Workday.
|
In this podcast, Motley Fool analysts Andy Cross and Jason Moser and host Dylan Lewis discuss: The epic hype around Nvidia's earnings release, and how AI is playing into the ambitions for other companies in tech like Workday. Dylan Lewis: Sticking with retail, shares of Williams-Sonoma up 11% after earnings this week, revenue and earnings down year-over-year, but the market seemed to really like the margin picture that the company was putting together, Jason. Last week, Motley Fool analyst Tim Buyers caught up with Olivier Pomel, CEO of Datadog, to talk through the company's recent results, the promising signs he's seeing in customer spend, and why he thinks his company still has a 10x opportunity in front of.
|
In this podcast, Motley Fool analysts Andy Cross and Jason Moser and host Dylan Lewis discuss: The epic hype around Nvidia's earnings release, and how AI is playing into the ambitions for other companies in tech like Workday. Dylan Lewis: Sticking with retail, shares of Williams-Sonoma up 11% after earnings this week, revenue and earnings down year-over-year, but the market seemed to really like the margin picture that the company was putting together, Jason. Last week, Motley Fool analyst Tim Buyers caught up with Olivier Pomel, CEO of Datadog, to talk through the company's recent results, the promising signs he's seeing in customer spend, and why he thinks his company still has a 10x opportunity in front of.
|
d20ac8aa-1a1c-49a5-8310-71bbf3bb4593
|
718094.0
|
2023-08-30 00:00:00 UTC
|
What Might Nvidia's Future Look Like?
|
DDOG
|
https://www.nasdaq.com/articles/what-might-nvidias-future-look-like
|
nan
|
nan
|
In this podcast, Motley Fool analyst Tim Beyers and host Deidre Woollard discuss:
Nvidia's strong quarter and the cyclicality of chip demand.
Why Nvidia isn't the only game in town for artificial intelligence (AI) chips.
How Snowflake's data warehouse solutions might grow over time.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 21, 2023
This video was recorded on August 24, 2023
Deidre Woollard: Nvidia's stratospheric run isn't done yet. Motley Fool money starts now. Welcome to Motley Fool Money. I'm Deidre Woollard here with Motley Fool analyst Tim Beyers. How are you doing today, Tim?
Tim Beyers: Fully caffeinated. Ready to go Deidre.
Deidre Woollard: Well, I think you have to be fully caffeinated because we've got a little rocket ship thing happening with Nvidia. I was one of those weirdos last night, like wait till like 04:00, 4:00 or 5:00, refreshing the Investor Relations page to see what happened. I think I was not disappointed. Revenue up 101% year over year. Data center, sales growth, just crazy. Gross margin was up 26.6 points. This is so good it makes me nervous. Tim, should I be nervous?
Tim Beyers: No, I don't think you should be nervous. But I will say that the market seems to either have priced in most of the growth we're already seeing, or there's just general unsettledness around the market, and so the stock isn't rallying the way you would normally expect it. As we're recording this, Deidre, Nvidia is up only about 3.5%. For results like this, you would expect, maybe even three months ago we would have seen like a 20% or even 30% move. But we're not seeing that. The market's either priced and a lot of the growth we're seeing, or there's just some general unsettledness. But overall, you really can't do much better than this. The data center business, as you pointed out, this is primarily where Nvidia is getting its growth from. Revenue in the data center business was up 171% from a year ago. It was up 141% sequentially, that is bananas. The second-quarter revenue from gaming at $2.49 billion. Again, these two primarily account for 90 plus percent of all the revenue that Nvidia generates. It was up 11% sequentially, 22% year over year. Primarily, Deidre, almost all of this growth is coming from the idea that the world needs generative AI, and Nvidia is going to provide that generative AI. In this latest quarter, boy, did they provide quite a lot of it.
Deidre Woollard: But is there a concern that they're getting over their skis on how much of it they're providing? Or is it just that we're going to see demand coming from places that maybe we hadn't even considered before?
Tim Beyers: Well, I would say it is likely they will get over their skis at some point because it's very hard to, absolutely, particularly in this business, where hardware orders come in and you take a while to build out the inventory to meet that demand. If you're pre-building inventory and then suddenly demand slackens, which does happen in this business, you see things like inventory write-downs, you see sharp reductions in margins, things like that. That's happened to Nvidia before. It could very easily happen again. Nobody knows exactly when that is going to happen. For the moment, it does appear that demand is going to continue at a very brisk pace for quite some time. What we're seeing is that, to the point you just made, it may be from unusual areas of the market. But overall, there's just such an insatiable appetite for feeding things like large language models, and we should be, without getting too far down a tech rabbit hole here, Deidre. But large language models are hungry. You can think of them as the Cookie Monster of data center workloads. They just want more. Usually, it's for things like memory, very high throughput processing equipment where there's tons of memory attached to it. I remember on one show for This Week in Tech with Tim White, and he was talking about how he had loaded a local large language model onto one of his machines, and just the amount of memory it was taking, just the heat that it was causing inside of his machine is like one large language model almost forcing a meltdown of a software developer's machine and an experienced software at that in Tim. These things are very hungry. Because they are so hungry, we can expect demand to continue at pace for quite some time. We just don't know when the tipping point comes. The tipping point is when we start thinking about, we've done all kinds of training, we've been consuming just data set after data set. At what point do we start sharpening our focus to maybe smaller sets of data or different opportunities. The volume is not so vast. When that tipping point comes, Deidre, that's when you do see the risk of Nvidia getting over its skis.
Deidre Woollard: I think it's interesting too, because you think about the total addressable market also seems to be rippling out though as well.
Tim Beyers: I think what we're seeing is that there is a general belief. I think this is partially naive, but I'll say it anyway. That large language models are the key to unlocking big value in a lot of different industries. I think that's partially naive because a large language model in and of itself really doesn't do anything. If you feed a large language model, a lot of data, the value that you get back is really going to be, in some ways, equivalent to just how good that large language model infers useful conclusions. As we know, we've seen a lot of instances where large language models, ChatGPT being chief among them, decide to hallucinate some things. Those imperfections in inference are going to continue to be something that we contend with. There will be probably a quite a lot of work out about how to make data sets smarter. But in the meantime, we are going to just chew through a whole bunch of data and then decide later where we get the greatest value from chewing through data. As we start to winnow that down and figure out where the greatest value is created, then demand will start to slacken. But I would not be surprised if over the next year, demand continues at a very brisk pace. A triple-digit growth rates? I'm not so sure. But for a while, yes, I can see it, Deidre.
Deidre Woollard: It's interesting because I think there is what you pointed out there. There's a gap between excitement and utility. Right now we're in the excitement phase. We're going to get to the utility phase eventually.
Tim Beyers: When we get there, demand might fall off a cliff. Let's be clear. But it's more like figuring out where to put dollars to work most effectively. Because you're exactly right, we're in this very hype driven phase. We don't know where we're going to get the most value for the dollar committed. Right now is we are just committing dollars. We need more cookie. That's what we need. Honestly, I swear large language models are like software versions of the Cookie Monster. With all apologies to Sesame Street, because I love Sesame Street.
Deidre Woollard: Who doesn't love the Cookie Monster? Well, you know, it's interesting that the market hasn't gone crazy over this, because last quarter, they went crazy over the guidance. This quarter, Nvidia came through with forecast of $16 billion in revenue for the next quarter, even bigger. Why did the market not respond? Is it just that this quarter is a little weird about guidance? Because that's what it feels like to me.
Tim Beyers: No. I think the expectations are baked in. In my opinion, you'd see the stock moving even with the market down today as we're recording this. I think you would still see Nvidia moving a lot more if the expectations had been more muted coming into this quarter, but I think the expectations were absolutely enormous. There is just isn't a lot of institutional money that is piling on. Instead, what the action suggests is that there are certainly some institutions that are buying, but there's probably some institutions too that are taking some profits and saying, wow, this is amazing. I know that this is an incredible growth story here, but I've got some big profits on this. How about I take some right here because there isn't such an overwhelming belief, or maybe there is, but we're not seeing it in the stock price action right now at overwhelming belief that growth will continue at this pace for an extended period of time. I think we would have seen a much more bullish reaction if this really shocked people, and they left convinced that the growth story is much longer and much more durable than expected. I think we're still feeling this out and wondering just how durable it can be. To be clear, some of that is justified. We have been here before with Nvidia. We're not that far removed from the crypto days when everybody needed an Nvidia GPU to mine crypto. Aren't you mining crypto? Why aren't you mining crypto? That was a big deal. Then that demand went away, and it really did leave Nvidia longing for growth that had gone missing. There may be some people who remember those days and are being cautious. We don't yet know what we don't know about the growth story here. But I would say it looks positive. It just doesn't feel like the market has decided that, this is an unrelenting growth story and this is going to go on for years.
Deidre Woollard: You make such a good point about the crypto and it makes me think about the CEO, Jensen Huang. I listened to those calls during the crypto era, and he always generates this cool confidence.
Deidre Woollard: He's so believable and there is this quality to him that makes me want to trust him. He's never super super hype, but he's very confident. He's sounds now the same way he did then. He's talked about generational shifts and this is just the beginning. What do you feel about the way that he presents these types of opportunities?
Tim Beyers: I think he's right in that there is the potential for a generational shift here. But if there is a generational shift, we're pretty early in the shift. Treat all predictions with a giant cautionary sign, above them blaring and at least yellow lights. Proceed with some amount of caution, but also proceed with some optimism here because there is reason to believe that AI demand will continue for some time. I think that demand will sharpen and Nvidia will not be the only beneficiary here. I do think there are other ways to look at this, like will they be the only AI company where we'll be only be doing generative AI compute with GPUs and there's no other option for doing that. I don't think so. What you really need if you're talking about generative AI compute, you're talking about machines that can process in parallel at very high rates, lots of throughput. You're going to need lots of memory. It's not going to be one silver bullet that solves it. If it's a generational shift, Deidre, that means it's an industrywide shift that Nvidia will participate in and maybe even lead, but they will not be the only ones. What does that mean for companies like AMD and Intel? It's way too early to tell. I would put more money on AMD than I would on Intel, only because I think Intel is a little bit earlier in its transition to a company that's also building out foundries as well as updating its roadmap of data center processors whereas AMD is not anchored with that.
They are very much building highly advanced, very fast datacenter chip sets, and they've been doing it at scale for quite some time now and they have integrated their Xilinx acquisition from a few years ago, and figuring out how to take the core AMD chipset, put a field programmable gate array with that and that essentially all that means Deidre is that those chips can be purpose built. They can be designed straight and programed straight into the silicon to do something very, very specific, which makes them super useful for datacenter compute. Sure, you could see real tailwinds here for Nvidia. But are they the only ones? No, not by a long shot. You could see AMD profiting from this as well. We just don't know when the spend starts to sharpen. But I think if we assume that this is going to go on forever, the spending at the present rates, then I think we're deluding ourselves. It will sharpen at some point, maybe 12-24 months from now. But I'm not going to get into the predictions game here. I would just say, if I am holding AMD shares and I am responsible for a portfolio that is holding AMD shares, I'm not looking to sell right now, but I am looking at how the market treats that position. If it becomes just irrationally priced, as if growth will go forever, then I might have to take some off the table, but I'm not ready to do that yet.
Deidre Woollard: With Nvidia having a bit of the jump ahead, is some of the partnerships that it's already building and does that create any moat against those other competitors?
Tim Beyers: Is it a moat? It certainly provides some protection. Sure, the ecosystem around Nvidia is pretty interesting. They also have lots of software that is highly useful. The software that goes with their AI systems is particularly useful and that does give them a bit of an advantage. They also have partnerships with lots of different big players. Of course, they want Nvidia GPUs and systems in the large public clouds or partnered like VMware is a recent partner here and they want you to be able to maybe rent out or get access to a virtualized CloudFormation powered instance that is backed by a set of or instead of Nvidia systems or processors and you can rent that out and that is very efficient. That partnership makes some sense that you could go get access to the compute power you want on the terms that you want it. They want to do those deals, I'm certain, with all of the major public clouds as well. Nvidia is in the process of seeding the market and trying to become the standard for generative AI compute, at a moment when the industry has a real hunger for generative AI compute. In some ways, yes, those ecosystem partners give them a lead in developing that market position of being we are the go-to. Look at all of our partnerships, we are where you go when you want generative AI compute. Certainly there's something to that, but they won't be the only ones.
Deidre Woollard: Make sense. I want to pivot to Snowflake because they reported yesterday afternoon as well, getting eclipsed a bit by the monster that is Nvidia but they had a really solid quarter, solid results. What Snowflake does, as I understand it and you can correct me, but they're provider of data warehouse solutions and so they have their own role in this AI space because as you talked about Cookie Monster, you've got all this data to wrangle. But they had 37% year-over-year growth, strong remaining performance obligation. They're clearly connecting with customers. What should we know about Snowflake?
Tim Beyers: They had a very good quarter, but it's certainly not as blowout of a quarter as I would say Nvidia had. It was much more moderated, and the stock is down a little bit because the market has sort of given back some gains today. That's not too surprising and actually that's completely fine, but overall product revenue up 37%. But I'll tell you that things that really stood out to me, Deidre than I thought were super-important. The first is that this is a company that's defined by getting customers to increase their consumption and their reliance on Snowflake over time for storing, analyzing, processing, and using data. So one way to think about what Snowflake does is a very advanced data warehouse. A data warehouse is where you put information, and it's very well organized. Think of a physical warehouse and everything is marked and categorized, and you know exactly where it is on the exact right shelf, and all that thing that's a data warehouse. Very well orchestrated. Snowflake has this and it's in the cloud. They have been very successful at convincing large companies to say go with us, we are independent. We'll let you operate in any cloud that you want and store your data here, and we'll let you do things with the data right inside your Snowflake environment. You don't have to export it anywhere, which leads to more usage of the Snowflake platform, and we have seen that really compound growth inside the Snowflake platform.
As of this latest quarter 402 customers spending $1 million or more annually. That was up from 246 over the same quarter last year. That's up 63%, Deidre. That is what I want to see. When you have those very large customers, growing at that rate far faster than overall revenue, meanwhile, the net retention rate is 142%, that's down from where it's been. It's been in the 170s, but that's still massive. That's 42% more than these existing customers are spending on Snowflake year over year. And they've been doing this for a while now, like really compounding their spending. The thesis is they're going to get more of those really large customers, and so to see that is highly encouraging. Their overall customer growth was up 25%, like I said, the 142% net retention rate. Then a couple of other quick things, marketplace listings, which is Snowflake customers who have data that they are making available to the market through Snowflake, those listings were up to 2,149. That was up 39% year over year. The Snowflake platform is allowing customers who have data to do more with it. That is also a very good sign, and one more, 26% of customers now have at least one stable edge and a stable edge is when two Snowflake environments come together and there's data-sharing in-between those two. You think of them as an edge and another edge and they come together, and they share data and there's no integration that has to happen throughout the transformation, nothing like that is just two Snowflake environments cooperating.
When we see more Snowflake customers cooperating, working together, it makes the entire platform more valuable. Seeing these performance indicators, Deidre, gives me a lot of hope that we're going to see high growth for a much longer period of time. It's a little bit of the opposite of Nvidia. Nvidia, I think is going to be really high-growth for a period of time. Then there's going to come a point where that growth is probably going to go off a cliff, and really slow down significantly because the demand curve just drops off. We've seen that before, it wouldn't surprise me if that happened again. With Snowflake as they build these relationships, more data being used by more customers, and more Snowflake environments operating together, more stable edges, more marketplace listings, all of this type of stuff, more consumption at the highest possible levels. That convinces me that Snowflake can grow at a very high rate for a much longer period of time than the market expects. If you could visualize Nvidia just climbing like a roller coaster and then dropping off. Not because that's bad, it's just because you would think that's natural. It's a cyclical business.
Deidre Woollard: Yeah.
Tim Beyers: For Snowflake, I would say slow and steady, but a pretty high growth rate up and to the right and a slowing and maybe even slightly increasing or maybe slightly decreasing curve, but very high growth, and that line goes out much further than we might even expect.
Deidre Woollard: Interesting. And it's interesting seeing these results. We're still in this, what they call the elongated sales cycle.
Tim Beyers: Sure.
Deidre Woollard: Where their customers maybe aren't making those sales decisions as fast as they used to. As as that changes because everything always changes, is that when Snowflake starts growing again, because it seems like these two companies, they have a connection, but maybe the sales demand or the sales cycle is a little bit different.
Tim Beyers: It's dis-aggregated. It's going to be a little further out for Snowflake. In this part of the market, which will probably call enterprise software or enterprise cloud spend, there are customers that are deciding how much do they want to spend and where do they want to spend it, and so they're optimizing what are the tools where they get the biggest bang for their buck. They're slowing some spending on different tools. We saw this for example, with Datadog. We're seeing it a little bit with Snowflake and so the growth is slowing a little bit, but remember this is still up 37% year over year. That is heady growth. May not be triple-digit anymore, but that is still very heady growth. There's a bit of optimization happening right now where that is not happening at all for Nvidia. But there will come a point, Deidre, where the reverse becomes true. Where we have had a just a flood of spending to feed these large language models and then we get some optimization or like, OK, how much hardware do we really need? That part of the market gets optimized. Whereas then at that point was Snowflake, like OK, we've optimized things. Now, what are we really going to do? With Snowflake, and then you see maybe a little bit of reacceleration. Let's start to get too crazy because again, 37% growth is really high-growth, even if it doesn't reaccelerate, if it stays relatively steady for a long period of time, that is a really good outcome for investors, Deidre.
Deidre Woollard: Yeah, absolutely. I got to wind us up on us a silly question, which is, so Snowflake, they want to get their leadership really excited about the DataCloud. They're doing this thing that I think is interesting. They've got this DataCloud World Tour. It sounds like a concert, 26 cities, three regions. What is this? Is this just to get people excited about Snowflake? I thought it was an interesting marketing spin.
Tim Beyers: Yeah, I think it is. We've seen this before. It's probably a little too high peak, but also when you go on these tours and you are meeting customers where they are, that can be a very good thing. Like essentially it's a giant rotating sales conference. You're just bringing customers in and talking them through what their workloads might be, what their needs are, and trying to get face-time with them. I don't have a big problem with it. It does feel like unnecessarily rock and roll. It feels a little bit strange and it feels like the 80 year olds are getting out on Toric and the bands back together. It feels a little bit like that. But honestly, it is getting in front of customers that really does matter. I don't have a big problem with it, [MUSIC] but I do see how it feels like a little, wow, OK, this isn't, you're not really rock and roll. We know who you are. We know you sell data warehousing software. Let's just calm down.
Deidre Woollard: It is not Taylor Swift.
Tim Beyers: It is not. This is not the Aerostar.
Deidre Woollard: Nope. Thank you for your time today Tim. Great to see you.
Tim Beyers: Thanks, Deidre.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow
Deidre Woollard has positions in Nvidia. Tim Beyers has positions in Datadog and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Datadog, Nvidia, and Snowflake. The Motley Fool recommends Intel and VMware and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In this podcast, Motley Fool analyst Tim Beyers and host Deidre Woollard discuss: Nvidia's strong quarter and the cyclicality of chip demand. Tim Beyers: Well, I would say it is likely they will get over their skis at some point because it's very hard to, absolutely, particularly in this business, where hardware orders come in and you take a while to build out the inventory to meet that demand. Let's start to get too crazy because again, 37% growth is really high-growth, even if it doesn't reaccelerate, if it stays relatively steady for a long period of time, that is a really good outcome for investors, Deidre.
|
In this podcast, Motley Fool analyst Tim Beyers and host Deidre Woollard discuss: Nvidia's strong quarter and the cyclicality of chip demand. See the 10 stocks *Stock Advisor returns as of August 21, 2023 This video was recorded on August 24, 2023 Deidre Woollard: Nvidia's stratospheric run isn't done yet. The Motley Fool recommends Intel and VMware and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
|
In this podcast, Motley Fool analyst Tim Beyers and host Deidre Woollard discuss: Nvidia's strong quarter and the cyclicality of chip demand. Then a couple of other quick things, marketplace listings, which is Snowflake customers who have data that they are making available to the market through Snowflake, those listings were up to 2,149. Tim Beyers: For Snowflake, I would say slow and steady, but a pretty high growth rate up and to the right and a slowing and maybe even slightly increasing or maybe slightly decreasing curve, but very high growth, and that line goes out much further than we might even expect.
|
In this podcast, Motley Fool analyst Tim Beyers and host Deidre Woollard discuss: Nvidia's strong quarter and the cyclicality of chip demand. Deidre Woollard: Who doesn't love the Cookie Monster? Whereas then at that point was Snowflake, like OK, we've optimized things.
|
22378c54-b9c1-477e-8669-680b7ec46e7c
|
718095.0
|
2023-08-28 00:00:00 UTC
|
Top Performing ETFs: Metals, Tech Lead Top ETFs
|
DDOG
|
https://www.nasdaq.com/articles/top-performing-etfs%3A-metals-tech-lead-top-etfs
|
nan
|
nan
|
Not all that glitters is gold, but in 2023, certain parts of tech have come close. At the same time, commodity metals themselves have started to build a hot streak based on returns. According to data from Logicly, the top ETFs of the last week focused on metals from silver to gold to uranium. Digging into those returns can help guide investors and advisors regarding which trends are driving the markets’ thinking.
A few firms took multiple slots in the top ETFs of the last week per Logicly. WisdomTree, Global X, iShares, Sprott, and YieldMax all saw two ETFs meet that top twelve ranking. For WisdomTree, that not only includes the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN). It also includes, interestingly, the WisdomTree Cybersecurity Fund (WCBR). WCBR tracks an index of firms in the world of cybersecurity, holding names like Datadog (DDOG) up 27.4% YTD.
See more: “Q2 Earnings Review: Punting to the Fall”
Sprott, a firm which focuses on metals, saw its Sprott Junior Uranium Miners ETF (URNJ) and Uranium Miners ETF (URNM) return 8.2% and 5.9% respectively. A third ETF, the Global X Uranium ETF (URA), also focused on the critical heavy metal. That uranium interest may owe to ongoing, global interest in nuclear energy as both a clean alternative to fossil fuels and in Europe as a defensive hedge against overreliance on Russian methane gas.
Silver also did well in the top ETFs of the week. The iShares Silver Trust (SLV) returned 5.6% over the last week. The abrdn Physical Silver Shares ETF (SIVR) returned 6.4%, meanwhile. So what is driving interest in gold and silver? Some market watchers attribute fallout from Fed Chair Jerome Powell’s speech at in Jackson Hole, Wyoming as one factor. Markets are nervous about continued punishing high rates from the central bank, perhaps pushing interest in metals as a hedge.
[caption id="attachment_533814" align="aligncenter" width="643"] Per LOGICLY, silver, gold, uranium, and even some tech strategies find their place in the top ETFs of the week.[/caption]
Visualizations and data provided by LOGICLY, which is a wholly owned subsidiary of VettaFi.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
WCBR tracks an index of firms in the world of cybersecurity, holding names like Datadog (DDOG) up 27.4% YTD. Some market watchers attribute fallout from Fed Chair Jerome Powell’s speech at in Jackson Hole, Wyoming as one factor. Markets are nervous about continued punishing high rates from the central bank, perhaps pushing interest in metals as a hedge.
|
WCBR tracks an index of firms in the world of cybersecurity, holding names like Datadog (DDOG) up 27.4% YTD. According to data from Logicly, the top ETFs of the last week focused on metals from silver to gold to uranium. It also includes, interestingly, the WisdomTree Cybersecurity Fund (WCBR).
|
WCBR tracks an index of firms in the world of cybersecurity, holding names like Datadog (DDOG) up 27.4% YTD. According to data from Logicly, the top ETFs of the last week focused on metals from silver to gold to uranium. See more: “Q2 Earnings Review: Punting to the Fall” Sprott, a firm which focuses on metals, saw its Sprott Junior Uranium Miners ETF (URNJ) and Uranium Miners ETF (URNM) return 8.2% and 5.9% respectively.
|
WCBR tracks an index of firms in the world of cybersecurity, holding names like Datadog (DDOG) up 27.4% YTD. According to data from Logicly, the top ETFs of the last week focused on metals from silver to gold to uranium. Silver also did well in the top ETFs of the week.
|
4814ce3d-4099-42fb-82b6-b28250108969
|
718096.0
|
2023-08-27 00:00:00 UTC
|
Better Growth Stock: Snowflake vs. Datadog
|
DDOG
|
https://www.nasdaq.com/articles/better-growth-stock%3A-snowflake-vs.-datadog
|
nan
|
nan
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) are both hypergrowth cloud companies that simplify complicated tasks. Snowflake pulls all of a company's data from different computing platforms into a centralized data warehouse where it can be easily accessed by third-party applications. Datadog collects real-time diagnostic data across a company's entire software infrastructure and then aggregates that information onto unified dashboards to help IT professionals spot potential problems.
I previously compared these two companies near the apex of the growth stock rally in late 2021 and concluded that Datadog's milder slowdown, higher adjusted profits, and lower valuation made it a safer bet than Snowflake. Unfortunately, neither stock survived the subsequent meltdown in hypergrowth stocks as the macro headwinds intensified and interest rates rose. After I made that call, Datadog's stock declined 46%, and Snowflake's stock dropped 56%.
Image source: Getty Images.
So, in hindsight, the right call would have been to avoid both stocks until their valuations cooled off. But now that both of these hypergrowth stocks have been crushed, is it time to buy Snowflake or Datadog as a turnaround play?
Snowflake still faces near-term headwinds
Snowflake's product revenue (which accounts for most of its top line) surged 120% in fiscal 2021 (which ended in Jan. 2021) and soared another 106% in fiscal 2022. Its net revenue retention rate, which gauges its year-over-year revenue growth per customer, also rose improved from 168% in fiscal 2021 to 178% in fiscal 2022.
Those explosive growth rates drove Snowflake's stock from its IPO price of $120 on Sept. 16, 2020, to its all-time high of $401.89 on Nov. 16, 2021. The bulls also didn't seem to mind that it was deeply unprofitable by both generally accepted accounting principles (GAAP) measures and non-GAAP measures.
But Snowflake's investors faced a reality check in fiscal 2023 when its product revenue rose 70% as its net revenue retention rate slipped to 158%. It expects its product revenue to only rise 34% in fiscal 2024.
That slowdown was caused by the macro headwinds, which forced many companies to rein in their software spending. As a result, its bubbly valuations popped, and its stock dropped back to about $150. Nevertheless, Snowflake still seems on track to achieve its long-term goal of generating $10 billion in product revenue in fiscal 2029. Reaching that target would require it to grow its product revenue at a compound annual growth rate (CAGR) of at least 31% from fiscal 2024 to fiscal 2029.
Snowflake also turned profitable on a non-GAAP basis in fiscal 2023 as its adjusted gross and operating margins expanded. And unlike many other tech companies, it plans to significantly expand its workforce this year instead of executing mass layoffs to cut costs. Analysts expect its revenue and non-GAAP earnings per share (EPS) to grow 34% and 148%, respectively, in fiscal 2024.
But Datadog faces a deeper slowdown
Datadog's revenue surged 83% in 2019, 66% in 2020, and 70% in 2021. Those rapid growth rates boosted its stock from its IPO price of $27 on Sept. 19, 2019, to a record high of $196.56 on Nov. 9, 2021. But today, it's worth about $90.
Like Snowflake, Datadog lost its luster as its growth cooled off. Its revenue rose 63% in 2022, but it expects just 22% to 23% growth in 2023. Like most of its peers, it blamed that slowdown on the macro headwinds for enterprise spending.
Datadog is also struggling to gain more high-value customers, which generate at least $100,000 in annual recurring revenue. That higher-value cohort only grew 24% year over year in the second quarter of 2023, compared to its 54% growth a year ago. It also still faces stiff competition from similar observability companies like Cisco's AppDynamics and New Relic.
As Datadog's growth decelerates, it's tightening up its spending to stabilize its margins. It hasn't announced any major layoffs, but it plans to "moderate" its hiring place this year. It's still unprofitable by GAAP measures, but its non-GAAP earnings more than doubled in 2022. It expects its non-GAAP EPS to rise 33% to 37% this year.
Datadog hasn't set any clear one-term goals like Snowflake, but analysts expect its revenue to grow at a slower CAGR of 26% from 2022 to 2025. Snowflake is expected to grow at a CAGR of 31% between fiscal 2023 and fiscal 2026.
The valuations and verdict
Snowflake and Datadog trade at 18 and 15 times this year's sales, respectively. Snowflake still looks slightly pricier than Datadog, but it's also growing faster, expanding more aggressively, and it's laid out clearer long-term targets. Those three core strengths should make it a more appealing growth play than Datadog for the foreseeable future.
Find out why Snowflake is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Snowflake is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of August 21, 2023
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Cisco Systems, Datadog, New Relic, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) are both hypergrowth cloud companies that simplify complicated tasks. Datadog collects real-time diagnostic data across a company's entire software infrastructure and then aggregates that information onto unified dashboards to help IT professionals spot potential problems. I previously compared these two companies near the apex of the growth stock rally in late 2021 and concluded that Datadog's milder slowdown, higher adjusted profits, and lower valuation made it a safer bet than Snowflake.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) are both hypergrowth cloud companies that simplify complicated tasks. After I made that call, Datadog's stock declined 46%, and Snowflake's stock dropped 56%. Snowflake still faces near-term headwinds Snowflake's product revenue (which accounts for most of its top line) surged 120% in fiscal 2021 (which ended in Jan. 2021) and soared another 106% in fiscal 2022.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) are both hypergrowth cloud companies that simplify complicated tasks. I previously compared these two companies near the apex of the growth stock rally in late 2021 and concluded that Datadog's milder slowdown, higher adjusted profits, and lower valuation made it a safer bet than Snowflake. After I made that call, Datadog's stock declined 46%, and Snowflake's stock dropped 56%.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) are both hypergrowth cloud companies that simplify complicated tasks. Unfortunately, neither stock survived the subsequent meltdown in hypergrowth stocks as the macro headwinds intensified and interest rates rose. But now that both of these hypergrowth stocks have been crushed, is it time to buy Snowflake or Datadog as a turnaround play?
|
01f4a09b-2486-4ee3-94ad-32536e706fcc
|
718097.0
|
2023-08-27 00:00:00 UTC
|
History Says a Bull Market Is Coming: 2 Superb Growth Stocks to Buy Now and Hold Through the Rally
|
DDOG
|
https://www.nasdaq.com/articles/history-says-a-bull-market-is-coming%3A-2-superb-growth-stocks-to-buy-now-and-hold-through
|
nan
|
nan
|
The S&P 500 is up by 16% year to date amid cooling inflation and stronger-than-expected economic growth. That leaves the broad-based index just 8% from a record high, which is the definitive threshold for a new bull market.
Whether the index hits that mark next week, next month, or next year, history makes one thing clear: The next U.S. bull market is coming. The S&P 500 has never failed to recoup its losses in the past, and every U.S. bear market has eventually been followed by a bull market. Investors have no reason to expect a different outcome this time.
The S&P 500 returned an average of 184% during the last 10 bull markets, and many stocks will soar during the next one. Investors should be able to catch a piece of that momentum by buying Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG).
1. Roku
Roku has carved out a strong position in streaming entertainment. It ranks as the most popular streaming platform in the U.S., Canada, and Mexico as measured by viewing time, and Roku products account for 50% of all streaming devices in North America. Its two closest competitors -- Samsung and Amazon -- hold a 34% market share between them. In short, the Roku brand carries weight with consumers.
Investors can attribute that brand authority to product differentiation. The Roku OS is the only operating system purpose-built for connected TV, and purpose-built products tend to provide better user experiences. Even so, Roku has struggled in the past year as companies have slashed their ad budgets in anticipation of challenging economic conditions. That headwind continued to suppress growth in the second quarter.
Revenue climbed 11% in Q2 to $847 million, a deceleration from 18% growth in the prior-year period. But the company still made progress on the bottom line as management prioritized efforts to cut its own spending. Roku reported a net loss of $0.76 per diluted share, an improvement from its loss of $0.82 per diluted share a year earlier.
Revenue growth should accelerate naturally as the ad industry recovers, but Roku is also working to make its platform more appealing to advertisers by boosting viewer engagement. For instance, the company is investing in content for The Roku Channel, its free ad-supported service, and those investments appear to be paying off. The Roku Channel ranked among the top five channels on the platform in the second quarter, and accounted for 1.1% of all streaming time in the U.S. in July. That puts it on par with Comcast's Peacock and ahead of Paramount Global's Paramount+.
With that in mind, BMO Capital Markets analyst Daniel Salmon says connected TV ad spending in the U.S. alone will grow at an annualized rate of 15% to $100 billion by 2030. Roku should be able to match that growth rate at a minimum, given its strong position in streaming media. That makes its current valuation of 3.5 times sales appear quite cheap, especially compared to its three-year average of 11.7. Investors should buy a small position in this growth stock today.
2. Datadog
Datadog provides observability and security software to development, operations, and security teams. Its platform collects data from every system and service to provide real-time visibility at every layer of the technology stack, which helps businesses keep their applications and infrastructure secure and functioning well.
Industry analysts have praised Datadog for its innovations across multiple observability verticals. IT consultancy Gartner recently recognized the company as a leader in application performance monitoring, and Forrester Research recognized its leadership in artificial intelligence for IT operations. Additionally, research company G2 ranks Datadog as a leader in log monitoring, network monitoring, and server monitoring.
Growth decelerated in the second quarter as businesses continued to scrutinize their spending decisions amid a complex economic environment, but Datadog still delivered a reasonably strong financial report. Its customer count increased 23% to 26,100, and its average customer spent in excess of 20% more year over year. In turn, revenue climbed by 25% to $509 million, and free cash flow soared by 135% to $141.7 million. Investors have good reason to believe that momentum will persist.
Datadog has innovated like clockwork throughout its history. After becoming the first software vendor to unify the three pillars of observability (metrics, traces, and logs) on a single platform in 2018, Datadog delved into user experience monitoring in 2019, incident management and cloud security in 2020, data privacy and database monitoring in 2021, compliance reporting and cloud cost management in 2022, and large language model monitoring in 2023. That rapid product development cadence should keep the company on the cutting edge of the observability industry.
Meanwhile, cloud migration and other digital transformations will continue to make corporate IT environments more complex, increasing the need for observability and security software. Management says that tailwind should drive its market opportunity to $62 billion by 2026, up from $41 billion in 2022.
On that note, the shares currently trade at 16 times sales, a bargain compared to their three-year average of about 36 times sales. Investors should feel comfortable buying a small position in this growth stock right now.
10 stocks we like better than Roku
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com and Roku. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Roku. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors should be able to catch a piece of that momentum by buying Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG). Revenue growth should accelerate naturally as the ad industry recovers, but Roku is also working to make its platform more appealing to advertisers by boosting viewer engagement. Its platform collects data from every system and service to provide real-time visibility at every layer of the technology stack, which helps businesses keep their applications and infrastructure secure and functioning well.
|
Investors should be able to catch a piece of that momentum by buying Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG). The Roku OS is the only operating system purpose-built for connected TV, and purpose-built products tend to provide better user experiences. Datadog Datadog provides observability and security software to development, operations, and security teams.
|
Investors should be able to catch a piece of that momentum by buying Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG). After becoming the first software vendor to unify the three pillars of observability (metrics, traces, and logs) on a single platform in 2018, Datadog delved into user experience monitoring in 2019, incident management and cloud security in 2020, data privacy and database monitoring in 2021, compliance reporting and cloud cost management in 2022, and large language model monitoring in 2023. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Roku.
|
Investors should be able to catch a piece of that momentum by buying Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG). The S&P 500 returned an average of 184% during the last 10 bull markets, and many stocks will soar during the next one. Datadog Datadog provides observability and security software to development, operations, and security teams.
|
64b1f586-6900-41a8-af06-f6b56d52c373
|
718098.0
|
2023-08-27 00:00:00 UTC
|
2 Red-Hot Growth Stocks to Buy in 2023 and Beyond
|
DDOG
|
https://www.nasdaq.com/articles/2-red-hot-growth-stocks-to-buy-in-2023-and-beyond-2
|
nan
|
nan
|
Uncertainty in the economy has not left growth stocks unscathed. Even though many of these stocks made a significant recovery in the first half of 2023, they sell well below their peaks from the previous bull market. Some have also fallen back again as enthusiasm from the first half of the year starts to subside.
Nonetheless, a few of these stocks continue to grow at rapid rates. As conditions improve, the current slowdown could give investors an opportunity to buy them at a discount while they await a recovery. To this end, stocks such as Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) show such potential.
Datadog
Datadog offers its clients a platform for monitoring applications, databases, servers, and other critical parts of an entity's IT infrastructure.
Its software has facilitated data transformation, allowing customers and employees to aggregate data to a dashboard, leading to an improved digital experience as IT personnel can identify issues more efficiently. Datadog continues improving in areas such as generative AI, security, developer experiences, and cost management.
Customers also continue to spend more on the platform -- 82% of Datadog's customers use two or more products, up from 79% in the year-ago quarter. Also, about 3,000 of its customers have an ARR of $100,000 or more as the number of high-value customers increased 24% over the last year.
That increased business boosted revenue in the first half of 2023. Revenue of $991 million rose 29% year over year. While this lags the 63% annual growth in 2022, the company continues to expand at a fast pace.
Still, rapid growth in operating expenses hit the bottom line. Consequently, the company reported a $28 million net loss in the first half of 2023, down from a $5 million profit in the year-ago period.
Also, the company forecasted $2.06 billion in revenue at the high end of its range for 2023. That 22% increase from 2022 levels means Datadog's top-line growth continues to slow.
But despite that pullback, the stock is up 25% year to date. And while its price-to-sales (P/S) ratio of 15.5 may seem elevated, the sales multiple is only slightly above multi-year lows. Datadog stock also sells at a discount of over 50% from its 2021 high.
Moreover, economic performance is cyclical, increasing the likelihood of a recovery in growth over time. That factor could make this an excellent time to add shares as investors wait for a recovery.
Snowflake
Snowflake provides a data cloud product that stands out for its interoperability and growing capabilities. It allows entities to store, protect, and monitor the use of their data, keeping it in a central repository.
Snowflake's platform provides an advantage over competing products from Amazon, Microsoft, and others in that it can fully integrate regardless of the infrastructure provider. It has also leveraged AI and machine learning. To this end, its Snowpark toolset allows for data transformation and manipulation, providing libraries customers can use for machine learning tasks.
With this growth, the company now claims more than 8,500 customers as of the end of the second quarter of fiscal 2024 (ended Jul. 31), rising 25% over the last year.
Such increases propelled revenue for the first half of the fiscal year to $1.3 billion, rising 41% year over year. That figure accounts for a net revenue retention rate of 142%, meaning existing customers increased spending on the platform 42% from the previous year.
Unfortunately for Snowflake, operating expense growth exceeded that of revenue. That caused net losses for the first six months of fiscal 2024 to increase to $453 million, versus $389 million in the prior-year period.
Furthermore, Snowflake expects fiscal 2024 product revenue (about 95% of total revenue) growth to slow to 34%. Such news has contributed to a flat performance for the cloud stock in 2023 with shares up just 5% so far this year.
But while that places its P/S ratio at 20, its sales multiple is still near an all-time low for Snowflake. Additionally, a flat stock performance coupled with massive revenue growth should push that valuation lower.
As investors look to profit from the data cloud, it should bode well for Snowflake stock as more companies look to protect and better utilize their data sets.
Find out why Snowflake is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Snowflake is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of August 21, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Datadog, Microsoft, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
To this end, stocks such as Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) show such potential. To this end, its Snowpark toolset allows for data transformation and manipulation, providing libraries customers can use for machine learning tasks. That figure accounts for a net revenue retention rate of 142%, meaning existing customers increased spending on the platform 42% from the previous year.
|
To this end, stocks such as Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) show such potential. Snowflake Snowflake provides a data cloud product that stands out for its interoperability and growing capabilities. Such increases propelled revenue for the first half of the fiscal year to $1.3 billion, rising 41% year over year.
|
To this end, stocks such as Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) show such potential. Such increases propelled revenue for the first half of the fiscal year to $1.3 billion, rising 41% year over year. Furthermore, Snowflake expects fiscal 2024 product revenue (about 95% of total revenue) growth to slow to 34%.
|
To this end, stocks such as Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) show such potential. Such increases propelled revenue for the first half of the fiscal year to $1.3 billion, rising 41% year over year. Furthermore, Snowflake expects fiscal 2024 product revenue (about 95% of total revenue) growth to slow to 34%.
|
1b231b5e-a0b1-49bd-8fbf-7f84c90042f6
|
718099.0
|
2023-08-23 00:00:00 UTC
|
DDOG Factor-Based Stock Analysis
|
DDOG
|
https://www.nasdaq.com/articles/ddog-factor-based-stock-analysis-1
|
nan
|
nan
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
|
Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
|
d52c0cb4-e070-4cd0-893d-adc39efae8be
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.