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718200.0
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2023-06-28 00:00:00 UTC
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Notable Wednesday Option Activity: DDOG, WYNN, CVNA
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DDOG
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-ddog-wynn-cvna
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nan
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nan
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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 23,352 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56% of DDOG's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $97 strike call option expiring June 30, 2023, with 1,815 contracts trading so far today, representing approximately 181,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange:
Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 12,867 contracts, representing approximately 1.3 million underlying shares or approximately 54.4% of WYNN's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $110 strike call option expiring June 30, 2023, with 2,363 contracts trading so far today, representing approximately 236,300 underlying shares of WYNN. Below is a chart showing WYNN's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Carvana Co (Symbol: CVNA) saw options trading volume of 206,574 contracts, representing approximately 20.7 million underlying shares or approximately 52.7% of CVNA's average daily trading volume over the past month, of 39.2 million shares. Especially high volume was seen for the $30 strike call option expiring June 30, 2023, with 10,903 contracts trading so far today, representing approximately 1.1 million underlying shares of CVNA. Below is a chart showing CVNA's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for DDOG options, WYNN options, or CVNA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Future Dividend Aristocrats
PHK Videos
MFC market cap 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 $97 strike call option expiring June 30, 2023, with 1,815 contracts trading so far today, representing approximately 181,500 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 23,352 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56% of DDOG's average daily trading volume over the past month, of 4.2 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 12,867 contracts, representing approximately 1.3 million underlying shares or approximately 54.4% of WYNN's average daily trading volume over the past month, of 2.4 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 23,352 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56% of DDOG's average daily trading volume over the past month, of 4.2 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 23,352 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 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 $97 strike highlighted in orange: Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 12,867 contracts, representing approximately 1.3 million underlying shares or approximately 54.4% of WYNN's average daily trading volume over the past month, of 2.4 million shares. That number works out to 56% of DDOG's average daily trading volume over the past month, of 4.2 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: Wynn Resorts Ltd (Symbol: WYNN) saw options trading volume of 12,867 contracts, representing approximately 1.3 million underlying shares or approximately 54.4% of WYNN's average daily trading volume over the past month, of 2.4 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 23,352 contracts has been traded thus far today, a contract volume which is representative of approximately 2.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56% of DDOG's average daily trading volume over the past month, of 4.2 million shares.
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bffe5d79-2350-443f-99a7-10fbaeb047ea
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718201.0
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2023-06-28 00:00:00 UTC
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Nasdaq 100 Movers: JD, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-jd-ddog
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nan
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nan
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In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Datadog registers a 36.2% gain.
And the worst performing Nasdaq 100 component thus far on the day is JD.com, trading down 3.6%. JD.com is lower by about 38.6% looking at the year to date performance.
Two other components making moves today are Regeneron Pharmaceuticals, trading down 2.8%, and Lucid Group, trading up 4.1% on the day.
VIDEO: Nasdaq 100 Movers: JD, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: JD, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. And the worst performing Nasdaq 100 component thus far on the day is JD.com, trading down 3.6%.
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VIDEO: Nasdaq 100 Movers: JD, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Datadog registers a 36.2% gain.
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VIDEO: Nasdaq 100 Movers: JD, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. And the worst performing Nasdaq 100 component thus far on the day is JD.com, trading down 3.6%.
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VIDEO: Nasdaq 100 Movers: JD, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Datadog registers a 36.2% gain.
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a250d4c1-e87b-47dc-8e28-98eaf595f680
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718202.0
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2023-06-28 00:00:00 UTC
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DDOG Factor-Based Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-factor-based-stock-analysis
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nan
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nan
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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.
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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).
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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).
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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.
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ff3f6c79-e17a-4e12-9957-851e253aa7db
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718203.0
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2023-06-25 00:00:00 UTC
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7 Growth Stocks to Buy With Explosive Upside Potential
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DDOG
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https://www.nasdaq.com/articles/7-growth-stocks-to-buy-with-explosive-upside-potential
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors find themselves in a landscape transformed by persistent inflation and a banking sector crisis that has rattled most publicly traded firms. However, amidst the chaos, a group of resilient contenders has emerged, representing the top growth stocks to buy.
Tech stocks that took a major beating last year hint at a vibrant resurgence. Meanwhile, previously thriving sectors, including energy stocks and regional banks, are up against significant challenges. As whispers of recession and financial instability permeate the market, a strategic migration towards high potential growth stocks is in full swing.
Specters of speculative excess from the retail trading bonanza in 2021 still linger, but the market has evolved, carving a unique path. As investors, it’s essential to eye growth stocks with upside potential, but let’s not forget the ever-changing dynamics of the market. With that said, let’s look at seven of the best high potential growth stocks to wager on at this time.
Datadog (DDOG)
Source: Tendo / Shutterstock
Datadog (NASDAQ:DDOG) commands a dominant position in the realm of cloud monitoring and security. Its robust platform has effectively simplified data surveillance and security, offering businesses a comprehensive solution.
Charting an impressive growth journey, Datadog’s revenue trajectory has been nothing short of extraordinary. What began as a modest $198 million in 2018 has catapulted to an astounding $1.7 billion in 2022. Year-over-year growth stands at a towering 50%, which dwarfs the sector median by more than 330%. Further sweetening the deal, forward revenue estimates suggest a promising 37% top-line growth.
As we look toward the horizon, analysts forecast acceleration in revenue growth for the next three years. Adding to this positive narrative, the firm is profitable non-GAAP, which makes it an incredibly attractive investment.
Unity Software (U)
Source: 3rdtimeluckystudio / Shutterstock
Unity Software (NYSE:U) is a juggernaut in the graphics engine domain, boasting a more than 50% market share. Over time, it has transitioned from a pure-play game developer to an innovator in video architecture, animation, and eCommerce, adding new layers to its ever-evolving growth story.
Notably, its financial resilience is underscored by average revenue growth of roughly 40% over the past five years. Moreover, analysts estimate the firm to continue growing over 32% ahead. Additionally, its recent transition to profitability indicates that the business stands on solid ground.
The recent Apple Vision Pro announcement has sparked a renewed wave of optimism in the stock. In a significant development, Unity’s shares traded in the green following news that it will be developing the gaming ecosystem for Apple’s new augmented reality product. While the exact market potential for this venture remains a mystery, the partnership could unlock considerable upside for the graphics engine titan.
Snowflake (SNOW)
Source: Khakimullin Aleksandr / Shutterstock
Leading cloud-based data platforms provider, Snowflake (NYSE:SNOW), has effectively ridden the wave of the tech stock rebound. With a 42% increase over the past 12 months, the company has been turning heads. The renewed optimism in the stock stems from the crucial connection between data and the burgeoning field of generative AI.
Last month, Snowflake reported its fiscal first-quarter results, surpassing analyst estimates on both revenue and earnings. However, the stock took a 16.5% hit the same day, as management’s sales guidance for the current quarter of between $620 million and $625 million fell shy of the analyst estimates by a fair margin.
Despite this short-term setback, analysts remain optimistic about Snowflake’s future, forecasting a forward annual revenue growth of 44% as the company inches toward profitability. Evidence of this potential is seen in the firm’s free cash flow from last quarter, which clocked in at nearly $300 million.
Qualcomm (QCOM)
Source: smshoot/ShutterStock.com
Qualcomm (NASDAQ:QCOM) has become a top manufacturer of semiconductors, software, and related services. The firm’s rise to fame came through developing key patents for 3G and 4G technologies, a strategic move that has paid rich dividends for its shareholders over time. Furthermore, Qualcomm’s foray into designing its own chip ecosystems has yielded profitable outcomes. It attracts an impressive 9/10 profitability and growth rating from GuruFocus.
The company has set its sights on the promising realm of artificial intelligence. The firm’s AI chips have demonstrated superior performance, particularly in power efficiency tests, signaling a bright future. The firm’s SVP of Product Management, Ziad Asghar, hails the generative AI opportunity as just amazing for Qualcomm.
QCOM stock presents an enticing blend of growth potential and blue-chip features offering a robust dividend yield of over 2.5% while trading at under four times forward sales estimates.
Trimble (TRMB)
Source: Shutterstock
Trimble (NASDAQ:TRMB) has positioned itself as a versatile tech giant, offering robust tools for land surveying, route optimization for shipping and trucking, and even agricultural process enhancement. Its technological prowess has allowed it to gain traction among discerning investors. According to GuruFocus, the company’s 3-year revenue growth ranked better than 53% of its peers in its niche.
The stock became popular when it became part of maverick stock-picker Cathie Wood’s Ark Space Exploration & Innovation ETF (NYSEARCA:ARKX). This recognition catapulted Trimble into the spotlight. Though it may have fallen out of favor with investors of late, its transition towards a recurring revenue model and integrating big data and AI processes could supercharge its long-term positioning. Moreover, its profitability metrics are firmly in the green, marked by 12.3% and 15% growth in net income and free cash flow margins over the past five years.
Endava (DAVA)
Source: Freedom365day / Shutterstock.com
Endava (NYSE:DAVA) has effectively carved a niche within the information technology outsourcing sphere. The firm offers specialized tech solutions to large enterprises on a contractual basis. Rather than embarking on the daunting task of building in-house teams for a myriad of tech requirements, companies can opt for Endava’s tailored solutions. With a balance of quality and cost-effectiveness, Endava is a go-to destination for companies seeking efficient tech solutions.
The company has been a growth juggernaut in its sector, delivering more than 32% revenue growth in the past five years. Moreover, it boasts a net income margin of roughly 9% over the same period. Additionally, its strong results have helped it build its massive cash flow base, which has grown from a modest 41 cents per share in 2014 to a whopping $2.31 per share last year. It continues to be in a hyper-growth mode while its stock trades at a 47% discount to its intrinsic value.
Dutch Bros (BROS)
Source: Shutterstock
With its innovative spin on the quintessential coffee shop idea, Dutch Bros (NYSE:BROS) continues to surge ahead of its competition. It is effectively capturing the affection of the Gen Z demographic with its agile locations and Instagram-worthy beverages. Its fresh approach and energetic clientele add a unique flavor to the competitive coffee market landscape.
The firm has been delivering solid growth numbers, marked by double-digit year-over-year revenue growth over the past several quarters. However, every success story encounters a few bumps in the road. Its recently released first-quarter results, while robust, fell slightly short of expectations. Though its revenues of $197.3 million in the first quarter represented a 30% YOY bump, it missed analyst estimates by a hefty $11.7 million. Nevertheless, such hiccups are commonplace for fledgling enterprises such as Dutch Bros racing toward their growth milestones. Adding a remarkable 45 new stores in the first quarter alone, the company forecasts around 30% revenue growth this year and the next.
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.
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The post 7 Growth Stocks to Buy With Explosive Upside Potential 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.
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Datadog (DDOG) Source: Tendo / Shutterstock Datadog (NASDAQ:DDOG) commands a dominant position in the realm of cloud monitoring and security. Despite this short-term setback, analysts remain optimistic about Snowflake’s future, forecasting a forward annual revenue growth of 44% as the company inches toward profitability. QCOM stock presents an enticing blend of growth potential and blue-chip features offering a robust dividend yield of over 2.5% while trading at under four times forward sales estimates.
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Datadog (DDOG) Source: Tendo / Shutterstock Datadog (NASDAQ:DDOG) commands a dominant position in the realm of cloud monitoring and security. Unity Software (U) Source: 3rdtimeluckystudio / Shutterstock Unity Software (NYSE:U) is a juggernaut in the graphics engine domain, boasting a more than 50% market share. Snowflake (SNOW) Source: Khakimullin Aleksandr / Shutterstock Leading cloud-based data platforms provider, Snowflake (NYSE:SNOW), has effectively ridden the wave of the tech stock rebound.
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Datadog (DDOG) Source: Tendo / Shutterstock Datadog (NASDAQ:DDOG) commands a dominant position in the realm of cloud monitoring and security. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors find themselves in a landscape transformed by persistent inflation and a banking sector crisis that has rattled most publicly traded firms. The company has been a growth juggernaut in its sector, delivering more than 32% revenue growth in the past five years.
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Datadog (DDOG) Source: Tendo / Shutterstock Datadog (NASDAQ:DDOG) commands a dominant position in the realm of cloud monitoring and security. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors find themselves in a landscape transformed by persistent inflation and a banking sector crisis that has rattled most publicly traded firms. Last month, Snowflake reported its fiscal first-quarter results, surpassing analyst estimates on both revenue and earnings.
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e373a501-09ac-410f-bec2-503895e7ca74
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718204.0
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2023-06-24 00:00:00 UTC
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DDOG Quantitative Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-quantitative-stock-analysis-0
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nan
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield 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.
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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).
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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).
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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.
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e5d75e46-b229-43be-b965-629632cc20bb
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718205.0
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2023-06-21 00:00:00 UTC
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Is Datadog (DDOG) a Buy as Wall Street Analysts Look Optimistic?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-ddog-a-buy-as-wall-street-analysts-look-optimistic-0
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nan
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nan
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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?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG).
Datadog currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 20 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 66.7% and 10% 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.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
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.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.
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.
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 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 $1.17.
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.
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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.
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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aeab37ed-a9bc-4a73-885e-1e064f3659b9
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718206.0
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2023-06-21 00:00:00 UTC
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A Bull Market Is Coming: 2 Artificial Intelligence (AI) Growth Stocks Down 41% and 51% to Buy Now
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DDOG
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-artificial-intelligence-ai-growth-stocks-down-41-and-51-to-buy
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nan
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nan
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Recession fears sent the S&P 500 (SNPINDEX: ^GSPC) tumbling into a bear market last year, and the benchmark index is still down 8%. But patient investors have nothing to fear from a recession. History says the economy will regain its momentum in time, and the S&P 500 will find its way back to bull market territory, buoyed by secular trends like artificial intelligence (AI).
Indeed, consultancy McKinsey estimates that AI could boost global economic output by $13 trillion by 2030, and Ark Invest estimates that AI software sales will increase at 42% annually during that time period. Many companies will benefit as AI becomes more prevalent, but investors should take a close look at Datadog (NASDAQ: DDOG) and Cognex (NASDAQ: CGNX) right now.
Shares of Datadog and Cognex are currently down 51% and 41% since 2020, respectively, but both businesses are bursting with potential. Here's why these growth stocks are worth buying today.
1. Datadog
Digital transformation helps enterprises stay relevant and better serve their customers, but it also makes IT environments more complex. Enterprises depend on an ever-growing number of software systems, and they are often spread across private data centers and public clouds. Keeping those systems performant and secure is critical.
Datadog provides observability and security software that gives clients real-time visibility across their IT infrastructure, helping them identify and resolve performance and security issues. Its platform integrates more than a dozen different software products and it features more than 600 turnkey integrations that simplify deployment. Its software also leans on artificial intelligence (AI) to automate anomaly detection, root cause analysis, and incident alerts, which ultimately helps development, operations, and security teams work more efficiently.
Datadog reported reasonable financial results in the first quarter, especially in the context of difficult economic environment. Its customer count climbed 29% and the average customer increased spend by more than 30%, evidencing the value created by its platform. In turn, revenue climbed 33% to $482 million and non-GAAP earnings rose 17% to $0.28 per diluted share.
Looking ahead, Datadog is well positioned to maintain or even accelerate its growth trajectory as economic conditions improve. Industry experts have recognized its leadership in several observability software verticals. For instance, consultancy Gartner says Datadog is a leader in application performance monitoring, Forrester Research says the company is a leader in AI for IT operations, and G2 says Datadog a leader in cloud infrastructure and server monitoring.
The company has also displayed a remarkable capacity for innovation throughout its history, adding new products to its portfolio on a regular basis. That quality, coupled with the growing need for observability and security software, is driving its total addressable market (TAM) higher. Datadog believes its TAM will reach $62 billion by 2026, up from $41 billion in 2021.
Currently, shares trade at 16.9 times sales, a bargain compared to the three-year average of 37.7 times sales. That multiple is far from cheap, but high-quality businesses like Datadog often command premium valuations, so investors should take advantage of the discounted price. Now is a good time to buy a small position in this growth stock.
2. Cognex
Cognex specializes in industrial machine vision, a technology that uses cameras and AI software to give factory equipment the ability to see, recognize, and analyze objects. Its machine vision systems are most commonly used in automotive, electronics, and logistics end markets, where they identify, measure, and inspect parts and packages to automate the manufacturing, distribution, and quality assurance processes.
Hardware vendors like Cognex tend to be cyclical businesses, meaning they typically see periods of expansion followed by periods of contraction, simply because customers can go years without refreshing their hardware. The cyclical nature of the machine vision industry was particularly evident over the last year. Many e-commerce businesses invested heavily in logistics infrastructure during the pandemic, but they have since cut spending to absorb excess capacity.
That cyclicality was further magnified by the uncertain economic environment, which caused businesses to pull back more sharply on spending than they otherwise would have. That translated into disappointing financial results for Cognex in the first quarter. Revenue declined 29% to $201 million and net income dropped 61% to $0.15 per diluted share. But investors have good reason to believe Cognex can reaccelerate growth in the future, and the stock could explode during the next expansionary phase of the business cycle.
Cognex is the market leader in industrial machine vision systems, software, sensors, and barcode readers. The company currently values its addressable market at $6.5 billion, and it believes that figure will grow at 13% annually over the long term. But management is guiding for long-term revenue growth of 15% annually, meaning Cognex is confident in its ability to take share and reinforce its market leadership.
With that in mind, shares trade at 10.5 times sales, a discount to the three-year average of 12.1 times sales. That creates a reasonable buying opportunity for patient investors.
10 stocks we like better than Datadog
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Trevor Jennewine has positions in Cognex. The Motley Fool has positions in and recommends Cognex and 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.
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Many companies will benefit as AI becomes more prevalent, but investors should take a close look at Datadog (NASDAQ: DDOG) and Cognex (NASDAQ: CGNX) right now. History says the economy will regain its momentum in time, and the S&P 500 will find its way back to bull market territory, buoyed by secular trends like artificial intelligence (AI). Its software also leans on artificial intelligence (AI) to automate anomaly detection, root cause analysis, and incident alerts, which ultimately helps development, operations, and security teams work more efficiently.
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Many companies will benefit as AI becomes more prevalent, but investors should take a close look at Datadog (NASDAQ: DDOG) and Cognex (NASDAQ: CGNX) right now. Indeed, consultancy McKinsey estimates that AI could boost global economic output by $13 trillion by 2030, and Ark Invest estimates that AI software sales will increase at 42% annually during that time period. Cognex is the market leader in industrial machine vision systems, software, sensors, and barcode readers.
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Many companies will benefit as AI becomes more prevalent, but investors should take a close look at Datadog (NASDAQ: DDOG) and Cognex (NASDAQ: CGNX) right now. For instance, consultancy Gartner says Datadog is a leader in application performance monitoring, Forrester Research says the company is a leader in AI for IT operations, and G2 says Datadog a leader in cloud infrastructure and server monitoring. Cognex Cognex specializes in industrial machine vision, a technology that uses cameras and AI software to give factory equipment the ability to see, recognize, and analyze objects.
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Many companies will benefit as AI becomes more prevalent, but investors should take a close look at Datadog (NASDAQ: DDOG) and Cognex (NASDAQ: CGNX) right now. Now is a good time to buy a small position in this growth stock. The cyclical nature of the machine vision industry was particularly evident over the last year.
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8331eb92-2f6d-4475-9566-5a8ecea35550
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718207.0
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2023-06-20 00:00:00 UTC
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DDOG Quantitative Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-quantitative-stock-analysis
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nan
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield 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.
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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.
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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).
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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).
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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.
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5b97a906-3795-48df-bc0e-bcddc45b5ffb
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718208.0
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2023-06-16 00:00:00 UTC
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Validea Detailed Fundamental Analysis - DDOG
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DDOG
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-ddog-1
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nan
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nan
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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 Large-Cap Growth Stocks
Factor-Based Stock Portfolios
High Momentum Stocks
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 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.
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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.
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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).
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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).
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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.
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8e0235d1-2939-490c-890a-3d4cd6666fb7
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718209.0
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2023-06-15 00:00:00 UTC
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Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-outpaces-stock-market-gains%3A-what-you-should-know-4
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $98.19, marking a +1.98% move from the previous day. This move outpaced the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 5.48% over the past month, lagging the Computer and Technology sector's gain of 12.34% and the S&P 500's gain of 6.22% in that time.
Datadog will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.28, up 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $500.37 million, up 23.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $2.09 billion. These totals would mark changes of +19.39% and +24.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% higher. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 82.44. Its industry sports an average Forward P/E of 41.59, so we one might conclude that Datadog is trading at a premium comparatively.
Meanwhile, DDOG's PEG ratio is currently 3.07. 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 1.77 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
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.
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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.
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In the latest trading session, Datadog (DDOG) closed at $98.19, marking a +1.98% move from the previous day. Meanwhile, DDOG's PEG ratio is currently 3.07. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Datadog (DDOG) closed at $98.19, marking a +1.98% move from the previous day. Meanwhile, DDOG's PEG ratio is currently 3.07. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Datadog (DDOG) closed at $98.19, marking a +1.98% move from the previous day. Meanwhile, DDOG's PEG ratio is currently 3.07. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Datadog (DDOG) closed at $98.19, marking a +1.98% move from the previous day. Meanwhile, DDOG's PEG ratio is currently 3.07. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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69cedecd-c1fc-4d43-96d7-e4dcfefc87de
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718210.0
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2023-06-13 00:00:00 UTC
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SentinelOne Stock is Down, But Is it Out?
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DDOG
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https://www.nasdaq.com/articles/sentinelone-stock-is-down-but-is-it-out
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nan
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nan
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Enterprise cybersecurity firm SentinelOne Inc. (NYSE: S) stock took a (35%) drop on its fiscal Q1 2024 earnings release. As a hypergrowth company, it saw revenues spike more than 70% but lowered its fiscal full-year 2024 guidance causing investors to panic out of the stock. Profits continue to grow larger despite climbing revenues.
Unfortunately, the cybersecurity company lowered its revenue guidance range for its fiscal full-year 2023. Its platform uses artificial intelligence (AI) to monitor, predict and protect against real-time threats, including malware and file-based attacks. The company competes with other cybersecurity companies like CrowdStrike Holdings Inc. (NASDAQ: CRWD), Zscaler Inc. (NYSE: ZS), Datadog Inc. (NASDAQ: DDOG) and Palo Alto Networks Inc. (NASDAQ: PANW).
Selling Fire Extinguishers During a Rain Storm
Cybersecurity services are like buying fire extinguishers. They are a preventative measure and a defensive expense for companies. When the economy is strong, companies have little problem buying them. But, when the macroeconomic landscape gets more challenging, companies scrutinize expenses and trim down in areas that aren’t contributing to the top and bottom lines.
Cybersecurity protection won't directly help grow revenues for customers' businesses, but the downside of not having cybersecurity can be crippling. Fear drives the cybersecurity business. For SentinelOne, this impacts its ability to upsell services and continue its hypergrowth trajectory. The concerns have been reflected in its stock. SentinelOne shares have tumbled from a high of $78.53 in November 2021 to a new low of $12.43 in June 2023.
Missing Expectations
On June 1, 2023, Sentinel One released its fiscal first-quarter 2024 results for the quarter ending April 2023. The Company reported an earnings-per-share (EPS) loss of (-$0.15) excluding non-recurring items versus consensus analyst estimates for a loss of (-$0.17), a $0.02 beat. Revenues grew 70.5% year-over-year (YoY) to $133.39 million, missing analyst estimates of $136.62 million.
ARR Adjustment
Another contributor to the crushing sell-off was the correction of historical inaccuracies with their revenue recognition. Sentinel One changed its had to correct its accounting methodologies and correct prior inaccuracies, making a one-time adjustment to the average run rate (ARR) of $27 million. The company specializes in endpoint protection services for companies.
CEO Comments
SentinelOne CEO Tomer Weingarten commented, "Macro challenges remained, yet we continued to deliver high growth and margin improvement, demonstrating key strengths across our business. Once again, we're leading the industry with the innovation in AI with our recently launched Purple AI: a one-of-a-kind innovation in cybersecurity that empowers enterprises with unparalleled capabilities to offer a real-time, autonomous response against cyber threats; we are adapting and optimizing to empower enterprises with the best security resources and drive progress toward profitability."
Lowered Guidance
SentinelOne lowered guidance for fiscal Q2 2024 revenues to $141 million versus $152.07 million consensus analyst estimates. It lowered fiscal full-year 2024 revenues of $590 million to $600 million versus $637.63 million consensus analyst estimates.
Slew of Downgrades
The analysts had a field day downgrading S stock on June 2, 2023. BTIG Research downgraded its rating for S from Buy to Neutral. D.A. Davidson cut from a Buy to Neutral and slashed its price target from $22.50 to $13.50. Canaccord Equity cut its rating from a Buy to Hold, cutting its target price from $20 to $14. Stephens cut its rating from Overweight to Equal-Weight and price target from $22 to $15. With so many downgrades, it may have alleviated most selling pressure on shares.
Sentinel One analyst rating and price targets can be found on MarketBeat.
Collapse Back Into the Weekly Descending Triangle
The weekly chart of S formed a descending triangle after peaking at $30.00 in August 2022 and selling off to hit a low of $12.69 in January 2023. S staged a rally on the breakout through the weekly market structure low (MSL) at $15.43. S peaked at the descending trendline resistance at $19.00 in April 2023, causing it to back down to retest and bounce off the weekly MSL trigger support at $15.43.
S was able to rally through the descending trendline in May 2023 to break out to a peak at $22.03 heading into its fiscal Q1 2023 earnings report. S collapsed as it missed guidance and lowered forward guidance punishing shares with a (34%) haircut to retest the flat-bottom triangle trendline at $12.69. The weekly stochastic rejected the 80-band and still falls through the 60-band despite shares attempting to reach the weekly MSL breakout trigger. Pullback supports are at $12.69, $11.50, $10.44 and $9.54.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company competes with other cybersecurity companies like CrowdStrike Holdings Inc. (NASDAQ: CRWD), Zscaler Inc. (NYSE: ZS), Datadog Inc. (NASDAQ: DDOG) and Palo Alto Networks Inc. (NASDAQ: PANW). Its platform uses artificial intelligence (AI) to monitor, predict and protect against real-time threats, including malware and file-based attacks. But, when the macroeconomic landscape gets more challenging, companies scrutinize expenses and trim down in areas that aren’t contributing to the top and bottom lines.
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The company competes with other cybersecurity companies like CrowdStrike Holdings Inc. (NASDAQ: CRWD), Zscaler Inc. (NYSE: ZS), Datadog Inc. (NASDAQ: DDOG) and Palo Alto Networks Inc. (NASDAQ: PANW). Unfortunately, the cybersecurity company lowered its revenue guidance range for its fiscal full-year 2023. Lowered Guidance SentinelOne lowered guidance for fiscal Q2 2024 revenues to $141 million versus $152.07 million consensus analyst estimates.
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The company competes with other cybersecurity companies like CrowdStrike Holdings Inc. (NASDAQ: CRWD), Zscaler Inc. (NYSE: ZS), Datadog Inc. (NASDAQ: DDOG) and Palo Alto Networks Inc. (NASDAQ: PANW). Unfortunately, the cybersecurity company lowered its revenue guidance range for its fiscal full-year 2023. Lowered Guidance SentinelOne lowered guidance for fiscal Q2 2024 revenues to $141 million versus $152.07 million consensus analyst estimates.
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The company competes with other cybersecurity companies like CrowdStrike Holdings Inc. (NASDAQ: CRWD), Zscaler Inc. (NYSE: ZS), Datadog Inc. (NASDAQ: DDOG) and Palo Alto Networks Inc. (NASDAQ: PANW). Enterprise cybersecurity firm SentinelOne Inc. (NYSE: S) stock took a (35%) drop on its fiscal Q1 2024 earnings release. The company specializes in endpoint protection services for companies.
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2349aff6-a99e-4586-87f0-46a1c14b7adb
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718211.0
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2023-06-12 00:00:00 UTC
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Validea Detailed Fundamental Analysis - DDOG
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DDOG
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-ddog-0
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nan
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nan
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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 value 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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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 value stock in the Software & Programming industry.
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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).
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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).
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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.
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7716aa94-ff4e-4437-9647-b8eaca63dc9e
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718212.0
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2023-06-09 00:00:00 UTC
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Datadog (DDOG) Recently Broke Out Above the 20-Day Moving Average
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-recently-broke-out-above-the-20-day-moving-average
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nan
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nan
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From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. DDOG recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
DDOG could be on the verge of another rally after moving 10.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
Once investors consider DDOG's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 12 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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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.
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Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. DDOG recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
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Once investors consider DDOG's positive earnings estimate revisions, the bullish case only solidifies. Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. DDOG recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
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From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. DDOG recently overtook the 20-day moving average, and this suggests a short-term bullish trend. DDOG could be on the verge of another rally after moving 10.8% higher over the last four weeks.
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037e69d9-08de-4010-87d1-63bfbc6dc362
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718213.0
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2023-06-09 00:00:00 UTC
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Can You Still Buy the Nasdaq's Best-Performing May Stocks?
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DDOG
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https://www.nasdaq.com/articles/can-you-still-buy-the-nasdaqs-best-performing-may-stocks
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nan
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nan
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Excitement for artificial intelligence (AI) has driven a remarkable 2023 rally in technology stocks. Big tech, illustrated by the Nasdaq-100, is up a staggering 31% since January, outpacing the broader Nasdaq index at 25%.
The momentum continued with enthusiasm in May. Top performers like Datadog (NASDAQ: DDOG), Marvell Technology (NASDAQ: MRVL), and Zscaler (NASDAQ: ZS) rose as much as 53% last month.
Is this the start of things to come, or has bullish sentiment morphed into irrational hysteria? I'll break down each stock's recent rally to let you know what's what.
Third place: Datadog
May gains: 45%
Datadog is a software-as-a-service (SaaS) company that sells monitoring and security tools for cloud applications. In other words, it collects data from a company's apps, databases, and servers, and monitors it for problems, opportunities for improvement, and security concerns. It's like an assistant that helps IT professionals keep a company's technology running as smoothly as possible.
The company started May's massive rally with a first-quarter earnings report that pleased Wall Street. Datadog exceeded analysts' expectations in year-over-year revenue and earnings-per-share (EPS) growth and increased its guidance for 2023. Perhaps the best news is that Datadog has grown to the point that earnings growth will accelerate as revenue outpaces costs.
Analysts believe the company could grow earnings by an average of 40% annually over the next three to five years. The stock trades at a PEG ratio of 2.2 today, which isn't cheap, but it's not absurdly expensive when considering Datadog's strong profit margins that turn $0.24 of every sales dollar into cash flow.
Verdict: Despite the stock's impressive run, shares still aren't valued at nosebleed levels like in 2020 and 2021. The stock could easily cool off after so much excitement, so consider dollar-cost averaging to build a long-term position slowly.
Second place: Marvell Technology
May gains: 46%
Marvell Technology is a semiconductor company that designs chips for computing, networking, security, and storage applications. Given the digital transformation across the global economy, these products are essential, and management proclaims that Marvell possesses the most diverse offering of data infrastructure products. But this isn't why the stock blew its top last month. For that, we look to the upstart growth of AI.
Management discussed the opportunities in artificial intelligence in its Q1earnings callfor its fiscal year 2024. CEO Matt Murphy believes the company's AI-related revenue could exceed $800 million by 2025, roughly quadrupling last year's figures. That's bound to juice Marvell's growth over the coming years, which helps explain the dramatic uptick in shares.
But is the stock getting ahead of itself? Marvell has done almost $6 billion in revenue over the past year, so even $800 in eventual AI-related sales means that Marvell's AI exposure is still a minority portion of the business. Analysts believe the company can earn $3 per share in its fiscal year 2026, which still values the stock at a future P/E of 19.
Verdict: AI upside seems more hopeful than certain at this point. Meanwhile, the stock is expensive after its giant May leap. Investors should consider selling to lock in profits or skip Marvell until the company posts more concrete growth.
First place: Zscaler
May gains: 53%
Cybersecurity remains a hot topic on Wall Street. Companies can't afford to relax on protecting their data and customers because the costs of a breach are so high. According to IBM, the average breach can cost a U.S. company more than $9 million. Zscaler is a cloud security company that protects from malicious actors on the internet. It routes activity through its platform to ensure it's safe before it reaches its customers' devices.
The stock's recent success story is similar to Datadog's. Shares had declined by 76% from their former high as the tech stock bear market pummeled shares throughout much of 2022 and early 2023. But investor sentiment flipped positive when Zscaler pre-announced earnings in early May and revealed solid results.
Security should remain in high demand as the economy continues moving further into the digital world. Analysts are optimistic about Zscaler's growth prospects, especially its earnings growth, as revenue grows faster than expenses. The company could grow EPS by an average of 63% annually over the next three to five years.
Verdict: Zscaler's stock now trades with a PEG ratio of just 1.5, which seems attractive for a company that's hitting its stride financially. Investors should consider adding slowly, though, as any stock that rises 50% in a month can surely suffer setbacks.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Zscaler. The Motley Fool recommends Marvell Technology. 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.
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Top performers like Datadog (NASDAQ: DDOG), Marvell Technology (NASDAQ: MRVL), and Zscaler (NASDAQ: ZS) rose as much as 53% last month. In other words, it collects data from a company's apps, databases, and servers, and monitors it for problems, opportunities for improvement, and security concerns. The stock trades at a PEG ratio of 2.2 today, which isn't cheap, but it's not absurdly expensive when considering Datadog's strong profit margins that turn $0.24 of every sales dollar into cash flow.
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Top performers like Datadog (NASDAQ: DDOG), Marvell Technology (NASDAQ: MRVL), and Zscaler (NASDAQ: ZS) rose as much as 53% last month. Second place: Marvell Technology May gains: 46% Marvell Technology is a semiconductor company that designs chips for computing, networking, security, and storage applications. The Motley Fool recommends Marvell Technology.
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Top performers like Datadog (NASDAQ: DDOG), Marvell Technology (NASDAQ: MRVL), and Zscaler (NASDAQ: ZS) rose as much as 53% last month. Analysts believe the company can earn $3 per share in its fiscal year 2026, which still values the stock at a future P/E of 19. 10 stocks we like better than Datadog When our analyst team has a stock tip, it can pay to listen.
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Top performers like Datadog (NASDAQ: DDOG), Marvell Technology (NASDAQ: MRVL), and Zscaler (NASDAQ: ZS) rose as much as 53% last month. Third place: Datadog May gains: 45% Datadog is a software-as-a-service (SaaS) company that sells monitoring and security tools for cloud applications. Analysts believe the company can earn $3 per share in its fiscal year 2026, which still values the stock at a future P/E of 19.
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95203d66-fba2-43b0-8998-d8ee2d21f15b
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718214.0
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2023-06-09 00:00:00 UTC
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Interesting DDOG Put And Call Options For September 2024
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DDOG
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https://www.nasdaq.com/articles/interesting-ddog-put-and-call-options-for-september-2024
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nan
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nan
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Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the September 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 469 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 September 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $95.00 strike price has a current bid of $18.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $95.00, but will also collect the premium, putting the cost basis of the shares at $76.95 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $97.24/share today.
Because the $95.00 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 19.00% return on the cash commitment, or 14.79% 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 $95.00 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 $23.25. If an investor was to purchase shares of DDOG stock at the current price level of $97.24/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 26.75% if the stock gets called away at the September 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 $100.00 strike highlighted in red:
Considering the fact that the $100.00 strike represents an approximate 3% 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 23.91% boost of extra return to the investor, or 18.61% 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 $97.24) to be 65%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
Stocks Crossing Above Their 200 Day Moving Average
MARK market cap history
BRS Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 3% 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 September 2024 expiration.
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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 3% 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 September 2024 expiration.
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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 3% 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 September 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new September 2024 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new September 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 $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 3% 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 September 2024 expiration.
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f7e88861-17a5-494b-add1-b6bc66c827c3
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718215.0
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2023-06-08 00:00:00 UTC
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DDOG vs. DT: Which Cloud Stock is Better?
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DDOG
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https://www.nasdaq.com/articles/ddog-vs.-dt%3A-which-cloud-stock-is-better
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nan
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nan
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In this piece, I evaluated two cloud stocks, Datadog (NASDAQ:DDOG) and Dynatrace (NYSE:DT), using TipRanks' comparison tool to determine which is better. Both stocks are up significantly year-to-date, with Datadog up 39% and Dynatrace gaining 37%. However, Datadog is still off 7% over the last 12 months after that tremendous rally, while Dynatrace is up 24% over the past year.
Datadog provides a monitoring and analytics platform for developers, information technology operations teams, and business users, while Dynatrace offers a software intelligence platform built for the enterprise cloud.
With such sizable gains year-to-date, some investors might be wondering if any upside is left in either name, so a closer look is in order. To start with, the U.S. software industry is trading at a price-to-sales (P/S) ratio of 10.4, which is in line with its three-year average.
Datadog (NASDAQ:DDOG)
The first red flag for Datadog is its lack of profitability, while the second is its P/S multiple of 18.3, which immediately suggests it's overvalued. Due to a confluence of current and potential issues, a bearish view looks appropriate for Datadog at this time.
Unfortunately, this stock is driven by the recent hype around cloud stocks and especially artificial intelligence (AI). Investors have inflated a massive balloon around virtually any company that has anything to do with AI, and with Datadog's lack of profitability, there's just nothing here worth investing in right now.
Generally, analysts agree that Datadog should record its final annual loss in 2024 and become profitable in 2025, with profits of $321 million. This timeline would require an annual growth rate of 66% over the next two years.
However, Datadog's revenue growth rate has been shifting, notching 66% in 2020, 70.5% in 2021, and 63% in 2022, which could put that profitability timeline in jeopardy. Additionally, the company's operating expenses have been slightly outpacing its revenue growth, causing its annual losses to widen to $84 million for the last 12 months.
Finally, Datadog insiders have unloaded over $18 million worth of the company's shares over the last three months, including a long list of Informative Sells by multiple insiders over the last two to three days. When the insiders are abandoning ship en masse, that's never a good sign.
What is the Price Target for DDOG Stock?
Datadog has a Strong Buy consensus rating based on 17 Buys, four Holds, and zero Sell ratings assigned over the last three months. At $96, the average Datadog stock price target implies upside potential of just 0.7%.
Dynatrace (NYSE:DT)
At a P/S multiple of 13.2, Dynatrace immediately looks overvalued. The company hasn't been growing nearly as fast as Datadog, although its growth is more stable, notching revenue growth rates in the 29% to 32% range over the last three years. Due to these factors and others outlined below, a neutral view seems appropriate for Dynatrace now.
Dynatrace has also benefited from the AI-related hype, but its financial position is far better than Datadog's. Unfortunately, Dynatrace's net income margins have been quite low — generally staying in the 6% to 11% range (currently 9.3% for the past 12 months) since the company became profitable in 2021. Most software companies have healthier margins than that, but Dynatrace is still in the early stages.
On the other hand, the company has managed to keep its operating expenses under control, which cannot be said for most technology companies, which saw their expenses explode in 2022. Dynatrace also relies less on stock-based compensation than most tech companies, which also bodes well for its long-term stability.
Notably, however, there was a large insider sale four months ago, including several Informative Sells, right around the last spike before the stock dropped temporarily. Now in early June, we're seeing another spike in Dynatrace shares, and another large Informative Sell was made two days ago.
Over the long term, Dynatrace could be a nice portfolio addition, but for now, it looks fairly valued.
What is the Price Target for DT Stock?
Dynatrace has a Strong Buy consensus rating based on 15 Buys, four Holds, and zero Sell ratings assigned over the last three months. At $54.11, the average Dynatrace stock price target implies upside potential of 6.5%.
Conclusion: Bearish on DDOG, Neutral on DT
Datadog and Dynatrace both offer cloud-based intelligence platforms with AI-related solutions, but a look at their fundamentals reveals that Dynatrace is in a much better position. While the company looks fairly valued, for now, any significant sell-off could create an attractive entry point.
On the other hand, Datadog is unprofitable and less compelling. A review might be in order for Datadog in two years' time to see if it's profitable and whether its financial position has improved at all. However, for now, there's very little to like about this stock.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this piece, I evaluated two cloud stocks, Datadog (NASDAQ:DDOG) and Dynatrace (NYSE:DT), using TipRanks' comparison tool to determine which is better. Datadog (NASDAQ:DDOG) The first red flag for Datadog is its lack of profitability, while the second is its P/S multiple of 18.3, which immediately suggests it's overvalued. What is the Price Target for DDOG Stock?
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In this piece, I evaluated two cloud stocks, Datadog (NASDAQ:DDOG) and Dynatrace (NYSE:DT), using TipRanks' comparison tool to determine which is better. Datadog (NASDAQ:DDOG) The first red flag for Datadog is its lack of profitability, while the second is its P/S multiple of 18.3, which immediately suggests it's overvalued. What is the Price Target for DDOG Stock?
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In this piece, I evaluated two cloud stocks, Datadog (NASDAQ:DDOG) and Dynatrace (NYSE:DT), using TipRanks' comparison tool to determine which is better. Conclusion: Bearish on DDOG, Neutral on DT Datadog and Dynatrace both offer cloud-based intelligence platforms with AI-related solutions, but a look at their fundamentals reveals that Dynatrace is in a much better position. Datadog (NASDAQ:DDOG) The first red flag for Datadog is its lack of profitability, while the second is its P/S multiple of 18.3, which immediately suggests it's overvalued.
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Conclusion: Bearish on DDOG, Neutral on DT Datadog and Dynatrace both offer cloud-based intelligence platforms with AI-related solutions, but a look at their fundamentals reveals that Dynatrace is in a much better position. In this piece, I evaluated two cloud stocks, Datadog (NASDAQ:DDOG) and Dynatrace (NYSE:DT), using TipRanks' comparison tool to determine which is better. Datadog (NASDAQ:DDOG) The first red flag for Datadog is its lack of profitability, while the second is its P/S multiple of 18.3, which immediately suggests it's overvalued.
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09be1c70-7af1-46b4-a44c-59944fab3149
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718216.0
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2023-06-08 00:00:00 UTC
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Datadog (DDOG) Brings New Features in Cloud Cost Management
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-brings-new-features-in-cloud-cost-management
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nan
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nan
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Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. It extends the collaboration with Microsoft MSFT by providing Cloud Cost Management support for Azure.
Cloud cost data is ideally dispersed and difficult to centralize and understand, putting organizations at risk of exceeding budget. As organizations increase their usage of containers and multiple clouds, the ability to centralize cost data and allocate spend across different dimensions becomes a top priority.
Datadog’s Cloud Cost Management addresses this issue by providing engineers visibility into spend and creating a cost-conscious culture to take action on cost insights. With granular alerting and visibility into containers and Azure environments, it empowers to reduce waste and avoid unexpected cost overages.
With support from Azure and Amazon’s AMZN AWS, organizations can now seamlessly understand the teams, services and environments responsible for their highest cloud costs. Teams using Microsoft Azure can optimize performance and cost, with full visibility into infrastructure and application telemetry.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog Leveraging on its Cloud Business to Aid Prospects
Datadog banks on a strong cloud portfolio, delivering value to customers in their digital transformation and cloud migration journeys. Its trailing 12-month dollar-based net retention rate continued to be over 130% in the first-quarter 2023 as customers increase their usage and adopt more products.
Besides Cloud Cost Management, Datadog introduced several products to bolster its cloud business.
It introduced cloud security management which brings together capabilities from Cloud Security Posture Management and Cloud Workload Security to identify misconfigurations, detect threats and secure cloud-native applications.
It also launched Datadog continuous testing, that helps developers and quality engineers to quickly create, manage and run end-to-end tests for their web applications.
These enhancements are expected to track users and boost the company’s top line. A solid cloud partner base, including Alphabet’s GOOGL Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver in addition to an expanding portfolio.
Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively.
Shares of Alphabet, Microsoft and Amazon have gained 38.8%, 34.9% and 44.3% in the year-to-date period, respectively.
Datadog’s Bright Prospects
This Zacks Rank #3 (Hold) company reported first-quarter 2023 revenues of $481.7 million which increased 32.7% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog continues to broaden its platform with continuous investments in R&D as well as sales and marketing. It aims to help customers save on costs, execute with better engineering efficiency, and drive competitive differentiation.
The company’s second-quarter 2023 revenues are anticipated to be in the range of $498-$502 million, which represents 23-24% year-over-year growth. The Zacks Consensus Estimate for the same is pegged at $500.37 million.
Its Non-GAAP earnings are expected in the range of 27-29 cents per share in the second-quarter 2023. The consensus mark for earnings has remained unchanged at 28 cents per share in the past 30 days, indicating a year-over-year rise of 16.67%.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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.
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Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively.
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Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively.
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Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. Coming to the price performance, DDOG gained 27.3% year to date compared with the Zacks Internet- Software industry’s and the Zacks Computer and Technology sector’s rise of 43.8% and 33.2% respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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41aa985f-77c5-49b6-84cc-885907fefa0f
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718217.0
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2023-06-08 00:00:00 UTC
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Datadog (DDOG)'s Technical Outlook is Bright After Key Golden Cross
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DDOG
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https://www.nasdaq.com/articles/datadog-ddogs-technical-outlook-is-bright-after-key-golden-cross
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nan
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nan
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After reaching an important support level, Datadog, Inc. (DDOG) could be a good stock pick from a technical perspective. DDOG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
Over the past four weeks, DDOG has gained 8.8%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
The bullish case solidifies once investors consider DDOG's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 12 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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.
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Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimates. After reaching an important support level, Datadog, Inc. (DDOG) could be a good stock pick from a technical perspective. DDOG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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DDOG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. After reaching an important support level, Datadog, Inc. (DDOG) could be a good stock pick from a technical perspective.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. After reaching an important support level, Datadog, Inc. (DDOG) could be a good stock pick from a technical perspective. DDOG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimates. After reaching an important support level, Datadog, Inc. (DDOG) could be a good stock pick from a technical perspective. DDOG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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6d51e74c-ada9-41d4-905a-cffa43fb5504
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718218.0
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2023-06-08 00:00:00 UTC
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Stock Market News for Jun 8, 2023
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DDOG
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https://www.nasdaq.com/articles/stock-market-news-for-jun-8-2023
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nan
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nan
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Wall Street closed mixed on Wednesday after the broad-based rally of past one and half week halted. The technology sector suffered the most as A.I.-based rally witnessed profit bookings. The Dow ended in positive territory while both the S&P 500 and Nasdaq Composite finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.3% to close at 33,665.02. Notably, 20 components of the 30-stock index ended in positive territory, while 10 in negative zone. The tech-heavy Nasdaq Composite finished at 13,104.89, sliding 1.3% or 171.52 points due to weak performance of large-cap technology stocks.
The major loser of the tech-laded Nasdaq Composite was Datadog Inc. DDOG, shares of which was plummeted by 8.1%. Datadog currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 was down 0.4% to end at 4,267.52. Seven out of 11 broad sectors of the benchmark index closed in positive territory while four in negative zone. The Industrials Select Sector SPDR (XLI), the Energy Sector SPDR (XLE), the Materials Select Sector SPDR (XLB), and the Real Estate Select Sector SPDR (XLRE) advanced 1.6%, 2.7%, 1.2% and 1.8%, respectively. On the other hand, the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) dropped 1.5% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.1% to 13.94. At intraday low, the fear gauge touched 13.77, lowest level since Feb 14, 2020. Advancers outnumbered decliners on the NYSE by a 1.58-to-1 ratio. On Nasdaq, a 1.27-to-1 ratio favored advancing issues. The S&P 500 recorded 22 new 52-week highs and zero new 52-week lows while the Nasdaq registered 122 new 52-week highs and 40 new 52-week lows.
Technology Sector Suffers Setback
The technology sector has seen an impressive rally so far this year after a highly disappointing 2022. Year to date, the XLK has rallied 33.3% while its close associate XLC has advanced 32.5%. The tech-heavy Nasdaq Composite has climbed 25.4%.
The performance of growth stocks like technology is inversely related to the interest rate trajectory. The technology sector was the best performer in the pandemic-ridden 2020 and 2021 as the Fed kept the benchmark interest rate to almost zero.
Just the opposite happened in 2022 as the central bank hiked the lending rate by a massive 4.5% to combat record-high inflation. The valuation of most of the technology behemoths plunged last year. The situation once again changed in 2023 as the Fed reduced the magnitude of rate hike buoyed by a steady decline in inflation rate.
In the past three months, the tech rally was primarily driven by massive boom in artificial intelligence. Various technology behemoths revealed A.I.-based high-end products. However, a section of financial researchers has recently claimed that the A.I. boom is exaggerated, which resulted in some profit bookings in this sector.
Moreover, yesterday, Bank of Canada unexpectedly hiked the benchmark interest rate by 25 basis points. Previous day, the central bank of Australia also raised interest rate by 25 basis points for two successive months. The CME FedWatch shows that the probability that the Fed will keep the lending rate at 5-5.25% in its June FOMC has reduced to 69% from 77% last week.
Economic Data
U.S. Trade Deficit increased $14 billion to $74.6 billion in April. However, the metric was below the consensus estimate of a deficit of $75.2 billion. The data for March was revised to a deficit of $60.6 billion from a deficit of $64.2 billion reported earlier. April’s exports were $249.0 billion, $9.2 billion less than March exports. April’s imports were $323.6 billion, $4.8 billion more than March imports.
The Fed reported that the consumer credit increased to $23 billion in April, outpacing the consensus estimate of $21.6 billion. The data for march was revised downward to $22.9 billion from $26.5 billion reported earlier. Year over year, consumer credit rose 5.7% in April on a seasonally adjusted basis.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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.
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The major loser of the tech-laded Nasdaq Composite was Datadog Inc. DDOG, shares of which was plummeted by 8.1%. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street closed mixed on Wednesday after the broad-based rally of past one and half week halted.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The major loser of the tech-laded Nasdaq Composite was Datadog Inc. DDOG, shares of which was plummeted by 8.1%. The Industrials Select Sector SPDR (XLI), the Energy Sector SPDR (XLE), the Materials Select Sector SPDR (XLB), and the Real Estate Select Sector SPDR (XLRE) advanced 1.6%, 2.7%, 1.2% and 1.8%, respectively.
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The major loser of the tech-laded Nasdaq Composite was Datadog Inc. DDOG, shares of which was plummeted by 8.1%. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Industrials Select Sector SPDR (XLI), the Energy Sector SPDR (XLE), the Materials Select Sector SPDR (XLB), and the Real Estate Select Sector SPDR (XLRE) advanced 1.6%, 2.7%, 1.2% and 1.8%, respectively.
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The major loser of the tech-laded Nasdaq Composite was Datadog Inc. DDOG, shares of which was plummeted by 8.1%. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Technology Sector Suffers Setback The technology sector has seen an impressive rally so far this year after a highly disappointing 2022.
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ddecab84-3c4e-4b81-b863-49bfb6127094
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718219.0
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2023-06-06 00:00:00 UTC
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Dynatrace Stock Surges On AI, 'Mandatory' Network Monitoring
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DDOG
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https://www.nasdaq.com/articles/dynatrace-stock-surges-on-ai-mandatory-network-monitoring
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nan
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nan
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Dynatrace Inc. (NYSE: DT) has been a strong performer recently, benefiting from the market's optimism about the company’s AI technologies, as well as its network monitoring services.
A glimpse of the Dynatrace chart chart shows a stock clawing its way out of a steep decline that began in October 2021. Recent price action has been strong, with the following gains:
1 month: 27.35%
3 months: 24.81%
Year-to-date: 37.39%
Following the company's fiscal fourth-quarter earnings report, the stock broke out of a cup-shaped consolidation on May 18.
On May 17, Dynatrace reported net income of $0.31 a share, up 82% from the year-earlier quarter. Revenue grew by 25% to $314.5 million.
Beating Analysts' Views
Dynatrace earnings data show the company beat top and bottom-line views in each of the past three quarters.
It also trounced its own estimates in the most recent quarter.
The company increased its revenue guidance for the current quarter and the full year.
Massachusetts-based Dynatrace makes “observability” software, which allows businesses to monitor the performance of applications, networks, and infrastructure in real time.
Resolving Customers' Problems Quickly
With this advanced data analysis, Dynatrace can identify any issues or bottlenecks that may affect the performance of its clients’ digital services. This helps businesses detect and resolve problems quickly, ensuring smooth operations and positive user experiences. Dynatrace also offers insights and recommendations to improve system performance.
Dynatrace went public in 2019, and has been profitable since even before making its NYSE debut. That’s somewhat unusual in the tech space, where venture-funded companies can take years to generate revenue before eventually turning a profit.
The company has posted double-digit revenue and profit growth since the quarter ended in September 2021. That’s also somewhat unusual, as many techs saw revenue decline last year. As inflation ratcheted up, there was widespread speculation that enterprise clients would tighten their belts, and spend less on cloud-computing security and analytics services.
From Optional To Mandatory
However, that hasn’t occurred, at least not to the extent that some pundits predicted. In the most recent quarterly report, Dynatrace CEO Rick McConnell said, in a statement, “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives.”
In its own filings, Dynatrace says direct and indirect competitors include Cisco Systems Inc. (NASDAQ: CSCO), Datadog Inc. (NASDAQ: DDOG), Splunk Inc. (NASDAQ: SPLK), Palo Alto Networks Inc. (NASDAQ: PANW), Akamai Techologies Inc. (NASDAQ: AKAM), and several privately held companies.
The company’s proprietary AI engine, dubbed Davis, is continually learning to provide precise answers when a customer’s system performance deviates from expected or desired conditions.
According to Dynatrace, Davis differs from machine learning-based engines that rely on historical data, in that these rival products “can overwhelm IT professionals with alerts.”
From Reactive To Proactive
The company’s filings read, “We believe the accuracy and precision of the answers delivered by Davis enable our customers to shift from reactive to proactive remediation, providing a substantial advantage in time savings, resource efficiency, customer satisfaction, and business outcomes.”
Dynatrace analyst ratings show a consensus of “moderate buy,” but investors should use some caution. The stock is currently extended 10% beyond its buy point above $48. It closed 18.6% above its 50-day moving average on June 5 after fast rallies recently.
Boosting Price Targets
After its earnings report, nine analysts either boosted their price target or upgraded their rating on the stock. Investment bank William Blair initiated coverage with a rating of “outperform.”
Institutional owners are clearly buying the story, as is evident by the recent big price moves. MarketBeat’s institutional ownership data for Dynatrace shows that 306 institutional buyers accounted for $2.03 billion in inflows in the past 12 months versus 194 institutional sellers who unloaded $1.02 billion worth of shares.
As a fairly new public company and one that is still in fast growth mode, Dynatrace does not, as of yet, pay a dividend and has said it has no intention of doing so in the foreseeable future. The attraction to this stock is growth potential, not income.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the most recent quarterly report, Dynatrace CEO Rick McConnell said, in a statement, “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives.” In its own filings, Dynatrace says direct and indirect competitors include Cisco Systems Inc. (NASDAQ: CSCO), Datadog Inc. (NASDAQ: DDOG), Splunk Inc. (NASDAQ: SPLK), Palo Alto Networks Inc. (NASDAQ: PANW), Akamai Techologies Inc. (NASDAQ: AKAM), and several privately held companies. Resolving Customers' Problems Quickly With this advanced data analysis, Dynatrace can identify any issues or bottlenecks that may affect the performance of its clients’ digital services. The company’s proprietary AI engine, dubbed Davis, is continually learning to provide precise answers when a customer’s system performance deviates from expected or desired conditions.
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In the most recent quarterly report, Dynatrace CEO Rick McConnell said, in a statement, “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives.” In its own filings, Dynatrace says direct and indirect competitors include Cisco Systems Inc. (NASDAQ: CSCO), Datadog Inc. (NASDAQ: DDOG), Splunk Inc. (NASDAQ: SPLK), Palo Alto Networks Inc. (NASDAQ: PANW), Akamai Techologies Inc. (NASDAQ: AKAM), and several privately held companies. A glimpse of the Dynatrace chart chart shows a stock clawing its way out of a steep decline that began in October 2021. Beating Analysts' Views Dynatrace earnings data show the company beat top and bottom-line views in each of the past three quarters.
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In the most recent quarterly report, Dynatrace CEO Rick McConnell said, in a statement, “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives.” In its own filings, Dynatrace says direct and indirect competitors include Cisco Systems Inc. (NASDAQ: CSCO), Datadog Inc. (NASDAQ: DDOG), Splunk Inc. (NASDAQ: SPLK), Palo Alto Networks Inc. (NASDAQ: PANW), Akamai Techologies Inc. (NASDAQ: AKAM), and several privately held companies. Beating Analysts' Views Dynatrace earnings data show the company beat top and bottom-line views in each of the past three quarters. According to Dynatrace, Davis differs from machine learning-based engines that rely on historical data, in that these rival products “can overwhelm IT professionals with alerts.” From Reactive To Proactive The company’s filings read, “We believe the accuracy and precision of the answers delivered by Davis enable our customers to shift from reactive to proactive remediation, providing a substantial advantage in time savings, resource efficiency, customer satisfaction, and business outcomes.” Dynatrace analyst ratings show a consensus of “moderate buy,” but investors should use some caution.
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In the most recent quarterly report, Dynatrace CEO Rick McConnell said, in a statement, “Observability is quickly moving from optional to mandatory as customers look to tame the explosion of data and increased complexity that's driven by their cloud migration and digital transformation initiatives.” In its own filings, Dynatrace says direct and indirect competitors include Cisco Systems Inc. (NASDAQ: CSCO), Datadog Inc. (NASDAQ: DDOG), Splunk Inc. (NASDAQ: SPLK), Palo Alto Networks Inc. (NASDAQ: PANW), Akamai Techologies Inc. (NASDAQ: AKAM), and several privately held companies. That’s also somewhat unusual, as many techs saw revenue decline last year. The company’s proprietary AI engine, dubbed Davis, is continually learning to provide precise answers when a customer’s system performance deviates from expected or desired conditions.
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4e0c033f-c38c-4292-996b-9b9f41c6326f
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718220.0
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2023-06-06 00:00:00 UTC
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Datadog Reaches Analyst Target Price
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DDOG
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https://www.nasdaq.com/articles/datadog-reaches-analyst-target-price
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nan
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nan
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In recent trading, shares of Datadog Inc (Symbol: DDOG) have crossed above the average analyst 12-month target price of $100.07, changing hands for $100.35/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 27 different analyst targets within the Zacks coverage universe contributing to that average for Datadog Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $70.00. And then on the other side of the spectrum one analyst has a target as high as $172.00. The standard deviation is $19.955.
But the whole reason to look at the average DDOG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDOG crossing above that average target price of $100.07/share, investors in DDOG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $100.07 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Datadog Inc:
RECENT DDOG ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 20 19 19 20
Buy ratings: 3 3 3 3
Hold ratings: 7 7 5 6
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.57 1.59 1.48 1.52
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on DDOG — FREE.
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Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Datadog Inc (Symbol: DDOG) have crossed above the average analyst 12-month target price of $100.07, changing hands for $100.35/share. And so with DDOG crossing above that average target price of $100.07/share, investors in DDOG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $100.07 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average DDOG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Datadog Inc (Symbol: DDOG) have crossed above the average analyst 12-month target price of $100.07, changing hands for $100.35/share. But the whole reason to look at the average DDOG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDOG crossing above that average target price of $100.07/share, investors in DDOG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $100.07 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with DDOG crossing above that average target price of $100.07/share, investors in DDOG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $100.07 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Datadog Inc (Symbol: DDOG) have crossed above the average analyst 12-month target price of $100.07, changing hands for $100.35/share. But the whole reason to look at the average DDOG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Datadog Inc (Symbol: DDOG) have crossed above the average analyst 12-month target price of $100.07, changing hands for $100.35/share. But the whole reason to look at the average DDOG price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with DDOG crossing above that average target price of $100.07/share, investors in DDOG have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $100.07 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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89203ddf-41a1-41e4-9830-425fc6b9ff35
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718221.0
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2023-06-05 00:00:00 UTC
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2 Super Stocks to Buy Hand Over Fist in June
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DDOG
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https://www.nasdaq.com/articles/2-super-stocks-to-buy-hand-over-fist-in-june
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nan
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nan
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Historically speaking, the six-month period between May and October each year tends to deliver weaker stock market returns than the period from November to April. That's where the adage "sell in May and go away" comes from.
According to the Corporate Finance Institute, the benchmark S&P 500 index has gained an average of just 2% each year in the May-to-October period dating back to 1945. By comparison, the index has jumped an average of 6.7% between November and April.
But not all years are created equal. The S&P 500 has already gained 2.7% since May 1 this year, and the Nasdaq-100 technology index soared a whopping 9.8%. The economic challenges that plagued the stock market in 2022 seem to be resolving, with inflation continuing to return to normal levels and interest rates expected to level off later this summer and maybe even fall a bit before the end of the year.
As a result, there's a good chance the May-to-October period in 2023 could be far better than average. For investors still sitting on the sidelines, here are two stocks to buy in June to take advantage of the current situation.
Image source: Getty Images.
1. Lemonade: Artificial intelligence is nothing new to this company
Artificial intelligence (AI) might have caught the attention of the corporate world in 2023, but insurance company Lemonade (NYSE: LMND) has been developing AI technology for years. In fact, it's embedded in almost every part of its business. Its online chatbots interact with customers to write quotes and pay claims, and it even spots risks and opportunities across the company's renters, homeowners, life, pet, and car insurance product portfolio.
With a market valuation of just $1.2 billion, Lemonade is very much a start-up in the insurance space, but its recent financial results for the first quarter of 2023 highlight its rapid progress in the industry dominated by traditional, entrenched operators. The company had 1.85 million customers at the end of the quarter, and it was earning an average of $352 in annual premiums from each of them, bringing its total in-force premium to $653 million. All three of those figures were all-time highs.
As a result, the company's revenue soared 115% year over year to $95 million in the quarter. But it could get even better because its AI models continue to improve: Lemonade's Lifetime Value 6 (LTV6) model is capable of predicting which customers are likely to switch insurers or buy multiple products, and it also identifies underperforming and overperforming geographic markets, which allows Lemonade to quickly pivot its marketing strategies to maximize revenue.
LTV6 was released in 2022, and the company has already moved onto a more advanced LTV7 AI model, which will be superseded by LTV8 this quarter.
Lemonade's stock price is up 32% so far this year, but it's still down 88% from its all-time high after a brutal 2021 and 2022 where the company lost money hand over fist and generated lumpy growth. Lemonade's business has incredible momentum now and it's one of just a few AI plays actually monetizing the technology successfully. As a result, this start-up presents a very attractive risk-reward opportunity at the current price.
2. Datadog: Cloud adoption is growing, and monitoring tools are in high demand
Datadog (NASDAQ: DDOG) had a stellar 2022. Despite broad economic weakness and a plunging stock market, the company continued to crush its revenue guidance in each quarter and raised its forecasts multiple times. It carried that momentum into the first quarter of 2023, and given the nature of its industry, it's probable that will continue.
Datadog has developed a cloud monitoring platform designed for modern, complex organizations that rely heavily on their online operations. It serves retailers, game developers, entertainment providers, and even financial institutions, helping them stay on top of their cloud infrastructure to identify important issues that sometimes get overlooked.
A retailer, for example, might struggle to measure customer satisfaction in its online store. What if there's a website glitch that only impacts a handful of customers in one location? It could take forever to recognize these issues manually, meanwhile, those sales are going to a competitor instead. Datadog constantly scans the cloud network to identify those issues, alerting the business before they impact the customer experience.
As of Q1, Datadog served 25,500 businesses, including 2,910 that are spending at least $100,000 per year on its platform. The company generated $481.7 million in revenue for the period, up 33% year over year and also above its guidance. The strong result prompted management to increase its full-year revenue forecast to $2.1 billion (from $2.09 billion previously).
According to Grand View Research, the value of the cloud industry will more than double between now and 2030 to $1.5 trillion. As more businesses adopt the technology, the demand for Datadog's platform is likely to grow in lockstep. Datadog stock jumped 37% in 2023, but it's still down 48% from its all-time high, and that suggests an opportunity for investors.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Lemonade. 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.
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Datadog: Cloud adoption is growing, and monitoring tools are in high demand Datadog (NASDAQ: DDOG) had a stellar 2022. Its online chatbots interact with customers to write quotes and pay claims, and it even spots risks and opportunities across the company's renters, homeowners, life, pet, and car insurance product portfolio. With a market valuation of just $1.2 billion, Lemonade is very much a start-up in the insurance space, but its recent financial results for the first quarter of 2023 highlight its rapid progress in the industry dominated by traditional, entrenched operators.
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Datadog: Cloud adoption is growing, and monitoring tools are in high demand Datadog (NASDAQ: DDOG) had a stellar 2022. As a result, the company's revenue soared 115% year over year to $95 million in the quarter. Despite broad economic weakness and a plunging stock market, the company continued to crush its revenue guidance in each quarter and raised its forecasts multiple times.
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Datadog: Cloud adoption is growing, and monitoring tools are in high demand Datadog (NASDAQ: DDOG) had a stellar 2022. Lemonade: Artificial intelligence is nothing new to this company Artificial intelligence (AI) might have caught the attention of the corporate world in 2023, but insurance company Lemonade (NYSE: LMND) has been developing AI technology for years. But it could get even better because its AI models continue to improve: Lemonade's Lifetime Value 6 (LTV6) model is capable of predicting which customers are likely to switch insurers or buy multiple products, and it also identifies underperforming and overperforming geographic markets, which allows Lemonade to quickly pivot its marketing strategies to maximize revenue.
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Datadog: Cloud adoption is growing, and monitoring tools are in high demand Datadog (NASDAQ: DDOG) had a stellar 2022. As a result, the company's revenue soared 115% year over year to $95 million in the quarter. The company generated $481.7 million in revenue for the period, up 33% year over year and also above its guidance.
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86429b97-5a5d-445f-8996-07d436ef5f45
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718222.0
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2023-06-04 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-13
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nan
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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.
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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).
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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).
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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.
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3b552759-6f63-453f-8e8b-b280fd62b89f
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718223.0
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2023-06-02 00:00:00 UTC
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Nasdaq 100 Movers: TMUS, LULU
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tmus-lulu
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nan
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nan
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In early trading on Friday, shares of lululemon athletica topped the list of the day's best performing components of the Nasdaq 100 index, trading up 13.4%. Year to date, lululemon athletica registers a 16.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 8.6%. T-Mobile US is lower by about 9.3% looking at the year to date performance.
Two other components making moves today are Marvell Technology, trading down 2.8%, and Datadog, trading up 4.6% on the day.
VIDEO: Nasdaq 100 Movers: TMUS, LULU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, lululemon athletica registers a 16.3% gain. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 8.6%. VIDEO: Nasdaq 100 Movers: TMUS, LULU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of lululemon athletica topped the list of the day's best performing components of the Nasdaq 100 index, trading up 13.4%. Year to date, lululemon athletica registers a 16.3% gain. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 8.6%.
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In early trading on Friday, shares of lululemon athletica topped the list of the day's best performing components of the Nasdaq 100 index, trading up 13.4%. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 8.6%. Two other components making moves today are Marvell Technology, trading down 2.8%, and Datadog, trading up 4.6% on the day.
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In early trading on Friday, shares of lululemon athletica topped the list of the day's best performing components of the Nasdaq 100 index, trading up 13.4%. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 8.6%. VIDEO: Nasdaq 100 Movers: TMUS, LULU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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b0755c8c-7746-496d-828a-5cec6a80ae56
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718224.0
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2023-06-02 00:00:00 UTC
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5 Stocks That Powered a Historic May for Nasdaq ETF
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DDOG
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https://www.nasdaq.com/articles/5-stocks-that-powered-a-historic-may-for-nasdaq-etf
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nan
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nan
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The tech-heavy Nasdaq Composite Index wrapped up a historic month, outperforming the Dow Jones by the widest margin since October 2001. The artificial intelligence (AI) boom, cooling inflation, bets on Fed’s rate hike pause and better-than-expected earnings drove the stocks higher.
Invesco QQQ QQQ, which serves as a proxy to the Nasdaq Index, jumped 8% in a month. We have highlighted the five best-performing stocks of QQQ from last week that led the way higher in the portfolio. These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Nvidia Corporation NVDA and Advanced Micro Devices AMD.
Most of the outperformance was fueled by a huge surge in tech stocks, especially the mega caps, which have strong balance sheets, durable revenue streams and robust profit margins. They are better positioned to withstand a possible economic downturn (read: 5 ETFs Leading the Tech Outperformance in May).
The “Magnificent Seven” (the term given by Bank of America strategist Michael Hartnett) — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia — saw a huge rally last month. In particular, Nvidia joined the trillion-dollar market capitalization club and became the first chipmaker ever to hit the trillion level.
The rally is further supported by bets that the Fed is nearing the end of its interest rate hiking cycle, a move that would likely be bullish for stocks. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq. It is one of the largest and most popular ETFs in the large-cap space, with AUM of $188.3 billion and an average daily volume of around 48 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Nvidia, AI boom & Chip ETFs).
Below, we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket.
Top-Performing Stocks in QQQ
Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal-processing integrated circuits. The stock makes up for 0.27% share in the QQQ basket and has soared nearly 53% over the past month.
Marvell Technology carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zscaler is one of the world’s leading providers of cloud-based security solutions. The company offers a full range of enterprise network security services, including web security, Internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of Things environments. Zscaler has an estimated earnings growth rate of 123.2% for the fiscal year (ending July 2023).
The stock has soared about 52% in a month and makes up for a 0.13% share in the QQQ basket. Zscaler has a Zacks Rank #3 and a Growth Score of A.
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations, including public cloud, private cloud, on-premise hardware, databases and third-party software. The stock has jumped 19.4% over the past month and accounts for a 0.16% share in the ETF.
Datadog has an estimated earnings growth rate of 19.39% for this year. It has a Zacks Rank #3 and a Growth Score of B.
Nvidia is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The stock has jumped 37% in a month, and its earnings are expected to grow 46.7% for the fiscal year (ending January 2024).
Nvidia makes up for 6.6% of assets in QQQ and has a Zacks Rank #1 (read: Nvidia Hits Trillion-Dollar Market Cap: 5 ETFs to Track).
Advanced Micro Devices has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focus company from a pure-bred consumer-PC chip provider. The stock has rallied about 33% in May and makes up for 1.2% in the QQQ portfolio.
Advanced Micro Devices has a Zacks Rank #3.
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
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Zscaler, Inc. (ZS) : 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.
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Nvidia Corporation NVDA and Advanced Micro Devices AMD. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The artificial intelligence (AI) boom, cooling inflation, bets on Fed’s rate hike pause and better-than-expected earnings drove the stocks higher.
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Nvidia Corporation NVDA and Advanced Micro Devices AMD. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Nvidia makes up for 6.6% of assets in QQQ and has a Zacks Rank #1 (read: Nvidia Hits Trillion-Dollar Market Cap: 5 ETFs to Track).
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Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Nvidia Corporation NVDA and Advanced Micro Devices AMD. Nvidia makes up for 6.6% of assets in QQQ and has a Zacks Rank #1 (read: Nvidia Hits Trillion-Dollar Market Cap: 5 ETFs to Track).
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Nvidia Corporation NVDA and Advanced Micro Devices AMD. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Zscaler, Inc. (ZS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Invesco QQQ QQQ, which serves as a proxy to the Nasdaq Index, jumped 8% in a month.
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79933ee4-02ac-4893-a399-50600e714fe5
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718225.0
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2023-06-02 00:00:00 UTC
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Notable Friday Option Activity: MS, DDOG, NVCR
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DDOG
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-ms-ddog-nvcr
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Morgan Stanley (Symbol: MS), where a total volume of 32,764 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.9% of MS's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $97.50 strike put option expiring June 16, 2023, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $97.50 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) options are showing a volume of 27,619 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.1% of DDOG's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 02, 2023, with 1,688 contracts trading so far today, representing approximately 168,800 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange:
And NovoCure Ltd (Symbol: NVCR) options are showing a volume of 3,603 contracts thus far today. That number of contracts represents approximately 360,300 underlying shares, working out to a sizeable 46.7% of NVCR's average daily trading volume over the past month, of 771,260 shares. Particularly high volume was seen for the $85 strike call option expiring June 16, 2023, with 1,220 contracts trading so far today, representing approximately 122,000 underlying shares of NVCR. Below is a chart showing NVCR's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for MS options, DDOG options, or NVCR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding DUKH
CHCO Dividend History
Funds Holding MLPG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $97.50 strike put option expiring June 16, 2023, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $97.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 27,619 contracts thus far today. Particularly high volume was seen for the $100 strike call option expiring June 02, 2023, with 1,688 contracts trading so far today, representing approximately 168,800 underlying shares of DDOG. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.1% of DDOG's average daily trading volume over the past month, of 5.9 million shares.
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Particularly high volume was seen for the $97.50 strike put option expiring June 16, 2023, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $97.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 27,619 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.1% of DDOG's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: And NovoCure Ltd (Symbol: NVCR) options are showing a volume of 3,603 contracts thus far today.
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Particularly high volume was seen for the $97.50 strike put option expiring June 16, 2023, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $97.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 27,619 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.1% of DDOG's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 02, 2023, with 1,688 contracts trading so far today, representing approximately 168,800 underlying shares of DDOG.
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Particularly high volume was seen for the $100 strike call option expiring June 02, 2023, with 1,688 contracts trading so far today, representing approximately 168,800 underlying shares of DDOG. Particularly high volume was seen for the $97.50 strike put option expiring June 16, 2023, with 1,632 contracts trading so far today, representing approximately 163,200 underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $97.50 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 27,619 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 47.1% of DDOG's average daily trading volume over the past month, of 5.9 million shares.
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d4349296-5e26-4061-9ddf-516d315c6568
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718226.0
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2023-05-31 00:00:00 UTC
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Validea Detailed Fundamental Analysis - DDOG
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DDOG
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-ddog
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nan
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nan
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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 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
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Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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 stock in the Software & Programming industry.
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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).
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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).
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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.
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f9a9df17-5e89-4d6f-bc4b-6181c9c2e5e0
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718227.0
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2023-05-30 00:00:00 UTC
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What Explains Cybersecurity ETF WCBR’s Returns?
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DDOG
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https://www.nasdaq.com/articles/what-explains-cybersecurity-etf-wcbrs-returns
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nan
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nan
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ETF data comes thick and fast every week, but when a signal emerges from the noise, it’s time to listen. The WisdomTree Cybersecurity ETF (WCBR) has returned 4.3% over the last week according to VettaFi on top of a 14.6% return over the last month. With those numbers, WBCR outperformed every other ETF offered by WisdomTree Investments in those time frames. Those robust returns have become a signal worth examining in a somewhat surprising area of investing.
WBCR tracks the WisdomTree Team8 Cybersecurity Index, investing in developed market firms involved in tech security. WCBR starts with about 25 names that pull at least 50% of revenue from cybersecurity with more than 7% growth over three years. The cybersecurity ETF then scores each stock on two factors, revenue growth and focus on the theme. It then overweights high scorers.
SentinelOne (S) stands out as a classic example, an American cybersecurity firm founded just 10 years ago. WCBR weights it at 6.3%, just behind the ever-present tech stock Datadog (DDOG). Interestingly, DDOG does not specifically work in cybersecurity like S but instead focuses on cloud and server tools and services.
That suggests that some of the ETF’s strength has come from diversification as much as in its cybersecurity presence. It also holds cybersecurity-specific names like Fortinet (FTNT) and Crowdstrike (CRWD). The focus in that area makes some sense amid an increase in ransomware cases impacting organizations from private companies to school districts. CRWD and others may also be benefitting from the overall AI boost the tech space has reaped lately.
In some ways, cybersecurity naturally grows in tandem with overall tech growth, with mega-cap tech successful this year. Interestingly, WBCR still has some time to go before hitting its three-year mark. WCBR launched back in 2021, charging 45 basis points. It so far has gathered $30 million in AUM, adding $1 million over the last month thanks entirely to price influence.
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.
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WCBR weights it at 6.3%, just behind the ever-present tech stock Datadog (DDOG). Interestingly, DDOG does not specifically work in cybersecurity like S but instead focuses on cloud and server tools and services. ETF data comes thick and fast every week, but when a signal emerges from the noise, it’s time to listen.
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WCBR weights it at 6.3%, just behind the ever-present tech stock Datadog (DDOG). Interestingly, DDOG does not specifically work in cybersecurity like S but instead focuses on cloud and server tools and services. The WisdomTree Cybersecurity ETF (WCBR) has returned 4.3% over the last week according to VettaFi on top of a 14.6% return over the last month.
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WCBR weights it at 6.3%, just behind the ever-present tech stock Datadog (DDOG). Interestingly, DDOG does not specifically work in cybersecurity like S but instead focuses on cloud and server tools and services. The WisdomTree Cybersecurity ETF (WCBR) has returned 4.3% over the last week according to VettaFi on top of a 14.6% return over the last month.
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WCBR weights it at 6.3%, just behind the ever-present tech stock Datadog (DDOG). Interestingly, DDOG does not specifically work in cybersecurity like S but instead focuses on cloud and server tools and services. The WisdomTree Cybersecurity ETF (WCBR) has returned 4.3% over the last week according to VettaFi on top of a 14.6% return over the last month.
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18d11041-83d3-42d5-997c-c4eb3162ba65
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718228.0
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2023-05-30 00:00:00 UTC
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Top Performing ETFs: Semiconductor ETFs Dominate
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DDOG
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https://www.nasdaq.com/articles/top-performing-etfs%3A-semiconductor-etfs-dominate
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nan
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nan
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If you haven’t been under a rock, you likely watched Nvidia (NVDA) soar last week. The firm’s significant earnings beat and the promise of AI use in its future work sent its stock price swooning. That proved to be the key theme for ETFs over the last week, too, as semiconductor ETFs dominated in returns. While some had previously held concerns that semiconductor firms had grown too expensive, that failed to limit semiconductor ETF returns.
[caption id="attachment_520178" align="aligncenter" width="624"] Semiconductor ETFs dominated over the last week per LOGICLY[/caption]
The VanEck Semiconductor ETF (SMH) took the top spot, returning 12.3% for the week. SMH tracks the MVIS US Listed Semiconductor 25 index and charges 35 basis points (bps) to do so. SMH has a significant lean towards the biggest names in the space, and NVDA of course takes the top spot at a 15.15% weight. Only Taiwan Semiconductor Manufacturing (TSM) joins NVDA at a double-digit weight in SMH at 11.3%. SMH has added a robust $605 million in net inflows over the last month, as well.
Several other leading semiconductor ETFs join SMH in this past week’s top performers list. The iShares Semiconductor ETF (SOXX) and the Invesco PHLX Semiconductor ETF (SOXQ) returned about the same, 11.6% over the last week according to LOGICLY. SOXQ charges a much lower fee at 19 bps, though it just launched in 2021. SOXX charges more at 35 bps but has more than two decades of operation under its belt. SOXX also weights NVDA higher than SOXQ, with NVDA the top-weighted stock in the former ETF.
Semiconductor ETFs took the vast majority of the top spots, but not all are explicitly focused on the powerful chips. The AXS Esoterica NextG Economy ETF (WUGI) invests in the 5G-enabled digital economy in both developed and emerging markets. Focused on communications, WUGI does hold NVDA at 14.2%, its top holding, but also firms like Snowflake (SNOW) and Datadog (DDOG). Charging 75 bps for its active approach, WUGI returned 10.3% over the last week.
NVDA led the way for all the ETFs over the last week, and with the firm hitting new heights, investors will be watching for more semiconductor action.
For more news, information, and analysis, visit the Beyond Basic Beta Channel.
Visualizations and data provided by LOGICLY, which is a wholly owned subsidiary of VettaFi.
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.
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Focused on communications, WUGI does hold NVDA at 14.2%, its top holding, but also firms like Snowflake (SNOW) and Datadog (DDOG). The firm’s significant earnings beat and the promise of AI use in its future work sent its stock price swooning. SMH has a significant lean towards the biggest names in the space, and NVDA of course takes the top spot at a 15.15% weight.
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Focused on communications, WUGI does hold NVDA at 14.2%, its top holding, but also firms like Snowflake (SNOW) and Datadog (DDOG). [caption id="attachment_520178" align="aligncenter" width="624"] Semiconductor ETFs dominated over the last week per LOGICLY[/caption] The VanEck Semiconductor ETF (SMH) took the top spot, returning 12.3% for the week. Several other leading semiconductor ETFs join SMH in this past week’s top performers list.
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Focused on communications, WUGI does hold NVDA at 14.2%, its top holding, but also firms like Snowflake (SNOW) and Datadog (DDOG). That proved to be the key theme for ETFs over the last week, too, as semiconductor ETFs dominated in returns. [caption id="attachment_520178" align="aligncenter" width="624"] Semiconductor ETFs dominated over the last week per LOGICLY[/caption] The VanEck Semiconductor ETF (SMH) took the top spot, returning 12.3% for the week.
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Focused on communications, WUGI does hold NVDA at 14.2%, its top holding, but also firms like Snowflake (SNOW) and Datadog (DDOG). [caption id="attachment_520178" align="aligncenter" width="624"] Semiconductor ETFs dominated over the last week per LOGICLY[/caption] The VanEck Semiconductor ETF (SMH) took the top spot, returning 12.3% for the week. The iShares Semiconductor ETF (SOXX) and the Invesco PHLX Semiconductor ETF (SOXQ) returned about the same, 11.6% over the last week according to LOGICLY.
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6f836c9f-f36f-468e-88d1-bce9c9749b40
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718229.0
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2023-05-30 00:00:00 UTC
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5 Best-Performing Stocks of the Top ETF of May
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DDOG
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https://www.nasdaq.com/articles/5-best-performing-stocks-of-the-top-etf-of-may-0
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nan
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nan
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The Spear Alpha ETF SPRX topped the list of the best-performing U.S. equity ETFs in May, gaining 28.3%. The rally was driven by the hype surrounding artificial intelligence (AI) and investors’ flight to mega-cap tech stocks, which bolstered the overall tech sector.
Although most of the stocks in SPRX’s portfolio have delivered strong returns, a few have gained more than 35%. These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Advanced Micro Devices AMD and Cloudflare Inc. NET.
Based on data from BofA Global Investment Strategy, U.S. tech stocks are enjoying their greatest outperformance, relative to the S&P 500, in 97 years (read: Tech ETFs Burning Hot on AI-Fueled Nvidia Surge).
Investors are now more confident in the sector's ability to deliver strong growth. This is especially true as mega-cap tech stocks have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn. Additionally, some high-profile tech companies have demonstrated improved cost discipline, leading to better-than-expected earnings improvement.
Additionally, AI has emerged as a significant driver of mega-cap tech's outperformance in recent weeks. The tech leadership is further supported by moderating U.S. inflation and bets that the Fed is nearing the end of its interest rate hiking cycle. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.
Further, the sector outlook remains solid given that the global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally.
Let’s take a closer look at the fundamentals of SPRX.
SPRX in Focus
The Spear Alpha ETF is an actively managed fund that invests in companies poised to benefit from breakthrough trends in industrial technology. The ETF’s objective is to find underappreciated opportunities across different industrial supply chains that are beneficiaries of secular themes such as enterprise digitalization, automation & robotics, artificial intelligence, environmental focus and decarbonization, photonics and additive manufacturing, and space exploration. The Spear Alpha ETF holds 23 stocks in its basket.
The Spear Alpha ETF has accumulated $4.1 million in its asset base and charges 75 bps in annual fees. It trades in an average daily volume of 4,000 shares (read: Tech ETFs Roaring to New 52-Week Highs).
Below we have highlighted the abovementioned five stocks in the ETF with their respective positions in the fund’s basket:
Best Performing Stocks of SPRX
Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal-processing integrated circuits. The stock makes up for 6.69% share in the SPRX basket and has soared 64% over the past month.
Marvell Technology carries a Zacks Rank #3 (Hold) and has a Growth Score of B. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Zscaler is one of the world’s leading providers of cloud-based security solutions. The company offers a full range of enterprise network security services, including web security, Internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of Things environments. Zscaler has an estimated earnings growth rate of 123.2% for fiscal year (ending July 2023).
The stock has soared about 47.2% in a month and makes up for an 8.6% share in the SPRX basket. Zscaler has a Zacks Rank #3 and a Growth Score of B.
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations, including public cloud, private cloud, on-premise hardware, databases and third-party software. The stock has jumped 42.5% over the past month and accounts for a 3.1% share in the ETF.
Datadog has an estimated earnings growth rate of 19.39% for this year. It has a Zacks Rank #3 and a Growth Score of B.
Advanced Micro Devices has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focus company from a pure-bred consumer-PC chip provider. The stock has rallied 41.6% in May and makes up for 8.66% in the SPRX portfolio.
Advanced Micro Devices has a Zacks Rank #3 (read: 3 Reasons to Bet On Semiconductor ETFs Now).
Cloudflare platform protects and accelerates any Internet application online without adding hardware, installing software or changing a line of code. The stock jumped 36.7% and accounts for 8.04% share in the ETF.
Cloudflare has an estimated earnings growth rate of 153.8% for this year and carries a Zacks Rank #3.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Spear Alpha ETF (SPRX): ETF Research Reports
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.
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Advanced Micro Devices AMD and Cloudflare Inc. NET. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Spear Alpha ETF (SPRX): ETF Research Reports To read this article on Zacks.com click here. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally.
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Advanced Micro Devices AMD and Cloudflare Inc. NET. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Spear Alpha ETF (SPRX): ETF Research Reports To read this article on Zacks.com click here. SPRX in Focus The Spear Alpha ETF is an actively managed fund that invests in companies poised to benefit from breakthrough trends in industrial technology.
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Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Spear Alpha ETF (SPRX): ETF Research Reports To read this article on Zacks.com click here. These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Advanced Micro Devices AMD and Cloudflare Inc. NET. Based on data from BofA Global Investment Strategy, U.S. tech stocks are enjoying their greatest outperformance, relative to the S&P 500, in 97 years (read: Tech ETFs Burning Hot on AI-Fueled Nvidia Surge).
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These include Marvell Technology MRVL, Zscaler ZS, Datadog DDOG, Advanced Micro Devices AMD and Cloudflare Inc. NET. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Spear Alpha ETF (SPRX): ETF Research Reports To read this article on Zacks.com click here. The Spear Alpha ETF holds 23 stocks in its basket.
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402c27da-c387-423b-9a35-514d7a2bcb89
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718230.0
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2023-05-30 00:00:00 UTC
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A Bull Market Is Coming -- 2 Growth Stocks to Buy Before It Gets Here
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DDOG
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https://www.nasdaq.com/articles/a-bull-market-is-coming-2-growth-stocks-to-buy-before-it-gets-here
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nan
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nan
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The technology sector of the stock market is off to a roaring start in 2023, with the Nasdaq-100 index gaining 25% so far, but it's still down from where it was in early 2022. After a 33% drop in 2022, some investors are still wary of the Nasdaq-100 bear market, but the index has an impeccable track record of bouncing back following a down year. In fact, it has only declined in consecutive years on one occasion dating back to 1986, and that was during the dot-com tech bust from 2000 to 2002.
Therefore, it appears likely the index's recent surge is a precursor to the next bull market. Here are two stocks to buy before it gets here.
1. Datadog
Nearly all businesses are using cloud computing technology. But larger, more complex organizations lean on it more heavily to connect their global teams, streamline workflows, and run their digital sales channels. As a result, they're faced with significant challenges when it comes to managing data and monitoring all of that cloud infrastructure, which is why they're flocking to Datadog (NASDAQ: DDOG).
Datadog is the ultimate cloud monitoring tool; it crawls a company's networks around the clock searching for bugs and technical issues. If, for example, a particular webpage is down in just one country, Datadog alerts the business to immediately implement a fix. If that same business relied upon manual processes, it may have been days or weeks before the problem was spotted -- or worse, it might have only found out upon receiving customer complaints.
Datadog is used by 25,500 businesses across several different industries, from real estate technology company Zillow Group to entertainment and streaming giant Comcast. Wherever complex cloud networks exist, Datadog has a potential customer.
At the end of the first quarter, there were 2,910 Datadog customers spending a minimum of $100,000 per year. That was a 29% year-over-year increase, which further highlights the growing demand for cloud monitoring tools among large organizations. Datadog's Q1 revenue came in at $482 million, up 33% and well above its guidance. As a result, the company increased its 2023 full-year revenue forecast to $2.1 billion (from $2.09 billion previously).
An estimate by Grand View Research suggests the cloud industry's revenue will grow by 151% over the next seven years, reaching more than $1.5 trillion by 2030. That means the number of companies requiring cloud monitoring tools will likely grow just as quickly, which is great news for Datadog.
Since the stock currently trades 51% below its all-time high amid the broader tech bear market, now could be a great time for investors to buy in.
2. Tenable
Fifteen years ago, most of a company's critical infrastructure was stored physically on-site, and valuable digital assets were saved locally as opposed to online. Since it's so cost effective to use large providers of cloud services now, organizations are vulnerable to attacks around the clock.
That's where Tenable (NASDAQ: TENB) comes in. It's the leading provider of vulnerability management software in the cybersecurity industry, serving more than 40,000 businesses worldwide. The company offers a broad solution called Nessus, which can be customized to suit the needs of any organization. The company says it is the most accurate vulnerability management tool in the industry, and it also offers more coverage than all of its competitors by protecting against over 76,000 common vulnerabilities and exposures.
Tenable also offers a range of industry-specific software for businesses operating in everything from automotive manufacturing to retail to healthcare. The company says a single minute of downtime for a carmaker can result in a $22,000 loss, and 82% of them have experienced at least four hours of downtime over a 12-month period -- that's why advanced cybersecurity tools are so important.
At the end of the first quarter, Tenable had 1,444 customers spending a minimum of $100,000 annually, up from 1,112 a year ago. Like in Datadog's case, this points to growing demand from larger organizations using more complex cloud networks. The company delivered $189 million in revenue in Q1, up 18% year over year and above its guidance. However, it reduced its full-year revenue forecast from $810 million to $785 million amid challenging economic conditions, including inflation.
However, Tenable is trying to expand its addressable market with its brand-new Tenable One platform, an all-in-one product targeting large companies seeking to consolidate their cybersecurity stack with one provider. Over the long term, this should offer a boost to the company's growth.
With Tenable stock down 38% from its all-time high, investors might want to take this opportunity to buy in.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Zillow Group. The Motley Fool recommends Comcast. 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.
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As a result, they're faced with significant challenges when it comes to managing data and monitoring all of that cloud infrastructure, which is why they're flocking to Datadog (NASDAQ: DDOG). But larger, more complex organizations lean on it more heavily to connect their global teams, streamline workflows, and run their digital sales channels. Since the stock currently trades 51% below its all-time high amid the broader tech bear market, now could be a great time for investors to buy in.
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As a result, they're faced with significant challenges when it comes to managing data and monitoring all of that cloud infrastructure, which is why they're flocking to Datadog (NASDAQ: DDOG). That was a 29% year-over-year increase, which further highlights the growing demand for cloud monitoring tools among large organizations. As a result, the company increased its 2023 full-year revenue forecast to $2.1 billion (from $2.09 billion previously).
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As a result, they're faced with significant challenges when it comes to managing data and monitoring all of that cloud infrastructure, which is why they're flocking to Datadog (NASDAQ: DDOG). Datadog is the ultimate cloud monitoring tool; it crawls a company's networks around the clock searching for bugs and technical issues. That means the number of companies requiring cloud monitoring tools will likely grow just as quickly, which is great news for Datadog.
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As a result, they're faced with significant challenges when it comes to managing data and monitoring all of that cloud infrastructure, which is why they're flocking to Datadog (NASDAQ: DDOG). It's the leading provider of vulnerability management software in the cybersecurity industry, serving more than 40,000 businesses worldwide. Like in Datadog's case, this points to growing demand from larger organizations using more complex cloud networks.
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d29507a0-bb8e-4c9c-a560-b23e8d9ce88f
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718231.0
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2023-05-27 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-12
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nan
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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.
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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).
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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).
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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.
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02bf8eef-9e8a-4653-b35a-cfb2456498f2
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718232.0
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2023-05-26 00:00:00 UTC
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Is It Too Late to Buy Datadog Stock?
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DDOG
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-datadog-stock
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nan
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nan
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Shares of Datadog (NASDAQ: DDOG) set the market on fire this month with terrific gains of 42% so far, with the company's first-quarter 2023 results, which were released on May 4, playing a key role in its breakout.
Datadog stock is now up 26% in 2023 thanks to its latest rally. The stock underperformed the market in the past year thanks to concerns that its growth is slowing. But it looks like investors have now realized the company's robust long-term potential and are focusing on the bigger picture, which explains why the stock shot up remarkably following the company's earnings report.
Does this mean investors who didn't buy into Datadog's rally this month missed an opportunity to buy this fast-growing company at an attractive valuation? Let's find out.
Datadog stock is trading at a rich multiple
Datadog stock now trades at 16.4 times sales. It is worth noting that its shares were trading at less than 12 times sales at the beginning of May before the rally began.
DDOG PS Ratio data by YCharts
So, the stock wasn't cheap even before its latest rally considering that the S&P 500 index sports an average price-to-sales ratio of 2.4. But then, Datadog has tended to trade at rich multiples over the past three years, as evident from the chart below.
DDOG PS Ratio data by YCharts
The chart above suggests investors are getting a relatively good deal on Datadog even after its red-hot rally this month, and they may want to take this opportunity before this cloud stock flies higher.
The cloud specialist is at the beginning of a massive growth curve
Datadog's first-quarter revenue increased 33% year over year to $482 million, surpassing the consensus estimate of $470 million. The company's non-GAAP net income came in at $0.28 per share, up from $0.24 per share last year and well ahead of analysts' expectations of $0.23 per share.
The company's impressive year-over-year growth was driven by a solid jump in its customer base as well as an improvement in customer spending. More specifically, Datadog finished the quarter with 25,500 customers, up 29% from the prior-year period. Additionally, the number of customers who generate at least $100,000 in annual recurring revenue (ARR) for Datadog increased by 29% to just over 2,900.
The company also finished the quarter with a dollar-based net retention rate of more than 130%. As this metric compares the revenue generated by Datadog's customer base at the end of a particular period to the revenue generated by the same customer cohort in the year-ago quarter, a reading of more than 100% suggests that the adoption of its cloud monitoring and security applications improved.
This is also evident from the fact that the percentage of customers using six or more Datadog products increased to 19% last quarter, up from 12% in the year-ago quarter. The percentage of customers using four or more products increased by 8 percentage points to 43%.
It is not surprising to see why Datadog has been successfully attracting new customers and is also winning a stronger share of their wallets. The company provides multiple solutions for monitoring cloud infrastructure, including network performance, device monitoring, database monitoring, cloud security management, and application security management, among others.
So, the growth in spending on cloud solutions should ideally lead to an improvement in the company's addressable market. Datadog points out that cloud spending could jump from an estimated $500 billion last year to $1 trillion by 2026. As a result, its total addressable market is expected to jump from $41 billion in 2022 to $62 billion in 2026.
Given that Datadog generated $1.8 billion in revenue in the trailing 12 months, it is easy to see that the company's terrific growth is likely here to stay for a long time.
It isn't too late to buy this potential long-term winner
The massive addressable market on which Datadog sits is reflected in the company's outlook as well. Management expects Datadog to deliver $2.1 billion in revenue in 2023, which would be a 25% jump over last year. More importantly, its top-line growth is expected to accelerate in 2024 and 2025 as compared to this year.
DDOG Revenue Estimates for Current Fiscal Year data by YCharts
Assuming Datadog does manage to hit $3.5 billion in revenue for 2025 and continues to trade at 16 times sales as it does now, its market cap could hit $56 billion. That would translate into an 86% upside over the next three years compared to the company's current market cap of $30 billion. So, investors looking for a growth stock can still buy Datadog, as its hot rally seems here to stay.
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 May 22, 2023
Harsh Chauhan 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Datadog (NASDAQ: DDOG) set the market on fire this month with terrific gains of 42% so far, with the company's first-quarter 2023 results, which were released on May 4, playing a key role in its breakout. DDOG PS Ratio data by YCharts The chart above suggests investors are getting a relatively good deal on Datadog even after its red-hot rally this month, and they may want to take this opportunity before this cloud stock flies higher. DDOG PS Ratio data by YCharts So, the stock wasn't cheap even before its latest rally considering that the S&P 500 index sports an average price-to-sales ratio of 2.4.
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DDOG Revenue Estimates for Current Fiscal Year data by YCharts Assuming Datadog does manage to hit $3.5 billion in revenue for 2025 and continues to trade at 16 times sales as it does now, its market cap could hit $56 billion. Shares of Datadog (NASDAQ: DDOG) set the market on fire this month with terrific gains of 42% so far, with the company's first-quarter 2023 results, which were released on May 4, playing a key role in its breakout. DDOG PS Ratio data by YCharts So, the stock wasn't cheap even before its latest rally considering that the S&P 500 index sports an average price-to-sales ratio of 2.4.
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DDOG Revenue Estimates for Current Fiscal Year data by YCharts Assuming Datadog does manage to hit $3.5 billion in revenue for 2025 and continues to trade at 16 times sales as it does now, its market cap could hit $56 billion. Shares of Datadog (NASDAQ: DDOG) set the market on fire this month with terrific gains of 42% so far, with the company's first-quarter 2023 results, which were released on May 4, playing a key role in its breakout. DDOG PS Ratio data by YCharts So, the stock wasn't cheap even before its latest rally considering that the S&P 500 index sports an average price-to-sales ratio of 2.4.
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DDOG Revenue Estimates for Current Fiscal Year data by YCharts Assuming Datadog does manage to hit $3.5 billion in revenue for 2025 and continues to trade at 16 times sales as it does now, its market cap could hit $56 billion. Shares of Datadog (NASDAQ: DDOG) set the market on fire this month with terrific gains of 42% so far, with the company's first-quarter 2023 results, which were released on May 4, playing a key role in its breakout. DDOG PS Ratio data by YCharts So, the stock wasn't cheap even before its latest rally considering that the S&P 500 index sports an average price-to-sales ratio of 2.4.
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06ec3d70-f037-48bd-b6e4-dad664ac23ea
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718233.0
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2023-05-25 00:00:00 UTC
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3 Cloud Computing Stocks to Buy for Sky-High Returns
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DDOG
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https://www.nasdaq.com/articles/3-cloud-computing-stocks-to-buy-for-sky-high-returns
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
All the talk seems to be about AI stocks and not the best cloud computing stocks. Despite the trendiness of the former group, the latter remains quite attractive. Growth rates have been strong and many firms are profitable. Instead of focusing solely on artificial intelligence, investors should be looking for cloud computing stocks to buy too.
Cloud-computing was a key investing theme, but it’s taken a back seat to AI and other trends in recent years. Still, it’s been a consistent and durable trend in tech that’s generated strong returns for investors over the years.
Many mega-cap companies have latched onto the cloud, which helped propel them to trillion-dollar valuations. While these are some of the top cloud computing stocks, many other smaller names with plenty of potential still exist.
Let’s look at a few of these cloud computing stocks for sky-high returns.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
On the heels of Nvidia (NASDAQ:NVDA) reporting blowout earnings, Snowflake (NYSE:SNOW) announced what many investors consider to be a disappointing report. While the company delivered a top- and bottom-line beat, guidance disappointed investors.
Management now expects product revenue to come in at roughly $2.6 billion, below their previous view and consensus expectations of $2.71 billion.
That all said, the growth rate for this firm remains robust while its valuation has come down considerably.
At one point, shares were trading for well over 100 times revenue while sporting a market cap of $130 billion. Now trading near $150 after earnings, the company sports a market cap of less than $50 billion and trades at 19 times this year’s revenue estimate.
Don’t get me wrong, it’s still expensive on a price-to-sales basis. However, the growth rate helps make up for it. Analysts expect 33% to 39% annual revenue growth for the next three years, while the firm pushes into profitability. Last quarter, Snowflake generated free cash flow of almost $300 million, so you can see that there’s potential.
DigitalOcean (DOCN)
Source: monticello / Shutterstock.com
Snowflake weighs in with a market capitalization of about $50 billion, while DigitalOcean (NYSE:DOCN) is much smaller with a market cap of just $3 billion. I really like this firm, as it continues to churn out solid revenue growth while focusing on the bottom line.
There are environments to let costs run and focus on revenue growth and there are times — like lately — to grow revenue as best as possible while keeping costs controlled. DigitalOcean’s management has done a great job at controlling costs while generating solid revenue growth.
What does the company do? “DigitalOcean simplifies cloud computing so developers and businesses can spend more time building software that changes the world.” It caters to small- and medium-sized firms and so far, has generated a pretty impressive growth rate over the years.
As DigitalOcean’s profitability improves, so too does its valuation. When the environment improves, we have to assume the stock will enjoy further upside.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) has a $30 billion market cap. Because of its size and valuation, many would consider it a high-risk, high-reward stock. However, it’s a name that growth investors should keep on their radar.
After teetering on key support and flirting with making new lows, the stock is up about 50% in just a few weeks. That move came after the firm reported earnings. Specifically, the company delivered an earnings and revenue beat and issued impressive Q2 and full-year guidance.
Despite the big rally though, Datadog remains well off its highs, down more than 53% from the all-time high. If shares were to revisit this level, it would equate to a more than 100% return from current levels.
One cool thing? Analysts expect accelerating revenue growth for each of the next three years. On a non-GAAP basis, the firm’s profitable too, which is an encouraging development.
On the date of publication, Bret Kenwell held a long position in DOCN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Cloud Computing Stocks to Buy for Sky-High Returns 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.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has a $30 billion market cap. Cloud-computing was a key investing theme, but it’s taken a back seat to AI and other trends in recent years. DigitalOcean’s management has done a great job at controlling costs while generating solid revenue growth.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has a $30 billion market cap. Now trading near $150 after earnings, the company sports a market cap of less than $50 billion and trades at 19 times this year’s revenue estimate. DigitalOcean’s management has done a great job at controlling costs while generating solid revenue growth.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has a $30 billion market cap. InvestorPlace - Stock Market News, Stock Advice & Trading Tips All the talk seems to be about AI stocks and not the best cloud computing stocks. Now trading near $150 after earnings, the company sports a market cap of less than $50 billion and trades at 19 times this year’s revenue estimate.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) has a $30 billion market cap. InvestorPlace - Stock Market News, Stock Advice & Trading Tips All the talk seems to be about AI stocks and not the best cloud computing stocks. Growth rates have been strong and many firms are profitable.
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c0814511-2d83-40a8-8cba-50efaccc2eb6
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718234.0
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2023-05-25 00:00:00 UTC
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1 Top Cloud Infrastructure Stock You Need to Keep on Your Radar
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DDOG
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https://www.nasdaq.com/articles/1-top-cloud-infrastructure-stock-you-need-to-keep-on-your-radar
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nan
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nan
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Companies like Dynatrace (NYSE: DT), whose software provides cloud infrastructure management, have been predicting for a long time that software was going to grow in complexity by an order of magnitude. Here we are in 2023, and generative AI is all the rage. Services like ChatGPT are indeed mind-bogglingly complicated to develop, requiring new hardware and massive amounts of data to be stored, moved, and processed. Dynatrace's software, which provides cloud observability and application security, remains in high demand, despite a myriad of economic worries hurting many of its customers.
After it capped off an epic year, here's why you need to keep this stock on your radar.
Is generative AI really a game changer?
Dynatrace topped its own expectations for fiscal 2023 (ending in March 2023). Total revenue jumped 25% higher year over year, or 29% when excluding negative currency-exchange rates, to $1.16 billion. Free cash flow (FCF) was $333 million, a very healthy FCF profit margin of 29%.
But enough of the numbers; what about AI? As could be expected from the CEO of a cloud software company, Dynatrace's Rick McConnell weighed in on the latestearnings callabout how new generative-AI services like ChatGPT are affecting customer plans. In response to a question, McConnell said: "Generative AI, from our point of view, is really all about productivity, whether writing text or developing code, whatever it might be. And we see it over the long haul as being upwards of a 10x multiplier in software development efficiency."
The cloud has changed businesses because it means greater operational efficiency and deeper and actionable insights from data. And generative AI -- at this point usually hosted in a cloud environment (a remote data center and accessed via the web) -- is now supercharging that productivity.
But there's one problem. As McConnell also said, AI further complicates the development and delivery of software products, sometimes exponentially so. With many companies -- especially large, lumbering organizations -- still getting their arms wrapped around the cloud, this new breed of AI isn't going to make things any easier.
Thus, recent AI developments will only further emphasize Dynatrace's importance to a large cloud environment. Software that can help a large business manage the health of its IT operations, make tweaks and fixes, and keep software secure will remain in high demand in this new era of computing technology.
And Dynatrace focuses on only the largest organizations in the world. Its solutions are "old school" AI aimed at automation, but with data and software only getting bigger, this older type of artificial intelligence will be a staple.
Strength amid economic troubles
Perhaps the best indication that this company is the real deal is its financial guidance for the next year. The economy is in a slump, and some investors and pundits argue a recession is already here or looming. Even the fast-growing cloud industry has hit the skids as many customers slow down their tech plans to manage their spending amid the uncertainty.
With this as a backdrop, Dynatrace is anticipating revenue growth of 20% to 21% for fiscal 2024 (ending in March 2024). FCF profit margin is expected to be 22% -- about $308 million at the midpoint of guidance -- lower than the last year primarily due to a higher tax rate.
Given the state of the global economy and how large businesses are being extra cautious before they spend right now, I'd say that's pretty good guidance. It's also worth noting that Dynatrace sandbagged with its guidance in fiscal 2023 and handily outperformed (it had anticipated revenue growth of as much as 22% last August). Perhaps something similar will happen again in fiscal 2024.
Dynatrace's stated commitment to growing its business profitably puts the stock on the top shelf, at least in my book. Peers in the cloud infrastructure observability sector have had some difficulty striking this balance between growth and cash profits in years past.
Also, Dynatrace has a completely squeaky-clean balance sheet, having paid off the rest of its debt in the quarter ($555 million in cash and short-term investments). Given the current state of the economy, I still like Dynatrace stacked up against other top names like Splunk (NASDAQ: SPLK) and Datadog (NASDAQ: DDOG).
Data by YCharts.
Dynatrace currently trades for 46 times expected fiscal 2024 FCF. It's without a doubt a premium-priced stock. Just a few months ago, the valuation was much closer to a fair price, so I'm not inclined to add to my existing position at this juncture.
But with new types of AI possibly poised to ramp up cloud complexity in the coming years, Dynatrace is a company you need to keep on your radar if you are interested in cloud computing. I for one am happy to keep holding my position in this stock for the long term.
10 stocks we like better than Dynatrace
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 Dynatrace 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 May 22, 2023
Nicholas Rossolillo and his clients have positions in Dynatrace. The Motley Fool has positions in and recommends Datadog and Splunk. 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.
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Given the current state of the economy, I still like Dynatrace stacked up against other top names like Splunk (NASDAQ: SPLK) and Datadog (NASDAQ: DDOG). Dynatrace's software, which provides cloud observability and application security, remains in high demand, despite a myriad of economic worries hurting many of its customers. As could be expected from the CEO of a cloud software company, Dynatrace's Rick McConnell weighed in on the latestearnings callabout how new generative-AI services like ChatGPT are affecting customer plans.
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Given the current state of the economy, I still like Dynatrace stacked up against other top names like Splunk (NASDAQ: SPLK) and Datadog (NASDAQ: DDOG). Dynatrace's software, which provides cloud observability and application security, remains in high demand, despite a myriad of economic worries hurting many of its customers. As could be expected from the CEO of a cloud software company, Dynatrace's Rick McConnell weighed in on the latestearnings callabout how new generative-AI services like ChatGPT are affecting customer plans.
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Given the current state of the economy, I still like Dynatrace stacked up against other top names like Splunk (NASDAQ: SPLK) and Datadog (NASDAQ: DDOG). Companies like Dynatrace (NYSE: DT), whose software provides cloud infrastructure management, have been predicting for a long time that software was going to grow in complexity by an order of magnitude. But with new types of AI possibly poised to ramp up cloud complexity in the coming years, Dynatrace is a company you need to keep on your radar if you are interested in cloud computing.
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Given the current state of the economy, I still like Dynatrace stacked up against other top names like Splunk (NASDAQ: SPLK) and Datadog (NASDAQ: DDOG). As could be expected from the CEO of a cloud software company, Dynatrace's Rick McConnell weighed in on the latestearnings callabout how new generative-AI services like ChatGPT are affecting customer plans. See the 10 stocks *Stock Advisor returns as of May 22, 2023 Nicholas Rossolillo and his clients have positions in Dynatrace.
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6dca4756-2175-4e30-9694-90af71093485
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718235.0
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2023-05-25 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-11
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nan
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nan
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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 value 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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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 value stock in the Software & Programming industry.
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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).
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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).
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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.
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a8eca4f5-0aa0-4af5-acb9-f51568060ca6
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718236.0
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2023-05-25 00:00:00 UTC
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2 Magnificent Growth Stocks Billionaires Can't Stop Buying and 1 They're Avoiding
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DDOG
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https://www.nasdaq.com/articles/2-magnificent-growth-stocks-billionaires-cant-stop-buying-and-1-theyre-avoiding
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nan
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nan
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There's no question that the amount of data thrown at investors can, at times, feel overwhelming. Cramming thousands of earnings reports into a span of eight weeks, along with a constant barrage of economic data, can make it tough to weed out what's important.
Less than two weeks ago, one of the most important data releases of the quarter occurred -- and there's a real possibility you missed it. Monday, May 15 marked the deadline for institutional money managers to file Form 13F with the Securities and Exchange Commission for the first quarter.
Image source: Getty Images.
A 13F is a filing that provides an under-the-hood look at what money managers with a minimum of $100 million in assets under management purchased, sold, and held in the latest quarter. Although 13Fs can be filed 45 days following the end of a quarter and therefore contain dated material, they can still provide clues as to what sectors, industries, trends, and stocks are piquing the interest of Wall Street's most successful investors.
During the first quarter, 13Fs show that billionaire money managers were quite active in their trading activity in a number of high-profile growth stocks. What follows are two magnificent growth stocks billionaires can't stop buying, as well as one fast-paced company they're pretty clearly avoiding.
Magnificent growth stock No. 1 billionaire investors can't stop buying: Alphabet
The first phenomenal growth stock billionaires haven't been able to get enough of is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of familiar internet search engine Google, as well as streaming platform YouTube and autonomous-vehicle company Waymo.
Take a deep breath (even if you aren't reading out loud), because the list of billionaire buyers for Alphabet during the first quarter is long. It includes:
Dan Loeb's Third Point
Philippe Laffont's Coatue Management
Chase Coleman's Tiger Global Management
Bill Ackman's Pershing Square Capital Management
Steven Cohen's Point72 Asset Management
Ray Dalio's Bridgewater Associates
Israel Englander's Millennium Management.
In the order listed above, these seven billionaires respectively purchased approximately 4.75 million shares, 4.64 million shares, 4.64 million shares, 2.19 million shares, 2.15 million shares, 1.56 million shares, and 1.56 million shares of Google Class A stock (GOOGL) in the first quarter.
The bullishness surrounding Alphabet more than likely has to do with the company's competitive moat and ongoing innovation. In terms of the former, Google has accounted for no less than 90% of global internet search share since April 2015. Advertisers understand that their best chance of getting their message in front of consumers is using Google, which is what gives the company such impressive ad-pricing power.
However, innovation is what'll power Alphabet's operating income and cash flow higher over the long run. A perfect example would be the rapid growth of cloud infrastructure service segment Google Cloud. Tech analysis company Canalys estimates Google Cloud accounted for 9% of worldwide cloud infrastructure spending in the first quarter. This makes Google Cloud No. 3 in cloud service spending worldwide.
More importantly, enterprise cloud spending is still in its early stages. Between the long-term, double-digit growth potential offered by cloud spending and the fact that Google Cloud reversed a year-ago loss and generated an operating profit in the first quarter, this segment has the potential to be the company's leading cash-flow driver by the end of the decade.
The icing on the cake for billionaires is Alphabet's valuation. Since the company tends to reinvest a lot of its operating cash flow, the price-to-cash-flow ratio tends to be a better measure of value than the traditional price-to-earnings ratio. Alphabet is nearly as cheap as it's ever been as a publicly traded company, relative to consensus future cash-flow estimates from Wall Street.
Magnificent growth stock No. 2 billionaire investors can't stop buying: Datadog
A second glorious growth stock that captivated the attention and wallets of billionaires during the first quarter is cloud-based software-as-a-service (SaaS) observability company Datadog (NASDAQ: DDOG).
While the list of billionaire buyers for Datadog isn't quite as long as Alphabet, there are a number of well-recognized, high-profile investors on this list. Datadog's billionaire investors include:
Chase Coleman of Tiger Global
Ken Griffin of Citadel Advisors
John Overdeck and David Siegel of Two Sigma Investments
Jim Simons of Renaissance Technologies
Jeff Yass of Susquehanna International
In order, these billionaires respectively added roughly 1.68 million shares, 1.18 million shares, 1.04 million shares, 996,000 shares, and 200,000 shares of Datadog stock.
There seems to be both macroeconomic and company-specific factors that attracted billionaires to Datadog during the first quarter.
On the macro front, Datadog is benefiting from a seemingly permanent shift in the labor market following the COVID-19 pandemic. Although some people have returned to the office, more workers than ever before are choosing to stay remote. This has dramatically increased the need for application monitoring and public/private cloud protection.
But in a similar fashion to Alphabet, one of Datadog's biggest company-specific growth drivers is growth in enterprise cloud spending. According to Gartner, enterprise cloud spend as a percentage of global infrastructure technology spending is forecast to grow from 8% to 20% between 2021 and 2026. Datadog is an SaaS-driven business, so increased enterprise cloud spending/usage plays right into the company's growth strategy.
Another factor that likely tempted billionaires to buy shares of Datadog in the first quarter is the company's ability to attract high-dollar clients and improve add-on sales. Although total customer count has nearly quintupled since the end of 2017, Datadog's big clients are what's moving the needle. Since the end of 2017, the number of customers accounting for at least $100,000 in annual recurring revenue jumped from 236 to 2,910.
Furthermore, the percentage of customers using four or more products has jumped 18 percentage points to 43% over the trailing-two-year period, ended March 2023.
Image source: Getty Images.
The high-profile growth stock billionaires are avoiding: Airbnb
However, not all magnificent growth stocks were buys for billionaires during the first quarter. Hosting and travel platform Airbnb (NASDAQ: ABNB) is the perfect example of a fast-paced company that billionaires are clearly avoiding.
Based on 13F filings, five billionaire fund managers reduced or completely sold out of their positions in Airbnb. This includes:
Jim Simons of Renaissance Technologies
John Overdeck and David Siegel of Two Sigma Investments
Israel Englander of Millennium Management
Steven Cohen of Point72 Asset Management
In order, these billionaires sold around 2.55 million shares, 2.1 million shares, 1.16 million shares, and 315,000 shares of Airbnb stock. Cohen exited his fund's position completely, while Overdeck/Siegel and Englander cut their respective fund's stakes by close to 90%.
Why are billionaires booking the exit instead of focusing on Airbnb's bookings growth? One answer could be the company's somewhat rich valuation. Airbnb bounced back nicely from the COVID-19 pandemic and finds itself valued at 35 times trailing-12-month earnings and roughly 8 times the $8.4 billion in sales generated last year.
While this might not sound all that pricey for a company expected to grow sales by 13% in 2023 and 2024 (per Wall Street consensus estimates), it's concerning when accounting for the growing likelihood of a U.S. recession. The Federal Reserve is forecasting a "mild recession" for later this year, and multiple indicators and metrics seem to concur that a recession is likely. The travel industry tends to be highly cyclical, which is a fancy way of saying that consumers would be expected to reduce their travel spending if a U.S. recession materializes.
But there's another side to the Airbnb growth story these billionaires may have missed. Specifically, the growth in long-term stays (bookings of 28 nights, or longer) can be a game changer for Airbnb.
The aforementioned shift in the labor market that's seeing more people work remotely means fewer workers are tethered to a particular city or country. I suspect this change is fueling the uptick in long-term stay growth, and we're just witnessing the tip of the iceberg.
Likewise, Airbnb is just scratching the surface with its Experiences segment. At the moment, the company is working with local experts to lead travelers on adventures. It seems only logical that we'll see the company form broader partnerships with transportation and food companies to get a bigger piece of the $8 trillion pie that is the global travel industry.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Airbnb, Alphabet, and 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.
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2 billionaire investors can't stop buying: Datadog A second glorious growth stock that captivated the attention and wallets of billionaires during the first quarter is cloud-based software-as-a-service (SaaS) observability company Datadog (NASDAQ: DDOG). Cramming thousands of earnings reports into a span of eight weeks, along with a constant barrage of economic data, can make it tough to weed out what's important. Although 13Fs can be filed 45 days following the end of a quarter and therefore contain dated material, they can still provide clues as to what sectors, industries, trends, and stocks are piquing the interest of Wall Street's most successful investors.
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2 billionaire investors can't stop buying: Datadog A second glorious growth stock that captivated the attention and wallets of billionaires during the first quarter is cloud-based software-as-a-service (SaaS) observability company Datadog (NASDAQ: DDOG). In the order listed above, these seven billionaires respectively purchased approximately 4.75 million shares, 4.64 million shares, 4.64 million shares, 2.19 million shares, 2.15 million shares, 1.56 million shares, and 1.56 million shares of Google Class A stock (GOOGL) in the first quarter. Datadog's billionaire investors include: Chase Coleman of Tiger Global Ken Griffin of Citadel Advisors John Overdeck and David Siegel of Two Sigma Investments Jim Simons of Renaissance Technologies Jeff Yass of Susquehanna International In order, these billionaires respectively added roughly 1.68 million shares, 1.18 million shares, 1.04 million shares, 996,000 shares, and 200,000 shares of Datadog stock.
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2 billionaire investors can't stop buying: Datadog A second glorious growth stock that captivated the attention and wallets of billionaires during the first quarter is cloud-based software-as-a-service (SaaS) observability company Datadog (NASDAQ: DDOG). 1 billionaire investors can't stop buying: Alphabet The first phenomenal growth stock billionaires haven't been able to get enough of is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of familiar internet search engine Google, as well as streaming platform YouTube and autonomous-vehicle company Waymo. In the order listed above, these seven billionaires respectively purchased approximately 4.75 million shares, 4.64 million shares, 4.64 million shares, 2.19 million shares, 2.15 million shares, 1.56 million shares, and 1.56 million shares of Google Class A stock (GOOGL) in the first quarter.
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2 billionaire investors can't stop buying: Datadog A second glorious growth stock that captivated the attention and wallets of billionaires during the first quarter is cloud-based software-as-a-service (SaaS) observability company Datadog (NASDAQ: DDOG). A perfect example would be the rapid growth of cloud infrastructure service segment Google Cloud. The high-profile growth stock billionaires are avoiding: Airbnb However, not all magnificent growth stocks were buys for billionaires during the first quarter.
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69db7d4f-9270-4549-9a94-63863ce705c2
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718237.0
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2023-05-24 00:00:00 UTC
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Stifel Maintains Datadog Inc - (DDOG) Buy Recommendation
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DDOG
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https://www.nasdaq.com/articles/stifel-maintains-datadog-inc-ddog-buy-recommendation
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Fintel reports that on May 24, 2023, Stifel maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation.
Analyst Price Forecast Suggests 6.67% Upside
As of May 11, 2023, the average one-year price target for Datadog Inc - is 99.28. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 6.67% from its latest reported closing price of 93.07.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1275 funds or institutions reporting positions in Datadog Inc -. This is a decrease of 27 owner(s) or 2.07% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.48%, a decrease of 8.53%. Total shares owned by institutions decreased in the last three months by 4.99% to 251,032K shares.
The put/call ratio of DDOG is 0.85, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Price T Rowe Associates holds 7,181K shares representing 2.23% ownership of the company. In it's prior filing, the firm reported owning 9,986K shares, representing a decrease of 39.05%. The firm decreased its portfolio allocation in DDOG by 33.84% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% over the last quarter.
Baillie Gifford holds 6,095K shares representing 1.89% ownership of the company. In it's prior filing, the firm reported owning 5,771K shares, representing an increase of 5.32%. The firm decreased its portfolio allocation in DDOG by 66.26% 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.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K
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.
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Fintel reports that on May 24, 2023, Stifel maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, a decrease of 8.53%. The put/call ratio of DDOG is 0.85, indicating a bullish outlook.
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Fintel reports that on May 24, 2023, Stifel maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, a decrease of 8.53%. The put/call ratio of DDOG is 0.85, indicating a bullish outlook.
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Fintel reports that on May 24, 2023, Stifel maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, a decrease of 8.53%. The put/call ratio of DDOG is 0.85, indicating a bullish outlook.
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Fintel reports that on May 24, 2023, Stifel maintained coverage of Datadog Inc - (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.48%, a decrease of 8.53%. The put/call ratio of DDOG is 0.85, indicating a bullish outlook.
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5826b4fc-54d1-4405-84ac-7e12995e1747
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718238.0
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2023-05-21 00:00:00 UTC
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7 Promising Growth Stocks to Buy Hand Over Fist
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DDOG
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https://www.nasdaq.com/articles/7-promising-growth-stocks-to-buy-hand-over-fist
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As 2023 unfolds, it brings about several new possibilities in the investment arena, breathing new life into promising growth stocks. After tech stocks were punished in 2022, many of the top tech growth stocks are showing signs of a vibrant comeback. However, sectors previously flourishing, such as energy stocks and regional banks, are now facing major headwinds. With investors contemplating the effects of a potential recession and financial system instability, there has been a strategic rotation back into the most enticing growth stocks to buy.
However, there is a note of caution during this shift. The rosy growth scenario of 2021 may not replicate itself during this market resurgence. The remnants of speculative excess during the stock market rally of 2021, but the market has evolved. Now the market harbors a deeper appreciation for profitability and sustainability, along with durable business models, that will guide the selection of future growth stocks.
AAPL Apple $175.16
GOOG GOOGL Alphabet $123.25
DDOG Datadog $92.09
U Unity Software $29.10
SOFI SoFi Technologies $4.93
SNOW Snowflake $176.82
BROS Dutch Bros $28.52
Growth Stocks To Buy: Apple (AAPL)
Source: 3rdtimeluckystudio / Shutterstock
Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Moreover, its financials have been consistently rising, representing steadfast growth. Additionally, it has made bold strides with aggressive share repurchases and dividends, underpinning its impressive $97 billion annual free cash flow balance.
Let’s turn our attention toward the iPhone, a story of triumph amidst turbulence. Despite the U.S. economic downturn casting a shadow over iPhone sales, Apple’s superior brand prowess has acted as a robust shield. IPhone sales increased substantially during the first quarter, despite the slowdown in its underlying market. The spotlight, however, rightfully belongs to Apple’s Services unit, which has delivered an astounding 463% sales growth over the past decade.
Alphabet (GOOG, GOOGL)
Source: Khakimullin Aleksandr / Shutterstock
When the AI wave swept in earlier this year, many felt that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) missed a step. However, Alphabet’s recent I/O developer conference turned the tables, pointing to the tech giant’s retreat. Google unveiled a suite of generative AI tools positioned to dethrone ChatGPT from its perch. Moreover, it’s clear that Google won’t be letting Bing off the hook in establishing its dominance in the search engine battleground.
Alphabet and Microsoft stand on promising ground in the grand scheme of things, with AI presenting a golden growth opportunity. Google’s lackluster earnings report is essentially just a blip on the radar. With flattening interest rates and the firm’s AI aspirations soaring, GOOG stock’s value seems to have hitched a ride on a rocket. Alphabet is charting an exciting course in the ever-evolving tech cosmos as we advance.
Datadog (DDOG)
Source: MEE KO DONG / Shutterstock
Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. The enterprise’s one-stop-shop platform delivers a masterstroke of convenience, enabling firms to watch over and secure their data easily.
Nailing the art of growth, Datadog offers an awe-inspiring trajectory. Revenues have skyrocketed from a humble $101 million in 2017 to an eye-catching $1.7 billion in 2022. Year-over-year growth stands over 50%, roughly 318% higher than the sector median. What’s more impressive is that forward revenue estimates point to more than 37% top-line growth ahead. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
Unity Software (U)
Source: smshoot/ShutterStock.com
Unity Software (NYSE:U) dazzles as a leader in the graphics engine space, forming the digital backbone of the video game sphere. Over the years, it has evolved from being a pure-play game developer effectively branching out into the vibrant worlds of video architecture, animation, and eCommerce.
Over the years, it’s operated a financially resilient business, with average revenue growth of 40% over the past five years. Moreover, forward revenue growth is estimated at over 32%. Additionally, profitability concerns are dissipating as it has significantly expanded its profitability situation in the past year. Also, its belt-tightening measures have borne fruit, with analysts expecting an anticipated swing from a 39-cent loss to a 35-cent profit per share. Furthermore, Tipranks analysts forecast a 26.8% upside from current prices, positioning it for powerful long-term gains ahead.
SoFi Technologies (SOFI)
Source: Shutterstock
Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. It was awarded a bank charter designation, further bolstering its comprehensive range of financial service offerings and solidifying its position in the fintech arena.
Furthermore, unfazed by market headwinds, SoFi Technologies has effectively emerged as a leading contender in personal finance. Its recent earnings release showed remarkable revenue and adjusted profitability beat, besting market projections by a mile. Sales from its lending segment were at $325 million, up 33% from last year’s first quarter. Financial services sales tripled yearly to a whopping $81 million, while technology sales increased by 28% YOY to $78 million. The firm remains on course to achieving quarterly GAAP net income profitability by the fourth quarter of 2023, a testament to its confidence in its future performance. Based on Tipranks analyst estimates, SOFI stock trades at over a 50% upside from current price levels.
Snowflake (SNOW)
Source: Freedom365day / Shutterstock.com
Snowflake (NYSE:SNOW) has established its presence as a cloud data warehousing prodigy, effectively charting a breathtaking course in the cloud realm. Its services enable firms to ingest massive amounts of data, crafting valuable analytics from data sources.
However, its journey isn’t just a flash in the pan; its status tells a compelling story. While the pace at which it grows may be moderating from its lofty triple-digit growth rates, its anticipated 40% revenue surge to $2.88 billion this year indicates an undeniably robust trajectory.
In its most recent quarter, it delivered a whopping 54% fourth-quarter product revenue growth and an enviable net revenue retention rate of 158%. This implies an average growth rate of 58% per customer. Hence, as we advance, Snowflake, no doubt, continues carving out an impressive path in the cloud cosmos.
Dutch Bros (BROS)
Source: Shutterstock
Dutch Bros (NYSE:BROS) has been zipping ahead of its competition with a fresh take on the traditional coffee-shop concept, winning the hearts of the Gen Z demographic with its nimble locations and selfie-ready drinks ideal for its vibrant customer base.
Despite recently unveiling relatively strong first-quarter results, the company is in a spot of bother. Its 30% YOY revenue growth missed the mark, causing its stock to wobble in the process. However, these growing pains are par for the course for young up-and-coming businesses such as Dutch Bros that are sprinting towards success. It added a whopping 45 new stores already in the first quarter and a revenue growth forecast of around 30% for this year and the next. The potential to brew thousands of new stores over the next few years is a perk that’s just too good to pass up.
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.
The post 7 Promising Growth Stocks to Buy Hand Over Fist 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.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
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AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
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1ba60942-54e1-43d9-ab3d-41b2d9fde273
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718239.0
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2023-05-20 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-10
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nan
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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.
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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).
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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).
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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.
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c614c6cb-29dd-4aa5-87e2-1bd5a6bc3ed8
|
718240.0
|
2023-05-17 00:00:00 UTC
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Guru Fundamental Report for DDOG
|
DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-9
|
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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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).
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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.
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bcca017e-8118-4acd-b2bb-9b94fcb78e24
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718241.0
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2023-05-16 00:00:00 UTC
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Investors Are Getting Advice From ChatGPT. But Should They?
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DDOG
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https://www.nasdaq.com/articles/investors-are-getting-advice-from-chatgpt.-but-should-they
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nan
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nan
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Investing has evolved right along with technology. People once got their investment information from newspapers and magazines, until the internet and social media brought investing into the digital age.
Now, artificial intelligence (AI) is starting to generate buzz about a potential new investing era. According to research done by The Motley Fool, 47% of U.S. investors have consulted ChatGPT for stock recommendations.
AI's capabilities make it a fascinating tool. But like any tool, it can do more harm than good if misused. Let's look at some dos and a don't when it comes to using AI language models like ChatGPT for investing.
Image source: Getty Images
Do use ChatGPT to simplify complex ideas
Knowing the businesses you invest in is a crucial part of owning stocks. But some businesses are complex and challenging to understand. For example, consider software stock Datadog (NASDAQ: DDOG). You can go to Datadog's website and learn that the company is a monitoring and security platform for cloud applications, and you might not know what that means if you're not well-versed in technology.
I went to ChatGPT and asked it to tell me what Datadog's business does in simplified terms, and this is what it replied:
Datadog is a company that helps businesses monitor and analyze their digital infrastructure and applications. In simple terms, they provide a platform that collects and organizes data from various sources such as servers, databases, cloud services, and applications.
Imagine you have a house with many rooms, and each room has different things going on. Datadog acts like a watchful eye that keeps track of everything happening in your house. It looks at things like how hot or cold each room is, whether there's any leaky pipes, and if any appliances are malfunctioning.
From a few seconds of reading, I learned about the company in non-technical terms and saved myself the time and energy of trying to wrap my mind around an overload of information from the internet.
Don't use ChatGPT to make subjective decisions
It's a slippery slope from asking ChatGPT for information or an explanation to relying on it for subjective answers. It's fine asking ChatGPT to name a dividend stock that yields more than 5% (although you should be aware that ChatGPT doesn't always draw its answers from the most up-to-date sources), but things can get dicey when that turns into: Should I buy XYZ stock?
Whether you should buy a stock depends on individual factors that ChatGPT can't relate to. For example: What are your investment goals? Your risk tolerance? How diversified is your portfolio? Do you want to buy a stock for a short-term trade or hold it over time? Will AI use information based on generally accepted accounting principles (GAAP) or adjusted figures? How do you know it's accurate?
Data is also interpreted in different ways. Suppose that a dividend stock is a terrific company, but some temporary issue or event inflated the dividend payout ratio. Will ChatGPT recognize such a variable and account for it in its answer? Language models are as good as the training and data they receive. Investing is rarely black-and-white, so don't base your decisions on a technology that could have trouble working within the gray areas.
Do make investing unique to you
Investing should be an individual journey, which gets harder when relying on ChatGPT. There is a good chance that users across the web will use the same prompts, such as: "Which stocks should I buy," or "Is XYZ a good stock?"
There's also a good chance that ChatGPT will give similar answers for similar prompts, considering the model is the same for everyone. Nobody has an individual version of ChatGPT personally running prompts for them. Investing can be a case where following the herd can have harmful consequences. What if everyone is blindly buying the stocks ChatGPT lists for them? It will be much harder to generate investment returns if you're not willing to go against the grain every now and then.
AI has the potential to change investing, and some might argue it already has. ChatGPT can be a fantastic tool to save you time and effort, but cutting too many corners could easily backfire. Use the technology responsibly, and your portfolio will thank you.
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 May 8, 2023
Justin Pope 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, consider software stock Datadog (NASDAQ: DDOG). You can go to Datadog's website and learn that the company is a monitoring and security platform for cloud applications, and you might not know what that means if you're not well-versed in technology. In simple terms, they provide a platform that collects and organizes data from various sources such as servers, databases, cloud services, and applications.
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For example, consider software stock Datadog (NASDAQ: DDOG). Image source: Getty Images Do use ChatGPT to simplify complex ideas Knowing the businesses you invest in is a crucial part of owning stocks. There's also a good chance that ChatGPT will give similar answers for similar prompts, considering the model is the same for everyone.
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For example, consider software stock Datadog (NASDAQ: DDOG). Image source: Getty Images Do use ChatGPT to simplify complex ideas Knowing the businesses you invest in is a crucial part of owning stocks. It's fine asking ChatGPT to name a dividend stock that yields more than 5% (although you should be aware that ChatGPT doesn't always draw its answers from the most up-to-date sources), but things can get dicey when that turns into: Should I buy XYZ stock?
|
For example, consider software stock Datadog (NASDAQ: DDOG). Let's look at some dos and a don't when it comes to using AI language models like ChatGPT for investing. It's fine asking ChatGPT to name a dividend stock that yields more than 5% (although you should be aware that ChatGPT doesn't always draw its answers from the most up-to-date sources), but things can get dicey when that turns into: Should I buy XYZ stock?
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0d63153f-8cca-42f7-a3ff-9416af62680b
|
718242.0
|
2023-05-15 00:00:00 UTC
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Notable Monday Option Activity: ZS, DDOG, SPB
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DDOG
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-zs-ddog-spb
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nan
|
nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Zscaler Inc (Symbol: ZS), where a total volume of 24,677 contracts has been traded thus far today, a contract volume which is representative of approximately 2.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.5% of ZS's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $120 strike call option expiring May 19, 2023, with 4,477 contracts trading so far today, representing approximately 447,700 underlying shares of ZS. Below is a chart showing ZS's trailing twelve month trading history, with the $120 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) options are showing a volume of 37,241 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 60.1% of DDOG's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $130 strike call option expiring June 16, 2023, with 20,000 contracts trading so far today, representing approximately 2.0 million underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Spectrum Brands Holdings Inc (Symbol: SPB) saw options trading volume of 6,540 contracts, representing approximately 654,000 underlying shares or approximately 57.5% of SPB's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $65 strike put option expiring June 16, 2023, with 2,305 contracts trading so far today, representing approximately 230,500 underlying shares of SPB. Below is a chart showing SPB's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for ZS options, DDOG options, or SPB options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Best Closed End Funds
CHKP Price Target
NTCO Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $130 strike call option expiring June 16, 2023, with 20,000 contracts trading so far today, representing approximately 2.0 million underlying shares of DDOG. Below is a chart showing ZS's trailing twelve month trading history, with the $120 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 37,241 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 60.1% of DDOG's average daily trading volume over the past month, of 6.2 million shares.
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Below is a chart showing ZS's trailing twelve month trading history, with the $120 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 37,241 contracts thus far today. Particularly high volume was seen for the $130 strike call option expiring June 16, 2023, with 20,000 contracts trading so far today, representing approximately 2.0 million underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $130 strike highlighted in orange: And Spectrum Brands Holdings Inc (Symbol: SPB) saw options trading volume of 6,540 contracts, representing approximately 654,000 underlying shares or approximately 57.5% of SPB's average daily trading volume over the past month, of 1.1 million shares.
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Particularly high volume was seen for the $130 strike call option expiring June 16, 2023, with 20,000 contracts trading so far today, representing approximately 2.0 million underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $130 strike highlighted in orange: And Spectrum Brands Holdings Inc (Symbol: SPB) saw options trading volume of 6,540 contracts, representing approximately 654,000 underlying shares or approximately 57.5% of SPB's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing ZS's trailing twelve month trading history, with the $120 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 37,241 contracts thus far today.
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Particularly high volume was seen for the $130 strike call option expiring June 16, 2023, with 20,000 contracts trading so far today, representing approximately 2.0 million underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $130 strike highlighted in orange: And Spectrum Brands Holdings Inc (Symbol: SPB) saw options trading volume of 6,540 contracts, representing approximately 654,000 underlying shares or approximately 57.5% of SPB's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing SPB's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for ZS options, DDOG options, or SPB options, visit StockOptionsChannel.com.
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ac34bcfa-4dad-437d-a9eb-a439feb9ab24
|
718243.0
|
2023-05-13 00:00:00 UTC
|
Guru Fundamental Report for DDOG
|
DDOG
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-8
|
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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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.
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456a1af0-ba3a-45c1-b77d-32891bcba736
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718244.0
|
2023-05-12 00:00:00 UTC
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Why Zscaler, Snowflake, and Datadog Surged This Week
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DDOG
|
https://www.nasdaq.com/articles/why-zscaler-snowflake-and-datadog-surged-this-week
|
nan
|
nan
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What happened
Shares of cloud software favorites Zscaler (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence.
It was a good week for high-growth cloud software stocks on several fronts. Zscaler made a positive pre-announcement, and a Wall Street analyst issued a note suggesting the optimization in cloud software spending might be coming to an end.
Softer-than-expected inflation readings for April also helped, as these growth stocks are highly sensitive to inflation and interest rates.
So what
The week started off well Monday, when Zscaler decided to pre-announce fiscal third-quarter results. Management disclosed it now expects a big beat relative to analyst estimates, with third-quarter revenue projected to be between $415 million and $419 million, much higher than its prior guidance of $396 million to $398 million and consensus expectations of $400.5 million. In addition, non-GAAP (adjusted) operating income is now projected at $60 million to $64 million, versus prior guidance of $55 million to $56 million.
Chairman and CEO Jay Chaudhry said: "We had a strong finish to the quarter as the high ROI of adopting the Zscaler Zero Trust Exchange platform continues to resonate with customers and prospects in this challenging macro environment. ... Our customer engagements are strong, and our platform continues to expand with innovations that solve our customers' real time IT challenges."
Also on Monday, Stifel analyst Brad Reback upgraded Snowflake from hold to buy, citing the recent earnings commentary from Datadog and other cloud software companies that the multiquarter slowdown may be ending. Reback now sees Snowflake's growth stabilizing in the high-30% range, as cloud optimizations may be nearing their end. Enterprises have used the high-inflation, high-rate environment to look for ways to optimize their cloud spend and consolidate vendors. There is, however, only so much cutting a company can do, as the cloud transition continues over multiple years. Furthermore, Reback sees Snowflake getting a boost from the generative AI market as a leading cloud data lake provider.
The positive Zscaler announcement and Snowflake upgrade dovetails with last week's Datadog earnings announcement, which also beat estimates for revenue along with raised full-year guidance. Datadog also operates at the nexus of data and security with its cloud observability suite.
In addition to the positive industry-specific commentary, cloud stocks were also likely helped by this week's inflation data release for the month of April. On Wednesday, the Consumer Price Index (CPI) came in at 0.4% month over month and 4.9% year over year, slightly lower than expectations of 5%. And on Thursday, the Producer Price Index (PPI), which measures wholesale and input prices, grew just 0.2% versus 0.3%, and 2.3% year over year, which was the lowest reading since January 2021.
Declining inflation numbers should mean that eventually interest rates will come down, which should help growth stocks that have the bulk of their profits well out into the future.
ZS Percent Off All-Time High data by YCharts
Now what
Despite this week's bounce, each of these three cloud stocks are still far, far below their highs from late 2021, which was arguably a fairly large bubble. Moreover, Zscaler and Datadog still trade at a mid-teens multiple of sales, and Snowflake trades at a mid-20s multiple of sales. Those are still very expensive valuations, implying robust future growth and high future margins.
However, emerging cloud software leaders such as these three do have that capability, as this week's positive news showed.
Still, in order for these stocks to regain their highs, they will likely have to continue executing impressively for multiple years, and interest rates will likely need to fall back to pre-pandemic levels as well.
10 stocks we like better than Zscaler
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 Zscaler 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 May 8, 2023
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Datadog, Snowflake, and Zscaler. 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 cloud software favorites Zscaler (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence. Zscaler made a positive pre-announcement, and a Wall Street analyst issued a note suggesting the optimization in cloud software spending might be coming to an end. Chairman and CEO Jay Chaudhry said: "We had a strong finish to the quarter as the high ROI of adopting the Zscaler Zero Trust Exchange platform continues to resonate with customers and prospects in this challenging macro environment.
|
What happened Shares of cloud software favorites Zscaler (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence. Also on Monday, Stifel analyst Brad Reback upgraded Snowflake from hold to buy, citing the recent earnings commentary from Datadog and other cloud software companies that the multiquarter slowdown may be ending. The positive Zscaler announcement and Snowflake upgrade dovetails with last week's Datadog earnings announcement, which also beat estimates for revenue along with raised full-year guidance.
|
What happened Shares of cloud software favorites Zscaler (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence. In addition to the positive industry-specific commentary, cloud stocks were also likely helped by this week's inflation data release for the month of April. See the 10 stocks *Stock Advisor returns as of May 8, 2023 Billy Duberstein has no position in any of the stocks mentioned.
|
What happened Shares of cloud software favorites Zscaler (NASDAQ: ZS), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) were surging this week, up 29%, 10.3%, and 13.2%, respectively, through Thursday trading, according to data provided by S&P Global Market Intelligence. Zscaler made a positive pre-announcement, and a Wall Street analyst issued a note suggesting the optimization in cloud software spending might be coming to an end. There is, however, only so much cutting a company can do, as the cloud transition continues over multiple years.
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53d0560c-dc59-4488-a48c-d1b5c31a7d4d
|
718245.0
|
2023-05-11 00:00:00 UTC
|
Guru Fundamental Report for DDOG
|
DDOG
|
https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-7
|
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 value 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.
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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.
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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 value stock in the Software & Programming industry.
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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).
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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).
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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.
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6ba51de2-18b3-4132-9e5e-81b4a6893688
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718246.0
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2023-05-10 00:00:00 UTC
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Microsoft-Activision Deal Blocked in the U.K. Now What?
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DDOG
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https://www.nasdaq.com/articles/microsoft-activision-deal-blocked-in-the-u.k.-now-what
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nan
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In this podcast, Motley Fool senior analyst Bill Barker discusses:
Microsoft's strong third-quarter results being overshadowed by news about its attempt to buy Activision Blizzard.
The $3 billion breakup fee Microsoft is now likely to have to pay.
Chipotle shares hitting a new all-time high after first-quarter profits were much higher than Wall Street was expecting.
Motley Fool senior analyst Tim Beyers and Motley Fool engineering manager Tim White take a closer look at Amazon Web Services.
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.
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This video was recorded on April 26, 2023.
Chris Hill: Microsoft gets bad news and good news while Chipotle shareholders get great news for the side of guac. Motley Fool Money starts now. I'm Chris Hill joining me in studio for the first time in a long time it's Motley Fool Senior Analyst Bill Barker. Good to see you.
Bill Barker: Good to be back.
Chris Hill: We're going to start with Microsoft today because Microsoft is dominating the business news for a couple of reasons. We're going to get to the first one. I'm going to say, glowing third-quarter report profits and revenue were higher than expected. Shares of Microsoft up nearly 8% and hitting a new 52-week high. You and I were talking about this earlier this morning. Alphabet, was the same. One of those conference calls where AI was mentioned a lot. In terms of the quarter itself, what stood out to you from Microsoft.
Bill Barker: Azure up 27% year over year. That's continuing to tick down. As quarters go by up from the 50% range. It was thriving, back in 2021. But still, for something as big as this to still be growing 27% year over year is I think one of the big keys to the market reaction today.
Chris Hill: In terms of all of the talk around AI. I know we're in early days, but it seems like there's this general sentiment that Microsoft's doing a better job than Alphabet is. Is that fair? Is that warranted? Or as part of this, we just expect more from that realm out of Alphabet because Google Search has been so good for so long and Bing, has been well, Bing.
Bill Barker: You've got people saying that Google has years of lead in AI and they just haven't productized it. That they've got the top minds and they were on this before others and that they have been slow in bringing it to market, at which they have been in comparison certainly to Microsoft, and barred came out with a whimper rather than a bang, and they've already sunk so much into this that my suspicion is, and a lot of other people's suspicion is that they actually are going to be hitting it out of the park at some point. But they wanted to do it right, and that led them to some people accusing them of a Kodak moment.
Chris Hill: Yeah. I've seen that. What is that in reference to?
Bill Barker: That's in reference to Kodak.
Chris Hill: That part I get. But what what is the Kodak moment? Was it just Kodak not realizing that, hey, this digital film thing is going to take off and the processing of film is going to zero?
Bill Barker: Yes. But even more specific than that of being in the forefront in digital photography before others were, and holding back on getting behind it because it was going to cannibalize their existing and very profitable silver Halide film business. So they could have been the leader, but they chose out of caution toward their ongoing profits to not be, and that was the death of the company ultimately.
Chris Hill: The other reason Microsoft is in the news today is because the UK Competition and Markets Authority is blocking Microsoft's $69 billion acquisition of Activision Blizzard. I'm quoting here from the CMA statement, "Allowing Microsoft to take such a strong position in the Cloud gaming market, just as it begins to grow rapidly, would risk undermining the innovation that is crucial to the development of these opportunities." You had Sony and Nintendo among those who were lining up urging the CMA to block this deal. The reaction from investors was to essentially reward Microsoft, congratulations, you're not going to have to spend $69 billion. So the stock is up a little bit more as a result of that. Shares of Activision Blizzard down 11% this morning. Where do you want to begin with this? Because I'm tempted to begin with the immediate aftermath of both Microsoft and Activision Blizzard saying, we're going to fight this. I'm wondering, how hard are you going to fight this?
Bill Barker: Doesn't matter how hard they're going to fight this. They're not going to come out on top. The history of the regulating body in the UK is to not change anything on appeal here, so they know that they have to posture. In terms of the breakup fee that Activision is going to get, they have to play out the string on this one. But Sony is up today because look, there was some negative effect at this likely would have had on the Sony's and Nintendo's of the world, which is why they were fighting it, and their argument won the day. The market today is rewarding Sony for no other reason than the outcome of this case.
Chris Hill: In terms of the stock, do you think, let's just call it punishment of Activision Blizzard shares is a bit much? If this is truly going the way of you are not going to win on an appeal, and because of that, sometime in mid-July, Microsoft is going to cut you a check for three billion dollars, which goes straight to their balance sheet. I'm wondering how much of an opportunity exists for Activision Blizzard because it's not like this is a business that is flailing about. Yes, they want it to be acquired by Microsoft. But on its own, particularly with an additional three billion dollars, it seems like a good business.
Bill Barker: It is a good business. I don't know what the price of Activision was when Microsoft first made the offer to buy for $69 billion. Activision is worth $60-61 billion absent of that purchase. Also likely the reality that nobody else is going to be able to buy Activision in such a deal because then they would be in the same cross-hairs of the regulations. Part of what Activision doesn't have today that it had yesterday was the possibility of being bought by Microsoft or if not Microsoft, somebody else, and all that's taken off the table. So that's a buyout premium that's gone to Activision's lineup of games, it's going to continue to thrive and going to continue to be at the center of Cloud gaming. But stocks were about the same as it was five years ago.
Chris Hill: If you're Microsoft, obviously you wanted the deal to go through. You say you're going to appeal this, but you're probably smart enough to realize that's not going to happen. Where do you think they go from here? Because clearly, they were willing to spend upwards of $70 billion for Activision Blizzard. Do you think making an acquisition in gaming is worth pursuing immediately or do you let the dust settle from this one?
Bill Barker: Microsoft's got like 20 other things going on that are as big or bigger than their Xbox stuff. I think they'll allocate capital accordingly and not throw it at the next thing that is Activision, but a little bit smaller. Maybe we can get away with that. Xbox is going to thrive by being on the same side of the equation that it's been on up to now, and that's profitable, and they'll be a partner of Activision rather than an owner.
Chris Hill: Chipotle's first-quarter profits were much higher than expected revenue, slightly higher as well. Same-store sales growth for Chipotle was nearly 11%, and the stock is up 14% this morning and hitting a new all-time high today. Brian Niccol and his team have been among the best, if not the very best, at raising prices over the past 18 months. I think when you look at the stock, there's the proof.
Bill Barker: That 11% is 7% on the size of the check, which is basically inflation, the degree to which they raised prices and pass that along, and 4% traffic. That's good. They're not completely reliant on future top-line growth through inflation continuing. They've proven that they can take price, as they say in the business rather than raise price, which is the English that everybody else uses. I don't know, to take price sound like it's less?
Chris Hill: No. I prefer to raise price.
Bill Barker: I'm just adopting their language for the moment. They've got more people coming in. The task now is since they have put out that they hope not to be raising prices, again, not promising because they see some inflation potential in the second half of the year, particularly with avocados, we'll get to that in a second maybe. They've got more people coming in, and that is the focus right now is to continue that part of the equation.
Chris Hill: It's one of the reasons I like Brian Niccol as the CEO is he's a clear communicator. He's been very clear about how they've been raising prices over the past year and a half. As you said, indicated that they're going to hit the pause button on that, which to bring it back to the same-store sales, if they're actually going to do that, even if it's just for a few months then they really need to figure out ways to boost traffic. If they're not going to be relying on higher prices to boost that average ticket, then they're going to have to do a better job than 4% increases in traffic over the next 3-6 months. Aren't they?
Bill Barker: Gone in there lately, been eating at Chipotle?
Chris Hill: No, I haven't.
Bill Barker: Why not? You're not part of this equation?
Chris Hill: I'm not part of this equation.
Bill Barker: You used to like Chipotle.
Chris Hill: I still like Chipotle. I just haven't been there in a while.
Bill Barker: Why do you think that is?
Chris Hill: Other options.
Bill Barker: One of the things that's getting people in and apparently it's not working with you, now we've discovered that, is the limited-time-only things that they put on the menu which you may want to go and try.
Chris Hill: This is the chicken ale pasta.
Bill Barker: Yeah, right. With a big hit.
Chris Hill: The big hit, something like the most successful.
Bill Barker: It's a limited-time-only thing. Get over there.
Chris Hill: it's like the McRib, but they're classier. Let's just move on. When you look at this stock, it's at an all-time high. This is a stock that has never really been cheap on a valuation basis, but I am wondering if, in fact, this is one of those times where it's like, no, really the stock's at an all-time high, couple that with the comments from Niccol. He's not pointing to any weakness there. They're continuing to invest in their locations. They're going to open another somewhere in the neighborhood of 230 locations, at least that's their goal for this year. They are pricing in those investments, which makes me wonder, how optimistic should people be about, call it the next 12 months for the stock?
Bill Barker: I don't know. Who knows what the price of a stock's going to be in 12 months? I don't know. No, you should admit that you won't know that. I mean the health of the business, should the business short-term, intermediate-term, and long-term, all looks good. So maybe there's a recession somewhere in the horizon? Certainly, that's speculated about all the time hasn't arrived yet. If it shows up in a few more people are out of work, then a few more people are going to be saving money by not going to Chipotle as well as often, and that could interrupt the extremely impressive growth trajectory that they're enjoying at the moment. But I think the target is 7,000 total restaurants is the longer-term goal that's going to take I don't know some more 5-8 years or something like that, and everything is smooth sailing at the moment.
Chris Hill: What was the thing about avocados? Is their input cost for avocados coming down, and that's helping to boost their margins?
Bill Barker: It has come down over the explosives, avocados, eggs, or a couple of things that we're capturing headlines for the inflation in those categories, and that's improved their margins a bit. But the conference call indicated that that might reverse itself in the second half, you don't really know so now may be the time to hoard avocados if you're out there.
Chris Hill: So no one should expect Chipotle to lower the cost of guacamole?
Bill Barker: No, it's never coming down. From here, that's not happening. What are you talking about?
Chris Hill: We'll see if there actually is a recession if they actually need to start. They've done a great job with their app. As you said, they did a great job with these limited-edition items so it's not going to stun me if a set of circumstances leads to Chipotle offering deals on guacamole.
Bill Barker: On taking price, you're thinking.
Chris Hill: Because we don't want to say lowering prices.
Bill Barker: No, they might give you a little less guacamole.
Chris Hill: Shrinkflation.
Bill Barker: Shrinkflation, or they might give you a little more like if they're trying to move guacamole as the price of avocados comes down, that might give you a little bit extra. That might be about as much as the un-taking of price would go though. You're still going to be paying the extra for it at that level you are now.
Chris Hill: That might get me in the door.
Bill Barker: They need you.
Chris Hill: They don't need me. Their stocks hitting an all-time high and I haven't been there and I don't know how long.
Bill Barker: Look at how much you could eat.
Chris Hill: Well, that's yeah. Thanks, Bill Barker.
Bill Barker: Thank you.
Chris Hill: Good to have you back.
Bill Barker: Good to be here.
Chris Hill: Businesses are digging through their sofa cushions looking for savings and that's a problem for cloud spending. Tim Beyers and Tim White take a closer look at Amazon Web Services.
Tim Beyers: Welcome to This Week in Tech on Motley Fool Money, I'm Tim Beyers, he's Tim White. Tim, let's talk about cloud spending. Let's talk about Amazon Web Services because we had the shareholder letter from Amazon and in it they talked about over $80 billion in AWS run rate spend. Boy, is that a lot? This is one of Amazon's biggest businesses. It's one of its most profitable businesses. What do you think this means for Amazon that they are so dependent on AWS?
Tim White: I think that the fact that Andy Jassy, the current CEO, came from that business means that he's fully well aware of how profitable that business is and he's trying to bring a similar, maybe not exactly the same, but similar level of profitability to the rest of Amazon businesses and that means a lot of cost-cutting I think.
Tim Beyers: I fully agree and they've signaled that. But they also signaled that there might be some softness, and weakness as we move forward with the AWS business into the second half of the year, and that feels like something we're seeing a lot more of.
Tim White: I think most businesses especially tech businesses are pretty hesitant to commit to the end of this year as far as being big, a lot of businesses are delaying spending holding back on things. Every business is starting to go through the couch cushions and looking for spending cuts, which is part of the normal cycle of how these things go. We have these like boom and bust cycles where growth is the most important thing and then suddenly cost-cutting is the most important thing. But I think a lot of businesses are suddenly realizing that they have a bunch of Amazon Web Services spend that's going out the door that they don't need to be spending.
Tim Beyers: I know this is a little bit of a hand grenade question here, but is this one of the inherent weaknesses of the Cloud model, particularly at the infrastructure level? I mean, are we starting to discover, in other words, that basic Cloud services like AWS are a commodity product and let the price wars kick on?
Tim White: I hope that's true because I think it benefits everybody.
Tim Beyers: Benefits us as a company.
Tim White: Prices has come down across Cloud infrastructure. I think that helps a lot of companies other than the major Cloud providers. But at the same time, I think that every one of them, Azure, AWS, and Google Cloud, and even Oracle Cloud, are working hard at building products that are unique to them and add unique value. They are trying to help their customers spend wisely. But I think it's a little bit of a Janice thing where they've got one phase that says, "Yeah, we'll help you control your Cloud spend." On the other hand, they're like, "By the way, we've been charging you for this thing you haven't been using for two years and it cost you money though."
Tim Beyers: There are companies who actually have introduced tools. This is one that a favorite company of mine Datadog introduced about 18 months ago. The observability said, "Let us help you observe your Cloud spend so you can control it." That is fundamentally, I don't think that's a surprise and that's one of the more popular products that Datadog offers.
Tim White: In terms of Amazon, no one's going to stop their Cloud migrations, but I think companies are going to start looking really hard at exactly what workloads are best in the Cloud, and which ones might be better elsewhere. We talked about IBM's results showing they're still at growth in the Mainframe business. I think some workloads they're still on the Mainframe and probably aren't going anywhere anytime soon. I think that none of that's changing, but I do think that especially for the rest of this year, there is going to be a slowdown and a pullback on that spending. I think it's probably healthy for companies to try to get a hold of their spending.
Tim Beyers: What do you do if you're Andy Jassy then? One of the things we talked about is where can you get differentiation in a product suite that for the most part is becoming a bit more commoditized, as goes AWS, also goes Google Cloud, also goes Azure, like pick your poison, how does AWS get a little more differentiation here?
Tim White: If I was able to do suddenly take over everything Andy Jassy for one day, I would focus on one thing in particular, and that is, as we've often said in the discussions, you and I have had developer experience. Better your documentation can be, the more tutorials, the more questions and answers, the more support that's available to folks using your products, the more stickiness there will be. As soon as someone else goes and tries to use Oracle Cloud and is immediately stuck and they can find no help on the Internet for what their problem is, they might be excited to go back to AWS if your documentation is better, which I would offer today probably.
Tim Beyers: I would say the same, Tim. I would also say that one of the things that you and I have talked about, which is one of the real misunderstood advantages of tech infrastructure companies in particular, is that once a developer sets up a habit, sets up a routine and they have workflows that actually genuinely work, and it's all set up and it's well documented, those developers, no matter how good the other tool is, they're going to resist switching until it's really painful not to.
Tim White: I think that's true. On the other hand, I have seen it happen in huge waves where as soon as something is compellingly better, even if they're used to something else, there will be a giant migration running over to there, people getting off of Angular one, which was a JavaScript framework. It was a miracle at the time when it came out. But as soon as other frameworks came out, people were running away from it as soon as they possibly could, just because the alternatives were compelling.
Tim Beyers: There are these tipping points. Do you think there is room then for these companies, many of whom we've talked about on This Week in Tech that are Cloud independent? Is it a better time for them because they are Cloud independent, or do we expect that Amazon is going to do what's best to lock customers in and will succeed at that?
Tim White: Well, as you and I have often said, history doesn't exactly repeat itself, but it certainly echoes. If we look at the early 2000 foot, what was happening with IBM and Oracle, and Microsoft, they were clutching as hard as they could to hold onto people and to prevent people to open-source solutions. I suspect that's probably what's going to happen here. I had a prediction several years ago that the next wave of open source revolution was coming. I think that probably will happen in terms of Cloud infrastructure. It's lovely to have something that works really well, that's closed source. It's much better to have something that works well, that is open source, and so I think as those alternatives become more viable, you'll see people start to use them.
Tim Beyers: I think we're starting to see a lot of growth in particularly companies in the platform tiers. I already mentioned Datadog, a company that whose products exist across different Clouds. There does seem to be a real allure to having at least a collection of some tools that can live anywhere your infrastructure resides. Speaking of history, echoing here, Tim, we've seen that before as well. We've seen best-of-breed tools have their moment, and then other times, whole platforms have their moment. This does feel like we're in a whole platform for the moment. [laughs] But I wonder if best of breed is going to have its moment here in the next couple of years. What do you think?
Tim White: Well, I do think that it is awfully nerve-wracking to have the same company that's billing you for something, also be in charge of helping you understand where we're spending money. It is nice to have an independent auditor, and so I think that that will be true regardless of how all this plays out. I remember working with a product called HP OpenView, which was a tool at HP across your whole network and what was happening. One of the things that that tool did was helped you control spending on Sun OS licenses for servers that we're having low utilization that you were paying up big yearly license fee for. I do think that that is always going to be a thing where controlling costs across vendors and also auditing a vendor that may or may not be giving you the full story is always going to be an important product.
Tim Beyers: IBM did something similar with Tivoli. That was very similar. Everything old is new again. Let's park on this. If AWS finds itself in a price war, are they the company best positioned to vacuum up the lion's portion of market share here seeing as they're already the market leader or is this disruptive to them?
Tim White: I think they are the best positioned to be able to not care about price. That said, the other players are also well positioned to not care about price; Microsoft and Google have deep pockets. I really think that it could be anyone at the same time. I also think that they are eyeing each other closely and realizing that nobody really wants to get into a price war here.
Tim Beyers: It does feel a little bit like airlines back in the '80s and '90s. Everybody was afraid of the airline that was going to start a price war, but once you started, it was really hard to get out of it. I agree with that. Well, for Tim White, I'm Tim Beyers, that is This Week in Tech on Motley Fool Money. We will see you again next time. Remember the show is on Motley Fool Live on Fridays from noon to 1:00 Eastern time. We'll see you soon and Fool on.
Chris Hill: As always, people on the program may have interest in the stocks they talk about. 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 Chris Hill. Thanks for listening. We'll see you tomorrow.
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. Chris Hill has positions in Activision Blizzard, Alphabet, Amazon.com, Chipotle Mexican Grill, and Microsoft. Tim Beyers has positions in Alphabet, Amazon.com, Chipotle Mexican Grill, and Datadog. Tim White has positions in Alphabet, Amazon.com, Datadog, and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Chipotle Mexican Grill, Datadog, and Microsoft. The Motley Fool recommends Nintendo. 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.
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In this podcast, Motley Fool senior analyst Bill Barker discusses: Microsoft's strong third-quarter results being overshadowed by news about its attempt to buy Activision Blizzard. I'm quoting here from the CMA statement, "Allowing Microsoft to take such a strong position in the Cloud gaming market, just as it begins to grow rapidly, would risk undermining the innovation that is crucial to the development of these opportunities." Bill Barker: It has come down over the explosives, avocados, eggs, or a couple of things that we're capturing headlines for the inflation in those categories, and that's improved their margins a bit.
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In this podcast, Motley Fool senior analyst Bill Barker discusses: Microsoft's strong third-quarter results being overshadowed by news about its attempt to buy Activision Blizzard. Motley Fool senior analyst Tim Beyers and Motley Fool engineering manager Tim White take a closer look at Amazon Web Services. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Chipotle Mexican Grill, Datadog, and Microsoft.
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I'm Chris Hill joining me in studio for the first time in a long time it's Motley Fool Senior Analyst Bill Barker. Tim Beyers: Welcome to This Week in Tech on Motley Fool Money, I'm Tim Beyers, he's Tim White. Tim White: I think most businesses especially tech businesses are pretty hesitant to commit to the end of this year as far as being big, a lot of businesses are delaying spending holding back on things.
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I'm Chris Hill joining me in studio for the first time in a long time it's Motley Fool Senior Analyst Bill Barker. Chris Hill: The other reason Microsoft is in the news today is because the UK Competition and Markets Authority is blocking Microsoft's $69 billion acquisition of Activision Blizzard. Tim, let's talk about cloud spending.
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2a51ec9f-860d-471a-ab4e-068930908cb4
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718247.0
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2023-05-10 00:00:00 UTC
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History Suggests the Nasdaq Will Soar in 2023 -- 1 Growth Stock to Buy Right Now
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DDOG
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https://www.nasdaq.com/articles/history-suggests-the-nasdaq-will-soar-in-2023-1-growth-stock-to-buy-right-now
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nan
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The Nasdaq-100 index is home to 100 of the largest technology companies listed on the Nasdaq stock exchange. After recording a miserable loss of 33% in 2022, it's off to a hot start this year with a 21% gain so far this year.
But that's very much in keeping with history. The Nasdaq-100 has only declined in consecutive years on one occasion, and that was during the dot-com tech bust from 2000 to 2002. Every other annual loss since the index's inception in 1986 has been followed by a strong rebound the next year.
In fact, the Nasdaq-100 has averaged a whopping 52% return in bounce-back years (excluding the dot-com period), which implies it still has plenty of room to run higher in the remainder of 2023. If history does repeat, here's a growth stock that investors might want in their portfolio.
Image source: Getty Images.
The cloud is powering a shift in consumer habits
The way we shop has changed forever. Thanks to cloud computing, businesses can operate websites and digital applications for a minuscule cost. They no longer need to own the physical infrastructure; they can simply rent powerful data centers maintained by providers like Alphabet's Google Cloud or Microsoft Azure.
Managing brick-and-mortar physical stores is now optional for most businesses because they can reach a global customer base through their digital channels. But that does come with challenges. It can be difficult to determine what thousands of faceless customers have experienced online, and since it's so easy for them to jump across to a competitor, the business might not be aware a customer is unsatisfied until sales are already lost.
That's where Datadog (NASDAQ: DDOG) comes in. It has developed a cloud monitoring platform that serves as a guardian to a company's online assets. If there's a technical problem with a sales channel that is hurting the user experience, Datadog picks it up and notifies the operator immediately, before customers are affected. That's especially important because some issues might only be present in one specific geographic location, which the business might never detect if not for a tool like Datadog.
The platform isn't just for retailers, though. Datadog serves game developers, entertainment companies, manufacturers, and even the government. In fact, at the end of the first quarter of 2023, it had 25,500 customers, including 2,910 that were spending at least $100,000 per year. As cloud adoption grows, so will demand for the company's platform.
Datadog delivered stellar Q1 financial results
Last year, Datadog was one of just a handful of companies consistently increasing its financial guidance in the face of an incredibly difficult economy. That momentum carried into the first quarter of 2023.
First, it delivered revenue of $481.7 million, which was a 33% year-over-year jump, and comfortably beat its $470 million forecast. The company would have earned an additional $5 million in revenue if not for a service outage it experienced in March.
As a result, Datadog increased its guidance for the 2023 full year; it now expects to deliver as much as $2.1 billion in revenue, up from its previous estimate of $2.09 billion.
The company attributes the quarter's success to its new customer additions and the continued expansion of its product portfolio. It says there are now 5,000 businesses using its cloud security products, which include advanced threat detection and observability.
Datadog also noted a growing opportunity in artificial intelligence (AI). As a company that relies on mass volumes of data to deliver insights to businesses, it believes it's uniquely positioned to train AI models to help solve its customers' problems. While this effort is still in its early stages, the company says it expects to reveal further AI-based initiatives in the future.
Here's why Datadog stock is a buy right now
Datadog stock remains 60% below its all-time high following the broader sell-off in the technology sector throughout 2022. The company is now valued at about $25 billion, and based on its trailing-12-month revenue of $1.8 billion, its stock trades at a price-to-sales (P/S) ratio of 13.6.
Given the breadth of Datadog's product portfolio, it's a hybrid company that can be difficult to value. But it's a long way from its peak P/S multiple of 53, and it's currently close to cybersecurity leader CrowdStrike Holdings, which has a P/S ratio of 12.5. On the other hand, it's quite a bit more expensive than data-streaming company Confluent, which trades at a multiple of 10.
But valuation aside, Wall Street is overwhelmingly bullish on Datadog stock. Of the 37 analysts tracked by The Wall Street Journal, 21 have given it the highest-possible buy rating. A further seven are in the overweight (bullish) camp, while nine recommend holding. Not a single analyst recommends selling.
Datadog has a growing product portfolio and a growing addressable market. It's consistently adding big-spending customers, and increasing its revenue guidance has almost become a habit. A further improvement in market conditions could be the missing ingredient before the stock climbs toward its all-time high, so investors might do well to have it in their portfolio if history does repeat for the Nasdaq-100 this year.
10 stocks we like better than Datadog
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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.
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*Stock Advisor returns as of May 1, 2023
Suzanne Frey, an executive at Alphabet, 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 Alphabet, Confluent, CrowdStrike, Datadog, and Microsoft. The Motley Fool recommends Nasdaq. 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.
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That's where Datadog (NASDAQ: DDOG) comes in. In fact, the Nasdaq-100 has averaged a whopping 52% return in bounce-back years (excluding the dot-com period), which implies it still has plenty of room to run higher in the remainder of 2023. They no longer need to own the physical infrastructure; they can simply rent powerful data centers maintained by providers like Alphabet's Google Cloud or Microsoft Azure.
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That's where Datadog (NASDAQ: DDOG) comes in. Datadog delivered stellar Q1 financial results Last year, Datadog was one of just a handful of companies consistently increasing its financial guidance in the face of an incredibly difficult economy. As a result, Datadog increased its guidance for the 2023 full year; it now expects to deliver as much as $2.1 billion in revenue, up from its previous estimate of $2.09 billion.
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That's where Datadog (NASDAQ: DDOG) comes in. Datadog delivered stellar Q1 financial results Last year, Datadog was one of just a handful of companies consistently increasing its financial guidance in the face of an incredibly difficult economy. Here's why Datadog stock is a buy right now Datadog stock remains 60% below its all-time high following the broader sell-off in the technology sector throughout 2022.
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That's where Datadog (NASDAQ: DDOG) comes in. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Confluent, CrowdStrike, Datadog, and Microsoft.
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4b127b91-dde7-4072-8488-35e7726fee3e
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718248.0
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2023-05-10 00:00:00 UTC
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Worried About a Recession? 2 Excellent Growth Stocks to Buy Now and Hold
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DDOG
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https://www.nasdaq.com/articles/worried-about-a-recession-2-excellent-growth-stocks-to-buy-now-and-hold
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nan
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Many economic experts (including members of the Federal Reserve) expect a mild recession this year, but patient investors have no reason to worry. In fact, history says now is a good time to buy growth stocks. The S&P 500 Growth index produced a total return of 635% over the last two decades, despite the occurrence of two recessions, outpacing the 561% return of the broader S&P 500 index.
Here are two growth stocks to buy now and hold for the long term.
HubSpot: A leader in customer relationship management software
HubSpot (NYSE: HUBS) provides customer relationship management (CRM) software to small and medium-sized businesses (SMBs). Its platform includes productivity tools for sales, service, marketing, and operations teams. It also includes solutions for content management and payments. As a whole, HubSpot's CRM suite helps businesses build and maintain lasting relationships with their customers by providing a delightful experience at every stage of the customer journey.
HubSpot competes with larger CRM vendors like Salesforce, but the company has still thrived due to its focus on the underserved SMB market. HubSpot has also taken a different tack with respect to product development. Whereas Salesforce has added features by acquiring other companies, HubSpot has leaned more heavily on internal product development, creating an easy-to-use CRM suite that is free of integration challenges.
HubSpot reported solid financial results in the first quarter. Its customer count climbed 23% to 177,000, and the average subscription revenue per customer ticked 3% higher. In turn, revenue increased 27% to $502 million and non-GAAP net income soared 122% to $1.20 per diluted share. i
Investors should expect that momentum to continue. CRM software plays a key role in helping businesses attract and retain customers, and HubSpot is the leading CRM vendor among small businesses. Even more impressive, research company G2 recently ranked HubSpot as the best global software seller of any kind based on its strong market presence and high user satisfaction scores.
On that note, HubSpot believes its total addressable market will reach $72 billion by 2027, leaving plenty of room for growth (and plenty of upside for investors). Yet, shares trade at 11.7 times sales, a sizable discount to the three-year average of 17.3 times sales. That's why this growth stock is worth buying today.
Datadog: A leader in observability software
Datadog (NASDAQ: DDOG) provides monitoring software for development, operations, and security teams. Its platform comprises over a dozen discrete products that give clients visibility across their IT environment, helping them keep their applications and infrastructure performant and secure. Datadog provides more than 600 prebuilt integrations that simplify deployment, and its artificial intelligence (AI) engine accelerates the resolution of problems by automating tasks like anomaly detection and root cause analysis.
Datadog has a strong market presence in several observability software verticals. Consultancy Gartner recognized the company as a leader in application performance monitoring and observability last year, and Forrester Research recognized its leadership in AI for IT operations. More recently, G2 named Datadog a leader in cloud infrastructure monitoring and server monitoring.
Datadog reported solid financial results in the first quarter, displaying an ability to onboard new customers and command loyalty even in a difficult economic environment. Its customer count climbed 29% to 25,500, and its net retention rate once again exceeded 130%, meaning the average customer spent at least 30% more over the past year. In turn, first-quarter revenue increased 33% to $482 million and non-GAAP net income jumped 17% to $0.28 per diluted share.
Looking ahead, digital transformation should be a tailwind for Datadog. Cloud migration is making IT environments more complex and more vulnerable to attack, creating a need for effective observability and security software. Datadog addresses both needs with a single platform, and management says its market opportunity will hit $62 billion by 2026.
Currently, shares trade at 13.5 times sales, an absolute bargain compared to the three-year average of 38.5 times sales. That's why this growth stock is worth buying today.
10 stocks we like better than HubSpot
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 HubSpot 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 May 1, 2023
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, HubSpot, and Salesforce. 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.
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Datadog: A leader in observability software Datadog (NASDAQ: DDOG) provides monitoring software for development, operations, and security teams. Whereas Salesforce has added features by acquiring other companies, HubSpot has leaned more heavily on internal product development, creating an easy-to-use CRM suite that is free of integration challenges. Even more impressive, research company G2 recently ranked HubSpot as the best global software seller of any kind based on its strong market presence and high user satisfaction scores.
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Datadog: A leader in observability software Datadog (NASDAQ: DDOG) provides monitoring software for development, operations, and security teams. HubSpot: A leader in customer relationship management software HubSpot (NYSE: HUBS) provides customer relationship management (CRM) software to small and medium-sized businesses (SMBs). Consultancy Gartner recognized the company as a leader in application performance monitoring and observability last year, and Forrester Research recognized its leadership in AI for IT operations.
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Datadog: A leader in observability software Datadog (NASDAQ: DDOG) provides monitoring software for development, operations, and security teams. HubSpot: A leader in customer relationship management software HubSpot (NYSE: HUBS) provides customer relationship management (CRM) software to small and medium-sized businesses (SMBs). CRM software plays a key role in helping businesses attract and retain customers, and HubSpot is the leading CRM vendor among small businesses.
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Datadog: A leader in observability software Datadog (NASDAQ: DDOG) provides monitoring software for development, operations, and security teams. HubSpot: A leader in customer relationship management software HubSpot (NYSE: HUBS) provides customer relationship management (CRM) software to small and medium-sized businesses (SMBs). Its platform includes productivity tools for sales, service, marketing, and operations teams.
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01593bd2-c757-47f0-9a72-b63f05ff0643
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718249.0
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2023-05-09 00:00:00 UTC
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Palantir: Bottoming On Unprecedented Demand
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DDOG
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https://www.nasdaq.com/articles/palantir%3A-bottoming-on-unprecedented-demand
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nan
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nan
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Palantir (NYSE: PLTR) shares rocketed higher for various reasons that add up to 1 thing: positive GAAP cash flow and the expectations for positive cash flow to continue through the end of the year. This news is unsurprising, given the company’s position as a cloud-based cyber-security data-management firm, but the 25% pop in share prices was. Based on the results from Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG) and others in the cloud industry, this is good news for Palantir and the group, which has been beaten down over the past year. The takeaway is that Palantir stock is bottoming, and the analysts’ all-seeing eye forecasts higher share prices are ahead.
Palantir Results Driven By AI
Palantir results are positive on all counts. The company reported $525.19 million in revenue to beat the Marketbeat.com consensus by nearly 400 basis points. The gain was driven by strength in all categories, led by strength in the US. US sales grew by 23% compared to lower rates globally, with Government spending up 20% (22% in the US) and Consumer up 15% (26% in the US).
“The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent,” wrote Alexander C. Karp, co-founder and CEO of Palantir Technologies Inc.
The margin news is what got the market moving so sharply. The company reported its 2nd consecutive quarter of positive GAAP net income and the 1st quarter of positive GAAP operating income and is forecasting profitability through the end of the year. This results in an adjusted operating margin of 24% and a 36% increase in cash from ops and free cash flow.
Looking forward, the company expects Q2 to be a little soft relative to the analyst expectations but for momentum to build through the end of the year. The FY revenue target brackets the consensus figure with the midpoint above the analysts' target. Because the customer count grew by 41% YOY and 7% sequentially to outpace revenue growth by a wide margin, there is a chance guidance is cautious. Accelerated adoption of AI-powered cloud services and security features coupled with deepening penetration of services could be the ticket to outperformance.
The Analysts' Response Is Mixed
The analysts are generally optimistic about Palantir’s Q1 results and guidance, but there is a note of caution within the group. At least 2 firms with Sell or Underperform ratings have commented that the results are not all that impressive, and range-bound conditions are likely to continue. That is offset by upbeat commentary from Bank Of America, which has a Buy rating and price target of $13, and 2 price target increases from Jeffries and Deutsche Bank. The takeaway is that Palantir is rated a firm Hold, which has held steady over the past year, and the consensus price target, now below the price action, is still trending lower compared to last year, although that trend may be ending.
Palantir stock is trading at a critical level that may cap gains. That level is the low set on the opening day of trains near $8.90. Until the market moves above that level, there is a risk that range-bound conditions will persist at the current lows. However, the Q2 results may drive a shift in conviction for this market and get the price back above that critical level. In that scenario, a sustainable rally may form.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on the results from Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG) and others in the cloud industry, this is good news for Palantir and the group, which has been beaten down over the past year. The takeaway is that Palantir stock is bottoming, and the analysts’ all-seeing eye forecasts higher share prices are ahead. “The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent,” wrote Alexander C. Karp, co-founder and CEO of Palantir Technologies Inc.
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Based on the results from Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG) and others in the cloud industry, this is good news for Palantir and the group, which has been beaten down over the past year. Palantir (NYSE: PLTR) shares rocketed higher for various reasons that add up to 1 thing: positive GAAP cash flow and the expectations for positive cash flow to continue through the end of the year. The company reported its 2nd consecutive quarter of positive GAAP net income and the 1st quarter of positive GAAP operating income and is forecasting profitability through the end of the year.
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Based on the results from Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG) and others in the cloud industry, this is good news for Palantir and the group, which has been beaten down over the past year. Palantir (NYSE: PLTR) shares rocketed higher for various reasons that add up to 1 thing: positive GAAP cash flow and the expectations for positive cash flow to continue through the end of the year. Palantir Results Driven By AI Palantir results are positive on all counts.
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Based on the results from Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG) and others in the cloud industry, this is good news for Palantir and the group, which has been beaten down over the past year. Palantir (NYSE: PLTR) shares rocketed higher for various reasons that add up to 1 thing: positive GAAP cash flow and the expectations for positive cash flow to continue through the end of the year. The takeaway is that Palantir is rated a firm Hold, which has held steady over the past year, and the consensus price target, now below the price action, is still trending lower compared to last year, although that trend may be ending.
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5c6161fd-34e8-40c2-a21d-91ce2b349c42
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718250.0
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2023-05-09 00:00:00 UTC
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William Blair Reiterates Datadog, Inc. (DDOG) Outperform Recommendation
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DDOG
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https://www.nasdaq.com/articles/william-blair-reiterates-datadog-inc.-ddog-outperform-recommendation
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nan
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Fintel reports that on May 8, 2023, William Blair reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation.
Analyst Price Forecast Suggests 29.11% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 29.11% from its latest reported closing price of 78.54.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 13 owner(s) or 1.00% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.85%. Total shares owned by institutions decreased in the last three months by 1.63% to 261,577K shares.
The put/call ratio of DDOG is 0.74, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 8, 2023, William Blair reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.85%. The put/call ratio of DDOG is 0.74, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, William Blair reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.85%. The put/call ratio of DDOG is 0.74, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, William Blair reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.85%. The put/call ratio of DDOG is 0.74, indicating a bullish outlook.
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Fintel reports that on May 8, 2023, William Blair reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.85%. The put/call ratio of DDOG is 0.74, indicating a bullish outlook.
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e142073b-58f8-448c-bc96-d990eb005d84
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718251.0
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2023-05-09 00:00:00 UTC
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Snowflake Upgraded As Headwinds Ease: AI In Focus
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DDOG
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https://www.nasdaq.com/articles/snowflake-upgraded-as-headwinds-ease%3A-ai-in-focus
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nan
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Snowflake’s (NASDAQ: SNOW) price has melted over the past 18 months, but the bottom for this market is in. A new upgrade from Stifel Nicolaus coincides with bottoming in the price action, which points to an upswing this year. Stifel upgraded the stock to Buy from Hold, marking the first significant positive activity in over 3 months. In their eyes, commentary from other cloud operators such as Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG), JFrog (NASDAQ: FROG) and others point to easing headwinds within the industry.
Stifel analyst Brad Reback sees easing comps in the back half of the year, leading to Snowflake growth stabilizing in the high 30% range. This is down from the +50% it has been posting but in line with the broader consensus, calling for 38% top-line growth in 2023, and the consensus is likely cautious. Mr. Reback also sees margins and free cash flow moving “meaningfully higher," which would catalyze share prices.
Microsoft And Generative AI Leads Cloud Stocks Higher
Generative AI is expected to underpin the strength of Snowflake because its cloud-based data storage capability goes hand in hand with AI's need for data. AI is expected to grow from about $100 billion this year to over $2 trillion by the early 2030s, with most of the growth in services. This presents a significant opportunity for Snowflake, provided it can monetize it successfully. Among other drivers, Snowflake should be able to leverage its vast information storehouse and lower development costs for AI companies.
Microsoft had a solid quarter underpinned by core segments but led by Azure. Growth in Azure cloud services grew by 11% and was, in turn, led by AI. The Intelligent Cloud segment grew by 16%, spurring CEO Satya Nadella to comment on a new age of computing dominated by intelligent devices. This news helped support Snowflake and others and sparked a round of upgrades for Microsoft stock. Analysts are hailing the long-term opportunities inherent in adding generative AI services to Microsoft's core businesses.
Datadog sent its shares up more than 14% after it reported a solid quarter and raised guidance. The cloud-centric cyber security company reported top and bottom line strength driven by the growth of large corporate clients. The company also raised its guidance for the year, including a wider margin and above-consensus forecasts, which investors might expect from Snowflake when it reports on May 24th.
The Sell-Side Is Buying Snowflake
Upgrade aside, the 37 analysts rating Snowflake have it pegged at a Moderate Buy, which has held steady over the last 12 months. The price target is down compared to last year but firming compared to last month and helping the stock to bottom. The consensus target is near $185, which is worth about 10% of upside. The institutions are also helping the stock to bottom, although their activity has slacked off over the past 3 quarters. As it is, the institutions own about 65% of the stock and can be expected to lend support, assuming no adverse changes in the outlook for AI.
The chart is promising because Snowflake price action has bottomed and moved above the 150-day moving average. That is a sign of support from long-term traders that could keep the stock moving sideways if not get it moving higher. The indicators are consistent with upward movement, so a test of resistance at higher levels is expected. Significant resistance is expected near $177 and $200, where gains may be capped without additional analysts price target increases.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In their eyes, commentary from other cloud operators such as Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG), JFrog (NASDAQ: FROG) and others point to easing headwinds within the industry. Stifel analyst Brad Reback sees easing comps in the back half of the year, leading to Snowflake growth stabilizing in the high 30% range. The cloud-centric cyber security company reported top and bottom line strength driven by the growth of large corporate clients.
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In their eyes, commentary from other cloud operators such as Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG), JFrog (NASDAQ: FROG) and others point to easing headwinds within the industry. Microsoft And Generative AI Leads Cloud Stocks Higher Generative AI is expected to underpin the strength of Snowflake because its cloud-based data storage capability goes hand in hand with AI's need for data. Microsoft had a solid quarter underpinned by core segments but led by Azure.
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In their eyes, commentary from other cloud operators such as Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG), JFrog (NASDAQ: FROG) and others point to easing headwinds within the industry. Microsoft And Generative AI Leads Cloud Stocks Higher Generative AI is expected to underpin the strength of Snowflake because its cloud-based data storage capability goes hand in hand with AI's need for data. The Sell-Side Is Buying Snowflake Upgrade aside, the 37 analysts rating Snowflake have it pegged at a Moderate Buy, which has held steady over the last 12 months.
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In their eyes, commentary from other cloud operators such as Microsoft (NASDAQ: MSFT), Datadog (NASDAQ: DDOG), JFrog (NASDAQ: FROG) and others point to easing headwinds within the industry. Growth in Azure cloud services grew by 11% and was, in turn, led by AI. Analysts are hailing the long-term opportunities inherent in adding generative AI services to Microsoft's core businesses.
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cb04af34-7995-42ab-98e9-4210d7e89bf3
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718252.0
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2023-05-09 00:00:00 UTC
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Where Will Datadog Stock Be in 1 Year?
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DDOG
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https://www.nasdaq.com/articles/where-will-datadog-stock-be-in-1-year
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nan
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Datadog's (NASDAQ: DDOG) stock price surged 15% on May 4 after the data visualization company posted its first-quarter earnings report. Its revenue rose 33% year over year to $482 million and beat analysts' estimates by $13 million. Its adjusted net income grew 17% to $98 million, or $0.28 per share, and cleared the consensus forecast by $0.04 per share.
Datadog's headline numbers were impressive, but its stock still trades more than 60% below its all-time high from November 2021. Could this out-of-favor hypergrowth play bounce back over the next 12 months?
Image source: Getty Images.
Why did Datadog's stock drop from its all-time highs?
Datadog collects diagnostic data from an organization's servers, databases, and apps in real-time, then displays all of that information on unified dashboards. That approach breaks down the silos between different types of computing platforms, which makes it easier for IT professionals to quickly spot and diagnose problems.
Datadog has grown rapidly since its IPO in 2019. Between 2019 and 2022, its annual revenue grew at a compound annual growth rate (CAGR) of 67%. Its number of larger customers -- which generate at least $100,000 in annual recurring revenues (ARR) -- expanded at a CAGR of 48% from 858 at the end of 2019 to 2,780 at the end of 2022.
In the first quarter of 2023, that high-value cohort grew another 29% year over year to 2,910 customers. But if we look back over the past year, its growth in higher-value customers and total revenue has consistently decelerated.
METRIC
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
(YOY) Growth in customers with ARR over $100,000
60%
54%
44%
38%
29%
Revenue growth (YOY)
83%
74%
61%
44%
33%
Data source: Datadog. YOY = Year-over-year.
That slowdown wasn't too surprising, since it's incredibly difficult for a company to keep growing at 60%-70% over the long term. The macro headwinds have also forced many companies to rein in their spending on cloud-based software.
That slowdown made it difficult for Datadog to justify its premium valuations. At its record high on Nov. 9, 2021, Datadog's enterprise value hit $60.6 billion -- or 36 times the revenue it would generate in 2022. That nosebleed valuation made it an easy target for the bears as rising interest rates drove investors toward more conservative investments.
Datadog expects its revenue to rise 24%-25% in 2023, which would represent a significant slowdown from its 63% growth in 2022. But at its current enterprise value of $23.2 billion, its stock trades at 11 times this year's sales.
That valuation is reasonable relative to other cloud-based companies with similar growth rates. ServiceNow, the digital workflow company which is expected to grow its revenue by 22% this year, trades at 10 times that forecast.
It's still ramping up its spending as its growth cools off
Datadog is still squeezing out more revenue from its customers. Its trailing 12-month dollar-based net retention rate (NRR), which gauges its year-over-year revenue growth per existing customer, has stayed above 130% ever since its IPO. But during the first quarter conference call, CFO David Obstler warned that ratio could drop "below 130%" in the second quarter.
Nevertheless, Datadog's adjusted gross margin still held steady year over year at 80% in the first quarter, which suggests it still has plenty of pricing power against similar data visualization companies like Cisco's AppDynamics and New Relic. But its adjusted operating margin still fell by five percentage points to 18%. That decline was caused by a 45% jump in its adjusted operating expenses, which was largely driven by a higher headcount across its R&D and go-to-market departments.
That increased spending might be considered a green flag for Datadog -- especially since many other tech companies are cutting costs and executing mass layoffs to cope with the recent headwinds -- but it expects those rising expenses to reduce its adjusted operating margin from 19% in 2022 to about 17% in 2023.
Datadog expects its adjusted EPS to rise 15%-22 for the full year. At $77, its stock trades at about 66 times the midpoint of that forecast. ServiceNow, which is expected to grow its adjusted EPS by 25% this year, trades at 46 times that estimate.
Where will Datadog's stock be in a year?
Datadog is still growing, but it can't be considered a hypergrowth stock anymore. Its valuations have cooled but they're not cheap yet -- which suggests its stock could merely tread water until the macro environment improves. Datadog's downside should be limited over the next 12 months, but I don't expect it to skyrocket toward its all-time highs anytime soon.
10 stocks we like better than Datadog
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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.
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*Stock Advisor returns as of May 1, 2023
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems, Datadog, and ServiceNow. The Motley Fool recommends New Relic. 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.
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Datadog's (NASDAQ: DDOG) stock price surged 15% on May 4 after the data visualization company posted its first-quarter earnings report. Its trailing 12-month dollar-based net retention rate (NRR), which gauges its year-over-year revenue growth per existing customer, has stayed above 130% ever since its IPO. That increased spending might be considered a green flag for Datadog -- especially since many other tech companies are cutting costs and executing mass layoffs to cope with the recent headwinds -- but it expects those rising expenses to reduce its adjusted operating margin from 19% in 2022 to about 17% in 2023.
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Datadog's (NASDAQ: DDOG) stock price surged 15% on May 4 after the data visualization company posted its first-quarter earnings report. Between 2019 and 2022, its annual revenue grew at a compound annual growth rate (CAGR) of 67%. (YOY) Growth in customers with ARR over $100,000 60% 54% 44% 38% 29% Revenue growth (YOY) 83% 74% 61% 44% 33% Data source: Datadog.
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Datadog's (NASDAQ: DDOG) stock price surged 15% on May 4 after the data visualization company posted its first-quarter earnings report. (YOY) Growth in customers with ARR over $100,000 60% 54% 44% 38% 29% Revenue growth (YOY) 83% 74% 61% 44% 33% Data source: Datadog. Nevertheless, Datadog's adjusted gross margin still held steady year over year at 80% in the first quarter, which suggests it still has plenty of pricing power against similar data visualization companies like Cisco's AppDynamics and New Relic.
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Datadog's (NASDAQ: DDOG) stock price surged 15% on May 4 after the data visualization company posted its first-quarter earnings report. (YOY) Growth in customers with ARR over $100,000 60% 54% 44% 38% 29% Revenue growth (YOY) 83% 74% 61% 44% 33% Data source: Datadog. Nevertheless, Datadog's adjusted gross margin still held steady year over year at 80% in the first quarter, which suggests it still has plenty of pricing power against similar data visualization companies like Cisco's AppDynamics and New Relic.
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1b4f9f0a-c500-4d02-b814-a697b30aa078
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718253.0
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2023-05-08 00:00:00 UTC
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Is Datadog Stock Rising Too Much Too Fast?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-stock-rising-too-much-too-fast
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Datadog's (NASDAQ: DDOG) financial results were better than the stock market was expecting. Fool.com contributor and finance professor Parkev Tatevosian evaluates Datadog's first-quarter earnings and determines whether the stock price increase is justified.
*Stock prices used were the afternoon prices of May 5, 2023. The video was published on May 7, 2023.
10 stocks we like better than Datadog
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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 May 1, 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.
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Datadog's (NASDAQ: DDOG) financial results were better than the stock market was expecting. Fool.com contributor and finance professor Parkev Tatevosian evaluates Datadog's first-quarter earnings and determines whether the stock price increase is justified. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Datadog's (NASDAQ: DDOG) financial results were better than the stock market was expecting. Fool.com contributor and finance professor Parkev Tatevosian evaluates Datadog's first-quarter earnings and determines whether the stock price increase is justified. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Datadog's (NASDAQ: DDOG) financial results were better than the stock market was expecting. Fool.com contributor and finance professor Parkev Tatevosian evaluates Datadog's first-quarter earnings and determines whether the stock price increase is justified. 10 stocks we like better than Datadog When our analyst team has a stock tip, it can pay to listen.
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Datadog's (NASDAQ: DDOG) financial results were better than the stock market was expecting. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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79ea1c84-e1d0-4b68-8372-136ab7837b33
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718254.0
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2023-05-06 00:00:00 UTC
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RBC Capital Maintains Datadog, Inc. (DDOG) Outperform Recommendation
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DDOG
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https://www.nasdaq.com/articles/rbc-capital-maintains-datadog-inc.-ddog-outperform-recommendation
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nan
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Fintel reports that on May 5, 2023, RBC Capital maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation.
Analyst Price Forecast Suggests 32.43% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 32.43% from its latest reported closing price of 76.57.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1286 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 10 owner(s) or 0.77% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.99%. Total shares owned by institutions increased in the last three months by 0.99% to 261,944K shares.
The put/call ratio of DDOG is 0.80, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 5, 2023, RBC Capital maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.99%. The put/call ratio of DDOG is 0.80, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, RBC Capital maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.99%. The put/call ratio of DDOG is 0.80, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, RBC Capital maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.99%. The put/call ratio of DDOG is 0.80, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, RBC Capital maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 2.99%. The put/call ratio of DDOG is 0.80, indicating a bullish outlook.
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11c9521b-eb27-446c-a487-3d5fbd0a829b
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718255.0
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2023-05-05 00:00:00 UTC
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Datadog (DDOG) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q1-earnings-beat-estimates-revenues-rise-y-y
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Datadog DDOG reported first-quarter 2023 non-GAAP earnings of 28 cents per share, which increased 16.7% from the year-ago quarter.
The company’s net revenues of $481.7 million increased 32.7% year over year.
The Zacks Consensus Estimate for the bottom line was pegged at at a loss of 16 cents per share while that for the top line was $358 million.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Quarter Details
In the first quarter of 2023, Datadog had about 2,910 customers with an annual run rate of $100K or more, up from 2,250 in the year-ago quarter.
As of the end of the first quarter, 81% of customers used two or more products, which was in line with last year. Additionally, 43% of customers utilized four or more products, up from 35% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% for the 23rd consecutive quarter, as customers increased their usage and adopted more products.
Operating Details
In the first quarter, Datadog’s adjusted gross margin remained unchanged on a year-over-year basis at 80%.
Research & development expenses rose 46.4% on a year-over-year basis to $150.2 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, increased 290 basis points (bps) to 31.2%.
Sales and marketing expenses increased 41.9% year over year to $121 million. Sales and marketing expenses, as a percentage of revenues, grew 160 bps to 25.1%.
General & administrative expenses increased 49% year over year, reaching $30.1 million in the reported quarter. General & administrative expenses, as a percentage of revenues, expanded 70 bps to 6.2%.
Datadog reported non-GAAP operating income of $86.4 million compared with $83.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2023, Datadog had cash, cash equivalents, restricted cash and marketable securities of $2 billion compared with $1.9 billion as of Dec 31, 2022.
Operating cash flow was $133.8 million in the reported quarter, up from $114.4 million reported in the previous quarter.
Free cash flow during the quarter was $116.3 million compared with $96.4 million in the prior quarter.
Guidance
For the second quarter of 2023, Datadog anticipates revenues between $498 million and $502 million. The Zacks Consensus Estimate for the same is pegged at $498.65 million.
Non-GAAP earnings are expected in the range of 27-29 cents per share. The consensus mark for earnings is pegged at 26 cents per share.
Non-GAAP operating income is expected in the range of $82-$86 million.
For 2023, Datadog anticipates revenues between $2.08 billion and $2.10 billion. The Zacks Consensus Estimate for the same is pegged at $2.08 billion.
Non-GAAP earnings are expected between $1.13 and $1.20 per share. The Zacks Consensus Estimate for earnings is pegged at $1.07 per share.
Non-GAAP operating income is expected in the range of $340-$360 million.
Q1 Highlights
Datadog had its strongest quarter for new logo ARR bookings. The sales of new logo and cross selling have been rising year over year and total ARR exceeded $2 billion for the first time.
In the first quarter, Datadog announced the general availability of Data Streams Monitoring, which makes it easier for organizations to manage and track the performance of event-driven applications that rely on technologies like Kafka and RabbitMQ to transfer data. Data Streams Monitoring is the first and only solution that automatically visualizes all interdependencies and key health metrics across all streaming data pipelines.
Datadog launched a new data center in Tokyo, Japan. This is Datadog’s first data center in Asia. It also adds to existing locations in the United States, Europe and AWS GovCloud.
Datadog announced the general availability of Application Vulnerability Management, which expands Datadog's application security capabilities by automatically uncovering and prioritizing the most important vulnerabilities in open-source libraries.
Some of the notable deals in first-quarter 2023 included seven-figure deals with a Fortune 500 health care company and a major university in Australia, a high seven-figure deal with one of the world’s largest fintech company and a six-figure deal with a multinational clothing company.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some top-ranked stocks like Enfusion ENFN, Sea Limited SE and Box BOX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enfusion, Sea Limited and Box are scheduled to report quarterly results on May 9, May 16 and May 30, respectively.
The Zacks Consensus Estimate for ENFN’s first-quarter 2023 earnings is pegged at 3 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for SE’s first-quarter 2023 earnings is pegged at 73 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for BOX’s first-quarter 2023 earnings is pegged at 27 cents per share, unchanged over the past 30 days.
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 >>
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Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report
Box, Inc. (BOX) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Enfusion, Inc. (ENFN) : 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.
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Datadog DDOG reported first-quarter 2023 non-GAAP earnings of 28 cents per share, which increased 16.7% from the year-ago quarter. Click to get this free report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Enfusion, Inc. (ENFN) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for ENFN’s first-quarter 2023 earnings is pegged at 3 cents per share, unchanged over the past 30 days.
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Click to get this free report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Enfusion, Inc. (ENFN) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG reported first-quarter 2023 non-GAAP earnings of 28 cents per share, which increased 16.7% from the year-ago quarter. Datadog announced the general availability of Application Vulnerability Management, which expands Datadog's application security capabilities by automatically uncovering and prioritizing the most important vulnerabilities in open-source libraries.
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Click to get this free report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Enfusion, Inc. (ENFN) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG reported first-quarter 2023 non-GAAP earnings of 28 cents per share, which increased 16.7% from the year-ago quarter. Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote Quarter Details In the first quarter of 2023, Datadog had about 2,910 customers with an annual run rate of $100K or more, up from 2,250 in the year-ago quarter.
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Datadog DDOG reported first-quarter 2023 non-GAAP earnings of 28 cents per share, which increased 16.7% from the year-ago quarter. Click to get this free report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Box, Inc. (BOX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Enfusion, Inc. (ENFN) : Free Stock Analysis Report To read this article on Zacks.com click here. General & administrative expenses increased 49% year over year, reaching $30.1 million in the reported quarter.
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8a64035d-2d2e-4eda-b471-f7092257d325
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718256.0
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2023-05-05 00:00:00 UTC
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Jefferies Maintains Datadog, Inc. (DDOG) Buy Recommendation
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DDOG
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https://www.nasdaq.com/articles/jefferies-maintains-datadog-inc.-ddog-buy-recommendation
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nan
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nan
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Fintel reports that on May 5, 2023, Jefferies maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation.
Analyst Price Forecast Suggests 34.49% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 34.49% from its latest reported closing price of 75.40.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 11 owner(s) or 0.85% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. Total shares owned by institutions increased in the last three months by 0.99% to 261,947K shares.
The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 5, 2023, Jefferies maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Jefferies maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Jefferies maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Jefferies maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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dfff87a4-27b4-4b65-a724-b613981143a7
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718257.0
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2023-05-05 00:00:00 UTC
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Credit Suisse Reiterates Datadog, Inc. (DDOG) Outperform Recommendation
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DDOG
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https://www.nasdaq.com/articles/credit-suisse-reiterates-datadog-inc.-ddog-outperform-recommendation
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nan
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Fintel reports that on May 5, 2023, Credit Suisse reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation.
Analyst Price Forecast Suggests 34.49% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 34.49% from its latest reported closing price of 75.40.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 11 owner(s) or 0.85% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. Total shares owned by institutions increased in the last three months by 0.99% to 261,947K shares.
The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 5, 2023, Credit Suisse reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Credit Suisse reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Credit Suisse reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Credit Suisse reiterated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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e861702e-bc38-4357-be73-844833aaa640
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718258.0
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2023-05-05 00:00:00 UTC
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3 Nasdaq 100 Stocks That Are Surefire Buys in May
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DDOG
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https://www.nasdaq.com/articles/3-nasdaq-100-stocks-that-are-surefire-buys-in-may
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Things can change pretty quickly on Wall Street. In 2021, stocks could seemingly do no wrong, with all three major indexes cresting to new highs. In 2022, these same indexes all plunged into respective bear markets, with the growth-driven Nasdaq Composite and Nasdaq 100 -- an index comprised of the 100 largest nonfinancial stocks listed on the Nasdaq exchange -- losing a third of their value.
However, big declines often yield big opportunity for investors. No matter how painful a decline has been for a major stock index throughout history, that loss was eventually (key word!) fully recouped during a bull market. It means the short-term pain the Nasdaq 100 has endured is the ideal time for long-term investors to pounce.
What follows are three Nasdaq 100 stocks that stand out as surefire buys in May.
Image source: Getty Images.
Datadog
The first Nasdaq 100 stock that makes for a phenomenal buy in May following a miserable 2022 is cloud-based observability company Datadog (NASDAQ: DDOG).
Probably the biggest knock against Datadog is the growing expectation the U.S. economy will fall into a recession in the not-too-distant future. With the Federal Reserve now modeling a "mild recession" into its outlook for later this year, there's the concern that demand for anything involving software-as-a-service (SaaS) solutions, including monitoring, could taper.
Thankfully for Datadog, it's benefiting from macro and company-specific catalysts, which should help it successfully navigate a potential economic downturn.
In terms of the former, the COVID-19 pandemic has reshaped the labor force. Despite some people returning to the office, more folks than ever are working remotely. This historically large remote workforce has increased the importance of application monitoring in a very short time. Gartner expects Datadog's addressable market for observability will catapult by roughly 50% to $62 billion between 2022 and 2026.
On a company-specific level, Datadog pointed out in February that its key growth driver is still in its very early stages. Corporate cloud spending as a percentage of global infrastructure technology spend is expected to grow from around 8% in 2021 to an estimated 20% by 2026. Datadog's observability opportunity is still in its early innings.
But what's been particularly impressive is Datadog's ability to score big clients. The number of customers generating at least $1 million in annual recurring revenue (ARR) skyrocketed from 11 in 2017 to 317 in 2022. Further, 85% of the company's total ARR now derives from the 12% of customers (approximately 2,780) with at least $100,000 in ARR (note, this write-up was done prior to Datadog's first-quarter earnings release on May 4). Add-on sales from these big fish should help Datadog sustain a sales growth rate of 25%, if not higher.
Despite a seemingly frothy valuation based on the traditional price-to-earnings ratio, Datadog's price-to-earnings-growth ratio (PEG ratio) of 1.5 suggests it's an attractive deal.
JD.com
A second magnificent Nasdaq 100 growth stock that's a surefire buy in May is China-based e-commerce company JD.com (NASDAQ: JD).
China stocks have had a rough go in numerous respects since the COVID-19 pandemic began. The zero-COVID mitigation strategy in that country led to three years of stringent, unpredictable lockdowns that hurt supply chains in most sectors and industries. Thankfully, things have changed.
Following domestic protests, China's regulators ended the controversial zero-COVID strategy in December. Though it could take some time for China's citizens to build up some degree of vaccine-based or natural immunity to the SARS-CoV-2 virus that causes COVID-19, this was a necessary move by regulators to jump-start the world's No. 2 economy. This removes a big overhang for a growth stalwart like JD.com.
There's also been some concern about JD getting into a price war with China's other key e-commerce players, such as Alibaba (NYSE: BABA). However, these skeptics are overlooking a sizable difference in the operating models between Alibaba and JD.
The former generates the majority of its sales from third-party marketplaces, whereas JD predominantly operates as a direct-to-consumer retailer. In other words, it's handling the inventory and logistics necessary for order-to-doorstep delivery. JD's operating model gives it greater control over its expenses than Alibaba, which I expect will lead to better operating margin and a higher sustained organic growth rate.
JD.com also has an opportunity to unlock shareholder value by following in Alibaba's footsteps and spinning off key assets. In late March, JD announced plans to spin off its property and industrial segments and list them on the Hong Kong stock exchange. Doing so should make future operating results even easier for investors to understand.
Lastly, JD.com is cheaper than it's ever been as a publicly traded company. Shares can be purchased for just over 10 times Wall Street's consensus earnings for 2024. Even taking into account the added risks associated with China stocks, JD's superior growth rate makes its stock a steal.
Image source: Getty Images.
PayPal Holdings
The third Nasdaq 100 stock that's a surefire buy in May is none other than fintech stock PayPal Holdings (NASDAQ: PYPL).
Arguably the biggest issue for PayPal is the historically high inflation consumers and businesses have been dealing with over the past year. Rapidly rising prices for goods and services threatens to reduce the purchasing power of low-earning workers. It could also lower the number of transactions completed on PayPal or Venmo, the company's two core digital transaction networks.
Interestingly, though, PayPal has struggled far less than you'd imagine. Total payment volume (TPV) reached $1.36 trillion in 2022, which represents a 13% increase from the prior-year period, excluding currency movements. Keep in mind that this 13% growth rate occurred with inflation at a four-decade high and U.S. gross domestic product shrinking in the first half of 2022. It's a testament to the growth potential of digital transactions and suggests a return to 20%-plus annual TPV growth is possible once the U.S. economy is firing on all cylinders again.
But as I've previously pointed out, PayPal's greatest strength is its user engagement. At the end of 2020, active accounts were completing an average of 40.9 transactions over the trailing-12-month (ttm) period. That compares to the 51.4 average transactions per active account over the ttm at the end of 2022. Since PayPal is primarily a fee-driven business, more transactions will almost certainly mean higher gross profit for the company.
Although PayPal is a growth company, CEO Dan Schulman isn't oblivious to his company's near-term challenges. That's why Schulman outlined plans to reduce annual expenditures by at least $1.3 billion in 2023. Further, PayPal's board approved buying back up to $15 billion worth of common stock. Fewer shares outstanding should result in a boost to earnings per share, which would make PayPal's stock appear even more attractive.
Like JD.com, PayPal is as cheap as it's ever been as a publicly traded company. Investors can scoop up shares right now for 13 times Wall Street's consensus earnings for 2024. For context, PayPal has averaged a forward price-to-earnings ratio of 35 over the past five years. This makes it nothing short of a screaming bargain.
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 May 1, 2023
Sean Williams has positions in PayPal. The Motley Fool has positions in and recommends Datadog, JD.com, and PayPal. The Motley Fool recommends Gartner and Nasdaq and recommends the following options: short June 2023 $67.50 puts on PayPal. 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.
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Datadog The first Nasdaq 100 stock that makes for a phenomenal buy in May following a miserable 2022 is cloud-based observability company Datadog (NASDAQ: DDOG). With the Federal Reserve now modeling a "mild recession" into its outlook for later this year, there's the concern that demand for anything involving software-as-a-service (SaaS) solutions, including monitoring, could taper. The zero-COVID mitigation strategy in that country led to three years of stringent, unpredictable lockdowns that hurt supply chains in most sectors and industries.
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Datadog The first Nasdaq 100 stock that makes for a phenomenal buy in May following a miserable 2022 is cloud-based observability company Datadog (NASDAQ: DDOG). Despite a seemingly frothy valuation based on the traditional price-to-earnings ratio, Datadog's price-to-earnings-growth ratio (PEG ratio) of 1.5 suggests it's an attractive deal. Even taking into account the added risks associated with China stocks, JD's superior growth rate makes its stock a steal.
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Datadog The first Nasdaq 100 stock that makes for a phenomenal buy in May following a miserable 2022 is cloud-based observability company Datadog (NASDAQ: DDOG). JD.com A second magnificent Nasdaq 100 growth stock that's a surefire buy in May is China-based e-commerce company JD.com (NASDAQ: JD). PayPal Holdings The third Nasdaq 100 stock that's a surefire buy in May is none other than fintech stock PayPal Holdings (NASDAQ: PYPL).
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Datadog The first Nasdaq 100 stock that makes for a phenomenal buy in May following a miserable 2022 is cloud-based observability company Datadog (NASDAQ: DDOG). In 2022, these same indexes all plunged into respective bear markets, with the growth-driven Nasdaq Composite and Nasdaq 100 -- an index comprised of the 100 largest nonfinancial stocks listed on the Nasdaq exchange -- losing a third of their value. Gartner expects Datadog's addressable market for observability will catapult by roughly 50% to $62 billion between 2022 and 2026.
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09d79dff-4f12-453f-8f0a-226e334973f4
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718259.0
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2023-05-05 00:00:00 UTC
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Mizuho Maintains Datadog, Inc. (DDOG) Buy Recommendation
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https://www.nasdaq.com/articles/mizuho-maintains-datadog-inc.-ddog-buy-recommendation-0
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Fintel reports that on May 5, 2023, Mizuho maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation.
Analyst Price Forecast Suggests 34.49% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 34.49% from its latest reported closing price of 75.40.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 11 owner(s) or 0.85% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. Total shares owned by institutions increased in the last three months by 0.99% to 261,947K shares.
The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 5, 2023, Mizuho maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Mizuho maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Mizuho maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 5, 2023, Mizuho maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 3.77%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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2ab4b91d-6d52-4504-8813-5353ca2820b4
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718260.0
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2023-05-04 00:00:00 UTC
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Needham Maintains Datadog, Inc. (DDOG) Buy Recommendation
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DDOG
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https://www.nasdaq.com/articles/needham-maintains-datadog-inc.-ddog-buy-recommendation
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Fintel reports that on May 4, 2023, Needham maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation.
Analyst Price Forecast Suggests 54.02% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 54.02% from its latest reported closing price of 65.84.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 26.10%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1286 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 12 owner(s) or 0.92% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.64%. Total shares owned by institutions decreased in the last three months by 0.51% to 261,972K shares.
The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 4, 2023, Needham maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.64%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 4, 2023, Needham maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.64%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 4, 2023, Needham maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.64%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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Fintel reports that on May 4, 2023, Needham maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Buy recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.64%. The put/call ratio of DDOG is 0.69, indicating a bullish outlook.
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38f3e9d7-09bf-4cab-a298-1e3995edda84
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718261.0
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2023-05-04 00:00:00 UTC
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Datadog (DDOG) Q1 2023 Earnings Call Transcript
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q1-2023-earnings-call-transcript
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Image source: The Motley Fool.
Datadog (NASDAQ: DDOG)
Q1 2023 Earnings Call
May 04, 2023, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to the first-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, Michelle. Good morning, and thank you for joining us to review Datadog's first-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 second quarter and the fiscal year 2023 and related notes and assumptions, our gross margins and operating margins, our strategy, our product capabilities, and our ability to capitalize on market opportunities.
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-K for the year-ended December 31st, 2022. Additional information will be made available in our upcoming Form 10-Q for the fiscal quarter-ended March 31st, 2023, and other filings with the SEC.
10 stocks we like better than Datadog
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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.
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*Stock Advisor returns as of May 1, 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. Thank you all for joining us this morning. We are pleased with our execution in Q1 as we continued broadening our platform, delivering new use cases for our existing users, as well as signing up more customers, all on the backdrop of continued macro uncertainty and optimization of cloud workloads. Let me start with a review of our Q1 financial performance.
In Q1, revenue was $482 million, an increase of 33% year over year and above the high end of our guidance range. Note that this number factors in the impact of a service outage we experienced in March and which reduced our revenue for the quarter by about $5 million. We ended with about 25,500 customers from about 19,800 last year. Also note that we are now including customers who joined following our acquisition of Cloudcraft, representing about 1,400 net new customers to Datadog this quarter.
We ended the quarter with about 2,910 customers with ARR of $100,000 or more, up from about 2,250 last year. The customers generated about 85% of our ARR. And we generated free cash flow of $116 million, with a free cash flow margin of 24%. Our platform strategy continues to resonate in the market.
As of the end of Q1, 81% of customers were using two or more products in line with last year. 43% of customers were using four or more products, up from 35% a year ago. And 19% of our customers were using six or more products, up from 12% last year. Now, let's discuss this quarter's business drivers.
Overall, we experienced business conditions that were similar to the previous several quarters. In Q1, users growth from existing customers came in roughly as expected. We saw existing customer users growth in Q1 improved from the levels we saw in Q4 but remain a bit lower than the levels we experienced in Q2 and Q3. And as in recent quarters, we continue to see customers optimize their cloud spend, particularly those further along in their cloud migration and hosting a larger portion of their infrastructure in the cloud.
Additionally, our new logo acquisition and bookings in Q1 were solid for what is a seasonally slower quarter. New local bookings reached a new record for Q1 and were up slightly from last year as we continued to add many promising new logos, which I'll discuss in a bit. With our land and expand model, we expect many of these new logos will turn into much larger customers as they add up more of our products over time. Despite a more cost-conscious demand environment, we have continued to land new customers and expand existing ones, and we are very proud to achieve several key milestones in Q1.
So, first, our total ARR exceeded $2 billion for the first time, a true achievement for all of us at Datadog even though we all know we're only getting started. Second, our APM suite and log management products together exceeded $1 billion in ARR. This demonstrates the expansion of our business well beyond our first infrastructure monitoring product and our successful execution on the broad observability platform. Remember that our APM suite includes four Datadog products: core APM, synthetics, real user monitoring, and continuous profiler.
Third, we continue to make steady progress with our cloud security products with continued growth in ARR and in customers. And I'm very pleased to announce that we now have more than 5,000 customers using our cloud security products. Now, let's move on to R&D. We introduced a number of new security capabilities last month.
We announced the general availability of Application Vulnerability Management, which provides visibility into the attack surface of production environment by automatically surfacing vulnerabilities. And instead of submerging users with thousands upon thousands of vulnerabilities, this new functionality uses observability data to prioritize risks based on the estimated impact to the business and closes the loop between security, operations, and development teams. We also introduced a number of new capabilities to our Cloud Security Management product. Workload security profiles allow customers to flag anomalous activity and improve overall accuracy of threat detection directly within their workload.
And we now offer vulnerability detection for containers, automatically scanning live container images for known vulnerabilities. Now, moving on from security to observability, we also announced the general availability of Data Streams Monitoring. These products specifically targets queuing, streaming, and even driven pipelines, such as Kafka or RabbitMQ. These systems often span many different teams and technologies and are notoriously difficult to manage and troubleshoot.
And for this, even standard APM and log management solutions are not specialized enough. Data Streams Monitoring automatically identifies the topology, interdependencies, and key metrics of complex streaming data pipelines, allowing customers to maintain availability, correctness, and latency for what is now a critical part of their business. Lastly, we were thrilled to unveil our newest data center in Japan last month. We see a large opportunity to serve our customers in the Asia Pacific region, which has seen significant growth over time and now represents high single digits as a percent of the revenue.
I also want to take a moment and share our excitement for the latest wave of AI innovation. And I'm going to use AI indiscriminately here to refer to the recent advances in deep learning, large language models, and generative AI. First, from a market perspective, over the long term, we believe AI will significantly expand our opportunity in observability and beyond. We think massive improvements in developer productivity will allow individuals to write more applications and to do so faster than ever before.
And as with past productivity increases, we think this will further shift value from writing code to observing, managing, fixing, and securing live applications. In the short to medium term, we believe the rise of AI will increase the demand for compute and storage to train and run models, but it will also increase the value of proprietary data and further drive digital transformation and cloud migration as these are all prerequisites for adoption. We also do expect quite a bit of noise in the market as the technology stack is progressing and changing very quickly. Now, from a product perspective, we believe that we at Datadog are uniquely positioned to deliver value to our customers in this new world.
First, we built Datadog from day one as a pure SaaS business precisely to be able to put our data to work at full scale and to train models to solve our customers' problems. Second, our larger patch of contact with our customers gives us the insertion points to make AI relevant. This is where we see the value of having a variable customer base and being designed to be used every day by every single engineer. And third, we serve today some of the largest builders and consumers of AI services and are quickly adapting to their needs in a rapidly changing field.
So, in other words, we are really excited about the potential of AI for us and for the observability in the security market, and I'm sure we'll discuss this topic further in the future. OK. Let's move on to sales and marketing. As I said earlier, our go-to-market teams had another productive quarter.
So, let's discuss some of our wins. First, we signed an expansion into eight-figure ARR with a leading AI company. This customer saw an order of magnitude increase in user demand and a surge in new customers following enormous innovation and interest in generative AI. As a result, this customer now uses six Datadog products and relies on our platform to track and correlate key business metrics, ranging from uptime data to newer subscriptions and revenue.
Next, we signed a high seven-figure expansion to another eight-figure ARR deal with one of the world's largest fintech companies. This customer has expanded meaningfully over time and, today, see Datadog platform used by thousands of users across dozens of business units. With this expansion, this customer now uses 14 Datadog products and is consolidating multiple open-source homegrown and commercial tools across observability and security into the Datadog platform. Next, we signed a seven-figure expansion with a Fortune 500 healthcare company.
Before using Datadog, major incidents would mobilize up to 150 employees for an average of three to four hours. With Datadog, they only need 20 employees for about 30 minutes with an opportunity to further reduce these numbers. I will note that we're also replacing a commercial observability competitor whose new pricing model was causing an increase in cost with lower value. This customer now expects to save more than $0.5 million every year by moving to Datadog across several business units. Next, we signed a six-figure land with a multinational clothing company.
This company was previously heavily siloed, with each team using different monitoring tools. And as is often the case, this caused issues impacting revenue and customer experience. This customer is starting with five Datadog products and expect to consolidate and replace a total of 13 commercial and open-source tools with Datadog. And last but not least, we signed a seven-figure multiyear land with a leading university in Australia.
A customer has historically relied on open-source solutions. They evaluated a few commercial competitors, and Datadog won as their requirements involve both cloud and on-premise across logs, user experience, and network device monitoring. This customer plans over time to migrate from more than 10 tools to the Datadog platform. And that's it for this quarter's highlights.
I'd like to thank our go-to-market teams again for their continued execution in Q1. Now, switching gears. Let me speak to our longer-term outlook. Overall, we continue to see no change to the multiyear trend toward digital transformation and cloud migration.
We do continue to see customers optimizing their cloud usage, and visibility remains limited as to when this optimization cycle will end, but we firmly believe it will. As before, we remain confident that we will continue to deliver value to more customers in their digital transformation and cloud migration journeys. And it is increasingly clear with each wave of technical innovation that every company in every industry and every geographic region has to take advantage of the cloud, microservices, container, generative AI, and more. By relentlessly broadening the Datadog platform, we will continue to help our customers save on costs, execute with better engineering efficiency, drive competitive differentiation, and deliver value to their own customers.
So, our long-term plans have not changed. We are continuing to invest to capture our long-term opportunities. And as David will discuss in a moment, the strength of our business model allows us to balance that with delivering financial performance. With that, I will turn it over to our CFO.
David?
David Obstler -- Chief Financial Officer
Thanks, Olivier. In Q1, we continued to execute well and deliver value to our customers. Revenue was $482 million, up 33% year over year and up 3% quarter to quarter. To dive into some of the drivers of the Q1 performance, first, we had an unusual outage in March, and we estimate that the impact to our revenues from that outage to be about $5 million.
As we mentioned last quarter, we saw subdued usage growth in the month of December, which created a lower growth trajectory to start the first quarter and drove seasonally weaker sequential growth in the first quarter. During Q1, we experienced a linearity pattern that is typical for us, which included usage growth in March that was higher than that in January and February. Overall, we saw existing customer usage growth in Q1 improve from the levels we saw in Q4, though it was slightly lower than the levels we experienced in Q2 and Q3 last year. Next, we continued to see larger spending customers go smaller -- go slower than smaller-spending customers.
From an industry perspective, we continue to see the slowest growth in the consumer discretionary vertical, particularly in e-commerce and food delivery. Geographically, we saw faster year-over-year growth in international than in North America. Our trailing 12-month dollar based net retention rate, or NRR, continued to be over 130% as customers increased their usage and adopted more products. Based on our current growth trajectory, however, we expect our trailing 12-month NRR to be below 130% in Q2.
While our net retention rate is expected to go below 130%, we continue to execute strongly on our platform innovation and our land and expand business model, as evidenced by our latest product announcements, our expanding cross sell of products, and the examples of the strong Q1 renewals that Olivier discussed. Our dollar-based gross retention rate remained stable in the mid to high 90s, an indication of the mission critical nature of the Datadog platform for our customers. Now, moving on to our financial results. Billings were $511 million, up 15% year over year.
We had a large upfront bill for a client in Q1 2022 that did not recur at the same level or timing in Q1 2023. Pro forma for this client, billings growth was in the low 30s percent year over year. Remaining performance obligations, or RPO, was $1.14 billion, up 33% year over year. Current RPO growth was in the high 20s percent year over year.
We continue to believe revenue is a better indication of our business trends than billings and RPO as those can fluctuate relative to revenue based on the timing of invoicing and the duration of customer contracts. Now, let's review some 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 $388 million, representing a gross margin of 80.5%. This compares to a gross margin of 80.6% last quarter and 80.4% in the year-ago quarter. We continue to experience efficiencies in cloud costs, reflected in our cost of goods sold this quarter. In the mid to long term, we continue to expect gross margin to be in the high 70s percent range.
Our Q1 non-GAAP opex grew 45% year over year. This is a decline from 54% year-over-year growth in the previous quarter. We continue to grow our headcount in R&D and go-to-market but at a more moderate pace than last year. Q1 operating income was $86 million or an 18% operating margin, flat sequentially to Q4 2022 margin also of 18%.
In the year-ago quarter, operating margins was 23%, and it benefited from lack of in-person office, travel, and event costs due to our COVID policies during the pandemic. Turning to the balance sheet and cash flow statements. We ended the quarter with $2 billion in cash, cash equivalents, restricted cash, and marketable securities. Cash flow from operations was $134 million in the quarter.
After taking into consideration capital expenditures and capitalized software, free cash flow was $116 million for a free cash flow margin of 24%. Now, for our outlook for the second quarter and the rest of fiscal year 2023. Informing our guidance, we continue to use conservative assumptions as to the organic growth of our customers compared to historical periods. And as usual, we are basing our near-term guidance on recent activity we see with our customers.
While existing customers are still expanding with us, we continue to assume in our guidance that cloud optimization is affecting their expansion rate for the rest of 2023. For the second quarter, as a result, we expect revenue to be in the range of $498 million to $502 million, which represents 23% to 24% year-over-year growth. Non-GAAP operating income is expected to be in the range of $82 million to $86 million, and non-GAAP net income per share is expected to be in the $0.27 to $0.29 per share range based on approximately 349 million weighted average diluted shares outstanding. For the fiscal year 2023, we expect revenue to be in the range of $2.08 billion to $2.10 billion, which represents 24% to 25% year-over-year growth.
Non-GAAP operating income is expected to be in the range of $340 million to $360 million. And non-GAAP net income per share is expected to be in the range of $1.13 to $1.20 per share based on approximately 351 million weighted average diluted shares outstanding. Some additional notes in our guidance. First, we have continued to balance near-term financial strength with investment in our large long-term opportunities, and we are executing well on our plans to invest efficiently.
We expect to continue moderation of headcount growth and the lapping of the COVID-affected historical expenses to result in continued slowing of opex growth during the remainder of 2023. We now plan to grow our non-GAAP operating expenses, excluding COGS, in fiscal year 2023 by approximately 30% year over year with an exit rate in Q4 in the low 20s percent year over year. We continue to expect net interest and other income for fiscal year 2023 to be approximately $75 million. And we expect our tax expense in fiscal year 2023 to be in the range of $14 million to $16 million.
Finally, we continue to expect capital expenditures and capitalized software together to be in the range of 4% to 5% of revenues in fiscal year 2023. Now, finally, to reiterate Olivier's comments, we remain excited about our long-term opportunities as our customers embark and expand on their cloud migration and digital transformation plans. We are continuing to invest to further expand the ways we reach our customers and help them along these journeys. I want to thank our Datadogs worldwide for their efforts in this quarter.
With that, we will open the call for questions. Operator, let's begin the Q&A. Thanks.
Questions & Answers:
Operator
[Operator instructions]. Please stand by while we compile the Q&A roster. Our first question comes from Raimo Lenschow with Barclays. Your line is now open.
Raimo Lenschow -- Barclays -- Analyst
Thank you. Hey, good morning. Could you speak to the optimization, Olivier, a little bit more in detail. Obviously, it's a journey for customers.
And there's like initial steps and then there's follow-on steps. If you think about the customer behavior in terms of what they do in optimization, are you still seeing the same steps that are getting taken? Or are we going to kind of round two, round three, etc. So, I just tried to understand a little bit where we are on that optimization journey, if you have more color on that. And then, I have one follow-up, please.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. The short of it is we don't know exactly yet. I'm going to give an answer that's going to be very similar to the answer I gave last quarter. But we see customers taking another bite at their own workforce, like we saw a number of companies this morning, actually even.
So, I don't think customers themselves know where they're done. So, we're very prudent in terms of assuming an end to it in the near future. So, when we look at our data, when we look at what we hear from the hyperscalers also, we also listen carefully to their commentary on what they foresee in the near future, we don't see anything that gives us confidence that we can call an end to optimization in the next quarter or the quarter after that. So, as far as our guidance goes and our plan for the year, we assume that this is going to continue at a similar level for the rest of the year.
Now, obviously, when we look at our customer base, we see some customers that obviously seem to be done with it and others that haven't done anything, so we try to keep an eye on them and model it, but we're not including any of that in our guidance.
Raimo Lenschow -- Barclays -- Analyst
Yeah. OK. Perfect. And then, David, on the on the cost side, thanks for giving us the opex rate for the year and the exit rate.
If you think about the -- there's always that situation of investing for the future. And at some point, you need to come out versus like surviving, like living in the current environment. How do you think about that investment philosophy of balancing today versus getting ready for tomorrow? Thank you.
David Obstler -- Chief Financial Officer
Yeah. I would say that we've made substantial and consistent investments both in our go-to-market and in R&D over the last few years. And this year, we're balancing -- continuing to do that with two things, with prioritization as well as injecting some optimization or efficiency into the investments we had made. We're seeing the opportunity to get returns from the previous investments and to think through a little more the prioritization of those.
Raimo Lenschow -- Barclays -- Analyst
OK. Thank you.
Operator
Please stand by for our next question. Our next question comes from Sanjit Singh with Morgan Stanley. Your line is open.
Sanjit Singh -- Morgan Stanley -- Analyst
I thank you for taking the questions. I had a question, Olivier, on AI. It seems like we're on the cusp of another sort of compute cycle driven by AI. The last compute cycle, you guys were all over in terms of being ahead of the curve in terms of the shift from monoliths to micro services.
And so, with this new sort of compute cycle that we're about to embark on, what do you see -- how are sort of applications in the sort of the application stack, how is that going to change? And what are the implications for Datadog as a monitoring vendor? What are potentially the puts and takes with -- in terms of how applications are going to be built going forward?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. First, I'd say it's -- we can all agree that it's a fascinating time to be alive to see all these rapid innovation in the world of AI. The first thing I'd say is that it's still fairly early in terms of what the market is going to look like in the AI world. Right now, there's one particular thing that's been -- that used to be very hard, which was in building conventional models and chatbots and things like that, which almost overnight became almost a commodity, basically.
Anybody can incorporate in any application. It's an API call away. And there's even a number of different options, commercial open source you can use today. So, that just happened.
That plan has massive traction. You see it everywhere. But it also is opening the gate to many, many more -- I would say more customized, deeper applications on AI that may be built by a few vendors or may be built by a large number of companies instead. It's not quite clear yet.
We see, on our end, is that it's going to drive more compute. It's going to drive more value in the data that is being gathered by companies. It's going to drive digital transformation. It's going to drive cloud migration because, again, you can't actually adopt AI unless you have the data.
You can't actually adopt it without having a modern architecture and an application you can scale up and down and infrastructure you can quickly provision and deprovision. You need to capture all of your -- to capture your data, you need to be digitally transformed. So, you have data of all your customer interactions and everything that is proper to your business. So, in the mid term, we see that as a very clear accelerant to our business.
Maybe with a little bit of noise that I mentioned on the on the script earlier in terms of what technologies end up being the winning ones and what technologies end up being fizzling after a few years. Because it's so early and there's so much innovation that, out of 200 new things, there's probably only 10 or 20 that will matter to us all now. But it's hard to know which ones is out today. So, short answer is mid term, a lot more of the current workload -- types of workloads we see maybe with different types of technologies.
Longer term, I think we can all glimpse at a future where productivity for everybody, including software engineers, increases dramatically. And the way we see that as a business is -- our job is to help our customers absorb the complexity of the applications they've built, so they can understand them, modify them, run them, secure them. And we think that the more productivity there is, the more people can write in any amount of time. The less they understand the software they produce and the more data, the more valued it sends our way.
So, this is what makes us very confident in the long term.
Sanjit Singh -- Morgan Stanley -- Analyst
I appreciate the thoughts, Olivier. As a follow-up and getting back to sort of the topic of cloud optimization, what did you sort of see in April versus March? And typically, sort of baseline what April typically looks like for the company? And are there any customers that have begun optimization that maybe didn't start in 2022? Are you seeing incremental new customer cohorts get on board the cloud optimization train?
Olivier Pomel -- Co-Founder and Chief Executive Officer
I would say April is broadly consistent with what we've seen in Q4 and Q1. I think there's no major difference to call out there, and it's too early also for us to call the quarter obviously. So, there's nothing we're really shocked to point out about April. On the customer optimization, look, we have a large number of customers that are early in their cloud migration, earlier in the Datadog adoption that are growing very fast.
We haven't seen any optimization from those customers. It's possible we see optimization from some of those, which is why we remain very careful in our guidance. We don't assume basically that the optimization will stop at the customer that already have done it and that the rest of the customer base is going to be fine after that.
Sanjit Singh -- Morgan Stanley -- Analyst
Makes sense. Thanks, Olivier.
Operator
Please stand by for our next question. The next question comes from Mark Murphy with J.P. Morgan. Your line is now open.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you very much. David, looking at the math on this large upfront bill that did not recur, it seems to be about $65 million, if I'm running that correctly. Can you possibly shed a little more light? For instance, will you recapture that or some of that in Q2, and what type of customer dynamic is operating at that level? Then I have a quick follow-up.
David Obstler -- Chief Financial Officer
Yeah. That is a customer of ours, what we said was the billing frequency change and the size. So, that customer's bill will, one, be spread out more over time. That company -- that was a crypto company and continues to be a customer of ours.
But that was an early optimizer. We had always talked about some of the industries that were most affected optimized. And that is -- so, we will get that bill at a smaller size than was billed last year in a more of a chunked up billing way.
Olivier Pomel -- Co-Founder and Chief Executive Officer
This is one of those situations where this customer was in an industry that got pretty much decimated over the past year. And their own business was cut in three or four in terms of the revenue. And when that's the case, that we really work with customers to restructure their contracts with us. We want to be part of the solution for them, not part of the problem.
And that's what we need to hear. We restructure their contract, so we keep them as a happy customer for many more years and do a deal that works for everyone with their business profile.
David Obstler -- Chief Financial Officer
Since we've been public, we've pointed out when we have an unusual bill, so we don't have multiple of these types of situations. And what we've done, if you look back through our commentaries, when we've had one of those, a change of timing or a change of the duration of a bill or a size of a bill, we've tried to pro forma it in order to give everyone a sense of what the rest of the business is doing.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you. Much appreciated on our part. As a follow up, Olivier, congrats on passing $2 billion in ARR, one of the fastest software companies ever to do that. Pretty amazing.
I did want to ask you as well on the optimizations at the moment. Microsoft seems more optimistic that the optimization activity would start to normalize in the next couple or few quarters than Amazon does. And when we tear it apart, Azure has less exposure to tech companies which are doing layoffs. They have more exposure to generative AI, which is booming relative to AWS.
So, I'm wondering if that part lines up with your telemetry and your forecasting that perhaps your Azure monitoring business is going to start to turn the corner sooner and then perhaps AWS would follow after that.
Olivier Pomel -- Co-Founder and Chief Executive Officer
You know, it's too early to tell. And by the way, it's a bit hard to just project our numbers from the -- just as a reminder, hard to predict our numbers from the numbers of the cloud providers because it's not a one to one in terms of what they report and what concerns the infrastructure and the applications directly. Different cloud providers have different things in there. And also, these vendors have, in addition to the volumes that drive consumption on our end, they also have their own pricing dynamics.
And typically, in those situations, the vendors with the largest bills are the ones that get pushed the most. So, in this case, that would be AWS. In terms of what we see in our data, there is nothing to suggest that any particular cloud is recovering from optimization just yet. We also tried to read the hyperscalar comments and -- depending on what you've read before and after, they look more or less positive.
So, I'm not quite sure I would project as much enthusiasm in the Microsoft comments. But what we know is that, at the end of the day, it doesn't really matter for us. We're equally well positioned to capture workloads on Azure as we are on AWS and GCP. The only thought I would say of the Microsoft stack that we don't cover as well is everything that is lift and shift of purely Microsoft technology, including Microsoft technology office [Inaudible] because that can typically be done very well with the built in Microsoft tooling.
But when you think of any market share gain that might happen from now on from Microsoft and the others, if you can imagine that, that would be more cloudy workloads, next gen workloads, workloads that have to gather data and call into AI models. And these are things that we were very well positioned to capture.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Excellent. Thank you very much.
Operator
Please stand by for our next question. The next question comes from Kash Rangan with Goldman Sachs. Your line is now open.
Kash Rangan -- Goldman Sachs -- Analyst
Thank you very much. Appreciate it. I was curious, Olivier, that with generative AI, is it merely the fact of just waiting for these workloads to come on? And since you have such a strong presence in infrastructure monitoring, it's workloads that just run on these big clouds and you will optimize them? Or do you have to do something specific on the product side to tool Datadog to better handle these generative AIs? I have a follow-up question.
Olivier Pomel -- Co-Founder and Chief Executive Officer
So, I think, you know, the -- clearly, there's going to be more productivity. The way this has played out in the past, typically, is you just end up generating more stuff and more mess. So, basically, if one person can produce 10 times more, you end up with 10 times more stuff, and that person will still not understand everything they've produced. So, the way we imagine the future is companies are going to deliver a lot more functionality to their users a lot faster, they're going to solve a lot more problems in software, but there won't be as tight an understanding from the engineering team as to what it is they build and how they built it and what might break and what might be the corner cases that don't work and things like that.
And that's consistent with what we can see people building with a Copilot today and things like that. These are very, very good for solving a small problem, but they don't help you build consistent [Inaudible] or they don't help you build software platforms like that. That stuff is still out of reach. Again, the way we see the future is we'll feel customers do a lot more, and they will still need help to catch up with everything they're doing.
And we'll be the ones to do that for them.
Kash Rangan -- Goldman Sachs -- Analyst
Got it. Thank you so much. And also, Microsoft talked about the anniversary effect of optimization, that the headwinds should be less going forward, whereas AWS called out decelerations in the month of April. But it looks like your business is to study in the month of April.
So, is it fair to say that you're sort of decoupling away from the AWS deceleration and maintaining that steady pace as far as consumption trends are concerned? That's it for me. Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, I mean, look, for the rest of the year, we're not assuming any change in trajectory. So, now in terms of where we are compared to the other cloud providers, one thing you can do is you can look at the sequential growth numbers quarter to quarter, and you'll see that if you look at the three major cloud providers, they've decelerated to about 1% quarter-to-quarter growth for the last quarter. We're still significantly higher than that. And when you look at our ARR, considering the fact that we exited slower in 2022 and we exited higher at the end of Q1, because the quarters are shaped differently around the holidays, we actually maintained an ARR that was going to be high also than the -- ARR growth that was higher than the -- sequentially than the cloud providers.
So, we already decoupled from the growth of the hyperscalar to a certain extent.
Kash Rangan -- Goldman Sachs -- Analyst
Wonderful. Thank you so much.
Operator
Please stand by for the next question. The next question comes from Fatima Boolani with Citi. Your line is now open.
Unknown speaker
Hi. This is Joel on for Fatima. Thanks for taking our questions. So, just to check on another vertical here, given the continued uncertainty in the financial services vertical, just wondering if you could speak to your exposure here.
And perhaps, any related behavior you're seeing with your customers, if at all? And then, I just have a quick follow-up. Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
I don't think we have numbers to share on the exact exposure to financial services. Obviously, it's been a growing vertical for us as the financial services are early adopters of software. I would say it's not necessarily earliest adopters of the cloud but definitely an adopter at scale today of cloud technology. We haven't seen any changes in customer behavior on that side.
And that includes when there were all this trouble -- we saw all this trouble with SVB and other banks failing. We were still seeing great uptake from our products from financial services, new logos, as well as expansion deals. So, nothing to report on our end.
Unknown speaker
OK. Thanks. Appreciate the details there. And then, just -- you mentioned the expansion deal with a large fintech which displaced open-source software in addition to other tools, so just wondering if you could speak to the competitive dynamic versus open source, especially in this cost sensitive environment and why Datadog still wins and perhaps works as a consolidation destination.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. You know, the situation is very similar to what it's always been. We win because we deliver more value. We know it's -- at the end of the day, it works better and cheaper with what we do and what we provide than trying to do it yourself and mobilizing your own team and trying to stitch together different parts of open source.
For some customers, they will still want part of that. They will still want to bill somebody. That's more of a cultural thing. But for the vast majority of customers, it's not a rational thing to do.
And that's why we win in the end. The dynamic there is remarkably unchanged from -- I could have said the exact same thing 10 years ago. Obviously, the open-source projects were different, our footprint was a little bit different, but the dynamics when we sold to customer was very similar.
Unknown speaker
Thank you.
Operator
Please stand by for our next question. The next question comes from Brad Reback with Stifel. Your line is now open.
Brad Reback -- Stifel Financial Corp. -- Analyst
Great. Thanks very much. Olivier, earlier you mentioned sort of the opportunity or your sort of focus on the Azure ecosystem. What types of things on a go-to-market perspective can you do to increase your penetration there as you've sort of historically been much larger inside of AWS? Thanks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
There's a lot of things we're doing, whether it's working directly with other cloud providers, in addition to our very strong relationship with AWS, whether that's building more integration specifically into the ecosystem, technology integrations. And if you look at our announcements, product announcements, you'll see that we've done quite a bit in partnership with Azure and Microsoft, for example. Part of it is also expanding our sales force in territories that tend to be -- to lean more toward Microsoft in terms of their tech stack. So, when you look at the early customers we had, which tended to be a lot of software companies, companies that used to be based on the West Coast in the U.S., that these typically didn't lean hard Microsoft, but when we look at the more recent enterprise teams which started in the past few years, for example, in the U.S.
central areas, like these tend to be way heavier on the Microsoft stack. So, it's a combination of all of the above basically. Like, there's not just one single thing we do. It's a lot of different things at many levels to make sure that we have the right product to show in front of their -- for the right customer and have the right sales force to enable that.
Brad Reback -- Stifel Financial Corp. -- Analyst
That's great. Thanks very much.
Operator
Please stand by for our next question. The next question comes from Matt Hedberg with RBC. Your line is now open.
Matt Hedberg -- RBC Capital Markets -- Analyst
Great. Thanks for taking my questions. Thanks for the APM and log management data point, over $1 billion in ARR. I'm wondering, can you provide a frame of reference for maybe the growth of these two businesses versus core infrastructure and maybe between the two, APM and logging? Are they about equal in size or is one sort of relatively larger than the other?
Olivier Pomel -- Co-Founder and Chief Executive Officer
All [Inaudible] the same. We're not going to give specific numbers there. And the growth rates, of course, generally speaking, the smaller products grow faster than the products that are bigger than them. That's pretty much true about the whole set of products.
The growth of all the other products have come down a little bit, especially the ones that have a large volume component, like, for example, logs where when you think of optimization, there is optimization that happens at the cloud provider level and there's some that can happen at the observability level, too. Overwhelmingly, at the observability level, but log and everything that -- for which customers have a different knob to turn. For everything else, the optimization corresponds to what the cloud providers see.
Matt Hedberg -- RBC Capital Markets -- Analyst
Got it. Thanks. Thanks for that. On the outage that you referenced, the $5 million, I'm curious, what did you guys learn from that to prevent maybe this in the future? And, outside of the $5 million hit that David talked about, are there any other repercussions from a customer perspective?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So, we've made a lifetime of learning in a day. So, that's the positive part of having an incident like that. I want to say I was personally very impressed by the response from our team. We shared some information post mortem, what happened.
I encourage everyone to read it because it's a fascinating document. But because of the very wide nature of this issue, we ended up having three shifts of 500 to 600 engineers working on this outage. And that part worked beautifully. Obviously, we've learned about a number of things beyond the root cause of the outage that is almost anecdotal, like it's one of those small things that can have a big impact.
But I don't worry so much about it happening again. What we've learned is more about the various things we can do better to recover faster for our systems and to provide a better way for our customers to mitigate an issue when that happens. So, these are the most of the learnings and most of the new sources of work that we have internally to follow up on that, make sure we reduce the chance of it happening again. And when it does, we recover faster and better for customers.
Overall, a very humbling experience. And I want to make sure that we do right by our customers in the future there. We don't see any long-term impact. The way we've handled it is by being very transparent with our customers about what was happening and addressing any possible consequences with them after that.
And we think in those situations when you do things right and when you don't repeat these mistakes too often, the effect is actually to strengthen the relationship with the customer. And I hope we succeed in doing that.
Matt Hedberg -- RBC Capital Markets -- Analyst
Thanks for the call, Olivier.
Operator
Please stand by for our next question. The next question comes from Brent Thill with Jefferies. Your line is now open.
Brent Thill -- Jefferies -- Analyst
David, just on the large customer adds. You were at 130 versus an average of 170 to 240 over the last four quarters. Any color there? And can you just talk to, is this just more customers stalling because of the economy? Or is this execution related? How would you characterize the large enterprise traction?
David Obstler -- Chief Financial Officer
A couple of factors. One, first quarter is our seasonally lowest amount of new logo ARR. The first quarter of this year was very similar. I think we said slightly higher than the year before and similar to our other quarters.
That's one factor. Secondly, as we've talked about, most of our customers who are in that larger customer group aren't born there, but expand into that. And when the organic growth rate goes down, you will naturally have a slower evolution or graduation of customers into that larger customer classification. So, both of those factors have caused that slowdown in the accumulation of customers over $100,000.
Brent Thill -- Jefferies -- Analyst
Olivier, just a quick follow-up on the cloud optimization solution. Can you give us a sense of the traction what you're seeing in terms of adoption there?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Adoption for what? Sorry, I missed the beginning of your question.
Brent Thill -- Jefferies -- Analyst
You've been building cloud optimization solutions to help your customers identify where there's potential opportunities. Are you seeing an uptake in that product?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. We're seeing extremely strong demand for that, and this is -- so this is definitely a product that customers -- just customers want. And our 10-year roadmap for it is very clear. So, there's no doubt about it.
Brent Thill -- Jefferies -- Analyst
Thank you.
Operator
Please stand by for our next question. The next question comes from Koji Ikeda with Bank of America Securities. Your line is open.
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Hey, guys. Thanks for taking the question. Just one from me here in the interest of time. I wanted to ask you a question on the cloud security management platform, and specifically the sales motion for it.
So, how is that shaping up this year? And how should we be thinking about the investments and strategy for that segment this year? And as you attack that opportunity, how has the competitive environment been shaping up as you head into deal bake offs? Is it coming in as expected? Thanks, guys.
Olivier Pomel -- Co-Founder and Chief Executive Officer
There's no dramatic change from what we've seen before. Our focus is really on getting the product in as many hands as possible. And as we mentioned in the call, it's working. We have more than 5,000 customers on those products.
And this is really what gives us the -- it closes the loop so that we can keep building those products and bring them all to maturity. The one thing I'll say is, our strategy, our approach for security is ambitious. And we don't have a -- we specifically are not trying to build a point solution. We're building [Inaudible] which means we're moving in many different direction at the same time for this.
And everything we do in terms of go-to-market and driving customer adoption for that is in service of this product development, so we can build up that platform. So, with that in mind, the go-to-market hasn't changed from what we've done before. And we tend to land heavily on crossing over from DevOps teams into security. And that's working well to get a lot more customer adoption.
On the community side, there's no big changes there. We see the same usual suspects as before. Their dynamics are a little bit different because they typically have narrower solution and more defined sale motions around those. But we're very pleased with the customer adoption so far.
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Got it. Thank you very much. Thanks for taking the question.
Operator
Please stand by for our next question. The next question comes from Gregg Moskowitz with Mizuho. Your line is now open.
Gregg Moskowitz -- Mizuho Securities -- Analyst
OK. Thank you for -- for taking the question. Olivier, you laid out a pretty compelling case for why generative AI will have a positive impact on Datadog and presumably the observability market at large both over the near to medium term, as well as long term. But do you see any offsets, any partial offsets from organizations having greater intelligence and automation at their fingertips? Are there certain workloads that may no longer need to be monitored by an observability platform?
Olivier Pomel -- Co-Founder and Chief Executive Officer
In the long-term future, everything is possible. But I don't think -- today, I don't think that's not what we hear or see. Again, the workloads are getting more complex as the intelligence of management is getting better. And we see basically a continuation of that.
In terms of what customers do today, it's hard to project the current adoption of AI into what it might look back into the future because, right now, AI is mostly used as an API call for most companies, but we don't think it's necessarily going to be the case one to five years from now.
Gregg Moskowitz -- Mizuho Securities -- Analyst
OK, got it. Thanks. Just for David on the outage. Are the credits, etc., is that now fully behind you? Or is there any lingering financial impact in the Q2 that you're embedding in the guide? Thanks.
David Obstler -- Chief Financial Officer
We provide for what we know at the time in our calls. So, we believe that we've provided for that through the revenue impact in Q1.
Gregg Moskowitz -- Mizuho Securities -- Analyst
OK. Thanks very much.
Operator
Please stand by for our last question. The last question comes from Mike Cikos with Needham. Your line is open.
Mike Cikos -- Needham and Company -- Analyst
Hey, guys, thanks for getting me on here before the -- before the end of the call. I guess a question for Oli. The first question is really around the ARR discussion. I appreciate the color you guys provided around that APM and log management.
Can you highlight, is Datadog winning new customers on pure APM and logging at this point? Or is infrastructure still the heavy lean as far as where those new logos are being predominantly won? And then, secondarily, can you talk to maybe some of the newer products in the portfolio which are seeing the strongest uptake today, just given we had -- I think it's 17-plus modules in the portfolio more broadly. Just where should we be focusing when thinking about growth going forward from here?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Look, our motion is still to land with infrastructure, perhaps APM and/or logs when we start. I would say it's getting increasingly difficult to separate all of those because [Inaudible] market in general is converging into, I think, all three under one roof. So, whether customers start the conversation about APM or logs, whether they start it from infrastructure, it doesn't matter a ton when we land new customers. I would say, though, that we definitely have best of breed products also in APM and logs.
Those products win on their own. And sometimes when we enter a new customer that already have solutions for the things, we can start by displacing a vendor on the APM side or the log side and expect [Inaudible]. That's definitely something that we do on a regular basis. On the question of the products that are growing the fastest, all the newer products are actually getting pretty good uptake.
So, it's hard to pick one. I mentioned earlier, so cloud cost optimization is actually a very popular product right now. Still very early in its lifetime, but it's a very popular product. And we also see a lot of interest, actually, for some of the new products we announced at DASH last year and some of which are still not generally available.
So, there's a number of things we're doing in terms of automating response to issues, to any workflows and sorting through issues and managing issues with your life cycle that are getting a lot of attention from customers to that too. So, we were excited about what's coming next. Obviously, the expectation for some of those products are changing over time, too. You know that everyone can see what can be done with AI.
You know, we really expect to see a lot more of that. So, I guess we'll share more on that in the near future.
Mike Cikos -- Needham and Company -- Analyst
Terrific. Looking forward to it, and thank you very much for the color.
Operator
I would now like to turn the call over to Olivier for closing remarks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thank you. I want to thank again all -- everyone at Datadog for crossing this really important milestone. Obviously, we're already focused on the next ones. But I want to thank everyone for their hard work shipping product, getting in front of customers.
I also want to thank our teams for responding to that system outage we had and our customers for very kindly working with us through that. And on this, I will speak to you again after Q2.
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
Raimo Lenschow -- Barclays -- Analyst
Sanjit Singh -- Morgan Stanley -- Analyst
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Kash Rangan -- Goldman Sachs -- Analyst
Unknown speaker
Brad Reback -- Stifel Financial Corp. -- Analyst
Matt Hedberg -- RBC Capital Markets -- Analyst
Brent Thill -- Jefferies -- Analyst
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Gregg Moskowitz -- Mizuho Securities -- Analyst
Mike Cikos -- Needham 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.
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Datadog (NASDAQ: DDOG) Q1 2023 Earnings Call May 04, 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 Raimo Lenschow -- Barclays -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Unknown speaker Brad Reback -- Stifel Financial Corp. -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Mike Cikos -- Needham and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. First, we built Datadog from day one as a pure SaaS business precisely to be able to put our data to work at full scale and to train models to solve our customers' problems.
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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 Raimo Lenschow -- Barclays -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Unknown speaker Brad Reback -- Stifel Financial Corp. -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Mike Cikos -- Needham 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) Q1 2023 Earnings Call May 04, 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 second quarter and the fiscal year 2023 and related notes and assumptions, our gross margins and operating margins, our strategy, our product capabilities, and our ability to capitalize on market opportunities.
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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 Raimo Lenschow -- Barclays -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Unknown speaker Brad Reback -- Stifel Financial Corp. -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Mike Cikos -- Needham 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) Q1 2023 Earnings Call May 04, 2023, 8:00 a.m. On the customer optimization, look, we have a large number of customers that are early in their cloud migration, earlier in the Datadog adoption that are growing very fast.
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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 Raimo Lenschow -- Barclays -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Kash Rangan -- Goldman Sachs -- Analyst Unknown speaker Brad Reback -- Stifel Financial Corp. -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Mike Cikos -- Needham 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) Q1 2023 Earnings Call May 04, 2023, 8:00 a.m. And 19% of our customers were using six or more products, up from 12% last year.
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a923ae2a-6327-4c2a-b386-bab4f2c9fe96
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718262.0
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2023-05-04 00:00:00 UTC
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Investors Are Barking Up The Right Tree With Datadog
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DDOG
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https://www.nasdaq.com/articles/investors-are-barking-up-the-right-tree-with-datadog
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A sustained rally in Datadog (NASDAQ: DDOG) is yet to be seen, but the bottom is in for this market. After a year of downtrend driven by analysts' sentiment, the company is reporting better-than-expected numbers and guiding the market higher. This is not surprising given the strength reported by Checkpoint Software earlier in the week and may lead the entire group higher. The least investors should expect is sideways, range-bound action, but a reversal is possible.
The analysts have yet to develop new commentary, but you must assume they are updating their models. Details within the report show strong growth in sizeable corporate clientele and the company's ability to penetrate with new products and services. This should lead to a firming of the price target, if not a reversal in the trend, but that’s conjecture. Until then, the analysts rate the stock a Moderate Buy and see it trading flat to 40% above the current action.
Datadog Has A Robust Quarter
Datadog had a robust Q1 bringing in $482 million in net revenue. This is up 33% compared to last year and beat the Marketbeat.com consensus by 275 basis points on growth in large clients. The company reports a 30% increase in clients contributing at least $100,000 in ARR and margin well above expectations.
The adjusted operating income margin came in at 18%, resulting in a cash flow of $133 million and FCF of more than $116 million. The adjusted EPS came in at $0.28 and up $0.04 better than last year and $0.04 better than expected. This is 1400 bps above consensus and left the balance sheet in a good position despite increased spending.
The guidance is equally impressive, calling for above-consensus growth for the year. The takeaway from the details is that Q2 will likely be as expected regarding the analysts' estimates, but business is expected to accelerate in the 2nd half. For the year, the company expects earnings to range between $1.13 and $1.20 compared to the consensus of $1.06, and this may be cautious.
The company shows momentum, and cloud services are a driving force. The global economy is still digitizing, and those already using the cloud continue to shift to next-generation technology.
Datadog’s balance sheet is in good shape, and the company is set up to continue investing in new technology and advertising. The cash balance is down YOY, but cash and equivalents are more than $2 billion, and assets are up. The company’s debt is also up but not substantially, offset by an improvement in dilution.
The Sellside Supports Datadog: Institutions Mark The Bottom
The analyst rate Datadog a Moderate Buy despite the downward trending price target, and the institutions agree. Their institutional activity has been bullish on balance for the last 12 months due to buying over the last 2 quarters. Their activity netted about $1.5 billion worth of shares which is about 7% of the current market cap and is coincidental with the bottom in share prices.
The stock hit bottom at the end of Q4 when institutional buying began to pick up, and the post-release pop in share prices confirmed that bottom. The stock will likely move higher soon, but the upside may be limited. It could become range bound if the market can’t get above the 150-day moving average and the $170 level.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A sustained rally in Datadog (NASDAQ: DDOG) is yet to be seen, but the bottom is in for this market. After a year of downtrend driven by analysts' sentiment, the company is reporting better-than-expected numbers and guiding the market higher. Details within the report show strong growth in sizeable corporate clientele and the company's ability to penetrate with new products and services.
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A sustained rally in Datadog (NASDAQ: DDOG) is yet to be seen, but the bottom is in for this market. Until then, the analysts rate the stock a Moderate Buy and see it trading flat to 40% above the current action. Datadog Has A Robust Quarter Datadog had a robust Q1 bringing in $482 million in net revenue.
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A sustained rally in Datadog (NASDAQ: DDOG) is yet to be seen, but the bottom is in for this market. After a year of downtrend driven by analysts' sentiment, the company is reporting better-than-expected numbers and guiding the market higher. For the year, the company expects earnings to range between $1.13 and $1.20 compared to the consensus of $1.06, and this may be cautious.
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A sustained rally in Datadog (NASDAQ: DDOG) is yet to be seen, but the bottom is in for this market. The company reports a 30% increase in clients contributing at least $100,000 in ARR and margin well above expectations. The Sellside Supports Datadog: Institutions Mark The Bottom The analyst rate Datadog a Moderate Buy despite the downward trending price target, and the institutions agree.
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d3ca06e3-7ddc-4aef-a2ab-e796321bbc39
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718263.0
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2023-05-04 00:00:00 UTC
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Why Datadog Stock Rallied Hard on Thursday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-rallied-hard-on-thursday
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What happened
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday, surging as much as 16.5%. As of 11:43 a.m. ET, the stock was still up 16.1%.
What sent the cloud monitoring, analytics, and security company higher were results that suggested the sky was not falling.
So what
For the first quarter, Datadog reported revenue of $481.7 million, up 33% year over year, resulting in non-GAAP (generally accepted accounting principles) earnings per share (EPS) of $0.28. Analysts' consensus estimates were calling for $469.8 million and EPS of $0.23, so Datadog exceeded expectations by a wide margin.
Helping fuel the robust results was strong growth in the number of customers spending $100,000 per year in annual recurring revenue (ARR), which grew to 2,910, up 29%.
Investors were also excited about Datadog's recent expansion into data streams monitoring, providing businesses with real-time monitoring of mission-critical applications -- including banking, payments, and streaming video -- detecting problems and preventing critical downtime.
Now what
Management sees a big opportunity from the ongoing evolution of artificial intelligence (AI). Said founder and CEO Olivier Pomel:
We believe AI will significantly expand our opportunity in observability and beyond. We believe the rise of AI will increase the demand for compute and storage to train and run models, but it will also increase the value of proprietary data and further drive digital transformation and cloud migration, as these are all prerequisites for adoption.
Datadog expects its robust growth to continue. Management is guiding for revenue of about $500 million, up 23% year over year at the midpoint of its guidance. The company is also forecasting adjusted net income of about $0.28. For context, analysts' consensus estimates were calling for revenue of $502 million and adjusted EPS of $0.26, so Datadog's forecast is comfortably within the range of expectations.
Investors had been concerned about the slowing adoption of cloud computing in the face of economic headwinds. Each of the major cloud infrastructure providers have reported decelerating growth in recent weeks. Investors worried this would bleed over into Datadog's results, pressuring the stock, but the company's strong performance and better-than-expected growth helped put those fears to rest.
Given its solid execution and continued strong growth, investors should consider taking Datadog for a walk.
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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.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday, surging as much as 16.5%. Helping fuel the robust results was strong growth in the number of customers spending $100,000 per year in annual recurring revenue (ARR), which grew to 2,910, up 29%. For context, analysts' consensus estimates were calling for revenue of $502 million and adjusted EPS of $0.26, so Datadog's forecast is comfortably within the range of expectations.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday, surging as much as 16.5%. So what For the first quarter, Datadog reported revenue of $481.7 million, up 33% year over year, resulting in non-GAAP (generally accepted accounting principles) earnings per share (EPS) of $0.28. Analysts' consensus estimates were calling for $469.8 million and EPS of $0.23, so Datadog exceeded expectations by a wide margin.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday, surging as much as 16.5%. So what For the first quarter, Datadog reported revenue of $481.7 million, up 33% year over year, resulting in non-GAAP (generally accepted accounting principles) earnings per share (EPS) of $0.28. Investors worried this would bleed over into Datadog's results, pressuring the stock, but the company's strong performance and better-than-expected growth helped put those fears to rest.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday, surging as much as 16.5%. ET, the stock was still up 16.1%. For context, analysts' consensus estimates were calling for revenue of $502 million and adjusted EPS of $0.26, so Datadog's forecast is comfortably within the range of expectations.
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9e717ec3-739e-4adb-b023-a7b4b4a711af
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718264.0
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2023-05-04 00:00:00 UTC
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Nasdaq 100 Movers: QCOM, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-qcom-ddog
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In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. Year to date, Datadog registers a 2.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is Qualcomm, trading down 7.2%. Qualcomm is lower by about 4.7% looking at the year to date performance.
Two other components making moves today are Regeneron Pharmaceuticals, trading down 3.9%, and Cognizant Technology Solutions, trading up 7.2% on the day.
VIDEO: Nasdaq 100 Movers: QCOM, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: QCOM, 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 Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. And the worst performing Nasdaq 100 component thus far on the day is Qualcomm, trading down 7.2%.
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VIDEO: Nasdaq 100 Movers: QCOM, 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 Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. Year to date, Datadog registers a 2.7% gain.
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VIDEO: Nasdaq 100 Movers: QCOM, 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 Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. And the worst performing Nasdaq 100 component thus far on the day is Qualcomm, trading down 7.2%.
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VIDEO: Nasdaq 100 Movers: QCOM, 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 Qualcomm, trading down 7.2%. Qualcomm is lower by about 4.7% looking at the year to date performance.
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718265.0
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2023-05-04 00:00:00 UTC
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Technology Sector Update for 05/04/2023: QCOM, CFLT, DDOG, XLK, SOXX
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DDOG
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https://www.nasdaq.com/articles/technology-sector-update-for-05-04-2023%3A-qcom-cflt-ddog-xlk-soxx
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Technology stocks were retreating premarket Thursday. The Technology Select Sector SPDR Fund (XLK) was declining by 0.3% and the iShares Semiconductor ETF (SOXX) was recently down 0.5%.
Qualcomm (QCOM) was slipping past 7% after it reported fiscal Q2 non-GAAP earnings of $2.15 per diluted share, down from $3.21 a year earlier. Analysts polled by Capital IQ expected $2.16.
Confluent (CFLT) was rallying by 8% after it reported a Q1 adjusted loss of $0.09 per diluted share, smaller than the $0.19 loss per share a year earlier. Analysts polled by Capital IQ expected a loss of $0.14.
Datadog (DDOG) was gaining nearly 7% in value after it reported a Q1 non-GAAP net income of $0.28 per diluted share, up from $0.24 a year earlier. Analysts polled by Capital IQ expected $0.24.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) was gaining nearly 7% in value after it reported a Q1 non-GAAP net income of $0.28 per diluted share, up from $0.24 a year earlier. The Technology Select Sector SPDR Fund (XLK) was declining by 0.3% and the iShares Semiconductor ETF (SOXX) was recently down 0.5%. Qualcomm (QCOM) was slipping past 7% after it reported fiscal Q2 non-GAAP earnings of $2.15 per diluted share, down from $3.21 a year earlier.
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Datadog (DDOG) was gaining nearly 7% in value after it reported a Q1 non-GAAP net income of $0.28 per diluted share, up from $0.24 a year earlier. Analysts polled by Capital IQ expected $2.16. Analysts polled by Capital IQ expected a loss of $0.14.
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Datadog (DDOG) was gaining nearly 7% in value after it reported a Q1 non-GAAP net income of $0.28 per diluted share, up from $0.24 a year earlier. The Technology Select Sector SPDR Fund (XLK) was declining by 0.3% and the iShares Semiconductor ETF (SOXX) was recently down 0.5%. Confluent (CFLT) was rallying by 8% after it reported a Q1 adjusted loss of $0.09 per diluted share, smaller than the $0.19 loss per share a year earlier.
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Datadog (DDOG) was gaining nearly 7% in value after it reported a Q1 non-GAAP net income of $0.28 per diluted share, up from $0.24 a year earlier. Technology stocks were retreating premarket Thursday. Confluent (CFLT) was rallying by 8% after it reported a Q1 adjusted loss of $0.09 per diluted share, smaller than the $0.19 loss per share a year earlier.
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18a5d29f-97e3-4025-b317-678b7db94dd8
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718266.0
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2023-05-04 00:00:00 UTC
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Datadog (DDOG) Q1 Earnings and Revenues Surpass Estimates
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q1-earnings-and-revenues-surpass-estimates
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Datadog (DDOG) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.19 per share when it actually produced earnings of $0.26, delivering a surprise of 36.84%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $481.71 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $363.03 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Datadog shares have lost about 10.4% since the beginning of the year versus the S&P 500's gain of 6.5%.
What's Next for Datadog?
While Datadog has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Datadog: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $498.65 million in revenues for the coming quarter and $1.07 on $2.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, New Relic (NEWR), has yet to report results for the quarter ended March 2023. The results are expected to be released on May 23.
This cloud-based software analytics company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +191.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
New Relic's revenues are expected to be $241.02 million, up 17.1% from the year-ago quarter.
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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.
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Datadog (DDOG) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report New Relic, Inc. (NEWR) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report New Relic, Inc. (NEWR) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $481.71 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.87%.
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Datadog (DDOG) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report New Relic, Inc. (NEWR) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $481.71 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.87%.
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Datadog (DDOG) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report New Relic, Inc. (NEWR) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $481.71 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 2.87%.
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e8804301-0962-4e7a-80a9-5e364496445d
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718267.0
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2023-05-02 00:00:00 UTC
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Baird Maintains Datadog, Inc. (DDOG) Outperform Recommendation
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DDOG
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https://www.nasdaq.com/articles/baird-maintains-datadog-inc.-ddog-outperform-recommendation
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nan
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nan
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Fintel reports that on May 2, 2023, Baird maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation.
Analyst Price Forecast Suggests 55.05% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is 101.40. The forecasts range from a low of 70.70 to a high of $133.35. The average price target represents an increase of 55.05% from its latest reported closing price of 65.40.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is 2,262MM, an increase of 35.04%. The projected annual non-GAAP EPS is 1.20.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 14 owner(s) or 1.08% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.28%. Total shares owned by institutions decreased in the last three months by 0.38% to 262,140K shares.
The put/call ratio of DDOG is 0.68, indicating a bullish outlook.
What are Other Shareholders Doing?
ICONIQ Capital holds 13,176K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm increased its portfolio allocation in DDOG by 8.92% over the last quarter.
Price T Rowe Associates holds 9,986K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 9,056K shares, representing an increase of 9.31%. The firm decreased its portfolio allocation in DDOG by 10.36% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,986K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 7,809K shares, representing an increase of 2.22%. The firm decreased its portfolio allocation in DDOG by 21.81% over the last quarter.
Voya Investment Management holds 6,253K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 5,308K shares, representing an increase of 15.12%. The firm increased its portfolio allocation in DDOG by 132.19% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,124K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,023K shares, representing an increase of 1.64%. The firm decreased its portfolio allocation in DDOG by 22.69% 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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on May 2, 2023, Baird maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.28%. The put/call ratio of DDOG is 0.68, indicating a bullish outlook.
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Fintel reports that on May 2, 2023, Baird maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.28%. The put/call ratio of DDOG is 0.68, indicating a bullish outlook.
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Fintel reports that on May 2, 2023, Baird maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.28%. The put/call ratio of DDOG is 0.68, indicating a bullish outlook.
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Fintel reports that on May 2, 2023, Baird maintained coverage of Datadog, Inc. (NASDAQ:DDOG) with a Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.53%, a decrease of 4.28%. The put/call ratio of DDOG is 0.68, indicating a bullish outlook.
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09d66af2-22f7-439f-84ad-d0a5fa276ccc
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718268.0
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2023-05-02 00:00:00 UTC
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PubMatic, Inc. (PUBM) Expected to Beat Earnings Estimates: Should You Buy?
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DDOG
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https://www.nasdaq.com/articles/pubmatic-inc.-pubm-expected-to-beat-earnings-estimates%3A-should-you-buy
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nan
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nan
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The market expects PubMatic, Inc. (PUBM) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 9, 2023, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -228.6%.
Revenues are expected to be $50.89 million, down 6.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 30.67% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for PubMatic, Inc.
For PubMatic, Inc.The Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +16.67%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that PubMatic, Inc. Will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that PubMatic, Inc. Would post earnings of $0.26 per share when it actually produced earnings of $0.33, delivering a surprise of +26.92%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PubMatic, Inc. Appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Internet - Software industry, Datadog (DDOG), is soon expected to post earnings of $0.23 per share for the quarter ended March 2023. This estimate indicates a year-over-year change of -4.2%. Revenues for the quarter are expected to be $468.29 million, up 29% from the year-ago quarter.
The consensus EPS estimate for Datadog has been revised 0.8% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of 2.86%.
When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Datadog will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.
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PubMatic, Inc. (PUBM) : 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.
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Expected Results of an Industry Player Another stock from the Zacks Internet - Software industry, Datadog (DDOG), is soon expected to post earnings of $0.23 per share for the quarter ended March 2023. Click to get this free report PubMatic, Inc. (PUBM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
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Click to get this free report PubMatic, Inc. (PUBM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Expected Results of an Industry Player Another stock from the Zacks Internet - Software industry, Datadog (DDOG), is soon expected to post earnings of $0.23 per share for the quarter ended March 2023. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Expected Results of an Industry Player Another stock from the Zacks Internet - Software industry, Datadog (DDOG), is soon expected to post earnings of $0.23 per share for the quarter ended March 2023. Click to get this free report PubMatic, Inc. (PUBM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Expected Results of an Industry Player Another stock from the Zacks Internet - Software industry, Datadog (DDOG), is soon expected to post earnings of $0.23 per share for the quarter ended March 2023. Click to get this free report PubMatic, Inc. (PUBM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The earnings report, which is expected to be released on May 9, 2023, might help the stock move higher if these key numbers are better than expectations.
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0175c035-87d9-4306-993a-127de0afe209
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718269.0
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2023-05-01 00:00:00 UTC
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Datadog (DDOG) to Report Q1 Earnings: What's in the Cards?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-to-report-q1-earnings%3A-whats-in-the-cards
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nan
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nan
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Datadog DDOG is set to release its first-quarter 2023 results on May 4.
For the first quarter of 2023, Datadog anticipates revenues between $466 million and $470 million. The Zacks Consensus Estimate for the same is currently pegged at $468.29 million, suggesting 28.99% growth from the year-ago period.
Non-GAAP earnings are expected in the range of 22-24 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 23 cents per share over the past 30 days, indicating a decline of 4.17% from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 69.95%.
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 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 fourth quarter of 2022, Datadog had about 2,780 customers with an annual run rate of $100K or more, up from 2,010 in the year-ago quarter.
As of the end of the fourth quarter, 81% of customers used two or more products, up from 78% in the year-ago quarter. Additionally, 42% of customers utilized four or more products, up from 33% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% for the 22nd consecutive quarter, driven by the mission-oriented nature of the platform.
Datadog now has more than 600 integrations, which include latest products like AWS, GCP and Azure.
The company launched services like Observability Pipelines for customers to collect and change data from any source to any destination and Audit trail for compliance and governance goals. These platforms are expected to have boosted clientele 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 +2.86% and a Zacks Rank #4 (Sell) 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.
Carvana CVNA has an Earnings ESP of +19.16% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVNA is scheduled to release its first-quarter 2023 results on May 4. The Zacks Consensus Estimate is pegged at a loss of $1.91 per share, suggesting an increase of 33.91% from the prior-year quarter’s reported figure.
Jack In The Box JACK has an Earnings ESP of +4.09% and a Zacks Rank #2 at present.
JACK is set to report second-quarter fiscal 2023 results on May 17. The Zacks Consensus Estimate for JACK’s earnings is pegged at $1.16 per share, flat year over year.
Shift Technologies SFT has an Earnings ESP of +33.75% and a Zacks Rank #2 at present.
SFT is scheduled to release its first-quarter fiscal 2023 results on May 11. The Zacks Consensus Estimate is pegged at a loss of $3.22 per share, suggesting an increase of 54% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report
Carvana Co. (CVNA) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Shift Technologies, Inc. (SFT) : 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.
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Datadog DDOG is set to release its first-quarter 2023 results on May 4. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Shift Technologies, Inc. (SFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for earnings has remained unchanged at 23 cents per share over the past 30 days, indicating a decline of 4.17% from the year-ago period.
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Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Shift Technologies, Inc. (SFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its first-quarter 2023 results on May 4. The Zacks Consensus Estimate is pegged at a loss of $1.91 per share, suggesting an increase of 33.91% from the prior-year quarter’s reported figure.
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Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Shift Technologies, Inc. (SFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its first-quarter 2023 results on May 4. 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 increased adoption of its cloud-based monitoring and analytics platform, owing to the accelerated digital transformation and cloud migration across organizations.
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Datadog DDOG is set to release its first-quarter 2023 results on May 4. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Shift Technologies, Inc. (SFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for the same is currently pegged at $468.29 million, suggesting 28.99% growth from the year-ago period.
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8e841f62-c3be-45a3-ae6c-67aeedecd77c
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718270.0
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2023-05-01 00:00:00 UTC
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Nasdaq 100 Movers: LCID, MCHP
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-lcid-mchp
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nan
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nan
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In early trading on Monday, shares of Microchip Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. Year to date, Microchip Technology registers a 6.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Lucid Group, trading down 3.5%. Lucid Group is showing a gain of 12.2% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 2.3%, and NVIDIA, trading up 1.6% on the day.
VIDEO: Nasdaq 100 Movers: LCID, MCHP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Lucid Group, trading down 3.5%. Lucid Group is showing a gain of 12.2% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: LCID, MCHP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Microchip Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. Year to date, Microchip Technology registers a 6.3% gain. And the worst performing Nasdaq 100 component thus far on the day is Lucid Group, trading down 3.5%.
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In early trading on Monday, shares of Microchip Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. And the worst performing Nasdaq 100 component thus far on the day is Lucid Group, trading down 3.5%. VIDEO: Nasdaq 100 Movers: LCID, MCHP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Microchip Technology topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. And the worst performing Nasdaq 100 component thus far on the day is Lucid Group, trading down 3.5%. VIDEO: Nasdaq 100 Movers: LCID, MCHP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7f2ca149-939b-4f7f-9f4a-c61247e66efc
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718271.0
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2023-05-01 00:00:00 UTC
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Checkpoint Software Leads Cyber-Security Stocks
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DDOG
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https://www.nasdaq.com/articles/checkpoint-software-leads-cyber-security-stocks
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nan
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nan
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Checkpoint Software (NASDAQ: CHKP) is leading cybersecurity stocks following its Q1 earnings report, and the move is not bullish. The results were not bad, but not enough to get the market moving higher after a quarter of anticipating strength. Results from Checkpoint and names from Palo Alto Networks (NASDAQ: PANW) to Datadog, Inc. (NASDAQ: DDOG) suggested that the strength in cybersecurity spending would continue in 2023, but that appears untrue. IT spending is still producing growth, but Checkpoint’s results are mixed, and the outlook is dimming. The takeaway for investors is that this group of stocks may be heading lower, where they will present better values.
“We are pleased to report good financial results with 15 percent growth in non-GAAP EPS and 13 percent growth in security subscription revenues. This double-digit growth was driven by our CloudGuard and Harmony E-mail product families. The economic slowdown has resulted in extended product sales cycles, while recurring revenues were healthy and reached over 80 percent of total revenues for the first time.” said Gil Shwed, Founder & CEO of Check Point Software Technologies.
Checkpoint Move Lower On Tepid Results
Checkpoint Software did not have a bad quarter bringing in $566 million in net revenue for a growth of 4.2%. The issue is that analysts were expecting a little bit more regarding revenue, the internals are mixed, and bottom-line strength may be fleeting. On a segment basis, Products & License revenue fell nearly 7% compared to the 13% growth in Security Subscription Services.
Maintenance and Software Updates, the company’s 3rd operating segment, grew only 2.15%. Recurring revenue topped 80% of the net for the 1st time, which is good news. High levels of recurring revenue suggest stability for the underlying business but do not point to accelerating growth. Within the Security Subscription Services segment, Cloudguard and Harmony Email lead on strength in the Infinity Platform. It grew by 140%.
The margin news is also mixed. The gross margin expanded compared to last year but was offset by increased R&D and SG&A expenses, resulting in a 200 basis point decline in the GAAP and adjusted margin. However, the GAAP and adjusted earnings both grew by mid-teens percentage points due to higher financial income this year compared to last year, lower taxes and share repurchases.
Checkpoint Software Returns Capital To Shareholders
Checkpoint Software has a robust balance sheet with a high level of cash and no long-term debt. The company’s cash flow was down compared to last year, but that is due to increased R&D spending, which should help drive revenue in future quarters. The salient point is that the company bought back 2.6 million shares in the quarter, worth more than 2% of the outstanding shares. That’s significant support for the market and is not likely to disappear in 2023.
Shares of CHKP are down more than 3.5% in early trading and appear to be headed for support levels in the range of $110 to $120. Buyers may meet this move, but investors are urged to wait for support to confirm itself. A show of support between $110 to $120 will likely result in sideways, range-bound trading, but a move below would open the door to a much more significant decline. Checkpoint trades at a reasonable valuation, so a deep decline is not expected but should not be ruled out. A move below $110 could reach the $100 level or lower.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Results from Checkpoint and names from Palo Alto Networks (NASDAQ: PANW) to Datadog, Inc. (NASDAQ: DDOG) suggested that the strength in cybersecurity spending would continue in 2023, but that appears untrue. Checkpoint Software (NASDAQ: CHKP) is leading cybersecurity stocks following its Q1 earnings report, and the move is not bullish. The company’s cash flow was down compared to last year, but that is due to increased R&D spending, which should help drive revenue in future quarters.
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Results from Checkpoint and names from Palo Alto Networks (NASDAQ: PANW) to Datadog, Inc. (NASDAQ: DDOG) suggested that the strength in cybersecurity spending would continue in 2023, but that appears untrue. Checkpoint Software (NASDAQ: CHKP) is leading cybersecurity stocks following its Q1 earnings report, and the move is not bullish. Within the Security Subscription Services segment, Cloudguard and Harmony Email lead on strength in the Infinity Platform.
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Results from Checkpoint and names from Palo Alto Networks (NASDAQ: PANW) to Datadog, Inc. (NASDAQ: DDOG) suggested that the strength in cybersecurity spending would continue in 2023, but that appears untrue. “We are pleased to report good financial results with 15 percent growth in non-GAAP EPS and 13 percent growth in security subscription revenues. The economic slowdown has resulted in extended product sales cycles, while recurring revenues were healthy and reached over 80 percent of total revenues for the first time.” said Gil Shwed, Founder & CEO of Check Point Software Technologies.
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Results from Checkpoint and names from Palo Alto Networks (NASDAQ: PANW) to Datadog, Inc. (NASDAQ: DDOG) suggested that the strength in cybersecurity spending would continue in 2023, but that appears untrue. “We are pleased to report good financial results with 15 percent growth in non-GAAP EPS and 13 percent growth in security subscription revenues. Checkpoint Move Lower On Tepid Results Checkpoint Software did not have a bad quarter bringing in $566 million in net revenue for a growth of 4.2%.
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5ae5136b-cdd3-44dd-a73d-4df28b3e43be
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718272.0
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2023-04-29 00:00:00 UTC
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Nasdaq Bear Market: 5 Tremendous Growth Stocks You'll Regret Not Buying on the Dip
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DDOG
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-5-tremendous-growth-stocks-youll-regret-not-buying-on-the-dip-0
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Not every year on Wall Street is going to be a walk in the park. In 2022, all three major U.S. stock indexes fell into a bear market, with the growth stock-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) getting hit hardest. The index most responsible for taking the broader market to new highs in 2021 plunged 33% last year.
Although the volatility and uncertainty that accompanies bear markets can test investors' resolve, optimism has a way of rewarding patient investors. Despite more than three dozen double-digit percentage corrections in the benchmark S&P 500 since the beginning of 1950, every single previous downturn was eventually fully recouped by a bull market. The story should eventually be the same with the sizable drop in the Nasdaq Composite.
Image source: Getty Images.
This is a particularly intriguing time to scoop up discounted shares of the growth stocks that have been punished by the bear market downturn. What follows are five tremendous growth stocks you'll regret not buying on the Nasdaq bear market dip.
Teladoc Health
The first awe-inspiring growth stock that's ripe for the picking with the Nasdaq having tumbled from its all-time high is telemedicine kingpin Teladoc Health (NYSE: TDOC). Despite grossly overpaying for applied health signals company Livongo Health, Teladoc's operating performance should improve notably in the years to come as it reshapes personalized care in the U.S. and abroad.
Investors certainly don't have to look hard to find what weighed down shares of Teladoc in 2022. Following the company's $18.5 billion acquisition of Livongo in 2020, Teladoc took three big write-downs totaling $13.4 billion. While this is a painful admission that Teladoc paid far too much for Livongo, it's also good news that the company recognizes this and is getting it all out of the way now. With future earnings reports expected to look a lot cleaner, it'll be much easier for investors to focus on what matters -- i.e., the company's operations.
Some skeptics have referred to Teladoc as nothing more than a fad stock, given the benefits it received from the COVID-19 pandemic. While there's no denying that the pandemic helped fuel virtual visits, the company was growing sales by an annual average of 74% in the six years leading up to 2020.
Teladoc is completely changing the face of personalized care with its services. Virtual visits are making care more convenient for patients and allowing physicians to more closely monitor chronically ill patients. Further, patient outcomes are expected to improve, which all but guarantees that telemedicine will be a preferred treatment pathway promoted by health insurers.
Given Teladoc's and Livongo's abundant cross-selling opportunities, look for this dynamic duo to meaningfully improve sales and narrow operating losses in 2023.
Fiverr International
A second phenomenal growth stock that you'll regret not scooping up during the Nasdaq bear market decline is gig economy stock Fiverr International (NYSE: FVRR). Although the growing likelihood of a U.S. recession could weigh on the labor market, Fiverr's online-services marketplace has three key catalysts working in its favor.
First, the labor market has completely shifted in the wake of the pandemic. Though some people have returned to the office, more folks than ever are working remotely. This bodes well for Fiverr's online freelancer marketplace, which is designed to connect remote workers with buyers.
Secondly, Fiverr's platform offers one specific trait that seems to be sitting well with its buyers. Whereas it's customary for freelancers to list their services/tasks at an hourly rate on competing platforms, Fiverr has its freelancers price their tasks as a completed project. Buyers on Fiverr are getting superior price transparency, which has translated to an increased number of buyers and an ever-growing spend per buyer.
The third, and arguably most important, factor that differentiates Fiverr International is its take-rate. This is the percentage of each deal negotiated on its platform that it gets to keep. While most of its peers have a take-rate in the mid-teens, Fiverr's take-rate hit 30.2% during the fourth quarter -- and it's just continued to climb. Fiverr's ability to grow its take-rate without losing freelancers or buyers is a testament to the strength of its operating model.
Image source: Getty Images.
Datadog
The third tremendous growth stock that you'll regret not adding during the Nasdaq bear market plunge is cloud-driven application monitoring company Datadog (NASDAQ: DDOG). In spite of its lofty valuation, Datadog appears to be firing on all cylinders and has a clear runway for sustained double-digit growth.
Similar to Fiverr, Datadog has benefited nicely from the permanent shift in the labor market. More people working remotely means there's more demand than ever for cloud-based application monitoring and cloud security. Between 2022 and 2026, Datadog's total addressable market for observability is expected to climb from $41 billion to $62 billion. Not surprisingly, the company's compound annual sales growth rate is 66% since 2017, based on a midpoint guide of $2.08 billion in sales this year.
On a company-specific basis, two factors have really made Datadog tick: its ability to land big customers, and add-on sales from existing clients.
In terms of the former, Datadog closed out 2022 with 317 customers who were generating at least $1 million in annual recurring revenue (ARR). While it's great that the company's total customer account has more than doubled since the end of 2019, it's far more impressive that the number of customers with $1 million in ARR has grown sixfold in the same time frame.
Likewise, Datadog's platform of solutions has resulted in high gross retention rates and a significant uptick in add-on sales. When 2020 came to a close, 22% of its customers were using at least four products. Two years later, this figure is 42%. This is a recipe for earnings growth to outpace sales growth for the foreseeable future.
Baidu
A fourth incredible growth stock you'll regret not buying during the Nasdaq bear market swoon is China-based internet search company Baidu (NASDAQ: BIDU). Even though China stocks come with added risks, two prominent headwinds that have been impacting Baidu for years have now been eliminated.
Easily the biggest challenge for Baidu has been China's zero-COVID mitigation strategy. Chinese regulators' attempts to slow the spread of COVID led to stringent, unpredictable lockdowns that hurt supply chains and slowed economic growth. But following domestic protests, regulators abandoned the zero-COVID strategy in December. While it could be a bumpy recovery as residents build up immunity to the SARS-CoV-2 virus that causes COVID-19, a reopened China is fantastic news for the country's leading search engine.
Likewise, U.S. regulators had threatened to delist dozens of Chinese stocks if years' worth of financial audits weren't made available. In December, China granted U.S. regulators access to three years' worth of audits for Chinese firms, thereby easing the likelihood of delisting.
Aside from these headwinds lifting, Baidu holds nearly a 50% share of China's internet search market. Controlling such a dominant share of the search space makes Baidu the logical go-to for advertisers wanting to target consumers in China. It should also provide Baidu with ample ad pricing power.
At a forward-year price-to-earnings ratio of 11, Baidu is ripe for the picking by growth and value investors.
Upstart Holdings
The fifth tremendous growth stock you'll regret not buying during the Nasdaq bear market dip is fintech stock Upstart Holdings (NASDAQ: UPST). While an environment of rapidly rising interest rates isn't ideal for Upstart, this company has demonstrated industry-changing innovations.
What makes Upstart such an intriguing company for patient investors is its reliance on artificial intelligence (AI). Instead of leaning on the costly, time-consuming old method of vetting loan applications, Upstart is utilizing AI and machine-learning software to vet loan applications. During the challenging fourth quarter, 82% of the loans processed on Upstart's platform were instantly approved and fully automated. That saves the company's 92 bank and credit union partners time and money.
But it's not just about saving a buck while processing a loan application. Based on data from Upstart, its AI and machine-learning tools have led to approvals with lower average credit scores than the traditional vetting process. Despite these lower average credit scores, the delinquency rates between Upstart approvals and the traditional process have been similar. In short, Upstart's platform can bring banks and credit unions new customers without adversely impacting the credit quality of their loan portfolios.
Although rising interest rates and the threat of U.S. economic weakness have weighed on Upstart in the short run, the U.S. economy spends a disproportionate amount of time expanding relative to contracting. This bodes well for Upstart, which has penetrated just a fraction of the $5 trillion annual loan origination market.
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Sean Williams has positions in Baidu and Teladoc Health. The Motley Fool has positions in and recommends Baidu, Datadog, Fiverr International, Teladoc Health, and Upstart. 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.
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Datadog The third tremendous growth stock that you'll regret not adding during the Nasdaq bear market plunge is cloud-driven application monitoring company Datadog (NASDAQ: DDOG). While it could be a bumpy recovery as residents build up immunity to the SARS-CoV-2 virus that causes COVID-19, a reopened China is fantastic news for the country's leading search engine. Based on data from Upstart, its AI and machine-learning tools have led to approvals with lower average credit scores than the traditional vetting process.
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Datadog The third tremendous growth stock that you'll regret not adding during the Nasdaq bear market plunge is cloud-driven application monitoring company Datadog (NASDAQ: DDOG). Baidu A fourth incredible growth stock you'll regret not buying during the Nasdaq bear market swoon is China-based internet search company Baidu (NASDAQ: BIDU). Upstart Holdings The fifth tremendous growth stock you'll regret not buying during the Nasdaq bear market dip is fintech stock Upstart Holdings (NASDAQ: UPST).
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Datadog The third tremendous growth stock that you'll regret not adding during the Nasdaq bear market plunge is cloud-driven application monitoring company Datadog (NASDAQ: DDOG). Baidu A fourth incredible growth stock you'll regret not buying during the Nasdaq bear market swoon is China-based internet search company Baidu (NASDAQ: BIDU). Upstart Holdings The fifth tremendous growth stock you'll regret not buying during the Nasdaq bear market dip is fintech stock Upstart Holdings (NASDAQ: UPST).
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Datadog The third tremendous growth stock that you'll regret not adding during the Nasdaq bear market plunge is cloud-driven application monitoring company Datadog (NASDAQ: DDOG). Despite grossly overpaying for applied health signals company Livongo Health, Teladoc's operating performance should improve notably in the years to come as it reshapes personalized care in the U.S. and abroad. Aside from these headwinds lifting, Baidu holds nearly a 50% share of China's internet search market.
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92087d1d-78ad-474c-a2bd-3f25812ade59
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718273.0
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2023-04-27 00:00:00 UTC
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Cloudflare (NET) Tops Q1 Earnings Estimates
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DDOG
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https://www.nasdaq.com/articles/cloudflare-net-tops-q1-earnings-estimates
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nan
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nan
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Cloudflare (NET) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this web security and content delivery company would post earnings of $0.04 per share when it actually produced earnings of $0.06, delivering a surprise of 50%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cloudflare, which belongs to the Zacks Internet - Software industry, posted revenues of $290.18 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 0.27%. This compares to year-ago revenues of $212.17 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cloudflare shares have added about 31.7% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Cloudflare?
While Cloudflare has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cloudflare: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $320.38 million in revenues for the coming quarter and $0.16 on $1.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended March 2023. The results are expected to be released on May 4.
This data analytics and cloud monitoring company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -4.2%. The consensus EPS estimate for the quarter has been revised 5% higher over the last 30 days to the current level.
Datadog's revenues are expected to be $468.29 million, up 29% from the year-ago quarter.
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
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.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended March 2023. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock.
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Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended March 2023. Cloudflare, which belongs to the Zacks Internet - Software industry, posted revenues of $290.18 million for the quarter ended March 2023, missing the Zacks Consensus Estimate by 0.27%.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended March 2023. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Cloudflare (NET) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended March 2023. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Cloudflare (NET) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share.
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718274.0
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2023-04-27 00:00:00 UTC
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Datadog (DDOG) Gains But Lags Market: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-but-lags-market%3A-what-you-should-know-5
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Datadog (DDOG) closed at $70.21 in the latest trading session, marking a +1.36% move from the prior day. This change lagged the S&P 500's 1.96% gain on the day. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq lost 3.03%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 1.72% in the past month. In that same time, the Computer and Technology sector lost 0.91%, while the S&P 500 gained 2.19%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release, which is expected to be May 4, 2023. In that report, analysts expect Datadog to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Our most recent consensus estimate is calling for quarterly revenue of $468.29 million, up 28.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.05 per share and revenue of $2.08 billion, which would represent changes of +7.14% and +24.34%, respectively, from the prior year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 2.22% higher. Datadog is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 65.83 right now. Its industry sports an average Forward P/E of 39.49, so we one might conclude that Datadog is trading at a premium comparatively.
Investors should also note that DDOG has a PEG ratio of 1.66 right now. 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 was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow DDOG in the coming trading sessions, be sure to utilize 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.
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Datadog (DDOG) closed at $70.21 in the latest trading session, marking a +1.36% move from the prior day. Investors should also note that DDOG has a PEG ratio of 1.66 right now. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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Datadog (DDOG) closed at $70.21 in the latest trading session, marking a +1.36% move from the prior day. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors should also note that DDOG has a PEG ratio of 1.66 right now.
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Datadog (DDOG) closed at $70.21 in the latest trading session, marking a +1.36% move from the prior day. Investors should also note that DDOG has a PEG ratio of 1.66 right now. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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Datadog (DDOG) closed at $70.21 in the latest trading session, marking a +1.36% move from the prior day. Investors should also note that DDOG has a PEG ratio of 1.66 right now. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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02d1d49c-c161-47fb-92c5-d15a33f61624
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718275.0
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2023-04-26 00:00:00 UTC
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Nasdaq 100 Movers: ENPH, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-enph-ddog
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nan
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nan
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In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.8%. Year to date, Datadog has lost about 2.1% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Enphase Energy, trading down 25.2%. Enphase Energy is lower by about 37.8% looking at the year to date performance.
Two other components making moves today are Activision Blizzard trading down 8.8%, and Microsoft, trading up 7.0% on the day.
VIDEO: Nasdaq 100 Movers: ENPH, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: ENPH, 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 Enphase Energy, trading down 25.2%. Enphase Energy is lower by about 37.8% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: ENPH, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.8%. Year to date, Datadog has lost about 2.1% of its value.
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VIDEO: Nasdaq 100 Movers: ENPH, 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 Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.8%. And the worst performing Nasdaq 100 component thus far on the day is Enphase Energy, trading down 25.2%.
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VIDEO: Nasdaq 100 Movers: ENPH, 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 Enphase Energy, trading down 25.2%. Enphase Energy is lower by about 37.8% looking at the year to date performance.
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9a00be30-ebe0-4d6e-b08f-ee465fb51d51
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718276.0
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2023-04-26 00:00:00 UTC
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US STOCKS-Nasdaq outperforms as investors cheer Microsoft, Dow transports sink
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DDOG
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https://www.nasdaq.com/articles/us-stocks-nasdaq-outperforms-as-investors-cheer-microsoft-dow-transports-sink
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nan
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By Sinéad Carew, Ankika Biswas and Sruthi Shankar
April 26 (Reuters) - The tech-heavy Nasdaq closed slightly higher on Wednesday after strong Microsoft Corp MSFT.O results boosted technology shares, but the S&P 500 and the Dow fell on lingering concerns about a weakening U.S. economy and the banking sector.
Economically sensitive transport stocks had their weakest day in 11 months, and bank stocks fell as regional bank First Republic hit a record low. Investors have been jittery about the banking sector since the recent failure of two U.S. banks.
Microsoft shares rallied 7.2% following upbeat quarterly earnings and sales, including of robust artificial intelligence products. Its results boosted shares in companies such as cloud computing rival Amazon.com Inc >, up 2.3%; data analytics company Datadog DDOG.O, up 10.5%; and data cloud giant Snowflake Inc SNOW.N, which closed up 8.5%.
Alphabet Inc GOOGL.O reported better-than-expected first-quarter results and a $70-billion share buyback plan but its shares closed down 0.1%.
"The market is looking for direction on where the economy and companies are headed. We've had some good earnings reports come out but investors are realizing it's not sufficient to clarify the path forward," said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis.
Investors are waiting for more earnings reports and a key inflation reading on Friday as well as the Federal Reserve meeting next week, Erickson said.
The Dow Jones Industrial Average .DJI fell 228.96 points, or 0.68%, to 33,301.87; and the S&P 500 .SPX lost 15.64 points, or 0.38%, at 4,055.99. The Nasdaq Composite index .IXIC closed up 0.47%, or 55.19 points, at 11,854.35, according to Nasdaq.com.
The S&P 500 technology index .SPLRCT was the sole gainer among the benchmark's 11 major industry sectors, adding 1.7%. At its peak for the day it rose 2.8%.
But the Dow Transports average .DJT sank 3.6%, leading to its biggest two-day decline since May 2022. The index was hurt by economy jitters after Wednesday's weaker-than-expected capital goods data and Tuesday's weak United Parcel Service UPS.N results.
New orders for key U.S.-manufactured capital goods fell more than expected in March and shipments declined, suggesting that business spending on equipment likely remained a drag on first-quarter economic growth.
Still, earnings forecasts looked way more optimistic after Tuesday evening's bullish reports, with analysts now expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday morning, 79.8% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
However, regional lender First Republic Bank's FRC.N shares sank 29.8%, hitting a fresh record low for the second day in a row. It helped push the S&P 500 bank index .SPXBK down 1.4% on the day.
Investors were worried by a morning report that the U.S. government was unwilling to engineer its rescue, after the lender reported plunging deposits earlier this week.
Also, U.S. bank regulators were weighing the prospect of downgrading their private assessments of First Republic, which could curb its borrowing from the Fed, Bloomberg News reported. The bank's shares have fallen 96.1% so far this year.
However, shares of PacWest Bancorp PACW.O, another regional bank, rallied 7.5% as it beat first-quarter profit estimates and stabilized deposit outflows.
Facebook parent Meta Platforms Inc META.O rose about 10% after the bell on its second-quarter revenue forecast that exceeded analysts' expectations as the digital advertising market was shifting to tried and tested platforms such as Facebook and Instagram.
Activision Blizzard ATVI.Otumbled 11.4% after the UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
Declining issues outnumbered advancers on the NYSE by a 2.07-to-1 ratio. The S&P 500 posted five new 52-week highs and 11 new lows.
On U.S. exchanges 11.06 billion shares changed hands compared with the 10.4 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@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.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc >, up 2.3%; data analytics company Datadog DDOG.O, up 10.5%; and data cloud giant Snowflake Inc SNOW.N, which closed up 8.5%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq closed slightly higher on Wednesday after strong Microsoft Corp MSFT.O results boosted technology shares, but the S&P 500 and the Dow fell on lingering concerns about a weakening U.S. economy and the banking sector. We've had some good earnings reports come out but investors are realizing it's not sufficient to clarify the path forward," said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc >, up 2.3%; data analytics company Datadog DDOG.O, up 10.5%; and data cloud giant Snowflake Inc SNOW.N, which closed up 8.5%. Economically sensitive transport stocks had their weakest day in 11 months, and bank stocks fell as regional bank First Republic hit a record low. Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday morning, 79.8% topped analysts' expectations, as per Refinitiv IBES data.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc >, up 2.3%; data analytics company Datadog DDOG.O, up 10.5%; and data cloud giant Snowflake Inc SNOW.N, which closed up 8.5%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq closed slightly higher on Wednesday after strong Microsoft Corp MSFT.O results boosted technology shares, but the S&P 500 and the Dow fell on lingering concerns about a weakening U.S. economy and the banking sector. Economically sensitive transport stocks had their weakest day in 11 months, and bank stocks fell as regional bank First Republic hit a record low.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc >, up 2.3%; data analytics company Datadog DDOG.O, up 10.5%; and data cloud giant Snowflake Inc SNOW.N, which closed up 8.5%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq closed slightly higher on Wednesday after strong Microsoft Corp MSFT.O results boosted technology shares, but the S&P 500 and the Dow fell on lingering concerns about a weakening U.S. economy and the banking sector. Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday morning, 79.8% topped analysts' expectations, as per Refinitiv IBES data.
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2023-04-26 00:00:00 UTC
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US STOCKS-Nasdaq climbs as investors cheer Microsoft, Alphabet results
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https://www.nasdaq.com/articles/us-stocks-nasdaq-climbs-as-investors-cheer-microsoft-alphabet-results
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By Sinéad Carew, Ankika Biswas and Sruthi Shankar
April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong Microsoft Corp MSFT.Oresults partially offset concerns over rising interest rates and their effect on the U.S. economy.
Microsoft shares rose more than 7.5% following upbeat quarterly earnings and sales, including of robust artificial intelligence products. The results boosted companies such as cloud computing rival Amazon.com Inc AMZN.O, which was up more than 3%, and data analytics company Datadog DDOG.O, which surged more than 12%. Data cloud giant Snowflake Inc SNOW.N rose more than 9%.
Alphabet Inc GOOGL.O reported better-than-expected first-quarter results and a $70-billion share buyback plan, but its shares edged lower.
"It's really Nasdaq's turn to shine because of good results from Alphabet and Microsoft. People are more optimistic about the outlook for technology once again," said Brian Jacobson, senior investment strategist at Allspring Global investments.
"Tech is the engine on the train today pulling the rest of the market."
However, the economically sensitive Dow Transports average .DJT fell more than 3%, selling off for a second straight day on Wednesday's weaker-than-expected capital goods data and Tuesday's weak United Parcel Service UPS.Nresults.
New orders for key U.S.-manufactured capital goods fell more than expected in March and shipments declined, suggesting that business spending on equipment likely remained a drag on first-quarter economic growth.
The Dow Jones Industrial Average .DJI fell 198.13 points, or 0.59%, to 33,332.7. The S&P 500 .SPX lost 12.12 points, or 0.30%, at 4,059.51.
The Nasdaq Composite index .IXIC was up 0.7% or 82.69 points, at 11,881.85, according to the latest information on Nasdaq.com.
Still, earnings forecasts looked way more optimistic after earnings reports late Tuesday, with analysts expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday, 79.8% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
"There had been a greater concern that the economy was going to slow down to a more significant extent and so far first-quarter earnings are bucking that trend and looking much stronger than anticipated," said Greg Bassuk, chief executive at AXS Investments.
However, regional lender First Republic Bank's FRC.N shares sank more than 20%, hitting a fresh record low for the second day in a row, on a reportthat the U.S. government was unwilling to engineer its rescue, after the lender reported plunging deposits earlier this week.
Shares of PacWest Bancorp PACW.O, another regional bank, rose more than 12% as it beat estimates for first-quarter profit and stabilized deposit outflows.
The S&P 600 regional banks sub index .SPSMCBNKS advanced 0.4%.
Meta Platforms Inc META.O is scheduled to report results after the market close.
Investors are also keenly awaiting the Federal Reserve's monetary policy decision on May 3 for clues on policymakers' next steps regarding interest rates.
Traders have priced in a 79% chance of the U.S. central bank hiking rates by 25 basis points next week, as per CMEGroup's Fedwatch tool, with most expecting the Fed to hold rates before starting to cut them later this year.
Reflecting mounting anxiety among investors, the cost of insuring exposure to U.S. sovereign debt rose to its highest since 2011, driven up by unease that the government could hit its debt ceiling sooner than expected.
The U.S. House of Representatives could vote as early as Wednesday on a bill that sharply cuts spending for a decade in exchange for a short-term hike in the debt ceiling, though it was unclear if it had enough support in the Republican majority to pass.
Among other stocks, Visa Inc V.Nedged down 0.4% after reporting better-than-expected second-quarter profit and betting on sustained growth in its payments business.
Activision Blizzard ATVI.O tumbled 11.6% after UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
Declining issues outnumbered advancers on the NYSE by a 1.62-to-1 ratio. The S&P 500 posted five new 52-week highs and seven new lows.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@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.
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The results boosted companies such as cloud computing rival Amazon.com Inc AMZN.O, which was up more than 3%, and data analytics company Datadog DDOG.O, which surged more than 12%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong Microsoft Corp MSFT.Oresults partially offset concerns over rising interest rates and their effect on the U.S. economy. "There had been a greater concern that the economy was going to slow down to a more significant extent and so far first-quarter earnings are bucking that trend and looking much stronger than anticipated," said Greg Bassuk, chief executive at AXS Investments.
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The results boosted companies such as cloud computing rival Amazon.com Inc AMZN.O, which was up more than 3%, and data analytics company Datadog DDOG.O, which surged more than 12%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong Microsoft Corp MSFT.Oresults partially offset concerns over rising interest rates and their effect on the U.S. economy. Still, earnings forecasts looked way more optimistic after earnings reports late Tuesday, with analysts expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
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The results boosted companies such as cloud computing rival Amazon.com Inc AMZN.O, which was up more than 3%, and data analytics company Datadog DDOG.O, which surged more than 12%. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong Microsoft Corp MSFT.Oresults partially offset concerns over rising interest rates and their effect on the U.S. economy. Still, earnings forecasts looked way more optimistic after earnings reports late Tuesday, with analysts expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
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The results boosted companies such as cloud computing rival Amazon.com Inc AMZN.O, which was up more than 3%, and data analytics company Datadog DDOG.O, which surged more than 12%. Alphabet Inc GOOGL.O reported better-than-expected first-quarter results and a $70-billion share buyback plan, but its shares edged lower. The S&P 600 regional banks sub index .SPSMCBNKS advanced 0.4%.
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2023-04-26 00:00:00 UTC
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Wednesday's ETF Movers: SKYY, TAN
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https://www.nasdaq.com/articles/wednesdays-etf-movers%3A-skyy-tan
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In trading on Wednesday, the First Trust Cloud Computing ETF is outperforming other ETFs, up about 1.9% on the day. Components of that ETF showing particular strength include shares of Mongodb, up about 13.3% and shares of Datadog, up about 12.1% on the day.
And underperforming other ETFs today is the Invesco Solar ETF, down about 5% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Enphase Energy, lower by about 24.7%, and shares of Maxeon Solar Technologies, lower by about 11.2% on the day.
VIDEO: Wednesday's ETF Movers: SKYY, TAN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF showing particular strength include shares of Mongodb, up about 13.3% and shares of Datadog, up about 12.1% on the day. Among components of that ETF with the weakest showing on Wednesday were shares of Enphase Energy, lower by about 24.7%, and shares of Maxeon Solar Technologies, lower by about 11.2% on the day. VIDEO: Wednesday's ETF Movers: SKYY, TAN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And underperforming other ETFs today is the Invesco Solar ETF, down about 5% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Enphase Energy, lower by about 24.7%, and shares of Maxeon Solar Technologies, lower by about 11.2% on the day. VIDEO: Wednesday's ETF Movers: SKYY, TAN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, the First Trust Cloud Computing ETF is outperforming other ETFs, up about 1.9% on the day. And underperforming other ETFs today is the Invesco Solar ETF, down about 5% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Enphase Energy, lower by about 24.7%, and shares of Maxeon Solar Technologies, lower by about 11.2% on the day.
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In trading on Wednesday, the First Trust Cloud Computing ETF is outperforming other ETFs, up about 1.9% on the day. Components of that ETF showing particular strength include shares of Mongodb, up about 13.3% and shares of Datadog, up about 12.1% on the day. And underperforming other ETFs today is the Invesco Solar ETF, down about 5% in Wednesday afternoon trading.
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2023-04-26 00:00:00 UTC
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Nasdaq futures jump as investors cheer Microsoft results
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https://www.nasdaq.com/articles/nasdaq-futures-jump-as-investors-cheer-microsoft-results
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Microsoft up as quarterly results top forecasts
Cloud firms gains on Microsoft's earnings
Activision Blizzard down as UK blocks Microsoft deal
March durable goods data due before opening bell
Futures: Dow off 0.07%, S&P up 0.05%, Nasdaq climbs 0.81%
Updates prices throughout; adds details, comments
By Sruthi Shankar and Ankika Biswas
April 26 (Reuters) - Nasdaq futures rose on Wednesday buoyed by upbeat earnings from technology major Microsoft, though S&P 500 and Dow contracts came under pressure from worries about the impact of rising interest rates on the U.S. economy.
Microsoft Corp MSFT.O climbed 7.3% in premarket trading after it beat estimates for quarterly results, and said that artificial intelligence products were stimulating sales.
Tracking the strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.9% and 7.1%.
"Despite some better-than-expected results from the first of the big tech crowd to report, the darkening picture of consumer confidence has increased concerns about lower spending ahead," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
Wall Street's major averages suffered their deepest declines so far this month on Tuesday as a downbeat UPS UPS.Nforecast exacerbated investor concerns about a slowing U.S. economy while plunging deposits at First Republic Bank FRC.N added to jitters about the bank sector's health.
Denting sentiment, Activision Blizzard ATVI.O fell 12% after UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
Earnings forecasts have also improved, with analysts expecting a 3.9% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the beginning of the earnings season.
Meta Platforms Inc META.O is scheduled to report after market close on Wednesday.
At 7:20 a.m. ET, Dow e-minis 1YMcv1 were down 25 points, or 0.07%, S&P 500 e-minis EScv1 were up 2.25 points, or 0.05%, while Nasdaq 100 e-minis NQcv1 were up 103.5 points, or 0.81%.
Durable goods data for March is scheduled for release at 8:30 a.m. ET. A key inflation metric as well as U.S. GDP data for the first quarter will be out later in the week.
Data on Tuesday showed U.S. consumer confidence dropped to a nine-month low in April, signaling that the economy could fall into recession this year.
Investors are keenly awaiting the Federal Reserve's monetary policy decision on May 3 for clues on how far policymakers will hike interest rates.
Traders have given about 77% odds to the U.S. central bank hiking rates by 25 basis points next week, as per CMEGroup's Fedwatch tool, with most expecting the Fed to hold rates before starting to cut them later this year.
Reflecting mounting anxiety among investors, the cost of insuring exposure to U.S. sovereign debt rose to its highest since 2011, driven up by unease that the government could hit its debt ceiling sooner than expected.
The U.S. House of Representatives could as early as Wednesday vote on a bill to sharply cut spending for a decade in exchange for a short-term hike in the debt ceiling, though it was unclear if it had enough support in the Republican majority to pass.
Among other stocks, Visa Inc V.N inched up 0.9% on reporting better-than-expected second-quarter profit and betting on sustained growth at its payments business, while PacWest Bancorp PACW.O rallied 14.2% as the regional lender beat estimates for first-quarter profit as it managed to stabilize deposit outflows.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay DwivediS)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tracking the strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.9% and 7.1%. "Despite some better-than-expected results from the first of the big tech crowd to report, the darkening picture of consumer confidence has increased concerns about lower spending ahead," said Susannah Streeter, head of money and markets, Hargreaves Lansdown. Data on Tuesday showed U.S. consumer confidence dropped to a nine-month low in April, signaling that the economy could fall into recession this year.
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Tracking the strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.9% and 7.1%. Microsoft up as quarterly results top forecasts Cloud firms gains on Microsoft's earnings Activision Blizzard down as UK blocks Microsoft deal March durable goods data due before opening bell Futures: Dow off 0.07%, S&P up 0.05%, Nasdaq climbs 0.81% Updates prices throughout; adds details, comments By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Nasdaq futures rose on Wednesday buoyed by upbeat earnings from technology major Microsoft, though S&P 500 and Dow contracts came under pressure from worries about the impact of rising interest rates on the U.S. economy. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data.
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Tracking the strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.9% and 7.1%. Microsoft up as quarterly results top forecasts Cloud firms gains on Microsoft's earnings Activision Blizzard down as UK blocks Microsoft deal March durable goods data due before opening bell Futures: Dow off 0.07%, S&P up 0.05%, Nasdaq climbs 0.81% Updates prices throughout; adds details, comments By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Nasdaq futures rose on Wednesday buoyed by upbeat earnings from technology major Microsoft, though S&P 500 and Dow contracts came under pressure from worries about the impact of rising interest rates on the U.S. economy. Among other stocks, Visa Inc V.N inched up 0.9% on reporting better-than-expected second-quarter profit and betting on sustained growth at its payments business, while PacWest Bancorp PACW.O rallied 14.2% as the regional lender beat estimates for first-quarter profit as it managed to stabilize deposit outflows.
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Tracking the strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.9% and 7.1%. Microsoft up as quarterly results top forecasts Cloud firms gains on Microsoft's earnings Activision Blizzard down as UK blocks Microsoft deal March durable goods data due before opening bell Futures: Dow off 0.07%, S&P up 0.05%, Nasdaq climbs 0.81% Updates prices throughout; adds details, comments By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Nasdaq futures rose on Wednesday buoyed by upbeat earnings from technology major Microsoft, though S&P 500 and Dow contracts came under pressure from worries about the impact of rising interest rates on the U.S. economy. In a typical quarter, 66% companies beat estimates.
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2023-04-26 00:00:00 UTC
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US STOCKS-Nasdaq climbs as investors cheer Microsoft, Alphabet results
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https://www.nasdaq.com/articles/us-stocks-nasdaq-climbs-as-investors-cheer-microsoft-alphabet-results-0
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By Sinéad Carew, Ankika Biswas and Sruthi Shankar
April 26 (Reuters) - The tech-heavy Nasdaq outperformed Wall Street's other major indexes on Wednesday after strong Microsoft Corp MSFT.O results boosted the technology sector but gains pared as the session wore on due to lingering concerns about a weakening U.S. economy and the banking sector.
The S&P 500 and the Dow ended lower, dragged down by economically sensitive transport stocks due to ongoing recession fears. Bank stocks were also under pressure as regional bank First Republic hit a record low. Investors have been jittery about the sector since the recent failure of two U.S. banks.
Still, Microsoft shares rallied following upbeat quarterly earnings and sales, including of robust artificial intelligence products. Its results boosted shares in companies such as cloud computing rival Amazon.com Inc AMZN.O, data analytics company Datadog DDOG.O and data cloud giant Snowflake Inc SNOW.N.
Alphabet Inc GOOGL.O reported better-than-expected first-quarter results and a $70-billion share buyback plan.
"The market is looking for direction on where the economy and companies are headed. We've had some good earnings reports come out but investors are realizing its not sufficient to clarify the path forward," said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis.
Investors are waiting for more earnings reports and a key inflation reading on Friday as well as the Federal Reserve meeting next week, Erickson said.
According to preliminary data, the S&P 500 .SPX lost 15.40 points, or 0.39%, to end at 4,056.23 points, while Nasdaq Composite index .IXIC was up 0.47% at 11,854.83, according to the latest information on Nasdaq.com. The Dow Jones Industrial Average .DJI fell 230.54 points, or 0.69%, to 33,305.46.
However, the economically sensitive Dow Transports average .DJT tumbled for a second straight day after Wednesday's weaker-than-expected capital goods data and Tuesday's weak United Parcel Service UPS.N results.
New orders for key U.S.-manufactured capital goods fell more than expected in March and shipments declined, suggesting that business spending on equipment likely remained a drag on first-quarter economic growth.
Still, earnings forecasts looked way more optimistic after Tuesday evening's bullish reports, with analysts now expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday, 79.8% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
"There had been a greater concern that the economy was going to slow down to a more significant extent and so far first-quarter earnings are bucking that trend and looking much stronger than anticipated," said Greg Bassuk, chief executive at AXS Investments.
However, regional lender First Republic Bank's FRC.N shares sank, hitting a fresh record low for the second day in a row, after a report that the U.S. government was unwilling to engineer its rescue, after the lender reported plunging deposits earlier this week.
U.S. bank regulators were weighing the prospect of downgrading their private assessments of First Republic, which could curb its borrowing from the Fed, Bloomberg News reported on Wednesday afternoon.
Shares of PacWest Bancorp PACW.O, another regional bank, rallied as it beat estimates for first-quarter profit and stabilized deposit outflows.
Meta Platforms Inc META.O is scheduled to report results after the market close.
Investors are awaiting the Fed's monetary policy decision on May 3 for clues on policymakers' next steps regarding interest rates.
Traders have priced in a 79% chance of the U.S. central bank hiking rates by 25 basis points next week, as per CMEGroup's Fedwatch tool, with most expecting the Fed to hold rates before starting to cut them later this year.
Reflecting mounting anxiety among investors, the cost of insuring exposure to U.S. sovereign debt rose to its highest since 2011, driven up by unease that the government could hit its debt ceiling sooner than expected.
Activision Blizzard ATVI.O tumbled after UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@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.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc AMZN.O, data analytics company Datadog DDOG.O and data cloud giant Snowflake Inc SNOW.N. We've had some good earnings reports come out but investors are realizing its not sufficient to clarify the path forward," said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis. However, the economically sensitive Dow Transports average .DJT tumbled for a second straight day after Wednesday's weaker-than-expected capital goods data and Tuesday's weak United Parcel Service UPS.N results.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc AMZN.O, data analytics company Datadog DDOG.O and data cloud giant Snowflake Inc SNOW.N. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq outperformed Wall Street's other major indexes on Wednesday after strong Microsoft Corp MSFT.O results boosted the technology sector but gains pared as the session wore on due to lingering concerns about a weakening U.S. economy and the banking sector. The S&P 500 and the Dow ended lower, dragged down by economically sensitive transport stocks due to ongoing recession fears.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc AMZN.O, data analytics company Datadog DDOG.O and data cloud giant Snowflake Inc SNOW.N. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq outperformed Wall Street's other major indexes on Wednesday after strong Microsoft Corp MSFT.O results boosted the technology sector but gains pared as the session wore on due to lingering concerns about a weakening U.S. economy and the banking sector. Still, earnings forecasts looked way more optimistic after Tuesday evening's bullish reports, with analysts now expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with expectations for a 3.9% decline just a day ago.
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Its results boosted shares in companies such as cloud computing rival Amazon.com Inc AMZN.O, data analytics company Datadog DDOG.O and data cloud giant Snowflake Inc SNOW.N. By Sinéad Carew, Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq outperformed Wall Street's other major indexes on Wednesday after strong Microsoft Corp MSFT.O results boosted the technology sector but gains pared as the session wore on due to lingering concerns about a weakening U.S. economy and the banking sector. "The market is looking for direction on where the economy and companies are headed.
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2023-04-26 00:00:00 UTC
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Why Cloudflare, Snowflake, MongoDB, and Other Cloud Stocks Rallied Wednesday Morning
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https://www.nasdaq.com/articles/why-cloudflare-snowflake-mongodb-and-other-cloud-stocks-rallied-wednesday-morning
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What happened
For good or for bad, the state of the economy has dominated the headlines in recent months and has been the primary market driver thus far in 2023. Market watchers and the Federal Reserve alike have been watching closely for signs of an impending recession, and while talk of a mild downturn has increased in recent weeks, investors have been hopeful for a so-called "soft landing," with the economy sidestepping a recession. However, the quarterly results of a couple of prominent cloud providers gave the clearest indication yet that the expected downturn may yet be avoided.
With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. ET on Wednesday.
A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' targets -- turned up nothing in the way of company-specific news driving these cloud stocks higher today. This seems to support the conclusion that investors are reacting to the possibility that the economy might actually be headed for better days and the worst of the bear market could be in the rearview mirror.
Image source: Getty Images.
So what
Minutes from the April meeting of the central bank's Federal Open Market Committee, released earlier this month, revealed that Fed officials believe the economy will likely experience a brief recession later this year. The potential for a recession, however brief, led to fears that businesses would further rein in spending, which would weigh on growth in cloud computing.
However, quarterly results released by cloud infrastructure leaders Microsoft and Alphabet were more robust than expected, which seemed to dispel those concerns -- at least for now -- giving investors a much-needed dose of confidence, and sending a number of stocks in the cloud sector higher.
After the market close on Tuesday, Microsoft reported the results for its fiscal 2023 third quarter (which ended March 31). The tech giant delivered revenue of $52.9 billion, up 7% year over year. The growth was even better when excluding the impact of foreign currency exchange rates, growing 10% in constant currency. That strength continued to the bottom line: Earnings per share (EPS) of $2.45 rose 10%, or 14% in constant currency. For context, analysts' consensus estimates were calling for revenue of $51 billion and EPS of $2.24, so Microsoft surpassed expectations with ease.
Alphabet's results were also better than anticipated. For the first quarter, the Google parent generated revenue of $69.8 billion, up 3% year over year, or 6% in constant currency. Alphabet's EPS of $1.17 slipped 5%, but the company cited a one-time charge of $2.6 billion related to job cuts as the culprit. Market watchers were expecting revenue of $68.9 billion and EPS of $1.31, so it was a mixed bag.
Still, the results were better than many expected, helping to buoy many companies in the cloud sector and helping push the tech-centric Nasdaq Composite into positive territory on Wednesday morning.
Data by YCharts
Now what
It's important to note that while investor sentiment is rosy today, the market is only one negative report away from further declines, as the final chapter on this economic story has yet to be written and stocks will likely remain volatile for the foreseeable future.
Veteran investors know full well that calling a bottom is hard, if not impossible. There's good news, however. As illustrated in the above chart, each of these companies has continued to grow revenue over the past year, even as their stock prices have trended lower. Once the economy stabilizes, which it no doubt will, Wall Street will reward companies that have proven their mettle during uncertain times -- and this quartet of stocks clearly meets that criteria.
There is, of course, the matter of valuation to consider. While none of these stocks is necessarily cheap, they are trading at a significant discount to their recent highs. Snowflake, Cloudflare, MongoDB, and Datadog are currently selling for 12 times, 11 times, 9 times, and 9 times next year's sales, respectively, when a reasonable price-to-sales ratio is generally between 1 and 2. That said, valuation shouldn't be viewed in a vacuum and investors frequently award a higher valuation to companies with continued strong revenue growth -- particularly in the face of economic headwinds.
For investors expecting to hold their shares for at least three to five years, these stocks represent an intriguing opportunity, and could generate impressive gains over time.
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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 Cloudflare wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 24, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Cloudflare, Datadog, Microsoft, MongoDB, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Cloudflare, Datadog, Microsoft, MongoDB, 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.
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With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' targets -- turned up nothing in the way of company-specific news driving these cloud stocks higher today. So what Minutes from the April meeting of the central bank's Federal Open Market Committee, released earlier this month, revealed that Fed officials believe the economy will likely experience a brief recession later this year.
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With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. Danny Vena has positions in Alphabet, Cloudflare, Datadog, Microsoft, MongoDB, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Cloudflare, Datadog, Microsoft, MongoDB, and Snowflake.
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With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. However, quarterly results released by cloud infrastructure leaders Microsoft and Alphabet were more robust than expected, which seemed to dispel those concerns -- at least for now -- giving investors a much-needed dose of confidence, and sending a number of stocks in the cloud sector higher. For investors expecting to hold their shares for at least three to five years, these stocks represent an intriguing opportunity, and could generate impressive gains over time.
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With that as a backdrop, Cloudflare (NYSE: NET) rose 5.2%, Snowflake (NYSE: SNOW) climbed 8.1%, MongoDB (NASDAQ: MDB) jumped 11.2%, and Datadog (NASDAQ: DDOG) rallied 14% as of 11:10 a.m. For the first quarter, the Google parent generated revenue of $69.8 billion, up 3% year over year, or 6% in constant currency. That said, valuation shouldn't be viewed in a vacuum and investors frequently award a higher valuation to companies with continued strong revenue growth -- particularly in the face of economic headwinds.
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2225f873-d62f-48e3-ab3f-c4e86bd9d775
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718282.0
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2023-04-26 00:00:00 UTC
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US STOCKS-Wall St poised to open higher on upbeat Microsoft, Boeing results
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DDOG
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https://www.nasdaq.com/articles/us-stocks-wall-st-poised-to-open-higher-on-upbeat-microsoft-boeing-results
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nan
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nan
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By Sruthi Shankar and Ankika Biswas
April 26 (Reuters) - Wall Street was on course to open higher on Wednesday as strong results from Microsoft and positive forecast from Boeing offset concerns over rising interest rates and their effect on the U.S. economy.
Microsoft Corp MSFT.O climbed 8.2% in premarket trading after it beat estimates for quarterly results, and said that artificial intelligence products were stimulating sales.
Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.7% and 8.4%.
Earnings forecasts have improved, with analysts expecting a 3.9% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the beginning of the earnings season.
Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
"Despite some better-than-expected results from the first of the big tech crowd to report, the darkening picture of consumer confidence has increased concerns about lower spending ahead," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
A report on Tuesday showed U.S. consumer confidence dropped to a nine-month low in April, signaling that the economy could fall into recession this year.
Wall Street's major averages suffered their deepest declines so far this month on Tuesday as a downbeat UPS UPS.Nforecast exacerbated investor concerns about a slowing U.S. economy while plunging deposits at First Republic Bank FRC.N added to jitters about the bank sector's health.
First Republic shares extended declines, dropping 15.6% in premarket trade.
Activision Blizzard ATVI.O fell 10.1% after UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
Boeing Co BA.N added 2.7% after the planemaker said it planned to ramp up production of its 737 MAX jets to 38 per month by the year-end, while backing its annual cash-flow target.
Meta Platforms Inc META.O is scheduled to report results after market close on Wednesday.
At 08:48 a.m. ET, Dow e-minis 1YMcv1 were up 62 points, or 0.18%, S&P 500 e-minis EScv1 were up 11.5 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 139.75 points, or 1.09%.
Investors are keenly awaiting the Federal Reserve's monetary policy decision on May 3 for clues on how far policymakers will hike interest rates.
Traders have given about 77% odds to the U.S. central bank hiking rates by 25 basis points next week, as per CMEGroup's Fedwatch tool, with most expecting the Fed to hold rates before starting to cut them later this year.
Reflecting mounting anxiety among investors, the cost of insuring exposure to U.S. sovereign debt rose to its highest since 2011, driven up by unease that the government could hit its debt ceiling sooner than expected.
The U.S. House of Representatives could vote as early as Wednesday on a bill that sharply cuts spending for a decade in exchange for a short-term hike in the debt ceiling, though it was unclear if it had enough support in the Republican majority to pass.
Among other stocks, Visa Inc V.N inched up 1.4% on reporting better-than-expected second-quarter profit and betting on sustained growth at its payments business, while PacWest Bancorp PACW.O rallied 14.2% as the regional lender beat estimates for first-quarter profit as it managed to stabilize deposit outflows.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.7% and 8.4%. By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Wall Street was on course to open higher on Wednesday as strong results from Microsoft and positive forecast from Boeing offset concerns over rising interest rates and their effect on the U.S. economy. "Despite some better-than-expected results from the first of the big tech crowd to report, the darkening picture of consumer confidence has increased concerns about lower spending ahead," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.7% and 8.4%. By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Wall Street was on course to open higher on Wednesday as strong results from Microsoft and positive forecast from Boeing offset concerns over rising interest rates and their effect on the U.S. economy. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.7% and 8.4%. By Sruthi Shankar and Ankika Biswas April 26 (Reuters) - Wall Street was on course to open higher on Wednesday as strong results from Microsoft and positive forecast from Boeing offset concerns over rising interest rates and their effect on the U.S. economy. Wall Street's major averages suffered their deepest declines so far this month on Tuesday as a downbeat UPS UPS.Nforecast exacerbated investor concerns about a slowing U.S. economy while plunging deposits at First Republic Bank FRC.N added to jitters about the bank sector's health.
|
Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 2.7% and 8.4%. Of the 124 S&P 500 companies that reported first-quarter profit through Tuesday, 79% topped analysts' expectations, as per Refinitiv IBES data. "Despite some better-than-expected results from the first of the big tech crowd to report, the darkening picture of consumer confidence has increased concerns about lower spending ahead," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
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41a5d6b0-4a52-4561-9181-55de67408c70
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718283.0
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2023-04-26 00:00:00 UTC
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Nasdaq climbs as investors cheer Microsoft, Alphabet results
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DDOG
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https://www.nasdaq.com/articles/nasdaq-climbs-as-investors-cheer-microsoft-alphabet-results
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nan
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nan
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By Ankika Biswas and Sruthi Shankar
April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong results from Microsoft and Alphabet offset concerns over rising interest rates and their effect on the U.S. economy.
Microsoft Corp MSFT.O climbed 8.1 following upbeat quarterly results and on robust artificial intelligence product sales, while Alphabet Inc GOOGL.O inched up 0.5% on a $70-billion share buyback plan and better-than-expected first-quarter report.
Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 3.6% and 8.9%.
Earnings forecasts have improved, with analysts expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the start of the earnings season.
Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday, 79.8% topped analysts' expectations, as per Refinitiv IBES data. In a typical quarter, 66% companies beat estimates.
"There had been a greater concern that the economy was going to slow down to a more significant extent and so far first-quarter earnings are bucking that trend and looking much stronger than anticipated," said Greg Bassuk, chief executive at AXS Investments.
Meanwhile, First Republic Bank's FRC.N shares hit another record low after a report said the U.S. government was unwilling to engineer its rescue, after the lender reported plunging deposits earlier this week.
PacWest Bancorp PACW.O gained 14.2% as the regional lender beat estimates for first-quarter profit and managed to stabilize deposit outflows.
The S&P 600 regional banks sub index .SPSMCBNKS advanced 1%.
Meta Platforms Inc META.O is scheduled to report results after market close on Wednesday.
At 11:54 a.m. ET, the Dow Jones Industrial Average .DJI was down 2.12 points, or 0.01%, at 33,528.71 the S&P 500 .SPX was up 12.33 points, or 0.30%, at 4,083.96
The Nasdaq Composite index .IXIC rose 1.23%, or 147.93, at 11,947.09, as per Nasdaq.com.
Investors are keenly awaiting the Federal Reserve's monetary policy decision on May 3 for clues on how far policymakers will hike interest rates.
Traders have priced in a 79% chance of the U.S. central bank hiking rates by 25 basis points next week, as per CMEGroup's Fedwatch tool, with most expecting the Fed to hold rates before starting to cut them later this year.
Reflecting mounting anxiety among investors, the cost of insuring exposure to U.S. sovereign debt rose to its highest since 2011, driven up by unease that the government could hit its debt ceiling sooner than expected.
The U.S. House of Representatives could vote as early as Wednesday on a bill that sharply cuts spending for a decade in exchange for a short-term hike in the debt ceiling, though it was unclear if it had enough support in the Republican majority to pass.
Among other stocks, Visa Inc V.N inched up 0.2% on reporting better-than-expected second-quarter profit and betting on sustained growth in its payments business.
Activision Blizzard ATVI.O tumbled 11.2% after UK's competition regulator prevented its takeover by Microsoft on antitrust concerns.
Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE and a 1.00-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and seven new lows, while the Nasdaq recorded 42 new highs and 300 new lows.
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 3.6% and 8.9%. By Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong results from Microsoft and Alphabet offset concerns over rising interest rates and their effect on the U.S. economy. Microsoft Corp MSFT.O climbed 8.1 following upbeat quarterly results and on robust artificial intelligence product sales, while Alphabet Inc GOOGL.O inched up 0.5% on a $70-billion share buyback plan and better-than-expected first-quarter report.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 3.6% and 8.9%. By Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong results from Microsoft and Alphabet offset concerns over rising interest rates and their effect on the U.S. economy. Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday, 79.8% topped analysts' expectations, as per Refinitiv IBES data.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 3.6% and 8.9%. By Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong results from Microsoft and Alphabet offset concerns over rising interest rates and their effect on the U.S. economy. Of the 163 S&P 500 companies that reported first-quarter profit through Wednesday, 79.8% topped analysts' expectations, as per Refinitiv IBES data.
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Tracking a strong performance in Microsoft's cloud segment, firms including Amazon.com AMZN.O, data analytics company Datadog DDOG.O, and data cloud giant Snowflake Inc SNOW.N advanced between 3.6% and 8.9%. By Ankika Biswas and Sruthi Shankar April 26 (Reuters) - The tech-heavy Nasdaq advanced on Wednesday as strong results from Microsoft and Alphabet offset concerns over rising interest rates and their effect on the U.S. economy. Earnings forecasts have improved, with analysts expecting a 3.2% contraction in first-quarter profit for S&P 500 companies compared with a 5.2% decline estimated at the start of the earnings season.
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bd5588b2-d89f-4f4d-981d-cb2413560493
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718284.0
|
2023-04-25 00:00:00 UTC
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Unusual Put Option Trade in Datadog, Inc. (DDOG) Worth $474.00K
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DDOG
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-datadog-inc.-ddog-worth-%24474.00k
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nan
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nan
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On April 25, 2023 at 13:17:07 ET an unusually large $474.00K block of Put contracts in Datadog, Inc. (DDOG) was bought, with a strike price of $56.00 / share, expiring in 24 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.82 sigmas above the mean, placing it in the 95.94th percentile of all recent large trades made in DDOG options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1285 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 18 owner(s) or 1.38% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 6.72%. Total shares owned by institutions decreased in the last three months by 0.53% to 263,636K shares.
The put/call ratio of DDOG is 0.56, indicating a bullish outlook.
Analyst Price Forecast Suggests 54.32% Upside
As of April 24, 2023, the average one-year price target for Datadog, Inc. is $101.40. The forecasts range from a low of $70.70 to a high of $133.35. The average price target represents an increase of 54.32% from its latest reported closing price of $65.71.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 35.04%. The projected annual non-GAAP EPS is $1.20.
What are Other Shareholders Doing?
Atlas Capital Advisors holds 1K shares representing 0.00% ownership of the company. No change in the last quarter.
PHASX - MidCap Growth Fund III R-1 holds 49K shares representing 0.02% ownership of the company. In it's prior filing, the firm reported owning 49K shares, representing a decrease of 1.55%. The firm decreased its portfolio allocation in DDOG by 13.38% over the last quarter.
EFG Asset Management holds 36K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 35K shares, representing an increase of 5.10%. The firm decreased its portfolio allocation in DDOG by 99.91% over the last quarter.
Jefferies Group holds 33K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 23K shares, representing an increase of 28.74%. The firm increased its portfolio allocation in DDOG by 46.04% over the last quarter.
ExodusPoint Capital Management holds 11K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 5K shares, representing an increase of 56.74%. The firm increased its portfolio allocation in DDOG by 112.22% 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.
See all Datadog, Inc. regulatory filings.
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.
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On April 25, 2023 at 13:17:07 ET an unusually large $474.00K block of Put contracts in Datadog, Inc. (DDOG) was bought, with a strike price of $56.00 / share, expiring in 24 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.82 sigmas above the mean, placing it in the 95.94th percentile of all recent large trades made in DDOG options. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 6.72%.
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On April 25, 2023 at 13:17:07 ET an unusually large $474.00K block of Put contracts in Datadog, Inc. (DDOG) was bought, with a strike price of $56.00 / share, expiring in 24 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.82 sigmas above the mean, placing it in the 95.94th percentile of all recent large trades made in DDOG options. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 6.72%.
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On April 25, 2023 at 13:17:07 ET an unusually large $474.00K block of Put contracts in Datadog, Inc. (DDOG) was bought, with a strike price of $56.00 / share, expiring in 24 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.82 sigmas above the mean, placing it in the 95.94th percentile of all recent large trades made in DDOG options. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 6.72%.
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On April 25, 2023 at 13:17:07 ET an unusually large $474.00K block of Put contracts in Datadog, Inc. (DDOG) was bought, with a strike price of $56.00 / share, expiring in 24 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.82 sigmas above the mean, placing it in the 95.94th percentile of all recent large trades made in DDOG options. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 6.72%.
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accdf112-51e5-4469-80c9-85b7beca29fd
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718285.0
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2023-04-25 00:00:00 UTC
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DataDog Stock Could Soar 46%, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/datadog-stock-could-soar-46-according-to-wall-street
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nan
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nan
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DataDog (NASDAQ: DDOG) has robust growth expectations over the next several years. That could be why Wall Street analysts see significant upside to DataDog stock.
*Stock prices used were the afternoon prices of April 22, 2023. The video was published on April 24, 2023.
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 April 24, 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 fool.com/parkev, 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.
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DataDog (NASDAQ: DDOG) has robust growth expectations over the next several years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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DataDog (NASDAQ: DDOG) has robust growth expectations over the next several years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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DataDog (NASDAQ: DDOG) has robust growth expectations over the next several years. 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.
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DataDog (NASDAQ: DDOG) has robust growth expectations over the next several years. See the 10 stocks *Stock Advisor returns as of April 24, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog.
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8938721e-4668-41a1-a54a-018a0684b781
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718286.0
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2023-04-25 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-5
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nan
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nan
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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 value 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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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 value stock in the Software & Programming industry.
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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).
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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).
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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.
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7253ea42-5e08-4c3b-952b-11ca74a1a506
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718287.0
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2023-04-21 00:00:00 UTC
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Why Datadog (DDOG) Could Beat Earnings Estimates Again
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DDOG
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https://www.nasdaq.com/articles/why-datadog-ddog-could-beat-earnings-estimates-again
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nan
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nan
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Datadog (DDOG), which belongs to the Zacks Internet - Software industry.
This data analytics and cloud monitoring company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 45.09%.
For the last reported quarter, Datadog came out with earnings of $0.26 per share versus the Zacks Consensus Estimate of $0.19 per share, representing a surprise of 36.84%. For the previous quarter, the company was expected to post earnings of $0.15 per share and it actually produced earnings of $0.23 per share, delivering a surprise of 53.33%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Datadog. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Datadog currently has an Earnings ESP of +2.86%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 4, 2023.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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 >>
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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.
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It is worth considering Datadog (DDOG), which belongs to the Zacks Internet - Software industry. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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It is worth considering Datadog (DDOG), which belongs to the Zacks Internet - Software industry. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
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It is worth considering Datadog (DDOG), which belongs to the Zacks Internet - Software industry. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
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It is worth considering Datadog (DDOG), which belongs to the Zacks Internet - Software industry. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, Datadog came out with earnings of $0.26 per share versus the Zacks Consensus Estimate of $0.19 per share, representing a surprise of 36.84%.
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4d59a51e-3cd2-49d8-a23b-42392143f629
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718288.0
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2023-04-21 00:00:00 UTC
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Nasdaq 100 Movers: ABNB, CSX
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-abnb-csx
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nan
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nan
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In early trading on Friday, shares of CSX topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. Year to date, CSX Corp registers a 2.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is Airbnb, trading down 4.6%. Airbnb is showing a gain of 32.1% looking at the year to date performance.
Two other components making moves today are Rivian Automotive, trading down 3.1%, and Datadog, trading up 1.6% on the day.
VIDEO: Nasdaq 100 Movers: ABNB, CSX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, CSX Corp registers a 2.4% gain. And the worst performing Nasdaq 100 component thus far on the day is Airbnb, trading down 4.6%. VIDEO: Nasdaq 100 Movers: ABNB, CSX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of CSX topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. And the worst performing Nasdaq 100 component thus far on the day is Airbnb, trading down 4.6%. Airbnb is showing a gain of 32.1% looking at the year to date performance.
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In early trading on Friday, shares of CSX topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.9%. And the worst performing Nasdaq 100 component thus far on the day is Airbnb, trading down 4.6%. VIDEO: Nasdaq 100 Movers: ABNB, CSX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Airbnb, trading down 4.6%. Airbnb is showing a gain of 32.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ABNB, CSX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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aef2bbdf-0535-46e8-9bf0-9e689810c1a0
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718289.0
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2023-04-20 00:00:00 UTC
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3 Stocks to Buy That Could Be the Next Cloud Computing Champion
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DDOG
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https://www.nasdaq.com/articles/3-stocks-to-buy-that-could-be-the-next-cloud-computing-champion
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cloud computing has rapidly transformed how businesses operate in recent years. Due to the security, cost savings, and flexibility benefits, demand for cloud-based services and technologies continues to grow. Across the technology stack, whether it’s data storage solutions, infrastructure, applications hosted and delivered through the cloud, or high-performance computing, cloud services have never been in such high demand. Cloud computing stocks will ride these secular themes as cloud migration continues and the economy undergoes a digital transformation.
Due to its scalable nature, innovative solutions, and cost savings, cloud computing will continue growing in the face of uncertain macroeconomic conditions. Statista projects public cloud spending to grow at a compounded annual growth rate (CAGR) of 13.81% between 2023-2027. While large cloud service providers like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) have dominated cloud offerings, small companies also stand a chance. Usually, these underdogs are nimbler and can move faster on product innovation. Over the last decade, smaller cloud players have demonstrated higher revenue growth. Now, they possess unique competitive advantages that position them for sustainable growth. This article will highlight three stocks to buy that could be the next cloud computing champion.
HubSpot (HUBS)
Source: rafapress / Shutterstock.com
HubSpot (NYSE:HUBS) is a cloud-based marketing, sales, and customer service software platform. Its software-as-a-service (SaaS) solution helps businesses attract, engage and delight customers. These tools facilitate communication and automation across various customer touchpoints. The company’s software integrates multiple tools into a single platform, including email marketing, social media management, customer relationship management (CRM), and analytics. This makes it easier for businesses to manage their customer interactions and marketing campaigns from one place rather than using multiple tools from different providers.
The company has adopted a unique strategy and market approach, giving it a competitive advantage over its peers. Firstly, it has developed its all-in-one platform around the concept of “inbound marketing.” Instead of utilizing traditional push marketing that constantly interrupts customers with unwanted messages, inbound marketing provides relevant and helpful content that attracts and engages customers. Secondly, it has adopted a different market approach. While its larger competitor Salesforce (NYSE:CRM), has been focusing on enterprise customers, HubSpot has been targeting the mid-market category focusing on small and medium-sized businesses (SMBs).
Financially, HubSpot has consistently shown strong growth. Based on industry trends, their outstanding growth is likely to continue. According to Gartner, the CRM market will grow 14% annually through 2025. HubSpot has consistently outpaced peers in the industry and will likely maintain its outperformance. For instance, the latest quarterly report showed 27% and 28% year-over-year (YOY) total revenue and subscription growth, respectively. Also, the company is growing profitably, generating $191.4 million in free cash flow (FCF) in 2022. Despite the challenging macro backdrop in 2022, customers increased by 24% to 167,386. Looking ahead, it is well-positioned to become the cloud CRM platform of choice for SMBs. Given its growth prospects, the stock is attractive at a current price-to-sales (P/S) of 11.6 and price-to-free cash flow (P/FCF) of 85x.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
This application performance monitoring and observability leader could be the next cloud computing champion. Datadog (NASDAQ:DDOG) is a cloud-based monitoring and analytics platform that provides real-time insights into an organization’s IT infrastructure, applications, and logs. Developers, IT operations teams, and business analysts use its software to identify and troubleshoot issues, optimize performance and improve user experience.
Datadog’s SaaS solutions collect, correlate and analyze data from multiple sources. The company’s platform is designed to provide a comprehensive view of an organization’s IT infrastructure, including cloud environments, on-premises servers, and containers. It also integrates with over 600 technologies, providing a wide range of insights and alerting capabilities.
Analysts have been recommending the stock, expecting the recent foray into cybersecurity to expand its total addressable market (TAM) significantly. Of the 25 Wall Street analysts covering the stock, 20 have a buy rating. In addition, the average price target is $103.38 representing over 58% upside. That is not surprising, considering its perfect blend of growth and profitability. According to Cantor, Jan. 25 note:
“Datadog’s fundamentals earns top-tier status in the SaaS category, in our view, balancing top-line growth of ~61%, and operating margin profile at ~18%, and adjusted FCF margin at ~21%, all which translates into a Rule of 70+ name.”
As competition from rivals such as Grafana and Chronosphere emerges, Datadog is staying ahead by developing machine learning (ML) and artificial intelligence (AI) tools for performance monitoring. The company uses these technologies to automatically detect anomalies, identify performance issues and provide recommendations for optimization. For instance, Watchdog, its AI engine, uses machine learning for root cause analysis and security threat detection. This native cloud observability platform will participate in the ongoing digital transformation and cloud migration making it one of the best cloud computing stocks to buy.
Cloudflare (NET)
Source: IgorGolovniov / Shutterstock.com
Cloudflare (NYSE:NET) is a cloud-based cybersecurity and performance optimization platform that protects websites and applications from online threats and improves their speed and reliability. As Mathew Prince, the CEO, describes it, “The network you plug into and don’t have to worry about anything else.”
It has a global network of over 200 data centers in more than 100 countries. These data centers ensure fast and reliable performance for its customers. It also offers various cloud network and application services, including application delivery controllers, wide area network (WAN), content delivery network (CDN), load balancing, and intrusion detection and prevention. Secondly, its zero trust services provide a range of security solutions such as virtual private networks (VPNs), content filtering, privileged access management, and data loss prevention.
Still, the company is entering new markets and expanding relationships to move up the market. It continues to innovate and pursue incremental growth in areas such as the Internet of Things (IoT) and serverless databases. For example, in September 2021, it launched Cloudflare R2 Storage, an inexpensive and reliable cloud-based data storage solution.
Regarding financial results, Cloudflare has been one of the fastest-growing cloud computing stocks. It grew revenues at a 49% CAGR between 2017 and 2022. Besides, it has maintained a strong dollar-based net retention above 120% in the last five quarters, a testament to its sticky cloud offerings. Although the company has a large revenue base, it expects a healthy revenue growth of at least 36% in fiscal year (FY) 2023. Overall, the company is growing responsibly. It has maintained non-GAAP gross margins above 78% over the last three years. Going forward, management expects to increase its operating margins from the current 6% as marginal costs for customer services decline.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post 3 Stocks to Buy That Could Be the Next Cloud Computing Champion 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.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com This application performance monitoring and observability leader could be the next cloud computing champion. Datadog (NASDAQ:DDOG) is a cloud-based monitoring and analytics platform that provides real-time insights into an organization’s IT infrastructure, applications, and logs. According to Cantor, Jan. 25 note: “Datadog’s fundamentals earns top-tier status in the SaaS category, in our view, balancing top-line growth of ~61%, and operating margin profile at ~18%, and adjusted FCF margin at ~21%, all which translates into a Rule of 70+ name.” As competition from rivals such as Grafana and Chronosphere emerges, Datadog is staying ahead by developing machine learning (ML) and artificial intelligence (AI) tools for performance monitoring.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com This application performance monitoring and observability leader could be the next cloud computing champion. Datadog (NASDAQ:DDOG) is a cloud-based monitoring and analytics platform that provides real-time insights into an organization’s IT infrastructure, applications, and logs. The company’s software integrates multiple tools into a single platform, including email marketing, social media management, customer relationship management (CRM), and analytics.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com This application performance monitoring and observability leader could be the next cloud computing champion. Datadog (NASDAQ:DDOG) is a cloud-based monitoring and analytics platform that provides real-time insights into an organization’s IT infrastructure, applications, and logs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing has rapidly transformed how businesses operate in recent years.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com This application performance monitoring and observability leader could be the next cloud computing champion. Datadog (NASDAQ:DDOG) is a cloud-based monitoring and analytics platform that provides real-time insights into an organization’s IT infrastructure, applications, and logs. The company’s software integrates multiple tools into a single platform, including email marketing, social media management, customer relationship management (CRM), and analytics.
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1731e35a-6e53-46f2-9c19-72cd18f3a1f9
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718290.0
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2023-04-20 00:00:00 UTC
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3 Growth Stocks That Could Explode in Value This Year
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DDOG
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https://www.nasdaq.com/articles/3-growth-stocks-that-could-explode-in-value-this-year
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amidst the bearish storm that raged through last year, there’s a lot of money to be made with growth stocks to buy.
Growth stocks took a hammering last year, navigating choppy waters of record-high inflation and interest rates. Down significantly from their historical highs, it’s perhaps the right time to revisit the best growth stocks to buy.
The stock market this year has been building a decent head of steam, with hopes of a more dovish policy from the Federal Reserve from now on.
Following multiple rate hikes last year and encouraging inflation data, it seems the worst is over for the equity market. That said, investing in relatively risky growth stocks could promise exceptional returns.
Let’s look at three growth stocks poised to deliver hefty returns over the long run.
DDOG Datadog $70.34
FVRR Fiverr International $35.85
SQM Sociedad Quimica y Minera de Chile $80.27
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) is essentially a trailblazer in the cloud monitoring and analytics space, offering a robust platform that allows companies to delve deep into their IT infrastructure, applications, and logs.
Its SaaS solutions allow for the effective gathering, correlation, and scrutinizing of data from various sources.
Datadog has experienced meteoric revenue growth over the past few years, with sales growing from $198 million in 2018 to a spectacular $1.7 billion last year.
In its most recent quarter, customers with annual sales over $1 million were up 47% from the prior-year period. Also, customers with $100,000 were up 38% in the same period.
Analysts expect the firm to surpass the $2 billion mark this year, making it a standout player. Its stock is trading at more than a 60% discount to its historical price-to-sales ratio of 12.6 times.
Fiverr International (FVRR)
Source: Temitiman / Shutterstock.com
Fiverr International (NYSE:FVRR) is a leading online freelancer marketplace that has soared in tandem with the burgeoning gig economy.
Its top-line growth has surged over 50% over the past five years and still has a massive growth runway ahead. Estimates suggest that the global freelancer marketplace could reach a staggering $18.3 billion by 2031.
Fiverr is just scratching the surface with its $337 million revenue base.
Fiverr’s recent results have taken a hit following cost-cutting measures in professional services. However, the resurgence of the gig economy over the long term is in line with the pandemic-driven step-changes.
Despite a relatively tough fourth quarter, its spending-per-buyer rose to $262 from $242 last year. With a low churn rate and relentless marketing efforts, expect Fiverr to continue expanding its market share and amplifying its presence in the gig economy.
Sociedad Quimica y Minera de Chile (SQM)
Source: madamF / Shutterstock.com
Sociedad Quimica y Minera de Chile (NYSE:SQM) is a leading Chilean specialty chemicals player that has effectively positioned itself as a lithium giant. It operated a hyper-growth business, having grown its sales from $1.9 billion in 2019 to a dumbfounding $10.7 billion last year.
Lithium sales have grown by double and triple-digit margins in recent quarters, making it a force to be reckoned with in its sector. SQM boasts an A-graded profitability profile, with EBITDA growth at roughly 70% over the past five years.
SQM benefited from a robust pricing environment last year, which led to a jaw-dropping 585% increase in earnings per share. Also, it posted an eye-watering 730% increase in free cash flows. With Chile’s abundant lithium reserves and a business-friendly environment, SQM remains in a pole position to continue its remarkable performance over the long run.
Also, SQM stock trades at just two times forward sales estimates, more than 50% lower than its 5-year average. Analysts at Tipranks forecast a 44% upside in the stock’s value from current levels.
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.
The post 3 Growth Stocks That Could Explode in Value This Year 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.
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DDOG Datadog $70.34 FVRR Fiverr International $35.85 SQM Sociedad Quimica y Minera de Chile $80.27 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is essentially a trailblazer in the cloud monitoring and analytics space, offering a robust platform that allows companies to delve deep into their IT infrastructure, applications, and logs. The stock market this year has been building a decent head of steam, with hopes of a more dovish policy from the Federal Reserve from now on. With Chile’s abundant lithium reserves and a business-friendly environment, SQM remains in a pole position to continue its remarkable performance over the long run.
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DDOG Datadog $70.34 FVRR Fiverr International $35.85 SQM Sociedad Quimica y Minera de Chile $80.27 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is essentially a trailblazer in the cloud monitoring and analytics space, offering a robust platform that allows companies to delve deep into their IT infrastructure, applications, and logs. Fiverr International (FVRR) Source: Temitiman / Shutterstock.com Fiverr International (NYSE:FVRR) is a leading online freelancer marketplace that has soared in tandem with the burgeoning gig economy. Sociedad Quimica y Minera de Chile (SQM) Source: madamF / Shutterstock.com Sociedad Quimica y Minera de Chile (NYSE:SQM) is a leading Chilean specialty chemicals player that has effectively positioned itself as a lithium giant.
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DDOG Datadog $70.34 FVRR Fiverr International $35.85 SQM Sociedad Quimica y Minera de Chile $80.27 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is essentially a trailblazer in the cloud monitoring and analytics space, offering a robust platform that allows companies to delve deep into their IT infrastructure, applications, and logs. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Amidst the bearish storm that raged through last year, there’s a lot of money to be made with growth stocks to buy. Datadog has experienced meteoric revenue growth over the past few years, with sales growing from $198 million in 2018 to a spectacular $1.7 billion last year.
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DDOG Datadog $70.34 FVRR Fiverr International $35.85 SQM Sociedad Quimica y Minera de Chile $80.27 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is essentially a trailblazer in the cloud monitoring and analytics space, offering a robust platform that allows companies to delve deep into their IT infrastructure, applications, and logs. Following multiple rate hikes last year and encouraging inflation data, it seems the worst is over for the equity market. Datadog has experienced meteoric revenue growth over the past few years, with sales growing from $198 million in 2018 to a spectacular $1.7 billion last year.
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4f973669-a433-45d5-a9ed-58b7663b3de2
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718291.0
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2023-04-20 00:00:00 UTC
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3 Great Growth Stocks to Invest in Now
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DDOG
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https://www.nasdaq.com/articles/3-great-growth-stocks-to-invest-in-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is a healthy debate right now about whether growth stocks are on the upswing. On the one hand, growth names have rallied sharply to start 2023. On the other, the factors that sunk growth shares in 2022 remain present.
The tech industry is facing layoffs, revenue growth is down, and higher interest rates continue to cause slumping valuations across the industry.
The thing to keep in mind, however, is that there are some great growth stocks that can power through. Regardless of whether we’re in a new bull market or merely a pause in the tech industry’s downturn, there are some firms that are still thriving.
These three best growth stocks to buy now are posting sizzling revenue growth and are already profitability as well. This means that these companies can continue to build their businesses without worrying about running out of cash.
While the tech industry has its challenges, these three growth stocks should come out stronger regardless.
DDOG Datadog $70.67
SNOW Snowflake $145.16
CXM Sprinklr $12.86
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. Its platform allows information technology professionals to monitor all of a company’s tech infrastructure from one place.
Datadog helps manage logs, databases, user experience, network and security, and more.
The revolutionary thing about Datadog is that it is an all-in-one tool. Historically, different parts of the network would be in different silos and things fell through the cracks. Particularly in this age of increased hacking and cybercrime, Datadog provides its clients with an invaluable service.
Market demand for Datadog’s solutions has been tremendous. The firm’s revenues have skyrocketed from $198 million in 2018 to $1.7 billion last year. Analysts expect that to jump to $2.1 billion this year and $2.7 billion in 2024.
Datadog is already profitable, and earnings should jump significantly in coming years. Given the necessity of monitoring a firm’s IT systems, Datadog has grown even during this tech industry downturn. This positions the company for a boom once the overall sector picks back up.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
Snowflake (NYSE:SNOW) is another cloud company that has revolutionized its category.
The firm’s solutions for data storage, management, and analysis have attracted a gigantic customer base. Revenues are up from $97 million for fiscal year 2019 to an estimated $2.9 billion for the current year.
Despite the slowdown in the tech industry, Snowflake hasn’t seen any ill effects. Analysts expect a shocking 40% top-line revenue growth rate this year, and another 37% growth on top of that next year from Snowflake.
The firm is profitable. It also has more than $12/share of cash on its balance sheet, giving it tremendous flexibility in running its operations and seeking growth opportunities during this current industry slowdown.
All this positions Snowflake as a company that can keep firing on all cylinders, taking market share and cementing its position as the future leader in the cloud data space for many years to come.
Sprinklr (CXM)
Source: Shutterstock
Sprinklr (NYSE:CXM) is a SaaS company focused on customer relationships and content marketing. Specifically, it provides tools and applications to companies to manage their brands and ad campaigns online.
An example would be on Twitter, where Sprinklr helps its clients monitor their brands, respond to customer feedback, track keywords, and more.
This sort of sentiment monitoring can be vital for helping brands manage their image across many platforms, ad campaigns, and channels.
Sprinklr has been booming, with revenues jumping from $324 million in fiscal year 2020 to an estimated $712 million for the current year. Sprinklr has already reached profitability now, putting it ahead of many peers.
As for 2023, Sprinklr is working to bring over new clients from Hootsuite and other rivals. Any incremental success in bringing in additional business should help shares move higher. For now, CXM stock sells for less than 6 times revenues, which is a fine price for a fast-growing already profitable SaaS firm.
On the date of publication, Ian Bezek held a long position in CXM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
The post 3 Great Growth Stocks to Invest in Now 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.
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DDOG Datadog $70.67 SNOW Snowflake $145.16 CXM Sprinklr $12.86 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. It also has more than $12/share of cash on its balance sheet, giving it tremendous flexibility in running its operations and seeking growth opportunities during this current industry slowdown. This sort of sentiment monitoring can be vital for helping brands manage their image across many platforms, ad campaigns, and channels.
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DDOG Datadog $70.67 SNOW Snowflake $145.16 CXM Sprinklr $12.86 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. Snowflake (SNOW) Source: Sundry Photography / Shutterstock Snowflake (NYSE:SNOW) is another cloud company that has revolutionized its category. Sprinklr (CXM) Source: Shutterstock Sprinklr (NYSE:CXM) is a SaaS company focused on customer relationships and content marketing.
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DDOG Datadog $70.67 SNOW Snowflake $145.16 CXM Sprinklr $12.86 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. Analysts expect a shocking 40% top-line revenue growth rate this year, and another 37% growth on top of that next year from Snowflake. Sprinklr has been booming, with revenues jumping from $324 million in fiscal year 2020 to an estimated $712 million for the current year.
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DDOG Datadog $70.67 SNOW Snowflake $145.16 CXM Sprinklr $12.86 Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a software-as-a-service (SaaS) company focused on observability. The firm is profitable. Sprinklr has been booming, with revenues jumping from $324 million in fiscal year 2020 to an estimated $712 million for the current year.
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f6e91ce4-60ec-4ffa-800c-96c5a0da947f
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718292.0
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2023-04-20 00:00:00 UTC
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2 Growth Stocks to Buy Before They Soar 82% and 113%, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-growth-stocks-to-buy-before-they-soar-82-and-113-according-to-wall-street
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The broad-based S&P 500 and the tech-heavy Nasdaq Composite fell into bear market territory more than a year ago, and the recession fears behind that drawdown have only become more intense.
But Wall Street is still bullish on Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Most analysts recommend both stocks right now, and some expect shareholders to see big gains in the next 12 months.
According to CNN Money, the highest price target on Datadog is $127 per share, which implies 82% upside from its current price. The highest target on Zscaler is $225 per share, or 113% upside from its current price.
Here's what investors should know about these growth stocks.
1. Datadog
Datadog provides observability software to development, operations, and security teams. Its platform includes more than a dozen applications that give businesses real-time visibility across their IT ecosystems, helping them ensure the performance and security of crucial applications and infrastructure.
Datadog simplifies deployment, and its artificial intelligence (AI) engine automates anomaly detection, root-cause analysis, and other tasks to accelerate problem resolution.
The company's greatest asset is its capacity for innovation. In 2018, it became the first software vendor to unify the three pillars of observability (i.e., metrics, traces, and logs).
Since then, the company branched into new areas like user-experience monitoring, developer testing, and cybersecurity, and it consistently wins praise from industry experts. IT consultancy Gartner recently listed Datadog as a leader in application-performance monitoring and observability, citing its strong portfolio and powerful AI engine. Similarly, Forrester Research recognized the company as a leader in AI for IT operations.
Datadog reported strong results last year. Revenue rose 63% to $1.6 billion, and cash flow from operations jumped 46% to $418 million.
The company should also be able to maintain that momentum for years to come. Migration to the cloud and other digital-transformation projects are making IT more complicated, creating a need for observability software.
Datadog is particularly well positioned to benefit with the broad scope of its platform. It provides businesses with all the tools necessary to keep their IT performing and secure, rather than focusing on a single aspect of the observability market, like some vendors.
Datadog believes its addressable market will reach $62 billion by 2026, and with shares trading at 13.5 times sales -- well below the three-year average of 34.3 -- there is plenty of upside for patient shareholders.
But the key word is patient. There is no guarantee of an 82% return this year. Investors should plan to hold this stock for at least three to five years.
2. Zscaler
Zscaler provides solutions for network security, and cloud workload protection. Its platform -- known as a security service edge (SSE) -- improves on legacy network security solutions by inspecting traffic and enforcing zero-trust policies in the cloud rather than in corporate data centers. That ultimately allows businesses to protect and connect their workers, applications, and Internet of Things devices more effectively, without the cost or complexity of on-premises security.
Zscaler runs the largest network security cloud in the world. Its AI engine learns from 300 billion security signals each day, and that unparalleled scale allows its SSE platform to provide better threat protection than other vendors, according to management.
It also creates a powerful flywheel effect. Threats identified for one client are blocked for every other client across the platform, meaning each new customer creates value for every other customer.
Zscaler delivered solid financial results over the past year, especially with businesses spending more cautiously. Revenue rose 57% to $1.3 billion, and cash from operations jumped 53% to $398 million. However, the company has hardly scratched the surface of its $72 billion serviceable market, leaving plenty of potential upside, and shareholders have good reason to be optimistic.
IT consultancy Gartner has recognized Zscaler as a leader in the SSE industry, and believes that businesses' adoption of SSE products will reach 80% by 2025, up from 20% in 2021. That tailwind should help Zscaler make headway on its significant market opportunity.
Currently, the stock trades at around 11 times sales, near its cheapest valuation in the last five years. This growth stock is worth buying at that price, but only for patient investors who plan to hold for at least three to five years. The odds of a triple-digit return in the next year are remote given the uncertain economy.
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Trevor Jennewine has positions in Zscaler. The Motley Fool has positions in and recommends Datadog and Zscaler. 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.
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But Wall Street is still bullish on Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog simplifies deployment, and its artificial intelligence (AI) engine automates anomaly detection, root-cause analysis, and other tasks to accelerate problem resolution. Datadog believes its addressable market will reach $62 billion by 2026, and with shares trading at 13.5 times sales -- well below the three-year average of 34.3 -- there is plenty of upside for patient shareholders.
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But Wall Street is still bullish on Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog Datadog provides observability software to development, operations, and security teams. Datadog believes its addressable market will reach $62 billion by 2026, and with shares trading at 13.5 times sales -- well below the three-year average of 34.3 -- there is plenty of upside for patient shareholders.
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But Wall Street is still bullish on Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog Datadog provides observability software to development, operations, and security teams. 10 stocks we like better than Datadog When our analyst team has a stock tip, it can pay to listen.
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But Wall Street is still bullish on Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog Datadog provides observability software to development, operations, and security teams. Datadog believes its addressable market will reach $62 billion by 2026, and with shares trading at 13.5 times sales -- well below the three-year average of 34.3 -- there is plenty of upside for patient shareholders.
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5921bae7-1def-4c52-bad3-6f276166bd90
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718293.0
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2023-04-19 00:00:00 UTC
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Datadog (DDOG) Dips More Than Broader Markets: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-dips-more-than-broader-markets%3A-what-you-should-know-5
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Datadog (DDOG) closed at $69.56 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.97%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 0.47% in the past month. In that same time, the Computer and Technology sector gained 4.02%, while the S&P 500 gained 6.23%.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. This is expected to be May 4, 2023. In that report, analysts expect Datadog to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Our most recent consensus estimate is calling for quarterly revenue of $468.13 million, up 28.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.05 per share and revenue of $2.08 billion, which would represent changes of +7.14% and +24.36%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Datadog is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 66.56. Its industry sports an average Forward P/E of 42.36, so we one might conclude that Datadog is trading at a premium comparatively.
Also, we should mention that DDOG has a PEG ratio of 1.67. 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 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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.
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Datadog (DDOG) closed at $69.56 in the latest trading session, marking a -0.64% move from the prior day. Also, we should mention that DDOG has a PEG ratio of 1.67. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Datadog (DDOG) closed at $69.56 in the latest trading session, marking a -0.64% move from the prior day. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, we should mention that DDOG has a PEG ratio of 1.67.
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Datadog (DDOG) closed at $69.56 in the latest trading session, marking a -0.64% move from the prior day. Also, we should mention that DDOG has a PEG ratio of 1.67. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Datadog (DDOG) closed at $69.56 in the latest trading session, marking a -0.64% move from the prior day. Also, we should mention that DDOG has a PEG ratio of 1.67. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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9e82a010-83c8-4804-8cef-281c4eec92c8
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718294.0
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2023-04-18 00:00:00 UTC
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Piper Sandler Initiates Coverage of Datadog, Inc. (DDOG) with Neutral Recommendation
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DDOG
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https://www.nasdaq.com/articles/piper-sandler-initiates-coverage-of-datadog-inc.-ddog-with-neutral-recommendation
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Fintel reports that on April 18, 2023, Piper Sandler initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation.
Analyst Price Forecast Suggests 47.95% Upside
As of April 6, 2023, the average one-year price target for Datadog, Inc. is $103.33. The forecasts range from a low of $70.70 to a high of $133.35. The average price target represents an increase of 47.95% from its latest reported closing price of $69.84.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 35.04%. The projected annual non-GAAP EPS is $1.20.
What are Other Shareholders Doing?
MMLG - First Trust Multi-Manager Large Growth ETF holds 6K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 5K shares, representing an increase of 16.34%. The firm increased its portfolio allocation in DDOG by 12.29% over the last quarter.
FMEIX - Fidelity Mid Cap Enhanced Index Fund holds 15K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 69K shares, representing a decrease of 374.55%. The firm decreased its portfolio allocation in DDOG by 85.91% over the last quarter.
Cubist Systematic Strategies holds 283K shares representing 0.09% ownership of the company. In it's prior filing, the firm reported owning 166K shares, representing an increase of 41.48%. The firm increased its portfolio allocation in DDOG by 46.80% over the last quarter.
Country Trust Bank holds 354K shares representing 0.11% ownership of the company.
EQ ADVISORS TRUST - EQ holds 6K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 6K shares, representing an increase of 6.36%. The firm decreased its portfolio allocation in DDOG by 19.11% over the last quarter.
What is the Fund Sentiment?
There are 1284 funds or institutions reporting positions in Datadog, Inc.. This is a decrease of 18 owner(s) or 1.38% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.52%, a decrease of 7.04%. Total shares owned by institutions decreased in the last three months by 0.65% to 263,329K shares.
The put/call ratio of DDOG is 0.58, indicating a bullish outlook.
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.
See all Datadog, Inc. regulatory filings.
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.
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Fintel reports that on April 18, 2023, Piper Sandler initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 12.29% over the last quarter. The firm decreased its portfolio allocation in DDOG by 85.91% over the last quarter.
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Fintel reports that on April 18, 2023, Piper Sandler initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 12.29% over the last quarter. The firm decreased its portfolio allocation in DDOG by 85.91% over the last quarter.
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Fintel reports that on April 18, 2023, Piper Sandler initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 12.29% over the last quarter. The firm decreased its portfolio allocation in DDOG by 85.91% over the last quarter.
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Fintel reports that on April 18, 2023, Piper Sandler initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 12.29% over the last quarter. The firm decreased its portfolio allocation in DDOG by 85.91% over the last quarter.
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be4b2fd5-4553-49ec-99ab-ea27b36b9938
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718295.0
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2023-04-18 00:00:00 UTC
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Guru Fundamental Report for DDOG
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DDOG
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https://www.nasdaq.com/articles/guru-fundamental-report-for-ddog-4
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nan
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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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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.
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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.
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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).
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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).
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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.
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e6202e22-456a-4af7-9bee-6f53e0ccccde
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718296.0
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2023-04-14 00:00:00 UTC
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Datadog (DDOG) Announces Bottomline as a Partner Network Member
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https://www.nasdaq.com/articles/datadog-ddog-announces-bottomline-as-a-partner-network-member
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Datadog DDOG recently announced that it has integrated Bottomline in its Marketplace. Datadog, a monitoring and security platform for cloud applications, has added value by integrating Bottomline to provide financial technology to its Marketplace.
Datadog consolidates traces, logs and metrics to help firms boost cloud environment, track potential problems and provide excellent digital experiences to its customers. Datadog Marketplace is a meeting point for customers and unique technology integrations that enable flexibility and customization.
Bottomline’s Record & Replay is an award-winning monitoring solution that helps financial institutes and organizations defend against threats from external and internal users of the system. The solution’s security records user behavior across the organization in real time protecting against data leakage and threats. Record & Replay is now available to Datadog customers, helping them monitor 3270/5250 mainframe users by network traffic.
The integration in Datadog’s Marketplace differentiates Bottomline as a Datadog Partner Network member. Bottomline will also help customers evaluate and integrate its technology at various levels productively.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog Faces Stiff Competition in Application Development
Datadog helps to monitor cloud-scale applications to provide monitoring of services, tools and databases by a SaaS-based data analytic platform.
It has a market share of 1.37% in the application development market, which is one of the lowest in the market. Datadog recently launched a Marketplace to compete with its competitors.
This Marketplace is a platform where Datadog Technology Partners list its software for Datadog users. Some of the prominent partners include rapdev, BigPanda, ozcode and many more.
The Zacks Consensus Estimate for DDOG’s first-quarter 2023 earnings is pegged at 23 cents per share, indicating a year-over-year decline of 4.17%. The Zacks Consensus Estimate for revenues in 2023 is pegged at $2.08 billion, indicating year-over-year growth of 24.36%.
Shares of this Zacks Rank #3 (Hold) company have decreased 49.9% in the past year compared with the Zacks Computer and Technology sector’s fall of 8.2% in the same period.
Datadog faces competition from giants like Adobe ADBE, Microsoft’s MSFT Azure and JIRA Software owned by Atlassian TEAM.
Adobe helps enterprises creating creative software and multimedia. It recently expanded to create digital marketing software also. It is a market leader in application development market with a market share of 64.23%.
Microsoft Azure helps businesses enable critical applications with higher performance-price ratio on the service platforms on a pay-as-you-go basis. It has the second highest market share of 14.87% in the application development market.
Atlassian’s JIRA Software helps organizations track and organize issues, follow team activities and assign work. It is a tracker for team planning and building new products. It has a market share of 4.85% in the application development market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Atlassian Corporation PLC (TEAM) : 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.
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Datadog DDOG recently announced that it has integrated Bottomline in its Marketplace. The Zacks Consensus Estimate for DDOG’s first-quarter 2023 earnings is pegged at 23 cents per share, indicating a year-over-year decline of 4.17%. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG recently announced that it has integrated Bottomline in its Marketplace. The Zacks Consensus Estimate for DDOG’s first-quarter 2023 earnings is pegged at 23 cents per share, indicating a year-over-year decline of 4.17%.
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Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG recently announced that it has integrated Bottomline in its Marketplace. The Zacks Consensus Estimate for DDOG’s first-quarter 2023 earnings is pegged at 23 cents per share, indicating a year-over-year decline of 4.17%.
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Datadog DDOG recently announced that it has integrated Bottomline in its Marketplace. The Zacks Consensus Estimate for DDOG’s first-quarter 2023 earnings is pegged at 23 cents per share, indicating a year-over-year decline of 4.17%. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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718297.0
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2023-04-13 00:00:00 UTC
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Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-outpaces-stock-market-gains%3A-what-you-should-know-3
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In the latest trading session, Datadog (DDOG) closed at $68.08, marking a +1.86% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.33%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 1.04% over the past month, lagging the Computer and Technology sector's gain of 8.77% and the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. In that report, analysts expect Datadog to post earnings of $0.23 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $468.13 million, up 28.95% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.05 per share and revenue of $2.08 billion. These totals would mark changes of +7.14% and +24.36%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog currently has a Zacks Rank of #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 63.56. This represents a premium compared to its industry's average Forward P/E of 41.1.
We can also see that DDOG currently has a PEG ratio of 1.6. 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 was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
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In the latest trading session, Datadog (DDOG) closed at $68.08, marking a +1.86% move from the previous day. We can also see that DDOG currently has a PEG ratio of 1.6. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 $68.08, marking a +1.86% move from the previous day. We can also see that DDOG currently has a PEG ratio of 1.6.
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In the latest trading session, Datadog (DDOG) closed at $68.08, marking a +1.86% move from the previous day. We can also see that DDOG currently has a PEG ratio of 1.6. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Datadog (DDOG) closed at $68.08, marking a +1.86% move from the previous day. We can also see that DDOG currently has a PEG ratio of 1.6. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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9df73dbe-fa62-4a98-8786-c1880a9300de
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718298.0
|
2023-04-13 00:00:00 UTC
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June 2nd Options Now Available For Datadog
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DDOG
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https://www.nasdaq.com/articles/june-2nd-options-now-available-for-datadog
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nan
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nan
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Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the June 2nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new June 2nd contracts and identified one put and one call contract of particular interest.
The put contract at the $67.00 strike price has a current bid of $5.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $67.00, but will also collect the premium, putting the cost basis of the shares at $61.75 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $68.44/share today.
Because the $67.00 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 7.84% return on the cash commitment, or 57.20% 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 $67.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $69.00 strike price has a current bid of $6.10. If an investor was to purchase shares of DDOG stock at the current price level of $68.44/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $69.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.73% if the stock gets called away at the June 2nd 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 $69.00 strike highlighted in red:
Considering the fact that the $69.00 strike represents an approximate 1% 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 8.91% boost of extra return to the investor, or 65.06% 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 $68.44) to be 70%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
NPCT Insider Buying
FBRT Dividend Growth Rate
BIGC Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% 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 June 2nd expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% 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 June 2nd expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% 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 June 2nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new June 2nd contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new June 2nd 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 $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% 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 June 2nd expiration.
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ed1891d6-ffbd-418b-b9da-1ef6e4f8d070
|
718299.0
|
2023-04-12 00:00:00 UTC
|
Notable Wednesday Option Activity: WDAY, GOOGL, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-wday-googl-ddog
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nan
|
nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Workday Inc (Symbol: WDAY), where a total volume of 12,728 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 64.9% of WDAY's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $195 strike call option expiring April 14, 2023, with 6,862 contracts trading so far today, representing approximately 686,200 underlying shares of WDAY. Below is a chart showing WDAY's trailing twelve month trading history, with the $195 strike highlighted in orange:
Alphabet Inc (Symbol: GOOGL) saw options trading volume of 236,964 contracts, representing approximately 23.7 million underlying shares or approximately 63.6% of GOOGL's average daily trading volume over the past month, of 37.2 million shares. Especially high volume was seen for the $108 strike call option expiring April 14, 2023, with 21,634 contracts trading so far today, representing approximately 2.2 million underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $108 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) options are showing a volume of 29,906 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 60.3% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Particularly high volume was seen for the $50 strike put option expiring May 26, 2023, with 3,072 contracts trading so far today, representing approximately 307,200 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for WDAY options, GOOGL options, or DDOG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Utilities Stocks Hedge Funds Are Selling
CERT Historical Stock Prices
BJK 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.
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Particularly high volume was seen for the $50 strike put option expiring May 26, 2023, with 3,072 contracts trading so far today, representing approximately 307,200 underlying shares of DDOG. Below is a chart showing GOOGL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 29,906 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 60.3% of DDOG's average daily trading volume over the past month, of 5.0 million shares.
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Below is a chart showing GOOGL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 29,906 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 60.3% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Particularly high volume was seen for the $50 strike put option expiring May 26, 2023, with 3,072 contracts trading so far today, representing approximately 307,200 underlying shares of DDOG.
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Below is a chart showing GOOGL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 29,906 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 60.3% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Particularly high volume was seen for the $50 strike put option expiring May 26, 2023, with 3,072 contracts trading so far today, representing approximately 307,200 underlying shares of DDOG.
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Particularly high volume was seen for the $50 strike put option expiring May 26, 2023, with 3,072 contracts trading so far today, representing approximately 307,200 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for WDAY options, GOOGL options, or DDOG options, visit StockOptionsChannel.com. Below is a chart showing GOOGL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 29,906 contracts thus far today.
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253102ab-e8f6-4266-9724-94a15446b475
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