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718300.0
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2023-04-12 00:00:00 UTC
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1 Growth Stock Down 67% You'll Regret Not Buying on the Dip
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DDOG
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https://www.nasdaq.com/articles/1-growth-stock-down-67-youll-regret-not-buying-on-the-dip
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nan
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nan
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Interestingly, this growth stock demonstrates several positive qualities that investors can benefit from. This video will discuss those attributes as reasons why this growth stock is an excellent buy right now.
*Stock prices used were the afternoon prices of April 9, 2023. The video was published on April 11, 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 10, 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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Interestingly, this growth stock demonstrates several positive qualities that investors can benefit from. This video will discuss those attributes as reasons why this growth stock is an excellent buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Interestingly, this growth stock demonstrates several positive qualities that investors can benefit from. 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 10, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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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. See the 10 stocks *Stock Advisor returns as of April 10, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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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! See the 10 stocks *Stock Advisor returns as of April 10, 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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1cc341a9-5ce1-4964-8ab6-0d6749679e12
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718301.0
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2023-04-11 00:00:00 UTC
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Prediction: 3 Stocks That Will Turn $250,000 Into $1 Million by 2030
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DDOG
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https://www.nasdaq.com/articles/prediction%3A-3-stocks-that-will-turn-%24250000-into-%241-million-by-2030
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nan
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nan
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Last year's 33% plunge in the Nasdaq-100 technology index was a reminder to investors that focusing on the long term is the best way to generate positive returns in the stock market.
Since the inception of the Nasdaq-100 in 1985, it has delivered a positive annual return 81% of the time. There's no perfect time to buy; however, the index has only declined in consecutive years on one occasion -- during the dot-com bust from 2000 to 2002 -- which suggests buying technology stocks after a down year tends to work really well.
With that in mind, let's explore three stocks with the potential to generate a fourfold return by the end of this decade. That means any one of them -- or a combination of all three -- could turn a $250,000 investment into $1 million. But you don't need a starting balance that large to reap the benefits. These stocks could lead a growth-oriented portfolio of any size.
1. Uber Technologies
Uber Technologies (NYSE: UBER) is the leading ride-hailing (mobility) company globally, and one of the top food delivery providers, too. If you haven't used one of Uber's platforms before, chances are you know someone who has because they serve 131 million people every month.
After a two-year hiatus due to the pandemic, Uber's mobility segment is once again its largest driver of bookings, overtaking food delivery in the fourth quarter of 2022. Last year was Uber's biggest year ever -- customers booked $115 billion worth of services, and in Q4, they were taking an average of 1 million trips per hour.
But Uber never stands still. It's working on growing its Uber Freight brand, which has already become the largest logistics network in the world; think ride hailing but for commercial delivery. It has already attracted 200,000 users with $17 billion in freight under management, but the company estimates the U.S. trucking industry alone presents an $884 billion opportunity.
Uber stock currently trades at a price to sales (P/S) ratio of 2, based on $31.8 billion in 2022 revenue and its $62.8 billion market valuation. Assuming that P/S ratio remains constant, the company will have to grow its revenue by 21.9% per year between now and 2030 for its stock to deliver a fourfold return.
History suggests it's more than capable. Uber generated $11.2 billion in revenue in 2018, so it grew at a compound annual rate of 29.6% over the last four years, which is comfortably above the threshold.
But as the effects of the pandemic wore off, Uber grew its 2022 revenue by a whopping 82% compared to 2021, which is significantly above its four-year average.
2. Datadog
Cloud computing has been nothing short of revolutionary for businesses. The technology allows them to create digital sales channels for consumers (like websites and mobile applications), and it also streamlines their operations, from banking to bookkeeping to employee communication. But it does come with challenges, and that's where Datadog (NASDAQ: DDOG) comes in.
While the cloud can provide a business with the opportunity to sell to a global audience, one downside is that those customers can very quickly and easily shop with a competitor. As a result, the business needs to ensure its online infrastructure is operating at peak performance around the clock, in every geographic location, and for every customer. Monitoring that manually can be an impossible task, and technical glitches often go unnoticed until sales are lost.
Datadog's cloud monitoring platform is designed to quickly alert organizations to technical problems across their entire cloud network, from the back end to the customer-facing sales channels, before they infiltrate the user experience.
The company serves a range of industries including retail, gaming, financial services, and entertainment. Its platform is popular with large organizations given they tend to have more complex cloud networks, and as a result, it had amassed 2,780 customers spending at least $100,000 per year by the end of 2022. And 317 of them were spending at least $1 million per year, up 47% from 2021.
Datadog generated $198.1 million in revenue during 2018, which had grown to a whopping $1.68 billion in 2022. That's a compound annual growth rate of 70.5%. Remember, the company only needs to grow its revenue by 21.9% each year until 2030 for its stock to see a fourfold gain (assuming its P/S ratio remains constant), so it could slow down significantly and still meet the threshold.
3. Zscaler
Cybersecurity has become one of the most critical industries in the world. The abovementioned rush to cloud computing means organizations are storing their valuable assets and applications online, making the attack surface larger than ever before. A report by McKinsey & Company suggests the corporate sector spent $168 billion on cybersecurity in 2022, but that it should be spending as much as $2 trillion.
Companies wanting to protect critical infrastructure from malicious access have probably considered zero-trust security leader Zscaler (NASDAQ: ZS). Say, for example, a company has a global workforce with many of its employees accessing their jobs remotely. Without physically watching each staff member sign in, it's impossible to know it's really them, or if their login credentials have instead been compromised.
Zscaler treats all sign-in attempts as hostile. Rather than just assessing their username and password, it also analyzes the device being used, and the person's location, to verify it's an authorized user. But it goes a step further; once employees are logged in, they can only access the applications assigned to them, so even if a hacker successfully breaches the login process, they can't compromise the entire network by jumping to other valuable assets.
Zscaler's annual revenue has grown at a compound annual rate of 54.7% over the last four years, from $190.1 million in 2018 to $1.09 billion in 2022. That's more than double the 21.9% rate it needs (if its P/S ratio remains constant), and with the cybersecurity industry continually growing in importance, there might even be an opportunity for Zscaler's revenue to accelerate in the future.
Plus, Zscaler stock is down 71% from its all-time high amid the broader sell-off in the technology sector, so by simply recovering those losses, it would generate the majority of the gain it needs to turn $250,000 into $1 million by 2030.
10 stocks we like better than Uber Technologies
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 Uber Technologies 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 March 8, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, Uber Technologies, 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.
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But it does come with challenges, and that's where Datadog (NASDAQ: DDOG) comes in. Remember, the company only needs to grow its revenue by 21.9% each year until 2030 for its stock to see a fourfold gain (assuming its P/S ratio remains constant), so it could slow down significantly and still meet the threshold. But it goes a step further; once employees are logged in, they can only access the applications assigned to them, so even if a hacker successfully breaches the login process, they can't compromise the entire network by jumping to other valuable assets.
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But it does come with challenges, and that's where Datadog (NASDAQ: DDOG) comes in. Uber Technologies Uber Technologies (NYSE: UBER) is the leading ride-hailing (mobility) company globally, and one of the top food delivery providers, too. Datadog's cloud monitoring platform is designed to quickly alert organizations to technical problems across their entire cloud network, from the back end to the customer-facing sales channels, before they infiltrate the user experience.
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But it does come with challenges, and that's where Datadog (NASDAQ: DDOG) comes in. Uber Technologies Uber Technologies (NYSE: UBER) is the leading ride-hailing (mobility) company globally, and one of the top food delivery providers, too. Uber stock currently trades at a price to sales (P/S) ratio of 2, based on $31.8 billion in 2022 revenue and its $62.8 billion market valuation.
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But it does come with challenges, and that's where Datadog (NASDAQ: DDOG) comes in. Uber Technologies Uber Technologies (NYSE: UBER) is the leading ride-hailing (mobility) company globally, and one of the top food delivery providers, too. Datadog generated $198.1 million in revenue during 2018, which had grown to a whopping $1.68 billion in 2022.
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a4586b31-38e5-4331-b63c-9756740aaca2
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718302.0
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2023-04-10 00:00:00 UTC
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The 7 Best Growth Stocks to Buy for 2023
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DDOG
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https://www.nasdaq.com/articles/the-7-best-growth-stocks-to-buy-for-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
So far, 2023 has been great year for growth stocks. For one, it seems that the Federal Reserve’s rate hiking campaign is approaching its limits. Two, the banking system has started to stumble amid sharply higher interest rates. While this has been rough for bank investors, we’re now seeing a rotation out of financials and back into growth stocks. From here, if inflation starts to come down and interest rates reverse course, we could see a meaningful recovery in growth stocks.
In any case, many growth stocks are priced for attractive returns after steep declines in 2022. In fact. these seven growth stocks, in particular, should offer investors a favorable outlook for the rest of 2023.
DDOG Datadog $65.52
V Visa $225.93
U Unity Software $30.66
BROS Dutch Bros $32.57
TOST Toast $16.87
TXN Texas Instruments $179.22
CNXC Concentrix $111.41
Datadog (DDOG)
Source: Vova Shevchuk / Shutterstock.com
Datadog (NASDAQ:DDOG) operates a cloud-based platform that enables firms to manage their monitoring and security functions with just one product.
With Datadog, its clients can monitor and secure their servers, workflows, databases, and other IT hardware from just one application — a stark contrast to traditional systems which are compartmentalized. The company also gets rid of blind spots and vulnerabilities within the enterprise, making it easier to monitor and secure just about everything. As hacking and cyberwarfare are pressing concerns, firms like Datadog should enjoy a strong tailwind in coming years.
Datadog has been one of the industry’s most remarkable success stories. The company has grown revenues from a modest $101 million in 2017 to $1.7 billion in its latest fiscal year. Analysts expect the strong growth to continue, with Datadog set to top $2 billion in sales this year.
Datadog is already profitable, which puts it ahead of many of its peers. DDOG stock is down more than 50% over the past year, making shares a far more reasonable bargain at today’s price.
Visa (V)
Source: Epic Cure / Shutterstock
Visa (NYSE:V) along with Mastercard (NYSE:MA) have a tremendous business model which reliably earns some of the highest EBITDA profit margins of any S&P 500 constituent companies.
What makes Visa’s business model so great is that it doesn’t take credit risk. Rather, the bank that issues a credit card shoulders the risk if a client fails to pay. Visa, by contrast, is paid on transactions. As volumes go up, so do Visa’s profits. With inflation setting in globally, that leads to an increase in Visa’s business as well as average transaction size goes up.
Visa was hampered over the past few years due to the pandemic. It charges much higher fees on international cross-border transactions, which were necessarily limited in recent times. With global travel roaring back, however, Visa’s next leg up should be upon us. Meanwhile, V stock has been flat over the past two years, making for a more attractive entry point today.
Unity Software (U)
Source: Zurijeta / Shutterstock.com
Unity Software (NYSE:U) is the operator of a leading graphics engine. Game developers use Unity as the framework for designing video games. All because the company is highly flexible, allowing developers to build a game that will work cross-platform across PC, consoles, mobile, and even augmented and virtual reality.
Reportedly, Mark Zuckerburg wanted to acquire Unity for Meta Platforms (NASDAQ:FB) to be a central piece of Meta’s virtual reality plans. However, that never came to fruition and Unity remains an independent company today.
Analysts expect for Unity to reach profitability in 2023. Better, top-line revenue growth is expected to run nearly 20%/year over the next few years, which is an impressive base for a company that already generates $2 billion per year in annualized revenues. With Meta shares on the rebound, and potential revival of interest in the metaverse or augmented reality could bode well for U stock.
Dutch Bros (BROS)
Source: shutterstock.com/CC7
Dutch Bros (NYSE:BROS) is a small, but rapidly growing coffee chain. The firm is seeking to shake up the industry and take some significant market share from Starbucks (NASDAQ:SBUX).
Starbucks has long dominated the American coffee market. However, the pandemic caused people to reimagine their daily routines. Now, some people may not want to linger at Starbucks stores like they did before. Dutch Bros is well-positioned for this, as it operates small stores that emphasize serving folks quickly rather than being a place to hang out for extended periods.
Dutch Bros has also focused on customer service. It is known for having upbeat personable staff. Given Starbucks’ current issues with labor unions and potential worker strikes, Dutch Bros’ focus on its employees could be a strong feature.
It remains to be seen just how much purchasing power and economic activity the next generation will account for. That said, Dutch Bros looks like an early entrant in the category of growth stocks that will win as Gen Z — aka the “zoomers” — start to make their presence felt in the economy.
Toast (TOST)
Source: Freedom365day / Shutterstock.com
Sticking with restaurants, there’s Toast (NYSE:TOST), which offers a cloud-based digital technology platform for restaurants, bars, and other such related types of businesses.
Toast offers its clients a sophisticated point-of-sale (POS) system that handles ordering and payments for restaurants. The company also offers other related products and services such as its mobile order and pay offerings, its kitchen display system, and a management tool that allows restaurants to set and change menus across multiple locations and channels. Within payments, Toast has other features such as a card-reader which enable contactless payments.
Toast has had success in recent years, growing from about $665 million in revenues in 2019 to an estimated $3.5 billion in sales in 2023. The pandemic, in particular, drove a great deal of adoption as restaurants needed to enable contactless payments, digital ordering, and other such features that Toast offers.
Toast is still unprofitable, which can be risky given current market conditions. However, shares have pulled back from $25 to $17 since February. That has TOST stock at a market capitalization of less than $9 billion, which works out to less than three times revenues. That’s not a bad price.
Texas Instruments (TXN)
Source: Chompoo Suriyo / Shutterstock.com
Texas Instruments (NASDAQ:TXN) is the world’s largest analog semiconductor company. Analog semiconductors are of vital importance, since they can take real-world information, such as climatological observations, and convert them into data that software can utilize.
These analog semiconductors will be vital for many emerging industries and technologies such as connected and self-driving cars, Internet of Things devices, remote monitoring and security, and many other such functions. The analog chips are also less cyclical than other parts of the industry, like memory, since analog feeds into many industrial applications rather than just fast-moving consumer electronics devices.
Texas Instruments’ unceasing focus is on growing its free cash flow generated per share. This has allowed the firm to repurchase large amounts of stock while also giving shareholders generous dividend increases. With TXN stock flat over the past year, shares are at a reasonable 23x forward earnings. That’s a fine price given that Texas Instruments has put up an incredible 20%/year compounded earnings growth rate over the past decade.
Concentrix (CNXC)
Source: ImageFlow/Shutterstock.com
Concentrix (NASDAQ:CNXC) is a technology firm which offers data processing and outsourcing services for its clients. It focuses on providing tools for managing customer experiences. These include products which help clients manage customer lifecycles, data analytics, customer experience and design, and so on.
Concentrix has a wide customer base, serving clients across retail, e-commerce, travel, banking, and healthcare, among other industries. Customer experience isn’t the most glamorous vertical for software and outsourcing, but it is vital to making enterprises work over the long-term. As such, Concentrix should enjoy steady and recurring revenue streams.
The company has grown revenues from $2.5 billion in fiscal year 2018 to $6.3 billion last year. Analysts expect the company to continue to grow at a high single digits rate, despite the current industry slowdown, while shares sell for just 10 times forward earnings today.
On the date of publication, Ian Bezek held a long position in U, V, TXN 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 The 7 Best Growth Stocks to Buy for 2023 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 $65.52 V Visa $225.93 U Unity Software $30.66 BROS Dutch Bros $32.57 TOST Toast $16.87 TXN Texas Instruments $179.22 CNXC Concentrix $111.41 Datadog (DDOG) Source: Vova Shevchuk / Shutterstock.com Datadog (NASDAQ:DDOG) operates a cloud-based platform that enables firms to manage their monitoring and security functions with just one product. DDOG stock is down more than 50% over the past year, making shares a far more reasonable bargain at today’s price. That said, Dutch Bros looks like an early entrant in the category of growth stocks that will win as Gen Z — aka the “zoomers” — start to make their presence felt in the economy.
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DDOG Datadog $65.52 V Visa $225.93 U Unity Software $30.66 BROS Dutch Bros $32.57 TOST Toast $16.87 TXN Texas Instruments $179.22 CNXC Concentrix $111.41 Datadog (DDOG) Source: Vova Shevchuk / Shutterstock.com Datadog (NASDAQ:DDOG) operates a cloud-based platform that enables firms to manage their monitoring and security functions with just one product. DDOG stock is down more than 50% over the past year, making shares a far more reasonable bargain at today’s price. Toast (TOST) Source: Freedom365day / Shutterstock.com Sticking with restaurants, there’s Toast (NYSE:TOST), which offers a cloud-based digital technology platform for restaurants, bars, and other such related types of businesses.
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DDOG Datadog $65.52 V Visa $225.93 U Unity Software $30.66 BROS Dutch Bros $32.57 TOST Toast $16.87 TXN Texas Instruments $179.22 CNXC Concentrix $111.41 Datadog (DDOG) Source: Vova Shevchuk / Shutterstock.com Datadog (NASDAQ:DDOG) operates a cloud-based platform that enables firms to manage their monitoring and security functions with just one product. DDOG stock is down more than 50% over the past year, making shares a far more reasonable bargain at today’s price. InvestorPlace - Stock Market News, Stock Advice & Trading Tips So far, 2023 has been great year for growth stocks.
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DDOG Datadog $65.52 V Visa $225.93 U Unity Software $30.66 BROS Dutch Bros $32.57 TOST Toast $16.87 TXN Texas Instruments $179.22 CNXC Concentrix $111.41 Datadog (DDOG) Source: Vova Shevchuk / Shutterstock.com Datadog (NASDAQ:DDOG) operates a cloud-based platform that enables firms to manage their monitoring and security functions with just one product. DDOG stock is down more than 50% over the past year, making shares a far more reasonable bargain at today’s price. Analysts expect for Unity to reach profitability in 2023.
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9937bb93-e072-4513-ab01-0665c7f0d163
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718303.0
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2023-04-07 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-3
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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
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 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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9dbc44fa-434e-4481-81fd-c76fbff3cc98
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718304.0
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2023-04-06 00:00:00 UTC
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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-stock-sinks-as-market-gains%3A-what-you-should-know-8
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $65.83, marking a -0.42% move from the previous day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 8.16% over the past month, lagging the Computer and Technology sector's gain of 5.72% and the S&P 500's gain of 1.24% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.23, down 4.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 3.19% lower within the past month. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Datadog currently has a Forward P/E ratio of 62.86. Its industry sports an average Forward P/E of 42.89, so we one might conclude that Datadog is trading at a premium comparatively.
Investors should also note that DDOG has a PEG ratio of 1.58 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.72 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 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
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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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In the latest trading session, Datadog (DDOG) closed at $65.83, marking a -0.42% move from the previous day. Investors should also note that DDOG has a PEG ratio of 1.58 right now. 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 $65.83, marking a -0.42% move from the previous day. Investors should also note that DDOG has a PEG ratio of 1.58 right now. 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 $65.83, marking a -0.42% move from the previous day. Investors should also note that DDOG has a PEG ratio of 1.58 right now. 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 $65.83, marking a -0.42% move from the previous day. Investors should also note that DDOG has a PEG ratio of 1.58 right now. 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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1f2465a1-d629-44c0-af9b-9ca86d65ea82
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718305.0
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2023-04-06 00:00:00 UTC
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DA Davidson Initiates Coverage of Datadog, Inc. (DDOG) with Neutral Recommendation
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DDOG
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https://www.nasdaq.com/articles/da-davidson-initiates-coverage-of-datadog-inc.-ddog-with-neutral-recommendation
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nan
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nan
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Fintel reports that on April 6, 2023, DA Davidson initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation.
Analyst Price Forecast Suggests 56.29% 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 56.29% from its latest reported closing price of $66.11.
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?
SUNAMERICA SERIES TRUST - SA T. Rowe Price VCP Balanced Portfolio Class 3 holds 4K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 4K shares, representing an increase of 13.07%. The firm increased its portfolio allocation in DDOG by 1.89% over the last quarter.
Huntington National Bank holds 0K shares representing 0.00% ownership of the company. No change in the last quarter.
Pacer Advisors holds 9K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 9K shares, representing an increase of 2.10%. The firm decreased its portfolio allocation in DDOG by 37.90% over the last quarter.
Duquesne Family Office holds 332K shares representing 0.10% ownership of the company. In it's prior filing, the firm reported owning 789K shares, representing a decrease of 137.52%. The firm decreased its portfolio allocation in DDOG by 69.58% over the last quarter.
Cutler Group holds 26K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 55K shares, representing a decrease of 107.30%. The firm decreased its portfolio allocation in DDOG by 50.60% over the last quarter.
What is the Fund Sentiment?
There are 1291 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 0.52%, a decrease of 7.50%. Total shares owned by institutions decreased in the last three months by 0.60% to 263,420K shares.
The put/call ratio of DDOG is 0.60, 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 6, 2023, DA Davidson initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 1.89% over the last quarter. The firm decreased its portfolio allocation in DDOG by 37.90% over the last quarter.
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Fintel reports that on April 6, 2023, DA Davidson initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 1.89% over the last quarter. The firm decreased its portfolio allocation in DDOG by 37.90% over the last quarter.
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Fintel reports that on April 6, 2023, DA Davidson initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 1.89% over the last quarter. The firm decreased its portfolio allocation in DDOG by 37.90% over the last quarter.
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Fintel reports that on April 6, 2023, DA Davidson initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with a Neutral recommendation. The firm increased its portfolio allocation in DDOG by 1.89% over the last quarter. The firm decreased its portfolio allocation in DDOG by 37.90% over the last quarter.
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a70be9c7-d9c2-4347-b1a9-4a86591086f5
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718306.0
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2023-04-06 00:00:00 UTC
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How The Parts Add Up: PBUS Headed For $46
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DDOG
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https://www.nasdaq.com/articles/how-the-parts-add-up%3A-pbus-headed-for-%2446
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco PureBeta MSCI USA ETF (Symbol: PBUS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $46.08 per unit.
With PBUS trading at a recent price near $40.58 per unit, that means that analysts see 13.55% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), US Bancorp (Symbol: USB), and Bunge Ltd. (Symbol: BG). Although DDOG has traded at a recent price of $66.10/share, the average analyst target is 64.03% higher at $108.42/share. Similarly, USB has 48.93% upside from the recent share price of $35.11 if the average analyst target price of $52.29/share is reached, and analysts on average are expecting BG to reach a target price of $125.22/share, which is 35.76% above the recent price of $92.24. Below is a twelve month price history chart comparing the stock performance of DDOG, USB, and BG:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco PureBeta MSCI USA ETF PBUS $40.58 $46.08 13.55%
Datadog Inc DDOG $66.10 $108.42 64.03%
US Bancorp USB $35.11 $52.29 48.93%
Bunge Ltd. BG $92.24 $125.22 35.76%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
FWAC market cap history
PNW DMA
YHOO Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Invesco PureBeta MSCI USA ETF PBUS $40.58 $46.08 13.55% Datadog Inc DDOG $66.10 $108.42 64.03% US Bancorp USB $35.11 $52.29 48.93% Bunge Ltd. BG $92.24 $125.22 35.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), US Bancorp (Symbol: USB), and Bunge Ltd. (Symbol: BG). Although DDOG has traded at a recent price of $66.10/share, the average analyst target is 64.03% higher at $108.42/share.
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Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), US Bancorp (Symbol: USB), and Bunge Ltd. (Symbol: BG). Invesco PureBeta MSCI USA ETF PBUS $40.58 $46.08 13.55% Datadog Inc DDOG $66.10 $108.42 64.03% US Bancorp USB $35.11 $52.29 48.93% Bunge Ltd. BG $92.24 $125.22 35.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although DDOG has traded at a recent price of $66.10/share, the average analyst target is 64.03% higher at $108.42/share.
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Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), US Bancorp (Symbol: USB), and Bunge Ltd. (Symbol: BG). Although DDOG has traded at a recent price of $66.10/share, the average analyst target is 64.03% higher at $108.42/share. Below is a twelve month price history chart comparing the stock performance of DDOG, USB, and BG: Below is a summary table of the current analyst target prices discussed above:
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Invesco PureBeta MSCI USA ETF PBUS $40.58 $46.08 13.55% Datadog Inc DDOG $66.10 $108.42 64.03% US Bancorp USB $35.11 $52.29 48.93% Bunge Ltd. BG $92.24 $125.22 35.76% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PBUS's underlying holdings with notable upside to their analyst target prices are Datadog Inc (Symbol: DDOG), US Bancorp (Symbol: USB), and Bunge Ltd. (Symbol: BG). Although DDOG has traded at a recent price of $66.10/share, the average analyst target is 64.03% higher at $108.42/share.
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7ecf417a-c750-49dc-905f-22f477030e76
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718307.0
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2023-04-05 00:00:00 UTC
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Datadog Continues To Sink
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DDOG
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https://www.nasdaq.com/articles/datadog-continues-to-sink
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nan
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nan
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(RTTNews) - Datadog, Inc. (DDOG) shares are down more than 6 percent on Wednesday morning trade, despite no corporate announcements today to influence the stock movement. The shares have been on a bearish trend since the start of the month and touched a 3-month low today.
Currently, shares are at $64.84, down 6.45 percent from the previous close of $69.32 on a volume of 1,635,941.
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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(RTTNews) - Datadog, Inc. (DDOG) shares are down more than 6 percent on Wednesday morning trade, despite no corporate announcements today to influence the stock movement. The shares have been on a bearish trend since the start of the month and touched a 3-month low today. Currently, shares are at $64.84, down 6.45 percent from the previous close of $69.32 on a volume of 1,635,941.
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(RTTNews) - Datadog, Inc. (DDOG) shares are down more than 6 percent on Wednesday morning trade, despite no corporate announcements today to influence the stock movement. Currently, shares are at $64.84, down 6.45 percent from the previous close of $69.32 on a volume of 1,635,941. 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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(RTTNews) - Datadog, Inc. (DDOG) shares are down more than 6 percent on Wednesday morning trade, despite no corporate announcements today to influence the stock movement. The shares have been on a bearish trend since the start of the month and touched a 3-month low today. 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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(RTTNews) - Datadog, Inc. (DDOG) shares are down more than 6 percent on Wednesday morning trade, despite no corporate announcements today to influence the stock movement. The shares have been on a bearish trend since the start of the month and touched a 3-month low today. Currently, shares are at $64.84, down 6.45 percent from the previous close of $69.32 on a volume of 1,635,941.
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40a9cc82-2094-46d0-bcfb-666b8329a485
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718308.0
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2023-04-03 00:00:00 UTC
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Active Tech ETFs Can Ride E-Commerce Megatrend
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DDOG
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https://www.nasdaq.com/articles/active-tech-etfs-can-ride-e-commerce-megatrend
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nan
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nan
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In a notable contrast to last year, and perhaps somewhat unexpectedly, it’s been tech names that have buoyed the S&P 500 amid the bank drama that roiled markets over the last few weeks. Combine the durability of tech with strong consumer demand and underlying “megatrends,” and the investment case for names like Shopify (SHOP) and Cloudflare Inc. (NET) begins to stand out, with active tech ETFs one avenue for alpha in the space.
E-commerce-related tech names were major beneficiaries of the monetary regime that followed the Financial Crisis, and though rates have since spiked and the M2 supply is rapidly drying up, e-commerce is still growing. E-commerce topped $1 trillion last year, with consumer resilience and increasing millennial use of e-commerce services buoying the space, too.
That said, those trends are exposed to rate hikes, but that doesn’t have to dissuade investors away from e-commerce, given the underlying megatrends that are pushing the space forward. According to research from Franklin Templeton, megatrends such as the quantification of customer behavior data and the democratization of access to commercial transaction systems are growing the space on their own, with SHOP an example of the latter.
The democratization of online business offered by a company like SHOP has birthed an ecosystem of networked companies with multiple roles, acting as a consumer or a supplier for various services. At the same time, these firms are generating reams of data, which, when combined with quantification of social media data, can be used by e-commerce firms to empower businesses that use their services with algorithms which predict a consumer’s next moves based on increasingly precise and powerful data analytics.
These are not the only trends, but they speak to how e-commerce technology can drive the space forward even if ravenous consumer spending slows down in a recessionary year. Active tech ETFs may be some of the better-equipped strategies to navigate such an environment, with the Franklin Disruptive Commerce ETF (BUYZ) and the Franklin Exponential Data ETF (XDAT) a duo of ETFs to consider.
BUYZ just hit its three-year mark in February, and charges 50 basis points (bps) to invest in those firms that are disrupting traditional commerce, including payment companies, retailers, logistics firms, and more.
XDAT meanwhile will hit three years this coming January, investing in firms that benefit from or facilitate advances in so-called “Big Data,” which includes B2B software firms in the e-commerce ecosystem. XDAT charges 50 bps as well for its active approach, holding names like Data Dog Inc., (DDOG) and NET.
Tech is one of the key sectors in U.S. equities, and often a major component of growth oriented portfolios. Tech may face some challenges in this rising rate environment, but with active tech ETFs to invest across the e-commerce ecosystem and its burgeoning megatrends, XDAT and BUYZ could be a pair of strategies to watch in the weeks and months ahead.
For more news, information, and analysis, visit the Volatility Resource Channel.
VettaFi is an independent publisher and takes responsibility for our edit staff, research, and postings. Franklin Templeton is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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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XDAT charges 50 bps as well for its active approach, holding names like Data Dog Inc., (DDOG) and NET. In a notable contrast to last year, and perhaps somewhat unexpectedly, it’s been tech names that have buoyed the S&P 500 amid the bank drama that roiled markets over the last few weeks. E-commerce-related tech names were major beneficiaries of the monetary regime that followed the Financial Crisis, and though rates have since spiked and the M2 supply is rapidly drying up, e-commerce is still growing.
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XDAT charges 50 bps as well for its active approach, holding names like Data Dog Inc., (DDOG) and NET. Active tech ETFs may be some of the better-equipped strategies to navigate such an environment, with the Franklin Disruptive Commerce ETF (BUYZ) and the Franklin Exponential Data ETF (XDAT) a duo of ETFs to consider. BUYZ just hit its three-year mark in February, and charges 50 basis points (bps) to invest in those firms that are disrupting traditional commerce, including payment companies, retailers, logistics firms, and more.
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XDAT charges 50 bps as well for its active approach, holding names like Data Dog Inc., (DDOG) and NET. Combine the durability of tech with strong consumer demand and underlying “megatrends,” and the investment case for names like Shopify (SHOP) and Cloudflare Inc. (NET) begins to stand out, with active tech ETFs one avenue for alpha in the space. Active tech ETFs may be some of the better-equipped strategies to navigate such an environment, with the Franklin Disruptive Commerce ETF (BUYZ) and the Franklin Exponential Data ETF (XDAT) a duo of ETFs to consider.
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XDAT charges 50 bps as well for its active approach, holding names like Data Dog Inc., (DDOG) and NET. Combine the durability of tech with strong consumer demand and underlying “megatrends,” and the investment case for names like Shopify (SHOP) and Cloudflare Inc. (NET) begins to stand out, with active tech ETFs one avenue for alpha in the space. E-commerce topped $1 trillion last year, with consumer resilience and increasing millennial use of e-commerce services buoying the space, too.
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a8a3c6b2-87d6-48e9-8a88-886ffa271c05
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718309.0
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2023-03-31 00:00:00 UTC
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Why Datadog, CrowdStrike, and Atlassian Rallied Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-crowdstrike-and-atlassian-rallied-today
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nan
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nan
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What happened
Shares of high-growth software stocks Datadog (NASDAQ: DDOG), CrowdStrike (NASDAQ: CRWD), and Atlassian (NASDAQ: TEAM) were rallying on Friday, rising 6.7%, 4%, and 5.3%, respectively, as of 2 p.m. ET.
The synchronous moves across these three software plays suggest a broader theme, which likely came from today's personal consumption expenditures price index, or PCE -- a measure of inflation closely watched by the Federal Reserve. The Fed tends to prefer the PCE because the PCE changes its weightings more frequently than the CPI, and tends to reflect customer buying behavior, such as "trading down" in times of inflation to understand what consumers are actually paying for goods and services.
Fortunately, that figure for February came in cooler than expected, and lower inflation measures tend to be great news for growth tech stocks.
So what
Today, the Bureau of Economic Analysis released the February PCE. February's reading showed 0.3% month-over-month growth, or 5% year over year, compared with 0.6% and 5.3%, respectively, in January. Stripping out the more volatile food and energy categories, "core" PCE rose 0.3% and 4.6%. That monthly inflation gauge was below expectations for 0.4%.
Needless to say, this was a very welcome report, especially as personal income also rose 0.3%, in line with core inflation. That means the American consumer isn't losing purchasing power even as inflation is declining. The report also dovetails somewhat with yesterday's unemployment claims of 198,000 for the week ended March 25, which was a bit higher than expected.
While no one likes to see people out of work, that is still a very low number by historical standards, and suggests that there may be more slack forming in the labor market. The U.S. has had a "too-hot" jobs market for about 18 months, which has been a driver of services inflation. So, to see claims ticking up but still remaining low suggests inflation may decline, hopefully without a meaningful surge in unemployment.
In any case, the news is very encouraging for growth stocks, especially beaten-down SaaS stocks like Datadog, CrowdStrike, and Atlassian. While each of these companies is posting impressive top-line growth, especially in this environment, and generally beat analyst expectations for both revenue and adjusted profits in their recently reported quarters, none of these three companies is making positive profits today. Each of them probably could, but are investing in what they see as a long-term growth opportunity.
That's probably the correct move for each. But even if these companies achieve their goals, economywide inflation would hurt the value of their respective stock prices. This is because the higher inflation is, the higher long-term interest rates tend to be. The higher long-term interest rates are, the more future earnings are discounted in present-day terms.
For instance, if you expect a company to earn $10 in profits 10 years from now and discount those profits at a 10% rate, those profits are worth $3.86 in present-day terms. However, if you only discount that future $10 by an 8% discount rate, the value of those earnings today would be $4.63. That's a 20% difference.
Since Datadog, CrowdStrike, and Atlassian are all leaders in cloud software, and appear to have products and models resonating with customers -- Datadog in software observability and tech infrastructure health, CrowdStrike in cybersecurity, and Atlassian in project management and customer service software -- each company is likely to grow through a potential near-term economic downturn. Therefore, the next year or so of revenue and earnings might not be nearly as important to these stocks as the level of long-term interest rates. That's why when inflation shows signs of declining, these types of stocks benefit – even if it raises questions about near-term economic growth and the potential for a recession.
DDOG PS Ratio data by YCharts
Now what
These three companies each appear to have winning business models, strong leadership, and excellent growth prospects, making them targets for younger investors with a long time horizon. Still, with each stock still trading at frothy multiples between 13.6 and 14.2 times their sales, each will have to keep up strong operational performance to justify their valuations. And that has to happen in conjunction with continued moderation in inflation.
Remember, the Federal Reserve hasn't quite quashed inflation back to its 2% just yet, even though February's numbers offered some optimism after the hot reading in January. So, there still isn't much margin of safety in these stocks, making them appropriate only for those with a long time horizon, and who can handle near-term volatility.
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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 Atlassian, CrowdStrike, and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DDOG PS Ratio data by YCharts Now what These three companies each appear to have winning business models, strong leadership, and excellent growth prospects, making them targets for younger investors with a long time horizon. What happened Shares of high-growth software stocks Datadog (NASDAQ: DDOG), CrowdStrike (NASDAQ: CRWD), and Atlassian (NASDAQ: TEAM) were rallying on Friday, rising 6.7%, 4%, and 5.3%, respectively, as of 2 p.m. The synchronous moves across these three software plays suggest a broader theme, which likely came from today's personal consumption expenditures price index, or PCE -- a measure of inflation closely watched by the Federal Reserve.
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What happened Shares of high-growth software stocks Datadog (NASDAQ: DDOG), CrowdStrike (NASDAQ: CRWD), and Atlassian (NASDAQ: TEAM) were rallying on Friday, rising 6.7%, 4%, and 5.3%, respectively, as of 2 p.m. DDOG PS Ratio data by YCharts Now what These three companies each appear to have winning business models, strong leadership, and excellent growth prospects, making them targets for younger investors with a long time horizon. This is because the higher inflation is, the higher long-term interest rates tend to be.
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What happened Shares of high-growth software stocks Datadog (NASDAQ: DDOG), CrowdStrike (NASDAQ: CRWD), and Atlassian (NASDAQ: TEAM) were rallying on Friday, rising 6.7%, 4%, and 5.3%, respectively, as of 2 p.m. DDOG PS Ratio data by YCharts Now what These three companies each appear to have winning business models, strong leadership, and excellent growth prospects, making them targets for younger investors with a long time horizon. In any case, the news is very encouraging for growth stocks, especially beaten-down SaaS stocks like Datadog, CrowdStrike, and Atlassian.
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What happened Shares of high-growth software stocks Datadog (NASDAQ: DDOG), CrowdStrike (NASDAQ: CRWD), and Atlassian (NASDAQ: TEAM) were rallying on Friday, rising 6.7%, 4%, and 5.3%, respectively, as of 2 p.m. DDOG PS Ratio data by YCharts Now what These three companies each appear to have winning business models, strong leadership, and excellent growth prospects, making them targets for younger investors with a long time horizon. So, to see claims ticking up but still remaining low suggests inflation may decline, hopefully without a meaningful surge in unemployment.
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109458ea-7bff-49b6-83a5-d6d995cfd2f9
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718310.0
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2023-03-31 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-2
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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.
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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 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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4c74ac46-3eff-4d2a-b929-01c2f65f186f
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718311.0
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2023-03-30 00:00:00 UTC
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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-stock-sinks-as-market-gains%3A-what-you-should-know-7
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nan
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nan
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Datadog (DDOG) closed at $67.91 in the latest trading session, marking a -0.28% move from the prior day. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 9.47% over the past month. This has lagged the Computer and Technology sector's gain of 7.94% and the S&P 500's gain of 1.72% 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%. 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.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 7.05% lower within the past month. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 64.75 right now. This valuation marks a premium compared to its industry's average Forward P/E of 43.14.
It is also worth noting that DDOG currently has a PEG ratio of 1.63. 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. DDOG's industry had an average PEG ratio of 1.66 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 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.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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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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Datadog (DDOG) closed at $67.91 in the latest trading session, marking a -0.28% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 1.63. DDOG's industry had an average PEG ratio of 1.66 as of yesterday's close.
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Datadog (DDOG) closed at $67.91 in the latest trading session, marking a -0.28% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 1.63. DDOG's industry had an average PEG ratio of 1.66 as of yesterday's close.
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Datadog (DDOG) closed at $67.91 in the latest trading session, marking a -0.28% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 1.63. DDOG's industry had an average PEG ratio of 1.66 as of yesterday's close.
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Datadog (DDOG) closed at $67.91 in the latest trading session, marking a -0.28% move from the prior day. It is also worth noting that DDOG currently has a PEG ratio of 1.63. DDOG's industry had an average PEG ratio of 1.66 as of yesterday's close.
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7cdf9605-d3b5-420f-8c22-685869843e78
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718312.0
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2023-03-30 00:00:00 UTC
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7 Growth Stocks That Are Poised to Boom in 2024
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DDOG
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https://www.nasdaq.com/articles/7-growth-stocks-that-are-poised-to-boom-in-2024
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As investors navigate the ever-changing financial landscape, growth stocks to buy have emerged as attractive options for those looking to pounce on market shifts. Recently, growth stocks have taken a hit following concerns about declining revenue growth rates and tech industry layoffs. However, the focus has shifted to the banking sector because of multiple major banking failures in March sending throughout the financial world.
The turn of events could be a silver lining for growth stocks, as analysts predict a more dovish stance from the Federal Reserve. Moreover, many growth stocks offer comparable value to defensive stocks. Some companies are trading at just a few times earnings due to margin compression and lackluster year-over-year results compared to 2021. But as the business climate eventually pivots towards a conducive environment, and companies no longer have to compete against tough comparable metrics, there’s potential for significant upside.
Keeping this in mind, let’s dive into seven growth stocks poised to boom, offering savvy investors a chance to seize long-term opportunities.
V Visa $222.41
ADBE Adobe $380.64
DDOG Datadog $68.06
SQM Sociedad Química y Minera de Chile $81.13
FVRR Fiverr $33.40
TSM Taiwan Semiconductor $92.46
NVDA Nvidia $273.08
Visa (V)
Source: Tendo / Shutterstock
Visa (NYSE:V) is a dominant credit card player with a leadership position in financial transactions. It boasts a rock-solid business, marked by over 50% net income margins in the past five years on average.
The firm saw a healthy transaction bump during the pandemic, with people opting for touch-free payment and eCommerce solutions. However, the one door closing, the other opened for Visa in the form of resurgent travel and tourism. The robust profit margins on cross-border payments helped the firm to post incredible top and bottom-line growth in the past few quarters.
Though growth rates are expected to normalize, forward estimates are at an eye-catching 14.2%, more than 30% higher than its 5-year averages. Moreover, according to analysts at Tipranks, V stock is trading at an 18% discount to its intrinsic value.
Adobe (ADBE)
Source: Khakimullin Aleksandr / Shutterstock
Adobe (NASDAQ:ADBE) has established itself as a juggernaut in the graphics space with industry-leading software tools, including Premiere Pro and PhotoShop. Its software stack is virtually irreplaceable in fields like graphic design, video editing, marketing, and others. In recent years, the firm has widened its moat by buying other pieces of software to build its content cloud for creative professionals. Last year, creative cloud subscribers grew by nearly 30 million, a run rate of one million subscriptions per quarter.
Additionally, Adobe is looking to cash in on the artificial intelligence (AI) trend, having released a Beta version of its art generator called Firefly. The editing software allows content creators to effectively improve their photos and videos using the help of AI. With the proliferation of AI, the tool could prove to be another money-spinner down the line.
Datadog (DDOG)
Source: MEE KO DONG / Shutterstock
Datadog (NASDAQ:DDOG) offers cloud monitoring and security features via a software-as-a-service model. In contrast to other solutions, Datadog’s clients can effectively monitor and secure their digital infrastructure from a single location. Having these functions in place significantly reduces blind spots and vulnerabilities.
The firm has been one of the most talked-about success stories in its niche, growing its revenues from $101 million in 2017 to a whopping $1.7 billion in 2022. Moreover, analysts expect the firm to continue growing by over 30% for the foreseeable future. Though it continues to invest heavily in its business each year, the scale at which its growing points to a break-even scenario in the not-so-distant future.
The stock market rout last year saw DDOG stock losing over 50% of its value. It trades at around 13 times trailing-twelve-month sales, roughly 64% lower than its 5-year average.
Sociedad Quimica y Minera de Chile (SQM)
Source: Shutterstock
Sociedad Quimica y Minera de Chile (NYSE:SQM) is a specialty chemical giant establishing itself as the world’s leading lithium producer. That’s reflected in its recent results, which show triple-digit growth in lithium sales.
Across virtually every metric, SQM offers robust value. Its A-graded profitability profile is a sight to behold, more so in the past year, with double-digit growth over historical metrics. Its earnings per share grew by a whopping 585% last year, with a 730% bump in free cash flows. Based on higher sales volumes and average prices, expect SQM stock to continue performing remarkably well over the long run.
Having said that, SQM stock trades at just 2.3 times forward sales estimates, a 50% discount to its 5-year average. Therefore, investing in this growth stock seems like a no-brainer.
Fiverr International (FVRR)
Source: Freedom365day / Shutterstock.com
Fiverr International (NYSE:FVRR) is a popular online freelancer marketplace that has taken off in line with the burgeoning gig economy. Its top-line growth has averaged more than 50% over the past five years, an incredible feat, to say the least. However, it’s only scratching the surface with its $337 million revenue base, considering how the worldwide freelancer marketplace is expected to reach $18.3 billion by 2031.
Fiverr boasts a highly sticky user base that continues to deliver double-digit revenue growth for the business in the current economic climate. During the fourth quarter, spending-per-buyer reached $262, compared to $242 last year. As we advance, it remains in an excellent position to continue tapping into powerful workplace trends. Its stock dipped over 50% last year, and investing at current levels is mighty attractive.
Taiwan Semiconductor (TSM)
Source: Shutterstock
Taiwan Semiconductor (NYSE:TSM) is a bellwether in the semiconductor space, generating multi-bagger returns for its investors over the past decade. Bloomberg Intelligence data shows that TSM has over 57% market share in the semiconductor market, head, and shoulders above its competition.
TSM saw record growth in its top line due to a robust chip pricing environment last year. Revenue growth is over 42.6% on a year-over-year basis, almost 170% higher than its five-year average. However, it expects revenues to slow down in the first half of the year due to the softness in the market. It should pick up the pace again in the second half of 2023, though, because of a strong recovery in the semiconductor market. Analysts expect the firm to generate 20%+ growth in 2024, following a relatively anemic 2023.
Nvidia (NVDA)
Source: REDPIXEL.PL / Shutterstock.com
Tech powerhouse Nvidia (NASDAQ:NVDA) is arguably the pick of the growth stocks to buy. The California-based GPU giant never ceases to amaze in having its finger on the pulse of virtually every popular tech trend over the past several years. Be it autonomous driving to crypto mining, its GPUs are optimizing more than 700 applications across various sectors.
Most recently, it has set its sights on the AI space, helping to bring the technology to the masses. Its impressive hardware and software stack is tailor-made for the AI sphere, which includes powerful GPUs such as the H100, the world’s fastest AI GPU. Moreover, it boasts a suite of software tools, including the TensorRT, CUDA, and the DGX cloud service, which provide users with spectacular capabilities to develop and optimize AI applications efficiently. Even without AI, it can continue to generate impressive double-digit growth rates each quarter.
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 Growth Stocks That Are Poised to Boom in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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V Visa $222.41 ADBE Adobe $380.64 DDOG Datadog $68.06 SQM Sociedad Química y Minera de Chile $81.13 FVRR Fiverr $33.40 TSM Taiwan Semiconductor $92.46 NVDA Nvidia $273.08 Visa (V) Source: Tendo / Shutterstock Visa (NYSE:V) is a dominant credit card player with a leadership position in financial transactions. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) offers cloud monitoring and security features via a software-as-a-service model. The stock market rout last year saw DDOG stock losing over 50% of its value.
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V Visa $222.41 ADBE Adobe $380.64 DDOG Datadog $68.06 SQM Sociedad Química y Minera de Chile $81.13 FVRR Fiverr $33.40 TSM Taiwan Semiconductor $92.46 NVDA Nvidia $273.08 Visa (V) Source: Tendo / Shutterstock Visa (NYSE:V) is a dominant credit card player with a leadership position in financial transactions. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) offers cloud monitoring and security features via a software-as-a-service model. The stock market rout last year saw DDOG stock losing over 50% of its value.
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V Visa $222.41 ADBE Adobe $380.64 DDOG Datadog $68.06 SQM Sociedad Química y Minera de Chile $81.13 FVRR Fiverr $33.40 TSM Taiwan Semiconductor $92.46 NVDA Nvidia $273.08 Visa (V) Source: Tendo / Shutterstock Visa (NYSE:V) is a dominant credit card player with a leadership position in financial transactions. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) offers cloud monitoring and security features via a software-as-a-service model. The stock market rout last year saw DDOG stock losing over 50% of its value.
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V Visa $222.41 ADBE Adobe $380.64 DDOG Datadog $68.06 SQM Sociedad Química y Minera de Chile $81.13 FVRR Fiverr $33.40 TSM Taiwan Semiconductor $92.46 NVDA Nvidia $273.08 Visa (V) Source: Tendo / Shutterstock Visa (NYSE:V) is a dominant credit card player with a leadership position in financial transactions. Datadog (DDOG) Source: MEE KO DONG / Shutterstock Datadog (NASDAQ:DDOG) offers cloud monitoring and security features via a software-as-a-service model. The stock market rout last year saw DDOG stock losing over 50% of its value.
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d815d347-8371-4145-8712-2622f35679a6
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718313.0
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2023-03-29 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-4
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nan
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nan
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Datadog (DDOG) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 5.16%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 11.49% over the past month. This has lagged the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 0.27% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 4.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $468.13 million, up 28.95% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.36%, respectively.
Investors might also notice recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 7.05% lower. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Datadog currently has a Forward P/E ratio of 64.4. This valuation marks a premium compared to its industry's average Forward P/E of 43.07.
We can also see that DDOG currently has a PEG ratio of 1.62. 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. DDOG's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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Datadog (DDOG) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. We can also see that DDOG currently has a PEG ratio of 1.62.
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Datadog (DDOG) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion.
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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. Datadog (DDOG) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion.
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Datadog (DDOG) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. We can also see that DDOG currently has a PEG ratio of 1.62.
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95d4a897-25a1-45fb-b57f-89717488915a
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718314.0
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2023-03-29 00:00:00 UTC
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DDOG September 15th Options Begin Trading
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DDOG
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https://www.nasdaq.com/articles/ddog-september-15th-options-begin-trading
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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 15th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 170 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 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $65.00 strike price has a current bid of $8.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $65.00, but will also collect the premium, putting the cost basis of the shares at $56.40 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $67.83/share today.
Because the $65.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 13.23% return on the cash commitment, or 28.41% 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 $65.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $75.00 strike price has a current bid of $8.35. If an investor was to purchase shares of DDOG stock at the current price level of $67.83/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $75.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 22.88% if the stock gets called away at the September 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $75.00 strike highlighted in red:
Considering the fact that the $75.00 strike represents an approximate 11% 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 12.31% boost of extra return to the investor, or 26.43% 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 $67.83) 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:
GAIN Insider Buying
NetApp market cap history
ZIMV Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 $75.00 strike highlighted in red: Considering the fact that the $75.00 strike represents an approximate 11% 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 15th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $75.00 strike highlighted in red: Considering the fact that the $75.00 strike represents an approximate 11% 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 15th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $75.00 strike highlighted in red: Considering the fact that the $75.00 strike represents an approximate 11% 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 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new September 15th 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 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $75.00 strike highlighted in red: Considering the fact that the $75.00 strike represents an approximate 11% 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 15th expiration.
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3012f351-c96c-4b76-958d-d65df0faf98e
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718315.0
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2023-03-28 00:00:00 UTC
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3 "Expensive" Growth Stocks That Are a Lot Cheaper Than You Realize
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DDOG
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https://www.nasdaq.com/articles/3-expensive-growth-stocks-that-are-a-lot-cheaper-than-you-realize
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nan
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nan
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No matter how volatile stocks are in the short term, valuations always matter eventually. This is especially true during a bear market. When fear and uncertainty are collectively heightened, investors tend to seek out businesses that are profitable on a recurring basis and cheap.
However, "cheap" is a subjective term that can change based on sector and industry, whether we're in a bull or bear market, and what the Federal Reserve is doing regarding its monetary policy.
Likewise, valuation isn't solely determined by the price-to-earnings (P/E) ratio. Although the P/E ratio can be useful for identifying pricey stocks, not all stocks are necessarily expensive when examined in combination with other valuation metrics.
Image source: Getty Images.
For example, while the following three high-growth stocks are "expensive" using the traditional P/E ratio, they're a lot cheaper than you probably realize when their growth rates and forward-year earnings are factored in.
CrowdStrike Holdings
The first "pricey" stock that's fairly inexpensive when you factor in its growth rate is cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD). Despite trading at 85 times trailing-12-month (TTM) earnings, CrowdStrike's forward-year P/E ratio of 43.8 (based on Wall Street's consensus) and projected sales growth rate of 29.2% makes it reasonably priced.
The best thing about cybersecurity is that it's become something of a basic-necessity service. No matter how poorly the U.S. economy is performing, hackers and robots are always trying to access sensitive data. Since CrowdStrike runs a software-as-a-service (SaaS) subscription model, it means the company can expect highly predictable cash flow.
The company's cloud-based Falcon security platform is what makes it tick. On top of being cloud native and nimbler than virtually all on-premises security solutions, Falcon relies on artificial intelligence (AI) and machine-learning to grow smarter over time. In a typical week, it'll oversee trillions of unique events, each of which makes Falcon more capable of recognizing and responding to potential threats over time.
The testament to a great business is whether customers stick around and add on to their additional purchases. In both respects, CrowdStrike gets a passing grade. Even though its SaaS software is pricier than a lot of its competition, the company's gross retention rate has climbed from 93% to roughly the 98% range over the past five years.
What's more, existing clients are continuing to add on to their initial purchases. While growing subscribers from 450 to north of 23,000 in six years is impressive, the fact that 62% of the current 23,000-plus clients have purchased at least five cloud-module subscriptions is far more important. SaaS software subscriptions often boast high margins, which can allow CrowdStrike's earnings growth to outpace its already stellar sales growth.
BioMarin Pharmaceutical
A second expensive growth stock that really isn't that pricey once you move beyond the traditional P/E ratio is ultra-rare-disease drugmaker BioMarin Pharmaceutical (NASDAQ: BMRN). Despite a TTM P/E ratio of 121, BioMarin's forward-year P/E of 30.2 and its expected growth rate of 25.9% in 2024 make it downright cheap for a biotech stock.
Similar to CrowdStrike, BioMarin benefits from its highly defensive operating model. As much as we'd like to get sick only when it's financially convenient to do so, we have no control over which ailment(s) we develop or when we become ill. For drug developers, device makers, and healthcare service providers, it means a relatively steady, predictable stream of cash flow in any economic environment.
To build on this point, BioMarin Pharmaceutical is focused on a number of ultra-rare indications. While there's certainly risk involved with targeting smaller patient pools, there's plenty of reward for successful clinical studies. In addition to improving the lives of patients with rare diseases, BioMarin rarely faces any pushback on its list prices from insurers, and competition for ultra-rare-disease therapeutics tends to be minimal (or nonexistent).
BioMarin currently has seven approved brand-name drugs that accounted for more than $2 billion in net product sales last year. The one with the most intriguing growth prospects is Voxzogo, which is an injection given to children with achondroplasia aged five years and older that aids in their growth.
As of the end of January 2023, 1,264 children globally were being treated with Voxzogo. While that many not sound like a lot of patients, sales for this key drug are expected to double in 2023 to between $330 million and $380 million.
Wall Street and investors are also closely eyeing BioMarin's Biologics License Application for Roctavian, which is under review by the U.S. Food and Drug Administration (FDA) and has an expected action date of no later than June 30, 2023. BioMarin has submitted three years of follow-up data for its gene therapy to treat severe hemophilia A in adults and remains hopeful it'll be given the green light by the FDA. In combination with Europe, BioMarin expects between $100 million and $200 million in sales this year from Roctavian.
If all goes well, Voxzogo and Roctavian can increase BioMarin's annual sales by close to 50% (around $1 billion in additional sales) between 2022 and 2024.
Image source: Getty Images.
Datadog
The third growth stock that appears expensive on the surface but is considerably cheaper once you dig in is SaaS-driven infrastructure and application monitoring company Datadog (NASDAQ: DDOG). Although its TTM P/E ratio of 67 might appear high, the company's forward-year P/E ratio of 43.5 and growth rate of 28.8%, according to Wall Street, makes its valuation quite palatable.
Although Datadog's real-time unified data platform has been streamlining businesses for more than a decade, it's the COVID-19 pandemic that really accelerated its growth potential. More people than ever are choosing to work remotely, which makes application performance monitoring, digital experience monitoring, and cloud security all the more important. This permanent shift in the labor market is increasing Datadog's total addressable market in observability, which now stands at $62 billion for 2026.
To add to the above, enterprise cloud spending is still arguably in its infancy. Whereas cloud spending as a percentage of global information technology (IT) spending was approximately 8% in 2021, cloud spending is projected to be closer to 20% of worldwide IT spend by 2026. Datadog's operating results demonstrate the role it's playing in helping businesses migrate into the cloud.
But if there's one number that really stands out when reviewing Datadog's operating performance, it's the company's ability to land the big fish. Having approximately 23,200 customers is great -- but growing the numbers of clients with at least $1 million in annual recurring revenue (ARR) has been Datadog's ticket to recurring adjusted profits and sustained sales growth. It ended 2022 with 317 customers generating $1 million in ARR, which is up 47% from the previous year and has more than tripled since the end of 2020.
Likewise, Datadog is having a lot of success upselling to its existing customers. In just two years, the percentage of its clients using four or more of its products has practically doubled (22% to 42%), while those using six or more products has increased sixfold from 3% to 18%. If this trend continues, Datadog's already reasonable valuation will become all the more attractive.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Datadog. The Motley Fool recommends BioMarin Pharmaceutical. 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 growth stock that appears expensive on the surface but is considerably cheaper once you dig in is SaaS-driven infrastructure and application monitoring company Datadog (NASDAQ: DDOG). Despite trading at 85 times trailing-12-month (TTM) earnings, CrowdStrike's forward-year P/E ratio of 43.8 (based on Wall Street's consensus) and projected sales growth rate of 29.2% makes it reasonably priced. On top of being cloud native and nimbler than virtually all on-premises security solutions, Falcon relies on artificial intelligence (AI) and machine-learning to grow smarter over time.
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Datadog The third growth stock that appears expensive on the surface but is considerably cheaper once you dig in is SaaS-driven infrastructure and application monitoring company Datadog (NASDAQ: DDOG). Despite trading at 85 times trailing-12-month (TTM) earnings, CrowdStrike's forward-year P/E ratio of 43.8 (based on Wall Street's consensus) and projected sales growth rate of 29.2% makes it reasonably priced. Since CrowdStrike runs a software-as-a-service (SaaS) subscription model, it means the company can expect highly predictable cash flow.
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Datadog The third growth stock that appears expensive on the surface but is considerably cheaper once you dig in is SaaS-driven infrastructure and application monitoring company Datadog (NASDAQ: DDOG). CrowdStrike Holdings The first "pricey" stock that's fairly inexpensive when you factor in its growth rate is cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD). BioMarin Pharmaceutical A second expensive growth stock that really isn't that pricey once you move beyond the traditional P/E ratio is ultra-rare-disease drugmaker BioMarin Pharmaceutical (NASDAQ: BMRN).
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Datadog The third growth stock that appears expensive on the surface but is considerably cheaper once you dig in is SaaS-driven infrastructure and application monitoring company Datadog (NASDAQ: DDOG). The company's cloud-based Falcon security platform is what makes it tick. What's more, existing clients are continuing to add on to their initial purchases.
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2023-03-27 00:00:00 UTC
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Nasdaq Bear Market: 2 Growth Stocks Billionaires Are Buying Hand Over Fist
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DDOG
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-growth-stocks-billionaires-are-buying-hand-over-fist
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The Nasdaq Composite fell into a bear market in late 2021, and it has yet to rebound. In fact, the tech-heavy stock index is still down 28% from its high. Yet, some of the wealthiest hedge fund managers on Wall Street have been buying growth stocks throughout the bear market.
Last year, Jim Simons of Renaissance Technologies more than tripled his positions in Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Meanwhile, Ron Baron of Bamco doubled his stake in Datadog, and Steven Cohen of Point72 Asset Management doubled his stake in Zscaler.
Is it time to buy these growth stocks that billionaires are buying hand over fist?
1. Datadog
Datadog provides observability and security software for developers, operations teams, and security teams. Its platform offers real-time visibility across the corporate technology stack, helping businesses keep their critical systems and services performing and secure. Datadog provides hundreds of pre-built integrations that hasten deployment, and its artificial intelligence engine accelerates workflows by automating anomaly detection and root cause analysis.
Datadog received high praise from industry analysts. Consultancy firm Gartner named the company a leader in application performance monitoring last June, Forrester Research positioned Datadog as a leader in artificial intelligence for IT operations in December, and G2 recognized its leadership in cloud infrastructure monitoring and server monitoring in reports published this past winter.
Datadog's strong competitive position translated into a strong financial performance last year. Revenue increased 63% to $1.6 billion, and cash flow from operations climbed 46% to $418 million. Better yet, investors have good reason to believe that momentum will continue.
Datadog is an innovation machine. In 2018, it became the first company to combine metrics, traces, and logs (i.e., the three pillars of observability) on one platform, and its portfolio continued to expand in the years since. It branched into user experience monitoring in 2019, developer testing and incident management in 2020, database monitoring and cloud security in 2021, and application security and cloud cost management in 2022.
Datadog's capacity for innovation should keep it on the leading edge of observability software, a market that management values at $62 billion by 2026. Currently, shares trade at 12.5 times sales, a discount to the three-year average of 38.7 times sales, a reasonable price to pay given the potential upside. But while this growth stock is indeed worth buying, investors should start with a small position, then add to it in the event of a share price pullback.
2. Zscaler
Businesses traditionally secured their networks by placing a firewall around the corporate perimeter. All traffic is routed through a centralized IT hub, where it's inspected and security policies are enforced. But that approach makes little sense today because data and applications often live in the cloud. Moreover, forcing traffic through a single data center creates bottlenecks that result in performance problems, and it provides subpar security compared to more modern solutions.
Zscaler's security service edge (SSE) platform handles inspection and zero-trust policy enforcement in the cloud, eliminating the cost and complexity of on-premises security appliances. Better yet, Zscaler operates the largest network security cloud in the world. Its platform captures 300 trillion security signals on a daily basis, each of which makes its artificial intelligence engine better at identifying malicious behavior. That advantage allows Zscaler to provide better threat protection than other vendors, according to management.
Indeed, Gartner recognized Zscaler as an industry leader for the last 11 years, and Forrester Research recently recognized the company as a leader in zero-trust network access, noting that Zscaler has more mindshare than any other vendor. Thanks to that advantage, the company delivers solid financial results like clockwork.
One of the most impressive metrics is the dollar-based net retention rate, which exceeded 125% for the past nine consecutive quarters. That means the average customer spends over 25% more each year. In turn, over the past year, revenue climbed 57% to $1.3 billion, and free cash flow rose 41% to $277 million.
Going forward, investors have good reason to believe Zscaler can maintain its growth trajectory. Gartner estimates that 80% of enterprises will adopt SSE solutions by 2025, up from 20% in 2021. More broadly, digital transformation contributed to an increase in cybercrime, so zero-trust security became a top priority for many organizations.
Zscaler is perfectly positioned to benefit from those trends. Yet the company has captured less than 2% of its $72 billion addressable market, leaving plenty of room for future growth.
Presently, shares trade at 11.8 times sales, a discount to the three-year average of 36.6 times sales. That does indeed create a buying opportunity for patient investors.
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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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Last year, Jim Simons of Renaissance Technologies more than tripled his positions in Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog provides hundreds of pre-built integrations that hasten deployment, and its artificial intelligence engine accelerates workflows by automating anomaly detection and root cause analysis. Moreover, forcing traffic through a single data center creates bottlenecks that result in performance problems, and it provides subpar security compared to more modern solutions.
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Last year, Jim Simons of Renaissance Technologies more than tripled his positions in Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Consultancy firm Gartner named the company a leader in application performance monitoring last June, Forrester Research positioned Datadog as a leader in artificial intelligence for IT operations in December, and G2 recognized its leadership in cloud infrastructure monitoring and server monitoring in reports published this past winter. Currently, shares trade at 12.5 times sales, a discount to the three-year average of 38.7 times sales, a reasonable price to pay given the potential upside.
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Last year, Jim Simons of Renaissance Technologies more than tripled his positions in Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). Datadog Datadog provides observability and security software for developers, operations teams, and security teams. Consultancy firm Gartner named the company a leader in application performance monitoring last June, Forrester Research positioned Datadog as a leader in artificial intelligence for IT operations in December, and G2 recognized its leadership in cloud infrastructure monitoring and server monitoring in reports published this past winter.
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Last year, Jim Simons of Renaissance Technologies more than tripled his positions in Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS). It branched into user experience monitoring in 2019, developer testing and incident management in 2020, database monitoring and cloud security in 2021, and application security and cloud cost management in 2022. Better yet, Zscaler operates the largest network security cloud in the world.
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2023-03-24 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-1
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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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2023-03-23 00:00:00 UTC
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Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
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https://www.nasdaq.com/articles/datadog-ddog-outpaces-stock-market-gains%3A-what-you-should-know-2
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Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 17.22% over the past month. This has lagged the Computer and Technology sector's gain of 5.82% and the S&P 500's loss of 1.21% 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 $0.23, down 4.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $468.13 million, up 28.95% from the prior-year quarter.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.36%, respectively.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate has moved 7.05% lower within the past month. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 62.94. This valuation marks a premium compared to its industry's average Forward P/E of 41.67.
It is also worth noting that DDOG currently has a PEG ratio of 1.58. 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 1.62 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 60, which puts 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
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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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Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. It is also worth noting that DDOG currently has a PEG ratio of 1.58.
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Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion.
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Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. It is also worth noting that DDOG currently has a PEG ratio of 1.58.
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Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. It is also worth noting that DDOG currently has a PEG ratio of 1.58.
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2023-03-22 00:00:00 UTC
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Buy Datadog for Its Long-Term Growth Potential
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https://www.nasdaq.com/articles/buy-datadog-for-its-long-term-growth-potential
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The stock price of Datadog (NASDAQ: DDOG) hit all-time highs in November of 2021. But in 2022, it was all downhill as high-growth cloud stocks fell out of favor with investors in a rising interest rate environment. The company reported fourth-quarter 2022 earnings in mid-February of this year that failed to give investors much hope that things would improve in 2023. While it beat analysts' revenue and earnings estimates, its guidance did not meet expectations.
The near future looks rough. Many think the economy could sink into recession; the outlook for the company seems bleak, and its stock price continues to drop. So should you invest in Datadog, a company with a reputation as a high-quality, long-term investment, or should you wait and see how the economy shakes out?
Datadog faces significant short-term headwinds
As interest rates began rising in March 2022, spending on Datadog's products declined, and it worsened across that year. In the chart below, you can see year-over-year revenue growth fall off a cliff, quickly followed by the company becoming unprofitable. Growth investors are much less interested in unprofitable companies with decelerating revenue growth, so it's no wonder the stock price dropped.
DDOG data by YCharts.
For the first quarter of 2023, Datadog forecasts revenues between $466 million and $470 million. At the midpoint, $468 million represents 29% year-over-year revenue growth, a sharp decline from last year's 83% revenue growth and fourth-quarter 2022 year-over-year revenue growth of 44%.
During the company's fourth-quarterearnings call Chief Executive Officer Olivier Pomel identified two headwinds: Larger-spending customers are allocating less cash toward cloud usage to conserve resources in an uncertain market, and the annual seasonal slowdown in the second half of December was more substantial than in the previous years. So the stock price could continue moving downward, especially since the company forecasted revenue growth slowing more than analysts like.
More worrying, management made its first-quarter 2023 projections well before the March 10 collapse of SVB Financial, which some people believe raises the odds of further slowing in the U.S. economy and possibly a recession. So Datadog's short-term prospects look bleak.
Datadog is an excellent long-term investment
This company is the lead dog in observability solutions, which helps information technology (IT) teams detect abnormalities, analyze issues, and resolve problems within applications and digital infrastructure. Observability was a $41 billion market in 2022.
Image source: Datadog.
In the fourth quarter of 2022, Forrester Research named Datadog a leader in Artificial Intelligence for IT Operations. The same year, Gartner called it a leader in the Gartner Magic Quadrant for APM (application performance monitoring) and Observability.
Image source: Datadog.
The company landed 4,400 customers in 2022, up 23%, to bring the total to 23,200. More importantly, customers with annual recurring revenue (ARR) of at least $100,000, from which Datadog generates 85% of its ARR, rose 38% to 2,780. And customers with ARR of $1 million or more rose 47% to 317. This trend shows that the company is rapidly gaining larger customers.
Gross revenue retention (GRR), the percentage of recurring revenue retained from existing customers (including downgrades and cancellations), remained stable in the mid- to high 90s. This solid number indicates that Datadog keeps a high percentage of the customers it lands, which is especially important in this heavy cost-cutting environment. Many users consider its products vital to their IT operations.
The company also maintained a dollar-based net retention rate (DBNRR) of more than 130%, meaning that existing customers increased their purchasing and usage of Datadog's products by 30% in the fourth quarter of 2022. DBNRR measures a company's revenue from existing customers (including downgrades and cancellations) and the revenue generated from cross-selling or upselling additional products to the existing customer base.
Datadog's excellent GRR and DBNRR metrics mean its customers have become increasingly invested in its platform. With each new product customers buy, the effort and time they'd need to spend to switch to a competitor's products become increasingly untenable. Some investors call this effect a switching-cost moat and consider it a precursor to a company achieving and maintaining profitability.
Should you buy Datadog stock?
The market values Datadog's stock at a price-to-sales (P/S) ratio of 12.80, near the lowest valuation since early in 2020, as seen in the following chart.
DDOG PS Ratio data by YCharts.
Cloud computing adoption is one of the most significant secular trends driving Datadog's long-term revenue growth, and the evolution of the cloud has only just begun. According to Gartner, cloud spending at the end of 2022 was approximately $500 billion, or around 10% of global IT spending. The research company projects cloud spending to reach $1 trillion by 2026, or 17% of global IT spending.
If you are a long-term investor who believes that even a recession won't stop cloud migration or digital transformation, now is a great time to invest in Datadog's upside over the next three to five years.
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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SVB Financial provides credit and banking services to The Motley Fool. Rob Starks Jr has positions in SVB Financial. The Motley Fool has positions in and recommends Datadog and SVB Financial. 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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The stock price of Datadog (NASDAQ: DDOG) hit all-time highs in November of 2021. DDOG data by YCharts. DDOG PS Ratio data by YCharts.
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The stock price of Datadog (NASDAQ: DDOG) hit all-time highs in November of 2021. DDOG data by YCharts. DDOG PS Ratio data by YCharts.
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The stock price of Datadog (NASDAQ: DDOG) hit all-time highs in November of 2021. DDOG data by YCharts. DDOG PS Ratio data by YCharts.
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The stock price of Datadog (NASDAQ: DDOG) hit all-time highs in November of 2021. DDOG data by YCharts. DDOG PS Ratio data by YCharts.
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947600e6-ada5-4598-8f3f-6fadb801c36f
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718320.0
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2023-03-20 00:00:00 UTC
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Why Datadog, MongoDB, and DocuSign Fell Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-mongodb-and-docusign-fell-today
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nan
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nan
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What happened
Shares of cloud software stars Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and DocuSign (NASDAQ: DOCU) were all falling hard today, down 4.1%, 4.4%, and 4.8%, respectively, as of 2:07 p.m. EDT.
The decline marks a reversal from the past week when most high-growth software stocks rallied as the unfolding banking crisis caused short- and long-term yields to fall significantly.
However, as the U.S. government and large U.S. banks took aggressive action to contain the fallout from the demise of Silicon Valley Bank and other regional banks, and as Europe forced the acquisition of troubled bank Credit Suisse by UBS Group, investors seem to be betting on a stabilization in the financial system and the economy.
In a bout of "good news for the economy is bad news for profit-less tech stocks," long-term yields bounced back higher, which can be a headwind for unprofitable growth stocks even if the economy turns out to be in less bad shape than feared.
So what
Some may be confused as to why economic troubles in the banking sector may be good for tech and vice versa. After all, each of these stocks fell after their recent earnings reports as all three revealed the hyper-growth they experienced through the pandemic would slow markedly this year, with each of these stocks' management teams giving rather tepid full-year outlooks.
A lot of the recent moves in these software-as-a-service (SaaS) stocks really comes down to interest rates. While each of these companies is no doubt seeing a material deceleration in their outlook, each should still grow at a faster pace than the economy over the medium-to-long term, as cloud-based digitization will be an ongoing trend, albeit at a slower pace.
However, none of these companies makes material profits today. Given that the intrinsic value of any stock is the present value of all future cash flows, and that these stocks' profits are all well out into the future, one could say that the long-term Treasury bond yield may even have a larger impact on these stocks than the near-term economic environment. This is because the higher long-term yields are, the less these companies' 2030 profits are worth in present-day terms.
Today, investors appeared to reverse last week's skittishness that we are going into some sort of recession. The 10-year Treasury bond yield, after falling from about 4% to 3.4% in less than two weeks, bounced higher to 3.5% today. The bounce seemed to be a sigh of relief after regulatory action in both the U.S. and Europe appeared to stem the banking crises -- at least for now.
The synchronous moves across all three of these companies therefore likely come from the moves in interest rates and a rotation from investors back into more cyclical sectors like banks, industrials, and energy that sold off hard last week despite much lower valuations.
DDOG PS Ratio data by YCharts.
Now what
It remains to be seen whether the banking crisis is in fact fully contained, if a recession will occur, and how severe it will be if it does.
Still, it seems like a long shot interest rates will go back to the lows seen in 2020 and 2021 in response to the pandemic, or even back to where they were in the pre-pandemic period. These high-growth software stocks have only really operated in a low-rate environment, and they still aren't "cheap" by conventional metrics.
None of the companies mentioned have generally accepted accounting principles (GAAP) profits today, and at least Datadog and MongoDB still have very high price-to-sales (P/S) ratios of 12.7 and 11.2, respectively. DocuSign is a bit more reasonable at 4.5 times sales, but DocuSign's new management team only forecasts a tepid 8% growth this year, down from 19% in 2022.
In order for these stocks to get back to their 2021 highs, growth would have to reaccelerate, which would likely require the economy to improve, while interest rates would also need to remain low. Given recent inflation trends, that doesn't appear to be in the cards any time soon.
10 stocks we like better than Datadog
When our award-winning 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 March 8, 2023
SVB Financial provides credit and banking services to The Motley Fool. 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, DocuSign, MongoDB, and SVB Financial. 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 cloud software stars Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and DocuSign (NASDAQ: DOCU) were all falling hard today, down 4.1%, 4.4%, and 4.8%, respectively, as of 2:07 p.m. EDT. DDOG PS Ratio data by YCharts. The decline marks a reversal from the past week when most high-growth software stocks rallied as the unfolding banking crisis caused short- and long-term yields to fall significantly.
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What happened Shares of cloud software stars Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and DocuSign (NASDAQ: DOCU) were all falling hard today, down 4.1%, 4.4%, and 4.8%, respectively, as of 2:07 p.m. EDT. DDOG PS Ratio data by YCharts. In a bout of "good news for the economy is bad news for profit-less tech stocks," long-term yields bounced back higher, which can be a headwind for unprofitable growth stocks even if the economy turns out to be in less bad shape than feared.
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What happened Shares of cloud software stars Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and DocuSign (NASDAQ: DOCU) were all falling hard today, down 4.1%, 4.4%, and 4.8%, respectively, as of 2:07 p.m. EDT. DDOG PS Ratio data by YCharts. In a bout of "good news for the economy is bad news for profit-less tech stocks," long-term yields bounced back higher, which can be a headwind for unprofitable growth stocks even if the economy turns out to be in less bad shape than feared.
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What happened Shares of cloud software stars Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and DocuSign (NASDAQ: DOCU) were all falling hard today, down 4.1%, 4.4%, and 4.8%, respectively, as of 2:07 p.m. EDT. DDOG PS Ratio data by YCharts. This is because the higher long-term yields are, the less these companies' 2030 profits are worth in present-day terms.
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84b1ebc4-f495-4ade-8d16-dabeaf659718
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718321.0
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2023-03-19 00:00:00 UTC
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Better Buy: Datadog vs. CrowdStrike Stock
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DDOG
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https://www.nasdaq.com/articles/better-buy%3A-datadog-vs.-crowdstrike-stock
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nan
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nan
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On the heels of a tumultuous year for the market at large and a big valuation pullback for growth stocks in particular, investors seeking deeply discounted tech stocks have plenty of options to consider. You can count CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) among the list of promising companies that have seen big sell-offs, with their share prices currently down roughly 54% and 65%, respectively, from their previous high marks.
Does CrowdStrike's leading position in its corner of the cybersecurity market make it the better buy, or does Datadog's leadership in its area of the cloud-infrastructure services market make for a more appealing long-term growth story? Read on to see why two Motley Fool contributors disagree on which stock is the better buy at today's prices.
Image source: Getty Images.
CrowdStrike is perfectly positioned for cybersecurity trends
Keith Noonan: CrowdStrike stands as the leading provider of endpoint cybersecurity services. The company's cloud-based Falcon software platform delivers protection that aims to prevent computers, mobile devices, servers, and other hardware from being used by bad actors as portals to gain access to networks. Between its top-rated software and a rising tide of cybersecurity threats, the company has been attracting customers and growing sales at an impressive pace.
CrowdStrike ended its last fiscal year with 23,019 customers, up 41% year over year. As of Jan. 31, 271 companies out of the Fortune 500 and more than a quarter of Global 200 companies were using the company's services.
CrowdStrike posted $2.24 billion in sales in its recently completed fiscal year, up 54% on an annual basis, and it recorded another big earnings jump, boosting non-GAAP (adjusted) earnings per share 130%.
With midpoint guidance calling for roughly $3 billion in sales, CrowdStrike is expecting some slowdown, targeting growth of roughly 34% this year. In the face of macroeconomic pressures, the company is seeing some significant growth deceleration, but it still expects to grow adjusted net income roughly 53% this year based on the midpoint of its guidance range.
Despite being a significantly larger company, CrowdStrike is seemingly on track to grow sales and earnings at a faster rate than Datadog, and it still trades at a lower forward price-to-earnings multiple.
CRWD PE Ratio (Forward) data by YCharts
I think Datadog's business has promise, as more projects, start-ups, and small businesses will inevitably be built around cloud services. But I think CrowdStrike's ability to score contracts with customers big and small in the cybersecurity market is ultimately a more appealing proposition.
Datadog is growing revenue and cash flow.
Parkev Tatevosian: Datadog is among the industry leaders in software-as-a-service (SaaS) companies. Admittedly, it isn't immune to headwinds that impact spending on software. Enterprises and institutions, reeling from several rounds of interest rate increases by the Federal Reserve and a rapidly changing consumer, have reduced, delayed, or paused spending on software upgrades.
DDOG Free Cash Flow (% of Quarterly Revenues) data by YCharts
Datadog's revenue grew by 43.9% from the previous year in its most recent quarter, which ended in December 2022. That's in stark contrast to the growth rate of 77% in 2020 and 79% in 2021 in the comparable quarter. Despite the slowing top line, DataDog generated a free cash flow of 20.5% in its most recent quarter. The good news is that longer-term demand for digital solutions is growing. Companies can only pause or delay upgrades for so long before they become necessary.
DDOG PS Ratio data by YCharts
Investors can capitalize on the short-term headwinds to acquire this excellent growth stock at comparatively low valuations. Datadog is selling at a price-to-sales ratio of 13.26, near the lowest investors have been able to buy this stock for several years. Once revenue reaccelerates, you will not likely have the option to buy this stock at this valuation.
Which stock is better for your portfolio?
CrowdStrike and Datadog are both posting encouraging growth, and both companies have frontrunner status in their respective service categories and somewhat comparable valuation profiles. As such, choosing which stock is the more appealing portfolio addition could come down to whether you see greater opportunity in the endpoint cybersecurity market or the SMB cloud-infrastructure-services space.
For growth-oriented investors looking for broad exposure to promising technology stocks, adding both CrowdStrike and Datadog to your portfolio could make sense. Each company operates in an industry that looks primed to benefit from secular growth trends, and each company has been expanding rapidly and profitably.
Find out why CrowdStrike is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. CrowdStrike is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of March 8, 2023
Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can count CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) among the list of promising companies that have seen big sell-offs, with their share prices currently down roughly 54% and 65%, respectively, from their previous high marks. DDOG Free Cash Flow (% of Quarterly Revenues) data by YCharts Datadog's revenue grew by 43.9% from the previous year in its most recent quarter, which ended in December 2022. DDOG PS Ratio data by YCharts Investors can capitalize on the short-term headwinds to acquire this excellent growth stock at comparatively low valuations.
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You can count CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) among the list of promising companies that have seen big sell-offs, with their share prices currently down roughly 54% and 65%, respectively, from their previous high marks. DDOG Free Cash Flow (% of Quarterly Revenues) data by YCharts Datadog's revenue grew by 43.9% from the previous year in its most recent quarter, which ended in December 2022. DDOG PS Ratio data by YCharts Investors can capitalize on the short-term headwinds to acquire this excellent growth stock at comparatively low valuations.
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You can count CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) among the list of promising companies that have seen big sell-offs, with their share prices currently down roughly 54% and 65%, respectively, from their previous high marks. DDOG Free Cash Flow (% of Quarterly Revenues) data by YCharts Datadog's revenue grew by 43.9% from the previous year in its most recent quarter, which ended in December 2022. DDOG PS Ratio data by YCharts Investors can capitalize on the short-term headwinds to acquire this excellent growth stock at comparatively low valuations.
|
You can count CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) among the list of promising companies that have seen big sell-offs, with their share prices currently down roughly 54% and 65%, respectively, from their previous high marks. DDOG PS Ratio data by YCharts Investors can capitalize on the short-term headwinds to acquire this excellent growth stock at comparatively low valuations. DDOG Free Cash Flow (% of Quarterly Revenues) data by YCharts Datadog's revenue grew by 43.9% from the previous year in its most recent quarter, which ended in December 2022.
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1efa18d9-3b8c-49e3-a50d-29747b3dbfe5
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718322.0
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2023-03-17 00:00:00 UTC
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Datadog (DDOG) Stock Moves -0.85%: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-stock-moves-0.85%3A-what-you-should-know
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $68.62, marking a -0.85% move from the previous day. This change was narrower than the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 16.08% over the past month, lagging the Computer and Technology sector's gain of 1.45% and the S&P 500's loss of 3.02% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.23, down 4.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $468.13 million, up 28.95% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.36%, respectively.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 24.14% higher within the past month. Datadog is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 65.81. This represents a premium compared to its industry's average Forward P/E of 40.65.
We can also see that DDOG currently has a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DDOG's industry had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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.
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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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In the latest trading session, Datadog (DDOG) closed at $68.62, marking a -0.85% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. We can also see that DDOG currently has a PEG ratio of 1.65.
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. 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 $68.62, marking a -0.85% move from the previous day.
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In the latest trading session, Datadog (DDOG) closed at $68.62, marking a -0.85% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. We can also see that DDOG currently has a PEG ratio of 1.65.
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In the latest trading session, Datadog (DDOG) closed at $68.62, marking a -0.85% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. We can also see that DDOG currently has a PEG ratio of 1.65.
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568743d4-fbed-4f27-aa60-0665e847bab5
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718323.0
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2023-03-17 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-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
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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62de8920-d5e6-46f0-97cc-f801e388edf3
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718324.0
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2023-03-16 00:00:00 UTC
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What's Going On With DataDog Stock?
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DDOG
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https://www.nasdaq.com/articles/whats-going-on-with-datadog-stock
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nan
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nan
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DataDog (NASDAQ: DDOG) is growing revenue robustly amid slowing economic growth. The standout expansion is attracting investors who are finding growth stocks harder to find.
*Stock prices used were the afternoon prices of March 13, 2023. The video was published on March 15, 2023.
10 stocks we like better than Datadog
When our award-winning 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 March 8, 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) is growing revenue robustly amid slowing economic growth. 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) is growing revenue robustly amid slowing economic growth. The standout expansion is attracting investors who are finding growth stocks harder to find. 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) is growing revenue robustly amid slowing economic growth. 10 stocks we like better than Datadog When our award-winning 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) is growing revenue robustly amid slowing economic growth. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! See the 10 stocks *Stock Advisor returns as of March 8, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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5d0044a4-92ca-4b2d-b6e1-01652066c7b7
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718325.0
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2023-03-16 00:00:00 UTC
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Falling Inflation Is Lifting the Nasdaq: 2 Stocks to Buy Hand Over Fist
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DDOG
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https://www.nasdaq.com/articles/falling-inflation-is-lifting-the-nasdaq%3A-2-stocks-to-buy-hand-over-fist
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nan
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nan
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Inflation refers to a broad rise in the price of goods and services, and it's a term that much of the country has become more familiar with over the last 18 months. Everything from the price of a haircut to the price of a car rises on occasion, and it erodes consumers' purchasing power as a result. Over the last 18 months or so, the rate of that rise has far exceeded what many consider to be normal.
The Consumer Price Index (CPI) is the primary measure of inflation and represents a year-over-year change in the price of a representative group of goods and services. The number is released by the U.S. Bureau of Labor Statistics each month. Since peaking at a 40-year high in June 2022, it has declined for eight consecutive months.
The February annualized inflation rate -- which was reported on March 14 -- stood at 6%, which was the lowest reading since September 2021. It's still far above the Federal Reserve's target rate of 2%, but the downward trajectory is crystal clear.
The continued decline is a welcome relief for stock market investors, particularly those exposed to the technology sector. Rising inflation tends to send interest rates higher as a counterbalance, which not only increases the cost of capital but also gives investors safer alternatives for where to invest their money. They tend to sell their riskier assets, like technology stocks, as a result.
As a result, the Nasdaq-100 tech index remains down 26% from its all-time high, which is heavily underperforming the more diversified S&P 500 (it's down 18%). But after February's CPI number was released, the Nasdaq-100 led the major indexes higher with a gain of 2% on the day.
If the decline in inflation continues, here are two stocks that could be among the biggest winners.
1. Alphabet's advertising business could come roaring back
Among the biggest losers from high inflation are those companies that rely on selling advertising spots on their platforms. As the owner of Google, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) fits squarely into that category because its search business is responsible for most of the company's overall revenue.
A slowing economy leads to consumers tightening their belts which leads to businesses tightening their budgets over concerns about slowing revenue. One easy way to trim a business budget is to cut back on marketing and ads. This means fewer dollars flowing to companies like Google. In the fourth quarter of 2022, Google's search segment (where they advertise) didn't grow at all -- in fact, its revenue shrank by 3% compared to Q4 2021.
Alphabet also owns YouTube, the world's largest video streaming platform, which relies on advertising income too. Its revenue shrank in both the third and fourth quarters, highlighting businesses' declining marketing budgets. YouTube has faced other headwinds. For example, its users are migrating to its short-form video iteration called Shorts, which monetizes at a lower rate than long-form videos. But that platform will be key in the future because it's designed to compete with ByteDance's TikTok, and as it achieves scale over time, it should become a driver of revenue growth rather than a detractor.
Google continues to hold a 93% market share in the search industry, despite facing a rare threat from Microsoft's Bing search engine, which recently integrated with OpenAI's ChatGPT. Google's dominance means it stands to be one of the biggest winners when the economy recovers and advertising dollars come flooding back into the industry.
Alphabet stock remains down 37% from its all-time high, and based on its $4.56 in earnings per share last year, it trades at a price-to-earnings (P/E) ratio of 20.5. Not only is that near the cheapest levels since 2014, but it's also 18% cheaper than the Nasdaq-100 index's 25.1 P/E. That sounds like a great buying opportunity with the inflation headwind easing off.
2. Datadog's lightning-fast growth could get even better
Datadog (NASDAQ: DDOG) has developed an analytics platform designed for companies operating in the cloud. Having an online presence means a business can access more customers without investing in additional physical stores, and it also allows them to reduce friction in their day-to-day processes. But managing all that digital infrastructure can be a challenge.
That's why Datadog is so important. Its platform can automatically alert businesses to bugs or technical issues with their online channels before they have a material effect on the customer experience. Sometimes, a website or mobile application will encounter problems for a very specific subset of users, and it won't be apparent to the business until complaints are made or revenue is lost. But Datadog is constantly monitoring for those very scenarios.
The company was an outlier in 2022. Amid all the economic turmoil, and despite the technology sector being decimated, Datadog raised its full-year revenue guidance three times -- and then it still blew away the revised estimates when its final results came in. The company generated $1.68 billion in revenue for the year, up a whopping 63% compared to 2021.
Datadog also saw 47% growth in the number of customers spending at least $1 million per year, which emphasizes the growing need for its platform among larger organizations with more complex cloud infrastructure.
Here's the obvious question: If Datadog grew that quickly in a deteriorating economic environment throughout 2022, how fast could it grow in 2023 with inflation falling and conditions improving? Investors might be about to find out, and given that Datadog stock is still down 66% from its all-time high amid the broader tech sell-off, this might be a great time to be a buyer.
10 stocks we like better than Alphabet
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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, Datadog, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog's lightning-fast growth could get even better Datadog (NASDAQ: DDOG) has developed an analytics platform designed for companies operating in the cloud. Rising inflation tends to send interest rates higher as a counterbalance, which not only increases the cost of capital but also gives investors safer alternatives for where to invest their money. Sometimes, a website or mobile application will encounter problems for a very specific subset of users, and it won't be apparent to the business until complaints are made or revenue is lost.
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Datadog's lightning-fast growth could get even better Datadog (NASDAQ: DDOG) has developed an analytics platform designed for companies operating in the cloud. Alphabet's advertising business could come roaring back Among the biggest losers from high inflation are those companies that rely on selling advertising spots on their platforms. A slowing economy leads to consumers tightening their belts which leads to businesses tightening their budgets over concerns about slowing revenue.
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Datadog's lightning-fast growth could get even better Datadog (NASDAQ: DDOG) has developed an analytics platform designed for companies operating in the cloud. Alphabet's advertising business could come roaring back Among the biggest losers from high inflation are those companies that rely on selling advertising spots on their platforms. As the owner of Google, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) fits squarely into that category because its search business is responsible for most of the company's overall revenue.
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Datadog's lightning-fast growth could get even better Datadog (NASDAQ: DDOG) has developed an analytics platform designed for companies operating in the cloud. The continued decline is a welcome relief for stock market investors, particularly those exposed to the technology sector. Alphabet's advertising business could come roaring back Among the biggest losers from high inflation are those companies that rely on selling advertising spots on their platforms.
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6ebed350-775b-4655-8475-e3d44427d464
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718326.0
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2023-03-15 00:00:00 UTC
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SentinelOne: Reversal In-Play For Cybersecurity Stocks
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DDOG
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https://www.nasdaq.com/articles/sentinelone%3A-reversal-in-play-for-cybersecurity-stocks
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nan
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nan
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The Q4 results from SentinelOne (NASDAQ: S) echo news from cybersecurity companies from DataDog (NASDAQ: DDOG) to Crowdstrike (NASDAQ: CRWD). The takeaways are that fears of slowing were overblown. Within the cybersecurity sector, market leaders like Palo Alto Networks and AI-powered solutions like Crowedstrike and SentinelOne are set up to outperform. AI, artificial intelligence, is not just a fad. It is the evolution of digital computing and the Internet and a phenomenon happening for white and black hats alike. AI will become increasingly important in securing connections, networks and endpoints across industries and verticals.
“CrowdStrike’s growing market share showcases customers' recognition of the Falcon platform’s technology leadership and advanced AI that drives better security outcomes, consolidation and lower TCO,” said George Kurtz, CrowdStrike’s president, chief executive officer and co-founder.
SentinelOne Doubles On YOY Basis
That’s right, SentinelOne growth slowed to a mere 92% in Q4, but the company more than doubled on a full-year basis. The full-year revenue came in at up 106%, and sequential growth is expected to remain strong. The Q4 revenue reached $126.09 million or $1.4 million better than expected.
The combination of customer acquisition and increased services per customer drove the gain. Annual recurring revenue is up 88%, and new customers are up 50% in evidence of that statement. Customers contributing more than $100,000 in ARR increased by 75%, which indicates accelerated adoption by large corporations and organizations. The net retention rate, a measure of business growth among existing customers, is up 130% and is consistent with metrics reported by Crowdstrike.
“We continue to strengthen our technology leadership. Once again, we are a leader in Gartner's Magic Quadrant for Endpoint Protection Platform and achieved the top ranking across all three Gartner's Critical Capabilities for Endpoint Protection Platforms,” said Tomer Weingarten, CEO of SentinelOne.
The earnings and guidance are also favorable if mixed on a full-year basis. The company posted a net loss of $0.13 adjusted but beat the consensus by $0.03 on leverage, top-line strength and internal efforts to improve efficiency. The Q1 guidance is strong and expects revenue to grow by 8.7% sequentially and 75% compared to last year. The only bad news is that growth is slowing from triple-digits to high-double-digits, which may affect the share price (although it doesn’t seem to be a problem now).
The Analysts Put The Bottom In SentinelOne
Analysts have been lowering their price targets for SentinelOne for the past year, but that trend is over. The 2023 guidance has sparked at least 5 analysts' commentaries, including 2 price target increases and 2 reductions. The takeaway from the activity is that reductions and increases offset each other, there was very little change in the Marketbeat.com consensus target, and the consensus target is about 35% above the current price action. The consensus sentiment is a Moderate Buy that shows no sign of slipping.
The chart of SentinelOne is favorable and shows a bottom in place, but there is risk in the near term. The market is still below the 150-day EMA, which can be expected to provide resistance if only a tiny amount. If the market can get above this level, it may continue upward. If not, this cyber stock may be range bound until later in the year.
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 Q4 results from SentinelOne (NASDAQ: S) echo news from cybersecurity companies from DataDog (NASDAQ: DDOG) to Crowdstrike (NASDAQ: CRWD). Within the cybersecurity sector, market leaders like Palo Alto Networks and AI-powered solutions like Crowedstrike and SentinelOne are set up to outperform. The net retention rate, a measure of business growth among existing customers, is up 130% and is consistent with metrics reported by Crowdstrike.
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The Q4 results from SentinelOne (NASDAQ: S) echo news from cybersecurity companies from DataDog (NASDAQ: DDOG) to Crowdstrike (NASDAQ: CRWD). The Q1 guidance is strong and expects revenue to grow by 8.7% sequentially and 75% compared to last year. The Analysts Put The Bottom In SentinelOne Analysts have been lowering their price targets for SentinelOne for the past year, but that trend is over.
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The Q4 results from SentinelOne (NASDAQ: S) echo news from cybersecurity companies from DataDog (NASDAQ: DDOG) to Crowdstrike (NASDAQ: CRWD). “CrowdStrike’s growing market share showcases customers' recognition of the Falcon platform’s technology leadership and advanced AI that drives better security outcomes, consolidation and lower TCO,” said George Kurtz, CrowdStrike’s president, chief executive officer and co-founder. SentinelOne Doubles On YOY Basis That’s right, SentinelOne growth slowed to a mere 92% in Q4, but the company more than doubled on a full-year basis.
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The Q4 results from SentinelOne (NASDAQ: S) echo news from cybersecurity companies from DataDog (NASDAQ: DDOG) to Crowdstrike (NASDAQ: CRWD). AI will become increasingly important in securing connections, networks and endpoints across industries and verticals. The combination of customer acquisition and increased services per customer drove the gain.
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3276e928-5b1a-49cf-9c5f-0f359dd96473
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718327.0
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2023-03-15 00:00:00 UTC
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Is It Finally Time to Buy Datadog Stock?
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DDOG
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https://www.nasdaq.com/articles/is-it-finally-time-to-buy-datadog-stock
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nan
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nan
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The precipitous fall for Datadog (NASDAQ: DDOG) stock is back on. After a decent rally to kick off 2023, shares reversed course and are now down 10% so far this year -- and down nearly 70% from their all-time highs.
This comes in spite of what appears to be a very solid Q4 2022 financial update from Datadog. Is it time to buy the dip on this cloud infrastructure and application performance software provider?
2022 ends with a bang -- and a footnote
Datadog reported year-over-year revenue growth of 44% to $469 million in Q4 2022. GAAP net loss was $29 million, versus net income of $7.2 million a year ago. Free cash flow in Q4 was positive $96 million (down from $107 million last year, though this can be a volatile profit metric).
Full-year 2022 was a pretty good year as far as all-out growth was concerned. However, the discrepancy between GAAP net loss ($50.2 million) and positive free cash flow (positive $353 million) was primarily employee stock-based compensation of $363 million -- more than double the amount shelled out in 2021.
Thus, as has been the issue with some other high-growth software-as-a-service companies, growth on a per-share basis (both for revenue and free cash flow) isn't quite as good as it appears at Datadog.
Data by YCharts.
Compounding the problem is the outlook for 2023. At the midpoint of guidance, Datadog is still expecting revenue to expand at about a 24% clip (versus 63% last year). Macroeconomic headwinds are catching up with cloud companies like Datadog at precisely the time employee stock-based comp is ramping up. This means a further deterioration in Datadog's per-share growth is definitely on the table for the year ahead.
Its valuation still isn't "cheap"
Nevertheless, expected double-digit percentage growth given the present threat of a recession is noteworthy. Datadog's modern IT infrastructure and app performance services keep picking up lots of new customers, for good reason, and the long-term potential for this company remains bright.
But high valuation concerns still remain, which is what has kept me away from Datadog stock all this time since the IPO in 2019. Even after falling so far in the last year, shares trade for nearly 13 times trailing 12-month sales, and 61 times trailing 12-month free cash flow. Suffice it to say investors still have at least a couple of years of double-digit expansion priced in at this point.
If you still like Datadog for the long term, a dollar-cost average plan where you buy very small amounts (perhaps monthly or quarterly) of this stock and build it into a larger position over time still makes the most sense. Personally, I'm not buying at this point. Given the company's outlook for slowing growth this year and plenty of new stock still getting issued to employees, I believe Datadog will remain a volatile stock at best in 2023.
The good news is Datadog had $1.88 billion in cash and short-term investments and debt of only $739 million at the end of 2022. The company could begin to repurchase stock to offset the dilution from stock-based comp and to help bridge this current period of market uncertainty. If management announced such a program, it could be a game changer for me.
In the meantime, I do still like cloud infrastructure software, as cloud computing will continue to be a top priority for enterprises around the world for the foreseeable future. But I prefer Dynatrace (NYSE: DT). It isn't growing as fast as Datadog, but it isn't a slow grower either (and isn't trailing Datadog by much on free-cash-flow-per-share growth over the last year). It was also highly profitable by all metrics last quarter, upgraded its outlook for the next fiscal year, and trades for a more reasonable valuation. Dollar-cost averaging is the method I've been employing with this stock as well.
At this juncture, I'm still not seeing the right mix of metrics to make me call Datadog a buy. For now, I'm putting this one in the "reassess later" file when economic headwinds start to ease.
10 stocks we like better than Datadog
When our award-winning 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 March 8, 2023
Nicholas Rossolillo and his clients have positions in Dynatrace. 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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The precipitous fall for Datadog (NASDAQ: DDOG) stock is back on. Thus, as has been the issue with some other high-growth software-as-a-service companies, growth on a per-share basis (both for revenue and free cash flow) isn't quite as good as it appears at Datadog. Datadog's modern IT infrastructure and app performance services keep picking up lots of new customers, for good reason, and the long-term potential for this company remains bright.
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The precipitous fall for Datadog (NASDAQ: DDOG) stock is back on. GAAP net loss was $29 million, versus net income of $7.2 million a year ago. However, the discrepancy between GAAP net loss ($50.2 million) and positive free cash flow (positive $353 million) was primarily employee stock-based compensation of $363 million -- more than double the amount shelled out in 2021.
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The precipitous fall for Datadog (NASDAQ: DDOG) stock is back on. If you still like Datadog for the long term, a dollar-cost average plan where you buy very small amounts (perhaps monthly or quarterly) of this stock and build it into a larger position over time still makes the most sense. Given the company's outlook for slowing growth this year and plenty of new stock still getting issued to employees, I believe Datadog will remain a volatile stock at best in 2023.
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The precipitous fall for Datadog (NASDAQ: DDOG) stock is back on. Thus, as has been the issue with some other high-growth software-as-a-service companies, growth on a per-share basis (both for revenue and free cash flow) isn't quite as good as it appears at Datadog. Given the company's outlook for slowing growth this year and plenty of new stock still getting issued to employees, I believe Datadog will remain a volatile stock at best in 2023.
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e6800867-cb91-4d86-8520-0813f8624999
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718328.0
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2023-03-13 00:00:00 UTC
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Datadog (DDOG) Gains As Market Dips: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know-8
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nan
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nan
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Datadog (DDOG) closed at $66.24 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 19.1% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% in that time.
Datadog will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue of $468.12 million, up 28.95% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.34%, respectively.
Any recent changes to analyst estimates for Datadog should also be noted by investors. 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.
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.
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 has moved 26.49% higher within the past month. Datadog currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 61.86. This valuation marks a premium compared to its industry's average Forward P/E of 37.77.
Meanwhile, DDOG's PEG ratio is currently 1.56. 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 1.62 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 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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Datadog (DDOG) closed at $66.24 in the latest trading session, marking a +1.69% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. Meanwhile, DDOG's PEG ratio is currently 1.56.
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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. Datadog (DDOG) closed at $66.24 in the latest trading session, marking a +1.69% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion.
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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. Datadog (DDOG) closed at $66.24 in the latest trading session, marking a +1.69% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion.
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Datadog (DDOG) closed at $66.24 in the latest trading session, marking a +1.69% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. Meanwhile, DDOG's PEG ratio is currently 1.56.
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3d4c0261-7a90-4d6a-9452-bb86543ad069
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718329.0
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2023-03-12 00:00:00 UTC
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3 Top Growth Stocks to Supercharge Your Portfolio
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DDOG
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https://www.nasdaq.com/articles/3-top-growth-stocks-to-supercharge-your-portfolio
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nan
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nan
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Issues with the economy abound at the start of 2023. Inflation is still high, and the U.S. Federal Reserve recently indicated it will still be raising interest rates this year to try to cool off economic activity. Businesses are taking the hint and scaling back their spending.
Nevertheless, green shoots are emerging after a brutal bear market for growth stocks in 2022. Some of the most beaten-down names are up by double-digit percentages early in 2023 as their management teams focus less on just growth and more on growth and profitability. Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). Here's why these contributors think these stocks could supercharge your portfolio in the coming years.
This e-commerce platform proves it can deliver the goods to shareholders
Nicholas Rossolillo (Sea Limited): It's been a long and difficult road for southeast Asia's leading e-commerce platform Sea Limited. Share prices are down nearly 80% from their all-time high set during the second half of 2021 -- when the digital economy was in bubble territory in the wake of pandemic lockdowns.
Sea's management scrambled to convince the market it can be a profitable enterprise, and the company just made an excellent case in its own favor to close out 2022. Q4 2022 revenue was up just 7% year over year to $3.5 billion, but the bottom line (on a GAAP basis) turned from red to black. Net income of $423 million was a stunning reversal from the net loss of $616 million the year prior.
It wasn't just the video game segment (Garena, the studio responsible for the global hit Free Fire) pulling dead weight like in years past. The e-commerce segment notched positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), as did the small but still fast-growing digital financial services segment.
SEA LIMITED SEGMENT
Q4 2022 REVENUE
% INCREASE (DECREASE) YOY
Q4 2022 ADJUSTED EBITDA
Q4 2021 ADJUSTED EBITDA (LOSS)
E-commerce
$2.1 billion
32%
$196 million
($878 million)
Digital entertainment (Free Fire)
$949 million
(33%)
$258 million
$603 million
Digital financial services
$380 million
93%
$75.6 million
($150 million)
Data source: Sea Limited. YOY = year over year.
Most impressive about this performance is that Sea is hitting profitability far ahead of schedule. Just three months ago, the stated goal was to achieve profitability "by the end of 2023." It has cleaned up its mess and gotten into better financial shape ahead of schedule. Investors will now want to monitor if this trend can sustain throughout the rest of 2023. Management admitted profits will be lumpy from one quarter to the next.
To be sure, it's still very early days for Sea's new voyage. I expect this stock to be highly volatile. Nevertheless, with shares trading at 8.6 times trailing-12-month gross profit, I think this e-commerce business is worth nibbling on again if you believe it can continue growing profitably. If you thought it offered a decent risk-to-reward payoff a few months ago, it appears Sea has even more favorable winds working for it today -- so I'm keeping this one on my close watch list in the coming months.
Datadog: A hungry little dogfish in a big and growing pond
Anders Bylund (Datadog): Data analytics is a crucial part of any company's business toolkit nowadays. Datadog provides a valuable service in this space, helping companies monitor and analyze their network security data. The company ingests many different data sources into a cloud-based system, applying artificial intelligence and hand-built tools to uncover security threats and operating issues before they become a problem.
With Datadog, you get a single unified view of all of your data with searchable metrics and effective visualizations. These tools help IT managers keep their cloud-based systems online and operational, avoiding unexpected downtime and supporting a better customer experience.
This is a massive business opportunity. Let's look at just one piece of Datadog's overall service portfolio. Gartner estimates that the observability market amounted to $44 billion of global revenue last year, expanding to $62 billion by 2026. Datadog is a small dogfish in a huge pond.
The company is expanding its slice of that enormous market. Its customer list expanded by 23% year over year in last month's fourth-quarter report. The number of large clients, with annual contracts of at least $100,000, increased by 38% in the same time span. And the average contract also grew larger, driving top-line sales 44% higher.
Mind you, that amounts to a slow quarter in Datadog's history. The 44% revenue jump was the slowest increase in company history.
Data by YCharts
I can't wait to see what Datadog can do in a healthier economy with fewer restraints on its clients' data security budgets. The stock trades at a lofty valuation of 13 times sales and 58 times free cash flow, so devout value investors should probably look elsewhere. But to growth investors like yours truly, Datadog has earned that rich valuation and more. The stock is down by roughly 45% over the last year, making its soaring stock price quite a bit more palatable to investors of all stripes.
The leading luxury goods marketplace trades at less than 1 times sales
Billy Duberstein (Farfetch): After years of hypergrowth, European luxury goods e-commerce platform Farfetch saw growth stagnate last year, with revenue up just 3% in 2022, on gross merchandise volume (GMV) that was down 4%.
But is Farfetch really an ex-growth company? It trades like it, at less than 1 times revenue, having plummeted over 90% from its highs.
Data by YCharts.
But consider this: Farfetch faced a near-perfect storm last year. As the world's largest luxury e-commerce marketplace, Farfetch had to close down its Russia business -- its third-largest market. Amid Chinese lockdowns, sales in China -- the company's second-largest market -- also fell hard, whereas that would normally be a growth area. And third, the dollar strengthened, impacting dollar-equivalent sales overseas. In fact, in constant currency, GMV didn't fall but actually grew 2%, and revenue was up 12% for the year, despite those headwinds.
Considering the company will be lapping those headwinds this year, Farfetch's growth should look much better. In addition, the company took 2022 as an opportunity to cut costs and streamline the business. The company cut its headcount by 17%, and lowered its fixed cost base by 10% while reorganizing and simplifying its operating structure.
This sets up Farfetch for a much, much better 2023. Management put forward a solid-looking projection of $4.9 billion in GMV this year, which would mean growth of 16%, along with positive adjusted EBITDA margins between 1%-3%, and positive free cash flow. Growth should also accelerate through the year, as Farfetch's platform solutions onboards new accounts from Salvatore Ferragamo and Reebok in the second quarter, with Nieman Marcus Group in the fourth. Meanwhile, Farfetch is awaiting regulator approval to acquire its biggest rival, Yoox Net-a-Porter. Should the deal go through, it could add incremental growth in 2024 and beyond.
At less than 1 times sales, shares look pretty de-risked at this point; meanwhile, it's possible the business surprises to the upside, which could lead to a big move higher.
10 stocks we like better than Sea Limited
When our award-winning 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 Sea Limited 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 March 8, 2023
Anders Bylund has no position in any of the stocks mentioned. Billy Duberstein has positions in Farfetch and Sea Limited and has the following options: short January 2024 $50 puts on Sea Limited. His clients may have positions in the stocks mentioned. Nicholas Rossolillo has positions in Farfetch. His clients may have positions in the stocks mentioned. The Motley Fool has positions in and recommends Datadog, Farfetch, and Sea Limited. 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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Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). It wasn't just the video game segment (Garena, the studio responsible for the global hit Free Fire) pulling dead weight like in years past. The company ingests many different data sources into a cloud-based system, applying artificial intelligence and hand-built tools to uncover security threats and operating issues before they become a problem.
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Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). E-commerce $2.1 billion 32% $196 million ($878 million) Digital entertainment (Free Fire) $949 million (33%) $258 million $603 million Digital financial services $380 million 93% $75.6 million ($150 million) Data source: Sea Limited. The stock trades at a lofty valuation of 13 times sales and 58 times free cash flow, so devout value investors should probably look elsewhere.
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Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). E-commerce $2.1 billion 32% $196 million ($878 million) Digital entertainment (Free Fire) $949 million (33%) $258 million $603 million Digital financial services $380 million 93% $75.6 million ($150 million) Data source: Sea Limited. The leading luxury goods marketplace trades at less than 1 times sales Billy Duberstein (Farfetch): After years of hypergrowth, European luxury goods e-commerce platform Farfetch saw growth stagnate last year, with revenue up just 3% in 2022, on gross merchandise volume (GMV) that was down 4%.
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Three Fool.com contributors think the narrative is in the process of changing for Sea Limited (NYSE: SE), Datadog (NASDAQ: DDOG), and Farfetch (NYSE: FTCH). The leading luxury goods marketplace trades at less than 1 times sales Billy Duberstein (Farfetch): After years of hypergrowth, European luxury goods e-commerce platform Farfetch saw growth stagnate last year, with revenue up just 3% in 2022, on gross merchandise volume (GMV) that was down 4%. Considering the company will be lapping those headwinds this year, Farfetch's growth should look much better.
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98da57ec-8835-42d6-bf73-05240e83eb75
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718330.0
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2023-03-10 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
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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
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 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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be12d0c2-ae90-49f7-a74e-c8856639d240
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718331.0
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2023-03-09 00:00:00 UTC
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Best Growth Stock to Buy: The Trade Desk vs. DraftKings vs. DataDog
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DDOG
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https://www.nasdaq.com/articles/best-growth-stock-to-buy%3A-the-trade-desk-vs.-draftkings-vs.-datadog
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nan
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nan
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The Trade Desk (NASDAQ: TTD), DraftKings (NASDAQ: DKNG), and DataDog (NASDAQ: DDOG) operate in different industries, but one thing they have in common is revenue growth. This video will pit the three growth stocks against each other and let you know which is the best one to buy right now.
*Stock prices used were the afternoon prices of March 6, 2023. The video was published on March 8, 2023.
Find out why Trade Desk is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Trade Desk is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of February 8, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Trade Desk. 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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The Trade Desk (NASDAQ: TTD), DraftKings (NASDAQ: DKNG), and DataDog (NASDAQ: DDOG) operate in different industries, but one thing they have in common is revenue growth. Find out why Trade Desk is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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The Trade Desk (NASDAQ: TTD), DraftKings (NASDAQ: DKNG), and DataDog (NASDAQ: DDOG) operate in different industries, but one thing they have in common is revenue growth. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Datadog and Trade Desk.
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The Trade Desk (NASDAQ: TTD), DraftKings (NASDAQ: DKNG), and DataDog (NASDAQ: DDOG) operate in different industries, but one thing they have in common is revenue growth. Find out why Trade Desk is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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The Trade Desk (NASDAQ: TTD), DraftKings (NASDAQ: DKNG), and DataDog (NASDAQ: DDOG) operate in different industries, but one thing they have in common is revenue growth. This video will pit the three growth stocks against each other and let you know which is the best one to buy right now. Trade Desk is on the list -- but there are nine others you may be overlooking.
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61f686da-fad6-4f1e-a1af-d3ac88f1df83
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718332.0
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2023-03-08 00:00:00 UTC
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Notable Wednesday Option Activity: UNH, ACGL, DDOG
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DDOG
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-unh-acgl-ddog
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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 UnitedHealth Group Inc (Symbol: UNH), where a total volume of 13,376 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 44.6% of UNH's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $480 strike call option expiring March 17, 2023, with 531 contracts trading so far today, representing approximately 53,100 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $480 strike highlighted in orange:
Arch Capital Group Ltd (Symbol: ACGL) saw options trading volume of 10,803 contracts, representing approximately 1.1 million underlying shares or approximately 44.6% of ACGL's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $60 strike put option expiring June 16, 2023, with 10,410 contracts trading so far today, representing approximately 1.0 million underlying shares of ACGL. Below is a chart showing ACGL's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) options are showing a volume of 21,976 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 43.5% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Especially high volume was seen for the $45 strike put option expiring March 17, 2023, with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for UNH options, ACGL options, or DDOG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
VRAY Options Chain
Edwards Lifesciences market cap history
VHC 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.
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Especially high volume was seen for the $45 strike put option expiring March 17, 2023, with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of DDOG. Below is a chart showing ACGL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 21,976 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 43.5% 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 ACGL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 21,976 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 43.5% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Especially high volume was seen for the $45 strike put option expiring March 17, 2023, with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of DDOG.
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Below is a chart showing ACGL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 21,976 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 43.5% of DDOG's average daily trading volume over the past month, of 5.0 million shares. Especially high volume was seen for the $45 strike put option expiring March 17, 2023, with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of DDOG.
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Especially high volume was seen for the $45 strike put option expiring March 17, 2023, with 2,915 contracts trading so far today, representing approximately 291,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for UNH options, ACGL options, or DDOG options, visit StockOptionsChannel.com. Below is a chart showing ACGL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 21,976 contracts thus far today.
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8a4e2dae-5f18-4b6c-8690-e85f86711f4f
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718333.0
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2023-03-08 00:00:00 UTC
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5 Struggling Stocks to Buy at a Discount
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DDOG
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https://www.nasdaq.com/articles/5-struggling-stocks-to-buy-at-a-discount-5
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nan
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nan
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The strong rally in growth stocks earlier this year has started to fizzle out, but some names didn't fully participate. A lot of promising names are still trading more than 50% off their 52-week highs -- and in some cases well below their previous high-water marks.
Roku (NASDAQ: ROKU), Datadog (NASDAQ: DDOG), Teladoc Health (NYSE: TDOC), Peloton Interactive (NASDAQ: PTON), and Match Group (NASDAQ: MTCH) are five stocks among the names trading lower this year. Let's see why they aren't partying like it's 2023 right now.
Roku
Let's start with Roku. The leading platform for streaming video through TVs is trading 55% below its 52-week high, but it gets worse. Roku stock is down a blistering 87% since peaking two summers ago.
Roku has gone from being profitable to posting wide losses. The steady sequential run of growth in average revenue per user ended in its latest quarter as advertisers are paring back their marketing missives in this dicey economic climate. Roku still deserves better than its stock chart.
Image source: Getty Images.
Roku is entertaining a record 70 million active accounts, and those viewers are spending an average of 3.8 hours a day on the platform. People aren't going to stop streaming anytime soon, and Roku has double the U.S. market share of its nearest rival. The slide in ad revenue is a drag, but sponsors will be back when consumers are ready to spend again. The red ink isn't a good look, but Roku's guidance calls for a return to positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for next year.
The future is bright for a leader in a niche that keeps growing, and now it has its sights set on international opportunities. Whether it recovers on its own or a hungry giant gets on bended knee, Roku is a value at current levels.
Datadog
When growth stocks initially started to contract in early 2021, Datadog rose above the malaise. The cloud-based platform for delivering an enterprise with early downtime reports and other analytic essentials was growing too quickly to ignore. Datadog would go on to peak in November 2021, and it's currently trading 53% below its 52-week high.
Growth has slowed for Datadog. Revenue rose 44% for Datadog's latest quarter, a far cry from when top-line gains were soaring 84% a year earlier. It sees its business growth getting almost cut in half again this year. Datadog's forecast is for revenue to climb just 23% to 24% for all of 2023. Businesses are responding to weakening customer trends, but you can't skimp on monitoring your uptime and digging deeper into your analytics. Datadog's bark may soon be better than its bite.
Teladoc Health
You have to go down a long way to take Teladoc's pulse these days. The telehealth specialist that championed virtual consultations with medical pros through the early days of the pandemic has fallen out of favor now that office visits are the picture of health. The stock is trading 67% below its 52-week high.
Here's another rough snapshot of how fast Teladoc has fallen out of favor. When it closed on its purchase of Livongo Health three years ago, the acquisition was worth $18.5 billion in a cash and stock deal. Today all of Teladoc is worth just a quarter of the Livongo purchase.
Revenue has slowed sharply since the initial pandemic spike. Its top-line growth slowed to 18% last year, including a 15% slip in its latest quarter. It's targeting a 6% to 11% increase in 2023. Competition has intensified, but Teladoc remains a big brand in a specialty that makes sense as a way to curb skyrocketing healthcare costs.
Peloton Interactive
There's no denying that Peloton has been pedaling backward these days. Revenue plummeted 30% in its latest quarter, and the former connected fitness darling isn't even posting its subscriber engagement metrics anymore.
Peloton has become a punchline, but that was true even when its popularity was ascending. The at-home fitness game changer is struggling to sell its gear these days, but users are surprisingly sticking around. The 3.033 million in connected fitness subscribers it has heading into this year is 10% higher than it was a year earlier. With the stock 59% off its 52-week high and 92% below its all-time high, the upside is high if Peloton can start pedaling in the right direction.
Match Group
Stocks like Teladoc and Peloton became time capsule entries for the early stages of the COVID-19 crisis. Match Group should be thriving now that folks are out and about, scratching the itch to be social. Match Group is the company behind Tinder, the leading online dating app. It also has dozens of other popular love connection platforms. It's naturally the bellwether of dating app stocks.
The problem for Match Group investors is that -- like a Tinder profile using an overly flattering picture -- reality hasn't been as attractive as what was initially promised. Revenue declined 2% in its latest quarter, and even the 5% growth it would represent on a currency-neutral basis isn't impressive. Match Group sees 5% to 10% growth this year. It seems like a boring date, but with the stock trading at a reasonable 15 times next year's projected earnings it could be a long-term relationship worth exploring.
10 stocks we like better than Roku
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
Rick Munarriz has positions in Roku. The Motley Fool has positions in and recommends Datadog, Match Group, Peloton Interactive, Roku, and Teladoc Health. 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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Roku (NASDAQ: ROKU), Datadog (NASDAQ: DDOG), Teladoc Health (NYSE: TDOC), Peloton Interactive (NASDAQ: PTON), and Match Group (NASDAQ: MTCH) are five stocks among the names trading lower this year. The steady sequential run of growth in average revenue per user ended in its latest quarter as advertisers are paring back their marketing missives in this dicey economic climate. The red ink isn't a good look, but Roku's guidance calls for a return to positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for next year.
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Roku (NASDAQ: ROKU), Datadog (NASDAQ: DDOG), Teladoc Health (NYSE: TDOC), Peloton Interactive (NASDAQ: PTON), and Match Group (NASDAQ: MTCH) are five stocks among the names trading lower this year. Datadog When growth stocks initially started to contract in early 2021, Datadog rose above the malaise. The Motley Fool has positions in and recommends Datadog, Match Group, Peloton Interactive, Roku, and Teladoc Health.
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Roku (NASDAQ: ROKU), Datadog (NASDAQ: DDOG), Teladoc Health (NYSE: TDOC), Peloton Interactive (NASDAQ: PTON), and Match Group (NASDAQ: MTCH) are five stocks among the names trading lower this year. Datadog When growth stocks initially started to contract in early 2021, Datadog rose above the malaise. The Motley Fool has positions in and recommends Datadog, Match Group, Peloton Interactive, Roku, and Teladoc Health.
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Roku (NASDAQ: ROKU), Datadog (NASDAQ: DDOG), Teladoc Health (NYSE: TDOC), Peloton Interactive (NASDAQ: PTON), and Match Group (NASDAQ: MTCH) are five stocks among the names trading lower this year. Roku Let's start with Roku. Match Group sees 5% to 10% growth this year.
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2b2ac9ab-c1c4-4606-a4f7-7186b5815407
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718334.0
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2023-03-06 00:00:00 UTC
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Don't Make the Mistake of Passing on This Hot Stock Again
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DDOG
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https://www.nasdaq.com/articles/dont-make-the-mistake-of-passing-on-this-hot-stock-again
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nan
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nan
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Cloud-based IT analytics company Datadog (NASDAQ: DDOG) was a pandemic winner, soaring more than 300% between 2020 and 2022. But shares have since fallen, sitting more than 60% off highs today.
Does Datadog deserve the cold shoulder it's gotten in recent months? Here is why investors shouldn't dismiss the stock as a fad and why the company could again produce tremendous gains for patient investors.
Datadog's fundamental excellence at work
Think about how many computers, devices, and software apps you run into at your workplace. A company's technology assets (tech stack) have many moving pieces, so getting everything to work together correctly and efficiently can be challenging. What if there's an error somewhere, a malfunction where an IT employee needs to find the cause of the problem, sifting through endless amounts of data and computer logs?
Datadog solves this problem; it's a cloud-based software company that observes an enterprise's devices and servers, networks, and software applications, and tracks everything happening. IT professionals can troubleshoot problems, secure their systems, and ensure the technology stack runs efficiently by searching through the information Datadog collects.
Look to Datadog's operating results to see its value to its customers; the company's already approaching $2 billion in annual revenue and is cash-flow-positive, generating $0.21 in free cash flow for every revenue dollar earned.
DDOG Revenue (TTM) data by YCharts.
The company has approximately 23,200 total customers and a net-dollar revenue-retention rate higher than 130%. In other words, Datadog could stop picking up new clients and still grow revenue by 30% because of how its customers spend more over time. Management estimates that its total addressable market could grow to $62 billion by 2026, meaning that Datadog has a lot of room to expand over the coming years. The company's aggressive investments in research and development signal that Datadog will be pursuing that growth.
How long will Datadog stay cheap?
Some people may argue that Datadog is an expensive stock, but sometimes you get what you pay for. Datadog's long runway to growth and strong cash-flow generation (something many other growth stocks lack) does make a solid argument that the stock should fetch a higher valuation than some other software as a service (SaaS) stocks. The stock's current price-to-sales (P/S) ratio of 14 is near its lowest point since the COVID-19 crash nearly three years ago.
DDOG PS Ratio data by YCharts
Rising interest rates can dump water on stock valuations, so investors shouldn't buy Datadog for a quick profit. The stock's valuation may continue falling, especially in an unstable economic environment that potentially impacted 2023 guidance.
Watch for this potential problem
Many overlook the potential impact that stock-based compensation can have on investment returns. Many technology companies pay employees in stock to preserve cash for the business. But issuing too much stock can negatively impact investors.
You can see below that revenue per share grew much slower than total revenue over the past year because stock-based compensation increased significantly.
DDOG Revenue Per Share (TTM) data by YCharts.
You don't want to see this repeatedly happen over the long term, so investors should watch it moving forward. The good news is that Datadog has about $1.1 billion in net cash (total cash minus debt) on the books; given the company's strong cash flow, eventual share repurchases could begin reeling in that share count. That's more likely as the company matures than while the business is innovating and chasing growth.
Nonetheless, Datadog remains a potential future blue-chip technology stock that could pay handsomely for investors willing to buy and hold shares. It might not happen overnight, but most good things take time.
10 stocks we like better than Datadog
When our award-winning 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 February 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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DDOG PS Ratio data by YCharts Rising interest rates can dump water on stock valuations, so investors shouldn't buy Datadog for a quick profit. Cloud-based IT analytics company Datadog (NASDAQ: DDOG) was a pandemic winner, soaring more than 300% between 2020 and 2022. DDOG Revenue (TTM) data by YCharts.
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DDOG PS Ratio data by YCharts Rising interest rates can dump water on stock valuations, so investors shouldn't buy Datadog for a quick profit. DDOG Revenue Per Share (TTM) data by YCharts. Cloud-based IT analytics company Datadog (NASDAQ: DDOG) was a pandemic winner, soaring more than 300% between 2020 and 2022.
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DDOG PS Ratio data by YCharts Rising interest rates can dump water on stock valuations, so investors shouldn't buy Datadog for a quick profit. Cloud-based IT analytics company Datadog (NASDAQ: DDOG) was a pandemic winner, soaring more than 300% between 2020 and 2022. DDOG Revenue (TTM) data by YCharts.
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DDOG Revenue Per Share (TTM) data by YCharts. Cloud-based IT analytics company Datadog (NASDAQ: DDOG) was a pandemic winner, soaring more than 300% between 2020 and 2022. DDOG Revenue (TTM) data by YCharts.
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a40588f1-2ec4-44fb-9ac2-baa04ad0a3e5
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718335.0
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2023-03-03 00:00:00 UTC
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Validea Guru Fundamental Report for DDOG - 3/3/2023
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DDOG
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-ddog-3-3-2023
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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.
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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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e4148d85-be0e-4f4b-ab35-842846534ac3
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718336.0
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2023-03-02 00:00:00 UTC
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April 14th Options Now Available For Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/april-14th-options-now-available-for-datadog-ddog
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Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $72.00 strike price has a current bid of $4.55. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $72.00, but will also collect the premium, putting the cost basis of the shares at $67.45 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $73.51/share today.
Because the $72.00 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 6.32% return on the cash commitment, or 53.69% 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 $72.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $74.00 strike price has a current bid of $5.50. If an investor was to purchase shares of DDOG stock at the current price level of $73.51/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $74.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.15% if the stock gets called away at the April 14th 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 $74.00 strike highlighted in red:
Considering the fact that the $74.00 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 7.48% boost of extra return to the investor, or 63.57% 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 $73.51) to be 73%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
Stock Splits
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Funds Holding MLCO
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 $74.00 strike highlighted in red: Considering the fact that the $74.00 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 begin trading today, for the April 14th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $74.00 strike highlighted in red: Considering the fact that the $74.00 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 begin trading today, for the April 14th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $74.00 strike highlighted in red: Considering the fact that the $74.00 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 begin trading today, for the April 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 14th 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 April 14th 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 $74.00 strike highlighted in red: Considering the fact that the $74.00 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 begin trading today, for the April 14th expiration.
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4ed3ca72-0fa1-4eb3-ae0f-00641d1dc54a
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718337.0
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2023-03-02 00:00:00 UTC
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1 Magnificent Growth Stock Down 61% to Buy Hand Over First, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/1-magnificent-growth-stock-down-61-to-buy-hand-over-first-according-to-wall-street
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nan
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Many growth stocks fell sharply this past year as high inflation and rising interest rates dragged the Nasdaq Composite into a bear market. It's generally not a good thing when a stock takes a hit, but that drawdown did create a compelling buying opportunity where Datadog (NASDAQ: DDOG) is concerned, at least according to Wall Street. The stock is currently down 54% from its high, but 28 out of the 36 analysts who follow Datadog said they believe it will outperform the market over the next year.
Is it time to buy this growth stock?
Datadog benefits from long-term tailwinds
Datadog offers observability and security software. Its platform provides real-time visibility across the corporate technology stack, aggregating data from every system and service to help businesses identify and resolve performance problems and security threats. Datadog provides over 600 integrations that make its software easy to deploy, and its platform leans on artificial intelligence (AI) to automate anomaly detection, root cause analysis, and incident alerts.
The company received widespread praise from industry analysts. Datadog was recently recognized as a leader in application performance monitoring by Gartner, and it was recognized as a leader in AI for IT operations by Forrester Research. Datadog also achieved a strong market presence in other software verticals, including cloud infrastructure monitoring, log monitoring, and database monitoring.
That success stems from its broad portfolio and its prodigious capacity for innovation. In 2018, Datadog became the first company to unify metrics, traces, and logs -- the "three pillars of observability" -- on a single platform. Since then, the company has branched into cloud security and several new categories of observability software, including developer experience and digital experience monitoring, and its pipeline is still packed with upcoming product releases.
In a nutshell, the Datadog platform helps businesses keep their critical applications and infrastructure performing and secure while also eliminating the complexity created by disjointed single-point solutions. That value proposition will only become more relevant in the future, as digital transformation and cloud migration make the corporate IT environment more nebulous and complex. With that in mind, Datadog believes its total addressable market will grow at 11% annually to reach $62 billion by 2026.
Datadog faces near-term headwinds
Datadog reported strong financial results last year. Its customer count climbed 23% to 23,200, and the average customer spent 30% more, indicating that more businesses are expanding usage and adopting multiple products. In turn, revenue increased 63% to $1.7 billion and non-GAAP earnings soared 104% to $0.98 per diluted share.
However, management believes its financial performance will worsen materially in 2023. Guidance implies revenue and non-GAAP earnings will grow just 24% and 11%, respectively, this year. That could certainly lead to volatility in the stock price. But patient investors have no cause for alarm. Many businesses are scrutinizing spending decisions more closely in an effort to control costs against the backdrop of an uncertain economy, and Datadog is not immune to that headwind.
Fortunately, economic turbulence is a temporary problem, and Datadog should have no problem regaining its momentum in a more favorable environment.
The stock trades at a reasonable price
Currently, shares trade at 14.7 times sales, a discount to the three-year average of 23.7 times sales, and a reasonable price to pay given Datadog's growth potential. Patient investors should indeed consider taking a small position in this growth stock right now.
That said, there is no guarantee that Datadog will outperform the market over the next year, even if the consensus forecast on Wall Street implies otherwise. But I think investors who hold the stock for at least five years will be well rewarded.
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's generally not a good thing when a stock takes a hit, but that drawdown did create a compelling buying opportunity where Datadog (NASDAQ: DDOG) is concerned, at least according to Wall Street. Its platform provides real-time visibility across the corporate technology stack, aggregating data from every system and service to help businesses identify and resolve performance problems and security threats. Datadog provides over 600 integrations that make its software easy to deploy, and its platform leans on artificial intelligence (AI) to automate anomaly detection, root cause analysis, and incident alerts.
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It's generally not a good thing when a stock takes a hit, but that drawdown did create a compelling buying opportunity where Datadog (NASDAQ: DDOG) is concerned, at least according to Wall Street. Datadog also achieved a strong market presence in other software verticals, including cloud infrastructure monitoring, log monitoring, and database monitoring. Since then, the company has branched into cloud security and several new categories of observability software, including developer experience and digital experience monitoring, and its pipeline is still packed with upcoming product releases.
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It's generally not a good thing when a stock takes a hit, but that drawdown did create a compelling buying opportunity where Datadog (NASDAQ: DDOG) is concerned, at least according to Wall Street. The stock trades at a reasonable price Currently, shares trade at 14.7 times sales, a discount to the three-year average of 23.7 times sales, and a reasonable price to pay given Datadog's growth potential. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen.
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It's generally not a good thing when a stock takes a hit, but that drawdown did create a compelling buying opportunity where Datadog (NASDAQ: DDOG) is concerned, at least according to Wall Street. The stock is currently down 54% from its high, but 28 out of the 36 analysts who follow Datadog said they believe it will outperform the market over the next year. Is it time to buy this growth stock?
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94ba4f2b-8cf2-41fd-b00e-ea4a26bee86f
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718338.0
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2023-03-01 00:00:00 UTC
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3 Top Stocks to Buy and Hold for the Next Decade and Beyond
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DDOG
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-and-hold-for-the-next-decade-and-beyond-0
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nan
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nan
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The U.S. equity market has been battling with rising inflation and interest rate hikes for the past year. Now, with stronger-than-expected jobs growth and a higher-than-expected Consumer Price Index (CPI, a metric used to gauge inflation) in January 2023, worries about further interest rate hikes seem to have gripped the minds of investors. The minutes from the Federal Open Market Committee's February meeting seem to reassert these fears since all the members are in favor of pushing up interest rates. That, coupled with fears of recession, seems to have extended the bear market.
Historically, stock market corrections have been mostly followed by strong bull rallies, though such rallies may be out a few months, or even years. Hence, this period can also prove to be a good time for bargain-hunting high-quality stocks such as Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG), which are driven by secular tailwinds.
Amazon
Share prices of e-commerce, cloud computing, and digital advertising player Amazon came crashing down to earth in 2022. Although the stock performed better in early 2023, it is nowhere close to its former glory. Investors are worried about the company's weak outlook for the first quarter of 2023 in the face of slow growth, lack of profitability of the e-commerce business, and a weak cloud computing market.
Yet Amazon may soon see better days. The company is focusing on several cost-cutting initiatives such as layoffs, hiring freezes, reducing excess warehouse capacity, closing several brick-and-mortar stores, and aiming to increase the operational efficiency of the e-commerce fulfilment network. While this may not be enough to ensure profitability for the e-commerce business in the short run due to rising inflation and reduced consumer discretionary spending, it is definitely a move in the right direction.
Amazon's extensive e-commerce business is also driving its rapidly growing digital advertising business. By advertising to customers with high purchase intent and at the point of purchase, the company has reported better conversion rates (9.87% for Amazon website ads, and 1.33% for other e-commerce sites).
Amazon's cloud computing business, Amazon Web Services (AWS), is also currently facing a slowdown (expected mid-teens-percentage year-over-year growth for the next two quarters compared to 20%-plus growth for past several quarters). While enterprises are currently scaling down cloud spending amid a tough economic environment, CEO Andy Jassy believes that market leader AWS will benefit from a shift from on-premise infrastructure (currently accounts for 90% to 95% IT spending) to the cloud in the next 10 to 15 years.
Amazon is currently trading at 1.9 times trailing twelve-month sales, which is very close to its 5-year low valuation. Legendary value investor Bill Miller also considers Amazon to be one of the cheapest stocks in the market now. Coupled with its growth prospects, Amazon seems to be a bargain buy now.
Snowflake
The rising adoption of digitization across all walks of life is now resulting in the continuous generation of astronomical amounts of data. Snowflake offers a cloud-native data platform that helps organizations integrate, share, derive meaningful insights from, and build data-driven applications from this otherwise siloed data stored in disparate sources.
Snowflake differentiates itself from many competing cloud data platforms in several aspects. First, the company's platform is agnostic about the client's cloud data provider. Second, the company has made it easier for clients to build customized applications directly on the Snowflake data cloud by launching the Snowpark developer platform. Third, beyond structured data, the company is also focusing on deriving insights from unstructured data. To that effect, the company has acquired artificial intelligence-based text and document automation company Applica. Finally, Snowflake has also announced plans to acquire Mobilize.Net's SnowConvert suite of premium tools, which will help customers efficiently migrate legacy databases to the data cloud.
Although not yet profitable on generally accepted accounting principles or GAAP basis (due to high levels of stock-based compensation), Snowflake posted a non-GAAP net income of $38.5 million in the recent quarter (third quarter of fiscal 2023 ending Oct. 31, 2022). However, with the company expecting improvements in non-GAAP operating margins (from -3% in fiscal 2022 to 3% in fiscal 2023), the company may also become GAAP positive in the coming years.
Datadog
Datadog's cloud-native application performance and infrastructure monitoring platform enables organizations to collect diagnostic data across workloads, servers, databases, and functions onto a unified dashboard in real time. This allows the company's engineering team to identify and resolve potential pain points quickly, reducing the risk of cyber threats and business disruptions, and improving the overall user experience.
Thanks to its market-leading position in observability, Datadog has reported solid growth in the past few years. The company managed to surpass consensus revenue and earnings estimates in the fourth quarter of 2022 (ending Dec. 31, 2022). The number of large customers (those who contribute over $100,000 in annual recurring revenue, or ARR) rose 38% year over year to 2,780. With large customers accounting for 85% of the company's ARR, Datadog's business model is relatively less sensitive to economic downturns. The company has also been successful in its cross-selling and upselling strategy, as is evident from a dollar-based net retention rate of over 130% for the past 22 quarters.
Datadog's weak 2023 guidance did not impress investors. However, the company boasts a strong balance sheet -- $1.9 billion in cash and $837 million in total debt -- a major advantage in a high-interest environment. Although Datadog is already profitable on a non-GAAP basis, GAAP losses have widened due to high stock-based compensation expenses (SBC, which amounted to 22% of fiscal 2022 revenues). Datadog needs to control its SBC to become GAAP profitable in the coming years.
10 stocks we like better than Amazon.com
When our award-winning 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 Amazon.com 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 February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Datadog, 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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Hence, this period can also prove to be a good time for bargain-hunting high-quality stocks such as Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG), which are driven by secular tailwinds. Now, with stronger-than-expected jobs growth and a higher-than-expected Consumer Price Index (CPI, a metric used to gauge inflation) in January 2023, worries about further interest rate hikes seem to have gripped the minds of investors. The company is focusing on several cost-cutting initiatives such as layoffs, hiring freezes, reducing excess warehouse capacity, closing several brick-and-mortar stores, and aiming to increase the operational efficiency of the e-commerce fulfilment network.
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Hence, this period can also prove to be a good time for bargain-hunting high-quality stocks such as Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG), which are driven by secular tailwinds. Amazon Share prices of e-commerce, cloud computing, and digital advertising player Amazon came crashing down to earth in 2022. Although not yet profitable on generally accepted accounting principles or GAAP basis (due to high levels of stock-based compensation), Snowflake posted a non-GAAP net income of $38.5 million in the recent quarter (third quarter of fiscal 2023 ending Oct. 31, 2022).
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Hence, this period can also prove to be a good time for bargain-hunting high-quality stocks such as Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG), which are driven by secular tailwinds. Investors are worried about the company's weak outlook for the first quarter of 2023 in the face of slow growth, lack of profitability of the e-commerce business, and a weak cloud computing market. Amazon's cloud computing business, Amazon Web Services (AWS), is also currently facing a slowdown (expected mid-teens-percentage year-over-year growth for the next two quarters compared to 20%-plus growth for past several quarters).
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Hence, this period can also prove to be a good time for bargain-hunting high-quality stocks such as Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG), which are driven by secular tailwinds. Amazon's cloud computing business, Amazon Web Services (AWS), is also currently facing a slowdown (expected mid-teens-percentage year-over-year growth for the next two quarters compared to 20%-plus growth for past several quarters). Although not yet profitable on generally accepted accounting principles or GAAP basis (due to high levels of stock-based compensation), Snowflake posted a non-GAAP net income of $38.5 million in the recent quarter (third quarter of fiscal 2023 ending Oct. 31, 2022).
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d660d59d-1feb-4377-ab2c-519e89947072
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718339.0
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2023-03-01 00:00:00 UTC
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Don't Be Fooled By Its Valuation: This Stock Could Be a Top Dog in 2023
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DDOG
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https://www.nasdaq.com/articles/dont-be-fooled-by-its-valuation%3A-this-stock-could-be-a-top-dog-in-2023
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nan
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nan
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The technology-heavy Nasdaq Composite Index got off to a hot start this year. However, even equities are not immune to Newton's "what goes up, must come down" law of physics. While several companies in the software industry have beaten guidance and surprised investors during this earnings season, a common denominator for them has been that their near-term outlooks remain underwhelming. As a result, tech stocks in particular have fallen in the wake of January's fleeting surges, and valuations are beginning to normalize.
Investors could argue that some of these companies have entered oversold territory, and that they may represent compelling long-term buys at their current valuations. One such company is the analytics platform Datadog (NASDAQ: DDOG).
Datadog offers best-of-breed solutions
Datadog's platform is interesting because it operates at the intersection of several growing end markets, among them cloud computing, data monitoring, and other information technology operations. While big tech companies like Amazon, Microsoft, and Alphabet all have strong presences in these markets, Datadog has been able to separate itself and compete with these behemoths.
Research firm Gartner publishes annual reports that benchmark technology companies of all sizes and industries. Within these reports, Gartner includes an illustrative exhibit that it calls the "magic quadrant" -- a visual representation of company cohorts that ranks businesses in categories such as "market leader," "visionary," "niche player," etc.
In 2022, Gartner placed Datadog in the highly coveted top-right corner of the magic quadrant in the application performance monitoring (APM) category. This region of the graph features companies with well-thought-out and complete visions, as well as strong abilities to execute on them. For reference, Datadog was ranked above Amazon Web Services, Cisco, and Microsoft.
While the giants of big tech may enjoy larger operating budgets, Datadog has clearly executed on its vision on a consistent basis and has done so with significantly less capital. However, even a top dog is not immune to broader economic conditions. As the big tech leaders have warned during recent earnings calls, corporate budgets are tight and demand for expensive software is slackening. Despite its solid fourth-quarter performance, Datadog's near-term outlook was a bit muted.
What does Wall Street think?
In 2022, Datadog reported $1.7 billion in revenue, which represented an increase of 63%. Moreover, its free cash flow was $354 million, which represented 41% growth. However, despite that cash flow influx, Datadog's free cash flow margin decreased from 24% in 2021 to 21% in 2022. Management attributed that margin deterioration primarily to an increase in property, plant, and equipment purchases. Given that Datadog is still in growth mode and very much investing in its roadmap, it is not entirely surprising to see some fluctuations in margins from year to year. The more important takeaway is that the company is growing its revenue at a far greater pace than its costs, which has led to more cash flow on an absolute basis.
Despite its relatively smaller size, a number of reputable financial institutions are covering Datadog's stock from an equity research standpoint, including Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley, and Wells Fargo.
Following its Q4 report, Wall Street seemed divided about the stock. However, peeling the onion may show a different picture. While many of the banks cut their price targets on Datadog, several others raised theirs. Moreover, even after those price reductions, several banks still see upside relative to where the stock trades today. For example, Goldman reduced its target from $128 per share to $114 per share, but that still implies a roughly 50% upside from its price as of this writing.
Despite the disparities in how analysts responded to the Q4 results, the most encouraging common denominator is that the majority of these banks still have buy or buy-equivalent ratings on the stock.
Image Source: Getty Images.
Keep an eye on valuation
Currently, Datadog's profitability profile is volatile because it remains in growth mode. In some quarters, the company is nominally profitable, while during others, it operates at a net loss. For this reason, valuation metrics such as the price-to-earnings ratio are not entirely useful to gauge the stock.
Another metric to analyze is price-to-sales multiple. Datadog's current trailing-12-month price-to-sales ratio is nearly 15. For reference, it was approximately 46 in March 2021, so the market is applying a significantly lower valuation to Datadog than it was about a year ago. However, during the last 12 months, the company has grown revenue by more than 60% and generated more free cash flow, which it has invested back into the business.
Given that the overwhelming majority of Wall Street banks that follow the stock remain bullish on Datadog, and that the company's valuation has seemingly been discounted, the stock could be worth a look for your portfolio.
10 stocks we like better than Datadog
When our award-winning 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 February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Adam Spatacco has positions in Alphabet, Amazon.com, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Bank of America, Cisco Systems, Datadog, Goldman Sachs Group, JPMorgan Chase, and Microsoft. 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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One such company is the analytics platform Datadog (NASDAQ: DDOG). While several companies in the software industry have beaten guidance and surprised investors during this earnings season, a common denominator for them has been that their near-term outlooks remain underwhelming. Within these reports, Gartner includes an illustrative exhibit that it calls the "magic quadrant" -- a visual representation of company cohorts that ranks businesses in categories such as "market leader," "visionary," "niche player," etc.
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One such company is the analytics platform Datadog (NASDAQ: DDOG). However, despite that cash flow influx, Datadog's free cash flow margin decreased from 24% in 2021 to 21% in 2022. Despite its relatively smaller size, a number of reputable financial institutions are covering Datadog's stock from an equity research standpoint, including Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley, and Wells Fargo.
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One such company is the analytics platform Datadog (NASDAQ: DDOG). Given that the overwhelming majority of Wall Street banks that follow the stock remain bullish on Datadog, and that the company's valuation has seemingly been discounted, the stock could be worth a look for your portfolio. See the 10 stocks *Stock Advisor returns as of February 8, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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One such company is the analytics platform Datadog (NASDAQ: DDOG). While big tech companies like Amazon, Microsoft, and Alphabet all have strong presences in these markets, Datadog has been able to separate itself and compete with these behemoths. Despite the disparities in how analysts responded to the Q4 results, the most encouraging common denominator is that the majority of these banks still have buy or buy-equivalent ratings on the stock.
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c5bf8259-76e3-4012-88fb-4de32a5ab64f
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718340.0
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2023-02-28 00:00:00 UTC
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Nasdaq Sell-Off: 3 Growth Stocks Down 60% to 75% Worth Buying On the Dip
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DDOG
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https://www.nasdaq.com/articles/nasdaq-sell-off%3A-3-growth-stocks-down-60-to-75-worth-buying-on-the-dip
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nan
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nan
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The Nasdaq-100 index is often used as a yardstick for the technology sector's performance because it hosts 100 of the largest tech companies listed on the Nasdaq stock exchange.
The Nasdaq-100 plunged by 33% in 2022, marking its worst year since the global financial crisis in 2008. Thankfully, 2023 is off to a more positive start, with the index jumping by as much as 17%. But investors aren't out of the woods just yet, because concerns about inflation and rising interest rates have knocked it off those highs in February.
Despite this shaky period, certain tech companies are delivering spectacular growth in their underlying businesses, which isn't necessarily being reflected in their stock prices. That spells opportunity for investors. Here are three picks that might be worth buying on the dip.
1. Confluent: Down 74% from its all-time high
Confluent (NASDAQ: CFLT) is pioneering an emerging industry called data streaming, and it's changing your life without you knowing it. Many of the real-time experiences you enjoy on your smartphone and other digital devices are powered by the technology, and an estimate by the International Data Corp. predicts 90% of the world's 1,000 largest companies will be using it by 2025.
Confluent's customers number in the thousands, including 991 that are spending at least $100,000 per year with the company. Familiar names like Walmart and Domino's Pizza are on Confluent's roster, and they're using data streaming in different ways.
Walmart, for example, designed its inventory management system around the technology. Its physical and online stores speak to each other behind the scenes in real-time, so when a particular product flies off the shelves, it's replenished before it runs out of stock. Put simply, Confluent is the reason you can walk into Walmart and find exactly what you're looking for almost every time. Domino's uses Confluent to get a granular, real-time overview of what's happening in each of its stores.
Confluent generated $585.9 million in revenue during 2022, up 51% year over year, but that's a mere fraction of what it says is a $60 billion total addressable market. While its stock remains heavily beaten down, Wall Street is as bullish as ever and not a single analyst tracked by The Wall Street Journal recommends selling.
2. Datadog: Down 60% from its all-time high
Datadog (NASDAQ: DDOG) is flying on the back of a surge in the adoption of cloud computing. As more businesses shift their operations online, their digital presence grows more complex. Datadog offers a monitoring platform that can automatically trawl for bugs and issues that might otherwise go unnoticed.
Datadog can be used for e-commerce, financial services, and everything in between. Now that companies are serving millions of customers through online channels, it's more difficult to determine whether they're having a positive experience. Sometimes a drop in revenue is the only indicator, at which point it's too late to save the relationship. Datadog can alert the business to website or mobile app issues that might only be affecting a small subset of users, so even the most underrepresented customers (by sales) are taken care of.
Despite the economic slowdown in 2022, Datadog was one of just a handful of companies that constantly exceeded forecasts. It raised its revenue guidance not once, not twice, but three times throughout the year, finally delivering $1.68 billion -- up 63% compared to 2021.
Datadog is yet another stock for which Wall Street holds an overwhelmingly bullish consensus. The majority of analysts tracked by The Wall Street Journal have given it the highest possible buy rating, and not a single one recommends selling.
3. DigitalOcean: Down 75% from its all-time high
Technology giants Amazon, Microsoft, and Google parent Alphabet have a combined market capitalization of almost $4 trillion. Competing with them is no easy feat, especially for a tiny company like DigitalOcean (NYSE: DOCN) with a worth of just $3 billion.
DigitalOcean is a provider of cloud services, but its target customers are small to mid-sized businesses that are either in start-up mode or have fewer than 500 employees. Whether those enterprises need simple data storage and website hosting, or more advanced cloud tools to develop software or stream video to customers, DigitalOcean has a solution.
Not only is the company competing with the likes of Amazon Web Services, Microsoft Azure, and Google Cloud -- which are the cloud sector's top three providers -- but in many respects, it's winning. In the recent fourth quarter of 2022, it grew its revenue by 36% year over year, a faster pace than each of those industry leaders.
DigitalOcean has found success by offering its customers transparent pricing, direct support, and a simple platform with one-click tools that allow for easy deployment, eliminating the need for expensive in-house technical staff. It isn't necessarily worthwhile for the cloud giants to compete with DigitalOcean on those points, because they make most of their money from larger organizations with more complex needs and much bigger budgets.
DigitalOcean generated $576 million in total revenue during 2022, but it estimates its addressable opportunity could be as large as $98 billion in 2023, so it has barely scratched the surface. For investors, the best gains could come over the long term, because that opportunity is projected to nearly double to $195 billion by 2026.
With DigitalOcean stock down 75% from its all-time high, this might be a great chance to get in ahead of that growth.
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*Stock Advisor returns as of February 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Confluent, Datadog, DigitalOcean, Domino's Pizza, Microsoft, and Walmart. 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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Datadog: Down 60% from its all-time high Datadog (NASDAQ: DDOG) is flying on the back of a surge in the adoption of cloud computing. Many of the real-time experiences you enjoy on your smartphone and other digital devices are powered by the technology, and an estimate by the International Data Corp. predicts 90% of the world's 1,000 largest companies will be using it by 2025. Whether those enterprises need simple data storage and website hosting, or more advanced cloud tools to develop software or stream video to customers, DigitalOcean has a solution.
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Datadog: Down 60% from its all-time high Datadog (NASDAQ: DDOG) is flying on the back of a surge in the adoption of cloud computing. While its stock remains heavily beaten down, Wall Street is as bullish as ever and not a single analyst tracked by The Wall Street Journal recommends selling. DigitalOcean: Down 75% from its all-time high Technology giants Amazon, Microsoft, and Google parent Alphabet have a combined market capitalization of almost $4 trillion.
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Datadog: Down 60% from its all-time high Datadog (NASDAQ: DDOG) is flying on the back of a surge in the adoption of cloud computing. Confluent generated $585.9 million in revenue during 2022, up 51% year over year, but that's a mere fraction of what it says is a $60 billion total addressable market. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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Datadog: Down 60% from its all-time high Datadog (NASDAQ: DDOG) is flying on the back of a surge in the adoption of cloud computing. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Confluent wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Amazon.com, Confluent, Datadog, DigitalOcean, Domino's Pizza, Microsoft, and Walmart.
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85e23bc8-13ab-4eb2-ba55-875901d6e940
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718341.0
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2023-02-28 00:00:00 UTC
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2 Colossal Growth Stocks to Buy Hand Over Fist Right Now, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-colossal-growth-stocks-to-buy-hand-over-fist-right-now-according-to-wall-street
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CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) have reported colossal revenue growth over the past year, but both stocks have still fallen sharply amid the Nasdaq bear market. Shares of CrowdStrike and Datadog are currently down 60% and 61%, respectively. But the Wall Street consensus is that both stocks are worth buying right now.
In fact, 82% of analysts currently expect CrowdStrike to beat the market over the next year, while 78% of analysts expect Datadog to outperform. Better yet, not a single analyst recommends selling either stock at the present time. In short, Wall Street is overwhelmingly bullish on both companies.
Here's what investors should know about CrowdStrike and Datadog.
1. CrowdStrike is a leader in cybersecurity software
CrowdStrike specializes in cybersecurity. The company offers 23 cloud modules that span several industry verticals; each of those products is delivered through a single software agent that can be installed without restarting the device. That feature is noteworthy because most vendors burden customers with multiple product installations that generally require system reboots. In a nutshell, CrowdStrike provides more functionality with less friction compared to competing vendors.
The CrowdStrike platform also packs industry-leading artificial intelligence (AI). It crowdsources data in a way that other solutions don't, according to management, which makes its AI engine uniquely effective in detecting and preventing threats. That advantage has helped CrowdStrike achieve a leadership position in endpoint security, cloud-native application protection, and threat intelligence, among other cybersecurity categories.
Growth has decelerated over the past year due to the challenging economy, but CrowdStrike still reported solid results in the third quarter. Its customer count increased 44% to 21,146, and its net retention rate stayed above 120%, meaning the average customer increased its spending by more than 20% over the past year. In turn, third-quarter revenue climbed 53% to $581 million, and cash flow from operating activities rose 53% to $243 million.
Going forward, CrowdStrike should be able to maintain or even accelerate its momentum, especially when business spending rebounds. Digital transformation means cybersecurity will only become more essential in the future. Trends like cloud computing, remote work, and the proliferation of connected devices should be particularly powerful tailwinds since they create new attack surfaces that hackers can exploit. Management estimates its total addressable market will reach $98 billion by 2025, but CrowdStrike has a knack for innovation, and its product roadmap could push that figure to $158 billion by 2026.
Shares currently trade at 13.4 times sales, a bargain compared to the three-year average of 35.5 times sales, and a reasonable price to pay for a company with as much potential as CrowdStrike. Investors should take the opportunity to buy a few shares of this growth stock.
2. Datadog is a leader in observability software
Datadog specializes in observability and security. Its platform includes more than a dozen software products that provide real-time visibility into the health and performance of applications and infrastructure. More broadly, Datadog facilitates collaboration between operations, development, and security teams, which accelerates time to resolution for performance problems and security threats, and hastens the development of new products.
Datadog provides more than 600 integrations that make its software easy to deploy, and its platform features a powerful AI engine (Watchdog) that automates anomaly detection, root cause analysis, and incident alerts. Those capabilities, coupled with the broad scope of the Datadog platform, have made the company a major player in several software verticals. In fact, industry analysts have recognized the company as a leader in application performance monitoring, cloud infrastructure monitoring, and log monitoring, among other categories.
Not surprisingly, Datadog is growing quickly. Its customer count increased 23% to 23,200 over the past year, and average spending per customer increased more than 30%. In turn, fourth-quarter revenue rose 44% to $469 million and non-GAAP net income climbed 30% to $0.26 per diluted share. As a caveat, growth is decelerating, and that trend will likely continue in the near term, as business spending has slowed in response to economic challenges. But trends like digital transformation and cloud migration leave Datadog well positioned to reaccelerate its momentum when the economy rebounds.
Management says its total addressable market will reach $62 billion by 2026, leaving plenty of green field for future growth, and shares currently trade at 14.8 times sales, a big discount to the three-year average of 38.8 times sales. That creates an attractive buying opportunity for long-term investors.
10 stocks we like better than CrowdStrike
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They just revealed what they believe are the ten best stocks for investors to buy right now... and CrowdStrike wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 8, 2023
Trevor Jennewine has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) have reported colossal revenue growth over the past year, but both stocks have still fallen sharply amid the Nasdaq bear market. That advantage has helped CrowdStrike achieve a leadership position in endpoint security, cloud-native application protection, and threat intelligence, among other cybersecurity categories. Trends like cloud computing, remote work, and the proliferation of connected devices should be particularly powerful tailwinds since they create new attack surfaces that hackers can exploit.
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CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) have reported colossal revenue growth over the past year, but both stocks have still fallen sharply amid the Nasdaq bear market. More broadly, Datadog facilitates collaboration between operations, development, and security teams, which accelerates time to resolution for performance problems and security threats, and hastens the development of new products. In fact, industry analysts have recognized the company as a leader in application performance monitoring, cloud infrastructure monitoring, and log monitoring, among other categories.
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CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) have reported colossal revenue growth over the past year, but both stocks have still fallen sharply amid the Nasdaq bear market. In fact, 82% of analysts currently expect CrowdStrike to beat the market over the next year, while 78% of analysts expect Datadog to outperform. CrowdStrike is a leader in cybersecurity software CrowdStrike specializes in cybersecurity.
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CrowdStrike (NASDAQ: CRWD) and Datadog (NASDAQ: DDOG) have reported colossal revenue growth over the past year, but both stocks have still fallen sharply amid the Nasdaq bear market. Shares of CrowdStrike and Datadog are currently down 60% and 61%, respectively. Here's what investors should know about CrowdStrike and Datadog.
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894f9918-04df-41c2-ae3d-4d558c3ea450
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718342.0
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2023-02-28 00:00:00 UTC
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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term.
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DDOG
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https://www.nasdaq.com/articles/got-%245000-3-tech-stocks-to-buy-and-hold-for-the-long-term.
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nan
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nan
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Patience: It's more than just a Guns N' Roses song.
Patience takes time to develop, just like great investing. Let's be honest: Stock purchases rarely reap immediate benefits. It takes time for promising stocks to reach their potential and make their investors rich.
So let's have a look at three stocks worth buying and holding for the long term: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), and Amazon (NASDAQ: AMZN).
Image source: Getty Images.
Airbnb
When I think of tech stocks worth buying and holding for the long term, Airbnb is consistently one of the first companies on my list.
The company went public in December 2020, which was horrible timing. The COVID pandemic and the associated travel restrictions put the company behind the eight ball from the start. However, with travel restrictions now mostly a thing of the past, Airbnb has fully hit its stride.
Its recent fourth-quarter earnings report is an almost perfect example of a company executing its business model.
The company beat profit and revenue expectations.
Fourth-quarter revenue jumped 24% year over-year.
Airbnb guided above analyst expectations for the first quarter of 2023.
What's more, analysts expect the company to continue delivering double-digit revenue growth over the next two years. Meanwhile, as the company's cash position grows, it's increasingly likely that management will return more cash to investors in the form of stock buybacks, like the $2 billion plan Airbnb announced in August 2022.
In summary, Airbnb is a company firing on all cylinders. And that's the sort of stock worth owning for the long term.
DataDog
The second tech stock on my list is Datadog.
What makes the company so appealing is its product offering. As a provider of cloud-based application performance management (APM) software, Datadog sits at a highly lucrative crossroads. It serves enterprise customers that have migrated their essential applications from internal data centers to cloud-based providers.
These organizations require tools to observe, secure, investigate, and troubleshoot high-priority applications running on the cloud. For that reason, Datadog's suite of APM tools has become indispensable to many companies. Meanwhile, its customer growth shows that demand for its products is skyrocketing. As of the end of last year, Datadog had 317 customers with annual recurring revenue of more than $1 million -- up 47% from a year earlier. Overall revenue increased 63% year-over-year to $1.7 billion.
The rise of artificial intelligence, such as ChatGPT, might be dominating the headlines right now, but cloud services remain a secular growth story worth remembering. Datadog is a stock worth owning for the long term.
Amazon
My third and final tech stock to buy and hold for the long term is Amazon.
Granted, after years of outperformance, Amazon's stock has fallen on hard times. Over the last 12 months, shares are down 36%, and they're more than 48% off their all-time high.
However, that presents an opportunity for those who still believe in Amazon's prospects. Indeed, the current pullback in the stock price offers great value for investors that understand Amazon's long-term advantages don't disappear just because the share price takes a dip.
Simply put, Amazon's massive distribution network gives the company enormous advantages, allowing it to deliver its products quicker -- and cheaper -- than the competition. Moreover, its huge Prime network, with over 200 million members, gives the company a gigantic recurring revenue stream.
By the same token, Amazon Web Services (AWS) is the market leader in the rapidly expanding cloud services sub-sector, while Amazon advertising continues to take market share from ad-giants Alphabet and Meta Platforms.
And while it's true that CEO Andy Jassy hasn't set the world on fire since taking over for Jeff Bezos, I still have faith in him. Moreover, Jassy has been faced with tough headwinds ranging from inflation to supply chain disruptions. Eventually those headwinds will abate, and when they do, I expect Amazon shares to move significantly higher.
Find out why Airbnb is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of February 8, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Airbnb, Alphabet, and Amazon.com. The Motley Fool has positions in and recommends Airbnb, Alphabet, Amazon.com, Datadog, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So let's have a look at three stocks worth buying and holding for the long term: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), and Amazon (NASDAQ: AMZN). The rise of artificial intelligence, such as ChatGPT, might be dominating the headlines right now, but cloud services remain a secular growth story worth remembering. Simply put, Amazon's massive distribution network gives the company enormous advantages, allowing it to deliver its products quicker -- and cheaper -- than the competition.
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So let's have a look at three stocks worth buying and holding for the long term: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), and Amazon (NASDAQ: AMZN). Airbnb When I think of tech stocks worth buying and holding for the long term, Airbnb is consistently one of the first companies on my list. By the same token, Amazon Web Services (AWS) is the market leader in the rapidly expanding cloud services sub-sector, while Amazon advertising continues to take market share from ad-giants Alphabet and Meta Platforms.
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So let's have a look at three stocks worth buying and holding for the long term: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), and Amazon (NASDAQ: AMZN). Airbnb When I think of tech stocks worth buying and holding for the long term, Airbnb is consistently one of the first companies on my list. Amazon My third and final tech stock to buy and hold for the long term is Amazon.
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So let's have a look at three stocks worth buying and holding for the long term: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), and Amazon (NASDAQ: AMZN). Airbnb When I think of tech stocks worth buying and holding for the long term, Airbnb is consistently one of the first companies on my list. DataDog The second tech stock on my list is Datadog.
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e14ba30b-296e-4a35-b797-b5888d09d59e
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718343.0
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2023-02-27 00:00:00 UTC
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Is Datadog Stock a Buy Now?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-stock-a-buy-now-1
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nan
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nan
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Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. This might leave investors wondering if the stock is due for a quick rise to catch up to its software-as-a-service (SaaS) peers.
Is Datadog primed for a greater upside? Or is there something else going on that's inhibiting its stock price? Let's find out.
Datadog's software plays a significant role in the data revolution
Datadog's software helps IT teams monitor how their systems are working. Business systems are becoming more complex as data drives every decision. For example, there might be five data sources that flow into a data center to be stored, then that info is utilized by a data analytics program; after that, different end users like engineering, the sales team, or executives harness the results to drive decisions. If something goes wrong in that chain, it's hard to determine where the fault is without hours of troubleshooting.
That's where Datadog's software comes in. By deploying Datadog's solutions, IT teams gain visibility into data flows and can see where something is going wrong. With additional add-ons, customers can also harness the power of artificial intelligence (AI) to solve problems before they affect users downstream.
This is the core of what Datadog does, but it also has more offerings, including security management, log management, and continuous testing.
Datadog recently reported fourth-quarter results, but it gave investors some concerns.
Q4 results weren't what investors were expecting
In the fourth quarter, Datadog's revenue was $469 million, a 44% jump over last year's Q4. It also delivered free cash flow (FCF) of $96.4 million, a 21% margin. However, Datadog couldn't turn that into actual profit, with its earnings per share (EPS) coming in at a $0.09 loss.
The gap between free cash flow and EPS can be attributed to one thing: stock-based compensation. In Q4, Datadog's stock-based compensation bill totaled $112.5 million -- a 99% increase over last year. This likely triggered the 10% fall in the days after its earnings release, as Datadog generated a $0.02 per-share profit last year.
Unfortunately, this trend will likely continue, thanks to management's disappointing 2023 guidance.
Management guided for $2.08 billion in revenue for 2023 at the midpoint, indicating 24% growth. While that's not bad guidance for the economic environment we're in, its operating expense growth has investors concerned. Management expects to grow its operating expenses in 2023 somewhere in the low 30% range, with headcount rising about 20%.
With operating expenses rising faster than revenue, it's not what investors were looking for from Datadog's Q4 report. As a result, the stock hasn't done well in 2023.
But is it at a price range where you could consider buying it?
An expensive stock
Although Datadog's valuation has come down from its peaks, it's still relatively high.
DDOG PS Ratio data by YCharts
Couple that with growth slowing down and operating expenses rising, and the stock remains expensive.
So why would you buy it? It all comes down to long-term opportunities.
Datadog is still rolling out its platform to new clients each quarter. Additionally, many industries haven't experienced the data revolution powering that the largest companies are using today. Essentially, the primary reason to buy Datadog's stock is that it's operating in a market opportunity that will hopefully be $62 billion by 2026, as estimated by third-party research firm Gartner.
I own shares of Datadog, but this Q4 report was disappointing. However, I remain confident in the long-term prospects of Datadog's offering. This could be a rough year for the stock if earnings trend in the wrong direction, but if you're patient, there will likely be better opportunities to pick up shares of Datadog along the way.
10 stocks we like better than Datadog
When our award-winning 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 February 8, 2023
Keithen Drury has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. DDOG PS Ratio data by YCharts Couple that with growth slowing down and operating expenses rising, and the stock remains expensive. With additional add-ons, customers can also harness the power of artificial intelligence (AI) to solve problems before they affect users downstream.
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Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. DDOG PS Ratio data by YCharts Couple that with growth slowing down and operating expenses rising, and the stock remains expensive. Q4 results weren't what investors were expecting In the fourth quarter, Datadog's revenue was $469 million, a 44% jump over last year's Q4.
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Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. DDOG PS Ratio data by YCharts Couple that with growth slowing down and operating expenses rising, and the stock remains expensive. Datadog's software plays a significant role in the data revolution Datadog's software helps IT teams monitor how their systems are working.
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Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. DDOG PS Ratio data by YCharts Couple that with growth slowing down and operating expenses rising, and the stock remains expensive. Q4 results weren't what investors were expecting In the fourth quarter, Datadog's revenue was $469 million, a 44% jump over last year's Q4.
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5d2ebda8-2a46-4c5c-9563-f3c3242ff42e
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718344.0
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2023-02-24 00:00:00 UTC
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Validea Guru Fundamental Report for DDOG - 2/24/2023
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DDOG
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https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-ddog-2-24-2023
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nan
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nan
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Below is Validea's daily 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
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.
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 daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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07ab0468-03d6-427b-9b1f-b55f81845032
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718345.0
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2023-02-22 00:00:00 UTC
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Palo Alto Networks Is The Leading Cyber Security Play
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DDOG
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https://www.nasdaq.com/articles/palo-alto-networks-is-the-leading-cyber-security-play
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nan
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Results from F-5 Networks (NASDAQ: FFIV) through Datadog (NASDAQ: DDOG), including Checkpoint Software (NASDAQ: CHKP) and Cloudflare (NASDAQ: NET), have put the bottom in cyber security stocks, and now Palo Alto Networks (NASDAQ: PANW) is leading them higher. Palo Alto Networks is the world's largest cyber-security provider, so it is no wonder it is a go-to name for today’s needs. The company’s transformation from a product to a cloud-based services company also drives growth.
The takeaway for investors is that cybersecurity is still a growing industry, and Palo Alto Networks is the leader.
"We continue to see our teams execute well in the midst of macroeconomic challenges, helping customers consolidate their security architectures," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "The performance of our software-based and cloud-delivered portfolio validates the significant investments we have made over the last several years and has enabled us to raise our billings and NGS ARR guidance."
Palo Alto Networks Hits It Out Of The Park
Palo Alto Networks had a strong quarter in which it posted double-digit growth, better than expected results, wider margins and a bottom line beat that has been liked to an “Aaron Judge-like” event. The top line came in at $1.66 billion, up 25.8% versus last year and 60 bps ahead of consensus.
The 60 bps isn’t much on its own but was driven by strength in the Subscription and Services segment. Subscription and Services revenue grew by 29% to outpace the 14.2% increase in product sales, accounting for 78.5% of the total revenue. This is a resounding testament to the company’s transformation and should sustain the business if not grow long into the future.
Regarding future business, the company’s remaining performance obligation increased by 29% to outpace the topline growth. This is coupled with guidance that calls for 25% to 26% revenue growth in 2023 which more than suggests earnings strength will be present again. Others in the group have seen growth slow significantly from the peaks in 2021 and 2022.
Regarding earnings, the Q2 results have adjusted EPS at $1.05, almost double the prior year, beating the consensus by more than a quarter dollar. This led to an increase in bottom-line guidance that is now forecasting EPS of $3.97 at the low end compared to the $3.82 expected by the analysts.
Palo Alto Spurs The Analysts To Action
While other cybersecurity stocks have seen muted analyst activity in the wake of their reports, which is not true of Palo Alto Networks, this company sparked at least 20 major reports, including price target increases. The analysts have been pushing this stock higher for the last 12 months and that trend looks like it is about to stay the same. Now, the Marketbeat.com consensus is near $234 and about 27% above the post-release price action.
"Taking a step back, the cloud transformation at (Palo Alto) is well underway and the company is becoming the Aaron Judge of cyber security as larger, more strategic deals are getting inked despite the 'best days are in the rear view mirror' Street naysayer crowd," Wedbush analyst Dan Ives wrote in his note to clients. He maintained an Outperform rating while upping his target to $210.
The Technical Outlook: Palo Alto Networks Moves Higher
Shares of Palo Alto Networks gained more than 10% following the release and looked like they will continue higher. The price action created a large green candle moving up from the 30-day moving average, a sign of support. The next hurdle for the stock is the $188 level already providing some resistance. If the market can get above there, the stock should move from $200 to $210 on its way up to set a new all-time high.
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 F-5 Networks (NASDAQ: FFIV) through Datadog (NASDAQ: DDOG), including Checkpoint Software (NASDAQ: CHKP) and Cloudflare (NASDAQ: NET), have put the bottom in cyber security stocks, and now Palo Alto Networks (NASDAQ: PANW) is leading them higher. "We continue to see our teams execute well in the midst of macroeconomic challenges, helping customers consolidate their security architectures," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "The performance of our software-based and cloud-delivered portfolio validates the significant investments we have made over the last several years and has enabled us to raise our billings and NGS ARR guidance."
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Results from F-5 Networks (NASDAQ: FFIV) through Datadog (NASDAQ: DDOG), including Checkpoint Software (NASDAQ: CHKP) and Cloudflare (NASDAQ: NET), have put the bottom in cyber security stocks, and now Palo Alto Networks (NASDAQ: PANW) is leading them higher. Palo Alto Spurs The Analysts To Action While other cybersecurity stocks have seen muted analyst activity in the wake of their reports, which is not true of Palo Alto Networks, this company sparked at least 20 major reports, including price target increases. The Technical Outlook: Palo Alto Networks Moves Higher Shares of Palo Alto Networks gained more than 10% following the release and looked like they will continue higher.
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Results from F-5 Networks (NASDAQ: FFIV) through Datadog (NASDAQ: DDOG), including Checkpoint Software (NASDAQ: CHKP) and Cloudflare (NASDAQ: NET), have put the bottom in cyber security stocks, and now Palo Alto Networks (NASDAQ: PANW) is leading them higher. Palo Alto Networks Hits It Out Of The Park Palo Alto Networks had a strong quarter in which it posted double-digit growth, better than expected results, wider margins and a bottom line beat that has been liked to an “Aaron Judge-like” event. Palo Alto Spurs The Analysts To Action While other cybersecurity stocks have seen muted analyst activity in the wake of their reports, which is not true of Palo Alto Networks, this company sparked at least 20 major reports, including price target increases.
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Results from F-5 Networks (NASDAQ: FFIV) through Datadog (NASDAQ: DDOG), including Checkpoint Software (NASDAQ: CHKP) and Cloudflare (NASDAQ: NET), have put the bottom in cyber security stocks, and now Palo Alto Networks (NASDAQ: PANW) is leading them higher. Palo Alto Networks Hits It Out Of The Park Palo Alto Networks had a strong quarter in which it posted double-digit growth, better than expected results, wider margins and a bottom line beat that has been liked to an “Aaron Judge-like” event. Subscription and Services revenue grew by 29% to outpace the 14.2% increase in product sales, accounting for 78.5% of the total revenue.
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7c5dd19b-d8a5-49b2-a238-60442069eccf
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718346.0
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2023-02-22 00:00:00 UTC
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Best Stock to Buy: Cloudflare Stock vs. Palantir Stock vs. DataDog Stock
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DDOG
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-cloudflare-stock-vs.-palantir-stock-vs.-datadog-stock
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nan
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nan
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Cloudflare (NYSE: NET), Palantir (NYSE: PLTR), and DataDog (NASDAQ: DDOG) are capturing investors' attention with their rapid growth and innovative services. This video will compare these three growth stocks across key metrics to determine which offers investors the best risk versus return.
*Stock prices used were the afternoon prices of Feb. 20, 2023. The video was published on Feb. 22, 2023.
10 stocks we like better than Palantir Technologies
When our award-winning 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 Palantir Technologies 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 February 8, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare, Datadog, and Palantir Technologies. 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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Cloudflare (NYSE: NET), Palantir (NYSE: PLTR), and DataDog (NASDAQ: DDOG) are capturing investors' attention with their rapid growth and innovative services. This video will compare these three growth stocks across key metrics to determine which offers investors the best risk versus return. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Cloudflare (NYSE: NET), Palantir (NYSE: PLTR), and DataDog (NASDAQ: DDOG) are capturing investors' attention with their rapid growth and innovative services. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Cloudflare, Datadog, and Palantir Technologies.
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Cloudflare (NYSE: NET), Palantir (NYSE: PLTR), and DataDog (NASDAQ: DDOG) are capturing investors' attention with their rapid growth and innovative services. 10 stocks we like better than Palantir Technologies When our award-winning 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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Cloudflare (NYSE: NET), Palantir (NYSE: PLTR), and DataDog (NASDAQ: DDOG) are capturing investors' attention with their rapid growth and innovative services. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare, Datadog, and Palantir Technologies.
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b7ac894a-68b5-4c79-91c1-4db2a1ae55bd
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718347.0
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2023-02-21 00:00:00 UTC
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1 Growth Stock Down 58% to Buy Hand Over Fist, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/1-growth-stock-down-58-to-buy-hand-over-fist-according-to-wall-street
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nan
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nan
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Most consumers have grown comfortable managing their lives online. The digital world has delivered so much convenience that it's hard to walk away from it -- whether we're talking about the fun stuff like shopping and entertainment or life's necessities, like banking and paying bills.
Companies have invested billions of dollars in delivering those online experiences to consumers. Why? Because when a business reduces friction, it becomes easier for customers to spend money. Plus, the internet is a major cost saver -- a business doesn't have to manage a physical store, and customers can purchase its products from anywhere in the world with the click of a button.
But it's not always smooth sailing. Building and maintaining a digital ecosystem comes with challenges, and that's why Datadog (NASDAQ: DDOG) is so popular. But Datadog's business customers aren't the only ones who love its platform; it has Wall Street's vote, too. According to The Wall Street Journal, not a single analyst recommends selling Datadog stock.
Here's why investors might want to take that as a cue to buy in now.
Datadog serves an increasingly important need
Cloud computing technology is what enables businesses to seamlessly migrate their operations, and their touchpoints with consumers, into the digital realm. Gone are the days when a business had to maintain its own expensive physical servers if it wanted to host a website; now, it can rent powerful data centers from cloud providers like Amazon Web Services (AWS) and Microsoft Azure for a fraction of the cost.
Datadog is a cloud monitoring platform. Here's why that's important. When a business runs a physical store inside a mall, for example, it's easy to sense the level of customer satisfaction. A shopper can provide immediate positive or negative feedback to the store attendant.
But with an online store, that same business is serving thousands of faceless customers, and it's nearly impossible to tell if they're having a good experience until it's too late. Often, a drop in sales is the only indicator because unhappy consumers can simply hop onto a competing website with a couple of clicks.
Datadog can quickly pinpoint areas of friction on a website or a mobile application. It's especially powerful when it comes to bugs -- sometimes, a specific segment of customers in one geographic location might be unable to access a business's online store, and that issue could go completely unnoticed until a later date when it becomes apparent there were no sales.
So Datadog constantly monitors the cloud network for those issues and immediately alerts the business when they arise. It's not just for e-commerce, either. Datadog monitors the cloud for thousands of customers in financial services, gaming, and even entertainment.
Datadog delivered a blockbuster year in 2022
Naturally, with more businesses adopting cloud services, demand for cloud monitoring tools is growing. So despite an economic slowdown in 2022, with the majority of the technology sector slashing its forecasts, Datadog had one of its best years ever and actually raised its revenue guidance three times.
But once Datadog's official 2022 results came in on Feb. 16, they still blew away the high end of its guidance. The company generated $1.68 billion in revenue (compared to $1.654 billion expected), which represented growth of 63% compared to 2021.
Datadog has now grown its annual revenue by 1,575% since 2017.
Larger organizations tend to have more complex cloud networks. As a result, the cohort of Datadog's customers spending at least $1 million per year soared 47% to 317 in 2022. That segment grew even more quickly than the number of customers in the $100,000 annual spend category, which expanded by 38%.
Wall Street is on board with Datadog stock
The Wall Street Journal currently tracks 37 analysts who cover Datadog stock. As a group, they're extremely bullish, with 23 of them giving the stock the highest possible buy rating. Six are in the overweight (bullish) camp, with eight recommending holding. Not a single analyst recommends selling.
On an even more positive note for investors, Datadog is operating on the cusp of profitability. The company has always focused on investing in growth at the expense of profits (and it's clearly working), so it generated a net loss of $50 million in 2022. But that's a tiny sum on $1.68 billion in revenue, and given there's $1.9 billion in cash, equivalents, and short-term investments on its balance sheet, an annual loss of that size is sustainable for several years to come.
Despite Datadog's incredible operational performance in 2022, its stock was still caught up in the broad sell-off in the technology sector. It remains down 58% from its all-time high, but with the vote of its customers and the majority of Wall Street analysts, investors might want to take this opportunity to buy it now.
10 stocks we like better than Datadog
When our award-winning 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 February 8, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Building and maintaining a digital ecosystem comes with challenges, and that's why Datadog (NASDAQ: DDOG) is so popular. The digital world has delivered so much convenience that it's hard to walk away from it -- whether we're talking about the fun stuff like shopping and entertainment or life's necessities, like banking and paying bills. Gone are the days when a business had to maintain its own expensive physical servers if it wanted to host a website; now, it can rent powerful data centers from cloud providers like Amazon Web Services (AWS) and Microsoft Azure for a fraction of the cost.
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Building and maintaining a digital ecosystem comes with challenges, and that's why Datadog (NASDAQ: DDOG) is so popular. According to The Wall Street Journal, not a single analyst recommends selling Datadog stock. The company generated $1.68 billion in revenue (compared to $1.654 billion expected), which represented growth of 63% compared to 2021.
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Building and maintaining a digital ecosystem comes with challenges, and that's why Datadog (NASDAQ: DDOG) is so popular. According to The Wall Street Journal, not a single analyst recommends selling Datadog stock. Datadog serves an increasingly important need Cloud computing technology is what enables businesses to seamlessly migrate their operations, and their touchpoints with consumers, into the digital realm.
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Building and maintaining a digital ecosystem comes with challenges, and that's why Datadog (NASDAQ: DDOG) is so popular. On an even more positive note for investors, Datadog is operating on the cusp of profitability. That's right -- they think these 10 stocks are even better buys.
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3af86c6d-a3f8-404d-b69d-45a6a19d5d48
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718348.0
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2023-02-20 00:00:00 UTC
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Datadog Stock: Bear vs. Bull
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DDOG
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https://www.nasdaq.com/articles/datadog-stock%3A-bear-vs.-bull
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nan
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nan
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Datadog's (NASDAQ: DDOG) stock price dropped 7% after it posted its fourth-quarter report on Feb. 16. The data visualization software provider's revenue rose 44% year over year to $469 million, which beat analysts' estimates by $21 million. Its adjusted net income grew 28% to $90 million, or $0.26 per share, and topped expectations by seven cents.
For the full year, Datadog's revenue rose 63% to $1.68 billion as its adjusted net income grew 103% to $338 million. That represented a slight slowdown from 2021 when its revenue and adjusted net income increased 70% and 133%, respectively -- but it's still growing faster than many of its enterprise software peers.
Image source: Getty Images.
However, Datadog still lost more than half its value over the past 12 months as rising rates plucked the wind out of its sails. Let's review the bear and bull cases to see if this hypergrowth stock can make a comeback over the next few quarters.
What the bears will tell you about Datadog
Datadog's cloud-based platform collects diagnostic data from an organization's servers, databases, and software in real time. It aggregates that information onto unified dashboards for IT professionals, which makes it easier to spot potential problems.
That silo-busting approach is innovative, but the bears will point out that the company's growth is cooling off. For the first quarter, it expects its revenue to only rise 28%-29% year over year, compared to analysts' projections for 33% growth. For the full year, it expects its revenue to increase by 23%-24%, which also missed the consensus forecast for 30% growth.
It attributes that slowdown to macro headwinds for its lower-end customers and more conservative cloud spending across the enterprise market. During the conference call, CEO Olivier Pomel said Datadog's growth would reaccelerate "at some point" in the future as the cloud market warms up, but said it was "too difficult" to forecast amid this "level of macro uncertainty."
Datadog also expects its margins to be squeezed as its near-term growth cools off. On a non-GAAP (generally accepted accounting principles) basis, its operating margin expanded from 16% in 2021 to 19% in 2022, but it expects that figure to drop to 14%-15% in 2023. Unlike many other tech companies, which are laying off workers amid slower growth, Datadog still plans to increase its headcount by a mid-20s percentage in 2023.
That's a slowdown from its headcount increase of about 50% in 2022, but that ongoing expansion indicates it's prioritizing its long-term growth over its near-term profits. Datadog still expects its adjusted EPS to rise 4%-11% in 2023, but that also comes in far below Wall Street's expectations for 15% growth.
Investors might be more forgiving of that slowdown if Datadog's stock were trading at lower valuations. But at $80, Datadog still trades at 76 times forward earnings and 12 times this year's sales. JFrog, another silo-busting software play, is growing at a similar rate but trades at just 7 times this year's sales. Last but not least, Datadog remains unprofitable on a GAAP basis, and its net loss more than doubled from $21 million in 2021 to $50 million in 2022. All those issues could make Datadog an unbalanced and unappealing investment as long as interest rates keep rising.
What the bulls will tell you about Datadog
The bulls will tell you that Datadog is still growing at a healthy clip. Its total number of customers rose 23% year over year to 23,200 at the end of the fourth quarter, while its number of larger customers (those that generate over $100,000 in annual recurring revenue) increased 38% to 2,780. The expansion of that higher-value cohort should boost its margins and reduce its dependence on smaller and more macro-sensitive customers.
At the end of the fourth quarter, 42% of the company's customers were using four or more of its products, up from 33% a year ago, while its dollar-based net retention rate -- which gauges its year-over-year growth per existing customer -- has stayed above 130% for 22 consecutive quarters. Those numbers indicate that Datadog's strategy of "landing and expanding" is paying off.
Datadog's non-GAAP gross margin also expanded to 80% in 2022, compared to 78% in 2021 and 79% in 2020. Obstler expects that percentage metric to remain in the high 70s in the "mid to long term" as economies of scale kick in for its cloud infrastructure costs. Those stable gross margins also indicate it has plenty of pricing power.
As for its widening GAAP losses, they can mainly be attributed to the stock-based compensation (SBC) expenses, which consumed 22% of its revenue in 2022. Once it reins in its SBC, its GAAP numbers could quickly improve.
Which argument makes more sense?
Datadog could still have plenty of upside potential over the long term, but the bears could remain in control this year as the company's growth cools off. Its stock still isn't cheap, and its forward price-to-sales ratio could drop to the single digits before it's considered a bargain. Therefore, investors should keep an eye on Datadog, but it's too early to turn bullish right now.
10 stocks we like better than Datadog
When our award-winning 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 February 8, 2023
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and JFrog. 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 dropped 7% after it posted its fourth-quarter report on Feb. 16. During the conference call, CEO Olivier Pomel said Datadog's growth would reaccelerate "at some point" in the future as the cloud market warms up, but said it was "too difficult" to forecast amid this "level of macro uncertainty." Unlike many other tech companies, which are laying off workers amid slower growth, Datadog still plans to increase its headcount by a mid-20s percentage in 2023.
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Datadog's (NASDAQ: DDOG) stock price dropped 7% after it posted its fourth-quarter report on Feb. 16. The data visualization software provider's revenue rose 44% year over year to $469 million, which beat analysts' estimates by $21 million. For the full year, Datadog's revenue rose 63% to $1.68 billion as its adjusted net income grew 103% to $338 million.
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Datadog's (NASDAQ: DDOG) stock price dropped 7% after it posted its fourth-quarter report on Feb. 16. For the full year, Datadog's revenue rose 63% to $1.68 billion as its adjusted net income grew 103% to $338 million. Its total number of customers rose 23% year over year to 23,200 at the end of the fourth quarter, while its number of larger customers (those that generate over $100,000 in annual recurring revenue) increased 38% to 2,780.
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Datadog's (NASDAQ: DDOG) stock price dropped 7% after it posted its fourth-quarter report on Feb. 16. For the first quarter, it expects its revenue to only rise 28%-29% year over year, compared to analysts' projections for 33% growth. Datadog also expects its margins to be squeezed as its near-term growth cools off.
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4c2d5d53-90dd-418a-86bd-c7fed634f7b3
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718349.0
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2023-02-17 00:00:00 UTC
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A Bull Market Is Coming: 2 Magnificent Growth Stocks I Just Doubled Down On
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DDOG
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-magnificent-growth-stocks-i-just-doubled-down-on
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nan
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The stock market has been hit hard over the past year, and technology stocks overall were hit even harder. Difficult macroeconomic conditions -- including historically high inflation and rising interest rates -- weighed on investor sentiment, dragging most growth stocks to multiyear lows.
There's no way to know exactly when the current downturn will reverse, but history shows that every downturn has eventually ceded ground to a bull market. Most importantly, investors that back winning companies during a lull tend to be rewarded over the long run.
With that in mind, I went on a buying spree last week, stocking up on companies that I expect to prosper for years to come. In fact, there were two stocks I actually doubled down on. While they still represent a small part of my portfolio, I believe they could be big winners years from now.
Image source: Getty Images.
Cloudflare is reaching for the clouds
Let's face it: Few things are more annoying than going to a website and watching the icon spin while the site slowly loads, buckling under the weight of network congestion, throttled bandwidth, and slow internet speeds.
Cloudflare (NYSE: NET) helps solves this problem with its state-of-the-art content delivery network (CDN), which uses strategically placed servers and cached data to supercharge the process -- but that's just the beginning. The company provides a cloud-based global network that helps secure websites and applications, protect corporate networks and devices, and run programs and applications at the edge.
Don't take my word for it. Cloudflare was named a leader in the 2022 Gartner Magic Quadrant for web application and application programming interface (API) protection. The company was also recognized as a leader by Forrester Research in the area of web application firewalls.
Business is booming. In the fourth quarter, Cloudflare's revenue grew to $275 million, up 42% year over year, despite macroeconomic headwinds. This resulted in record adjusted earnings per share (EPS) of $0.06. Perhaps as importantly, Cloudflare delivered record operating cash flow of $78.1 million, equaling 28% of revenue, and record free cash flow of $33.7 million, or about 12% of revenue.
Strong customer metrics helped fuel the financial results as Cloudflare customers spending more than $100,000 annually climbed to 2,042, up 44% year over year and outpacing its overall customer gains. Furthermore, the company inked a record number of deals worth $500,000 or more.
Cloudflare's combination of sector leading technology, impressive customer metrics, and strong financial growth should provide fuel for the company's stock price. Furthermore, its impressive growth should continue as it has barely scratched the surface of its total addressable market (TAM), which management estimates at $125 billion.
Datadog could be an investor's best friend
The digital transformation is ongoing with more businesses adopting cloud computing than ever before. In the midst of this sea change, keeping a handle on customer-facing systems has never been more important. In the simplest terms, if customers can't connect, companies lose business, so it's crucial to keep those systems up and running.
That's where cloud-based observability pioneer Datadog (NASDAQ: DDOG) comes in. The company's platform provides a single dashboard that monitors the performance and security of infrastructure and cloud applications, notifying developers of problems before they become critical. Perhaps as importantly, the system detects anomalies that can be harbingers of future issues.
The proof is in the pudding. Datadog was named a leader in the 2022 Gartner's Magic Quadrant for application monitoring and observability, achieving the highest position for its ability to execute. The company was similarly identified as a leader in a Forrester report for providing best-in-class artificial intelligence for IT operations, cited for its data insights and visualization capability.
Even as market conditions deteriorated, Datadog's business has held up remarkably well. In the fourth quarter, Datadog's revenue grew 44% year over year to $469 million, while its adjusted earnings per share of $0.26 climbed 30%. Though the company isn't delivering profits according to generally accepted accounting principles (GAAP) yet, it does generate both operating and free cash flow, so profitability is likely just a matter of time, unlike many other young upstarts.
Its customer metrics are equally compelling as Datadog's most lucrative customers -- those generating $1 million in annual recurring revenue (ARR) -- climbed 47% year over year, which speaks to the mission-critical nature of its services.
Additionally, the company should have no problems sustaining its growth trajectory. Datadog's full-year 2022 revenue of $1.68 billion is a drop in the bucket compared to the company's market opportunity, which management estimates will top $62 billion by 2026.
A word on valuation
Eagle-eyed investors will notice a similarity between Cloudflare and Datadog, namely their lofty valuations. Neither stock has ever been cheap when evaluated with traditional valuation metrics. Cloudflare and Datadog are currently selling for about 13 and 10 times forward revenue estimates, respectively, while a typical price-to-sales ratio falls between 1 and 2. However, given their above-average growth rates in the face of various headwinds, their industry leadership, and the significant remaining market opportunities, these stocks have more than earned their premium.
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Danny Vena has positions in Cloudflare and Datadog. The Motley Fool has positions in and recommends Cloudflare 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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That's where cloud-based observability pioneer Datadog (NASDAQ: DDOG) comes in. Difficult macroeconomic conditions -- including historically high inflation and rising interest rates -- weighed on investor sentiment, dragging most growth stocks to multiyear lows. Cloudflare is reaching for the clouds Let's face it: Few things are more annoying than going to a website and watching the icon spin while the site slowly loads, buckling under the weight of network congestion, throttled bandwidth, and slow internet speeds.
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That's where cloud-based observability pioneer Datadog (NASDAQ: DDOG) comes in. Perhaps as importantly, Cloudflare delivered record operating cash flow of $78.1 million, equaling 28% of revenue, and record free cash flow of $33.7 million, or about 12% of revenue. Strong customer metrics helped fuel the financial results as Cloudflare customers spending more than $100,000 annually climbed to 2,042, up 44% year over year and outpacing its overall customer gains.
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That's where cloud-based observability pioneer Datadog (NASDAQ: DDOG) comes in. Strong customer metrics helped fuel the financial results as Cloudflare customers spending more than $100,000 annually climbed to 2,042, up 44% year over year and outpacing its overall customer gains. Its customer metrics are equally compelling as Datadog's most lucrative customers -- those generating $1 million in annual recurring revenue (ARR) -- climbed 47% year over year, which speaks to the mission-critical nature of its services.
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That's where cloud-based observability pioneer Datadog (NASDAQ: DDOG) comes in. The company provides a cloud-based global network that helps secure websites and applications, protect corporate networks and devices, and run programs and applications at the edge. In the fourth quarter, Cloudflare's revenue grew to $275 million, up 42% year over year, despite macroeconomic headwinds.
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ad9f4275-ccc2-435e-ae38-aeb99c84026c
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718350.0
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2023-02-17 00:00:00 UTC
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Datadog (DDOG) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q4-earnings-beat-estimates-revenues-rise-y-y
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Datadog DDOG reported fourth-quarter 2022 non-GAAP earnings of 26 cents per share, which increased 30% from the year-ago quarter and beat the Zacks Consensus Estimate for earnings by 36.8%.
The company’s net revenues of $469 million surpassed the consensus mark by 5.01%. The figure increased 43.9% year over year.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Quarter Details
In the fourth quarter of 2022, Datadog had about 2,780 customers with an annual run rate of $100K or more, up from 2010 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.
Operating Details
In the fourth quarter, Datadog’s adjusted gross margin expanded 30 basis points (bps) on a year-over-year basis to 80.6%.
Research & development expenses increased 52.6% on a year-over-year basis to $142.4 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, increased 170 bps to 30.3%.
Sales and marketing expenses increased 65.1% year over year to $125.3 million. Sales and marketing expenses, as a percentage of revenues, grew 340 bps to 26.7%.
General & administrative expenses increased 24.4% year over year, reaching $27.5 million in the reported quarter. General & administrative expenses, as a percentage of revenues, contracted 90 bps to 5.9%.
Datadog reported a non-GAAP operating income of $83.1 million compared with $70.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Datadog had cash, cash equivalents, restricted cash and marketable securities of $1.9 billion compared with $1.8 billion as of Sep 30, 2022.
Operating cash flow was $114.4 million in the reported quarter, up from 83.6 million reported in the previous quarter.
Free cash flow during the quarter was $96.4 million compared with $67.1 million in the prior quarter.
Guidance
For the first quarter of 2023, Datadog anticipates revenues between $466 million and $470 million. The Zacks Consensus Estimate for the same is pegged at $478.08 million.
Non-GAAP earnings are expected to be in the range of 22-24 cents per share. The consensus mark for earnings is pegged at 24 cents per share.
Non-GAAP operating income is expected in the range of $68-$72 million.
For 2023, Datadog anticipates revenues between $2.07 billion and $2.09 billion. The Zacks Consensus Estimate for the same is pegged at $2.32 billion.
Non-GAAP earnings are expected to be between $1.02 and $1.09 per share. The Zacks Consensus Estimate for earnings stands at $1.08 per share.
Non-GAAP operating income is expected in the range of $300-$320 million.
Due to rise in interest rates, net interest and other income is expected to be $75 million approximately.
Q4 Highlights
Datadog had its strongest quarter for new logo ARR bookings. The sales for new logo and cross selling have been rising year over year.
As of January 2023, only 37% of Fortune 500 are customers of Datadog. This indicates a huge potential in terms of revenues from the larger customers. There was high growth seen among the smaller ticket customers.
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, Audit trail for compliance and governance goals, Beta of native protection to block threats directly within and many more such helpful platforms.
Some of the notable deals done in fourth-quarter 2022 are a seven-figure deal with a Fortune 500 financial services company, a seven-figure deal with a major federal government agency, another seven-figure deal with a Japanese system integrator and a multimillion-dollar expansion deal with one of the world’s largest insurance companies.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can also consider some top-ranked stocks like ACM Research ACMR, ASM International ASMIY and Baidu BIDU, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACM Research, ASM International and Baidu are scheduled to report their quarterly results on Feb 24, Feb 28 and Feb 22, respectively.
The Zacks Consensus Estimate for ACMR’s fourth-quarter 2022 earnings is pegged at 10 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for ASMIY’s fourth-quarter 2022 earnings is pegged at $3.81 per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for BIDU’s fourth-quarter 2022 earnings is pegged at $2.14 per share, down 18.6% over the past 30 days.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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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Datadog DDOG reported fourth-quarter 2022 non-GAAP earnings of 26 cents per share, which increased 30% from the year-ago quarter and beat the Zacks Consensus Estimate for earnings by 36.8%. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report ASM International NV (ASMIY) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The company launched services like Observability Pipelines for customers to collect and change data from any source to any destination, Audit trail for compliance and governance goals, Beta of native protection to block threats directly within and many more such helpful platforms.
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Datadog DDOG reported fourth-quarter 2022 non-GAAP earnings of 26 cents per share, which increased 30% from the year-ago quarter and beat the Zacks Consensus Estimate for earnings by 36.8%. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report ASM International NV (ASMIY) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Research & development expenses increased 52.6% on a year-over-year basis to $142.4 million, driven by increased investments in Datadog’s platform.
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Datadog DDOG reported fourth-quarter 2022 non-GAAP earnings of 26 cents per share, which increased 30% from the year-ago quarter and beat the Zacks Consensus Estimate for earnings by 36.8%. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report ASM International NV (ASMIY) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote Quarter Details In the fourth quarter of 2022, Datadog had about 2,780 customers with an annual run rate of $100K or more, up from 2010 in the year-ago quarter.
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Datadog DDOG reported fourth-quarter 2022 non-GAAP earnings of 26 cents per share, which increased 30% from the year-ago quarter and beat the Zacks Consensus Estimate for earnings by 36.8%. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report ASM International NV (ASMIY) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote Quarter Details In the fourth quarter of 2022, Datadog had about 2,780 customers with an annual run rate of $100K or more, up from 2010 in the year-ago quarter.
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017c6f58-e4a3-4956-8b90-d20c6dec1859
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718351.0
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2023-02-17 00:00:00 UTC
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Validea Daily Guru Fundamental Report for DDOG - 2/17/2023
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DDOG
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https://www.nasdaq.com/articles/validea-daily-guru-fundamental-report-for-ddog-2-17-2023
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Below is Validea's daily 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.
Company Description: Datadog, Inc. (Datadog) provides monitoring and analytics platform for developers, information technology (IT) operations teams and business users in the cloud age. Its Software-as-a-Service (SaaS) platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations and business teams, understand user behavior and track key business metrics. The Company's platform provides visibility and insights into IT infrastructure, application performance and the real time events. Its platform is employed across public cloud, private cloud, on-premise and multi-cloud hybrid environments.
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
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.
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 daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily 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 Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's daily guru fundamental report for DATADOG INC (DDOG).
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fdc20053-2ae5-44cb-b447-427ed7392b87
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718352.0
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2023-02-16 00:00:00 UTC
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Why Datadog Stock Was Falling Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-was-falling-today
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. ET on Thursday. The software company reported slowing growth in the fourth quarter but still beat the consensus analyst estimate on revenue and earnings. The main issue was management's weak guidance.
The post-earnings drop brings the stock's year-to-date return to just under 15%. Investors clearly had high expectations for continued momentum in 2023, but they are having to readjust their forecasts.
So what
Datadog is executing well, particularly in winning over large customers. The number of customers spending over $1 million with Datadog grew 47% year over year. Total revenue increased by 44% year over year in the quarter. But it's the trajectory of quarterly growth that has the market concerned.
Datadog entered the quarter with a high price-to-sales ratio of about 18, which implies high growth expectations. But fourth-quarter growth shows a noticeable deceleration over the third quarter's 61% revenue increase.
Now what
Overall, management noted slower usage growth with existing customers, which will carry over into the first quarter, as noted by guidance. Management is now calling for revenue to be between $466 million and $470 million, representing an increase of 28% to 29% year over year. That's a steep deceleration, which explains why the stock is falling today.
While Datadog is seeing strong retention of existing customers and generated over $350 million of free cash flow last year, investors need to see more top-line growth to justify paying 74 times free cash flow. The lack of momentum may send the stock down further in the near term.
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John Ballard 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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What happened Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. The software company reported slowing growth in the fourth quarter but still beat the consensus analyst estimate on revenue and earnings. While Datadog is seeing strong retention of existing customers and generated over $350 million of free cash flow last year, investors need to see more top-line growth to justify paying 74 times free cash flow.
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What happened Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. Now what Overall, management noted slower usage growth with existing customers, which will carry over into the first quarter, as noted by guidance. While Datadog is seeing strong retention of existing customers and generated over $350 million of free cash flow last year, investors need to see more top-line growth to justify paying 74 times free cash flow.
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What happened Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. While Datadog is seeing strong retention of existing customers and generated over $350 million of free cash flow last year, investors need to see more top-line growth to justify paying 74 times free cash flow. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen.
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What happened Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. Investors clearly had high expectations for continued momentum in 2023, but they are having to readjust their forecasts. But fourth-quarter growth shows a noticeable deceleration over the third quarter's 61% revenue increase.
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9629b1ff-d8e8-4c10-885d-c9536581225a
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718353.0
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2023-02-16 00:00:00 UTC
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Technology Sector Update for 02/16/2023: DDOG, EPAM, CSCO, XLK, SOXX
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DDOG
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https://www.nasdaq.com/articles/technology-sector-update-for-02-16-2023%3A-ddog-epam-csco-xlk-soxx
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Technology stocks were retreating premarket Thursday. The Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) were recently slipping past 1%.
Datadog (DDOG) reported fiscal Q4 adjusted earnings of $0.26 per diluted share, up from $0.20 a year ago. Analysts polled by Capital IQ estimated $0.19. Datadog was shedding over 9% in value recently.
EPAM Systems (EPAM) reported Q4 non-GAAP earnings of $2.93 per diluted share, up from $2.76 a year earlier. Analysts polled by Capital IQ expected $2.68. EPAM Systems was down more than 5% recently.
Cisco Systems (CSCO) was climbing past 3% after it reported fiscal Q2 non-GAAP earnings of $0.88 per share, up from $0.84 a year earlier. Analysts polled by Capital IQ expected $0.86.
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 fiscal Q4 adjusted earnings of $0.26 per diluted share, up from $0.20 a year ago. The Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) were recently slipping past 1%. Cisco Systems (CSCO) was climbing past 3% after it reported fiscal Q2 non-GAAP earnings of $0.88 per share, up from $0.84 a year earlier.
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Datadog (DDOG) reported fiscal Q4 adjusted earnings of $0.26 per diluted share, up from $0.20 a year ago. EPAM Systems (EPAM) reported Q4 non-GAAP earnings of $2.93 per diluted share, up from $2.76 a year earlier. Analysts polled by Capital IQ expected $2.68.
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Datadog (DDOG) reported fiscal Q4 adjusted earnings of $0.26 per diluted share, up from $0.20 a year ago. The Technology Select Sector SPDR Fund (XLK) and the iShares Semiconductor ETF (SOXX) were recently slipping past 1%. EPAM Systems (EPAM) reported Q4 non-GAAP earnings of $2.93 per diluted share, up from $2.76 a year earlier.
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Datadog (DDOG) reported fiscal Q4 adjusted earnings of $0.26 per diluted share, up from $0.20 a year ago. Technology stocks were retreating premarket Thursday. EPAM Systems was down more than 5% recently.
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08688be7-4dd6-4194-94f6-bcd9e63f84cd
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718354.0
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2023-02-16 00:00:00 UTC
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Datadog (DDOG) Beats Q4 Earnings and Revenue Estimates
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-beats-q4-earnings-and-revenue-estimates
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nan
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Datadog (DDOG) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 36.84%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.15 per share when it actually produced earnings of $0.23, delivering a surprise of 53.33%.
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 $469.4 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 5.01%. This compares to year-ago revenues of $326.2 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 added about 20.7% since the beginning of the year versus the S&P 500's gain of 8%.
What's Next for Datadog?
While Datadog 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 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 $0.24 on $478.08 million in revenues for the coming quarter and $1.08 on $2.18 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 32% 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.
Vertex (VERX), another stock in the same industry, has yet to report results for the quarter ended December 2022. The results are expected to be released on March 8.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -37.5%. The consensus EPS estimate for the quarter has been revised 6.7% lower over the last 30 days to the current level.
Vertex's revenues are expected to be $125.36 million, up 12.3% from the year-ago quarter.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
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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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Datadog (DDOG) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Vertex, Inc. (VERX) : 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 Vertex, Inc. (VERX) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $469.4 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 5.01%.
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Datadog (DDOG) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Vertex, Inc. (VERX) : 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 $469.4 million for the quarter ended December 2022, surpassing the Zacks Consensus Estimate by 5.01%.
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Datadog (DDOG) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Vertex, Inc. (VERX) : Free Stock Analysis Report To read this article on Zacks.com click here. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
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4eb0d429-1233-46bb-a1d6-ae8cdeb295b7
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718355.0
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2023-02-15 00:00:00 UTC
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Pre-Market Earnings Report for February 16, 2023 : SO, CVE, DDOG, VMC, LH, ETR, EPAM, WST, ZBRA, POOL, RS, PARA
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DDOG
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-16-2023-%3A-so-cve-ddog-vmc-lh-etr-epam-wst-zbra
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nan
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nan
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The following companies are expected to report earnings prior to market open on 02/16/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
Southern Company (SO)is reporting for the quarter ending December 31, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.24. This value represents a 33.33% decrease compared to the same quarter last year. SO missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -1.5%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SO is 18.62 vs. an industry ratio of 11.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Cenovus Energy Inc (CVE)is reporting for the quarter ending December 31, 2022. The oil company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.48. This value represents a 11.63% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CVE is 7.75 vs. an industry ratio of 9.90.
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2022. The internet software company's consensus earnings per share forecast from the 11 analysts that follow the stock is $-0.09. This value represents a 325.00% decrease compared to the same quarter last year. In the past year DDOG has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 25%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -854.80 vs. an industry ratio of -36.20.
Vulcan Materials Company (VMC)is reporting for the quarter ending December 31, 2022. The building company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.29. This value represents a 3.20% increase compared to the same quarter last year. VMC missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -7.83%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for VMC is 34.88 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Laboratory Corporation of America Holdings (LH)is reporting for the quarter ending December 31, 2022. The medical/dental supplies company's consensus earnings per share forecast from the 7 analysts that follow the stock is $4.06. This value represents a 40.03% decrease compared to the same quarter last year. LH missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -0.64%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LH is 12.30 vs. an industry ratio of 25.60.
Entergy Corporation (ETR)is reporting for the quarter ending December 31, 2022. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.45. This value represents a 40.79% decrease compared to the same quarter last year. ETR missed the consensus earnings per share in the 1st calendar quarter of 2022 by -4.35%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ETR is 16.63 vs. an industry ratio of 11.00, implying that they will have a higher earnings growth than their competitors in the same industry.
EPAM Systems, Inc. (EPAM)is reporting for the quarter ending December 31, 2022. The information technology services company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.23. This value represents a 10.80% decrease compared to the same quarter last year. In the past year EPAM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 31.19%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EPAM is 38.79 vs. an industry ratio of 17.90, implying that they will have a higher earnings growth than their competitors in the same industry.
West Pharmaceutical Services, Inc. (WST)is reporting for the quarter ending December 31, 2022. The medical/dental supplies company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.39. This value represents a 31.86% decrease compared to the same quarter last year. WST missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -4.25%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for WST is 33.70 vs. an industry ratio of 25.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Zebra Technologies Corporation (ZBRA)is reporting for the quarter ending December 31, 2022. The machinery (thermal proc) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $4.13. This value represents a 1.90% decrease compared to the same quarter last year. ZBRA missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -13.1%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ZBRA is 20.17 vs. an industry ratio of 19.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Pool Corporation (POOL)is reporting for the quarter ending December 31, 2022. The leisure (recreational) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.01. This value represents a 12.61% decrease compared to the same quarter last year. In the past year POOL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.62%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for POOL is 20.06 vs. an industry ratio of 19.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Reliance Steel & Aluminum Co. (RS)is reporting for the quarter ending December 31, 2022. The metal production company's consensus earnings per share forecast from the 2 analysts that follow the stock is $4.47. This value represents a 34.55% decrease compared to the same quarter last year. In the past year RS has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.52%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for RS is 8.18 vs. an industry ratio of 11.90.
Paramount Global (PARA)is reporting for the quarter ending December 31, 2022. The media company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.18. This value represents a 30.77% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PARA is 12.61 vs. an industry ratio of 36.60.
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, Inc. (DDOG)is reporting for the quarter ending December 31, 2022. In the past year DDOG has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -854.80 vs. an industry ratio of -36.20.
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Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2022. In the past year DDOG has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -854.80 vs. an industry ratio of -36.20.
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Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2022. In the past year DDOG has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -854.80 vs. an industry ratio of -36.20.
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In the past year DDOG has beat the expectations every quarter. Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -854.80 vs. an industry ratio of -36.20.
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3bf15284-7158-4ea9-86d8-ec6e74074125
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718356.0
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2023-02-15 00:00:00 UTC
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Notable Wednesday Option Activity: PYPL, DDOG, HOOD
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DDOG
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-pypl-ddog-hood
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in PayPal Holdings Inc (Symbol: PYPL), where a total of 79,482 contracts have traded so far, representing approximately 7.9 million underlying shares. That amounts to about 52.4% of PYPL's average daily trading volume over the past month of 15.2 million shares. Particularly high volume was seen for the $60 strike put option expiring February 17, 2023, with 3,487 contracts trading so far today, representing approximately 348,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $60 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 28,170 contracts, representing approximately 2.8 million underlying shares or approximately 51.7% of DDOG's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $97 strike call option expiring February 17, 2023, with 3,460 contracts trading so far today, representing approximately 346,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange:
And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 43,186 contracts, representing approximately 4.3 million underlying shares or approximately 51.5% of HOOD's average daily trading volume over the past month, of 8.4 million shares. Especially high volume was seen for the $10 strike call option expiring February 17, 2023, with 6,114 contracts trading so far today, representing approximately 611,400 underlying shares of HOOD. Below is a chart showing HOOD's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for PYPL options, DDOG options, or HOOD options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Stocks Being Sold By Hedge Funds
BBLU Insider Buying
ETFs Holding HMTV
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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Especially high volume was seen for the $97 strike call option expiring February 17, 2023, with 3,460 contracts trading so far today, representing approximately 346,000 underlying shares of DDOG. Below is a chart showing PYPL's trailing twelve month trading history, with the $60 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 28,170 contracts, representing approximately 2.8 million underlying shares or approximately 51.7% of DDOG's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 43,186 contracts, representing approximately 4.3 million underlying shares or approximately 51.5% of HOOD's average daily trading volume over the past month, of 8.4 million shares.
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Below is a chart showing PYPL's trailing twelve month trading history, with the $60 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 28,170 contracts, representing approximately 2.8 million underlying shares or approximately 51.7% of DDOG's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 43,186 contracts, representing approximately 4.3 million underlying shares or approximately 51.5% of HOOD's average daily trading volume over the past month, of 8.4 million shares. Especially high volume was seen for the $97 strike call option expiring February 17, 2023, with 3,460 contracts trading so far today, representing approximately 346,000 underlying shares of DDOG.
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Below is a chart showing PYPL's trailing twelve month trading history, with the $60 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 28,170 contracts, representing approximately 2.8 million underlying shares or approximately 51.7% of DDOG's average daily trading volume over the past month, of 5.5 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 43,186 contracts, representing approximately 4.3 million underlying shares or approximately 51.5% of HOOD's average daily trading volume over the past month, of 8.4 million shares. Especially high volume was seen for the $97 strike call option expiring February 17, 2023, with 3,460 contracts trading so far today, representing approximately 346,000 underlying shares of DDOG.
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Below is a chart showing PYPL's trailing twelve month trading history, with the $60 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 28,170 contracts, representing approximately 2.8 million underlying shares or approximately 51.7% of DDOG's average daily trading volume over the past month, of 5.5 million shares. Especially high volume was seen for the $97 strike call option expiring February 17, 2023, with 3,460 contracts trading so far today, representing approximately 346,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $97 strike highlighted in orange: And Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 43,186 contracts, representing approximately 4.3 million underlying shares or approximately 51.5% of HOOD's average daily trading volume over the past month, of 8.4 million shares.
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c4ade3c3-2766-4734-b816-803e1eb94089
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718357.0
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2023-02-14 00:00:00 UTC
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Why Datadog, Atlassian, and Zscaler Stocks All Rallied on Tuesday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-atlassian-and-zscaler-stocks-all-rallied-on-tuesday
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nan
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nan
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What happened
The broader market indexes were mixed on Tuesday, as investors focused on the ongoing macroeconomic headwinds and what it meant for the Federal Reserve's ongoing battle to tame inflation. The latest U.S. government data reveled that while that inflation cooled somewhat last month, it was still higher than expected.
With that as a backdrop, shares of Datadog (NASDAQ: DDOG) jumped 2.9%, Atlassian (NASDAQ: TEAM) rose 2.9%, and Zscaler (NASDAQ: ZS) climbed 0.9%, as of 2:30 p.m. ET.
While one stock had some company-specific news, the move was muted, suggesting that investors were primarily focused on the mixed economic data.
Image source: Getty Images.
So what
The U.S. Bureau of Labor Statistics released its monthly inflation data for January, and the reception was mixed. The Consumer Price Index (CPI), the most widely followed measure of inflation, rose 6.4% in January compared to the year-ago period, while edging 0.5% month over month.
While still historically high, inflation actually improved compared to December's read of 6.5%, while also notching its seventh-consecutive month of declines in the annual inflation rate. Unfortunately, the rate wasn't as low as many hoped and higher than economist's forecasts of 6.2%. The "core" data, which excludes extremely volatile food and energy prices, climbed 5.6% year over year, also ahead of the 5.5% predicted by economists.
The underlying data didn't provide investors with a clear strategy. The food and energy indexes both increased, climbing to 10.1% and 8.7%, respectively, helping illustrate the long road of recovery ahead.
Investors have been hoping the Fed will continue to moderate the pace and tenor of interest rate hikes as inflation improves. Interest rate hikes are the Fed's primary tool in the fight against historically high inflation. When borrowing money becomes more expensive, businesses and consumers alike tend to rein in spending. This, in turn, results in reduced demand, which causes a corresponding decline in prices.
The economy is a complex mechanism, however, so the process can be more art than science, and there's no exact recipe for slowing an overheated economy without pushing the country into recession.
Now what
So what does monthly inflation data have to do with our trio of companies? While the major market indexes have all fallen over the past year, technology stocks have been hit particularly hard. The tech-heavy Nasdaq Composite is still firmly entrenched in bear market territory, down 25% from its peak in late 2021.
Many technology stocks have fallen even further. Datadog, Atlassian, and Zscaler stocks are down 57%, 61%, and 63%, respectively, from their highs before the downturn began.
Data by YCharts
Furthermore, the current macroeconomic environment still presents challenges for these three companies, including:
Datadog's observability and cloud monitoring services have held up remarkably well, but demand has fallen considerably, as businesses look for ways to cut expenses and preserve precious capital to ride out the downturn.
Atlassian has also seen demand for its project-tracking and collaboration tools evaporate, as some companies view anything less than mission-critical costs as expendable.
Zscaler's cloud security platform has also experienced decelerating revenue growth, as some companies are waiting out the downturn before implementing more stringent cybersecurity plans.
There was one piece of company-specific news, specifically regarding Zscaler -- which might explain why it didn't rise as much as its tech brethren. The company announced today that it plans to acquire Canonic Security, a software-as-a-service (SaaS) application security platform, for an undisclosed sum. The move will further expand Zscaler's zero-trust data protection tools while increasing its addressable market. Investors were initially leery about the purchase, reserving judgement pending information about the cost of the acquisition.
For investors, the good news is this: Bear markets tend to take down good and bad companies alike. As a result, each of these stocks are selling for significantly less than at the start of the downturn, making their valuations much more compelling -- though none are cheap when measured using traditional valuation metrics.
Atlassian, Zscaler, and Datadog are currently selling for 11 times, 10 times, and 9 times next year's sales, when a reasonable price-to-sales ratio is between 1 and 2. Investors tend to reward companies with a history of strong growth and robust futures with a premium valuation, however, and these are currently still near their all-time lows.
No one knows for sure when the market will bottom out, but these stocks are cheaper than they've ever been. For investors looking out three to five years and with the stomach for a little volatility, buying shares of these industry leaders now -- while they're on sale -- will seem like a brilliant move down the road.
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Danny Vena has positions in Atlassian, Datadog, and Zscaler. The Motley Fool has positions in and recommends Atlassian, Datadog, 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.
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With that as a backdrop, shares of Datadog (NASDAQ: DDOG) jumped 2.9%, Atlassian (NASDAQ: TEAM) rose 2.9%, and Zscaler (NASDAQ: ZS) climbed 0.9%, as of 2:30 p.m. Data by YCharts Furthermore, the current macroeconomic environment still presents challenges for these three companies, including: Datadog's observability and cloud monitoring services have held up remarkably well, but demand has fallen considerably, as businesses look for ways to cut expenses and preserve precious capital to ride out the downturn. Zscaler's cloud security platform has also experienced decelerating revenue growth, as some companies are waiting out the downturn before implementing more stringent cybersecurity plans.
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With that as a backdrop, shares of Datadog (NASDAQ: DDOG) jumped 2.9%, Atlassian (NASDAQ: TEAM) rose 2.9%, and Zscaler (NASDAQ: ZS) climbed 0.9%, as of 2:30 p.m. The "core" data, which excludes extremely volatile food and energy prices, climbed 5.6% year over year, also ahead of the 5.5% predicted by economists. Atlassian, Zscaler, and Datadog are currently selling for 11 times, 10 times, and 9 times next year's sales, when a reasonable price-to-sales ratio is between 1 and 2.
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With that as a backdrop, shares of Datadog (NASDAQ: DDOG) jumped 2.9%, Atlassian (NASDAQ: TEAM) rose 2.9%, and Zscaler (NASDAQ: ZS) climbed 0.9%, as of 2:30 p.m. Datadog, Atlassian, and Zscaler stocks are down 57%, 61%, and 63%, respectively, from their highs before the downturn began. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Danny Vena has positions in Atlassian, Datadog, and Zscaler.
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With that as a backdrop, shares of Datadog (NASDAQ: DDOG) jumped 2.9%, Atlassian (NASDAQ: TEAM) rose 2.9%, and Zscaler (NASDAQ: ZS) climbed 0.9%, as of 2:30 p.m. While one stock had some company-specific news, the move was muted, suggesting that investors were primarily focused on the mixed economic data. While still historically high, inflation actually improved compared to December's read of 6.5%, while also notching its seventh-consecutive month of declines in the annual inflation rate.
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24aed399-aa8a-4a59-8ddd-2286898769fd
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718358.0
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2023-02-14 00:00:00 UTC
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Iconiq Strategic Partners Ii Now Owns 4.90% of Datadog, Inc. (DDOG)
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DDOG
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https://www.nasdaq.com/articles/iconiq-strategic-partners-ii-now-owns-4.90-of-datadog-inc.-ddog
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nan
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nan
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Fintel reports that Iconiq Strategic Partners Ii has filed a 13G/A form with the SEC disclosing ownership of 14.35MM shares of Datadog, Inc. Class A (DDOG). This represents 4.9% of the company.
In their previous filing dated February 14, 2022 they reported 19.75MM shares and 7.30% of the company, a decrease in shares of 27.34% and a decrease in total ownership of 2.40% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 32.49% Upside
As of February 13, 2023, the average one-year price target for Datadog, Inc. is $108.96. The forecasts range from a low of $76.76 to a high of $162.75. The average price target represents an increase of 32.49% from its latest reported closing price of $82.24.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 47.66%. The projected annual EPS is $1.20.
What is the Fund Sentiment?
There are 1300 funds or institutions reporting positions in Datadog, Inc.. This is an increase of 10 owner(s) or 0.78% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 6.95%. Total shares owned by institutions increased in the last three months by 2.25% to 271,406K shares. The put/call ratio of DDOG is 0.51, indicating a bullish outlook.
What are large shareholders doing?
ICONIQ Capital holds 13,176K shares representing 4.15% ownership of the company. In it's prior filing, the firm reported owning 11,959K shares, representing an increase of 9.23%. The firm decreased its portfolio allocation in DDOG by 99.96% over the last quarter.
Price T Rowe Associates holds 9,056K shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 16,853K shares, representing a decrease of 86.09%. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,809K shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 7,504K shares, representing an increase of 3.89%. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
Capital Research Global Investors holds 7,050K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 4,701K shares, representing an increase of 33.33%. The firm increased its portfolio allocation in DDOG by 47.47% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,023K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 5,865K shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DDOG by 0.09% 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.
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 Iconiq Strategic Partners Ii has filed a 13G/A form with the SEC disclosing ownership of 14.35MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 6.95%. The put/call ratio of DDOG is 0.51, indicating a bullish outlook.
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Fintel reports that Iconiq Strategic Partners Ii has filed a 13G/A form with the SEC disclosing ownership of 14.35MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 6.95%. The put/call ratio of DDOG is 0.51, indicating a bullish outlook.
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Fintel reports that Iconiq Strategic Partners Ii has filed a 13G/A form with the SEC disclosing ownership of 14.35MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 6.95%. The put/call ratio of DDOG is 0.51, indicating a bullish outlook.
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Fintel reports that Iconiq Strategic Partners Ii has filed a 13G/A form with the SEC disclosing ownership of 14.35MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 6.95%. The put/call ratio of DDOG is 0.51, indicating a bullish outlook.
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c523dd47-6f59-47dd-8b04-11e46a940c57
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718359.0
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2023-02-13 00:00:00 UTC
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Checkpoint Software Helps Cyber Security Stocks Bottom
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DDOG
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https://www.nasdaq.com/articles/checkpoint-software-helps-cyber-security-stocks-bottom
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nan
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nan
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While 2023 is not shaping up to be as strong as the analysts had initially hoped, results from Checkpoint Software (NASDAQ: CHKP) confirm news released by F-5 Networks (NASDAQ: FFIV) and Cloudflare (NASDAQ: NET): 2023 won’t be as bad as it could have been. The takeaway from all this is that analysts have been hesitant to alter their long-term forecasts without the latest news from the underlying companies.
The news from the companies is that growth is still on the table, albeit at a slower pace than before. This means that there will be some revisions to the earnings outlook, but the market for these stocks is bottoming because the absolute worst was priced in, and that’s not what we’re looking at.
Checkpoint Software Has Strong Quarter, Issues Light Guidance
Checkpoint Software ended 2022 on solid footing and is guiding the market for growth in 2023. The problem is that outlook for revenue, which is above the Marketbeat.com consensus, is offset by a weak EPS forecast that may keep the shares moving sideways over the next quarter or so. The Q4 results, on the other hand, were strong on the top and bottom lines and are underpinning the price action now.
The $638 million in revenue is up 7% YOY and driven by a 13% increase in subscription revenue coupled with a 10% increase in deferred revenue. The best news is that margins expanded versus last year, leaving the GAAP operating margin at 40% and the adjusted margin at 45%.
This produced $2.45 per share, up 9%, and outpaced the top line by 200 basis points. As for the guidance, the company expects to see revenue growth of 8% for calendar 2023, which matches the growth in 2022. The bad news is that adjusted EPS is expected to be near $7.40 versus the $8.13 Marketbeat.com consensus estimate, but the figures may not be directly comparable.
Checkpoint Software Increases Capital Returns
Checkpoint Software’s cash flow and FCF were lower this quarter than last year, but this is due to 1-off factors, including acquisition costs and FX-hedging transactions that do little to impair the company’s financial standing. The company has a leverage ratio below 1 and triple-digit coverage, so it is among the best-positioned tech companies from the balance sheet perspective.
The company does not pay a dividend but wants to repurchase shares and announced a new $2 billion authorization to keep it buying shares for at least the next 5 quarters. Under the plan, the company can buy $0.325 billion worth each quarter.
The share repurchase plan is only one tailwind supporting the stock price, and the analysts are another. The 21 analysts tracking the stock have it pegged at a firm Hold that has not budged in the last 12 months, but the price target has. It should be noted that sentiment is impacted by 2 recently initiated targets that come with Neutral ratings.
Without those, the bulk of recent activity is bullish and would have the consensus sentiment at a Moderate Buy otherwise. The price target implies only a 10% of upside for the stock, but it has been trending higher all year and may continue to do so in the near to short term as well.
The Technical Outlook: Checkpoint Is Bought On The Dip
The price action in Checkpoint Software fell back to support at the $125 level following the Q4 release, but this move has been used as a buying opportunity by the market. The stock price has been moving steadily since the open and crossed into positive territory less than 2 hours after the market opened.
If the stock can maintain this momentum and close at or near the highs of the day this stock will most likely move sideways within the established range. If not, the market may retest support at $125 and move even lower. Other cybersecurity stocks like DataDog (NASDAQ: DDOG) and Palo Alto Networks (NASDAQ: PANW) will report later this week and month and may lend additional support to the entire complex.
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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Other cybersecurity stocks like DataDog (NASDAQ: DDOG) and Palo Alto Networks (NASDAQ: PANW) will report later this week and month and may lend additional support to the entire complex. The problem is that outlook for revenue, which is above the Marketbeat.com consensus, is offset by a weak EPS forecast that may keep the shares moving sideways over the next quarter or so. The bad news is that adjusted EPS is expected to be near $7.40 versus the $8.13 Marketbeat.com consensus estimate, but the figures may not be directly comparable.
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Other cybersecurity stocks like DataDog (NASDAQ: DDOG) and Palo Alto Networks (NASDAQ: PANW) will report later this week and month and may lend additional support to the entire complex. While 2023 is not shaping up to be as strong as the analysts had initially hoped, results from Checkpoint Software (NASDAQ: CHKP) confirm news released by F-5 Networks (NASDAQ: FFIV) and Cloudflare (NASDAQ: NET): 2023 won’t be as bad as it could have been. Checkpoint Software Has Strong Quarter, Issues Light Guidance Checkpoint Software ended 2022 on solid footing and is guiding the market for growth in 2023.
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Other cybersecurity stocks like DataDog (NASDAQ: DDOG) and Palo Alto Networks (NASDAQ: PANW) will report later this week and month and may lend additional support to the entire complex. While 2023 is not shaping up to be as strong as the analysts had initially hoped, results from Checkpoint Software (NASDAQ: CHKP) confirm news released by F-5 Networks (NASDAQ: FFIV) and Cloudflare (NASDAQ: NET): 2023 won’t be as bad as it could have been. Checkpoint Software Increases Capital Returns Checkpoint Software’s cash flow and FCF were lower this quarter than last year, but this is due to 1-off factors, including acquisition costs and FX-hedging transactions that do little to impair the company’s financial standing.
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Other cybersecurity stocks like DataDog (NASDAQ: DDOG) and Palo Alto Networks (NASDAQ: PANW) will report later this week and month and may lend additional support to the entire complex. While 2023 is not shaping up to be as strong as the analysts had initially hoped, results from Checkpoint Software (NASDAQ: CHKP) confirm news released by F-5 Networks (NASDAQ: FFIV) and Cloudflare (NASDAQ: NET): 2023 won’t be as bad as it could have been. The problem is that outlook for revenue, which is above the Marketbeat.com consensus, is offset by a weak EPS forecast that may keep the shares moving sideways over the next quarter or so.
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7a3ba65c-4d3c-4753-910c-6947f2ca3f9a
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718360.0
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2023-02-13 00:00:00 UTC
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Datadog (DDOG) to Report Q4 Earnings: What's in the Cards?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-to-report-q4-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 fourth-quarter 2022 results on Feb 16.
For the quarter, the company expects non-GAAP earnings in the range of 18-20 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a decline of 5% from the year-ago period.
The company projects fourth-quarter revenues to be between $445 million and $449 million. The consensus mark for the top line is currently pegged at $446.3 million, suggesting 36.83% growth from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 81.19%.
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.
Notably, the company ended third-quarter 2022 with 2,600 customers with an Annual Recurring Revenue (ARR) of more than $100K, up from about 1,800 in the year-ago quarter. These customers generated about 85% of ARR. Also, the firm’s dollar-based net retention rate remained more than 130% as customers increase their usage and adopted more products.
During the to-be-reported quarter, Datadog announced a new integration with Amazon Security Lake that makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format.
Also, Datadog announced the general availability of Cloud Security Management. This product brings together capabilities from Cloud Security Posture Management, Cloud Workload Security, alerting, incident management and reporting in a single platform to enable DevOps and Security teams to identify misconfigurations, detect threats and secure cloud-native applications.
Key Developments
Datadog announced that it has acquired Cloudcraft, a visualization service for cloud and system architects to create real-time diagrams of their cloud infrastructures.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #3. 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.
Endava DAVA has an Earnings ESP of +1.47% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Airbnb ABNB has an Earnings ESP of +8.10% and a Zacks Rank #3 at present.
Airbnb is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for ABNB’s earnings is pegged at 27 cents per share, suggesting an increase of 237.5% from the prior-year quarter’s reported figure.
TripAdvisor TRIP has an Earnings ESP of +112.90% and a Zacks Rank #3 at present.
TripAdvisor is scheduled to release its fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for TRIP’s earnings is pegged at 5 cents per share. The company reported a loss of a cent per share in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : 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 fourth-quarter 2022 results on Feb 16. Click to get this free report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a decline of 5% from the year-ago period.
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Click to get this free report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its fourth-quarter 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
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Click to get this free report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG is set to release its fourth-quarter 2022 results on Feb 16. 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.
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Datadog DDOG is set to release its fourth-quarter 2022 results on Feb 16. Click to get this free report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, Datadog announced the general availability of Cloud Security Management.
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3c5ddc97-9dcc-428c-ac6a-75140945c0c2
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718361.0
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2023-02-10 00:00:00 UTC
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The Bottom Is In For Cloudflare Stock
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DDOG
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https://www.nasdaq.com/articles/the-bottom-is-in-for-cloudflare-stock
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nan
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nan
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Cloudflare (NASDAQ: NET) still has hurdles to overcome, but the bottom is in for this stock. The price action began showing a bottom in the middle of 2022, confirmed now by the Q4 results and the analyst activity they inspired. Market beat’s analyst tracking tools have picked up 6 new commentaries so far and are all bullish.
All include a price target increase with the consensus price target firming after a year of downward pressure. Assuming this trend continues, the price target could increase over the next few months, which would be a tailwind for price action. The salient point today is that the current price target implies about a 30% upside for the stock.
Cloudflare Pops On Favorable Results And Outlook
Cloudflare had a good quarter with revenue of $274.7 million, up 42% versus last year. The strength was driven by an uptick in revenue from large businesses, suggesting further gains are in store. The revenue also beat the consensus estimate but only by 22 basis points, which is not enough to rally the market to the degree it is.
That news is in the margin and earnings, which are all up. The company continues to post GAAP losses, but this is due to reinvestment and growth; the adjusted results include a small contraction in the gross margin but expansion everywhere else.
The company reported the adjusted operating income margin increased to 6.8% from 1.2% last year. This drove a 28% increase in operating cash flow and a 12% increase in free cash flow, putting both figures at record levels. The adjusted EPS came in at $0.06, which beat the consensus by a penny or about 2000 basis points, and the guidance is favorable if a little mixed.
The company is guiding for sequential growth on the top line for the quarter and the year but relative to the consensus, Q1 guidance is a little weak, while the full year is a little strong. The opposite is true of earnings, the Q1 period is expected to be strong relative to the analyst while the full year is a little weak, but both are better than what the market feared may come.
"In the fourth quarter, we delivered record operating profit, operating margin, and free cash flow. We also surpassed more than 2,000 large customers paying us over $100,000 per year and signed a record number of deals greater than $500,000," said Matthew Prince, co-founder & CEO of Cloudflare.
The Bottom Is In For Cloud Security Stocks
Cloud security stocks, in general, have been under pressure over the last year, but the bottom may be in for the entire group. Results from F5 Networks (NASDAQ: F5) were mixed relative to the market expectation at the time but provided some relief for worried investors.
Since then, shares of that stock and others in the group, like Palo Alto Networks (NASDAQ: PANW), which reports later this month, has been moving sideways and building up a support base. Datadog(NASDAQ: DDOG), one of the hardest hit in the group, reports next week and could provide a positive surprise.
The analysts have been lowering their targets for the last few months and have the bar set relatively low at only 3% sequential and 38% YOY.
The Technical Outlook: Net Pops, Resistance Is Present
Shares of Cloudflare popped more than 9% at the open, only to pare back the gains in the first few minutes of trading. This is a sign of resistance at a critical level that could hold the price in check. If the market can get above $64 and hold it, it could increase to the $80 level. That level will provide stiffer resistance but, if crossed, opens the door to a more-sustained recovery.
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), one of the hardest hit in the group, reports next week and could provide a positive surprise. The company continues to post GAAP losses, but this is due to reinvestment and growth; the adjusted results include a small contraction in the gross margin but expansion everywhere else. We also surpassed more than 2,000 large customers paying us over $100,000 per year and signed a record number of deals greater than $500,000," said Matthew Prince, co-founder & CEO of Cloudflare.
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Datadog(NASDAQ: DDOG), one of the hardest hit in the group, reports next week and could provide a positive surprise. This drove a 28% increase in operating cash flow and a 12% increase in free cash flow, putting both figures at record levels. "In the fourth quarter, we delivered record operating profit, operating margin, and free cash flow.
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Datadog(NASDAQ: DDOG), one of the hardest hit in the group, reports next week and could provide a positive surprise. All include a price target increase with the consensus price target firming after a year of downward pressure. This drove a 28% increase in operating cash flow and a 12% increase in free cash flow, putting both figures at record levels.
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Datadog(NASDAQ: DDOG), one of the hardest hit in the group, reports next week and could provide a positive surprise. Assuming this trend continues, the price target could increase over the next few months, which would be a tailwind for price action. The company reported the adjusted operating income margin increased to 6.8% from 1.2% last year.
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adbfb200-f271-42ef-ba2a-8fb48ace7537
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718362.0
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2023-02-09 00:00:00 UTC
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Morgan Stanley Cuts Stake in Datadog, Inc. (DDOG)
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DDOG
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https://www.nasdaq.com/articles/morgan-stanley-cuts-stake-in-datadog-inc.-ddog
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nan
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nan
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Fintel reports that Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 15.56MM shares of Datadog, Inc. Class A (DDOG). This represents 5.3% of the company.
In their previous filing dated February 11, 2022 they reported 15.57MM shares and 6.10% of the company, a decrease in shares of 0.10% and a decrease in total ownership of 0.80% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 31.81% Upside
As of February 9, 2023, the average one-year price target for Datadog, Inc. is $108.96. The forecasts range from a low of $76.76 to a high of $162.75. The average price target represents an increase of 31.81% from its latest reported closing price of $82.66.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 47.66%. The projected annual EPS is $1.20.
What is the Fund Sentiment?
There are 1298 funds or institutions reporting positions in Datadog, Inc.. This is an increase of 2 owner(s) or 0.15% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. Total shares owned by institutions increased in the last three months by 0.81% to 265,900K shares. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
What are large shareholders doing?
ICONIQ Capital holds 11,959K shares representing 3.77% ownership of the company. In it's prior filing, the firm reported owning 14,169K shares, representing a decrease of 18.48%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
Price T Rowe Associates holds 9,056K shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 16,853K shares, representing a decrease of 86.09%. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,809K shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 7,504K shares, representing an increase of 3.89%. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
Capital Research Global Investors holds 7,050K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 4,701K shares, representing an increase of 33.33%. The firm increased its portfolio allocation in DDOG by 47.47% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,023K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 5,865K shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DDOG by 0.09% 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.
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 Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 15.56MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 15.56MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 15.56MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 15.56MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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a595a7a2-0b71-4517-94e6-8cc253047a6d
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718363.0
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2023-02-09 00:00:00 UTC
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Vanguard Group Updates Holdings in Datadog, Inc. (DDOG)
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DDOG
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https://www.nasdaq.com/articles/vanguard-group-updates-holdings-in-datadog-inc.-ddog
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nan
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nan
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Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 24.57MM shares of Datadog, Inc. Class A (DDOG). This represents 8.41% of the company.
In their previous filing dated February 9, 2022 they reported 22.17MM shares and 8.62% of the company, an increase in shares of 10.84% and a decrease in total ownership of 0.21% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 31.81% Upside
As of February 9, 2023, the average one-year price target for Datadog, Inc. is $108.96. The forecasts range from a low of $76.76 to a high of $162.75. The average price target represents an increase of 31.81% from its latest reported closing price of $82.66.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 47.66%. The projected annual EPS is $1.20.
What is the Fund Sentiment?
There are 1298 funds or institutions reporting positions in Datadog, Inc.. This is an increase of 2 owner(s) or 0.15% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. Total shares owned by institutions increased in the last three months by 0.81% to 265,900K shares. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
What are large shareholders doing?
ICONIQ Capital holds 11,959K shares representing 3.77% ownership of the company. In it's prior filing, the firm reported owning 14,169K shares, representing a decrease of 18.48%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
Price T Rowe Associates holds 9,056K shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 16,853K shares, representing a decrease of 86.09%. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,809K shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 7,504K shares, representing an increase of 3.89%. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
Capital Research Global Investors holds 7,050K shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 4,701K shares, representing an increase of 33.33%. The firm increased its portfolio allocation in DDOG by 47.47% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,023K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 5,865K shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DDOG by 0.09% 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.
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 Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 24.57MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 24.57MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 24.57MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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Fintel reports that Vanguard Group has filed a 13G/A form with the SEC disclosing ownership of 24.57MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to DDOG is 0.55%, a decrease of 8.89%. The put/call ratio of DDOG is 0.54, indicating a bullish outlook.
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58c2d28f-b1c8-4cde-bfc1-75eb427e5d62
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718364.0
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2023-02-07 00:00:00 UTC
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Keybanc Downgrades Datadog, Inc. (DDOG)
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DDOG
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https://www.nasdaq.com/articles/keybanc-downgrades-datadog-inc.-ddog
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nan
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nan
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On February 6, 2023, Keybanc downgraded their outlook for Datadog, Inc. from Overweight to Sector Weight.
Analyst Price Forecast Suggests 44.78% Upside
As of February 6, 2023, the average one-year price target for Datadog, Inc. is $111.43. The forecasts range from a low of $76.76 to a high of $170.10. The average price target represents an increase of 44.78% from its latest reported closing price of $76.96.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 47.66%. The projected annual EPS is $1.20.
What are large shareholders doing?
ICONIQ Capital holds 11,959,144 shares representing 3.77% ownership of the company. In it's prior filing, the firm reported owning 14,168,957 shares, representing a decrease of 18.48%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
Price T Rowe Associates holds 9,056,244 shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 16,852,560 shares, representing a decrease of 86.09%. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,808,504 shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 7,504,449 shares, representing an increase of 3.89%. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
Capital Research Global Investors holds 7,050,239 shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 4,700,651 shares, representing an increase of 33.33%. The firm increased its portfolio allocation in DDOG by 47.47% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,023,442 shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 5,865,321 shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DDOG by 0.09% over the last quarter.
Fund Sentiment
There are 1297 funds or institutions reporting positions in Datadog, Inc.. This is an increase of 3 owner(s) or 0.23%.
Average portfolio weight of all funds dedicated to US:DDOG is 0.5500%, a decrease of 8.6243%. Total shares owned by institutions decreased in the last three months by 1.23% to 263,315K shares.
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.
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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The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
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The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
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The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
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Average portfolio weight of all funds dedicated to US:DDOG is 0.5500%, a decrease of 8.6243%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
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32d3ec38-3f0a-4047-be1c-63d42ca5c108
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718365.0
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2023-02-07 00:00:00 UTC
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Why PayPal, Datadog, Shopify, and Activision Stock Took a Dive on Monday
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DDOG
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https://www.nasdaq.com/articles/why-paypal-datadog-shopify-and-activision-stock-took-a-dive-on-monday
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nan
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nan
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Today's video focuses on PayPal (NASDAQ: PYPL), Datadog (NASDAQ: DDOG), Activision Blizzard (NASDAQ: ATVI), Shopify (NYSE: SHOP), and recent news affecting stock prices from downgrades to an increased risk impacting a huge acquisition. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Feb. 6, 2023. The video was published on Feb. 6, 2023.
10 stocks we like better than PayPal
When our award-winning 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 PayPal 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 January 9, 2023
Jose Najarro has positions in Datadog, PayPal, and Shopify. The Motley Fool has positions in and recommends Activision Blizzard, Datadog, PayPal, and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their 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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Today's video focuses on PayPal (NASDAQ: PYPL), Datadog (NASDAQ: DDOG), Activision Blizzard (NASDAQ: ATVI), Shopify (NYSE: SHOP), and recent news affecting stock prices from downgrades to an increased risk impacting a huge acquisition. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Today's video focuses on PayPal (NASDAQ: PYPL), Datadog (NASDAQ: DDOG), Activision Blizzard (NASDAQ: ATVI), Shopify (NYSE: SHOP), and recent news affecting stock prices from downgrades to an increased risk impacting a huge acquisition. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has positions in Datadog, PayPal, and Shopify. The Motley Fool has positions in and recommends Activision Blizzard, Datadog, PayPal, and Shopify.
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Today's video focuses on PayPal (NASDAQ: PYPL), Datadog (NASDAQ: DDOG), Activision Blizzard (NASDAQ: ATVI), Shopify (NYSE: SHOP), and recent news affecting stock prices from downgrades to an increased risk impacting a huge acquisition. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has positions in Datadog, PayPal, and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
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Today's video focuses on PayPal (NASDAQ: PYPL), Datadog (NASDAQ: DDOG), Activision Blizzard (NASDAQ: ATVI), Shopify (NYSE: SHOP), and recent news affecting stock prices from downgrades to an increased risk impacting a huge acquisition. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jose Najarro has positions in Datadog, PayPal, and Shopify. The Motley Fool has positions in and recommends Activision Blizzard, Datadog, PayPal, and Shopify.
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8db04ad3-21e5-4cf2-a2e1-aeacba6fa9a1
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718366.0
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2023-02-06 00:00:00 UTC
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2 Nasdaq-100 Stocks to Double Down on in February
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DDOG
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https://www.nasdaq.com/articles/2-nasdaq-100-stocks-to-double-down-on-in-february
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nan
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nan
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The Nasdaq-100 index, which is made up of stocks issued by the 100 largest non-financial companies listed on the Nasdaq Stock Exchange, started the year on a positive note. It posted gains of 14% in 2023, bringing some relief to investors who saw the index lose over 15.4% of its value in the past year.
It is worth noting that the Nasdaq has a tendency to bounce back strongly after a down year. Cooling inflation and the U.S. economy's resilience could be catalysts for equities in 2023 and send the market on a potential bull run. That's why investors may want to load up on a couple of Nasdaq-100 stocks that could soar higher in 2023 and beyond.
Airbnb (NASDAQ: ABNB) stock is already crushing the market this year with gains of 38%. Meanwhile, Datadog (NASDAQ: DDOG) has jumped 6.1%, and it wouldn't be surprising to see this fast-growing cloud software company jump higher. Let's look at the reasons why Airbnb and Datadog are two Nasdaq stocks that investors should consider buying hand over fist in February.
1. Airbnb
Airbnb stock's solid start to the year is expected to continue thanks to healthy demand for travel and tourism in 2023. International travel could spike 40% this year, according to Euromonitor International, while another report by the United Nations World Tourism Organization (UNWTO) suggests that international tourist arrivals could bounce back to pre-pandemic levels in 2023.
Specifically, the UNWTO forecasts that international tourist arrivals could range between 80% and 95% of pre-pandemic levels in 2023. That would be a nice increase over last year when international arrivals stood at 63% of pre-pandemic levels. This should pave the way for yet another good year for Airbnb.
The company's 2022 revenue increased an estimated 39% to $8.35 billion. More importantly, the vacation rentals and accommodation marketplace provider is expected to swing to a profit of $2.59 per share from a loss of $0.57 per share in 2021. Wall Street expects Airbnb to post attractive growth over the next two years as well.
ABNB EPS Estimates for Current Fiscal Year data by YCharts
There are a couple of reasons why Airbnb should be able to post healthy growth in the short and long run.
First, TechNavio estimates that the global vacation rental market could add $79 billion in revenue between 2021 and 2026. So Airbnb's addressable market is expected to increase substantially over the next few years.
This brings us to the second reason why the company's impressive growth should be here to stay. Europe is said to be Airbnb's largest market. As it turns out, Europe is expected to account for 37% of the incremental vacation rental spending through 2026, according to TechNavio.
Meanwhile, Airbnb remains the preferred vacation rental platform in the world's largest vacation rental market, the U.S. The U.S. vacation rentals segment is expected to generate $19.4 billion in revenue in 2023. With 80% of vacation rental users in the U.S. reportedly preferring Airbnb for their bookings, the company is in a nice position to make the most of this lucrative market.
Even better, Airbnb's solid position in key vacation rental markets across the globe is likely to translate into annual earnings growth of 20% for the next five years, according to consensus estimates. All this indicates that investors may want to double down on Airbnb in February, as a strong earnings report from the company later this month could give its stock price a shot in the arm.
2. Datadog
Datadog stock has lost 47% of its value in the past year, but the company's terrific growth rate indicates that savvy investors can buy a growth stock on the cheap here.
Datadog will release its fourth-quarter and full-year 2022 results on Feb. 16. The company is expected to report eye-popping full-year revenue growth of 61% to $1.65 billion, along with a 90% spike in earnings to $0.91 per share. Even better, Datadog is expected to maintain its outstanding growth in the future.
DDOG EPS Estimates for Current Fiscal Year data by YCharts
Analysts are estimating impressive 47% annual earnings growth from Datadog over the next five years. A closer look at the company's addressable opportunity tells why it is capable of achieving such impressive growth.
Datadog is a provider of security, analytics, and monitoring platforms for cloud applications. Its offerings are used by developers, IT (information technology) teams, and enterprise cloud users. Its tools allow customers to monitor cloud infrastructure, application performance, and security in real-time, along with other services such as monitoring user experience and network performance.
Datadog is said to be one of the leading players in its space thanks to its comprehensive platform, which explains why the company is witnessing a nice increase in customer spending and stronger adoption of its platform. For example, the number of Datadog customers with more than $100,000 in annual recurring revenue jumped 44% year over year in the third quarter of 2022 to 2,600. Its total customer count jumped 27% year over year to 22,200 during the quarter.
Additionally, 40% of Datadog customers were using four or more of its products in Q3 2022, up from 20% during the same period in 2020. Not surprisingly, the company reported an impressive dollar-based net retention rate of over 130% for the 21st consecutive quarter in Q3 2022, which points toward an increase in the usage and adoption of its products by customers.
As such, the company is in a solid position to tap its large addressable market, which was worth an estimated $41 billion last year. What's more, the company's addressable opportunity could increase to $62 billion by 2026.
In all, Datadog has the potential to become a top growth stock in the long run, so investors should consider doubling down on it before it starts soaring.
Find out why Airbnb is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 9, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, Datadog (NASDAQ: DDOG) has jumped 6.1%, and it wouldn't be surprising to see this fast-growing cloud software company jump higher. DDOG EPS Estimates for Current Fiscal Year data by YCharts Analysts are estimating impressive 47% annual earnings growth from Datadog over the next five years. ABNB EPS Estimates for Current Fiscal Year data by YCharts There are a couple of reasons why Airbnb should be able to post healthy growth in the short and long run.
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DDOG EPS Estimates for Current Fiscal Year data by YCharts Analysts are estimating impressive 47% annual earnings growth from Datadog over the next five years. Meanwhile, Datadog (NASDAQ: DDOG) has jumped 6.1%, and it wouldn't be surprising to see this fast-growing cloud software company jump higher. ABNB EPS Estimates for Current Fiscal Year data by YCharts There are a couple of reasons why Airbnb should be able to post healthy growth in the short and long run.
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Meanwhile, Datadog (NASDAQ: DDOG) has jumped 6.1%, and it wouldn't be surprising to see this fast-growing cloud software company jump higher. DDOG EPS Estimates for Current Fiscal Year data by YCharts Analysts are estimating impressive 47% annual earnings growth from Datadog over the next five years. Airbnb Airbnb stock's solid start to the year is expected to continue thanks to healthy demand for travel and tourism in 2023. International travel could spike 40% this year, according to Euromonitor International, while another report by the United Nations World Tourism Organization (UNWTO) suggests that international tourist arrivals could bounce back to pre-pandemic levels in 2023.
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Meanwhile, Datadog (NASDAQ: DDOG) has jumped 6.1%, and it wouldn't be surprising to see this fast-growing cloud software company jump higher. DDOG EPS Estimates for Current Fiscal Year data by YCharts Analysts are estimating impressive 47% annual earnings growth from Datadog over the next five years. The Nasdaq-100 index, which is made up of stocks issued by the 100 largest non-financial companies listed on the Nasdaq Stock Exchange, started the year on a positive note.
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80767114-550d-4bc5-a47d-71dadc991765
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718367.0
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2023-02-06 00:00:00 UTC
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Is DataDog Stock a Buy Right Now?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-stock-a-buy-right-now
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nan
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nan
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This video will use several financial metrics to analyze and determine if DataDog (NASDAQ: DDOG) stock is a buy right now.
*Stock prices used were the afternoon prices of Feb. 3, 2023. The video was published on Feb. 5, 2023.
10 stocks we like better than Datadog
When our award-winning 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 January 9, 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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This video will use several financial metrics to analyze and determine if DataDog (NASDAQ: DDOG) stock is a buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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This video will use several financial metrics to analyze and determine if DataDog (NASDAQ: DDOG) stock is a buy right now. 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 January 9, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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This video will use several financial metrics to analyze and determine if DataDog (NASDAQ: DDOG) stock is a buy right now. 10 stocks we like better than Datadog When our award-winning 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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This video will use several financial metrics to analyze and determine if DataDog (NASDAQ: DDOG) stock is a buy right now. See the 10 stocks *Stock Advisor returns as of January 9, 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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0db2b64d-3fa4-4345-b1b9-6c1f036429b8
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718368.0
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2023-02-05 00:00:00 UTC
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Best Growth Stocks To Buy Now? 3 To Watch In 2023
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DDOG
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https://www.nasdaq.com/articles/best-growth-stocks-to-buy-now-3-to-watch-in-2023
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nan
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nan
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Growth stocks refer to a category of stocks that offer the potential for substantial growth in earnings and revenue. These stocks typically link to young companies that have shown steady growth in earnings, revenue, and market share. Industries such as technology, biotechnology, solar, and e-commerce, which are known for high growth, often house these types of companies and their stocks.
Investors are attracted to growth stocks because of the potential for high returns. These companies are often seen as having a higher growth potential than their peers. As a result, their stock prices can increase rapidly. However, this high potential for growth also comes with higher risk, as growth stocks can be more volatile than other types of stocks. Additionally, the high growth rates may not always be sustained. This can result in a decline in the stock price.
Growth stocks are a popular investment option for those looking to invest in the stock market. Though they are not suitable for all investors, it’s important to understand the risks involved before investing. It’s also important to have a long-term investment horizon when investing in growth stocks. This is because they are typically a speculative investment that is not intended to provide steady, income-generating returns. With this in mind, let’s check out three growth stocks to potentially add to your watchlist in the stock market this week.
Growth Stocks To Watch This Week
Enphase Energy Inc. (NASDAQ: ENPH)
Canadian Solar Inc. (NASDAQ: CSIQ)
Datadog Inc. (NASDAQ: DDOG)
Enphase Energy (ENPH Stock)
Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. The company’s innovative technology helps improve the energy production and system reliability of solar panels.
Just last week, Enphase Energy announced that it has successfully demonstrated its bidirectional EV charger. The charger can be controlled from the Enphase app and will allow for integration into the Enphase home energy system. The charger is expected to be available in 2024 and will support charging an EV. As well as provide power during a power outage, share energy with the grid, and charge the EV battery with clean solar energy.
Over the last five trading days, shares of Enphase stock have started to recover by 6.67%. Meanwhile, as of Friday’s after-hours trading session close, ENPH stock closed the day at $223.20 a share.
Source: TD Ameritrade TOS
[Read More] What Stocks To Buy Today? 3 AI Stocks To Know
Canadian Solar (CSIQ Stock)
Next, Canadian Solar Inc. (CSIQ) is a global solar energy company that provides high-quality solar panels, solar systems, and energy solutions for customers in over 150 countries. The company’s innovative technology and customer-focused approach have made it a leading player in the global solar industry.
At the end of last month, Canadian Solar announced it has signed an agreement to sell 30% of the preferred units of its first Italian alternative investment fund (CSFS Fund I) to Gardant Investor SGR. CSFS Fund I is a real-estate-focused investment fund that includes a portfolio of seven solar power projects with a total capacity of 124.2 MWp. Gardant Investor SGR will also cover 30% of the project’s construction costs. Canadian Solar aims to sell an additional 30% of the preferred units to another financial investor while retaining 40% of the non-preferred units in the future.
Since the beginning of 2023, shares of CSIQ stock have rallied by 34.09% year-to-date. While, as of this past Friday’s closing bell, CSIQ stock closed the day trading at $40.63 a share.
Source: TD Ameritrade TOS
[Read More] 3 Tech Stocks To Watch In February 2023
Datadog (DDOG Stock)
Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems. The company’s solution helps organizations optimize their technology stack, improve their performance, and reduce downtime.
In January, Datadog announced that it will be releasing its fourth quarter and fiscal year 2022 financial results on Thursday, February 16, 2023. To accompany this news, they will host a conference call on the same day at 8:00 a.m. Eastern Time to discuss the financial results and guidance. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results. In detail, the company reported earnings of $0.18 per share, along with revenue of $436.5 million.
Year-to-date, shares of DDOG stock have rebounded by 10.22%. Looking ahead to Monday morning’s trading session, Datadog stock look set to open the trading week at around $79.46 per share based on this past Friday’s closing bell.
Source: TD Ameritrade TOS
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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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Growth Stocks To Watch This Week Enphase Energy Inc. (NASDAQ: ENPH) Canadian Solar Inc. (NASDAQ: CSIQ) Datadog Inc. (NASDAQ: DDOG) Enphase Energy (ENPH Stock) Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. Source: TD Ameritrade TOS [Read More] 3 Tech Stocks To Watch In February 2023 Datadog (DDOG Stock) Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results.
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Growth Stocks To Watch This Week Enphase Energy Inc. (NASDAQ: ENPH) Canadian Solar Inc. (NASDAQ: CSIQ) Datadog Inc. (NASDAQ: DDOG) Enphase Energy (ENPH Stock) Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. Source: TD Ameritrade TOS [Read More] 3 Tech Stocks To Watch In February 2023 Datadog (DDOG Stock) Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results.
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Growth Stocks To Watch This Week Enphase Energy Inc. (NASDAQ: ENPH) Canadian Solar Inc. (NASDAQ: CSIQ) Datadog Inc. (NASDAQ: DDOG) Enphase Energy (ENPH Stock) Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. Source: TD Ameritrade TOS [Read More] 3 Tech Stocks To Watch In February 2023 Datadog (DDOG Stock) Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results.
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Growth Stocks To Watch This Week Enphase Energy Inc. (NASDAQ: ENPH) Canadian Solar Inc. (NASDAQ: CSIQ) Datadog Inc. (NASDAQ: DDOG) Enphase Energy (ENPH Stock) Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results. Source: TD Ameritrade TOS [Read More] 3 Tech Stocks To Watch In February 2023 Datadog (DDOG Stock) Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems.
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c3e3b917-8e70-4315-9dd3-bcccc9cf21e1
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718369.0
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2023-02-03 00:00:00 UTC
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Why Snowflake, Datadog, and HubSpot Shares Fell Back to Earth Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-datadog-and-hubspot-shares-fell-back-to-earth-today
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nan
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nan
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What happened
Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. ET -- more than reversing yesterday's big gains.
Just as high-growth tech stocks surged yesterday on hopes for declining inflation without large job losses, today saw two data points that might have thrown cold water on each of those predictions.
First, some big-tech and other software companies reported earnings last night, showing a significant deceleration in cloud growth. But don't tell that to the rest of the non-tech economy; today's January jobs report blew past expectations, suggesting the labor market remains very tight. That could mean the Federal Reserve might not be able to end its rate hikes as soon as some had thought.
Both turns of events are incremental negatives for tech stocks, so the past week's gains went into reverse pretty quickly.
So what
In January, the U.S. added a staggering 517,000 jobs -- nearly triple the 188,000 expected! The unemployment rate fell to 3.4%, the lowest since 1969, versus the expected 3.6% rate, with only a minor uptick in the labor participation rate (the percentage of people working or actively looking for work).
Average hourly earnings were a bit better, however, increasing 4.4% year over year, slightly above the 4.3% forecast. In addition, December's jobs numbers were upwardly revised to 260,000 from the 223,000 previously reported.
It's great that so many people are employed, but if the labor market is running too hot, the Federal Reserve might have to hike interest rates more than investors expected as recently as yesterday.
On Thursday, labor unit costs and productivity numbers pointed to a moderation in wage pressure and an increase in productivity – a good sign of moderating inflation. And at his Wednesday press conference, Fed chairman Jerome Powell gave encouraging commentary on the disinflation he is seeing in the economy.
So while job growth and increased wages are good in moderate amounts, today's blowout report could suggest more overheating and inflation than expected. And that could lead market participants to rethink their declaration of victory over inflation earlier in the week.
Yet despite the red-hot jobs figures in the economy overall, the technology sector continues to see deceleration and weakness coming off the big pandemic-fueled gains of the last three years.
Last night, cloud computing leader Amazon (NASDAQ: AMZN) reported a fairly significant slowing in its Amazon Web Services (AWS) unit. Fourth-quarter revenue growth for AWS fell to 20%, down from 28% in the prior quarter and 40% in the year-ago quarter. Even worse, on the conference call with analysts, management said that in January, AWS growth had fallen to the mid-teens.
Besides Amazon, another cloud-based software company, Bill.com (NYSE: BILL), was down 25% today as of this writing, despite beating fourth-quarter estimates, as the company projected very weak total payments volume in the quarter ahead.
Bill.com makes cloud software that simplifies, digitizes, and automates the back-office payments processes for small businesses. It also appears to be seeing a big slowdown in tech spending.
Bill.com's customer base likely overlaps with that of HubSpot, a leader in digital marketing and customer relationship management that also focuses on small to medium-size businesses.
So, while Bill.com's muted outlook could spell trouble for HubSpot, Amazon's muted cloud computing forecast doesn't exactly bode well for enterprise data software companies Snowflake and Datadog, which run on top of AWS and other clouds.
Combine that with today's perhaps-too-hot jobs report, which could usher in higher interest rates, and its no surprise to see rate-sensitive growth stocks selling off in a big way.
SNOW data by YCharts
Now what
Even after these stocks' large declines from their highs, I cautioned yesterday they were still not cheap and could remain volatile, despite some signs of improvement on inflation. While I didn't expect such a large and sudden reversal off yesterday's gains, big daily swings like today's shouldn't be surprising for those who invest in these high-priced names in digital transformation.
Each of these companies has winning products, an excellent management team, and large growth opportunities, and therefore merit being on an investor's watch list. But their valuations remain somewhat high, which doesn't leave much room for error. They are still appropriate only for young investors with a very long time horizon, and the ability to withstand near-term volatility.
10 stocks we like better than Snowflake
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Snowflake wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Billy Duberstein has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Bill.com, Datadog, HubSpot, 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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What happened Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. Just as high-growth tech stocks surged yesterday on hopes for declining inflation without large job losses, today saw two data points that might have thrown cold water on each of those predictions. But don't tell that to the rest of the non-tech economy; today's January jobs report blew past expectations, suggesting the labor market remains very tight.
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What happened Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. But don't tell that to the rest of the non-tech economy; today's January jobs report blew past expectations, suggesting the labor market remains very tight. On Thursday, labor unit costs and productivity numbers pointed to a moderation in wage pressure and an increase in productivity – a good sign of moderating inflation.
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What happened Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. But don't tell that to the rest of the non-tech economy; today's January jobs report blew past expectations, suggesting the labor market remains very tight. So, while Bill.com's muted outlook could spell trouble for HubSpot, Amazon's muted cloud computing forecast doesn't exactly bode well for enterprise data software companies Snowflake and Datadog, which run on top of AWS and other clouds.
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What happened Shares of cloud-based software leaders Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) were falling back to earth today, down 7%, 7.2%, and 7.2%, respectively, as of 2:38 p.m. ET -- more than reversing yesterday's big gains. So, while Bill.com's muted outlook could spell trouble for HubSpot, Amazon's muted cloud computing forecast doesn't exactly bode well for enterprise data software companies Snowflake and Datadog, which run on top of AWS and other clouds.
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d59d4f09-b778-48d6-9583-83a83fa15f0d
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718370.0
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2023-02-03 00:00:00 UTC
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BlackRock Increases Position in Datadog, Inc. (DDOG)
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DDOG
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https://www.nasdaq.com/articles/blackrock-increases-position-in-datadog-inc.-ddog
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nan
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nan
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Fintel reports that BlackRock has filed a 13G form with the SEC disclosing ownership of 15.08MM shares of Datadog, Inc. Class A (DDOG). This represents 5.2% of the company.
In their previous filing dated September 8, 2022 they reported 14.51MM shares and 4.99% of the company, an increase in shares of 3.91% and an increase in total ownership of 0.21% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 28.12% Upside
As of February 2, 2023, the average one-year price target for Datadog, Inc. is $111.43. The forecasts range from a low of $76.76 to a high of $170.10. The average price target represents an increase of 28.12% from its latest reported closing price of $86.97.
The projected annual revenue for Datadog, Inc. is $2,262MM, an increase of 47.66%. The projected annual EPS is $1.20.
Fund Sentiment
There are 1299 funds or institutions reporting positions in Datadog, Inc.. This is an increase of 2 owner(s) or 0.15%.
Average portfolio weight of all funds dedicated to US:DDOG is 0.5506%, a decrease of 7.4464%. Total shares owned by institutions decreased in the last three months by 1.41% to 263,300K shares.
What are large shareholders doing?
ICONIQ Capital holds 11,959,144 shares representing 3.77% ownership of the company. In it's prior filing, the firm reported owning 14,168,957 shares, representing a decrease of 18.48%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
Price T Rowe Associates holds 9,056,244 shares representing 2.85% ownership of the company. In it's prior filing, the firm reported owning 16,852,560 shares, representing a decrease of 86.09%. The firm decreased its portfolio allocation in DDOG by 71.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,808,504 shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 7,504,449 shares, representing an increase of 3.89%. The firm increased its portfolio allocation in DDOG by 1.11% over the last quarter.
Capital Research Global Investors holds 7,050,239 shares representing 2.22% ownership of the company. In it's prior filing, the firm reported owning 4,700,651 shares, representing an increase of 33.33%. The firm increased its portfolio allocation in DDOG by 47.47% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,023,442 shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 5,865,321 shares, representing an increase of 2.63%. The firm increased its portfolio allocation in DDOG by 0.09% 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.
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 BlackRock has filed a 13G form with the SEC disclosing ownership of 15.08MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to US:DDOG is 0.5506%, a decrease of 7.4464%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
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Fintel reports that BlackRock has filed a 13G form with the SEC disclosing ownership of 15.08MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to US:DDOG is 0.5506%, a decrease of 7.4464%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
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Fintel reports that BlackRock has filed a 13G form with the SEC disclosing ownership of 15.08MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to US:DDOG is 0.5506%, a decrease of 7.4464%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
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Fintel reports that BlackRock has filed a 13G form with the SEC disclosing ownership of 15.08MM shares of Datadog, Inc. Class A (DDOG). Average portfolio weight of all funds dedicated to US:DDOG is 0.5506%, a decrease of 7.4464%. The firm decreased its portfolio allocation in DDOG by 17.98% over the last quarter.
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882abe14-20b7-4e7e-b726-c550d0d8b79a
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718371.0
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2023-02-02 00:00:00 UTC
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Why Snowflake, Datadog, and HubSpot Are Rallying Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-datadog-and-hubspot-are-rallying-today
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nan
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nan
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What happened
Shares of high-growth but no-profit tech stocks are surging higher today, with investor favorites Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallying 7.7%, 7.1%, and 6.7%, respectively, as of 1:38 p.m. EST.
There wasn't much in the way of company-specific news today. However, high-growth stocks with current operating losses have proven to be extremely sensitive to the interest-rate and inflation picture over the past year.
Not only did these stocks surge following Fed Chair Jay Powell's press conference late yesterday, but another economic report on labor productivity this morning added to the massive surge of optimism that the post-pandemic inflation spike is over, with rate-sensitive stocks across tech, financials, and consumer discretionary stocks all rallying today.
So what
These software-as-a-service (SaaS) stocks continue to post impressive top-line metrics, as each has developed best-in-class tools related to digital transformation.
Snowflake has pioneered a cutting-edge platform for enterprises to manage data across a wide range of clouds and other data silos that help businesses make better decisions. Datadog is a leader in observability, which enables organizations to monitor and track their increasingly complex IT environments in real time. And HubSpot has developed a leading digital-marketing and customer-relationship management software stack for businesses of all sizes.
However, as these companies see a big growth opportunity, they have to invest heavily in top tech talent to seize it, resulting in operating losses. With no current profits and trading at relatively high valuations based on their sales, their lack of profitability makes valuing these stocks rather difficult.
For any growth stock, there is a wide range of valuation possibilities, but an inflationary environment is the worst kind of setting for them. This is because the entirety of any profitless growth stock's value lies in its future profits. If inflation and interest rates are high, those future profits will be worth much less than they would be if they were earned today.
That's why these stocks have reacted so favorably to recent declining inflation data, which have significantly eased since November. Yet a final concern has been that the Federal Reserve's interest rate hikes, which have been successful in slowing inflation, would go too far and push the economy into a recession. That would crimp near-term growth of even the best stocks. Fed officials had maintained a very hawkish tone in recent public appearances, which scared market participants as recently as December.
However, after yesterday's decision to raise the federal funds rate by just 25 basis points, Chairman Jay Powell seemed to strike a more optimistic and conciliatory tone on further hikes and inflation. Powell finally acknowledged that the data have been showing significant "disinflation" -- a word he hadn't used at any of his previous press conferences -- while also signaling perhaps only a couple more small rate increases, if any.
In addition, Powell expressed optimism that getting to the Fed's 2% inflation target could happen without significant job losses, saying,
I think most forecasters would say that unemployment will probably rise a bit... But I continue to think that there's a path to getting inflation back down to 2% without a really significant economic decline or a significant increase in unemployment.
While much of the media's attention remains on yesterday's press conference, that "soft landing" hope got yet another positive data point this morning. Today, the Labor Department released fourth-quarter Nonfarm Productivity data. Q4 productivity growth came in at a 3% annualized growth rate -- higher than the 2.4% expected rate. In addition, Q3's productivity numbers were revised higher to 1.4%, versus the initial 0.8% metric. Of note, productivity still fell 1.3% for all of 2022 but appears to be reversing its declines into an upward trajectory.
Related to this, unit labor costs rose at just a 1.1% annualized rate, slower than the 2% rate in Q3 and 5.7% for all of 2022.
Unit labor costs and productivity metrics are key for the Fed, because the post-pandemic labor shortage has led to wage growth that has been too high to sustain the Fed's 2% inflation target. If companies need to pay more for labor to produce one unit of a product or service, that could lead to higher and "stickier" inflation.
However, if productivity is now recovering from the pandemic and unit costs are moderating, that means inflationary pressures are fading without damaging output. That should enable the Fed to slow down on interest rate hikes and increase the chances of threading the needle for a "soft landing."
SNOW PS Ratio data by YCharts.
Now what
While it may look as if tech investors are now in the clear, just remember that things are still far from certain. The post-pandemic environment has been strange, as most economists didn't see the rapid increase in inflation last year or the rapid disinflation now.
As you can see above, these three stocks still don't look "cheap" by conventional metrics. That means they could remain highly volatile should the interest rate environment change or if these companies encounter any internal or competition-related setbacks.
Of note, high-growth stocks that spent heavily on growth in the low-rate, pre-pandemic era now understand investors will want to see profits sooner or later. On that note, earlier this week, HubSpot did announce a 7% workforce reduction as it is taking this opportunity to streamline its business and boost its bottom line. It is possible that once these high-growth stocks pivot to making profits, investors may be underwhelmed.
So, high-growth, no-profit stocks with high price-to-sales ratios over 10 still remain a risk, in my view. While they have potentially exciting futures, these three only remain appropriate for younger investors with a long time horizon as older investors should gravitate toward more profitable stocks that return cash to shareholders today.
10 stocks we like better than HubSpot
When our award-winning 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 January 9, 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, HubSpot, 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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What happened Shares of high-growth but no-profit tech stocks are surging higher today, with investor favorites Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallying 7.7%, 7.1%, and 6.7%, respectively, as of 1:38 p.m. EST. However, after yesterday's decision to raise the federal funds rate by just 25 basis points, Chairman Jay Powell seemed to strike a more optimistic and conciliatory tone on further hikes and inflation. Powell finally acknowledged that the data have been showing significant "disinflation" -- a word he hadn't used at any of his previous press conferences -- while also signaling perhaps only a couple more small rate increases, if any.
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What happened Shares of high-growth but no-profit tech stocks are surging higher today, with investor favorites Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallying 7.7%, 7.1%, and 6.7%, respectively, as of 1:38 p.m. EST. Not only did these stocks surge following Fed Chair Jay Powell's press conference late yesterday, but another economic report on labor productivity this morning added to the massive surge of optimism that the post-pandemic inflation spike is over, with rate-sensitive stocks across tech, financials, and consumer discretionary stocks all rallying today. While much of the media's attention remains on yesterday's press conference, that "soft landing" hope got yet another positive data point this morning.
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What happened Shares of high-growth but no-profit tech stocks are surging higher today, with investor favorites Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallying 7.7%, 7.1%, and 6.7%, respectively, as of 1:38 p.m. EST. Not only did these stocks surge following Fed Chair Jay Powell's press conference late yesterday, but another economic report on labor productivity this morning added to the massive surge of optimism that the post-pandemic inflation spike is over, with rate-sensitive stocks across tech, financials, and consumer discretionary stocks all rallying today. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Billy Duberstein has no position in any of the stocks mentioned.
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What happened Shares of high-growth but no-profit tech stocks are surging higher today, with investor favorites Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallying 7.7%, 7.1%, and 6.7%, respectively, as of 1:38 p.m. EST. If inflation and interest rates are high, those future profits will be worth much less than they would be if they were earned today. Q4 productivity growth came in at a 3% annualized growth rate -- higher than the 2.4% expected rate.
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5dfe634a-2670-4081-837c-aaad183121e9
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718372.0
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2023-02-01 00:00:00 UTC
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Datadog Stock Is Joining My Watchlist. Here's Why
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DDOG
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https://www.nasdaq.com/articles/datadog-stock-is-joining-my-watchlist.-heres-why
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nan
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nan
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Tech companies are facing a tough time as the digitalization trend that surged during the pandemic returns to normal levels. Pair that with worsening macroeconomic conditions, and top tech companies like Amazon, Alphabet, and Meta have announced massive layoffs as the environment becomes increasingly challenging.
Datadog (NASDAQ: DDOG), the monitoring and security platform for cloud applications, went against the crowd by delivering mind-blowing growth of 61% in the third quarter of 2022. Upon further inspection, there are even more reasons to like the stock.
Image source: Getty Images.
Datadog's strong track record of execution
Datadog is a software-as-a-service (SAAS) company that helps customers monitor and secure their cloud applications and IT infrastructure. With Datadog's products, companies reduce the risk of downtime, secure their IT systems, and ensure the best user experience for their customers.
Initially offering a real-time software application and infrastructure monitoring service, Datadog has added multiple new products over the years, covering areas like application-performance management, log management, and more recently, cloud security.
By giving customers a simple-to-implement and easy-to-use platform, Datadog helps customers manage ever-more complex IT environments thanks to the growth of cloud computing. In return, satisfied customers spend more money with the company, while new customers continue to join the platform.
As a result, revenue surged tenfold from $101 million in 2017 to $1.03 billion in 2021. Management's latest guidance calls for 2022 revenue to hit $1.65 billion. On top of that, free cash flow has been positive in the last three years. It's quite impressive for a hypergrowth company to deliver this kind of growth with solid cash flow as well.
The future looks bright for the company ...
While past performance is no guarantee of future results, there are good reasons for investors to be optimistic going forward.
Topping the list is the massive tailwind of digital transformation and cloud migration that will remain in effect for the next decade (or potentially decades). In 2021, global cloud spending was just 8% of total global IT spending, indicating lots more growth is coming for the cloud-computing industry.
For its part, Datadog estimated that its target addressable market (TAM) will grow from $41 billion in 2022 to $62 billion in 2026. With just $1.53 billion in trailing-12-month (TTM) revenue, the young company has just touched the tip of the iceberg.
To capture this vast opportunity, Datadog invests heavily in marketing (24% of TTM revenue) and research and development (30% of TTM revenue). The former attracts new customers, while the latter fuels new products and services to increase existing customer-wallet share.
And here's the good news. Datadog has demonstrated this spending is paying off. In the last five years, the customer count more than tripled from 5,403 in 2017 to 18,800 in 2021. The percentage of customers using more than two products has also improved over time, up from 71% in the third quarter of 2020 to 80% in the third quarter of 2022. The change becomes even more stark for customers using four or more productions with that percentage doubling to 40% over the same period.
So long as Datadog can continue to innovate and deliver more (and better) products over time, it should have no problem keeping its growth machine spinning for years to come.
... but I'm not buying yet
Datadog has plenty of ingredients to make it a successful business, but that doesn't necessarily guarantee that it will be a winning investment for two reasons.
First, it has yet to prove itself in an economic recession. Thus, I would like to see how the company performs in the downturn many people are expecting this year. Datadog has defied the naysayers so far with its continued growth in 2022, and it will be important to watch the company's progress in the event the economy weakens further.
Second, the stock trades at a premium. For perspective, the tech company has a price-to-sales (PS) ratio of 15.7, which is higher than the valuation for established tech companies and even other high-growth names in the sector.
While it's not unreasonable for Datadog to trade at a premium given its rapid growth and strong prospects, buying at today's price offers no margin of safety. That said, I'm adding the stock to my watchlist and waiting for a better entry point.
10 stocks we like better than Datadog
When our award-winning 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 January 9, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. 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. Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Datadog, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG), the monitoring and security platform for cloud applications, went against the crowd by delivering mind-blowing growth of 61% in the third quarter of 2022. Pair that with worsening macroeconomic conditions, and top tech companies like Amazon, Alphabet, and Meta have announced massive layoffs as the environment becomes increasingly challenging. So long as Datadog can continue to innovate and deliver more (and better) products over time, it should have no problem keeping its growth machine spinning for years to come.
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Datadog (NASDAQ: DDOG), the monitoring and security platform for cloud applications, went against the crowd by delivering mind-blowing growth of 61% in the third quarter of 2022. Datadog's strong track record of execution Datadog is a software-as-a-service (SAAS) company that helps customers monitor and secure their cloud applications and IT infrastructure. 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), the monitoring and security platform for cloud applications, went against the crowd by delivering mind-blowing growth of 61% in the third quarter of 2022. Datadog's strong track record of execution Datadog is a software-as-a-service (SAAS) company that helps customers monitor and secure their cloud applications and IT infrastructure. By giving customers a simple-to-implement and easy-to-use platform, Datadog helps customers manage ever-more complex IT environments thanks to the growth of cloud computing.
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Datadog (NASDAQ: DDOG), the monitoring and security platform for cloud applications, went against the crowd by delivering mind-blowing growth of 61% in the third quarter of 2022. In return, satisfied customers spend more money with the company, while new customers continue to join the platform. While past performance is no guarantee of future results, there are good reasons for investors to be optimistic going forward.
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95e37919-ae62-4788-a075-eb6d1d4e2eea
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718373.0
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2023-01-29 00:00:00 UTC
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7 Growth Stocks That Will Be Big Winners in 2023
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DDOG
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https://www.nasdaq.com/articles/7-growth-stocks-that-will-be-big-winners-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
After a tumultuous bear market in 2022, investors are eager for a more stable year. Moreover, it seems as though the equity market is rebounding, with many of the best growth stocks trading in the green.
Though there is still considerable volatility in the market, there’s much to look forward to this year.
There are still plenty of risks, such as supply chain hiccups, high-interest rates, and other macroeconomic factors. Those who have been patient enough to wait until now could reap healthy long-term rewards. The valuations of many of the top growth stocks have become particularly attractive following the selloff last year. Having said that, here are seven growth stocks with great potential for superior returns in 2023.
AAPL Apple $145.93
ISRG Intuitive Surgical $247.26
CHPT ChargePoint $12.16
DDOG Datadog $77.23
U Unity Software $36.29
MARA Marathon Digital Holdings $8.02
PANW Palo Alto Networks $159.78
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors.
Even though the launch of the Apple Glass got delayed, it is still forging ahead into the AI/virtual reality sector. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now.
Meanwhile, its massive customer base continues to purchase its flagship products, such as iPhones, Apple watches, and other accessories, resulting in stronger revenue and earnings growth.
Apple has blown past estimates across both lines in 18 out of the past 20 quarters. This gives investors more confidence in buying the stock of this future-focused tech giant as it continues to play a major role in the ever-evolving economy.
Intuitive Surgical (ISRG)
Source: Sundry Photography / Shutterstock.com
Intuitive Surgical (NASDAQ:ISRG) is incredibly positioned for the future on the back of robust demand for robotic surgery in the upcoming decade.
The company’s success is already apparent in the glowing results of its da Vinci Surgical System, which saw double-digit growth in its installed base during its most recent quarter. As robotic technology continues to evolve and improve, it appears that Intuitive will be one of many beneficiaries of this trend.
ISRG’s track record of growing its sales and earnings has been mighty impressive. Over the past five years, Intuitive’s revenue growth has averaged 16%.
Analysts expect to see double-digit growth in earnings for the next five years. Layer that up with its massive addressable market, ISRG stock is likely to offer tremendous upside down the road.
ChargePoint (CHPT)
Source: JL IMAGES / Shutterstock.com
ChargePoint (NYSE:CHPT) is changing how electric mobility works with its robust range of charging solutions, boasting a leadership position in the niche.
The firm has grown its sales at an incredible pace, with revenues up over 90% in its most recent quarter. Also, with passenger EV sales expecting a 51% compound annual growth rate from 2020 to 2026, investing in CHPT stock remains an incredible long-term opportunity.
With the recent agreement between Chargepoint, Mercedes-Benz Group, and MNB Energy, EV drivers in the U.S. and Canada are sure to benefit from increased access to fast chargers that will get their vehicles up and running.
Even with a few cautionary notes, such as diminishing investors’ support for CHPT stock and the company’s road to profitability projected for several years down the line, it’s well worth investing in this EV charging giant.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions.
Instead of juggling multiple services to monitor and protect IT systems adequately, businesses can have it all under a one-stop-shop platform such as Datadog. Its intuitive and user-friendly service makes it easy for any business to access the necessary tools without needing specialized IT support.
This all-in-one approach makes Datadog so attractive for businesses looking for a comprehensive cloud solution.
Datadog has had a remarkable success story, with its sales jumping from $101 million in 2017 to over $1.2 billion in the past three quarters. Additionally, forward revenue growth estimates are over 50%, with the firm likely to break even soon. All this suggests that Datadog can continue growing at a robust pace and become a dominant force in its market.
Unity Software (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) is a leading video game engine developer who has effectively revolutionized the sphere.
However, Unity’s success has extended further than the game domain with its foray into video animation, architecture, and e-commerce. This bold expansion by Unity comes at key rival Unreal’s expense. Together, the two companies now control an impressive majority of the video-game-engine market with its potent user base.
The future looks bright for Unity’s software suite as the rise of virtual and augmented reality unlocks a new world of potential. The firm’s revenue growth has averaged over 40% growth over the past five years.
Also, it continues to invest in its cloud capabilities and has shifted to a subscription sales model, which should significantly expand its margins. With its latest advancements in VR/AR technology and subscription models, Unity will be well-poised to reap the rewards from this burgeoning industry over the long run.
Marathon Digital Holdings (MARA)
Source: Yev_1234 / Shutterstock
Marathon Digital Holdings (NASDAQ:MARA) has seen the potential growth in blockchain technology and its subsequent possibilities for the industry, providing the hope that the value of Bitcoin will not only return but will continue to expand.
Though 2022 wasn’t ideal, it’s far too early to write off the incomparable value Bitcoin can bring.
Marathon Digital Holdings has made a name for itself amongst bitcoin miners as an industry leader, consistently displaying impressive growth.
This is especially true during the crypto winter of 2022 when its output increased by 29%. Also, analysts believe that it could take until the year 2040 for all of the remaining two million bitcoin to be mined, pointing to a massive addressable market for the stock.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Palo Alto Networks (NASDAQ:PANW) is in an enviable position concerning the increasing demand for cybersecurity solutions.
During such unprecedented times, the need for secure access has driven the relentless search for reliable and advanced technologies, creating favorable conditions for Palo Alto’s security portfolio.
Investing heavily in research and development while leveraging its expansive data will undoubtedly place Palo Alto far ahead of its competitors in this digital age of security.
Palo Alto has long been a leader in the field of cybersecurity, and this recent distinction as the top global vendor is no surprise.
The company’s dedication to premium technology and strong consistency have put it in a position for success, positioning it far above the competition. Palo Alto’s impressive gross profit margins of over 60% indicate just how successful its operations have been and justify its premium valuation in the tech space.
This win is only another example of Palo Alto’s dominance within the industry, which surely set them up for continued success.
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 Growth Stocks That Will Be Big Winners in 2023 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 $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions. Meanwhile, its massive customer base continues to purchase its flagship products, such as iPhones, Apple watches, and other accessories, resulting in stronger revenue and earnings growth.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions. Intuitive Surgical (ISRG) Source: Sundry Photography / Shutterstock.com Intuitive Surgical (NASDAQ:ISRG) is incredibly positioned for the future on the back of robust demand for robotic surgery in the upcoming decade.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
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AAPL Apple $145.93 ISRG Intuitive Surgical $247.26 CHPT ChargePoint $12.16 DDOG Datadog $77.23 U Unity Software $36.29 MARA Marathon Digital Holdings $8.02 PANW Palo Alto Networks $159.78 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
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d668a619-3d29-4998-b269-74fda4b7719e
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718374.0
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2023-01-27 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-1
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $77.23, marking a +1.62% move from the previous day. This change outpaced the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 2.79% over the past month. This has lagged the Computer and Technology sector's gain of 12.65% and the S&P 500's gain of 5.73% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release, which is expected to be February 16, 2023. On that day, Datadog is projected to report earnings of $0.19 per share, which would represent a year-over-year decline of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $446.35 million, up 36.83% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 8.53% higher within the past month. Datadog is currently a Zacks Rank #2 (Buy).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 69.04. This represents a premium compared to its industry's average Forward P/E of 41.25.
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 industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Datadog (DDOG) closed at $77.23, marking a +1.62% 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 $77.23, marking a +1.62% move from the previous day. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. 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 $77.23, marking a +1.62% 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 $77.23, marking a +1.62% 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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1824b66d-93e2-40c3-9d5e-81927e31c16c
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718375.0
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2023-01-27 00:00:00 UTC
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Are Computer and Technology Stocks Lagging Asure Software (ASUR) This Year?
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DDOG
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https://www.nasdaq.com/articles/are-computer-and-technology-stocks-lagging-asure-software-asur-this-year-0
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nan
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nan
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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Asure Software Inc (ASUR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Asure Software Inc is a member of the Computer and Technology sector. This group includes 652 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Asure Software Inc is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ASUR's full-year earnings has moved 146.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that ASUR has returned about 8.6% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have lost about 27.3% on average. This means that Asure Software Inc is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Datadog (DDOG), has outperformed the sector so far this year. The stock's year-to-date return is 3.4%.
Over the past three months, Datadog's consensus EPS estimate for the current year has increased 32.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Asure Software Inc belongs to the Internet - Delivery Services industry, a group that includes 5 individual stocks and currently sits at #30 in the Zacks Industry Rank. Stocks in this group have gained about 18.1% so far this year, so ASUR is slightly underperforming its industry this group in terms of year-to-date returns.
In contrast, Datadog falls under the Internet - Software industry. Currently, this industry has 149 stocks and is ranked #59. Since the beginning of the year, the industry has moved -55.1%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Asure Software Inc and Datadog as they could maintain their solid performance.
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
Asure Software Inc (ASUR) : 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 in the Computer and Technology sector, Datadog (DDOG), has outperformed the sector so far this year. Click to get this free report Asure Software Inc (ASUR) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
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Another stock in the Computer and Technology sector, Datadog (DDOG), has outperformed the sector so far this year. Click to get this free report Asure Software Inc (ASUR) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past 90 days, the Zacks Consensus Estimate for ASUR's full-year earnings has moved 146.7% higher.
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Another stock in the Computer and Technology sector, Datadog (DDOG), has outperformed the sector so far this year. Click to get this free report Asure Software Inc (ASUR) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking more specifically, Asure Software Inc belongs to the Internet - Delivery Services industry, a group that includes 5 individual stocks and currently sits at #30 in the Zacks Industry Rank.
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Another stock in the Computer and Technology sector, Datadog (DDOG), has outperformed the sector so far this year. Click to get this free report Asure Software Inc (ASUR) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Is Asure Software Inc (ASUR) one of those stocks right now?
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0b9e6c2a-ed2f-4f86-b274-f9bd5359acfc
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718376.0
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2023-01-27 00:00:00 UTC
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2 Stocks Under $100 You Can Buy and Hold Forever
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DDOG
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https://www.nasdaq.com/articles/2-stocks-under-%24100-you-can-buy-and-hold-forever-5
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nan
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nan
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Although fractional shares make it easier for investors to purchase high-priced stocks, some brokerages still don't have that feature. As a result, you might be attracted to lower-priced stocks so they don't overweight your portfolio if you're just getting started.
Among stocks priced under $100 per share currently, few are better buys than The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). These tech stocks had a rough 2022 (during which they fell below $100 per share) but still have strong futures ahead of them. Keep reading to discover why these two are excellent buys in today's market.
The Trade Desk
As the advertising industry moves toward a more consumer-targeted model, The Trade Desk's software becomes essential to any advertiser's strategy. Its buy-side platform helps advertisers identify and place their ads in front of the most likely audience to engage with it.
It's also developing a better solution for tracking audiences with its Unified ID 2.0 (UID2) technology. Instead of tracking cookies (which are being phased out), the open-source code associates an email address with an anonymous ID, allowing The Trade Desk to track the consumer from platform to platform more accurately and securely.
With game-changing technology and a proven platform, The Trade Desk has become the go-to solution for advertisers.
It also has pretty solid financials. In Q3, it grew revenue by 31% and delivered $111 million in free cash flow -- a 28% margin. Although barely profitable in the third quarter (it posted earnings per share of $0.03), this number should rapidly expand throughout 2023 thanks to the effect of a one-time CEO performance bonus disappearing.
The stock trades at a pricey 48 times free cash flow, but with the growth opportunity The Trade Desk possesses, it's not terribly expensive. Digital advertising is in the early innings as an industry, and The Trade Desk is far from done growing. This stock is an excellent long-term investment and now looks like a great time to get in.
Datadog
As companies employ more software and harness data flows from various sources, monitoring how everything interacts becomes nearly impossible. That's where Datadog's software can help. With its industry-leading application performance monitoring and observability software, IT teams have the tools to see how information flows across an enterprise.
In addition to its core offering, Datadog has recently expanded into cloud security to help protect data flows from outside sources. With over 30 products in its arsenal, which span from security to monitoring, Datadog allows IT teams to expand their capabilities significantly without having to work with a different company.
This is a critical part of its business strategy, as customer adoption of more offerings creates a significant amount of revenue. It's doing a great job at this, as the average customer spent at least $130 this quarter for every $100 it spent last year. This increase in spending likely came from customers utilizing multiple products from Datadog.
QUARTER PERCENT OF CUSTOMERS USING 2 OR MORE PRODUCTS PERCENT OF CUSTOMERS USING 4 OR MORE PRODUCTS PERCENT OF CUSTOMERS USING 6 OR MORE PRODUCTS
Q3 2020 71% 20% 0%
Q3 2021 77% 31% 8%
Q3 2022 80% 40% 16%
Data source: Datadog.
As long as customers sign up for more offerings, Datadog should continue to be a successful investment.
Datadog also produces solid free cash flow, generating a 15% margin in Q3. However, Datadog is far from done growing, as its revenue rose 61% in the third quarter.
Because of Datadog's focus on growth instead of profitability, it's better to value it from a price-to-sales standpoint. At 16.2 times sales, it's valued practically the same as The Trade Desk, despite its faster growth.
With Datadog's software becoming increasingly important, it will likely continue to see strong customer growth and product usage expansion. This could make Datadog a lucrative investment over the coming years, and investors should take this opportunity to get into the stock.
Find out why Trade Desk is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Trade Desk is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 9, 2023
Keithen Drury has positions in Datadog and Trade Desk. The Motley Fool has positions in and recommends Datadog and Trade Desk. 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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Among stocks priced under $100 per share currently, few are better buys than The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). Although barely profitable in the third quarter (it posted earnings per share of $0.03), this number should rapidly expand throughout 2023 thanks to the effect of a one-time CEO performance bonus disappearing. In addition to its core offering, Datadog has recently expanded into cloud security to help protect data flows from outside sources.
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Among stocks priced under $100 per share currently, few are better buys than The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). The stock trades at a pricey 48 times free cash flow, but with the growth opportunity The Trade Desk possesses, it's not terribly expensive. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Among stocks priced under $100 per share currently, few are better buys than The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). The Trade Desk As the advertising industry moves toward a more consumer-targeted model, The Trade Desk's software becomes essential to any advertiser's strategy. The stock trades at a pricey 48 times free cash flow, but with the growth opportunity The Trade Desk possesses, it's not terribly expensive.
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Among stocks priced under $100 per share currently, few are better buys than The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). The Trade Desk As the advertising industry moves toward a more consumer-targeted model, The Trade Desk's software becomes essential to any advertiser's strategy. The stock trades at a pricey 48 times free cash flow, but with the growth opportunity The Trade Desk possesses, it's not terribly expensive.
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b01cab41-de30-4615-92cc-51bd1f78b248
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718377.0
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2023-01-27 00:00:00 UTC
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2 Nasdaq Growth Stocks Down 53% and 64% to Buy Hand Over Fist in 2023
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DDOG
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https://www.nasdaq.com/articles/2-nasdaq-growth-stocks-down-53-and-64-to-buy-hand-over-fist-in-2023
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nan
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nan
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The Nasdaq Composite is heavily weighted toward the technology sector, and that tends to make the index volatile. For instance, the Nasdaq is currently 31% off its high, while the broad-based S&P 500 is down just 17%. But there is also a silver lining to its tech-heavy nature. Despite falling more sharply of late, the Nasdaq has easily outperformed the S&P 500 over the past decade because it includes many innovative and potentially disruptive companies, and those companies can create tremendous value for patient shareholders.
Airbnb (NASDAQ: ABNB) and Datadog (NASDAQ: DDOG) fit that description. Both businesses are on the cutting edge of their respective industries, yet the challenging economic environment has sent shares of Airbnb and Datadog tumbling 53% and 64%, respectively, from their highs. But the economy will eventually rebound, and both stocks could soar when that happens.
Here's what investors should know.
Airbnb: A disrupter in the travel and tourism industry
Airbnb has become a powerhouse in the travel and tourism industry. It currently ranks as the second-most-visited website in the accommodation and hotels category, behind Booking.com by Booking Holdings, and it ranked as the fourth-most-downloaded travel app worldwide last year, according to Apptopia. That success stems from its asset-light business model.
Traditional hospitality companies spend millions of dollars (over several months or years) to build hotels, but Airbnb sources rental properties from a network of more than 4 million hosts. That makes Airbnb much more efficient. It takes minutes to onboard a new host, and it costs far less than building a hotel. Airbnb can also target marketing content at potential hosts in high-demand destinations to build its inventory on short notice, and it can target marketing content at potential guests in high-supply destinations to utilize its inventory more efficiently.
Building on that idea, Airbnb has also added features like flexible search parameters and search categories (e.g., beachside, amazing pool, luxury) that have transformed its platform into a recommendation engine. Flexible search allows Airbnb to surface relevant properties for guests who are flexible on where and when they travel, while search categories allow guests to find very specific accommodations in locations they may have never considered. Those features undoubtedly create value for guests, but they also help Airbnb use its inventory more efficiently.
In a nutshell, Airbnb is an asset-light travel and tourism company, and the financial benefits of its business model are evident in its financial results. Third-quarter revenue climbed 29% to $2.9 billion and free cash flow (FCF) soared 81% to $960 million, representing an impressive FCF margin of 33%. For context, Booking Holdings generated negative FCF of $96 million on $6.1 billion in revenue in the most recent quarter, and Marriott International generated $800 million in FCF on $5.3 billion in revenue, which is equivalent to an FCF margin of 15%.
Airbnb is well positioned to grow its business. Management values its addressable market at $3.4 trillion, and the company has demonstrated an admirable capacity for innovation. That quality should keep Airbnb at the forefront of the travel and tourism industry. And with shares trading at 8.3 times sales, a discount to the three-year average of 18.1 times sales, now is a good time to buy this growth stock.
Datadog: A leader in observability software
Datadog specializes in IT monitoring and cloud security. Its platform provides real-time insight into the health and performance of applications and infrastructure, which helps businesses avoid costly downtime in critical systems. It also supports collaboration among development, security, and operations teams, a practice known as DevSecOps, which improves business agility in areas like incident response and product development.
A few facets of the Datadog platform make it particularly compelling. First, it comes with over 600 pre-built integrations that make deployment simple. Second, it addresses a broad range of observability use cases. In fact, Datadog was the first company to combine metrics, traces, and logs (known as the "three pillars of observability") on a single platform. Third, its powerful artificial intelligence engine can predict performance issues and automate root cause analysis, accelerating time to resolution.
In a nutshell, the Datadog platform is both easy to use and powerful, and that combination has garnered praise from industry analysts. In the past year, Datadog has been recognized as a leader in multiple observability categories, including application performance monitoring, database monitoring, and cloud infrastructure monitoring.
Not surprisingly, those accolades have come alongside impressive financial results. Third-quarter revenue climbed 61% to $437 million and non-GAAP (adjusted) earnings soared 77% to $0.23 per diluted share.
And Datadog is set to maintain that momentum. Management estimates its market opportunity will reach $62 billion by 2026, and that figure should continue to climb, simply because modern businesses depend on an ever-growing number of software products and cloud services. More broadly, Datadog is a pioneer and an innovator in the observability software space, and those qualities should keep the company in growth mode for years to come.
Currently, shares trade at 15.8 times sales, a discount compared to the three-year average of 38.9 times sales. That's why this Nasdaq stock is worth buying.
Find out why Airbnb is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 9, 2023
Trevor Jennewine has positions in Airbnb. The Motley Fool has positions in and recommends Airbnb, Booking, and Datadog. The Motley Fool recommends Marriott International and recommends the following options: long January 2023 $115 calls on Marriott International. 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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Airbnb (NASDAQ: ABNB) and Datadog (NASDAQ: DDOG) fit that description. Its platform provides real-time insight into the health and performance of applications and infrastructure, which helps businesses avoid costly downtime in critical systems. Third, its powerful artificial intelligence engine can predict performance issues and automate root cause analysis, accelerating time to resolution.
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Airbnb (NASDAQ: ABNB) and Datadog (NASDAQ: DDOG) fit that description. And with shares trading at 8.3 times sales, a discount to the three-year average of 18.1 times sales, now is a good time to buy this growth stock. In the past year, Datadog has been recognized as a leader in multiple observability categories, including application performance monitoring, database monitoring, and cloud infrastructure monitoring.
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Airbnb (NASDAQ: ABNB) and Datadog (NASDAQ: DDOG) fit that description. Airbnb: A disrupter in the travel and tourism industry Airbnb has become a powerhouse in the travel and tourism industry. Airbnb can also target marketing content at potential hosts in high-demand destinations to build its inventory on short notice, and it can target marketing content at potential guests in high-supply destinations to utilize its inventory more efficiently.
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Airbnb (NASDAQ: ABNB) and Datadog (NASDAQ: DDOG) fit that description. Datadog: A leader in observability software Datadog specializes in IT monitoring and cloud security. More broadly, Datadog is a pioneer and an innovator in the observability software space, and those qualities should keep the company in growth mode for years to come.
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4f18d17d-ad2a-4417-8fc5-b62ef38a6e8d
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718378.0
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2023-01-26 00:00:00 UTC
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Why Datadog Stock Was Best-in-Breed on Thursday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-was-best-in-breed-on-thursday
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG) rallied on Thursday, surging as much as 6.5%. As of 3:20 p.m. ET, the stock was still up 6.1%.
While the rebounding market no doubt played a part in its ascent, the real reason Datadog gained ground was bullish commentary by a Wall Street analyst.
So what
Cantor Fitzgerald analyst Jonathan Ruykhaver initiated coverage of Datadog stock with an overweight (buy) rating. At the same time, the analyst assigned a price target of $95, which suggests potential gains for investors of 34%, compared to Wednesday's closing price.
Ruykhaver posited that Datadog's best-in-breed cloud-native observability platform is best positioned to provide monitoring across infrastructure, application performance, digital experience, and log management functions. Its software-as-a-service (SaaS) system was already a cut above, but the recent addition of cybersecurity and developer tools "rounds out" the platform.
He's not the only one singing Datadog's praises. Earlier this month, Datadog rode a tide of optimism, including that of Oppenheimer analyst Ittai Kidron, who called Datadog a "top pick for 2023." At the same time, the analyst reiterated the stock's outperform (buy) rating, while assigning a $105 price target, suggesting 48% upside.
The analyst believes the company will be relatively resilient to macroeconomic headwinds, due to its "mission-critical" nature. Furthermore, his bullish thesis got a lift from Datadog's recent foray into cybersecurity, which will significantly expand the company's total addressable market.
Now what
Datadog's ability to monitor essential systems and alert developers of issues before they result in expensive downtime is an attractive value proposition. Like other tech stocks, however, it's been hammered by the bear market, sending its stock down 62% from its late-2021 peaks.
The stock is currently trading for roughly 8 times next years' sales, which is a pretty reasonable price-to-sales ratio, especially when you consider its revenue growth is expected to top out at about 60% this year. Growth of that magnitude is deserving of a premium. It also makes the stock a buy.
10 stocks we like better than Datadog
When our award-winning 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 January 9, 2023
Danny Vena has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Datadog (NASDAQ: DDOG) rallied on Thursday, surging as much as 6.5%. While the rebounding market no doubt played a part in its ascent, the real reason Datadog gained ground was bullish commentary by a Wall Street analyst. Furthermore, his bullish thesis got a lift from Datadog's recent foray into cybersecurity, which will significantly expand the company's total addressable market.
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What happened Shares of Datadog (NASDAQ: DDOG) rallied on Thursday, surging as much as 6.5%. At the same time, the analyst assigned a price target of $95, which suggests potential gains for investors of 34%, compared to Wednesday's closing price. At the same time, the analyst reiterated the stock's outperform (buy) rating, while assigning a $105 price target, suggesting 48% upside.
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What happened Shares of Datadog (NASDAQ: DDOG) rallied on Thursday, surging as much as 6.5%. So what Cantor Fitzgerald analyst Jonathan Ruykhaver initiated coverage of Datadog stock with an overweight (buy) rating. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen.
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What happened Shares of Datadog (NASDAQ: DDOG) rallied on Thursday, surging as much as 6.5%. ET, the stock was still up 6.1%. That's right -- they think these 10 stocks are even better buys.
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0a623e17-d29c-451e-b786-9a7eedd37773
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718379.0
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2023-01-26 00:00:00 UTC
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Here is What to Know Beyond Why Datadog, Inc. (DDOG) is a Trending Stock
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DDOG
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-datadog-inc.-ddog-is-a-trending-stock-0
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nan
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nan
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this data analytics and cloud monitoring company have returned +1.3% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Internet - Software industry, to which Datadog belongs, has gained 12.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Datadog is expected to post earnings of $0.19 per share for the current quarter, representing a year-over-year change of -5%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
For the current fiscal year, the consensus earnings estimate of $0.91 points to a change of +89.6% from the prior year. Over the last 30 days, this estimate has changed +8.5%.
For the next fiscal year, the consensus earnings estimate of $1.10 indicates a change of +21.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has changed +1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Datadog.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Datadog, the consensus sales estimate of $446.35 million for the current quarter points to a year-over-year change of +36.8%. The $1.65 billion and $2.19 billion estimates for the current and next fiscal years indicate changes of +60.6% and +32.8%, respectively.
Last Reported Results and Surprise History
Datadog reported revenues of $436.53 million in the last reported quarter, representing a year-over-year change of +61.4%. EPS of $0.23 for the same period compares with $0.13 a year ago.
Compared to the Zacks Consensus Estimate of $412.15 million, the reported revenues represent a surprise of +5.92%. The EPS surprise was +53.33%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Datadog is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Datadog. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
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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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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of this data analytics and cloud monitoring company have returned +1.3% over the past month versus the Zacks S&P 500 composite's +4.6% change.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
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a92c8146-54de-4d4b-9a80-598b8cf86409
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718380.0
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2023-01-25 00:00:00 UTC
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Is The Bottom In For Cyber-Security Stocks?
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DDOG
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https://www.nasdaq.com/articles/is-the-bottom-in-for-cyber-security-stocks
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nan
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nan
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Cybersecurity stocks are down from their high-flying days in the post-pandemic world. Stocks from Palo Alto Networks (NASDAQ: PANW) to Datadog Inc. (NASDAQ: DDOG) and Paycom Software (NASDAQ: PAYC) are down 50% or more from those days, but the time to buy them might be at hand. Results from F5 Networks (NASDAQ: FFIV) suggest a bottom may begin to form soon, and this stock at least is trading at a value.
F5 Networks is trident at only 12X its earnings while others in this group, including blue chip Palo Alto Networks, are trading 44X to 88X its earnings. In this light, F5 Networks may be the best choice for investors, and it is already showing signs of bottoming.
F5 Networks Hits Bottom On Mixed Results And Outlook
F5 networks didn’t have a bad quarter, but its results show the surge in post-COVID security spending has run its course. The company’s revenue of $700 is up almost 2.0% versus last year but was fully priced in by the market. Revenue was driven by a 5% increase in Global Services offset by a -1% decline in Products. Product sales were driven by a 3% increase in software offset by a 4% decline in systems.
The good news is that margins did not contract as much as expected and left the bottom line in much better shape than forecast. The Q1 adjusted EPS of $2.47 is $0.14 ahead of the Marketbeat.com consensus and is coupled with a favorable outlook. The company is expecting to meet its 9% to 11% revenue growth goal and its forecast for double-digit EPS growth.
The only bad news is that Q2 EPS guidance is weak relative to the consensus estimates, but the market is shrugging that off. The takeaway appears to be stablility, which is as good as growth in a no-growth environment.
“We continue to expect 9% to 11% revenue growth for the year, though the mix may look different than what we expected three months ago,” continued Locoh-Donou. “We remain committed to maintaining double-digit non-GAAP earnings growth this year and on an annual basis going forward. We will continue to evaluate our cost base and take further action as needed to achieve this goal.”
More Reports Due Out In February
Datadog, Palo Alto Networks and Paycom all report in early to mid-February, and the expectations are high. However, the key takeaway from the consensus figures is that growth is slowing, which may weigh on share prices over the next 2 weeks. Assuming these companies can affirm a positive outlook for the year, they, too, may begin to bottom.
Now, these stocks are down -2% to -8% on the F5 news and not showing the same signs of support.
Since the earnings release, many analysts have come out to lower their price targets for F5. The salient point here is the consensus of the 6 new price targets is above the current Marketbeat.com consensus figure. The consensus is down on a YOY, 3-month and 1-month basis but still offers more than 20% upside for investors and the analysts are still holding the stock.
The Technical Outlook: F5 Networks Is At A Bottom
The weekly and daily charts agree F5 Networks is at the bottom. The question is whether this will be a point of full reversal or the stock will enter a trading range. It looks like a trading range is the most likely scenario. The targets for resistance are $150 and $158.50. This stock may trend higher if these levels can be broken, but analysts need to alter their tune. The next possible catalysts are the earnings reports from industry peers.
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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Stocks from Palo Alto Networks (NASDAQ: PANW) to Datadog Inc. (NASDAQ: DDOG) and Paycom Software (NASDAQ: PAYC) are down 50% or more from those days, but the time to buy them might be at hand. Results from F5 Networks (NASDAQ: FFIV) suggest a bottom may begin to form soon, and this stock at least is trading at a value. The only bad news is that Q2 EPS guidance is weak relative to the consensus estimates, but the market is shrugging that off.
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Stocks from Palo Alto Networks (NASDAQ: PANW) to Datadog Inc. (NASDAQ: DDOG) and Paycom Software (NASDAQ: PAYC) are down 50% or more from those days, but the time to buy them might be at hand. F5 Networks Hits Bottom On Mixed Results And Outlook F5 networks didn’t have a bad quarter, but its results show the surge in post-COVID security spending has run its course. We will continue to evaluate our cost base and take further action as needed to achieve this goal.” More Reports Due Out In February Datadog, Palo Alto Networks and Paycom all report in early to mid-February, and the expectations are high.
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Stocks from Palo Alto Networks (NASDAQ: PANW) to Datadog Inc. (NASDAQ: DDOG) and Paycom Software (NASDAQ: PAYC) are down 50% or more from those days, but the time to buy them might be at hand. F5 Networks is trident at only 12X its earnings while others in this group, including blue chip Palo Alto Networks, are trading 44X to 88X its earnings. F5 Networks Hits Bottom On Mixed Results And Outlook F5 networks didn’t have a bad quarter, but its results show the surge in post-COVID security spending has run its course.
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Stocks from Palo Alto Networks (NASDAQ: PANW) to Datadog Inc. (NASDAQ: DDOG) and Paycom Software (NASDAQ: PAYC) are down 50% or more from those days, but the time to buy them might be at hand. Results from F5 Networks (NASDAQ: FFIV) suggest a bottom may begin to form soon, and this stock at least is trading at a value. Since the earnings release, many analysts have come out to lower their price targets for F5.
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a832c6bf-1add-4da1-a222-7028b3e1a6d4
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718381.0
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2023-01-25 00:00:00 UTC
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Why Datadog, MongoDB, and CrowdStrike Were Sinking Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-mongodb-and-crowdstrike-were-sinking-today
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nan
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nan
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What happened
Shares of cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. ET.
There wasn't much company-specific news out of these three today, but it appears all are falling hard based on commentary from Microsoft (NASDAQ: MSFT), after the cloud giant released its earnings results last night for the second quarter of its fiscal 2023, ended Dec. 31, 2022.
Microsoft stock actually rose initially after the report, as its quarterly cloud numbers came in better than feared; however, when giving guidance on the post-release conference call, management pointed to a sharper slowdown in the current quarter. And if a defensive, competitively advantaged juggernaut like Microsoft is slowing down that much, it makes these more expensive and profitless software-as-a-service (SaaS) companies more vulnerable.
So what
Datadog is a purely cloud-based software suite in the field of observability, which helps enterprises monitor and protect the health of their important applications. MongoDB started as an on-premises software database company, but its cloud-based MongoDB Atlas database-as-a-service product is its fastest-growing. And CrowdStrike also takes a cloud-first approach to cybersecurity, with its endpoint security agent consistently feeding data back into its cloud-based Threat Graph to improve its algorithms.
So, overall health of cloud spending is central to each of these companies' growth. Yet on last night's conference call with analysts, Microsoft CEO Satya Nadella said:
[W]e are seeing customers exercise caution in this environment, and we saw results weaken through December. We saw moderated consumption growth in Azure and lower-than-expected growth in new business across the stand-alone Office 365, EMS, and Windows commercial products that are sold outside the Microsoft 365 suite. From a geographic perspective, we saw strong execution in many regions around the world. However, performance in the U.S. was weaker than expected.
CFO Amy Hood added that Microsoft saw its 38% Azure cloud growth (in constant currency) decelerate to the mid-30% range in December, and now expects that growth to decelerate another 4 to 5 percentage points in the current quarter.
That's a pretty big drop-off, as management noted customers have gone from accelerating their cloud spend during the pandemic to optimizing their cloud workloads and wringing out cost savings, while also pulling back on adding new software seats.
So why are Datadog, MongoDB, and CrowdStrike reacting even more harshly than Microsoft, which is only down about 3% as of this writing? This is likely because all of these companies are not profitable under generally accepted accounting principles (GAAP) yet, and are somewhat expensive based on a multiple of their sales. With interest rates increasing and the economy looking highly uncertain, investors are setting a much higher bar for no-profit growth stocks.
That means if a company is in its pre-profit growth and scaling phase, revenue growth needs to be really good to please investors today. And if a company as strong as Microsoft is seeing a growth slowdown, investors now fear a big deceleration in these three companies this year as well.
One other note of caution on CrowdStrike. One positive Nadella did note was the strength of Microsoft's cybersecurity products. Over the past year, Microsoft's integrated security stack surpassed $20 billion in revenue, with Microsoft noting customers were looking to consolidate cyber vendors across the space to save costs. While it's possible CrowdStrike could be one of those remaining winners, it appears the hypergrowth of cybersecurity software could become more challenged and competitive this year.
Now what
The technology sector is feeling the heat not only from the Federal Reserve's interest rate increases and a slowdown in the economy, but also coming off the accelerated cloud spending brought on by the pandemic.
The environment is a really tough one for unprofitable tech growth stocks, as they get hit in two ways; higher interest rates disproportionately penalize profits that are farther out into the future, and the hyper-growth of the past two years reverts to the mean. Until these companies start showing better profitability on a GAAP basis, and not "adjusted" for stock-based compensation, their stocks could remain challenged.
One positive to keep in mind; Nadella also reemphasized his view that technology, especially companies involved in digital transformation, should continue to grow at a higher pace than gross domestic product over the long term. That still means the tech sector is attractive from a long-term standpoint.
However, the sector appears to have run too far ahead of itself during the pandemic from a valuation standpoint. That makes profit-less software stocks a difficult trade right now. Still, these category leaders should be on investors' watch lists if they decline to lower valuations, or if interest rates fall in a meaningful way later this year.
Find out why CrowdStrike is one of the 10 best stocks to buy now
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*Stock Advisor returns as of January 9, 2023
Billy Duberstein has positions in Microsoft. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends CrowdStrike, Datadog, Microsoft, and MongoDB. 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 cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. There wasn't much company-specific news out of these three today, but it appears all are falling hard based on commentary from Microsoft (NASDAQ: MSFT), after the cloud giant released its earnings results last night for the second quarter of its fiscal 2023, ended Dec. 31, 2022. The environment is a really tough one for unprofitable tech growth stocks, as they get hit in two ways; higher interest rates disproportionately penalize profits that are farther out into the future, and the hyper-growth of the past two years reverts to the mean.
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What happened Shares of cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. Microsoft stock actually rose initially after the report, as its quarterly cloud numbers came in better than feared; however, when giving guidance on the post-release conference call, management pointed to a sharper slowdown in the current quarter. And if a company as strong as Microsoft is seeing a growth slowdown, investors now fear a big deceleration in these three companies this year as well.
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What happened Shares of cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. CFO Amy Hood added that Microsoft saw its 38% Azure cloud growth (in constant currency) decelerate to the mid-30% range in December, and now expects that growth to decelerate another 4 to 5 percentage points in the current quarter. And if a company as strong as Microsoft is seeing a growth slowdown, investors now fear a big deceleration in these three companies this year as well.
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What happened Shares of cloud-based software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and CrowdStrike (NASDAQ: CRWD) were sinking this morning, down 7.3%, 4.1%, and 5.6%, respectively, as of 11:20 a.m. One positive Nadella did note was the strength of Microsoft's cybersecurity products. The Motley Fool has positions in and recommends CrowdStrike, Datadog, Microsoft, and MongoDB.
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a166e5aa-fba6-4159-9792-ee72c81be141
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718382.0
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2023-01-25 00:00:00 UTC
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Here Are 2 Technology Stocks of the Future You Can Buy Today
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DDOG
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https://www.nasdaq.com/articles/here-are-2-technology-stocks-of-the-future-you-can-buy-today
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nan
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nan
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"It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them." That's a famous quote from Steve Jobs, the late co-founder of Apple, and the company's portfolio of innovative products certainly lives up to it.
The iPod (paired with iTunes) changed the music industry forever, and the iPhone completely revolutionized the mobile phone landscape. Apple is now a $2 trillion company, and while the stock remains a great investment, some of the best returns might come from the next generation of innovators.
In this case, I want to focus on cloud computing. According to an estimate by Grand View Research, the industry could triple in value between now and 2030 to $1.5 trillion annually. Any business, large or small, can now serve a global customer base thanks to the online tools delivered in the cloud.
Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) have developed unique platforms with the potential to drive cloud technology forward for several years to come. Here's why these stocks of the future are buys today.
1. Datadog is an essential cloud monitoring tool
The cloud allows businesses to do more with less. Hosting a website, managing administrative tasks, accepting payments, and storing data have never been easier or cheaper than they are today, thanks to cloud technology. But building and maintaining a digital presence does come with challenges -- particularly for large, complex organizations.
Datadog is a cloud monitoring service designed to spot technical issues that can sometimes go unnoticed. It helps companies from the cloud migration stage all the way through to running daily operations. When businesses operate physical stores, determining customer satisfaction is relatively easy because there's a face-to-face interaction. But when dealing with thousands of customers online, concerns often show up as lost sales because there isn't a channel for instant support.
Whether it's a retail store, gaming platform, or financial institution, Datadog can identify problem areas as soon as they pop up, allowing companies to implement fixes before customers come into contact with them. A technical bug might be affecting one small subset of users in a specific geographic location, for example, which the business may not know about without a tool like Datadog.
Large organizations in particular are flocking to the platform. In the recent third quarter of 2022 (ended Sept. 30), Datadog had 2,600 customers contributing at least $100,000 in annual recurring revenue, up from 1,800 at the same time last year. The company's revenue is set to top $1.65 billion for the full year, marking an increase of 60% compared to 2021.
The future of the business world is in the cloud, and Datadog will become increasingly essential as that shift continues. With its stock down 66% from it's all-time high, there's no time like the present to buy for the long term.
2. Snowflake streamlines complex cloud operations
Snowflake is a data solution for organizations that have multi-layered cloud operations, especially for those that use several of the leading providers of cloud services, like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. The company is known for its incredibly fast growth, and it even has the backing of Warren Buffett's investment company Berkshire Hathaway.
Snowflake's revolutionary Data Cloud allows customers to aggregate data from multiple sources and seamlessly share it across teams, breaking down silos to improve visibility and boost efficiency. It runs on a pay-per-use model, so companies can access all the computing power they need when analyzing mountains of information to draw insights, and can easily scale down in periods of low demand.
The company also hosts a marketplace where customers can buy datasets, or monetize their own data, adding yet another benefit to being part of the Snowflake ecosystem.
The U.S. technology sector had a rough 2022 amid the economic slowdown and, as a result, laid off 159,000 employees. But Snowflake bucked the trend and hired more than 500 new staff during the first three quarters of the year.
It was a necessary move to continue fueling Snowflake's rapid growth. In the third quarter of fiscal 2023 (ended Oct. 31), the company's remaining performance obligations (RPOs) crossed $3 billion for the first time -- a jump of 66% year over year. RPOs are a key metric because they represent Snowflake's pipeline of work, which is eventually expected to convert into revenue in the future.
The company has 7,292 customers, but only 543 of the Forbes Global 2,000 are signed up, so there's still plenty of room for growth. With Snowflake stock down 66% from its all-time high, this might be a great time to buy ahead of the cloud industry's expansion through the rest of this decade.
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 January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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, Amazon.com, Apple, Berkshire Hathaway, Datadog, Microsoft, and Snowflake. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. 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) and Snowflake (NYSE: SNOW) have developed unique platforms with the potential to drive cloud technology forward for several years to come. Whether it's a retail store, gaming platform, or financial institution, Datadog can identify problem areas as soon as they pop up, allowing companies to implement fixes before customers come into contact with them. It runs on a pay-per-use model, so companies can access all the computing power they need when analyzing mountains of information to draw insights, and can easily scale down in periods of low demand.
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Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) have developed unique platforms with the potential to drive cloud technology forward for several years to come. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Datadog, Microsoft, and Snowflake.
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Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) have developed unique platforms with the potential to drive cloud technology forward for several years to come. Snowflake streamlines complex cloud operations Snowflake is a data solution for organizations that have multi-layered cloud operations, especially for those that use several of the leading providers of cloud services, like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. With Snowflake stock down 66% from its all-time high, this might be a great time to buy ahead of the cloud industry's expansion through the rest of this decade.
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Datadog (NASDAQ: DDOG) and Snowflake (NYSE: SNOW) have developed unique platforms with the potential to drive cloud technology forward for several years to come. Here's why these stocks of the future are buys today. Snowflake streamlines complex cloud operations Snowflake is a data solution for organizations that have multi-layered cloud operations, especially for those that use several of the leading providers of cloud services, like Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud.
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c7338df7-2590-418b-93ff-e1e9aba635c0
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718383.0
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2023-01-25 00:00:00 UTC
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Nasdaq 100 Movers: DDOG, CHTR
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ddog-chtr
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nan
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nan
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In early trading on Wednesday, shares of Charter Communications topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, Charter Communications registers a 16.8% gain.
And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 9.6%. Datadog is lower by about 9.4% looking at the year to date performance.
Two other components making moves today are Enphase Energy, trading down 6.8%, and Regeneron Pharmaceuticals, trading up 0.8% on the day.
VIDEO: Nasdaq 100 Movers: DDOG, CHTR
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: DDOG, CHTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Charter Communications registers a 16.8% gain. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 9.6%.
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VIDEO: Nasdaq 100 Movers: DDOG, CHTR 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 Charter Communications topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. Year to date, Charter Communications registers a 16.8% gain.
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VIDEO: Nasdaq 100 Movers: DDOG, CHTR 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 Charter Communications topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 9.6%.
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VIDEO: Nasdaq 100 Movers: DDOG, CHTR 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 Charter Communications topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.1%. And the worst performing Nasdaq 100 component thus far on the day is Datadog, trading down 9.6%.
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e1ecf26a-6c2b-4026-a2df-87cd84cdcd85
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718384.0
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2023-01-25 00:00:00 UTC
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Will Snowflake Be a Trillion-Dollar Stock by 2030?
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DDOG
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https://www.nasdaq.com/articles/will-snowflake-be-a-trillion-dollar-stock-by-2030
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nan
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Snowflake (NYSE: SNOW) was one of the hottest growth stocks in 2020 and 2021. The cloud-based warehousing company went public at $120 per share in September 2020, and its stock more than doubled to $245 on its very first trade.
Snowflake's stock eventually hit an all-time high of $401.89 in November 2021. That gave it a market cap of $122.9 billion, a whopping 102 times the $1.2 billion in revenues it would generate in fiscal 2022 (which ended in January 2022).
But as of this writing, Snowflake's stock trades around $145 per share with a market cap of $46.6 billion. It still isn't cheap at 23 times this year's estimated sales of $2.1 billion, but that might be a reasonable valuation relative to its growth rates. Between fiscal 2019 and fiscal 2022, Snowflake's annual revenue grew at a jaw-dropping compound annual growth rate (CAGR) of 133%. But can it maintain that momentum over the long term and become a trillion-dollar stock by 2030?
Image source: Getty Images.
Why is Snowflake growing so rapidly?
Large organizations often store their data across a wide range of computing platforms and software applications, but those fragmented silos can make it tough to make data-driven decisions. Snowflake breaks down those silos, aggregates all of that fragmented data, and stores it in a centralized cloud-based data warehouse where it can be easily accessed by third-party applications and data visualization services like Salesforce's Tableau.
Snowflake isn't the only cloud-based data warehouse in town. Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) integrate similar services (Redshift and Azure Synapse, respectively) into their cloud infrastructure platforms.
However, Snowflake stands apart from those competitors because it works with a wide range of cloud computing platforms instead of locking its clients into a single ecosystem. It also splits its storage and computing platforms into stand-alone usage-based services, so companies only pay for the computing power they need instead of paying recurring subscriptions.
That flexibility made Snowflake a popular choice for companies that didn't want to tether themselves to Amazon, Microsoft, or other public cloud giants. Snowflake only served 1,547 customers at the end of July 2019. That figure had risen nearly five times to 7,292 at the end of the third quarter of fiscal 2023 last October.
Can Snowflake maintain that momentum?
Snowflake won't keep generating triple-digit growth through the end of the decade, but it could still grow much faster than many software companies. Last June, Snowflake predicted its product revenues (which account for most of its top line) would soar from $1.14 billion in fiscal 2022 to about $10 billion in fiscal 2029, which would equal a CAGR of 36%.
It expects that growth to be driven by a higher mix of larger customers, which generate over $1 million in trailing-12-month product revenue. It expects around 1,400 of its customers to belong to that high-value cohort in fiscal 2029, compared to only 287 customers in the third quarter of fiscal 2023.
That's a bold forecast, but Snowflake's high net revenue retention rate, which gauges its year-over-year revenue growth per existing customer, supports that bullish thesis. That key growth metric still came in at 165% in the third quarter, compared to 171% in the second quarter and 173% in the year-ago quarter.
It's highly unusual for a tech company that generates more than $1 billion in annual revenue to report such a high retention rate. For example, Datadog (NASDAQ: DDOG) -- another silo-busting hypergrowth company that is expected to generate $1.7 billion in revenues this year -- merely aims to keep its retention rates above 130%.
So could Snowflake become a trillion-dollar company?
If Snowflake generates $10 billion in revenues in fiscal 2029, then grows its revenue by 30% to $13 billion in fiscal 2030, it could easily generate some multibagger gains. However, its valuations will likely prevent it from joining the 12-zero club.
If Snowflake generates $13 billion in revenues in 2030 and still trades at 20 times sales, it would be worth $260 billion -- a near-six-bagger gain from its current market cap. But if its price-to-sales ratio cools to 10, which arguably seems more realistic for a company that generates 20% to 30% sales growth, it would only be worth about $130 billion.
That would be triple its current valuation, but it might disappoint investors who expect Snowflake to become a trillion-dollar company which is comparable to the top FAANG stocks in just a few years. That's because a lot of growth has already been baked into Snowflake's stock at its current prices -- and it needs to keep dazzling investors to maintain its premium valuation.
10 stocks we like better than Snowflake
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Snowflake wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of January 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Salesforce. The Motley Fool has positions in and recommends Amazon.com, Datadog, Microsoft, Salesforce, 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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For example, Datadog (NASDAQ: DDOG) -- another silo-busting hypergrowth company that is expected to generate $1.7 billion in revenues this year -- merely aims to keep its retention rates above 130%. That flexibility made Snowflake a popular choice for companies that didn't want to tether themselves to Amazon, Microsoft, or other public cloud giants. That would be triple its current valuation, but it might disappoint investors who expect Snowflake to become a trillion-dollar company which is comparable to the top FAANG stocks in just a few years.
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For example, Datadog (NASDAQ: DDOG) -- another silo-busting hypergrowth company that is expected to generate $1.7 billion in revenues this year -- merely aims to keep its retention rates above 130%. Large organizations often store their data across a wide range of computing platforms and software applications, but those fragmented silos can make it tough to make data-driven decisions. If Snowflake generates $10 billion in revenues in fiscal 2029, then grows its revenue by 30% to $13 billion in fiscal 2030, it could easily generate some multibagger gains.
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For example, Datadog (NASDAQ: DDOG) -- another silo-busting hypergrowth company that is expected to generate $1.7 billion in revenues this year -- merely aims to keep its retention rates above 130%. Last June, Snowflake predicted its product revenues (which account for most of its top line) would soar from $1.14 billion in fiscal 2022 to about $10 billion in fiscal 2029, which would equal a CAGR of 36%. If Snowflake generates $10 billion in revenues in fiscal 2029, then grows its revenue by 30% to $13 billion in fiscal 2030, it could easily generate some multibagger gains.
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For example, Datadog (NASDAQ: DDOG) -- another silo-busting hypergrowth company that is expected to generate $1.7 billion in revenues this year -- merely aims to keep its retention rates above 130%. That gave it a market cap of $122.9 billion, a whopping 102 times the $1.2 billion in revenues it would generate in fiscal 2022 (which ended in January 2022). If Snowflake generates $10 billion in revenues in fiscal 2029, then grows its revenue by 30% to $13 billion in fiscal 2030, it could easily generate some multibagger gains.
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eabd6dc7-faa6-4eeb-8823-2598eecdc202
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718385.0
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2023-01-24 00:00:00 UTC
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Noteworthy Tuesday Option Activity: NKE, DDOG, LOW
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DDOG
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-nke-ddog-low
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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 Nike (Symbol: NKE), where a total volume of 30,252 contracts has been traded thus far today, a contract volume which is representative of approximately 3.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.4% of NKE's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $128 strike put option expiring January 27, 2023, with 1,843 contracts trading so far today, representing approximately 184,300 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $128 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 15,823 contracts, representing approximately 1.6 million underlying shares or approximately 42.2% of DDOG's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $72 strike put option expiring January 27, 2023, with 3,059 contracts trading so far today, representing approximately 305,900 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange:
And Lowe's Companies Inc (Symbol: LOW) options are showing a volume of 10,994 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 42% of LOW's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $210 strike call option expiring March 17, 2023, with 1,593 contracts trading so far today, representing approximately 159,300 underlying shares of LOW. Below is a chart showing LOW's trailing twelve month trading history, with the $210 strike highlighted in orange:
For the various different available expirations for NKE options, DDOG options, or LOW options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ANET Technical Analysis
KLIC Split History
Top Ten Hedge Funds Holding IBDU
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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Especially high volume was seen for the $72 strike put option expiring January 27, 2023, with 3,059 contracts trading so far today, representing approximately 305,900 underlying shares of DDOG. Below is a chart showing NKE's trailing twelve month trading history, with the $128 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 15,823 contracts, representing approximately 1.6 million underlying shares or approximately 42.2% of DDOG's average daily trading volume over the past month, of 3.8 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Lowe's Companies Inc (Symbol: LOW) options are showing a volume of 10,994 contracts thus far today.
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Below is a chart showing NKE's trailing twelve month trading history, with the $128 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 15,823 contracts, representing approximately 1.6 million underlying shares or approximately 42.2% of DDOG's average daily trading volume over the past month, of 3.8 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Lowe's Companies Inc (Symbol: LOW) options are showing a volume of 10,994 contracts thus far today. Especially high volume was seen for the $72 strike put option expiring January 27, 2023, with 3,059 contracts trading so far today, representing approximately 305,900 underlying shares of DDOG.
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Below is a chart showing NKE's trailing twelve month trading history, with the $128 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 15,823 contracts, representing approximately 1.6 million underlying shares or approximately 42.2% of DDOG's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $72 strike put option expiring January 27, 2023, with 3,059 contracts trading so far today, representing approximately 305,900 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $72 strike highlighted in orange: And Lowe's Companies Inc (Symbol: LOW) options are showing a volume of 10,994 contracts thus far today.
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Below is a chart showing NKE's trailing twelve month trading history, with the $128 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 15,823 contracts, representing approximately 1.6 million underlying shares or approximately 42.2% of DDOG's average daily trading volume over the past month, of 3.8 million shares. Below is a chart showing LOW's trailing twelve month trading history, with the $210 strike highlighted in orange: For the various different available expirations for NKE options, DDOG options, or LOW options, visit StockOptionsChannel.com. Especially high volume was seen for the $72 strike put option expiring January 27, 2023, with 3,059 contracts trading so far today, representing approximately 305,900 underlying shares of DDOG.
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a40adbd1-07ac-4368-b644-ed4fb1e60692
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718386.0
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2023-01-22 00:00:00 UTC
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3 of the Fastest-Growing Tech Stocks on the Planet to Buy Hand Over Fist in a Bear Market
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DDOG
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https://www.nasdaq.com/articles/3-of-the-fastest-growing-tech-stocks-on-the-planet-to-buy-hand-over-fist-in-a-bear-market
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Despite a 4% pop to open the new year, the technology-heavy Nasdaq-100 index is still a long way from recovering its 33% loss from 2022. Many individual stocks fared even worse last year but despite what their stock prices indicate, some have experienced phenomenal growth in their underlying businesses -- and in the end, that's what investors should be looking for.
A panel of Motley Fool contributors has identified the top 20 fastest-growing companies on the planet and picked three of the standout performers. They are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and Zoom Video Communications (NASDAQ: ZM). Even though their sales are soaring, their stock prices remain suppressed, and that spells opportunity for investors.
An essential tool for the cloud
Anthony Di Pizio (Datadog): Businesses small and large are in the midst of a seismic transformation into the digital realm using cloud computing technology. The cloud is truly revolutionary; by operating online, businesses can build a wider geographic footprint, reduce friction for customers, and automate several everyday tasks -- and the cost of this technology continues to shrink.
But it does create some challenges. For example, determining customer satisfaction in a physical store is pretty easy; a person can consult an employee directly and provide instant feedback, prompting an immediate resolution to any issues that may arise. In the online world, however, a business might be dealing with thousands of faceless customers and if they have a bad experience, they often jump to a competing store without ever saying a word. A drop in sales might be the only indicator, and by then it's too late to react.
That's where Datadog comes in. It's the ultimate cloud monitoring tool used across a variety of industries from retail to entertainment to gaming. Datadog can alert businesses to website or application bugs as soon as they occur, and most importantly, before they result in lost revenue. It can pick up on issues that might only be affecting a small subset of customers or users in a specific geographic area, for example, which might otherwise go unnoticed.
Naturally, large organizations with a more complex digital presence are finding Datadog the most useful. As of the third quarter of 2022 the company had 2,600 customers spending at least $100,000 each year.
Despite its stock price falling 62% from its all-time high amid the broader tech sell-off, Datadog's revenue has soared at a compound annual rate of 65% over the past three years. That makes it one of the fastest-growing companies on the planet, so its weak stock price might represent a great opportunity for investors to buy now.
A growth stock that could keep on growing
Jamie Louko (Snowflake): It's been challenging to find another public business that has consistently expanded faster than Snowflake. Since the company came public in late 2020, Snowflake has yet to see a quarter where revenue hasn't soared over 60% year over year.
This adoption is not terribly surprising because the company operates in a vital, fast-moving industry. Snowflake is building the future by offering businesses a unified location for all their data. When it comes to large enterprises, many businesses store data on multiple platforms. However, analyzing that data to drive business decisions can be difficult when it is spread across competing clouds. Snowflake breaks down this wall, helping companies gain an edge by analyzing all their data together.
Don't believe that this is a vital part of an organization? Just look at the company's meteoric rise. In Snowflake's fiscal third quarter -- which ended Oct. 31, 2022 -- revenue soared 67% year over year to $557 million. Comparatively, Snowflake generated just $592 million in revenue during its entire 2021 fiscal year, which ended Jan. 31, 2021.
This rapid adoption is being driven largely by preexisting customers. Once an enterprise starts using Snowflake, it realizes how valuable it is. These businesses subsequently become more reliant on Snowflake, as seen by the company's world-class net retention rate of 165% in Q3.
The stars seem to be aligning for Snowflake as it capitalizes on this lucrative industry, and profitability is coming with it. The company has seen its non-GAAP (adjusted) free-cash-flow margin rise from negative 12% in fiscal year 2021 to 21% in the first nine months of fiscal 2023. With climbing cash generation, massive adoption, and its criticality to businesses, Snowflake looks like a company to buy on the dip and own for the long haul.
One of the fastest-growing software companies in history
Trevor Jennewine (Zoom Video Communications): Zoom is a cloud communications company best known for Zoom Meetings, a videoconferencing application that became ubiquitous during the pandemic. Its immense popularity propelled Zoom's annual revenue run rate to $2 billion in 2020, just nine years after the company was founded. No software company has ever hit that milestone more quickly.
Of course, growth has slowed substantially over the last two years. In fact, third-quarter revenue rose just 5% to $1.1 billion and cash from operations actually dropped 25% to $295 million. But investors need to consider those numbers in context. In spite of the recent deceleration, Zoom has still grown revenue at 100% annually over the last three years, and the company is well positioned to reaccelerate revenue growth in the future.
Churn from online customers (who that adopted Zoom Meetings through self-service channels) has been the primary headwind to top-line growth. In fact, third-quarter revenue from enterprise customers (those engaged by a direct sales team) climbed 20%. Fortunately, churn rates in the online cohort have now returned to pre-pandemic levels, and management expects revenue from online customers to stabilize by the middle of next year.
Also noteworthy, Zoom now has a far more robust portfolio than it did before the pandemic, which means its value proposition for customers is much more compelling. Its newer products include cloud phone system Zoom Phone, customer service solution Zoom Contact Center, and artificial intelligence tools that boost productivity for sales teams and customers service agents. In a nutshell, Zoom has evolved from a videoconferencing software vendor into a full communications company.
That transition should excite investors for two reasons. First, Zoom can address the communications needs of its customers more completely, and given its market leadership in videoconferencing software, Zoom is well positioned to drive adoption of adjacent products like Zoom Phone and Zoom Contact Center. Second, Zoom now has a much larger total addressable market (TAM). In fact, management says its TAM will reach $125 billion by 2026, meaning the company has plenty of room to grow.
There is one more metric worth mentioning. Zoom reported 32% growth in remaining performance obligation (RPO) in the third quarter. RPO is a leading indicator of future revenue, and its rapid growth implies better days ahead for Zoom. Shares currently trade at 4.7 times sales -- a serious bargain compared to the three-year average of 34.9 times sales. That's why investors should buy a few shares of this growth stock today.
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 January 9, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko has positions in Datadog and Snowflake. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, Snowflake, and Zoom Video Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and Zoom Video Communications (NASDAQ: ZM). The cloud is truly revolutionary; by operating online, businesses can build a wider geographic footprint, reduce friction for customers, and automate several everyday tasks -- and the cost of this technology continues to shrink. For example, determining customer satisfaction in a physical store is pretty easy; a person can consult an employee directly and provide instant feedback, prompting an immediate resolution to any issues that may arise.
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They are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and Zoom Video Communications (NASDAQ: ZM). One of the fastest-growing software companies in history Trevor Jennewine (Zoom Video Communications): Zoom is a cloud communications company best known for Zoom Meetings, a videoconferencing application that became ubiquitous during the pandemic. Its newer products include cloud phone system Zoom Phone, customer service solution Zoom Contact Center, and artificial intelligence tools that boost productivity for sales teams and customers service agents.
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They are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and Zoom Video Communications (NASDAQ: ZM). Since the company came public in late 2020, Snowflake has yet to see a quarter where revenue hasn't soared over 60% year over year. One of the fastest-growing software companies in history Trevor Jennewine (Zoom Video Communications): Zoom is a cloud communications company best known for Zoom Meetings, a videoconferencing application that became ubiquitous during the pandemic.
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They are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and Zoom Video Communications (NASDAQ: ZM). Since the company came public in late 2020, Snowflake has yet to see a quarter where revenue hasn't soared over 60% year over year. First, Zoom can address the communications needs of its customers more completely, and given its market leadership in videoconferencing software, Zoom is well positioned to drive adoption of adjacent products like Zoom Phone and Zoom Contact Center.
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9dd27309-93d0-4eed-8361-3b850c9a34fd
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718387.0
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2023-01-21 00:00:00 UTC
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Why I'm Confident in This Fantastic SaaS Stock
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DDOG
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https://www.nasdaq.com/articles/why-im-confident-in-this-fantastic-saas-stock
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nan
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nan
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Motley Fool contributor Jamie Louko owns Datadog (NASDAQ: DDOG) stock, and it's one of his largest positions for a reason. Find out why this software-as-a-service (SaaS) stock is a fantastic opportunity in the full video.
*Stock prices used were the midday prices of Jan. 19, 2023. The video was published on Jan. 20, 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 January 9, 2023
Jamie Louko has positions in Datadog. Zane Fracek 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. Zane Fracek and Jamie Louko are affiliates of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their 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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Motley Fool contributor Jamie Louko owns Datadog (NASDAQ: DDOG) stock, and it's one of his largest positions for a reason. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Zane Fracek and Jamie Louko are affiliates of The Motley Fool and may be compensated for promoting its services.
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Motley Fool contributor Jamie Louko owns Datadog (NASDAQ: DDOG) stock, and it's one of his largest positions for a reason. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Zane Fracek and Jamie Louko are affiliates of The Motley Fool and may be compensated for promoting its services.
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Motley Fool contributor Jamie Louko owns Datadog (NASDAQ: DDOG) stock, and it's one of his largest positions for a reason. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jamie Louko has positions in Datadog.
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Motley Fool contributor Jamie Louko owns Datadog (NASDAQ: DDOG) stock, and it's one of his largest positions for a reason. See the 10 stocks *Stock Advisor returns as of January 9, 2023 Jamie Louko has positions in Datadog. The Motley Fool has positions in and recommends Datadog.
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2dc637cf-f038-4365-929c-cf40c0c2ce78
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718388.0
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2023-01-19 00:00:00 UTC
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Diamonds in the Rough: Which of the Nasdaq 100's Biggest Laggards Are Screaming Buys?
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DDOG
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https://www.nasdaq.com/articles/diamonds-in-the-rough%3A-which-of-the-nasdaq-100s-biggest-laggards-are-screaming-buys
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nan
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nan
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Last year wasn't a great year for Nasdaq stocks. In fact, the Nasdaq 100 had its worst year since 2008, logging an annual total return of negative 32% in 2022. Yet some stocks performed far worse than the average.
DDOG data by YCharts.
For example, Lucid Group and Rivian Automotive both declined 82%, Atlassian plunged by 66%, and social media leader Meta Platforms shed 64%.
So, when sorting through the wreckage, are there any dogs of the Nasdaq 100 that are actually diamonds in the rough? I say yes: Align Technology (NASDAQ: ALGN) and Datadog (NASDAQ: DDOG).
Image source: Getty Images.
1. Align Technology
Down roughly 68% in 2022, Align Technologies was one of the worst-performing stocks in the Nasdaq 100. After experiencing sizzling growth during earlier phases of the COVID-19 pandemic, Align is enduring what now looks like a brutal hangover.
The maker of custom cosmetic dental products has missed consensus earnings estimates in its last three quarterly reports, and revenue has declined 12% year over year. As was the case for many pandemic stocks, the period's unusual macroeconomic conditions created a sugar high -- followed by an upset stomach.
In 2021, Align's year-over-year revenue growth vaulted to an eye-popping 187% -- a level that was never sustainable. With so much of the world stuck at home -- and communicating with co-workers via video calls -- people eagerly snapped up Align's Invisalign products. Yet, that pull forward in demand hurt Align's top and bottom lines in 2022. Adding to Align's problems was the surging U.S. dollar. With nearly half of its sales occurring outside of the U.S., the company estimates negative foreign exchange impacts totaled $57 million in the third-quarter of 2022 alone.
Nevertheless, the company's business model remains solid. After all, a person's smile is one of the first things we notice and Align's products help orthodontists scan, plan, and treat patients' teeth. Align utilizes advanced scanning technology and 3D printing to custom-mold and produce retainers that perfectly fit its patients' teeth. What's more, Align is still early in its growth phase. The company has served over 21 million customers in North America, Europe, and Asia -- but it estimates there are over 500 million potential customers for its products.
Meanwhile, from a valuation standpoint, Align looks attractive. Its enterprise-value-to-revenue ratio stands at 4.7 -- its lowest level since 2013. Its forward price-to-earnings multiple of 29.3 is almost half of its two-year average forward P/E of around 49.
ALGN PE Ratio (Forward) data by YCharts
Moreover, a weakening dollar and normalizing demand should help the company grow earnings again in 2023. Wall Street expects Align to earn $7.89 per share in 2023, up roughly 11% from 2022. And for shareholders, there's also the potential for a takeover. With Align's valuation sitting near its multiyear lows and a market cap of only $17 billion, there's a chance that some large healthcare company could decide to gobble it up.
So, for investors who are willing to ride out a few more months of rocky sailing in exchange for long-term upside, Align Technology looks like a good choice.
Image source: Getty Images.
2. Datadog
After its initial public offering in September 2019, cloud-computing software stock Datadog ripped higher over the next two years before crashing back to Earth in 2022. Shares fell by roughly 59% last year, placing Datadog among the Nasdaq 100's biggest losers.
At the same time, Datadog's fundamentals have held up remarkably well. The company continues to grow revenue at a blistering pace. In the third quarter, sales jumped 61% year over year and gave it a trailing 12-month total of $1.5 billion.
Behind the staggering growth is a core business that continues to benefit from the massive growth of cloud computing. Datadog is a software-as-a-service company that sells access to modules that help organizations better manage their cloud applications, data, and workflow.
As of Sept. 30, the company had more than 22,000 customers, and about 2,600 of those customers were generating at least $100,000 in annual recurring revenue for Datadog. In fact, most of its clients are paying for multiple modules: 80% use two or more modules; 40% use four or more; and 16% use six or more.
Another key metric for Datadog is its dollar-based net retention rate, which stands at 130%. That means its established customers increased their spending with it by an average of 30% year over year.
DDOG Gross Profit (TTM) data by YCharts.
Datadog's gross profit for the past 12 months stands at $1.2 billion, with gross margins of around 79%. And while the company has yet to achieve consistent profitability, it is generating around roughly $364 million of free cash flow.
With a secular growth tailwind at its back, I think Datadog is a screaming buy. Long-term investors should take notice.
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 January 9, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Align Technology, Atlassian, Datadog, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DDOG data by YCharts. I say yes: Align Technology (NASDAQ: ALGN) and Datadog (NASDAQ: DDOG). DDOG Gross Profit (TTM) data by YCharts.
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I say yes: Align Technology (NASDAQ: ALGN) and Datadog (NASDAQ: DDOG). DDOG data by YCharts. DDOG Gross Profit (TTM) data by YCharts.
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I say yes: Align Technology (NASDAQ: ALGN) and Datadog (NASDAQ: DDOG). DDOG data by YCharts. DDOG Gross Profit (TTM) data by YCharts.
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I say yes: Align Technology (NASDAQ: ALGN) and Datadog (NASDAQ: DDOG). DDOG data by YCharts. DDOG Gross Profit (TTM) data by YCharts.
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de857bca-0267-4f69-86e9-a72c57b8db29
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718389.0
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2023-01-19 00:00:00 UTC
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Two “Strong Buy” Tech Stocks with Over 30% Upside
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DDOG
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https://www.nasdaq.com/articles/two-strong-buy-tech-stocks-with-over-30-upside
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nan
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nan
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The most valuable tech equities are issued by businesses creating the future. Top analysts recommend that investors should ignore short-term noise and pick stocks that have robust long-term potential. Using TipRanks' Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG).
This tool allows investors to see which stocks are being recommended by the best-performing analysts. The Stock Screener Tool is easy to use and can help identify stocks with solid potential based on criteria like:
Upside potential
Smart Score
Dividend yield
Analyst consensus
Market cap, and more.
Let's have a look at these two companies.
Datadog (DDOG)
Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. The company provides a platform for cloud observability, monitoring, and security.
Datadog sees a huge market opportunity amidst rising cyber crime globally. Gartner estimates the total addressable market for observability to increase from $41 billion in 2022 to $62 billion in 2026.
Datadog shareholders may be concerned as the stock has plunged about 47% over the past year. Still, the 70% return generated by DDOG stock over the past three years is impressive.
Datadog's revenue has increased by more than 50% each year since the company went public. Revenue grew 72% in the first nine months of 2022. The rapid growth in the company's revenue makes it a good stock to invest in.
What is the Target Price for DDOG Stock?
Datadog has 25 recent analyst reviews, including 19 Buys and six Holds, giving the stock a Strong Buy consensus rating from the experts on Wall Street. The stock is currently trading at $69.70 and the average price target of $104.77 suggests 50.3% upside potential.
Alphabet (GOOGL, GOOG)
Alphabet is the parent company of the popular Android smartphone operating system and the online search giant Google. Over 90% of the global search market is dominated by Google.
GOOGL stock has declined nearly 33% over the past year as investors fear a potential recession, rising interest rates, and a slowing ad market. Nevertheless, numerous factors indicate that Alphabet's long-term business and financial prospects remain excellent. The company is in a strong position to capitalize on the expanding digital advertising and cloud computing markets.
Alphabet has the financial capacity to keep raising shareholder value because of its large cash reserves and free cash flow. It can utilize the funds for strategic acquisitions, share repurchases, and capital investments.
Alphabet has a history of acquiring businesses to fuel expansion. The tech sector has been slowing down over the past year, causing valuations to decline. Alphabet has the financial clout to seize this chance and go on the attack.
Is GOOGL a Buy, Sell, or Hold?
All the 32 analysts covering Alphabet stock have given a Buy rating, demonstrating Wall Street's bullish sentiment for the company. Overall, the stock has a Strong Buy consensus rating at a target price of $126.09, which implies an upside potential of 38.4% from current levels.
Conclusion
Both Datadog and Alphabet are leading players in their respective fields and have fantastic growth potential, putting them in a position to perhaps deliver market-crushing returns in the upcoming years.
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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Using TipRanks' Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG). Datadog (DDOG) Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. Still, the 70% return generated by DDOG stock over the past three years is impressive.
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Using TipRanks' Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG). Datadog (DDOG) Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. Still, the 70% return generated by DDOG stock over the past three years is impressive.
|
Using TipRanks' Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG). Datadog (DDOG) Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. Still, the 70% return generated by DDOG stock over the past three years is impressive.
|
Using TipRanks' Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG). Datadog (DDOG) Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. Still, the 70% return generated by DDOG stock over the past three years is impressive.
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13f696a5-f5d5-45b8-95e4-c29d81cd4288
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718390.0
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2023-01-17 00:00:00 UTC
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The 7 Best Growth Stocks to Buy Now
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DDOG
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https://www.nasdaq.com/articles/the-7-best-growth-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The New Year seems to have changed investors’ sentiment. After a grueling bear market in 2022, investors are enjoying a better start to this year. And leading the way are the best growth stocks which might have finally turned the corner.
However, the technology industry is still facing plenty of risks. For example, supply chains remain unsettled, interest rates remain high, and the Federal Reserve seems set to hike rates a couple more times before its tightening campaign is completed. So don’t necessarily expect smooth sailing for tech stocks going forward.
But there are finally some signs of optimism in the stock market. And, after the huge selloff we saw in 2022, the valuations of many growth stocks are quite attractive. These seven growth stocks should post superior returns in 2023.
TSM Taiwan Semiconductor $89
DDOG Datadog $72.60
V Visa $223
AI C3.ai $13
STM STMicroelectrnics $41.72
BROS Dutch Bros $30
U Unity Software $27.65
Taiwan Semiconductor Manufacturing (TSM)
Source: Sundry Photography / Shutterstock.com
Taiwan Semiconductor Manufacturing (NYSE:TSM) stock has rallied sharply over the past quarter. Despite that, its shares are still down more than 35% over the past 12 months.
The sharp decline of TSM stock was especially shocking as Taiwan Sem is one of the world’s most important tech companies. It is far and away the world’s largest contract producer of computer chips and integrated circuits, and the company retains a market capitalization north of $400 billion.
In addition to the general tech malaise, there were specific reasons behind Taiwan Semiconductor’s decline. For one thing, the demand for semiconductors fell in 2022 after booming for an extended period heading into last year. On top of that, political tensions are mounting between Taiwan and China. If China launches a military strike against Taiwan, TSM would face real, potentially catastrophic risk.
That said, Taiwan Semiconductor Manufacturing seems cheap enough to be worth the risk, as its shares are now trading at 15 times analysts’ average forward earnings estimate for the chip maker.
Moreover, the company has started expanding production facilities in Arizona to reduce its geopolitical risk while also taking advantage of subsidies from the CHIPS Act which promotes U.S.-based chip manufacturing.
And rounding out the bull case, Warren Buffett’s Berkshire Hathaway (NYSE:BRK-B) disclosed that it has taken a big stake in Taiwan Semi stock.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) provides cloud monitoring and security functions via software-as-a-service solutions. Datadog’s appeal lies in its all-in-one platform.
In other words, DDOG’s clients can monitor and secure their servers, workflows, databases, and their other IT hardware from one central location. In contrast, traditional solutions are compartmentalized, creating potential blind spots and vulnerabilities. Having all these functions in one place makes it easier for firms’ IT professional to look at everything simultaneously.
Datadog has had tremendous success. Analysts, on average, expect the company’s 2022 sales to come in at $2.2 billion, up from $101 million in 2017. And analysts’ mean estimates call for its top line to increase 33% annually in the coming years.
Datadog isn’t a tremendous profit machine yet, but it is in the black. The fact that it isn’t burning cash is a big advantage as many tech names struggle. Datadog has plenty of time to keep growing its business and become a leader among tech names in the future.
Visa (V)
Source: Kikinunchi / Shutterstock.com
It’s no secret that the credit card companies are incredible businesses. They impose, in effect, a transaction tax on the global economy. As the world grows, Visa (NYSE:V) effortlessly makes more money. But, folks might wonder, doesn’t this growth have to come to an end at some point?
It’s true that Visa’s market will eventually be saturated. But it’s not there yet. Emerging markets offer tremendous opportunities for Visa and its peers to continue converting vendors from cash to credit. In addition, the pandemic caused rapid adoption of touch-free payments solutions which usually require a credit or debit card.
Visa has added, positive drivers for 2023. The return of international travel and tourism coming out of the pandemic has done wonders for Visa, as it charges much higher fees on international transactions which involve multiple currencies.
As if that weren’t enough, the weakening U.S. dollar will now aid Visa as well. Visa reported a significant reduction in its earnings in 2022 thanks to the strengthening of the U.S. dollar. This caused Visa’s revenues from other regions such as Europe to be worth less in dollars.
Now, however, the value of the dollar has dropped 10% over the past quarter, and that will greatly boost Visa’s earnings .
C3.ai (AI)
Source: Shutterstock
C3.ai (NYSE:AI) is an enterprise-focused, artificial intelligence company. The company’s software platform helps customers design and build AI-powered tools for working with, processing, and visualizing data.
C3.ai has been a disappointing investment since going public, with the shares dropping from a peak of $161 in 2020 to just $13 per share today.
However, 2023 could be the turning point for C3.ai. For one thing, investors’ demand for AI stocks is surging thanks to ChatGPT, an AI-powered tool. The rapid growth in the popularity of ChatGPT has helped awaken interest in AI technologies.
Moreover, C3.ai has a fantastic balance sheet. It has $8 per share of net cash on its balance sheet, meaning that investors are paying just $5 per share for its actual business. Furthermore, the company already has more than $250 million of annual revenues, while its market capitalization is down to $1.3 billion.
C3.ai got off to a slow start as it initially focused on relatively slow-growth industries such as oil and gas. However, C3.ai has started winning big contracts with the Department of Defense, which should set the stage for investors to give this company a higher valuation. That, plus the company’s huge cash balance, makes AI stock a good pick for the rest of the year.
STMicroelectronics (STM)
Source: Michael Vi / Shutterstock.com
STMicroelectronics (NYSE:STM) is a chip maker The firm is broadly diversified and has exposure to a number of promising fields and applications within the semiconductor industry.
STMicroelectronics develops silicon carbide chips used by power and electronics companies. STM also creates chips that power internet of things products and 3D sensors. STMicroelectronics should prosper from the proliferation of of smart autos, along with increased opportunities in the transportation sector as that space becomes more electrified.
STM stock looks exceptionally cheap at the moment, as the shares are trading for just 11 times both the company’s current and forward earnings. The risk is that chip makers might face a glut, as the sector’s inventories have risen.
That said, STM stock should be a winner over the long haul, given its attractive valuation and the multiple, promising end markets which STMicroelectronics serves.
Dutch Bros (BROS)
Source: RicoPatagonia / Shutterstock.com
Dutch Bros (NYSE:BROS) is a small, rapidly growing coffee-shop chain. The firm is aiming to disrupt Starbucks (NASDAQ:SBUX).
Starbucks has long dominated the American coffee market with its sit-down cafe experience. However, the pandemic changed people’s relationship with cafes and caused many folks to rethink their daily rituals.
Meanwhile, demographics are also changing. Starbucks does well with millennials and older consumers. However, Dutch Bros wisely figured out that Gen Z — aka the “zoomers” — might want something else.
Dutch Bros has ditched large stores, instead choosing tiny locations designed to support take-out customers. In addition, Dutch Bros focused on sweet, colorful beverages that look good on social media.
The company has also made a point of hiring personable, engaging staff. With all of Starbucks’ current labor tensions and union drives, Dutch Bros could have an advantage on that front as well.
Dutch Bros is still a small operation, with annual revenues of around $700 million. However, it plans to go from its current store base of around 550 stores to 4,000 in the coming years. That growth could draw significant interest from investors.
In the meantime, 23% of the available shares of BROS stock are being sold short, setting the stage for a major short squeeze when the sentiment towards the name improves.
Unity Software (U)
Source: korobskyph / Shutterstock.com
Unity Software (NYSE:U) is the operator of a leading graphics engine. Developers use the company’s graphics engine to design and run video games. Recently, Unity has begun to expand its operations into other areas, such as video animation, architecture, and e-commerce.
Unity, along with its key rival, Unreal, control the majority of the video-game-engine market. It’s difficult for other companies to take share from Unity as many developers have become accustomed to using its platform .
Unity’s claim to fame is that its engine works seamlessly across platforms. A developer can build a game for, say, PCs, and then easily release that same game for use in conjunction with consoles, mobile, and even virtual/augmented reality.
In fact, Unity has long been a leader in developing graphics for virtual reality apps. Mark Zuckerberg reportedly wanted to acquire Unity years ago to serve as the core of its planned virtual reality operations. That acquisition could have come in handy, given how much Meta Platforms (NASDAQ:FB) has spent trying to build its own metaverse recently.
Unity is still working on monetization and has struggled to become profitable. The firm is reliant on ads at the moment, and that would pose a risk if the economy contracts. Regardless, the consumption of video games and related applications should grow meaningfully, making Unity a winner regardless of any near-term macro setbacks.
On the date of publication, Ian Bezek held long positions in V, BRK-B, FB, and U stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post The 7 Best Growth Stocks to Buy 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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TSM Taiwan Semiconductor $89 DDOG Datadog $72.60 V Visa $223 AI C3.ai $13 STM STMicroelectrnics $41.72 BROS Dutch Bros $30 U Unity Software $27.65 Taiwan Semiconductor Manufacturing (TSM) Source: Sundry Photography / Shutterstock.com Taiwan Semiconductor Manufacturing (NYSE:TSM) stock has rallied sharply over the past quarter. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) provides cloud monitoring and security functions via software-as-a-service solutions. In other words, DDOG’s clients can monitor and secure their servers, workflows, databases, and their other IT hardware from one central location.
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TSM Taiwan Semiconductor $89 DDOG Datadog $72.60 V Visa $223 AI C3.ai $13 STM STMicroelectrnics $41.72 BROS Dutch Bros $30 U Unity Software $27.65 Taiwan Semiconductor Manufacturing (TSM) Source: Sundry Photography / Shutterstock.com Taiwan Semiconductor Manufacturing (NYSE:TSM) stock has rallied sharply over the past quarter. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) provides cloud monitoring and security functions via software-as-a-service solutions. In other words, DDOG’s clients can monitor and secure their servers, workflows, databases, and their other IT hardware from one central location.
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TSM Taiwan Semiconductor $89 DDOG Datadog $72.60 V Visa $223 AI C3.ai $13 STM STMicroelectrnics $41.72 BROS Dutch Bros $30 U Unity Software $27.65 Taiwan Semiconductor Manufacturing (TSM) Source: Sundry Photography / Shutterstock.com Taiwan Semiconductor Manufacturing (NYSE:TSM) stock has rallied sharply over the past quarter. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) provides cloud monitoring and security functions via software-as-a-service solutions. In other words, DDOG’s clients can monitor and secure their servers, workflows, databases, and their other IT hardware from one central location.
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TSM Taiwan Semiconductor $89 DDOG Datadog $72.60 V Visa $223 AI C3.ai $13 STM STMicroelectrnics $41.72 BROS Dutch Bros $30 U Unity Software $27.65 Taiwan Semiconductor Manufacturing (TSM) Source: Sundry Photography / Shutterstock.com Taiwan Semiconductor Manufacturing (NYSE:TSM) stock has rallied sharply over the past quarter. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) provides cloud monitoring and security functions via software-as-a-service solutions. In other words, DDOG’s clients can monitor and secure their servers, workflows, databases, and their other IT hardware from one central location.
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fdb05fbd-430d-4294-ae15-ae7935ccea02
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718391.0
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2023-01-17 00:00:00 UTC
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Will Datadog Be Worth More Than Microsoft by 2030?
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DDOG
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https://www.nasdaq.com/articles/will-datadog-be-worth-more-than-microsoft-by-2030
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nan
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nan
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Datadog (NASDAQ: DDOG) dazzled investors with its breakneck growth rates after it went public in Sept. 2019. The data visualization company's revenue rose at a compound annual growth rate (CAGR) of 79% between 2017 and 2021, and it expects its revenue to rise another 60%-61% in 2022.
Datadog's stock soared from its IPO price of $27 to an all-time high of $196.56 in Nov. 2021, but it now trades at about $70 a share. At its peak, it was valued at $61 billion -- or 37 times the $1.65 billion in revenue it expects to generate in 2022. It's now worth $22 billion, or ten times the $2.21 billion in revenue it's expected to generate in 2023.
Image source: Getty Images.
In terms of multiples to revenue, that only makes Datadog slightly pricier than Microsoft (NASDAQ: MSFT), which trades at seven times next year's sales. But unlike Microsoft, Datadog isn't consistently profitable on a GAAP (generally accepted accounting principles) basis, so it's a much riskier investment. But could Datadog continue to grow, generate more multibagger gains, and eventually join the same mega-cap class as Microsoft by 2030?
The similarities between Datadog and Microsoft
Datadog and Microsoft might seem like very different companies, but they share similar roots. Datadog's namesake platform and Microsoft's Windows both make it easier to visualize and handle complex tasks.
Before Microsoft launched its first version of Windows in 1985, PC users ran their programs through text-based commands. Windows simplified that process with visual "windows" that could be controlled by a mouse. That transformation made PCs much easier for mainstream consumers to use, and became the foundation of Microsoft's entire business.
Datadog recognized a similar opportunity for growth in the IT services market. It's usually difficult and time-consuming for IT professionals to continuously monitor an organization's servers, databases, and software for problems in real time. Datadog broke down the silos between those platforms and aggregated all of that data onto unified visual dashboards, which made it much easier for IT professionals to diagnose problems.
That's why Datadog's number of high-value customers (meaning those that generated more than $100,000 in annual run-rate revenue, or ARR) rose more than tenfold from 240 at the end of 2017 to 2,600 at the end of the third quarter of 2022. Its dollar-based net retention rate, which gauges its year-over-year revenue growth per customer, also remains comfortably above 130%.
Could Datadog join the mega cap club?
Datadog's growth will likely cool over the next few years as its business matures. But for now analysts expect its revenue to grow at a CAGR of 42% between 2021 and 2024 and reach $2.98 billion by the final year.
If Datadog matches those estimates and continues to grow its revenue at a CAGR of 30% from 2024 to 2030, its annual revenue could reach nearly $15 billion by the final year. If it's still trading at ten times sales by then, it could be worth $150 billion. That would represent a near-seven bagger gain from its current levels but still fall short of the $200 billion mark for mega-cap stocks. It would also be worth a lot less than Microsoft's current market cap of $1.8 trillion.
Microsoft is growing a lot slower than Datadog, but analysts still expect its revenue to rise at a CAGR of 11% between fiscal 2022 (which ended last June) and fiscal 2025 to $275 billion. If it continues to grow at a modest CAGR of 10% through fiscal 2030, it could generate $370 billion in the final year. A price-to-sales ratio of seven would then give Microsoft a market cap of about $2.6 trillion by 2030, which would represent a gain of 40%-50% from its current levels.
But Datadog could still outperform Microsoft
We should be skeptical of those estimates, but Datadog probably won't come anywhere close to matching Microsoft's market cap by 2030. However, growth-oriented investors will still likely favor Datadog over Microsoft because its smaller market cap gives it more room for multibagger gains. Meanwhile, Microsoft should remain a stable software play for more conservative investors -- but it probably won't replicate its massive cloud-fueled gains from the past several years anytime soon.
10 stocks we like better than Datadog
When our award-winning 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 January 9, 2023
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG) dazzled investors with its breakneck growth rates after it went public in Sept. 2019. But unlike Microsoft, Datadog isn't consistently profitable on a GAAP (generally accepted accounting principles) basis, so it's a much riskier investment. Datadog broke down the silos between those platforms and aggregated all of that data onto unified visual dashboards, which made it much easier for IT professionals to diagnose problems.
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Datadog (NASDAQ: DDOG) dazzled investors with its breakneck growth rates after it went public in Sept. 2019. The data visualization company's revenue rose at a compound annual growth rate (CAGR) of 79% between 2017 and 2021, and it expects its revenue to rise another 60%-61% in 2022. It's now worth $22 billion, or ten times the $2.21 billion in revenue it's expected to generate in 2023.
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Datadog (NASDAQ: DDOG) dazzled investors with its breakneck growth rates after it went public in Sept. 2019. The similarities between Datadog and Microsoft Datadog and Microsoft might seem like very different companies, but they share similar roots. Microsoft is growing a lot slower than Datadog, but analysts still expect its revenue to rise at a CAGR of 11% between fiscal 2022 (which ended last June) and fiscal 2025 to $275 billion.
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Datadog (NASDAQ: DDOG) dazzled investors with its breakneck growth rates after it went public in Sept. 2019. The data visualization company's revenue rose at a compound annual growth rate (CAGR) of 79% between 2017 and 2021, and it expects its revenue to rise another 60%-61% in 2022. If Datadog matches those estimates and continues to grow its revenue at a CAGR of 30% from 2024 to 2030, its annual revenue could reach nearly $15 billion by the final year.
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adc6bb8d-d9a2-4815-90d5-369329664da3
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718392.0
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2023-01-15 00:00:00 UTC
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2 Top Growth Stocks I'm Buying Hand Over Fist These Days
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DDOG
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https://www.nasdaq.com/articles/2-top-growth-stocks-im-buying-hand-over-fist-these-days
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nan
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nan
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I like to make a small starter investment in a stock and add to the position as my conviction grows. Two stocks I've been buying hand over fist to increase my allocation over the past few months are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG). They have tremendous growth prospects, positioning them to potentially produce market-crushing returns in the coming years.
Gobbling up more shares of Google's parent
After years of holding out, I finally added Google's parent, Alphabet, to my portfolio during the depths of the pandemic-driven market meltdown in early 2020. I wanted to keep adding to that position, but shares bounced back sharply. However, I got another chance to add as they started selling off last year. I've since boosted my position a couple of times and will continue buying shares if they remain at or below their current level.
One thing I love about Alphabet these days is that it's trading near its lowest valuation levels in the last decade.
GOOG PE Ratio data by YCharts. PE Ratio = price-to-earnings ratio.
Alphabet trades at its lowest price-to-earnings (PE) ratio in 10 years and around its cheapest price-to-free cash flow level since 2017. That's an unbelievable level for a company with Alphabet's growth profile.
Its consolidated revenue was up 6% in the third quarter to $69.1 billion (and rose 11% on a constant currency basis). While its earnings declined because of higher expenses, most was due to increased research and development and sales and marketing spending to drive future growth.
Meanwhile, the company generated robust free cash flow of $16.1 billion in the quarter and $63 billion over the last 12 months. As a result, it ended the period with $116 billion in cash and marketable securities.
The company's cash war chest and copious free cash flow give it the financial firepower to continue growing shareholder value. It can use the money to repurchase its cheap shares, make capital investments, and complete acquisitions. It recently closed its $5.4 billion purchase of Mandiant to bolster its cybersecurity offerings.
The company has a long history of making acquisitions that help drive growth. With the tech industry experiencing a slowdown over the past year -- taking company valuations lower -- Alphabet has the financial firepower to go on the offensive and capitalize on this opportunity.
Fetching an enormous opportunity
I've been steadily adding to my position in Datadog since initiating it in early 2021. A big driver is its steadily falling share price despite a blistering growth rate.
Datadog's annual revenue has expanded at a 74% compound annual rate since 2017. Sales were up 61% year over year in the third quarter to $436.5 million. While the company is losing money on a generally accepted accounting principles (GAAP) basis, it's starting to produce lots of free cash flow. Free cash totaled $67.1 million in the third quarter, growing its cash position to $1.8 billion.
The company offers clients an all-in-one cloud observability, monitoring, and security platform that helps reduce complexity. Datadog sees a massive opportunity for its core observability capabilities. It foresees the total addressable market for that solution growing from $41 billion last year to $62 billion by 2026.
Datadog can continue growing briskly as it wins new customers and expands existing relationships. A growing number of clients are subscribing to additional products, helping drive strong retention and organic growth rates. The company's dollar-based net retention rate has been above 130%, implying it's retaining customers and growing those relationships. While 80% of its customers already use at least two products, only 40% use four or more (up from 20% two years ago), and 16% use six or more (up from 0% two years ago). Because of that, it has a tremendous upselling opportunity within its existing customer base.
Grabbing more growth while it's on sale
Growth stocks have sold off over the past year. That's allowing me to steadily scoop up additional shares of some of my favorites, like Alphabet and Datadog. While their stock prices could continue to fall in the near term (allowing me to buy even more shares), their robust revenue and earnings growth should drive their stocks much higher over the long term.
10 stocks we like better than Alphabet
When our award-winning 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 Alphabet 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 January 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Matthew DiLallo has positions in Alphabet and Datadog. The Motley Fool has positions in and recommends Alphabet and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two stocks I've been buying hand over fist to increase my allocation over the past few months are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG). While its earnings declined because of higher expenses, most was due to increased research and development and sales and marketing spending to drive future growth. With the tech industry experiencing a slowdown over the past year -- taking company valuations lower -- Alphabet has the financial firepower to go on the offensive and capitalize on this opportunity.
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Two stocks I've been buying hand over fist to increase my allocation over the past few months are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG). Free cash totaled $67.1 million in the third quarter, growing its cash position to $1.8 billion. While their stock prices could continue to fall in the near term (allowing me to buy even more shares), their robust revenue and earnings growth should drive their stocks much higher over the long term.
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Two stocks I've been buying hand over fist to increase my allocation over the past few months are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG). Alphabet trades at its lowest price-to-earnings (PE) ratio in 10 years and around its cheapest price-to-free cash flow level since 2017. While their stock prices could continue to fall in the near term (allowing me to buy even more shares), their robust revenue and earnings growth should drive their stocks much higher over the long term.
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Two stocks I've been buying hand over fist to increase my allocation over the past few months are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG). Fetching an enormous opportunity I've been steadily adding to my position in Datadog since initiating it in early 2021. Sales were up 61% year over year in the third quarter to $436.5 million.
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ffd0d1e7-b675-462d-8a73-718f0e413c5e
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718393.0
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2023-01-13 00:00:00 UTC
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Notable Friday Option Activity: DDOG, PEP, STNG
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DDOG
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-ddog-pep-stng
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Datadog Inc (Symbol: DDOG), where a total of 16,191 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 42.9% of DDOG's average daily trading volume over the past month of 3.8 million shares. Particularly high volume was seen for the $50 strike put option expiring February 24, 2023, with 2,389 contracts trading so far today, representing approximately 238,900 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $50 strike highlighted in orange:
PepsiCo Inc (Symbol: PEP) options are showing a volume of 18,543 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 41.2% of PEP's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $187.50 strike call option expiring January 13, 2023, with 2,040 contracts trading so far today, representing approximately 204,000 underlying shares of PEP. Below is a chart showing PEP's trailing twelve month trading history, with the $187.50 strike highlighted in orange:
And Scorpio Tankers Inc (Symbol: STNG) saw options trading volume of 5,893 contracts, representing approximately 589,300 underlying shares or approximately 41% of STNG's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $65 strike call option expiring February 17, 2023, with 1,622 contracts trading so far today, representing approximately 162,200 underlying shares of STNG. Below is a chart showing STNG's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for DDOG options, PEP options, or STNG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
High Yield Stocks
SSB YTD Return
Top Ten Hedge Funds Holding NTSI
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 February 24, 2023, with 2,389 contracts trading so far today, representing approximately 238,900 underlying shares of DDOG. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Datadog Inc (Symbol: DDOG), where a total of 16,191 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 42.9% of DDOG's average daily trading volume over the past month of 3.8 million shares.
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Particularly high volume was seen for the $50 strike put option expiring February 24, 2023, with 2,389 contracts trading so far today, representing approximately 238,900 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $50 strike highlighted in orange: PepsiCo Inc (Symbol: PEP) options are showing a volume of 18,543 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Datadog Inc (Symbol: DDOG), where a total of 16,191 contracts have traded so far, representing approximately 1.6 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Datadog Inc (Symbol: DDOG), where a total of 16,191 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 42.9% of DDOG's average daily trading volume over the past month of 3.8 million shares. Particularly high volume was seen for the $50 strike put option expiring February 24, 2023, with 2,389 contracts trading so far today, representing approximately 238,900 underlying shares of DDOG.
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Particularly high volume was seen for the $50 strike put option expiring February 24, 2023, with 2,389 contracts trading so far today, representing approximately 238,900 underlying shares of DDOG. Below is a chart showing STNG's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for DDOG options, PEP options, or STNG options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Datadog Inc (Symbol: DDOG), where a total of 16,191 contracts have traded so far, representing approximately 1.6 million underlying shares.
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76fae6cf-db38-4bae-9dd8-0d539de11bfe
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718394.0
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2023-01-12 00:00:00 UTC
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Is It Worth Investing in Datadog (DDOG) Based on Wall Street's Bullish Views?
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DDOG
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https://www.nasdaq.com/articles/is-it-worth-investing-in-datadog-ddog-based-on-wall-streets-bullish-views
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nan
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nan
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
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 1.41, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.41 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 20 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 74.1% and 11.1% of all recommendations.
Brokerage Recommendation Trends for DDOG
Check price target & stock forecast for Datadog here>>>
The ABR suggests buying Datadog, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
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.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
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
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
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 Worth Investing In?
In terms of earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has increased 19.3% over the past month to $0.91.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Datadog may serve as a useful guide for investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 Worth Investing In?
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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 Worth Investing In?
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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 Worth Investing In?
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Brokerage Recommendation Trends for DDOG 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). Is DDOG Worth Investing In?
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6858c0ff-74b8-4f46-a1fe-35a168d5bf2d
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718395.0
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2023-01-11 00:00:00 UTC
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Down 59% in This Bear Market, Can Datadog Recover in 2023?
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DDOG
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https://www.nasdaq.com/articles/down-59-in-this-bear-market-can-datadog-recover-in-2023
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG), a vendor of cloud-based observability software, have fallen 59% since Jan. 3, 2022, according to data from S&P Global Market Intelligence.
Datadog flew high during the pandemic, as cloud-based software-as-a-service (SaaS) stocks rocketed higher amid rapid digitization and the zero-interest-rate environment. However, the tide turned quickly against expensive growth stocks in 2022. As the Federal Reserve implemented aggressive interest-rate hikes last year, Datadog was never really able to mount a rebound, as rapidly rising rates and fears over a software slowdown continued to plague the stock.
Yet having drawn down nearly 60%, has Datadog suffered enough, and can this rising software star make a comeback?
So what
Even though Datadog's stock continued to decline throughout the year, Datadog's business actually delivered consistently solid earnings results. In fact, the company beat revenue and earnings expectations in every earnings release during the year. Still, these positives weren't enough to overcome macroeconomic fears.
Datadog's cloud-first platform is clearly catching on with developers and IT departments, who use it to protect and monitor the performance of their cloud-based software applications. With cloud computing still in its early stages and software complexity only increasing, Datadog looks to have a long growth path ahead.
Last quarter, when many of its software peers reported a slowdown, Datadog maintained a very strong 61% growth figure, and expanded gross margin by two percentage points over the prior-year quarter.
Another thing Datadog has going for it is that unlike a lot of other SaaS stocks, it actually operates very close to profitability under generally accepted accounting principles (GAAP) -- even figuring in stock-based compensation. That makes it a candidate to potentially bounce back in 2023, whereas some of its more unprofitable peers may have a more difficult time, especially if interest rates stay higher for longer.
Overall, the questions about Datadog aren't whether it has a competitive product, or whether it has a growing customer base with high retention and loyalty; it has all that in spades. The question is really one of valuation.
Considering Datadog still trades at a lofty 13 times sales, investors have to do a fair amount of guesswork about Datadog's future growth and profitability to decide whether it's a buy now. Moreover, they'll likely need to assess whether interest rates will stop rising sometime soon. Unfortunately, as long as inflation remains high, it's hard to get a handle on the appropriate discount rate to use for future earnings.
Interested investors should think about constructing their own discounted cash flow model to plug in various assumptions around all of these variables.
Now what
Looking at Datadog, it seems like it should be able to maintain high growth rates for a significant period of time. In my models -- in which I try to be conservative on interest rates, decelerating growth, and slowly expanding margins -- the stock looks to be fairly valued. That being said, it could be undervalued if we return to a low-rate environment, or if Datadog surprises to the upside on my assumptions about either revenue or terminal profit margin.
There aren't many unprofitable SaaS stocks I would consider at the moment, but Datadog is one of them. Should inflation come down markedly and the Federal Reserve stop or even reverse its interest-rate hikes, the stock could very well bounce back this year.
For young investors looking to invest in growth stocks, this might be an opportunity to start a position in this A-list software name. Older investors may want to look at more profitable investments in companies that pay out dividends and buy back shares.
10 stocks we like better than Datadog
When our award-winning 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 January 9, 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. 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), a vendor of cloud-based observability software, have fallen 59% since Jan. 3, 2022, according to data from S&P Global Market Intelligence. Datadog flew high during the pandemic, as cloud-based software-as-a-service (SaaS) stocks rocketed higher amid rapid digitization and the zero-interest-rate environment. As the Federal Reserve implemented aggressive interest-rate hikes last year, Datadog was never really able to mount a rebound, as rapidly rising rates and fears over a software slowdown continued to plague the stock.
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What happened Shares of Datadog (NASDAQ: DDOG), a vendor of cloud-based observability software, have fallen 59% since Jan. 3, 2022, according to data from S&P Global Market Intelligence. As the Federal Reserve implemented aggressive interest-rate hikes last year, Datadog was never really able to mount a rebound, as rapidly rising rates and fears over a software slowdown continued to plague the stock. Last quarter, when many of its software peers reported a slowdown, Datadog maintained a very strong 61% growth figure, and expanded gross margin by two percentage points over the prior-year quarter.
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What happened Shares of Datadog (NASDAQ: DDOG), a vendor of cloud-based observability software, have fallen 59% since Jan. 3, 2022, according to data from S&P Global Market Intelligence. As the Federal Reserve implemented aggressive interest-rate hikes last year, Datadog was never really able to mount a rebound, as rapidly rising rates and fears over a software slowdown continued to plague the stock. So what Even though Datadog's stock continued to decline throughout the year, Datadog's business actually delivered consistently solid earnings results.
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What happened Shares of Datadog (NASDAQ: DDOG), a vendor of cloud-based observability software, have fallen 59% since Jan. 3, 2022, according to data from S&P Global Market Intelligence. As the Federal Reserve implemented aggressive interest-rate hikes last year, Datadog was never really able to mount a rebound, as rapidly rising rates and fears over a software slowdown continued to plague the stock. There aren't many unprofitable SaaS stocks I would consider at the moment, but Datadog is one of them.
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bbadeac4-8148-4293-bd42-6d6022803a1e
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718396.0
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2023-01-10 00:00:00 UTC
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Can Datadog (DDOG) Keep the Earnings Surprise Streak Alive?
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DDOG
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https://www.nasdaq.com/articles/can-datadog-ddog-keep-the-earnings-surprise-streak-alive
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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.
When looking at the last two reports, this data analytics and cloud monitoring company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 62.38%, on average, in the last two quarters.
For the most recent quarter, Datadog was expected to post earnings of $0.15 per share, but it reported $0.23 per share instead, representing a surprise of 53.33%. For the previous quarter, the consensus estimate was $0.14 per share, while it actually produced $0.24 per share, a surprise of 71.43%.
Price and EPS Surprise
For Datadog, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid 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 has an Earnings ESP of +0.44% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
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 >>
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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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. When looking at the last two reports, this data analytics and cloud monitoring company has recorded a strong streak of surpassing earnings estimates.
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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. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid 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. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid 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. The company has topped estimates by 62.38%, on average, in the last two quarters.
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5b6a198a-e397-4ed9-b4fe-2ed3d1448e06
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718397.0
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2023-01-10 00:00:00 UTC
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Why Investors Need to Take Advantage of These 2 Computer and Technology Stocks Now
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DDOG
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https://www.nasdaq.com/articles/why-investors-need-to-take-advantage-of-these-2-computer-and-technology-stocks-now-1
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nan
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nan
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Lam Research?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Lam Research (LRCX) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $10 a share 15 days away from its upcoming earnings release on January 25, 2023.
By taking the percentage difference between the $10 Most Accurate Estimate and the $9.96 Zacks Consensus Estimate, Lam Research has an Earnings ESP of +0.42%. Investors should also know that LRCX is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
LRCX is just one of a large group of Computer and Technology stocks with a positive ESP figure. Datadog (DDOG) is another qualifying stock you may want to consider.
Datadog is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on February 9, 2023. DDOG's Most Accurate Estimate sits at $0.19 a share 30 days from its next earnings release.
For Datadog, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.19 is +0.44%.
LRCX and DDOG's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out 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
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
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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) is another qualifying stock you may want to consider. DDOG's Most Accurate Estimate sits at $0.19 a share 30 days from its next earnings release. LRCX and DDOG's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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Click to get this free report Lam Research Corporation (LRCX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is another qualifying stock you may want to consider. DDOG's Most Accurate Estimate sits at $0.19 a share 30 days from its next earnings release.
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Click to get this free report Lam Research Corporation (LRCX) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is another qualifying stock you may want to consider. DDOG's Most Accurate Estimate sits at $0.19 a share 30 days from its next earnings release.
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Datadog (DDOG) is another qualifying stock you may want to consider. DDOG's Most Accurate Estimate sits at $0.19 a share 30 days from its next earnings release. LRCX and DDOG's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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eb59ce33-e02b-4609-ba19-19167d44588e
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718398.0
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2023-01-09 00:00:00 UTC
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2 Stocks I Bought For 2023 (and Beyond)
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DDOG
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https://www.nasdaq.com/articles/2-stocks-i-bought-for-2023-and-beyond
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nan
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nan
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It was painful to be a net buyer of stocks in 2022. With the Nasdaq Composite falling 33% in the year, it might have seemed like every time you bought a stock, it fell 20%, 30%, or more in the following weeks. Still, tumultuous periods like this are often the best time to be investing. For reference, if you invested $10,000 in the Nasdaq Composite at the beginning of 2009, you would have over $65,300 today -- even after the drop in 2022.
I haven't let 2022 discourage me from continuing to add to my favorite companies, and it shouldn't stop you either. Here are two of my favorite that I recently bought to hold in 2023 and beyond and why you might want to do the same.
Purchase #1: Datadog
Shares of Datadog (NASDAQ: DDOG) got crushed in 2022, falling nearly 59%. As Datadog is a tech stock that provides performance monitoring tools and security software, it got lumped into the broader tech stock category, and nearly all companies in this industry plunged last year.
However, Datadog might not have deserved such a brutal result because the company's financial performance remained exceptionally healthy. The company's third-quarter 2022 revenue shot 61% higher versus the year-ago period, to $437 million, and the company's free cash flow followed a similar path. In the first nine months of 2022, the company generated $364 million in free cash flow -- 45% more than the free cash flow Datadog produced in the entire year of 2021.
The reasoning behind Datadog's healthy 2022 was simply that Datadog's services are critical to its 22,200 customers. Businesses use Datadog's tools to understand consumer behavior, monitor application performance, and decrease application downtime, which firms must do constantly. In other words, these services aren't optional, so Datadog didn't see demand slump as much as other tech stocks did. That's clear when looking at the company's net retention through the first nine months of 2022, which remained above 130%.
Datadog's products are sneakily resistant to macroeconomic factors, which can't be said about most tech companies. Additionally, it's the top dog in this space, according to market researcher Gartner (NYSE: IT). With a high-quality business trading at a noteworthy discount compared to the prior year, Datadog looks like a fat pitch, and I decided to swing.
Purchase #2: Waste Management
Waste Management (NYSE: WM) is one of the few companies in my portfolio that performed quite well in 2022: Shares slumped only 6% last year. Considering other stocks plunged 30%, 40%, and even 50%, many investors would have loved to see their investments perform this well.
The likely reason for this relatively strong stock performance is that Waste Management is a dominant leader in a stable industry. The company is the top North American trash collector and recycler, with a 24% market share -- the greatest share by any individual company.
This dominance is unlikely to waver, too. There are many reasons, but the most prominent is that it would be incredibly pricey for a rival to build the fortress that Waste Management has. A landfill one acre in size can cost up to $800,000 to build, and given that Waste Management has roughly 260 active landfills, it would cost millions of dollars for an up-and-coming rival to match their scale. That's not to mention the cost of building and operating Waste Management's 340 transfer facilities, 15,500 trash collection routes, and 550 collection sites.
Waste Management has also done a fabulous job increasing its core price in 2022. The core price is a performance metric used by management to evaluate the effectiveness of its pricing strategies. Considering it reached 6.7% in the first half of 2022 -- the company's highest core price over the past seven years -- Waste Management seems to be flexing some impressive pricing power.
As a result, the company saw robust operating leverage. While revenue only jumped 9% year over year to $5.1 billion in Q3 2022, the company's net income rose far faster -- growing 19% over the same period to $639 million.
If you tack on a quickly rising dividend and impressive share buybacks, it's hard not to like Waste Management. This leader proved in 2022 that it can weather nearly any storm, which is why I decided to buy more shares of this safe stock to hold in 2023 and beyond.
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Jamie Louko has positions in Datadog and Waste Management. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends Gartner and Waste Management. 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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Purchase #1: Datadog Shares of Datadog (NASDAQ: DDOG) got crushed in 2022, falling nearly 59%. Datadog's products are sneakily resistant to macroeconomic factors, which can't be said about most tech companies. With a high-quality business trading at a noteworthy discount compared to the prior year, Datadog looks like a fat pitch, and I decided to swing.
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Purchase #1: Datadog Shares of Datadog (NASDAQ: DDOG) got crushed in 2022, falling nearly 59%. In the first nine months of 2022, the company generated $364 million in free cash flow -- 45% more than the free cash flow Datadog produced in the entire year of 2021. Purchase #2: Waste Management Waste Management (NYSE: WM) is one of the few companies in my portfolio that performed quite well in 2022: Shares slumped only 6% last year.
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Purchase #1: Datadog Shares of Datadog (NASDAQ: DDOG) got crushed in 2022, falling nearly 59%. As Datadog is a tech stock that provides performance monitoring tools and security software, it got lumped into the broader tech stock category, and nearly all companies in this industry plunged last year. Purchase #2: Waste Management Waste Management (NYSE: WM) is one of the few companies in my portfolio that performed quite well in 2022: Shares slumped only 6% last year.
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Purchase #1: Datadog Shares of Datadog (NASDAQ: DDOG) got crushed in 2022, falling nearly 59%. As Datadog is a tech stock that provides performance monitoring tools and security software, it got lumped into the broader tech stock category, and nearly all companies in this industry plunged last year. Purchase #2: Waste Management Waste Management (NYSE: WM) is one of the few companies in my portfolio that performed quite well in 2022: Shares slumped only 6% last year.
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cee9e484-0fef-41ab-97a0-671b404a3514
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718399.0
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2023-01-06 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-2
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $64.14, marking a +1.01% move from the previous day. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 14.21% in the past month. In that same time, the Computer and Technology sector lost 8.41%, while the S&P 500 lost 4.61%.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.19 per share, which would represent a year-over-year decline of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $446.35 million, up 36.83% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 9.09% higher. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Datadog currently has a Forward P/E ratio of 58.35. Its industry sports an average Forward P/E of 40.15, so we one might conclude that Datadog is trading at a premium comparatively.
Also, we should mention that DDOG has a PEG ratio of 1.35. 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. DDOG's industry had an average PEG ratio of 2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the latest trading session, Datadog (DDOG) closed at $64.14, marking a +1.01% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 1.35. DDOG's industry had an average PEG ratio of 2 as of yesterday's close.
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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 $64.14, marking a +1.01% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 1.35.
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In the latest trading session, Datadog (DDOG) closed at $64.14, marking a +1.01% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 1.35. DDOG's industry had an average PEG ratio of 2 as of yesterday's close.
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In the latest trading session, Datadog (DDOG) closed at $64.14, marking a +1.01% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 1.35. DDOG's industry had an average PEG ratio of 2 as of yesterday's close.
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702301be-baf6-4940-a2a5-b09994ec59d7
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