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718400.0
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2023-01-05 00:00:00 UTC
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Noteworthy Thursday Option Activity: DDOG, NKE, DASH
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DDOG
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-ddog-nke-dash
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 27,077 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.4% of DDOG's average daily trading volume over the past month, of 3.9 million shares. Especially high volume was seen for the $105 strike put option expiring January 20, 2023, with 4,291 contracts trading so far today, representing approximately 429,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $105 strike highlighted in orange:
Nike (Symbol: NKE) options are showing a volume of 57,995 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 60.8% of NKE's average daily trading volume over the past month, of 9.5 million shares. Especially high volume was seen for the $180 strike put option expiring January 20, 2023, with 8,890 contracts trading so far today, representing approximately 889,000 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $180 strike highlighted in orange:
And DoorDash Inc (Symbol: DASH) saw options trading volume of 23,952 contracts, representing approximately 2.4 million underlying shares or approximately 59.6% of DASH's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $40 strike put option expiring February 17, 2023, with 3,787 contracts trading so far today, representing approximately 378,700 underlying shares of DASH. Below is a chart showing DASH's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for DDOG options, NKE options, or DASH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Andreas Halvorsen Stock Picks
BSJI Videos
CAB Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $105 strike put option expiring January 20, 2023, with 4,291 contracts trading so far today, representing approximately 429,100 underlying shares of DDOG. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 27,077 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.4% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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Especially high volume was seen for the $105 strike put option expiring January 20, 2023, with 4,291 contracts trading so far today, representing approximately 429,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $105 strike highlighted in orange: Nike (Symbol: NKE) options are showing a volume of 57,995 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 27,077 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 27,077 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.4% of DDOG's average daily trading volume over the past month, of 3.9 million shares. Especially high volume was seen for the $105 strike put option expiring January 20, 2023, with 4,291 contracts trading so far today, representing approximately 429,100 underlying shares of DDOG.
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Below is a chart showing DASH's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for DDOG options, NKE options, or DASH options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 27,077 contracts has been traded thus far today, a contract volume which is representative of approximately 2.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.4% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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4c766060-ad00-4d02-af27-c9494c1c74d3
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718401.0
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2023-01-04 00:00:00 UTC
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Why Datadog Stock Slumped on Wednesday (Hint: It Shouldn't Have)
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-slumped-on-wednesday-hint%3A-it-shouldnt-have
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG) were never able to gain any momentum on Wednesday, falling by as much as 5.9%. By the time the market closed, shares had recovered somewhat, but the stock was still down by 4.3%.
What was curious about the move is that several analysts addressed the prospects of the cloud stock Wednesday, and nearly all of them had good things to say.
So what
Wedbush analyst Taz Koujalgi initiated coverage of Datadog with an outperform (buy) rating and $101 price target, suggesting potential upside of 40%. The analyst cited a "long runway for growth" due to the company's "unique combination" of growth at scale and its 20%-plus free cash flow margins.
Stifel analyst Brad Reback lowered the firm's price target on Datadog's peer MongoDB to $256 from $320 while maintaining a buy rating on the shares. While that may not look good at first glance, it represents a potential 255% gain for investors relative to Tuesday's closing price. Furthermore, Reback believes that MongoDB's "consumption commentary" from its fiscal third quarter can be viewed as positive news for Datadog.
On the more bullish side of the house, Oppenheimer analyst Ittai Kidron called Datadog a top pick for 2023, and upgraded the stock to outperform (buy) with a $105 price target, or roughly 46% upside. The analyst called the company's unified, real-time view "mission critical," saying its solutions should make Datadog somewhat resilient to macroeconomic headwinds. Furthermore, its shift into cybersecurity represents a significant expansion of the company's total addressable market.
Now what
It's rare for Wall Street analysts to agree on anything, and when they do, retail investors should sit up and take notice. Datadog's platform monitors essential systems, alerting developers of issues before they become critical and force expensive downtime.
That said, despite its 61% decline over the past year, Datadog stock isn't cheap by traditional metrics. It's currently trading for 7 times next year's sales -- when a reasonable price-to-sales ratio is between 1 and 2. That said, the company is sticking by its forecast for year-over-year revenue growth of 60% in 2022. With that kind of growth, Datadog is worthy of a premium.
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 December 1, 2022
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) were never able to gain any momentum on Wednesday, falling by as much as 5.9%. So what Wedbush analyst Taz Koujalgi initiated coverage of Datadog with an outperform (buy) rating and $101 price target, suggesting potential upside of 40%. Stifel analyst Brad Reback lowered the firm's price target on Datadog's peer MongoDB to $256 from $320 while maintaining a buy rating on the shares.
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What happened Shares of Datadog (NASDAQ: DDOG) were never able to gain any momentum on Wednesday, falling by as much as 5.9%. So what Wedbush analyst Taz Koujalgi initiated coverage of Datadog with an outperform (buy) rating and $101 price target, suggesting potential upside of 40%. While that may not look good at first glance, it represents a potential 255% gain for investors relative to Tuesday's closing price.
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What happened Shares of Datadog (NASDAQ: DDOG) were never able to gain any momentum on Wednesday, falling by as much as 5.9%. On the more bullish side of the house, Oppenheimer analyst Ittai Kidron called Datadog a top pick for 2023, and upgraded the stock to outperform (buy) with a $105 price target, or roughly 46% upside. 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 never able to gain any momentum on Wednesday, falling by as much as 5.9%. By the time the market closed, shares had recovered somewhat, but the stock was still down by 4.3%. That's right -- they think these 10 stocks are even better buys.
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a06289cc-e220-4daa-a399-539c779fcf5f
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718402.0
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2022-12-31 00:00:00 UTC
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4 Red-Hot Growth Stocks to Buy in 2023 and Beyond
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DDOG
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https://www.nasdaq.com/articles/4-red-hot-growth-stocks-to-buy-in-2023-and-beyond
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nan
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nan
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Inflation, rising interest rates, and other macroeconomic headwinds broadly crushed growth stocks in 2022. Some of that sell-off was justified, since many growth stocks had reached unsustainable valuations following the buying frenzy over the previous two years. But many babies were also tossed out with the bathwater.
I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond.
Image source: Getty Images.
1. Datadog
Datadog's platform aggregates diagnostic data from an organization's servers, databases, and apps on unified dashboards for IT professionals. That approach makes it much easier to diagnose potential problems, and breaks down the silos between different types of computing platforms.
Datadog established an early-mover's advantage in this niche market, and its total number of large customers (those that generate more than $100,000 in annual recurring revenue) rose from 858 at the end of 2019 to about 2,600 in the third quarter of 2022. Revenue rose 66% in 2020 and increased 70% in 2021, and it anticipates 60% to 61% growth in 2022.
Datadog's adjusted gross margin is hovering near 80%, and it's already profitable on a non-GAAP (generally accepted accounting principles) basis. It isn't profitable on a GAAP basis yet, and its stock isn't cheap at 11 times next year's sales. But the long-term potential of its niche market could easily justify that higher valuation.
2. Impinj
Impinj is a leading producer of radio frequency identification (RFID) tags, scanners, and software. RFID tags are often used to track a company's products, but they can also power smart kiosks, public transportation systems, and even smart factories.
Impinj benefited from the "retail apocalypse" over the past decade as retailers scrambled to use RFID tags to analyze their inventories and sales trends. The ongoing supply chain disruptions over the past year also highlighted the importance of RFID tags in efficiently tracking products across the world.
Impinj's revenue declined 9% in 2020 as the pandemic disrupted brick-and-mortar retailers, but rose 37% in 2021 as those headwinds waned. It expects its revenue to grow 33% to 34% in 2022 as the demand for its chips continues to outstrip its available supply, and it sees that imbalance continuing into 2023.
Impinj is profitable on a non-GAAP basis, and its GAAP net losses are gradually narrowing. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market.
3. Unity Software
Unity's game-development engine is used to create more than half of the world's mobile, console, and PC games. It bundles together tools for creating graphics, sound effects, and monetization features for smaller developers and larger studios.
Revenue rose 43% in 2020 and grew another 44% in 2021. The pandemic generated strong tailwinds for the gaming industry, which prompted more developers to use Unity to create new games.
But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. So the latter acquired the ad tech company ironSource to reset its advertising business and offset that slowdown. But it expects that business to remain under pressure as macro headwinds rattle the digital advertising market.
Nonetheless, Unity still expects its revenue to rise 23% to 25% in 2022 as its non-GAAP profitability improves in 2023. The next few quarters will be incredibly bumpy, but this growth stock is on sale at 5 times next year's sales.
4. The Trade Desk
The Trade Desk operates the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable advertisers to purchase ad space across desktop, mobile, and connected-TV (CTV) platforms.
It generates most of its growth from the CTV market, which has grown rapidly in recent years as streaming video services disrupted linear TV platforms like cable and satellite TV. It's also benefiting from the shift from pricier ad-free streaming subscriptions toward cheaper ad-supported tiers.
The Trade Desk's revenue rose 26% in 2020, even as the pandemic curbed ad spending across multiple industries. Revenue rose 43% in 2021 as those headwinds waned, and it expects at least 34% growth in 2022.
It's profitable by both GAAP and non-GAAP measures. Its stock isn't a bargain yet at 12 times next year's sales, but it remains one of the best plays on the secular growth of the CTV market and programmatic digital ads.
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 December 1, 2022
Leo Sun has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple, Datadog, Trade Desk, and Unity Software. The Motley Fool recommends Impinj and recommends the following options: long March 2023 $120 calls on Apple 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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I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. Datadog established an early-mover's advantage in this niche market, and its total number of large customers (those that generate more than $100,000 in annual recurring revenue) rose from 858 at the end of 2019 to about 2,600 in the third quarter of 2022. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market.
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I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. It isn't profitable on a GAAP basis yet, and its stock isn't cheap at 11 times next year's sales. The Motley Fool has positions in and recommends Apple, Datadog, Trade Desk, and Unity Software.
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I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market. Its stock isn't a bargain yet at 12 times next year's sales, but it remains one of the best plays on the secular growth of the CTV market and programmatic digital ads.
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I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. Revenue rose 43% in 2021 as those headwinds waned, and it expects at least 34% growth in 2022. Its stock isn't a bargain yet at 12 times next year's sales, but it remains one of the best plays on the secular growth of the CTV market and programmatic digital ads.
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e47c9db5-dad9-4612-a5ae-10b62bc7464b
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718403.0
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2022-12-31 00:00:00 UTC
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Nasdaq Bear Market: 5 Extraordinary Growth Stocks You'll Regret Not Buying on the Dip
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DDOG
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-5-extraordinary-growth-stocks-youll-regret-not-buying-on-the-dip-0
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nan
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nan
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Unless you're a short-seller or were invested heavily in energy stocks, 2022 was probably a struggle from an investment standpoint. The ageless Dow Jones Industrial Average, benchmark S&P 500, and growth-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) all plunged into bear market territory.
While a peak-to-trough decline of 38% in the Nasdaq since November 2021 certainly isn't what most investors wanted or expected, it's nevertheless an opportunity to load up on high-quality stocks at reduced valuations. After all, every double-digit percentage decline in the major indexes, including the Nasdaq, has eventually been wiped away by a bull market rally.
Image source: Getty Images.
In particular, the underperformance of the Nasdaq Composite puts growth stocks on the radar as potentially amazing deals as we enter the new year. What follows are five extraordinary growth stocks you'll regret not buying on the Nasdaq bear market dip.
Amazon
The first sensational growth stock you'd be foolish not to add during the Nasdaq bear market plunge is e-commerce kingpin Amazon (NASDAQ: AMZN). Despite economic weakness and rapidly rising interest rates threatening its core revenue segment (online retail sales), Amazon's substantially higher-margin ancillary operating segments are firing on all cylinders.
Even though Amazon could account for around 40% of all U.S. online retail sales in 2022, according to a March report from eMarketer, e-commerce is a low-margin operating segment. What's been far more important for Amazon is the continued double-digit sales growth it's netting from subscription services, advertising services, and Amazon Web Services (AWS) -- and the latter generates the bulk of the company's operating income and cash flow.
As of April 2021, Amazon had more than 200 million global Prime subscribers. This figure is likely much higher now, especially with the company holding the exclusive rights to Thursday Night Football. Based on third-quarter subscription service revenue of $8.9 billion, the company is generating $35.6 billion in high-margin and predictable annual run-rate sales from this segment.
Meanwhile, a recent report from Canalys estimates AWS accounted for 32% of global cloud infrastructure service spending in the third quarter. AWS is pacing more than $82 billion in annual run-rate revenue, and its juicy margins give Amazon a reasonable shot to triple its operating cash flow by 2025. Amazon's skyrocketing operating cash flow is what really makes this company an incredible bargain.
Lovesac
For investors who want something a bit more under the radar, small-cap furniture stock Lovesac (NASDAQ: LOVE) is a company you'll regret not scooping up during the Nasdaq bear market dip. In spite of rising inventory levels, Lovesac is well-positioned to continue disrupting a stodgy industry.
One of Lovesac's biggest differentiators is its furniture. Whereas most brick-and-mortar retailers lean on the same small group of wholesalers, Lovesac is generating close to 88% of its net sales from sactionals -- modular couches that can be rearranged dozens of ways to fit most living spaces. Sactionals have over 200 different cover choices, and the yarn used in these covers is made entirely from recycled plastic water bottles. Lovesac's key product offers functionality and optionality, while also having environmental, social, and governance (ESG) ties.
Additionally, Lovesac has navigated the challenging economic environment by having a nimble sales platform. The company's omnichannel approach can pivot to online sales, popup showrooms, and partnerships to boost sales, in addition to its more-traditional 189 retail locations spread across 40 states. This omnichannel platform helps to keep expenses down and margins up.
Lastly, the company turned the corner to full-year profitability years ahead of Wall Street's expectations. At roughly 8 times forward-year earnings, Lovesac is about as inexpensive a growth stock as you'll find.
Image source: Getty Images.
Datadog
The third extraordinary growth stock you'll regret not buying as the Nasdaq plummets is infrastructure and security-monitoring software-as-a-service (SaaS) juggernaut Datadog (NASDAQ: DDOG). Although the company's premium valuation has acted as a cement block on its share price throughout 2022, its operating performance and niche positioning suggests its valuation premium is well-deserved.
Beginning with the latter, Datadog is poised to take advantage of an increasingly hybrid work environment. Though COVID-19 vaccines have allowed millions of people to return to the office, more people are working remotely than ever before. The ability for businesses of all sizes to monitor applications and better understand their customer(s) is more important than ever in the post-pandemic environment. In other words, it's playing right into Datadog's strengths.
What's been particularly impressive about Datadog has been its organic growth. The company has produced 21 consecutive quarters (more than five years) of a dollar-based net retention rate of at least 130%. This means the company's existing clients from the previous year are spending an average of at least 30% more in the following year.
In addition, the percentage of Datadog's customers using six or more of its products has jumped from just 3% at the end of 2020 to 16% by the end of September 2022. Growing from within and coercing add-on sales is Datadog's secret sauce to sustained rapid growth and profitability.
Innovative Industrial Properties
Another phenomenal growth stock you'll be kicking yourself for not buying during the Nasdaq bear market decline is marijuana-focused real estate investment trust (REIT) Innovative Industrial Properties (NYSE: IIPR). Even though Capitol Hill has failed on virtually all of its efforts for federal cannabis reform, IIP, as Innovative Industrial Properties is more commonly known, is actually benefiting from this Washington, D.C. standstill.
When September came to a close, IIP owned 111 properties spanning 8.7 million square feet of rentable space in 19 legalized states. Through the first nine months of the year, 97% of its rents were collected on time and it was sporting a weighted-average lease length of more than 15 years. This is why IIP is generating highly predictable cash flow and doling out an inflation-fighting 7% yield.
It's also worth pointing out that 100% of its portfolio is triple-net leased. This fancy term simply means its tenants cover all costs associated with the property, including maintenance, utilities, property taxes, and even insurance premiums. In return for a lower rental rate, IIP doesn't have to worry about the effects of inflation or any surprise expenses.
Innovative Industrial Properties is benefiting from its sale-leaseback program, as well. As long as the federal government holds cannabis as a Schedule I drug, multi-state operators' (MSOs) access to basic financial services will be limited. IIP steps in to buy growing or processing facilities with cash and then leases these properties back to the seller. It's a win-win for both parties, with MSOs receiving much-needed cash and IIP landing long-term tenants.
Baidu
The fifth and final extraordinary growth stock that you'll regret not buying on the Nasdaq bear market dip is China-based internet-search powerhouse Baidu (NASDAQ: BIDU). Though China's zero-COVID strategy has been a drag on Baidu and its peers in 2022, a loosening of this strategy should open the door for a resumption of its rapid growth moving forward.
Baidu's key cash-flow driver continues to be its leading internet search engine. Data from GlobalStats shows that Baidu has accounted for no less than a 60% share of internet search in the world's No. 2 economy over the trailing-three-year period, beginning November 2019. This makes it the logical go-to for advertisers wanting to reach Chinese consumers, and puts quite a bit of ad-pricing power in Baidu's court.
But similar to Amazon, it's the company's ancillary operating segments that could really drive valuation-multiple expansion in the coming years. Specifically, Baidu is investing heavily in artificial intelligence (AI)-fueled growth. The company's AI Cloud and world-leading autonomous-vehicle operations (Apollo Go) were responsible for pushing non-marketing revenue higher by 25% in the latest quarter. These are operating segments with the potential to deliver higher margins than advertising.
Baidu is also at a compelling valuation following a significant pullback. For a company that's regularly grown sales by a double-digit percentage, a forward price-to-earnings multiple of less than 13 is inexpensive.
Find out why Amazon.com 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. Amazon.com 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 December 1, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon.com, Baidu, Innovative Industrial Properties, and Lovesac. The Motley Fool has positions in and recommends Amazon.com, Baidu, Datadog, and Innovative Industrial Properties. The Motley Fool recommends Lovesac. 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 extraordinary growth stock you'll regret not buying as the Nasdaq plummets is infrastructure and security-monitoring software-as-a-service (SaaS) juggernaut Datadog (NASDAQ: DDOG). Whereas most brick-and-mortar retailers lean on the same small group of wholesalers, Lovesac is generating close to 88% of its net sales from sactionals -- modular couches that can be rearranged dozens of ways to fit most living spaces. Even though Capitol Hill has failed on virtually all of its efforts for federal cannabis reform, IIP, as Innovative Industrial Properties is more commonly known, is actually benefiting from this Washington, D.C. standstill.
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Datadog The third extraordinary growth stock you'll regret not buying as the Nasdaq plummets is infrastructure and security-monitoring software-as-a-service (SaaS) juggernaut Datadog (NASDAQ: DDOG). Despite economic weakness and rapidly rising interest rates threatening its core revenue segment (online retail sales), Amazon's substantially higher-margin ancillary operating segments are firing on all cylinders. What's been far more important for Amazon is the continued double-digit sales growth it's netting from subscription services, advertising services, and Amazon Web Services (AWS) -- and the latter generates the bulk of the company's operating income and cash flow.
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Datadog The third extraordinary growth stock you'll regret not buying as the Nasdaq plummets is infrastructure and security-monitoring software-as-a-service (SaaS) juggernaut Datadog (NASDAQ: DDOG). What's been far more important for Amazon is the continued double-digit sales growth it's netting from subscription services, advertising services, and Amazon Web Services (AWS) -- and the latter generates the bulk of the company's operating income and cash flow. Lovesac For investors who want something a bit more under the radar, small-cap furniture stock Lovesac (NASDAQ: LOVE) is a company you'll regret not scooping up during the Nasdaq bear market dip.
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Datadog The third extraordinary growth stock you'll regret not buying as the Nasdaq plummets is infrastructure and security-monitoring software-as-a-service (SaaS) juggernaut Datadog (NASDAQ: DDOG). What's been far more important for Amazon is the continued double-digit sales growth it's netting from subscription services, advertising services, and Amazon Web Services (AWS) -- and the latter generates the bulk of the company's operating income and cash flow. Lovesac For investors who want something a bit more under the radar, small-cap furniture stock Lovesac (NASDAQ: LOVE) is a company you'll regret not scooping up during the Nasdaq bear market dip.
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b2abea3c-a1e0-4a13-aab8-93fe94952234
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718404.0
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2022-12-30 00:00:00 UTC
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Datadog (DDOG) Dips More Than Broader Markets: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-dips-more-than-broader-markets%3A-what-you-should-know-4
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nan
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nan
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Datadog (DDOG) closed the most recent trading day at $73.50, moving -0.6% from the previous trading session. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 5.17% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
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%. Our most recent consensus estimate is calling for quarterly revenue of $446.51 million, up 36.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $1.65 billion, which would represent changes of +89.58% and +60.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. 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.
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 6.17% higher within the past month. Datadog is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 81.5. This represents a premium compared to its industry's average Forward P/E of 47.4.
We can also see that DDOG currently has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.12 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 61, which puts it in the top 25% 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.
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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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Datadog (DDOG) closed the most recent trading day at $73.50, moving -0.6% from the previous trading session. We can also see that DDOG currently has a PEG ratio of 1.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) closed the most recent trading day at $73.50, moving -0.6% from the previous trading session. We can also see that DDOG currently has a PEG ratio of 1.9.
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Datadog (DDOG) closed the most recent trading day at $73.50, moving -0.6% from the previous trading session. We can also see that DDOG currently has a PEG ratio of 1.9. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Datadog (DDOG) closed the most recent trading day at $73.50, moving -0.6% from the previous trading session. We can also see that DDOG currently has a PEG ratio of 1.9. 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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f8cad331-501c-4b61-a6da-43570ee6ff96
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718405.0
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2022-12-30 00:00:00 UTC
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Buy the Dip on these 7 Most Hated Stocks
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DDOG
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https://www.nasdaq.com/articles/buy-the-dip-on-these-7-most-hated-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s just forget 2022 ever happened. Over the last year, inflation hit a 40-year high. There were fears of a recession materializing, and those fears have persisted . Nearly 63% of U.S. consumers were living paycheck to paycheck. Markets were crushed. Home sales began to fall at the fastest rate in decades. Retail sales dropped, and the Federal Reserve’s interest rate hikes became far too aggressive. Some of the biggest stocks in the market plummeted. The good news is some of 2022’s biggest losers could be among 2023’s biggest winners. Here’s a list of seven top stocks to buy on the dip.
TGT Target $148.37
AMD Advanced Micro Devices $64.20
NFLX Netflix $291
DDOG Datadog $72.64
TSLA Tesla $121.50
ARKK ARK Innovation ETF $30.60
SQ Block $61.50
Target (TGT)
Source: Shutterstock
Since January, Target (NYSE:TGT) plummeted from about $227.50 to $148.37. But that’ll happen amid sky-high inflation and with many Americans living paycheck to paycheck.
Even worse, Target’s third quarter earnings per shares came in below analysts’ average estimate. Specifically, it reported EPS of $1.54, which was below the average outlook of $2.16.
The company’s margins sank, and TGT lowered its Q4 guidance. Target’s operating income fell almost 50% to $1 billion. The only good news was that the retailer’s revenue jumped to $26.5 billion, which was slightly above the mean estimate of $26.4 billion.
However, don’t write the stock off just yet. For one, Target has a solid dividend yield of 2.91%, and it also just recently increased its quarterly dividend to $1.08 a share.
Secondly, its latest disasters will be temporary. Target still has a strong history of earnings growth, and just reported its 22nd consecutive quarter of comparable sales increases. Also worth noting is that research firm Bernstein just initiated coverage of the shares with an “outperform” rating on the stock and a price target of $190.
The firm believes that Target’s fundamentals are still sound, so consider TGT one of the best stocks to buy on the dip.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Another one of the top stocks to buy on a dip is Advanced Micro Devices (NASDAQ:AMD), which was crushed over the last year. After starting 2022 at around $151.65, AMD now trades at $64.20. The stock’s steep decline was caused by the stock market’s weakness, inflation, fears of recession, price target cuts on the stock by analysts, and plunging PC demand. That’s the bad news. The good news is that the future looks far brighter for AMD.
It appears the worst-case scenario has been priced into the stock. Further, UBS upgraded AMD to a “buy” rating, with a price target of $95 a share. Investment bank Baird also just upgraded the beaten-down tech name to “outperform” with a price target of $100. The firm believes the company’s newest chips could increase its competitive advantage.
In addition, Morgan Stanley named AMD its “top pick” heading into 2023. It has an “overweight” rating on the stock, with a price target of $77.
Netflix (NFLX)
Source: xalien / Shutterstock
The shares of Netflix (NASDAQ:NFLX) were clobbered over the last year. After starting the year at about $610, it collapsed to less than $200.
The stock’s tumble came as COVID-19 lockdowns were terminated, enabling consumers to return to movie theatres and restaurants, and as the company began to post underwhelming subscriber numbers. Making things worse, in April Netflix reported that it had lost net subscribes for the first time in ten years and watched as $50 billion was wiped off its market cap.
Fortunately, that appears to have been the bottom for Netflix, as the company reported very strong Q3 results.
Not only did it add 2.4 million subscribers in Q3 (above its own guidance of 1 million), but it stated that it expected to add another 4.5 million net new subscribers during Q4.
NFLX also posted Q3 revenue of $7.93 billion and EPS of $3.10 a share, which came in ahead of the company’s previous forecast of $7.84 billion and $2.14 a share.
For Q4 Netflix sees revenue of $7.78 billion and earnings of 36 cents a share. Even more impressively, analysts are upgrading the stock again.
A former NFLX bear, CFRA analyst Kenneth Leon, gave NFLX a double-upgrade to a “buy” rating and increased his price target to $310. He likes the company’s new revenue streams from advertising, the lower price of its new ad-supported tier, and the increased control that it’s supporting over shared subscription accounts.
Now it’s also one of the top stocks to buy on the dip.
Datadog (DDOG)
Source: Costello77 / Shutterstock
Datadog (NASDAQ:DDOG) didn’t have a great year either. But I’d use its weakness as an opportunity to buy the stock, especially since DDOG is a leader in the $62 billion “observability” market.
After all, observability is essential. It provides companies with insight into their metrics, traces and logs. It can also help determine when an attack occurred, provide insight into what attackers did while inside the company and help firms improve their security in the future.
The company also continues to show signs of growth. In the third quarter, DDOG posted 61% year-over-year revenue growth, propelling its top line to $437 million. Even its net loss dropped to $14 million from $40 million during the same period a year earlier.
DDOG had a net retention rate of more than 130%, which is extremely high for a software company. Billionaires are buying the beaten-down stock, including Stanley Druckenmiller, who purchased 790,000 of its shares.
DDOG is trading at its lowest valuation in years and is another one of the strong stocks to buy on a dip.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
Tesla (NASDAQ:TSLA) is one of the most hated stock on the Street. Since January, the EV stock has dropped more than 50%.
Recently the shares have been plummeting on Elon Musk’s takeover of Twitter, which is leading to fears that he’s not paying as much attention to Tesla as in the past.
There are also concerns that Tesla’s growth is slowing , sparked by the company’s announcement of a temporary halt at its Chinese factory and the $7,500 discount it’s giving to U.S. consumers .
Despite all of the negativity, Tesla is still showing signs of life. In fact, its stock was up about 10% on Thursday after Elon Musk told reportedly staffers that, “Long-term, I believe very much that Tesla will be the most valuable stock on Earth.”
Perhaps, with Tesla, it’s time to take Baron Rothschild’s advice: “The time to buy is when there’s blood in the streets, even if the blood is your own.” Or even Sir John Templeton’s advice to buy when others are excessively pessimistic.
ARK Innovation ETF (ARKK)
Source: SWKStock / Shutterstock
We can even look at one of the worst-performing, most hated ETFs of 2022, the ARK Innovation ETF(NYSEARCA:ARKK). After starting the year around $97, the ETF now trades at $30.60, where it may be a buy.
That’s because the valuation of many of the fund’s holdings are becoming too cheap to ignore. With an expense ratio of 0.75%, the fund’s top, severely undervalued holdings include Tesla, Roku(NASDAQ:ROKU), Block (NYSE:SQ), Shopify (NYSE:SHOP), DraftKings (NASDAQ:DKNG), and even Nvidia.
While I’m not suggesting that you load up the truck with ARKK, it may be a good idea to take a small position in the name, given how undervalued many of its largest holdings have become.
Block Inc. (SQ)
Source: Sergei Elagin / Shutterstock.com
Block also had a terrible year. Since January, it fell from about $160 to $61.20, where it appears to have bottomed out. More importantly, the company just posted solid earnings.
In its most recent quarter, SQ said its gross profits grew 38% year-over-year to $1.57 billion. The gross profit from its Cash App was up 51% YOY to $774 million. And the gross profit of its Square seller business climbed 29% to $783 million. Also, in Q3, its total net revenue climbed 17% to $4.52 billion.
Deutsche Bank analyst Bryan Keane is a fan of the stock now, too. “Even as market volatility and concerns surrounding macro headwinds have weighed on SQ’s shares, we remain positive on the company’s fundamental trajectory heading into FY23,” he wrote, according to TipRanks.com.
“In particular, we believe SQ will continue pulling levers to drive margin expansion as the company increases focus on reining in [its operating spending] while still investing for long-term growth.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post Buy the Dip on these 7 Most Hated Stocks 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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TGT Target $148.37 AMD Advanced Micro Devices $64.20 NFLX Netflix $291 DDOG Datadog $72.64 TSLA Tesla $121.50 ARKK ARK Innovation ETF $30.60 SQ Block $61.50 Target (TGT) Source: Shutterstock Since January, Target (NYSE:TGT) plummeted from about $227.50 to $148.37. Datadog (DDOG) Source: Costello77 / Shutterstock Datadog (NASDAQ:DDOG) didn’t have a great year either. But I’d use its weakness as an opportunity to buy the stock, especially since DDOG is a leader in the $62 billion “observability” market.
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TGT Target $148.37 AMD Advanced Micro Devices $64.20 NFLX Netflix $291 DDOG Datadog $72.64 TSLA Tesla $121.50 ARKK ARK Innovation ETF $30.60 SQ Block $61.50 Target (TGT) Source: Shutterstock Since January, Target (NYSE:TGT) plummeted from about $227.50 to $148.37. Datadog (DDOG) Source: Costello77 / Shutterstock Datadog (NASDAQ:DDOG) didn’t have a great year either. But I’d use its weakness as an opportunity to buy the stock, especially since DDOG is a leader in the $62 billion “observability” market.
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TGT Target $148.37 AMD Advanced Micro Devices $64.20 NFLX Netflix $291 DDOG Datadog $72.64 TSLA Tesla $121.50 ARKK ARK Innovation ETF $30.60 SQ Block $61.50 Target (TGT) Source: Shutterstock Since January, Target (NYSE:TGT) plummeted from about $227.50 to $148.37. Datadog (DDOG) Source: Costello77 / Shutterstock Datadog (NASDAQ:DDOG) didn’t have a great year either. But I’d use its weakness as an opportunity to buy the stock, especially since DDOG is a leader in the $62 billion “observability” market.
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TGT Target $148.37 AMD Advanced Micro Devices $64.20 NFLX Netflix $291 DDOG Datadog $72.64 TSLA Tesla $121.50 ARKK ARK Innovation ETF $30.60 SQ Block $61.50 Target (TGT) Source: Shutterstock Since January, Target (NYSE:TGT) plummeted from about $227.50 to $148.37. Datadog (DDOG) Source: Costello77 / Shutterstock Datadog (NASDAQ:DDOG) didn’t have a great year either. But I’d use its weakness as an opportunity to buy the stock, especially since DDOG is a leader in the $62 billion “observability” market.
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e4868b48-571a-4e35-82be-5552950963ec
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718406.0
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2022-12-30 00:00:00 UTC
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2 Supercharged Stocks Investors Should Buy for 2023
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DDOG
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https://www.nasdaq.com/articles/2-supercharged-stocks-investors-should-buy-for-2023
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nan
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nan
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While 2022 may be remembered for many things, it won't be considered a great year for tech stocks. The S&P 500 tech sector is down nearly 30% compared to the broader market's 20%. Much of this decline came from the overvaluation of software stocks, but 2023 could mark a potential reset year.
Some software stocks have seen their revenue growth grind to a halt, but others are still thriving. Two companies still growing at an unbelievably fast pace are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Both are primed for a great 2023, and I think they should be at the top of investors' shopping lists.
Cloudflare
With the rise of cloud data centers, the internet is transitioning into a new growth phase. Rather than individual companies hosting their own websites, they can contract out to Cloudflare, which will host their websites using its data centers. With more than 275 data centers spread globally, 95% of the world's population lives within 50 milliseconds of a Cloudflare data center. That means websites hosted on Cloudflare have unparalleled speeds, and if one data center goes down, there are multiple others to redirect traffic to.
Along with hosting, Cloudflare provides cybersecurity services to its clients so they aren't as exposed to threats like breaches, distributed denial-of-service (DDoS), or bot attacks. Cloudflare has a massive customer base, with over 156,000 customers and 1,908 spending more than $100,000 annually. Unfortunately, customer growth is beginning to slow, with its total rising by 18% in the third quarter. But the business is shifting to focus on large customers, which rose 51% over last year.
This is a crucial metric for investors, as spending expansion is critical when customer growth slows. In Q3, Cloudflare's retention rate was 124%, meaning existing customers spent $124 for every $100 they spent last year.
One area of concern is Cloudflare's profitability. Its operating loss margin in Q3 was 18%, driven mainly by stock-based compensation of $55.9 million, or about 22% of revenue. That's a significant gap to close, and Cloudflare must grow its revenue faster than its operating expenses to start closing it. (Cloudflare grew its operating expenses and revenue at the same rate in Q3.)
Cloudflare has some investment risks (namely its profitability state), but it's operating in a market expected to be worth $135 billion by 2024, so there is a massive investment opportunity here. It appears 2023 should be another fantastic year of revenue growth for Cloudflare. With its price-to-sales valuation near the lowest it has had as a public company, stock price appreciation could follow.
Datadog
With all the various data-driven solutions companies use, it isn't easy to understand why an application isn't functioning correctly. Datadog's cloud monitoring software solves this issue by giving IT teams the visibility they need to see how various applications interact.
Users can also set up automated responses to incidents and generate metrics to understand how and if new products provide tangible business effects. According to third-party Gartner, Datadog's application program management and observability product was named a leader in the space, with the highest ability to execute. Datadog has also recently expanded into cybersecurity, giving investors another reason to consider this company.
Datadog's customer count is much smaller than Cloudflare's at 22,200. However, about 2,600 spend more than $100,000 annually. It's also growing faster than Cloudflare, with 61% revenue growth to $437 million in Q3.
From a profitability standpoint, Datadog still loses money. However, it only posted a 7% operating loss margin in Q3, and analysts expect it to break even in 2023 or 2024.
Like Cloudflare, a key indicator for Datadog is its retention rate, which was about 130% for Q3. Another similar metric is how many products customers use, which has trended positively.
PERCENT OF CUSTOMERS USING PRODUCTS Q3 2020 Q3 2021 Q3 2022
2 or more products 71% 77% 80%
4 or more products 20% 31% 40%
6 or more products 0% 8% 16%
Data source: Datadog.
If Datadog can control its operating expense growth (operating expenses grew faster than revenue in Q3), then it has the potential to be another strong investment for 2023. Additionally, if it can upsell customers on multiple products, that will be a key indicator of how Datadog is doing.
Growth names aren't currently "in style," but that could change in 2023. If it doesn't, don't be surprised if these stocks are sold off further. Because of that, investors should take their time establishing positions instead of rushing all in. Still, these companies are planning for the long term and have a massive opportunity. So if investors share their vision, they should sign up for a long-term holding, even if the stock moves down in the short term.
10 stocks we like better than Cloudflare
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*Stock Advisor returns as of December 1, 2022
Keithen Drury 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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Two companies still growing at an unbelievably fast pace are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Along with hosting, Cloudflare provides cybersecurity services to its clients so they aren't as exposed to threats like breaches, distributed denial-of-service (DDoS), or bot attacks. Users can also set up automated responses to incidents and generate metrics to understand how and if new products provide tangible business effects.
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Two companies still growing at an unbelievably fast pace are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). In Q3, Cloudflare's retention rate was 124%, meaning existing customers spent $124 for every $100 they spent last year. That's a significant gap to close, and Cloudflare must grow its revenue faster than its operating expenses to start closing it.
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Two companies still growing at an unbelievably fast pace are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). * They just revealed what they believe are the ten best stocks for investors to buy right now... and Cloudflare wasn't one of them! See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keithen Drury has positions in Cloudflare and Datadog.
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Two companies still growing at an unbelievably fast pace are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). While 2022 may be remembered for many things, it won't be considered a great year for tech stocks. Cloudflare has a massive customer base, with over 156,000 customers and 1,908 spending more than $100,000 annually.
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6a11a0c3-d6a3-4b6c-9729-c66f2fc2a04d
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718407.0
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2022-12-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights Altair Engineering, ChampionX, ASML Holding, Datadog and Tenaris
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DDOG
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-altair-engineering-championx-asml-holding-datadog-and
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nan
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nan
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For Immediate Release
Chicago, IL – December 28, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Altair Engineering Inc. ALTR, ChampionX Corp. CHX, ASML Holding N.V. ASML, Datadog Inc. DDOG and Tenaris S.A. TS.
Here are highlights from Tuesday’s Analyst Blog:
5 Stocks Set to Pop in 2023
As we get into the final days of the year, it's a good time to plan for next year.
This hasn't been the best of years for the stock market, mainly because of earlier actions to boost the economy with quantitative easing. But inflation went up to 40-year highs and the Fed finally changed course in the first quarter of this year. Through 7 meetings, the federal funds rate was raised by a total of 4.25%. This increased borrowing costs for individuals and businesses, slowing down the economy and leading to some moderation in prices.
Historically, the Fed has never managed to do this without the economy falling into recession. So experts are divided on whether we will actually have a recession next year. There's one camp that says that things will turn worse in the first half itself. There's another camp that says it will take longer, perhaps moving into 2024, mainly because the labor market is just too strong at the moment.
The Fed would like its actions to also raise the unemployment levels because until that happens, there won't be sufficient cause to bring prices back to normal. However, there are labor shortages in most industries and a certain reluctance to let skilled or experienced people go. Technology is an exception, since it bulked up during the pandemic and is now offloading. As long as people are employed, they will continue to try and absorb higher prices, so inflation will be hard to bring down.
With that as the backdrop and further rate hikes lined up for 2023, the following year is also likely to be challenging. One way to deal with this is to aim for value stocks. As the markets have softened notably this year, valuations have come down, making this a great time to shop value.
Another strategy would be to select stocks that analysts expect have both near-term and longer-term growth potential. Even before getting into the details of each stock, we can skim through the numbers for a general idea.
In the examples discussed below, some of these numbers have been highlighted. The Zacks Rank, industry position, the estimate revisions history, surprise history, near-term and longer-term growth potential and analyst expectations of a rally next year, in combination, give you a pretty good idea. After shortlisting in this way, you can get into further details on each stock.
Altair Engineering Inc.
Zacks Rank #2: The Zacks Rank is sensitive to changes in estimates. Therefore, Zacks #1 (Strong Buy) ranked stocks reflect positive estimate revisions in the recent past while #2 (Buy) ranked stocks reflect positive estimate revisions from a little further back (or it can represent slight moderation in estimates also).
In the case of Altair, the Zacks Consensus Estimate for 2023 has dropped a penny in the last 60 days. It may be harder to develop estimates for smaller companies since they usually grow at a faster rate. Analysts have been duly conservative as regards Altair, as reflected in the average surprise of 145.6% in the last four quarters.
Zacks Industry Rank 61/248 (top 25%): The Engineering - R and D Services industry to which Altair belongs has returned over 8% to investors this year, which compares favorably with the S&P 500's nearly 21% loss. Its revenues plunged significantly in 2020 as the pandemic ravaged the world and have been increasing very gradually since then.
Earnings have, however, recovered to pre-pandemic levels. Therefore, the ability to quickly take down cost when necessary, seems to be a basic characteristic. The leaner operating structure should stand it well in case of softer demand in 2023. On the other hand, relatively stronger demand could raise profitability.
Also encouraging is the fact that 80% (12) of the 15 companies that have reported results for this quarter have topped analyst estimates, 13% (2) met estimates while 7% (1) missed.
A buy-ranked stock in the top 50% of Zacks-classified industries has historically been seen to outperform stocks in the bottom 50%. Therefore, this is an indication of relative strength for Altair by virtue of its belonging to an attractive industry.
Strong Growth Profile: Current estimates for 2023 represent a 21.5% increase in earnings and 8.0% increase in revenue over 2022 levels. Therefore, recession or not, analysts are extremely optimistic about the stock's growth next year. They're also positive about its long-term prospects, as indicated in the 12% growth forecast for the long term.
Upside Potential: The average target price fixed by analysts represents 30.4% upside from the current level of $44.59.
ChampionX Corp.
Zacks Rank #2: The Zacks Rank reflects positive estimate changes for 2023. The Zacks Consensus Estimate for the year is up 22 cents (13.9%). There is a reasonable possibility that the company will beat the raised number since it has topped estimates in each of the last four quarters at an average rate of 9.6%.
Zacks Industry Rank 61/248 (top 25%): Like Altair, ChampionX belongs to the Engineering - R and D Services industry, so the same positives apply to it as well.
Strong Growth Profile: Current estimates for 2023 represent an 8.0% revenue increase and 46.3% earnings increase over 2022 levels. Therefore, analysts are pretty optimistic about growth next year. They're also positive about its long-term prospects, as earnings are expected to grow 57.8% in the long term.
Upside Potential: The average target price fixed by analysts represents 17.6% upside from the current price of $28.59.
ASML Holding N.V.
Zacks Rank #2: This Zacks Rank indicates that analysts have been raising their estimates on ASML shares and we can see the evidence in the numbers. In the last 60 days, the 2023 estimate has increased 70 cents (3.5%).
ASML is a well-established semiconductor equipment supplier. It supplies leading edge technology for a market that is rapidly expanding. Therefore, there is underlying strength in the business that is likely to override any near-term weakness we may see as a result of the Fed's money market manipulations. This is probably why analysts haven't been as good at figuring out its growth potential. Therefore, we see that the average earnings surprise for the last four quarters is as high as 37.9%.
Zacks Industry Rank 47/248 (top 19%): Clearly, the Semiconductor Equipment - Wafer Fabrication industry is attractive and offers strong growth potential for its constituents. All of the companies that have reported results thus far have topped estimates.
Being a high-growth segment, it has been beaten down 33.4% so far this year. But unlike other growth segments, this one has not faltered materially after the strong tech buildup during the worst of the pandemic. Here, we see more or less steady revenue and earnings growth to way above pre-pandemic levels.
Strong Growth Profile: In 2023, analysts expect revenue to grow 23.0% and earnings to grow 41.2%. They are projecting 23.7% growth for the long term.
Upside Potential: The average target price that analysts have set represents 30.0% appreciation from the current price of $551.37.
Datadog, Inc.
Zacks Rank #2: The Buy rating on Datadog shares indicates that estimate revisions have been positive. And so we see that the Zacks Consensus Estimate for 2023 has moved up 14 cents (14.7%).
The company has been growing its earnings at such a rapid pace that analyst estimates have been left in the dust. The surprise percentage in the last four quarters averages 81.2%.
Zacks Industry Rank 54/248 (top 23%): The rank indicates that the Internet – Software industry to which Datadog belongs is attractive. Out of the total 139 companies within this industry, 101 (73%) have topped the Zacks Consensus Estimate in the latest quarter. About 8% met estimates while 15% missed.
It's worth noting that the constituent companies may actually be very different from each other and cater to different use cases/industries. So numbers for the total industry may not reflect the good news in several of the segments.
Strong Growth Profile: Datadog is currently expected to grow its 2023 earnings by 20.1% on top of revenue that is expected to grow 33.7%. Strong earnings growth is expected to continue over the next few years, averaging to a long-term rate of 42.9%.
Upside Potential: The average target price indicates that analysts expect Datadog shares to appreciate 57.2% from the current price of $72.42.
Tenaris S.A.
Zacks Rank #2: It's the estimates that drive changes in the Zacks Rank. And estimates for Tenaris have been moving up. The Zacks Consensus Estimate for 2023 has gone up 60 cents in as many days to $5.18. This is a 13% increase in a relatively short timeframe, indicating increased optimism.
Although the company missed by a penny in the last quarter, the average surprise in the last four quarters is 20.9%. Therefore, there's reason to believe that another beat is around the corner.
Zacks Industry Rank 18/248 (top 7%): The Steel - Pipe and Tube industry to which Tenaris belongs has things going for it. Barring the June 2022 quarter, revenue and earnings have been moving up pretty consistently since the pandemic hit in the June quarter of 2020. As a result, it has returned 45.4% to investors this year.
Two out of the four companies in this industry that have reported earnings this quarter have topped estimates.
The 2023 estimate for this industry has moved up 70.4% so far this year.
Strong Growth Profile: Tenaris is currently expected to generate 21.1% revenue growth and 19.6% earnings growth in 2023. Analysts expect earnings growth of 27.0% in the long term.
Upside Potential: The average target price indicates an upside potential of 25.0%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Altair Engineering Inc. (ALTR) : Free Stock Analysis Report
ASML Holding N.V. (ASML) : Free Stock Analysis Report
Tenaris S.A. (TS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
ChampionX Corporation (CHX) : 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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Stocks recently featured in the blog include: Altair Engineering Inc. ALTR, ChampionX Corp. CHX, ASML Holding N.V. ASML, Datadog Inc. DDOG and Tenaris S.A. TS. Click to get this free report Altair Engineering Inc. (ALTR) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report ChampionX Corporation (CHX) : Free Stock Analysis Report To read this article on Zacks.com click here. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets.
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Stocks recently featured in the blog include: Altair Engineering Inc. ALTR, ChampionX Corp. CHX, ASML Holding N.V. ASML, Datadog Inc. DDOG and Tenaris S.A. TS. Click to get this free report Altair Engineering Inc. (ALTR) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report ChampionX Corporation (CHX) : Free Stock Analysis Report To read this article on Zacks.com click here. Therefore, Zacks #1 (Strong Buy) ranked stocks reflect positive estimate revisions in the recent past while #2 (Buy) ranked stocks reflect positive estimate revisions from a little further back (or it can represent slight moderation in estimates also).
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Click to get this free report Altair Engineering Inc. (ALTR) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report ChampionX Corporation (CHX) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Altair Engineering Inc. ALTR, ChampionX Corp. CHX, ASML Holding N.V. ASML, Datadog Inc. DDOG and Tenaris S.A. TS. The Zacks Rank, industry position, the estimate revisions history, surprise history, near-term and longer-term growth potential and analyst expectations of a rally next year, in combination, give you a pretty good idea.
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Stocks recently featured in the blog include: Altair Engineering Inc. ALTR, ChampionX Corp. CHX, ASML Holding N.V. ASML, Datadog Inc. DDOG and Tenaris S.A. TS. Click to get this free report Altair Engineering Inc. (ALTR) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Tenaris S.A. (TS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report ChampionX Corporation (CHX) : Free Stock Analysis Report To read this article on Zacks.com click here. Out of the total 139 companies within this industry, 101 (73%) have topped the Zacks Consensus Estimate in the latest quarter.
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718408.0
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2022-12-27 00:00:00 UTC
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2 Growth Stocks You'll Want to Own When the Bear Market Is Over
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DDOG
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https://www.nasdaq.com/articles/2-growth-stocks-youll-want-to-own-when-the-bear-market-is-over
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nan
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nan
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Predicting when exactly a bear market will end is practically impossible, so investors are left watching and waiting right now as the benchmark S&P 500 index languishes down 20% in 2022. But here's the good news: We do have the benefit of nearly a century's worth of data that offers clues as to when this difficult period might be over.
Going back to 1929, the average S&P 500 bear market lasted 289 days (or nine and a half months). Given that the current one became official on June 13, it has already spanned a little more than six months, which implies we could be about three months away from the end.
But it might not be that simple. Soaring inflation is a headwind to the U.S. economy, and although there are signs it's slowing down, it could continue to impact the stock market in the short term until the inflation rate moves closer to the Federal Reserve's annualized target of 2% (it's currently 7.1%).
Nonetheless, some companies continue to outperform. Two of them are Duolingo (NASDAQ: DUOL) and Datadog (NASDAQ: DDOG), and here's why the current bear market might be a great time to buy these two stocks.
1. Economic slowdown? Not for Duolingo
With inflation soaring and interest rates on the rise, household finances are being squeezed, which is bad news for a company like Duolingo, which derives all of its revenue from consumers. At least you would think so -- the education-technology powerhouse is actually growing its revenue at the fastest pace of 2022 right now.
Duolingo has developed the most successful mobile app-based language education platform in the world. The app has been downloaded more than 500 million times, and users appear to love the app's gamified approach that makes learning a more enjoyable and less strenuous experience.
In the third quarter, Duolingo's monthly active users soared by 35% year over year to 56.5 million, a record high. But its paying user base topped 3.7 million and grew at a much faster pace of 68% as the company's monetization efforts continue to gain traction. Users can improve their free learning experience with a paid subscription, which unlocks additional features and enables faster progress through the lesson bundles.
Duolingo's revenue jumped 51% in Q3, marking the fastest growth rate of 2022 so far. The company generated $338 million in revenue over the past four quarters, but it considers its addressable opportunity to be $23 billion this year -- so it has barely scratched the surface -- and that figure could double to $47 billion by 2025.
Investors who buy Duolingo stock right now will own a company that is firing on all cylinders even amid a weak consumer environment, and that still has a lengthy runway to grow despite already leading its industry. The stock is down about 33% this year, but when the bear market eventually ends, it could be primed to soar.
2. Datadog hiked its 2022 sales forecast by $100 million
Even in the face of a challenging economic climate, Datadog's quarterly results continued to come in hot, prompting the company to increase its revenue guidance three times this year. Datadog is an increasingly useful tool for any business with a digital presence; its platform monitors cloud-based networks and infrastructure to deliver unique insights that can help improve technical efficiency and customer satisfaction.
Say a business operates a global e-commerce website. Occasionally, the site might suffer an outage or a slowdown in one corner of the world, which won't be visible until those customers either complain or simply stop buying products. In other words, the business won't know until it's already lost money. Datadog actively prowls for such technical issues and can alert the operator almost immediately, enabling a rapid response before the customer experience is affected.
Datadog now serves multiple industries including healthcare, gaming, and financial services.
At the end of the third quarter, the company had 2,600 customers who are spending at least $100,000 annually. That was a 44% jump from the same time last year, and it highlights how essential cloud monitoring tools are to large organizations, which tend to have more complex online operations and more expansive digital touchpoints with consumers.
Datadog's third-quarter revenue came in at $437 million -- not only was that an increase of 61% year over year, but it was also a whopping $23 million above the company's prior guidance (at the top end of the range). This was a consistent theme throughout 2022, and Datadog has now increased its full-year revenue forecast by $100 million in three separate upward revisions.
It raises the question: If Datadog's business is performing so well in this tough economy, how will it perform when the situation improves? There are already signs that 2023 could be more favorable for businesses as inflation appears to have peaked. Investors might wish they'd taken the chance to buy Datadog stock during this bear market, considering it's down 55% this year amid the broader tech sell-off.
10 stocks we like better than Duolingo
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Duolingo wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. 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 of them are Duolingo (NASDAQ: DUOL) and Datadog (NASDAQ: DDOG), and here's why the current bear market might be a great time to buy these two stocks. Investors who buy Duolingo stock right now will own a company that is firing on all cylinders even amid a weak consumer environment, and that still has a lengthy runway to grow despite already leading its industry. Datadog is an increasingly useful tool for any business with a digital presence; its platform monitors cloud-based networks and infrastructure to deliver unique insights that can help improve technical efficiency and customer satisfaction.
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Two of them are Duolingo (NASDAQ: DUOL) and Datadog (NASDAQ: DDOG), and here's why the current bear market might be a great time to buy these two stocks. In the third quarter, Duolingo's monthly active users soared by 35% year over year to 56.5 million, a record high. Datadog hiked its 2022 sales forecast by $100 million Even in the face of a challenging economic climate, Datadog's quarterly results continued to come in hot, prompting the company to increase its revenue guidance three times this year.
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Two of them are Duolingo (NASDAQ: DUOL) and Datadog (NASDAQ: DDOG), and here's why the current bear market might be a great time to buy these two stocks. Datadog hiked its 2022 sales forecast by $100 million Even in the face of a challenging economic climate, Datadog's quarterly results continued to come in hot, prompting the company to increase its revenue guidance three times this year. Datadog's third-quarter revenue came in at $437 million -- not only was that an increase of 61% year over year, but it was also a whopping $23 million above the company's prior guidance (at the top end of the range).
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Two of them are Duolingo (NASDAQ: DUOL) and Datadog (NASDAQ: DDOG), and here's why the current bear market might be a great time to buy these two stocks. The stock is down about 33% this year, but when the bear market eventually ends, it could be primed to soar. Datadog hiked its 2022 sales forecast by $100 million Even in the face of a challenging economic climate, Datadog's quarterly results continued to come in hot, prompting the company to increase its revenue guidance three times this year.
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718409.0
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2022-12-26 00:00:00 UTC
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These 2 Stocks Were Among the Biggest Losers of 2022 -- Could They Be Among the Biggest Winners in 2023?
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DDOG
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https://www.nasdaq.com/articles/these-2-stocks-were-among-the-biggest-losers-of-2022-could-they-be-among-the-biggest
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nan
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Shares of Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG) have delivered some of the worst results of 2022 for investors, plummeting 48% and 59% year to date, respectively. And these companies are far from being microcaps. Datadog and Nvidia had market capitalizations of nearly $56 billion and $753 billion, respectively, at the start of the year, making their large drops even more noteworthy.
Every business endures challenges from time to time, but great ones can overcome them and continue to win over the long haul. Here's why these two companies could push forward and become fruitful investments in 2023 and beyond.
1. Nvidia
Nvidia got crushed this year, and one cause for that was the weakness in one of its largest revenue segments: gaming. With inflation and higher interest rates tightening consumers' budgets and causing people to fear that a recession is looming, spending on personal computers (PCs) dropped notably. Considering that Nvidia is one of the top makers of the graphics processing units (GPUs) that gaming PCs rely on, that decline hit it hard. In its fiscal 2023 third quarter -- which ended Oct. 30 -- Nvidia's gaming revenue declined by 51% year over year to $1.6 billion. The gaming segment was its biggest revenue driver just three quarters ago.
It makes sense that Nvidia shares have gotten knocked because of this, but the future of the chipmaker isn't gaming -- it's all the other industries it caters to. Gaming is no longer Nvidia's largest segment. The data center market is, and that space continues to mature rapidly. In fiscal Q3, the company's data center segment revenue soared by 31% year over year to $3.8 billion.
And Nvidia has its fingers in other emerging business lines, providing chips for the automotive, artificial intelligence software, and omniverse software industries. In management's view, the combined prospects for these industries add up to a future addressable opportunity of $900 billion.
Nvidia's stock got beat up because of the short-term declines in gaming, but it's clear that gaming's not where the future of the business lies. The company is making impressive progress in these emerging spaces and is already a leader in some of them. For example, 72% of the world's top 500 supercomputers are powered by Nvidia chips. Additionally, the semiconductor stock has in recent months been trading at its lowest valuations by price-to-sales ratio since March 2020. Based on these depressed valuations, investors might be undervaluing its most important business segments, which could allow Nvidia to surprise the market with great performances in 2023 and beyond.
2. Datadog
Plenty of onlookers were left scratching their heads at Datadog's weak stock performance this year -- its price was more than cut in half. On the one hand, software stocks broadly got clobbered due to falling demand, but that isn't the case for Datadog. Demand for the company's observability and performance monitoring tools is still extremely high, so even though many businesses are cutting back, they don't seem to be reducing their spending at Datadog.
This was made clear by the company's third-quarter results -- all financial metrics pointed toward continued success. Revenue rocketed 61% higher year over year to $437 million. Additionally, customer churn remained in the low single-digit percentage range, and the company's net retention rate stayed above 130% for the 21st consecutive quarter. In other words, you might not guess that economic conditions are concerning if you only looked at Datadog's results this year.
That's not to mention its cash generation, which also rocketed higher. Over the trailing 12 months, Datadog generated $364 million in free cash flow, representing a margin of 24%. Note that the company was only free-cash-flow breakeven just three years ago. That's a drastic improvement over a fairly short time.
So if the company isn't struggling, why is its share price down so far? The likely explanation is that Datadog previously was trading at excessive premiums. At the start of this year, it was valued at a whopping 60 times sales. Now that high-growth companies have fallen out of favor, the market has reevaluated matters. Datadog trades at around 15 times sales nowadays, its lowest valuation since March 2020.
However, there's no indication that Datadog's jaw-dropping execution will sputter in 2023. With shares trading at their lowest valuation in years, investors might want to add a few shares to their portfolio before Datadog potentially rockets higher.
10 stocks we like better than Nvidia
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*Stock Advisor returns as of December 1, 2022
Jamie Louko has positions in Datadog and Nvidia. The Motley Fool has positions in and recommends Datadog and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG) have delivered some of the worst results of 2022 for investors, plummeting 48% and 59% year to date, respectively. With inflation and higher interest rates tightening consumers' budgets and causing people to fear that a recession is looming, spending on personal computers (PCs) dropped notably. Demand for the company's observability and performance monitoring tools is still extremely high, so even though many businesses are cutting back, they don't seem to be reducing their spending at Datadog.
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Shares of Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG) have delivered some of the worst results of 2022 for investors, plummeting 48% and 59% year to date, respectively. In its fiscal 2023 third quarter -- which ended Oct. 30 -- Nvidia's gaming revenue declined by 51% year over year to $1.6 billion. In fiscal Q3, the company's data center segment revenue soared by 31% year over year to $3.8 billion.
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Shares of Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG) have delivered some of the worst results of 2022 for investors, plummeting 48% and 59% year to date, respectively. Datadog and Nvidia had market capitalizations of nearly $56 billion and $753 billion, respectively, at the start of the year, making their large drops even more noteworthy. Nvidia Nvidia got crushed this year, and one cause for that was the weakness in one of its largest revenue segments: gaming.
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Shares of Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG) have delivered some of the worst results of 2022 for investors, plummeting 48% and 59% year to date, respectively. Revenue rocketed 61% higher year over year to $437 million. Datadog trades at around 15 times sales nowadays, its lowest valuation since March 2020.
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718410.0
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2022-12-25 00:00:00 UTC
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2 of 2022's Biggest Losers Could Be 2 of 2023's Biggest Winners
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DDOG
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https://www.nasdaq.com/articles/2-of-2022s-biggest-losers-could-be-2-of-2023s-biggest-winners
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nan
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nan
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It's been a tough year for the broad market. It's been a downright miserable one, however, for a handful of technology stocks that were all the rage in 2021. Economic malaise is on the horizon, and investors' appetite for risk-driven growth is shrinking.
But not every one of this year's big losers is in the sort of trouble their plummeting stocks suggest. If you're truly long-term-minded and can look past all the fear-based noise, here are two great tech stocks to consider stepping into while they're down in a big way.
1. Shopify
On the off chance you're not familiar with this company, Shopify (NYSE: SHOP) helps companies build an e-commerce presence.
Much of its growth since its 2006 launch can be attributed to seller frustration with platforms like Amazon and to a lesser degree, eBay. Using Shopify, online businesses enjoy greater control of the customer experience and don't have to share anything with a sales partner that's also a competitor or at least assists competing sellers. Recent estimates indicate roughly 2 million businesses are utilizing Shopify's e-commerce tools. Collectively, they sold $46.2 billion worth of goods during the third quarter of this year. That's 11% better than the year-earlier Q3 tally, extending a growth streak that's been in place for years.
This growth streak obviously didn't stave off an 80% rout from the stock's peak hit in November 2021. Don't read too much into the steep sell-off, however.
A huge chunk of the weakness stems from the overexuberant rally in 2021 prompted by Shopify's rapid growth in the midst of the pandemic when online shopping was surging. The company was doing well but not nearly as well as the stock's heroic rise implied. Investors corrected the error this year.
The thing is, investors arguably over-corrected their error. Insider Intelligence's market research arm eMarketer estimates direct-to-consumer sales in the all-important U.S. market will continue growing at a pace in the mid-teens next year as well as in 2024. That's a key reason why analysts are calling for a little more than 20% sales growth from Shopify in the coming year, which should be enough to get Shopify back into the black after this year's dip into the red ink. And given eMarketer's estimates that direct sales to consumers still only account for less than 3% of the country's total retail spending, Shopify's growth opportunities remain enormous far beyond 2023.
This potential is a key reason the analyst community maintains its average price target near $40 per share or more than 20% above the stock's present price. Even that outlook, however, may be underestimating the scope of the rebound in store.
2. Datadog
The other tech name sellers have ripped into far too aggressively this year is cloud-computing security outfit Datadog (NASDAQ: DDOG). Its shares are down more than 60% from their November 2021 peak for much the same reason Shopify's are: The market's been unwinding 2021's red-hot run-up. And like Shopify stock, these sellers overshot their target. Wall Street's current consensus target near $110 per share is more than 50% above Datadog's present price of just under $73.
Most analysts' bullish arguments for Datadog are sound. But perhaps none are as sound as Oppenheimer analyst Ittai Kidron's recent explanation for the firm's upgrade of the cybersecurity company's stock:
We're upgrading Datadog to Outperform from Perform with a $105 price target. The company's unified, real-time view into the entire technology stack remains mission-critical to developers/enterprises as they focus on identifying/eliminating performance issues. While not recession-proof, the mission-critical nature of its solutions gives Datadog relative resiliency in times of spending constraints.
Translation? Against the backdrop of continued hacking and data breaches, most enterprises simply can't afford to skimp on defending their public clouds from cyber criminals.
There's no denying the company is one of its market's top go-to solutions providers. Forrester just named it a leader within the artificial intelligence for IT operations (AIOps) space, and earlier this year, IT consulting and market research outfit Gartner deemed Datadog a leader among application performance-monitoring and observability software. Clearly, the company's doing something right.
Datadog's past and projected results underscore this idea too. Following this year's likely 61% top-line improvement, we should see sales growth of nearly 34% next year. That's expected to drive per-share profits up from last year's $0.48 to $0.91 this year, to $1.18 per share in 2023, quelling any criticism that the software-as-a-service (SaaS) name is merely buying its growth. Look for that to become a key bullish talking point in the coming year, perhaps convincing would-be buyers to go ahead and get on board.
Find out why Shopify is one of the 10 best stocks to buy now
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Datadog, and Shopify. The Motley Fool recommends Gartner and eBay and recommends the following options: long January 2023 $1,140 calls on Shopify, short January 2023 $1,160 calls on Shopify, and short January 2023 $45 calls on eBay. 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 other tech name sellers have ripped into far too aggressively this year is cloud-computing security outfit Datadog (NASDAQ: DDOG). Using Shopify, online businesses enjoy greater control of the customer experience and don't have to share anything with a sales partner that's also a competitor or at least assists competing sellers. Against the backdrop of continued hacking and data breaches, most enterprises simply can't afford to skimp on defending their public clouds from cyber criminals.
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Datadog The other tech name sellers have ripped into far too aggressively this year is cloud-computing security outfit Datadog (NASDAQ: DDOG). Insider Intelligence's market research arm eMarketer estimates direct-to-consumer sales in the all-important U.S. market will continue growing at a pace in the mid-teens next year as well as in 2024. Forrester just named it a leader within the artificial intelligence for IT operations (AIOps) space, and earlier this year, IT consulting and market research outfit Gartner deemed Datadog a leader among application performance-monitoring and observability software.
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Datadog The other tech name sellers have ripped into far too aggressively this year is cloud-computing security outfit Datadog (NASDAQ: DDOG). That's a key reason why analysts are calling for a little more than 20% sales growth from Shopify in the coming year, which should be enough to get Shopify back into the black after this year's dip into the red ink. But perhaps none are as sound as Oppenheimer analyst Ittai Kidron's recent explanation for the firm's upgrade of the cybersecurity company's stock: We're upgrading Datadog to Outperform from Perform with a $105 price target.
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Datadog The other tech name sellers have ripped into far too aggressively this year is cloud-computing security outfit Datadog (NASDAQ: DDOG). And like Shopify stock, these sellers overshot their target. Following this year's likely 61% top-line improvement, we should see sales growth of nearly 34% next year.
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5f72ab15-c77e-4887-9e08-e88421e5fab7
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718411.0
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2022-12-23 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-6
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nan
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nan
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Datadog (DDOG) closed the most recent trading day at $72.42, moving -0.73% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 3.13% in the past month. In that same time, the Computer and Technology sector lost 6.38%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. The company is expected to report EPS of $0.19, down 5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $446.51 million, up 36.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.91 per share and revenue of $1.65 billion, which would represent changes of +89.58% and +60.6%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 6.17% higher within the past month. Datadog is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 80.41 right now. Its industry sports an average Forward P/E of 45.9, so we one might conclude that Datadog is trading at a premium comparatively.
Meanwhile, DDOG's PEG ratio is currently 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 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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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 $72.42, moving -0.73% from the previous trading session. Meanwhile, DDOG's PEG ratio is currently 1.87. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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Datadog (DDOG) closed the most recent trading day at $72.42, moving -0.73% from the previous trading session. Meanwhile, DDOG's PEG ratio is currently 1.87. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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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 $72.42, moving -0.73% from the previous trading session. Meanwhile, DDOG's PEG ratio is currently 1.87.
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Datadog (DDOG) closed the most recent trading day at $72.42, moving -0.73% from the previous trading session. Meanwhile, DDOG's PEG ratio is currently 1.87. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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bfc31a0a-47ab-49cb-8c82-3587294aacb8
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718412.0
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2022-12-22 00:00:00 UTC
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Why Palantir, Snowflake, and Datadog Plunged Today
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DDOG
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https://www.nasdaq.com/articles/why-palantir-snowflake-and-datadog-plunged-today
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nan
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nan
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What happened
Shares of popular software stocks Palantir (NYSE: PLTR), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) plunged today, falling 4.4%, 5.6%, and 6.2%, respectively, as of 2:23 p.m. ET.
While the tech-heavy Nasdaq was also down a big 3.3% on the day at that time, these high-growth software-as-a-service (SaaS) stocks fell by even more. That has been a constant theme through 2022, as the Federal Reserve's unprecedented interest rate-hiking cycle has decimated expensive, unprofitable growth stocks -- even if they are posting solid top-line growth.
Thursday saw the release of some GDP data that pointed to continued rate increases, dashing hopes of investors who had thought the inflation monster had been slayed. These three names were just a few of the many victims in the tech space.
So what
In another episode of "good news is bad news" in this market, today the government's Bureau of Economic Analysis released its third revision of third-quarter U.S. gross domestic product. In that revision, the BEA revised third-quarter GDP up to 3.2% growth, up from its prior estimate of 2.9%.
Current revisions incorporate more data, meaning the economy was stronger than expected last summer. In addition, the past week's jobless claims rose slightly to 216,000, up 2,000 from last week, which is still pointing to a very tight labor market.
In a normal world, stronger GDP and plentiful jobs would be a good thing, but not when the Federal Reserve is trying to tame inflation, especially wage inflation. The strong economic and jobs numbers therefore indicate the Fed may have to go further in hiking the federal funds rate, whereas many had thought that the better-than-expected inflation numbers from October and November would engender a "pause" from Fed officials.
Rising interest rates are especially bad for high-growth software stocks that will see the bulk of their earnings far out into the future, since higher rates discount the present value of future earnings. The farther away those profits are, the less they are worth in today's terms, when interest rates are high. This is why these high-quality growth names move so much on any given day, depending on economic data and speeches by Fed officials.
To illustrate this point, yesterday, Palantir rose with the market, despite Wolfe Research analyst Alex Zukin downgrading the stock to "underperform" and putting a $4.50 price target on this $6.20 stock. Zukin noted the expensive, time-consuming integration needed to run Palantir's software as a headwind, while also noting the "lumpiness" of large government contracts as limiting visibility.
Yet today, when inflation and rate fears kicked in, Palantir sold off hard, despite Bank of America analysts defending the stock, calling the sell-off "overdone" and putting a $14 price target on the beaten-down software name. Bank of America actually likes Palantir's strong, entrenched standing with defense contractors, even if those revenues come in unevenly, while also noting Palantir's strong cash position, which in and of itself amounts to about $1 per share.
Now what
It may be frustrating that these stocks are so vulnerable to the minutiae of macroeconomic data, interest rates, and what any random Federal Reserve governor might say on any given day; however, this is the market in 2022.
Long-term investors should look at the bright side: This rate-driven market sell-off may be opening up long-term buying opportunities. For instance, Snowflake is nearly back down to its IPO price of $120, which is the price at which Warren Buffett's Berkshire Hathaway bought shares on the IPO.
Along with Snowflake, Datadog is also seen as a leader and winner in the software observability space. Datadog is also operating close to GAAP profitability while maintaining high growth rates.
Still, I wouldn't classify either stock as "cheap," as Datadog and Snowflake still trade at very high multiples of sales. Yet investors should at least be making a list of the best-in-class growth stocks that are performing well but which have nonetheless been decimated by this rate-driven market.
Interested investors should try to figure out the intrinsic value of these stocks based on a discounted cash flow model. If these names fall far enough and reach your price target, you should be ready to pounce in the new year, as we seem to be getting toward the latter stages of this rate-hiking cycle.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein has positions in Bank of America and Berkshire Hathaway. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, Datadog, Palantir Technologies, and Snowflake. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, short January 2023 $200 puts on Berkshire Hathaway, and short January 2023 $265 calls on Berkshire Hathaway. 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 popular software stocks Palantir (NYSE: PLTR), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) plunged today, falling 4.4%, 5.6%, and 6.2%, respectively, as of 2:23 p.m. Thursday saw the release of some GDP data that pointed to continued rate increases, dashing hopes of investors who had thought the inflation monster had been slayed. Yet today, when inflation and rate fears kicked in, Palantir sold off hard, despite Bank of America analysts defending the stock, calling the sell-off "overdone" and putting a $14 price target on the beaten-down software name.
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What happened Shares of popular software stocks Palantir (NYSE: PLTR), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) plunged today, falling 4.4%, 5.6%, and 6.2%, respectively, as of 2:23 p.m. That has been a constant theme through 2022, as the Federal Reserve's unprecedented interest rate-hiking cycle has decimated expensive, unprofitable growth stocks -- even if they are posting solid top-line growth. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, Datadog, Palantir Technologies, and Snowflake.
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What happened Shares of popular software stocks Palantir (NYSE: PLTR), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) plunged today, falling 4.4%, 5.6%, and 6.2%, respectively, as of 2:23 p.m. To illustrate this point, yesterday, Palantir rose with the market, despite Wolfe Research analyst Alex Zukin downgrading the stock to "underperform" and putting a $4.50 price target on this $6.20 stock. Yet today, when inflation and rate fears kicked in, Palantir sold off hard, despite Bank of America analysts defending the stock, calling the sell-off "overdone" and putting a $14 price target on the beaten-down software name.
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What happened Shares of popular software stocks Palantir (NYSE: PLTR), Snowflake (NYSE: SNOW), and Datadog (NASDAQ: DDOG) plunged today, falling 4.4%, 5.6%, and 6.2%, respectively, as of 2:23 p.m. In that revision, the BEA revised third-quarter GDP up to 3.2% growth, up from its prior estimate of 2.9%. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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469bca74-411a-4845-99d5-6a5b1b253b7a
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718413.0
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2022-12-22 00:00:00 UTC
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Is Datadog (DDOG) a Buy as Wall Street Analysts Look Optimistic?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-ddog-a-buy-as-wall-street-analysts-look-optimistic
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nan
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nan
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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>>>
While the ABR calls for buying Datadog, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of 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.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DDOG Worth Investing In?
Looking at the earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has increased 6.2% 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.
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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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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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fefa9a03-ddee-4d1a-b663-ce833dbdb861
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718414.0
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2022-12-20 00:00:00 UTC
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Quant Ratings Updated on 68 Stocks
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DDOG
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https://www.nasdaq.com/articles/quant-ratings-updated-on-68-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market struggled to find direction early this week, but that’s not too surprising. Trading volume is light because most traders have already packed up to get a jump start on the holiday weekend. As a result, stocks are more susceptible to big swings.
I should add that some of my Portfolio Grader’s stock ratings are swinging a bit, too. I revised my Portfolio Grader recommendations for 68 big blue chip stocks over the weekend, and of those 68 stocks, 30 stocks were downgraded from a Buy (B-rating) to a Hold (C-rating) and 13 stocks were downgraded from a Hold to a Sell (D-rating).
One stock that I would like to call out that was upgraded from a D-rating to a C-rating is NVIDIA Corporation (NASDAQ:NVDA). The fact is the stock has been stuck at a D-rating since November, so what changed?
NVDA’s Quantitative Grade.
The Quantitative Grade, which accounts for about 70% of a stock’s Total Grade, measures a company’s institutional buying pressure. You can think of this as “following the money.” The more money that floods into a stock, the more momentum a stock has to rise. The opposite is also true; the more money that flees a stock, the more momentum a stock has to fall. Given the revised C-rating for NVDA’s Quantitative Grade, it’s clear that money is starting to flow back into the stock.
I’ve listed the 10 stocks (including NVIDIA) that were also upgraded from a D-rating to a C-rating below, but for the full list of upgrades and downgrades, please click here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
TICKER COMPANY NAME TOTAL GRADE
DDOG Datadog Inc Class A C
DOCU DocuSign, Inc. C
HUBS HubSpot, Inc. C
MSFT Microsoft Corporation C
NICE NICE Ltd Sponsored ADR C
NVDA NVIDIA Corporation C
SNOW Snowflake, Inc. Class A C
TGT Target Corporation C
TTM Tata Motors Limited Sponsored ADR C
USB U.S. Bancorp C
This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The fact of the matter is we are in a 15% stock market, where essentially all the positive sales and earnings forecasted in the top 15% of all stocks that I monitor. As a result, that institutional buying pressure that creates the “Alphas” that I see is expected to chase fewer stocks than when 40% of all stocks are performing well and exhibiting relative strength.
In other words, that institutional buying pressure is focused on fewer stocks and is almost acting like a “firehose” that is creating relentless buying pressure – and my Growth Investor stocks are in prime position to benefit.
In the upcoming Growth Investor January Monthly Issue, I’ll explain exactly why. This issue will be available on my members-only website after the market closes on Thursday.
If you’re interested, join me at Growth Investor today so you have access to the Monthly Issue, as well as my two newest recommendation and latest Top Stocks lists as soon as the issue is released.
Sincerely,
Source: InvestorPlace unless otherwise noted
Louis Navellier
P.S. Don’t forget that the stock market will be closed next Monday, December 26, for the Christmas holiday! The InvestorPlace offices and customer service department will be closed on Friday, December 23, and Monday, December 26.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT)
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Quant Ratings Updated on 68 Stocks 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 Inc Class A C DOCU DocuSign, Inc. C HUBS HubSpot, Inc. C MSFT Microsoft Corporation C NICE NICE Ltd Sponsored ADR C NVDA NVIDIA Corporation C SNOW Snowflake, Inc. Class A C TGT Target Corporation C TTM Tata Motors Limited Sponsored ADR C USB U.S. Bancorp C This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. Given the revised C-rating for NVDA’s Quantitative Grade, it’s clear that money is starting to flow back into the stock.
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DDOG Datadog Inc Class A C DOCU DocuSign, Inc. C HUBS HubSpot, Inc. C MSFT Microsoft Corporation C NICE NICE Ltd Sponsored ADR C NVDA NVIDIA Corporation C SNOW Snowflake, Inc. Class A C TGT Target Corporation C TTM Tata Motors Limited Sponsored ADR C USB U.S. Bancorp C This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. I revised my Portfolio Grader recommendations for 68 big blue chip stocks over the weekend, and of those 68 stocks, 30 stocks were downgraded from a Buy (B-rating) to a Hold (C-rating) and 13 stocks were downgraded from a Hold to a Sell (D-rating).
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DDOG Datadog Inc Class A C DOCU DocuSign, Inc. C HUBS HubSpot, Inc. C MSFT Microsoft Corporation C NICE NICE Ltd Sponsored ADR C NVDA NVIDIA Corporation C SNOW Snowflake, Inc. Class A C TGT Target Corporation C TTM Tata Motors Limited Sponsored ADR C USB U.S. Bancorp C This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market struggled to find direction early this week, but that’s not too surprising.
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DDOG Datadog Inc Class A C DOCU DocuSign, Inc. C HUBS HubSpot, Inc. C MSFT Microsoft Corporation C NICE NICE Ltd Sponsored ADR C NVDA NVIDIA Corporation C SNOW Snowflake, Inc. Class A C TGT Target Corporation C TTM Tata Motors Limited Sponsored ADR C USB U.S. Bancorp C This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. One stock that I would like to call out that was upgraded from a D-rating to a C-rating is NVIDIA Corporation (NASDAQ:NVDA).
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d7134eae-0a48-49d3-ab6d-851dad1ddedb
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718415.0
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2022-12-16 00:00:00 UTC
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Datadog (DDOG) Stock Moves -0.61%: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-stock-moves-0.61%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 $77.83, marking a -0.61% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, added 0.1%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 0.88% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.59% and the S&P 500's loss of 2.19% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. In that report, analysts expect Datadog to post earnings of $0.18 per share. This would mark a year-over-year decline of 10%. Our most recent consensus estimate is calling for quarterly revenue of $446.51 million, up 36.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.89 per share and revenue of $1.65 billion, which would represent changes of +85.42% and +60.66%, 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. 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. 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 remained stagnant within the past month. Datadog is currently a Zacks Rank #2 (Buy).
Digging into valuation, Datadog currently has a Forward P/E ratio of 87.79. This valuation marks a premium compared to its industry's average Forward P/E of 45.16.
Also, we should mention that DDOG has a PEG ratio of 2.05. 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 industry currently had an average PEG ratio of 2.2 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 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
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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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In the latest trading session, Datadog (DDOG) closed at $77.83, marking a -0.61% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 2.05. 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 $77.83, marking a -0.61% 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. Also, we should mention that DDOG has a PEG ratio of 2.05.
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In the latest trading session, Datadog (DDOG) closed at $77.83, marking a -0.61% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 2.05. 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 $77.83, marking a -0.61% move from the previous day. Also, we should mention that DDOG has a PEG ratio of 2.05. 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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de1deff4-bf75-46ca-9bfd-9e9df1ca0b48
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718416.0
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2022-12-14 00:00:00 UTC
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Why Datadog Stock Is a Good Boy on Wednesday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-is-a-good-boy-on-wednesday
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nan
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nan
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What happened
Shares of cloud-based data monitoring and analytics platform Datadog (NASDAQ: DDOG) inched higher on Wednesday morning, rising 2.3% through 11:05 a.m. EST.
You can thank investment bank Oppenheimer for that.
So what
Praising the company for its "unified, real-time view into the entire technology stack" this morning, Oppenheimer upgraded Datadog stock to outperform and gave it a $105 price target that implies the stock could rise nearly 29% over the next 12 months, reports StreetInsider. And Oppy reassured investors who are worried about the prospects of richly valued cloud stocks rising in the face of a looming recession, saying, "While not recession-proof, the mission-critical nature of its solutions gives Datadog relative resiliency in times of spending constraints."
Now what
In the context of a recession that slows the economy's growth and deprives profitless growth stocks of much of their attractiveness -- while at the same time raising the cost of debt through higher interest rates -- it's more important than ever for investors to seek out stocks capable of funding their own operations without debt.
Oppenheimer argues that this description fits Datadog to a T, inasmuch as the company boasts strong free cash flow and the potential for continued revenue growth in the 30% annual range. Turning to S&P Global Market Intelligence for confirmation, we see that Datadog -- while technically unprofitable on the basis of generally accepted accounting principles (GAAP) -- has been free-cash-flow-positive since at least 2019, and generated at least $364 million in positive free cash flow over the past 12 months. (This is true even if you count capitalized software costs as a capital expense).
That being said, it's probably a mistake to think that Datadog stock would be a buy even if a recession slowed its growth rate. Currently, Datadog stock carries an enterprise-value-to-free-cash-flow ratio of 67 -- which is pretty high. This valuation is arguably justified if Datadog continues to grow as most analysts forecast it will, at a rate of 44% annually over the next five years. On the other hand, if Oppenheimer is right and growth slows to the 30% range, I fear an investment in Datadog could remain a risky proposition.
Conclusion: With its stock down more than 50% over the past year, it's tempting to think Datadog stock can't go much lower than it already has. If its growth slows enough, though...I fear this stock really could keep going lower.
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 December 1, 2022
Rich Smith 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 cloud-based data monitoring and analytics platform Datadog (NASDAQ: DDOG) inched higher on Wednesday morning, rising 2.3% through 11:05 a.m. EST. And Oppy reassured investors who are worried about the prospects of richly valued cloud stocks rising in the face of a looming recession, saying, "While not recession-proof, the mission-critical nature of its solutions gives Datadog relative resiliency in times of spending constraints." Oppenheimer argues that this description fits Datadog to a T, inasmuch as the company boasts strong free cash flow and the potential for continued revenue growth in the 30% annual range.
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What happened Shares of cloud-based data monitoring and analytics platform Datadog (NASDAQ: DDOG) inched higher on Wednesday morning, rising 2.3% through 11:05 a.m. EST. Turning to S&P Global Market Intelligence for confirmation, we see that Datadog -- while technically unprofitable on the basis of generally accepted accounting principles (GAAP) -- has been free-cash-flow-positive since at least 2019, and generated at least $364 million in positive free cash flow over the past 12 months. That being said, it's probably a mistake to think that Datadog stock would be a buy even if a recession slowed its growth rate.
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What happened Shares of cloud-based data monitoring and analytics platform Datadog (NASDAQ: DDOG) inched higher on Wednesday morning, rising 2.3% through 11:05 a.m. EST. So what Praising the company for its "unified, real-time view into the entire technology stack" this morning, Oppenheimer upgraded Datadog stock to outperform and gave it a $105 price target that implies the stock could rise nearly 29% over the next 12 months, reports StreetInsider. Now what In the context of a recession that slows the economy's growth and deprives profitless growth stocks of much of their attractiveness -- while at the same time raising the cost of debt through higher interest rates -- it's more important than ever for investors to seek out stocks capable of funding their own operations without debt.
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What happened Shares of cloud-based data monitoring and analytics platform Datadog (NASDAQ: DDOG) inched higher on Wednesday morning, rising 2.3% through 11:05 a.m. EST. That being said, it's probably a mistake to think that Datadog stock would be a buy even if a recession slowed its growth rate. This valuation is arguably justified if Datadog continues to grow as most analysts forecast it will, at a rate of 44% annually over the next five years.
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5aec092b-8647-49f2-8959-52808ca07449
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718417.0
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2022-12-14 00:00:00 UTC
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Nasdaq 100 Movers: CHTR, DOCU
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-chtr-docu-0
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nan
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nan
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In early trading on Wednesday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%. Year to date, DocuSign has lost about 60.3% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Charter Communications, trading down 13.4%. Charter Communications Inc is lower by about 47.8% looking at the year to date performance.
Two other components making moves today are Comcast, trading down 2.7%, and Datadog, trading up 4.1% on the day.
VIDEO: Nasdaq 100 Movers: CHTR, DOCU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Charter Communications, trading down 13.4%. Charter Communications Inc is lower by about 47.8% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: CHTR, DOCU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Wednesday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%. Year to date, DocuSign has lost about 60.3% of its value. And the worst performing Nasdaq 100 component thus far on the day is Charter Communications, trading down 13.4%.
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In early trading on Wednesday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%. And the worst performing Nasdaq 100 component thus far on the day is Charter Communications, trading down 13.4%. Two other components making moves today are Comcast, trading down 2.7%, and Datadog, trading up 4.1% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Charter Communications, trading down 13.4%. Charter Communications Inc is lower by about 47.8% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: CHTR, DOCU 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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f9975e37-606b-4fc6-ac76-38fb71a32a7c
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718418.0
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2022-12-14 00:00:00 UTC
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Buy These 5 Tech Stocks That Have Lost Half Their Value
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DDOG
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https://www.nasdaq.com/articles/buy-these-5-tech-stocks-that-have-lost-half-their-value
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nan
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nan
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The U.S. equity market has been witnessing a downturn since the beginning of 2022 due to prolonged macroeconomic headwinds like coronavirus pandemic-induced supply-chain challenges and ongoing geopolitical tensions, which have shot up the inflation rate.
A stubbornly high inflation rate has pushed the equity market into the negative territory, which is evident from 28.1%, 15.7% and 6.1% year-to-date declines in the Nasdaq composite, the S&P 500 and the Dow Jones Industrial Average indices, respectively.
The annual inflation rate is 7.1% for the 12 months ended November 2022,according to the U.S. Labor Department data published on Dec 13, 2022. Almost every sector, including technology, manufacturing, industrial and automotive, is witnessing slow growth due to aggravating fears of economic recession.
To counter the high inflation, the Federal Reserve hiked interest rates four times this year by 0.75 basis points on each occasion. Fed’s aggressive stance on inflation control is responsible for the huge sell-off in the broader equity market.
Nevertheless, the situation is likely to improve in the near term, as it is expected that Fed would spike the interest rates by 50 basis points this time instead of 75 basis points.
Against this backdrop, we advise investors looking for good investment opportunities to park their money in tech stocks with strong fundamentals.
Technology Sector Holds Promise
Although the technology sector has been suffering from supply-chain disruptions, it has shown maximum resiliency throughout the pandemic and is highly resistant to volatility.
Moreover, the said sector, which is widely-diversified, holds the potential to defy recessionary woes and minimize the anticipated contraction of the world economy despite rising interest rates, supply-chain constraints and geopolitical tensions.
Per The Express Wire report, the global technology market is expected to reach $3.2 billion by 2027, witnessing a CAGR of 25.7% during the 2022-2027 period.
The technology sector is continuously riding on ongoing worldwide digitization. Growing 5G deployments, the rising proliferation of cloud services, cybersecurity solutions, IoT, AI, machine learning, blockchain, autonomous driving technology and the increasing trend of hybrid work are likely to be the major tailwinds for technology companies.
Our Top Picks
Considering the above factors, here we recommend five technology stocks, which have lost half their values this year but are still worth buying as we enter 2023.
In this highly volatile situation, one should look for stocks that are undervalued or less valued but have bright growth prospects to ensure solid portfolio returns.
Our top picks include the likes of Shopify SHOP, Datadog DDOG, Zscaler ZS, Cloudflare NET and Twilio TWLO. These have strong fundamentals, carry a Zacks Rank #2 (Buy) and have a market capitalization of $5 billion or more. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The following chart shows the price performance of the five picks in the year-to-date period.
Image Source: Zacks Investment Research
Shopify provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses. The company hosts a huge database of merchant and customer interactions in its platform.
Shopify, which has lost 71.9% in the year-to-date (YTD) period, is benefiting from strong growth in the merchant base. It has been focused on winning merchants regularly, based on product offerings, including Shop Pay and Shop Pay Installments. The solid adoption of new merchant-friendly applications holds promise. Partnerships with YouTube, Twitter, Facebook, Instagram and Google are expected to expand its merchant base in the days ahead.
SHOP has a market capitalization of $48.5 billion.
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations, including public cloud, private cloud, on-premise hardware, databases and third-party software.
Datadog, which has lost 55.3% YTD, is riding on new customer additions and increased adoption of its cloud-based monitoring and analytics platform, driven by accelerated digital transformation and cloud migration across organizations. The solid adoption of Synthetics and Network Performance Monitoring products is expected to aid customer wins in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver besides an expanding portfolio.
DDOG has a market capitalization of $24.5 billion.
Zscaler is one of the world’s leading providers of cloud-based security solutions. Zscaler, which has lost 61.4% in the YTD period, offers a full range of enterprise network security services, including web security, internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of things environments.
Zscaler is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. The increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver. Zscaler’s portfolio strength boosts its competitive edge and helps it in expanding user base.
ZS has a market capitalization of $17.5 billion.
Cloudflare is a U.S.-based content delivery network and DDoS (distributed denial of service) mitigation company. It acts as a reverse proxy between a website’s visitor and Cloudflare customer’s hosting provider.
Cloudflare is riding on a growing customer base on the back of a robust portfolio of solutions. Moreover, its growing momentum among large customers remains a major tailwind. Notably, the company generates 61% of total revenues from large customers. Cloudflare has lost 60.6% in the year-to-date period.
NET has a market capitalization of $16.7 billion.
Twilio is a U.S.-based provider of programmable communication tools to help customers make and receive phone calls, send and receive text messages, and perform other communication functions using its web service APIs.
Twilio, which has lost 81.1% in the YTD period, is benefiting from accelerated digital transformation amid a growing hybrid working trend. Its selective acquisitions and strategic investments in businesses and technologies are enhancing its product portfolio and fortifying its global presence.
TWLO has a market capitalization of $8.9 billion.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
Shopify Inc. (SHOP) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
Zscaler, Inc. (ZS) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
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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Our top picks include the likes of Shopify SHOP, Datadog DDOG, Zscaler ZS, Cloudflare NET and Twilio TWLO. DDOG has a market capitalization of $24.5 billion. Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Our top picks include the likes of Shopify SHOP, Datadog DDOG, Zscaler ZS, Cloudflare NET and Twilio TWLO. Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. DDOG has a market capitalization of $24.5 billion.
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Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Our top picks include the likes of Shopify SHOP, Datadog DDOG, Zscaler ZS, Cloudflare NET and Twilio TWLO. DDOG has a market capitalization of $24.5 billion.
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Our top picks include the likes of Shopify SHOP, Datadog DDOG, Zscaler ZS, Cloudflare NET and Twilio TWLO. DDOG has a market capitalization of $24.5 billion. Click to get this free report Shopify Inc. (SHOP) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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bdb202dd-224e-4dad-95dd-0bf6fa7716c0
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718419.0
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2022-12-13 00:00:00 UTC
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Why Twilio, MongoDB, and Datadog Rallied for the Second Day in a Row
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DDOG
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https://www.nasdaq.com/articles/why-twilio-mongodb-and-datadog-rallied-for-the-second-day-in-a-row
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nan
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nan
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What happened
Shares of high-growth software stocks Twilio (NYSE: TWLO), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) were rallying this morning for the second day in a row, up 4.3%, 2.5%, and 6.6%, respectively, as of 11:39 AM EDT.
It's not hard to figure out why: This morning's Consumer Price Index (CPI) report from November came in lighter than expected -- making it the second month in a row that the CPI has surprised to the downside.
High-growth but unprofitable tech stocks have proven to be highly sensitive to inflation and interest rates, and yesterday and today's surges were no different. But is it too early to declare an all-clear to buy these types of beaten-down growth stocks?
So what
For the month of November, the CPI index increased only 0.1% month over month and 7.1% year over year. Core inflation, which strips out volatile food and energy prices, increased 0.2% month over month and 6% year over year. The monthly increases were below the 0.3% expected on both counts.
What's especially encouraging was that the lower inflation was fairly broad-based, and shelter inflation, a lagging indicator, was up 0.6%, skewing results higher. However, the shelter statistic lags by six to 12 months; meanwhile, most real-time data shows that shelter prices are actually turning negative. Therefore, the CPI trend may actually be lower than even these good numbers indicate.
This was certainly welcome news, after this year's post-pandemic inflation surge increased long-term interest rates while also forcing the Federal Reserve to raise the federal funds rate incredibly rapidly.
Rapidly rising inflation and interest rates are usually bad for all stocks, but especially for unprofitable stocks that don't pay out dividends to shareholders. This is for a number of reasons; rising rates increase the attractiveness of short-term bonds over stocks, giving stocks competition for investment dollars. Rising interest rates also slow the economy by making borrowing more expensive. Meanwhile, since the intrinsic value of any stock is the present value of all future cash flows discounted back to the present, the further out a company's profits, the less they are worth in today's dollars. Therefore, if a stock is printing losses today, with the bulk of its value in cash flows many years out, its valuation will suffer disproportionately in a higher-rate environment.
This is why the last two months' lower inflation was such welcome news for unprofitable growth tech stocks like Twilio, MongoDB, and Datadog.
The surge follows yesterday's big move higher, which was perhaps triggered by an anticipation of the lower CPI print today, as well as the high-profile acquisition of another software-as-a-service peer by a private equity firm.
Now what
When the entire investing community is focused on macroeconomic factors, it can be easy for company-specific factors to get lost. Investors shouldn't necessarily neglect profitless growth stocks; however, even though inflation is moderating, there is still a high probability that interest rates will wind up settling significantly higher than during the pandemic, when long-term bond rates tracked below 2%.
That means investors need to be more discerning about high-growth stocks. Going forward, it will be important to figure out exactly how much a company can realistically grow revenue over the next decade and what a company's terminal profit margins (including stock-based compensation) will be.
For instance, Datadog was able to actually produce operating profits (according to GAAP or generally accepted accounting principles) earlier this year, before last quarter's spending dipped its year-to-date operating income into the red for the year. Still, Datadog has been able to maintain very healthy growth rates this year even as many software companies are reporting a slowdown, and it operates near breakeven.
So one can assume Datadog will one day be quite profitable, whereas Twilio, which posted an operating loss of nearly half a billion dollars last quarter alone, is not nearly as likely to ever be materially profitable.
Today's lower inflation report is certainly good news, and certainly could be a sign that growth stocks will regain some of their luster after this year's brutal declines. However, investors should not expect a reversion to pandemic-era growth rates and rock-bottom interest rates. That means investors need to be more discerning among specific companies, as the bottom line for these high-growth companies will continue to be more of a focus than it was in the recent past.
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 December 1, 2022
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, MongoDB, and Twilio. 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 software stocks Twilio (NYSE: TWLO), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) were rallying this morning for the second day in a row, up 4.3%, 2.5%, and 6.6%, respectively, as of 11:39 AM EDT. Therefore, if a stock is printing losses today, with the bulk of its value in cash flows many years out, its valuation will suffer disproportionately in a higher-rate environment. The surge follows yesterday's big move higher, which was perhaps triggered by an anticipation of the lower CPI print today, as well as the high-profile acquisition of another software-as-a-service peer by a private equity firm.
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What happened Shares of high-growth software stocks Twilio (NYSE: TWLO), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) were rallying this morning for the second day in a row, up 4.3%, 2.5%, and 6.6%, respectively, as of 11:39 AM EDT. This was certainly welcome news, after this year's post-pandemic inflation surge increased long-term interest rates while also forcing the Federal Reserve to raise the federal funds rate incredibly rapidly. This is why the last two months' lower inflation was such welcome news for unprofitable growth tech stocks like Twilio, MongoDB, and Datadog.
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What happened Shares of high-growth software stocks Twilio (NYSE: TWLO), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) were rallying this morning for the second day in a row, up 4.3%, 2.5%, and 6.6%, respectively, as of 11:39 AM EDT. Rapidly rising inflation and interest rates are usually bad for all stocks, but especially for unprofitable stocks that don't pay out dividends to shareholders. Investors shouldn't necessarily neglect profitless growth stocks; however, even though inflation is moderating, there is still a high probability that interest rates will wind up settling significantly higher than during the pandemic, when long-term bond rates tracked below 2%.
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What happened Shares of high-growth software stocks Twilio (NYSE: TWLO), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) were rallying this morning for the second day in a row, up 4.3%, 2.5%, and 6.6%, respectively, as of 11:39 AM EDT. Rapidly rising inflation and interest rates are usually bad for all stocks, but especially for unprofitable stocks that don't pay out dividends to shareholders. This is why the last two months' lower inflation was such welcome news for unprofitable growth tech stocks like Twilio, MongoDB, and Datadog.
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0528d1cc-efc2-41cd-8fed-79f185096c90
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718420.0
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2022-12-13 00:00:00 UTC
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Nasdaq 100 Movers: ORLY, MRNA
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-orly-mrna
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nan
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nan
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In early trading on Tuesday, shares of Moderna topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.1%. Year to date, Moderna has lost about 21.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 0.3%. O'Reilly Automotive is showing a gain of 17.8% looking at the year to date performance.
Two other components making moves today are Activision Blizzard, trading down 0.2%, and Datadog, trading up 8.6% on the day.
VIDEO: Nasdaq 100 Movers: ORLY, MRNA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 0.3%. O'Reilly Automotive is showing a gain of 17.8% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ORLY, MRNA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of Moderna topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.1%. Year to date, Moderna has lost about 21.9% of its value. And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 0.3%.
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In early trading on Tuesday, shares of Moderna topped the list of the day's best performing components of the Nasdaq 100 index, trading up 20.1%. And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 0.3%. Two other components making moves today are Activision Blizzard, trading down 0.2%, and Datadog, trading up 8.6% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 0.3%. O'Reilly Automotive is showing a gain of 17.8% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ORLY, MRNA 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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d88da336-1349-40ba-94d9-982182f4f356
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718421.0
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2022-12-13 00:00:00 UTC
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The 7 Hottest Cybersecurity Stocks to Own for 2023 and Beyond
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DDOG
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https://www.nasdaq.com/articles/the-7-hottest-cybersecurity-stocks-to-own-for-2023-and-beyond
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s only a matter of time before we’re hit with another massive cyberattack, and that’s why we’re looking at some of the hottest cybersecurity stocks to own today.
At the moment, cities, hospitals, schools, corporations, small businesses and even U.S. government agencies are all vulnerable. Even your information isn’t safe. Your most personal information, banking details, social security numbers and your children’s information. And just in case you think hackers can’t get to you, it’s already happened. Worse, according to Cybersecurity Ventures, global cybercrime costs will grow about 15% a year, reaching $10.5 trillion by 2025 (up from $3 trillion in 2015). That alone is a good reason for investors to look at some of the hottest cybersecurity stocks on the market.
Yet, none of us are prepared at all. “Cybercrime costs include damage and destruction of data, stolen money, lost productivity, theft of intellectual property, theft of personal and financial data, embezzlement, fraud, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hacked data and systems and reputational harm,” says Steve Morgan, founder of Cybersecurity Ventures.
Right now, according to Forbes, about 41% of security executives in a poll by ThoughtLab don’t think their companies are prepared. In a different global study, 82% of CIOs said their software supply chains are vulnerable. Unfortunately, the world may never be fully prepared. However, while we wait for the world to finally wake up, we can at least profit from the story.
BUG Global X Cybersecurity ETF $22.85
HACK ETFMG Prime Cyber Security ETF $46.23
PANW Palo Alto Networks $161.78
CRWD Crowdstrike $118.54
DDOG Datadog $76.99
FTNT Fortinet $53.64
S SentinelOne $15.88
Global X Cybersecurity ETF (BUG)
Source: SWEviL / Shutterstock
One of the best ways to trade any hot sector is with an exchange-traded fund (ETF), such as the Global X Cybersecurity ETF (NASDAQ:BUG). Not only does BUG offer greater diversification, but it does so at far less cost. With an expense ratio of 0.50%, the BUG ETF offers exposure to 27 holdings, which will benefit from adoption of cybersecurity adoption.
Some of its top holdings include Fortinet (NASDAQ:FTNT), Palo Alto (NASDAQ:PANW), Check Point Software (NASDAQ:CHKP), Okta (NASDAQ:OKTA) and Rapid7 (NASDAQ:RPD) to name a few. With BUG, I can buy 100 shares for $2,285 at the moment, and gain massive exposure to these names. Or, I can buy 100 shares of, for the sake of example, PANW, and pay just over $16,000 for the same amount of the one stock. In short, ETFs just make sense.
PureFunds ISE Cyber Security ETF (HACK)
Source: Shutterstock
Another solid, oversold cyber security ETF to consider is the PureFunds ISE Cyber Security ETF (NYSE:HACK). With an expense ratio of 0.60%, this ETF invests in cyber security solutions that include hardware, software and services. Some of its top holdings include BAE Systems (OTCMKTS:BAESY), Leidos Holdings (NYSE:LDOS), VeriSign (NASDAQ:VRSN), Cisco (NASDAQ:CSCO), Fortinet, Check Point Software and Splunk (NASDAQ:SPLK). While the HACK ETF didn’t have an impressive outing in 2022, most other stocks didn’t either. Plus, with a growing, unstoppable cybersecurity threat, demand will only drive revenues higher.
Palo Alto Networks (PANW)
Source: Song_about_summer / Shutterstock
Palo Alto Networks is the crème de la crème of top cybersecurity stocks to buy. With solid demand, the company continues to produce strong earnings. In its first quarter, the company beat on earnings and sales, and then raised its guidance for the full year.
Revenue was up 25% year-over-year to $1.56 billion, which was above the company’s own guidance range of $1.535 billion to $1.555 billion. Non-GAAP profits came in at $266.4 million, or 83 cents a share, up from $170.3 million, or 55 cents, year-over-year. For the year, PANW now expects sales to fall in a range of $6.85 billion to $6.91 billion, which is up slightly from its prior sales forecast range of $6.85 billion to $6.9 billion. Growth was driven by customers increasing commitments to company platforms.
Analysts at Evercore ISI just raised its price target on PANW to $215 from $207, with an outperform rating. BMO Capital also just raised its target to $225 from $218, with an outperform rating on the stock, too.
CrowdStrike (CRWD)
Source: Shutterstock
Investors should also take a look at Crowdstrike (NASDAQ:CRWD). Over the last few weeks, the company gapped from about $140 to $115, where it appears to have found strong support. While the company reported annual recurring revenue of $2.34 billion, up 54% year-over-year, CEO George Kurtz said that was below expectations. A year earlier, that revenue number was up 67%. In the third quarter, the company also said it added 1,460 net subscription customers, which was down from 1,607 a year earlier.
However, even though numbers weren’t up to par, analysts at Morgan Stanley believe the pullback is a buying opportunity. “With forward estimates appropriately level set, we think this pullback provides an attractive entry point to accumulate shares in a premier SaaS security franchise,” said the firm, as quoted by CNBC.
Daiwa Capital Markets analyst Stephen Bersey also upgraded CRWD to a buy rating with a price target of $181 a share. The analyst liked the quarterly results and cost control.
Datadog (DDOG)
Source: Shutterstock
With a market cap of $24.4 billion, Datadog (NASDAQ:DDOG) didn’t have a great year either. Then again, many companies didn’t. 2022 was a train wreck of a year. However, I’d use the weakness in DDOG as a buying opportunity, especially with it being a leader in the $62 billion “observability” market.
After all, observability is essential. It helps provide companies with insight into metrics, traces and logs. It can also help determine when an attack occurred, insight into what attackers did while inside the company and help improve security in the future.
Even better, billionaires are investing in DDOG. Stanley Druckenmiller, for example, bought about 790,000 shares over the last few months. Jim Simons’ Renaissance Technologies also bought about 331,000 shares. All of this is occurring as the company continues to grow. In the third quarter, DDOG posted 61% year-over-year revenue growth to $437 million. Even its net loss improved, to a loss of $14 million from $40 million over the last year. In addition, the company has a net retention rate of more than 130%, which is unheard of with software companies.
Fortinet (FTNT)
Source: Shutterstock
Fortinet is another one of the big players in cybersecurity, with strong growth. In the company’s third quarter, revenue was up 33% year-over-year to $1.15 billion. All of this is thanks to a 39% jump in product sales and a 28% jump in services revenue. EPS was up 65% to 33 cents, as cash flow soared 20% to $395 million.
There’s plenty more to like about FTNT here. For example, once FTNT software is installed, customers will continue to pay for ongoing software and services. The company has also been investing in employee endpoint protection, which is essential for remote employees.
While the company did guide for $1.69 billion in billings, which is at the midpoint of its guidance, it was below Street expectations for $1.74 billion. While that’s a negative, billings are on course to jump about 30% year-over-year, which is still very healthy.
SentinelOne (S)
Source: JLStock / Shutterstock
SentinelOne (NYSE:S) is another hot cybersecurity stock to buy and hold. It is using artificial intelligence via its Singularity platform to deliver protection for its customers. According to the company, the platform is delivering the speed and assessment necessary to fend off modern-day cyber threats, which continue to evolve.
Even better, earnings and guidance are solid. In its third quarter, adjusted EPS came in at 16 cents lost on sales of $115.32 million. That was far better than the expectation for a loss of 25 cents on sales of $95.7 million. That unexpected profit was driven by a 106% jump in revenue, which was fueled by the adoption of the company’s cloud offerings. For Q4 2022, the company expects revenue to come in around $125 million. It also expects full-year revenue to fall in the range of $420 million and $421 million, as compared to expectations for $416 million.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
The post The 7 Hottest Cybersecurity Stocks to Own for 2023 and Beyond 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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BUG Global X Cybersecurity ETF $22.85 HACK ETFMG Prime Cyber Security ETF $46.23 PANW Palo Alto Networks $161.78 CRWD Crowdstrike $118.54 DDOG Datadog $76.99 FTNT Fortinet $53.64 S SentinelOne $15.88 Global X Cybersecurity ETF (BUG) Source: SWEviL / Shutterstock One of the best ways to trade any hot sector is with an exchange-traded fund (ETF), such as the Global X Cybersecurity ETF (NASDAQ:BUG). Datadog (DDOG) Source: Shutterstock With a market cap of $24.4 billion, Datadog (NASDAQ:DDOG) didn’t have a great year either. However, I’d use the weakness in DDOG as a buying opportunity, especially with it being a leader in the $62 billion “observability” market.
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BUG Global X Cybersecurity ETF $22.85 HACK ETFMG Prime Cyber Security ETF $46.23 PANW Palo Alto Networks $161.78 CRWD Crowdstrike $118.54 DDOG Datadog $76.99 FTNT Fortinet $53.64 S SentinelOne $15.88 Global X Cybersecurity ETF (BUG) Source: SWEviL / Shutterstock One of the best ways to trade any hot sector is with an exchange-traded fund (ETF), such as the Global X Cybersecurity ETF (NASDAQ:BUG). Datadog (DDOG) Source: Shutterstock With a market cap of $24.4 billion, Datadog (NASDAQ:DDOG) didn’t have a great year either. However, I’d use the weakness in DDOG as a buying opportunity, especially with it being a leader in the $62 billion “observability” market.
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BUG Global X Cybersecurity ETF $22.85 HACK ETFMG Prime Cyber Security ETF $46.23 PANW Palo Alto Networks $161.78 CRWD Crowdstrike $118.54 DDOG Datadog $76.99 FTNT Fortinet $53.64 S SentinelOne $15.88 Global X Cybersecurity ETF (BUG) Source: SWEviL / Shutterstock One of the best ways to trade any hot sector is with an exchange-traded fund (ETF), such as the Global X Cybersecurity ETF (NASDAQ:BUG). Datadog (DDOG) Source: Shutterstock With a market cap of $24.4 billion, Datadog (NASDAQ:DDOG) didn’t have a great year either. However, I’d use the weakness in DDOG as a buying opportunity, especially with it being a leader in the $62 billion “observability” market.
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BUG Global X Cybersecurity ETF $22.85 HACK ETFMG Prime Cyber Security ETF $46.23 PANW Palo Alto Networks $161.78 CRWD Crowdstrike $118.54 DDOG Datadog $76.99 FTNT Fortinet $53.64 S SentinelOne $15.88 Global X Cybersecurity ETF (BUG) Source: SWEviL / Shutterstock One of the best ways to trade any hot sector is with an exchange-traded fund (ETF), such as the Global X Cybersecurity ETF (NASDAQ:BUG). In the third quarter, DDOG posted 61% year-over-year revenue growth to $437 million. Datadog (DDOG) Source: Shutterstock With a market cap of $24.4 billion, Datadog (NASDAQ:DDOG) didn’t have a great year either.
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5c1dc753-0d60-410a-857e-6c148f92aaf8
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718422.0
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2022-12-12 00:00:00 UTC
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Nasdaq 100 Movers: MRNA, DOCU
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-mrna-docu
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nan
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nan
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In early trading on Monday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. Year to date, DocuSign has lost about 65.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 4.2%. Moderna is lower by about 33.1% looking at the year to date performance.
Two other components making moves today are Baidu, trading down 3.6%, and Datadog, trading up 3.5% on the day.
VIDEO: Nasdaq 100 Movers: MRNA, DOCU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 4.2%. VIDEO: Nasdaq 100 Movers: MRNA, DOCU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. Year to date, DocuSign has lost about 65.9% of its value. And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 4.2%.
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In early trading on Monday, shares of DocuSign topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.8%. And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 4.2%. Two other components making moves today are Baidu, trading down 3.6%, and Datadog, trading up 3.5% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 4.2%. Moderna is lower by about 33.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: MRNA, DOCU 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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3ae8d4f2-4146-4725-80a3-003a43770866
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718423.0
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2022-12-09 00:00:00 UTC
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2 Big-Data Stocks Capable of Big Gains in 2023
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DDOG
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https://www.nasdaq.com/articles/2-big-data-stocks-capable-of-big-gains-in-2023
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nan
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nan
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In this article, we'll use TipRanks' Comparison Tool to look at two stocks, Palantir (NYSE:PLTR) and Datadog (NASDAQ:DDOG), that are capable of big gains in 2023.
The tech sell-off is showing few signs of letting up as we head into the holiday season. With so many unprofitable disruptive tech stocks struggling to hang onto any relief bounces, there's a reasonable chance that the tech-focused pain could spread into 2023.
Palantir and Datadog are just two data plays that have been in free-fall for well over a year now. Shares of PLTR and DDOG are now down 65% and 80%, respectively, from their all-time highs.
With interest rates rising in the face of an economic downturn, a growing number of investors are turning away from tech stocks lacking in profits. In a near-zero rate environment, unprofitable growth stocks are more valued. In a 4-5% rate world, such stocks are worth some amount less. With sell-offs in innovative tech ranging from 30% to 90%, it's tough for dip-buyers to draw a line in the sand after such a vicious and ongoing descent.
Undoubtedly, many innovators may not be able to compete in a world without easy money. Plans to improve margins could be key to the bottoming-out process for stocks that can't seem to catch any sort of break.
Palantir and Datadog are two very different big-data plays that seem to sink lower by the week. One has to think the rate-induced valuation reset in the names has already (mostly) been considered. Going into recession, we'll see how much growth stands to erode as corporations look to trim away their IT budgets.
Palantir
Palantir is a former meme stock that's crashed back to Earth. The big-data analytics software developer does a lot of work for the U.S. government. That said, the company has been pushing into the commercial space to beef-up margins while increasing its total addressable market (TAM).
Undoubtedly, government work is less likely to take a big hit in the face of a Fed-induced economic downturn. As the company shifts gears and walks into new growth horizons, there's a good chance PLTR stock will be able to get back on its feet again after this horrific sell-off concludes.
Indeed, the meme-stock glory days are over with, leaving all-time highs out of sight over the next decade. Still, at $7 and change per share, there's a lot of runway if Palantir can make marginal improvements in a recession year.
The bar is very low at this juncture, with many analysts slapping the stock with a "Sell" recommendation. Even with Palantir's five-year $443 million CDC contract in the books, the future is hazy for the secretive company. At 7.6 times sales, PLTR stock seems more like a stock to buy on the way up than the way down. It's a name that's punished dip-buyers and meme-stock investors.
What is the Price Target for PLTR Stock?
Wall Street has a Hold consensus rating based on two Buys, four Holds, and four Sells assigned in the past three months. The average PLTR stock price target of $9.13 implies a 27.87% gain. In short, Palantir's a high-risk, high-reward name with little visibility.
Datadog
Datadog is a monitoring and analytics software company in a vicious bear market showing no signs of letting up. The company suffered a massive fall from grace. Even after a decent third quarter (EPS of $0.23 vs. $0.16 consensus), DDOG stock cannot catch any relief. The negative momentum is too strong.
Datadog has made progress on the margin front, with adjusted operating margins rising 100 bps to 17% in the latest quarter. Like Palantir, Datadog needs to keep growth going strong while improving its profitability prospects if it's to see its stock bottom out.
Datadog specializes in serving small and medium-sized businesses (SMBs), which tend to feel the most pressure from higher rates and macro headwinds. Longer term, I think Datadog will take advantage of its high growth ceiling as it looks to cater to and win over larger-cap clientele.
For now, Datadog remains an incredibly expensive stock. Sure, Datadog's on the right track, but its hefty valuation of 14.1 times sales is working against it in this environment. DDOG stock is definitely worth a premium price tag, but it remains to be seen where the valuation reset ends.
What is the Price Target for DDOG Stock?
Wall Street has a "Strong Buy" consensus rating on Datadog based on 20 Buys and six Holds. The average DDOG stock price target of $110.26 implies an over 45% gain from here.
Conclusion: Analysts Expect More from DDOG Stock
Big data is down and out, and dip-buyers must be cautious as they opt to catch a falling knife. Between PLTR and DDOG, Wall Street overwhelmingly favors Datadog.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this article, we'll use TipRanks' Comparison Tool to look at two stocks, Palantir (NYSE:PLTR) and Datadog (NASDAQ:DDOG), that are capable of big gains in 2023. Shares of PLTR and DDOG are now down 65% and 80%, respectively, from their all-time highs. Even after a decent third quarter (EPS of $0.23 vs. $0.16 consensus), DDOG stock cannot catch any relief.
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In this article, we'll use TipRanks' Comparison Tool to look at two stocks, Palantir (NYSE:PLTR) and Datadog (NASDAQ:DDOG), that are capable of big gains in 2023. Shares of PLTR and DDOG are now down 65% and 80%, respectively, from their all-time highs. Even after a decent third quarter (EPS of $0.23 vs. $0.16 consensus), DDOG stock cannot catch any relief.
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In this article, we'll use TipRanks' Comparison Tool to look at two stocks, Palantir (NYSE:PLTR) and Datadog (NASDAQ:DDOG), that are capable of big gains in 2023. Shares of PLTR and DDOG are now down 65% and 80%, respectively, from their all-time highs. Even after a decent third quarter (EPS of $0.23 vs. $0.16 consensus), DDOG stock cannot catch any relief.
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Shares of PLTR and DDOG are now down 65% and 80%, respectively, from their all-time highs. Conclusion: Analysts Expect More from DDOG Stock Big data is down and out, and dip-buyers must be cautious as they opt to catch a falling knife. In this article, we'll use TipRanks' Comparison Tool to look at two stocks, Palantir (NYSE:PLTR) and Datadog (NASDAQ:DDOG), that are capable of big gains in 2023.
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ebb1785a-eb46-4814-8b26-4ceb2e9bb4c7
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718424.0
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2022-12-08 00:00:00 UTC
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Notable Thursday Option Activity: UNVR, COF, DDOG
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DDOG
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-unvr-cof-ddog
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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 Univar Solutions Inc (Symbol: UNVR), where a total of 12,117 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 59.9% of UNVR's average daily trading volume over the past month of 2.0 million shares. Especially high volume was seen for the $25 strike put option expiring January 20, 2023, with 5,005 contracts trading so far today, representing approximately 500,500 underlying shares of UNVR. Below is a chart showing UNVR's trailing twelve month trading history, with the $25 strike highlighted in orange:
Capital One Financial Corp (Symbol: COF) saw options trading volume of 16,534 contracts, representing approximately 1.7 million underlying shares or approximately 59.6% of COF's average daily trading volume over the past month, of 2.8 million shares. Particularly high volume was seen for the $129.40 strike put option expiring January 20, 2023, with 2,848 contracts trading so far today, representing approximately 284,800 underlying shares of COF. Below is a chart showing COF's trailing twelve month trading history, with the $129.40 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) saw options trading volume of 27,649 contracts, representing approximately 2.8 million underlying shares or approximately 59.4% of DDOG's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $100 strike put option expiring December 16, 2022, with 2,811 contracts trading so far today, representing approximately 281,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for UNVR options, COF options, or DDOG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Socially Responsible Preferreds
Top Ten Hedge Funds Holding FL
PESX Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $100 strike put option expiring December 16, 2022, with 2,811 contracts trading so far today, representing approximately 281,100 underlying shares of DDOG. Below is a chart showing COF's trailing twelve month trading history, with the $129.40 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 27,649 contracts, representing approximately 2.8 million underlying shares or approximately 59.4% of DDOG's average daily trading volume over the past month, of 4.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for UNVR options, COF options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing COF's trailing twelve month trading history, with the $129.40 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 27,649 contracts, representing approximately 2.8 million underlying shares or approximately 59.4% of DDOG's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $100 strike put option expiring December 16, 2022, with 2,811 contracts trading so far today, representing approximately 281,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for UNVR options, COF options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing COF's trailing twelve month trading history, with the $129.40 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 27,649 contracts, representing approximately 2.8 million underlying shares or approximately 59.4% of DDOG's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $100 strike put option expiring December 16, 2022, with 2,811 contracts trading so far today, representing approximately 281,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for UNVR options, COF options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing COF's trailing twelve month trading history, with the $129.40 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 27,649 contracts, representing approximately 2.8 million underlying shares or approximately 59.4% of DDOG's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $100 strike put option expiring December 16, 2022, with 2,811 contracts trading so far today, representing approximately 281,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for UNVR options, COF options, or DDOG options, visit StockOptionsChannel.com.
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6983a197-7a34-466e-9e5a-8cdd585182ae
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718425.0
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2022-12-08 00:00:00 UTC
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Why Tech Stocks Popped on Thursday Afternoon
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DDOG
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https://www.nasdaq.com/articles/why-tech-stocks-popped-on-thursday-afternoon
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nan
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nan
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What happened
Tech stocks had a good day on Thursday as investors start to get more bullish on the industry's future. The Nasdaq Composite was up 0.9% at 2:20 p.m. ET, outpacing the Dow Jones Industrial Average and S&P 500 by a wide margin.
Shares of business-to-business software-as-a-service companies were some of the biggest winners. MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. Shares of each stock have pulled back slightly from their morning peak, but are still up big on the day.
So what
There's generally a "risk on" trade going on today, which is helping high-volatility stocks like these broadly. But there's some positive news in the industry as well. MongoDB reported earnings on Tuesday and revenue was up 47% in the quarter to $333.6 million, a sign that business customers are still increasing spending. But the company did lose $84.8 million, or $1.23 per share, so financials aren't where they need to be long term.
I see two trends that investors are looking at from tech stocks that's likely helping the market. One is that growth seems to be reasonably strong from recent earnings reports like MongoDB's. That's an indication that the market's reaction to both higher interest rates and recession fears may be overdone.
We have also seen many tech companies cut back on staff as investors demand better profitability. That may be something traders are speculating on today. MongoDB isn't doing that and has actually announced hiring plans, but the theme is still consistent. If companies can grow as they cut costs, it'll be good for the bottom line and stock prices long term.
You can see below that all five of these companies could use a little cost reduction to turn their losses into profits.
MDB Net Income (TTM) data by YCharts
Now what
Most tech stocks have been hammered this year, and it's not unusual to have big pops periodically on a piece of good news or speculation that the future is looking better than expected. But investors shouldn't get over excited about today's move.
You can see from the chart above that these five companies all have huge losses, and that's going to hang on their businesses even if revenue keeps growing. This is the balance growth stock investors need to consider heading into 2023.
It's very possible the drop in stock prices over the past year was overdone and tech stocks are on their way higher. But I think we will need to see more evidence that both revenue is growing and profitability it getting closer before this move will be sustainable. Stocks are up today, but the bottom line hasn't gotten any better, yet.
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Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian, Datadog, HubSpot, MongoDB, and Wix.com. 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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MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. What happened Tech stocks had a good day on Thursday as investors start to get more bullish on the industry's future. MongoDB reported earnings on Tuesday and revenue was up 47% in the quarter to $333.6 million, a sign that business customers are still increasing spending.
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MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. We have also seen many tech companies cut back on staff as investors demand better profitability. If companies can grow as they cut costs, it'll be good for the bottom line and stock prices long term.
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MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. It's very possible the drop in stock prices over the past year was overdone and tech stocks are on their way higher. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Travis Hoium has no position in any of the stocks mentioned.
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MongoDB (NASDAQ: MDB) jumped as much as 9%, Atlassian (NASDAQ: TEAM) was up 10.3% at its peak, Datadog (NASDAQ: DDOG) was up 10.2%, HubSpot (NYSE: HUBS) rose 6.6%, and Wix.com (NASDAQ: WIX) popped 5.4%. But there's some positive news in the industry as well. I see two trends that investors are looking at from tech stocks that's likely helping the market.
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718426.0
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2022-12-08 00:00:00 UTC
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Nasdaq 100 Movers: TMUS, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tmus-ddog
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In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. Year to date, Datadog has lost about 59.0% of its value.
And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 2.3%. T-Mobile US Inc is showing a gain of 25.3% looking at the year to date performance.
Two other components making moves today are Activision Blizzard, trading down 1.5%, and Atlassian, trading up 6.7% on the day.
VIDEO: Nasdaq 100 Movers: TMUS, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: TMUS, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 2.3%. T-Mobile US Inc is showing a gain of 25.3% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: TMUS, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. Year to date, Datadog has lost about 59.0% of its value.
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VIDEO: Nasdaq 100 Movers: TMUS, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 2.3%.
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VIDEO: Nasdaq 100 Movers: TMUS, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is T-Mobile US, trading down 2.3%. T-Mobile US Inc is showing a gain of 25.3% looking at the year to date performance.
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718427.0
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2022-12-08 00:00:00 UTC
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2 Top-Tech Stocks Ready for a Bull Run
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DDOG
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https://www.nasdaq.com/articles/2-top-tech-stocks-ready-for-a-bull-run-8
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This year has been a disappointment to say the least for investors. After a 13-year bull-market run driven primarily by the tech-heavy Nasdaq 100, growth stocks have tanked this year, and the index is down 30% in 2022.
Yet for every bear market that comes along -- and such corrections do occur with regularity -- a rally follows behind, eventually wiping away all the losses and going on to new heights. So it becomes a waiting game for patient investors who know to hang on through the tough times to get to better days tomorrow.
However, corrections also provide opportunities to pick up good companies with excellent growth potential that have been beaten down. Stand out tech stocks Broadcom (NASDAQ: AVGO) and Datadog (NASDAQ: DDOG) have lost at least 20% of their value this year, but Wall Street still expects them to grow some 50% or more this year and beyond.
Let's take a closer look at why each of these tech stocks are worth considering heading before we head into 2023.
Image source: Getty Images.
1. Broadcom
Broadcom is poised to benefit from the demand for and continued growth of high-speed networking and demand for public cloud services. Bank of America analyst Vivek Arya has said he expects demand to triple for such services by 2026, hitting $300 billion, even if there is near-term pressure on cloud-capital spending.
Broadcom's major end markets include networking, storage, broadband, and wireless, which itself sets up a major expansion catalyst. Over the next few years, the ongoing rollout of wireless-infrastructure upgrades to support 5G networks should be a big inflection point for the chipmaker.
What investors can rightfully admire about Broadcom is its prodigious cash-generating capabilities. In the third quarter, it produced $4.3 billion worth of free cash flow for margins of 51%. Free cash flow is the money left over after a company pays its bills; it can be used to further invest in the business or enhance shareholder returns.
Broadcom returned $3.2 billion to investors last quarter, with $1.7 billion coming from dividends and $1.5 billion from stock buybacks. It has been growing its dividend at a compounded annual rate of 24% over the past three years and 32% over the last five. Broadcom reports earnings soon, and investors should expect another increase as well. The current dividend yields a healthy 3.1% annually.
Wall Street forecasts the chipmaker will grow earnings at least 15% annually for the next five years. It has a one-year price target of as much as $775 per share, a 47% gain from where it trades today.
Image source: Getty Images.
2. Datadog
Cloud-based application monitoring and security company Datadog is another stock that is ready for a bull run. After all, businesses that had been steadily shifting their data into the cloud prior to the pandemic kicked it into overdrive during it.
Even so, as noted with Broadcom, spending by businesses for infrastructure enhancements is pressured by inflation, high interest rates, and a return to a more normalized state of affairs for consumers and businesses after the pandemic frenzy. The exponential growth of cloud offerings has eased up as resumption of in-person activities returns. Look at it as a pause rather than a cessation, yet Datadog is still growing.
In the third quarter, revenue grew 61% as the number of customers with more than $100,000 in annual recurring revenue (ARR) increased 44% to 2,600. Datadog has a number of clients with ARR in excess of $1 million. It's also seeing its customers respond to the numerous products it offers: 80% purchase two or more products; 40% use four or more; and 16% use six or more.
That comes from Datadog's significant research and development (R&D) expenditures, some $362 million in 2022, up 67% from last year. As more incremental revenue comes from existing customers increasing how much they spend with Datadog each quarter, it can devote more resources to R&D to create even more services to upsell to them, creating a virtuous circle of growth.
Datadog has become consistently profitable and enjoys significant margin expansion, though the market has struck down its stock roughly 58% this year. Wall Street anticipates it will grow earnings at an incredible 47% a year long term and sees stock-price appreciation of as much as 186% from current levels. This seems an excellent opportunity to ride a bull run higher.
10 stocks we like better than Broadcom
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 Broadcom 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 December 1, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends Broadcom. 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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Stand out tech stocks Broadcom (NASDAQ: AVGO) and Datadog (NASDAQ: DDOG) have lost at least 20% of their value this year, but Wall Street still expects them to grow some 50% or more this year and beyond. Bank of America analyst Vivek Arya has said he expects demand to triple for such services by 2026, hitting $300 billion, even if there is near-term pressure on cloud-capital spending. Free cash flow is the money left over after a company pays its bills; it can be used to further invest in the business or enhance shareholder returns.
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Stand out tech stocks Broadcom (NASDAQ: AVGO) and Datadog (NASDAQ: DDOG) have lost at least 20% of their value this year, but Wall Street still expects them to grow some 50% or more this year and beyond. Broadcom returned $3.2 billion to investors last quarter, with $1.7 billion coming from dividends and $1.5 billion from stock buybacks. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Stand out tech stocks Broadcom (NASDAQ: AVGO) and Datadog (NASDAQ: DDOG) have lost at least 20% of their value this year, but Wall Street still expects them to grow some 50% or more this year and beyond. Broadcom returned $3.2 billion to investors last quarter, with $1.7 billion coming from dividends and $1.5 billion from stock buybacks. Datadog Cloud-based application monitoring and security company Datadog is another stock that is ready for a bull run.
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Stand out tech stocks Broadcom (NASDAQ: AVGO) and Datadog (NASDAQ: DDOG) have lost at least 20% of their value this year, but Wall Street still expects them to grow some 50% or more this year and beyond. Wall Street forecasts the chipmaker will grow earnings at least 15% annually for the next five years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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718428.0
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2022-12-08 00:00:00 UTC
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2 Sensational Growth Stocks Set to Surge 92% to 111% According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-sensational-growth-stocks-set-to-surge-92-to-111-according-to-wall-street
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nan
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nan
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It's well documented that the best way to generate wealth over the long term is investing in the best stocks you can find and holding for years or even decades. That said, investing isn't necessarily for the faint of heart -- and 2022 has been a great example of that simple truth. Over the preceding 12 months, the Nasdaq Composite has been battered, down 29% from its high reached late last year, falling victim to the latest bear market.
That said, seasoned investors are well aware that with this economic cloud comes a silver lining: Historically speaking, good and bad stocks alike fall in tandem during a downturn. What results are some of the most compelling opportunities that many will see in their lifetimes, at least for investors with the resources and fortitude to ride out the gut-wrenching volatility.
In fact, Wall Street is surprisingly optimistic about the prospects of a couple of former high-flying growth stocks. Here are two contenders set to soar 92% to 111% over the coming 12 months, according to Wall Street.
Image source: Getty Images.
A guard dog for your critical systems
The digital transformation continues to gain steam, with more businesses adopting cloud computing than ever before. The strategic importance of keeping customer-facing systems up and running can't be overstated. Simply put, if customers can't reach you, they can't spend money. That's where Datadog (NASDAQ: DDOG) comes in. The company provides a single dashboard that monitors a variety of systems, notifying developers of a problem before it reaches critical mass. The system also provides early warning by detecting anomalies that could result in future problems.
The stock has tumbled 62% over the past year, but a quick check of the financial results shows a business that continues to prosper. In the third quarter, Datadog generated revenue that grew 61% year over year. At the same time, its adjusted earnings per share (EPS) surged 77%. The company also boasts both operating and free cash flow, which will sustain it during the ongoing downturn. Furthermore, Datadog's most valuable customers -- those that spend $100,000 in annual recurring revenue (ARR) climbed 44%, a sign of strength going forward.
I'd be remiss if I didn't point out Datadog's large and growing opportunity. The company generated revenue of $1 billion last year, which pales in comparison to its total addressable market (TAM) that management estimates will hit $62 billion by 2026.
Of the 31 analysts who cover Datadog, 26 rate the stock as a buy or strong buy -- and not one recommends selling. Most of Wall Street's finest are pretty upbeat on the company, which has a consensus 12-month price target that's 58% higher than today's stock price.
However, Bank of America analyst Koji Ikeda is much more optimistic than his Wall Street peers, assigning a price target of $135 and a buy rating on the shares. He cites the company's "best-in-breed portfolio of 15 products," as the reason for his enthusiasm. If his research is on the mark, the stock could surge 111% by this time next year, enriching shareholders along the way.
There's always a need for cybersecurity
In times of economic turmoil, sometimes all its takes is a quick check under the hood to determine if a company is in trouble or if it's merely suffering from a falling stock price. In fact, even during a downturn there are certain services that are indispensable, no matter how bad things get. One such area is that of cybersecurity. Most business managers are reluctant to try to save a few bucks and suffer the risk of hacks, system intrusions, and high-profile data breaches.
That's where CrowdStrike (NASDAQ: CRWD) comes in. The company's next-generation endpoint security business has a simple mission: "To protect our customers from breaches." CrowdStrike is well positioned to benefit from the ongoing threat, but the stock has fallen 51% from last year's high, which belies the company's impressive growth.
For its fiscal 2023 third quarter (ended Oct. 31), CrowdStrike's revenue climbed 53% year over year, fueled by subscription revenue that also grew 53%. This helped push its ARR up 54%, which illustrates the company's ongoing potential. At the same time, CrowdStrike's adjusted EPS of $0.40 surged 135%. CrowdStrike also boasts strong cash flow from operations and free cash flow, which will contribute to the durability of its business when times are tough.
Equally as exciting is the company's quickly growing TAM, which management expects to top $158 billion by 2026. Viewed in the context of its full-year fiscal 2022 revenue of $1.45 billion, the company has a long runway ahead.
Of the 38 analysts who cover CrowdStrike, 37 rate the stock as a buy or strong buy -- and not a single one recommends selling. Most analysts are pretty bullish on the company, which boasts a consensus 12-month price target that's 55% higher than its current price.
One analyst believes his Wall Street peers are underestimating CrowdStrike. Evercore ISI analyst Peter Levine has a $250 price target and an outperform (buy) rating on the shares. He cites the company's "hyper-growth profile coupled with profitability" as well as its "best-in-class" cash flow margins. If his analysis is correct, CrowdStrike stock could surge 111% over the coming 12 months.
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 December 1, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Danny Vena has positions in CrowdStrike and Datadog. 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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That's where Datadog (NASDAQ: DDOG) comes in. That said, seasoned investors are well aware that with this economic cloud comes a silver lining: Historically speaking, good and bad stocks alike fall in tandem during a downturn. However, Bank of America analyst Koji Ikeda is much more optimistic than his Wall Street peers, assigning a price target of $135 and a buy rating on the shares.
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That's where Datadog (NASDAQ: DDOG) comes in. Of the 31 analysts who cover Datadog, 26 rate the stock as a buy or strong buy -- and not one recommends selling. CrowdStrike also boasts strong cash flow from operations and free cash flow, which will contribute to the durability of its business when times are tough.
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That's where Datadog (NASDAQ: DDOG) comes in. CrowdStrike is well positioned to benefit from the ongoing threat, but the stock has fallen 51% from last year's high, which belies the company's impressive growth. Of the 38 analysts who cover CrowdStrike, 37 rate the stock as a buy or strong buy -- and not a single one recommends selling.
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That's where Datadog (NASDAQ: DDOG) comes in. There's always a need for cybersecurity In times of economic turmoil, sometimes all its takes is a quick check under the hood to determine if a company is in trouble or if it's merely suffering from a falling stock price. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them!
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718429.0
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2022-12-07 00:00:00 UTC
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2 Unstoppable Growth Stocks That Could Soar 141% and 144% From Their 52-Week Lows, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-unstoppable-growth-stocks-that-could-soar-141-and-144-from-their-52-week-lows-according
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Many growth stocks have dropped sharply this year, reflecting fears that red-hot inflation and rising interest rates could trigger a recession. For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows.
However, some analysts on Wall Street see that sell-off as a buying opportunity. Goldman Sachs analyst Kash Rangan has a price target of $162 per share on Datadog, which implies 144% upside from its 52-week low. And Credit Suisse analyst Phil Winslow has a price target of $275 per share on Zscaler, which implies 141% from its 52-week low.
As a caveat, investors should never rely too much on short-term price targets. They are little more than glorified guesses, and they can change at the drop of a dime. That said, Datadog and Zscaler are backed by compelling long-term investment theses. Here's what investors should know.
Datadog: A software vendor that leads the application performance monitoring market
Datadog provides observability and cybersecurity software. Its portfolio comprises more than a dozen products that provide customers with real-time visibility across their applications, networks, and infrastructure, helping them keep their IT environments performant and secure. Datadog also drives enterprise agility. Its platform improves collaboration among development and operations teams by providing them with a shared view of applications and the supporting infrastructure.
Customers also benefit from more than 600 integrations that accelerate adoption, and a powerful artificial intelligence (AI) engine that automatically surfaces predictive insights, detects anomalies, and handles root cause analysis. Those attributes, coupled with the broad utility of its platform, have helped Datadog carve out a strong presence in several observability verticals.
In June, IT research specialist Gartner ranked Datadog as a leader in application performance monitoring for the second consecutive year, citing its broad product offering and powerful AI engine as key strengths. More recently, software research company G2 recognized Datadog as a leader in log management, database monitoring, and cloud infrastructure monitoring.
Not surprisingly, the company is growing like wildfire. In the third quarter, Datadog increased its customer count 27% to 22,200, and the average customers increased their spending by more than 30% over the past year. In turn, third-quarter revenue soared 61% to $437 million and free cash flow jumped 18% to $67.1 million.
Turning to the future, shareholders have good reason to be bullish. Datadog is a key enabler of digital transformation, meaning it should benefit from the proliferation of enterprise software and the continued adoption of cloud computing. In fact, management says its market opportunity will increase from $41 billion in 2022 to $62 billion by 2026.
With that in mind, shares currently trade at 14.8 times sales, a bargain compared to the three-year average of 38.8 times sales. That creates a worthwhile buying opportunity, though investors shouldn't bank on triple-digit returns in the near term.
Zscaler: A cybersecurity company that provides unparalleled network protection
Businesses have traditionally secured sensitive data by building firewalls around their corporate networks, but cloud computing and hybrid work have fundamentally changed the IT landscape. Many applications now live in the cloud, and employees often access corporate resources from personal devices on unsecured networks.
Zscaler modernizes the corporate network with its security service edge (SSE), a cloud platform that safely connects users to applications and the open web from any device or location. In fact, Zscaler operates the largest security cloud in the world. It handles 250 billion requests and gathers 300 trillion security signals on a daily basis, each of which makes its artificial intelligence models better at detecting threats. That unmatched scale allows Zscaler to provide better protection that other vendors.
Not surprisingly, Zscaler is growing at a tremendous pace. In the most recent quarter, revenue climbed 54% to $356 million and non-GAAP earnings soared 107% to $0.29 per diluted share. Meanwhile, remaining performance obligation (a leading indicator of future sales) soared 57% during the quarter, implying strong top-line growth in the coming quarters.
On that note, shareholders have good reason to be bullish on this cybersecurity company. Management values its addressable market at $72 billion, and Gartner has recognized Zscaler as a leader for 11 consecutive years and counting. That puts the company in a great position, as 80% of enterprises are expected to adopt SSE architecture by 2025, up from 20% in 2021.
Shares currently trade at 14.1 times sales, a bargain compared to the three-year average of 37.2 times sales. For that reason, this stock is a smart buy, though the odds of triple-digit returns in the near term are slim at best.
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 December 1, 2022
Trevor Jennewine has positions in Zscaler. The Motley Fool has positions in and recommends Datadog, Goldman Sachs Group, 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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For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows. Customers also benefit from more than 600 integrations that accelerate adoption, and a powerful artificial intelligence (AI) engine that automatically surfaces predictive insights, detects anomalies, and handles root cause analysis. In June, IT research specialist Gartner ranked Datadog as a leader in application performance monitoring for the second consecutive year, citing its broad product offering and powerful AI engine as key strengths.
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For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows. Datadog: A software vendor that leads the application performance monitoring market Datadog provides observability and cybersecurity software. In June, IT research specialist Gartner ranked Datadog as a leader in application performance monitoring for the second consecutive year, citing its broad product offering and powerful AI engine as key strengths.
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For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows. Datadog: A software vendor that leads the application performance monitoring market Datadog provides observability and cybersecurity software. Zscaler: A cybersecurity company that provides unparalleled network protection Businesses have traditionally secured sensitive data by building firewalls around their corporate networks, but cloud computing and hybrid work have fundamentally changed the IT landscape.
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For instance, Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) have seen their share prices fall 64% and 67%, respectively, leaving both stocks near 52-week lows. Datadog: A software vendor that leads the application performance monitoring market Datadog provides observability and cybersecurity software. Zscaler: A cybersecurity company that provides unparalleled network protection Businesses have traditionally secured sensitive data by building firewalls around their corporate networks, but cloud computing and hybrid work have fundamentally changed the IT landscape.
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718430.0
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2022-12-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights Airbnb, Datadog, Fortinet, Paycom Software and VeriSign
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DDOG
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-airbnb-datadog-fortinet-paycom-software-and-verisign
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For Immediate Release
Chicago, IL – December 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Fortinet Inc. FTNT, Paycom Software Inc. PAYC and VeriSign Inc. VRSN.
Here are highlights from Monday’s Analyst Blog:
5 Tech Majors to Buy on the Dip for Gains in 2023
Just four weeks of trading are left to complete a terrible 2022, in which the technology sector has suffered the most. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, has suffered since the beginning of this year as most market participants were extremely concerned about the sector’s overvaluation in the last two years.
As 2022 progressed, 40-year high inflation in the United States, Fed’s ultra-hawkish monetary tightening with a record-high interest rate to combat inflation and concerns about a near-term recession resulted in a sharp decline in the technology sector’s valuation.
The Technology Select Sector SPDR — one of the 11 broad sectors of the S&P 500 Index — has tumbled 22.2% year to date. The tech-heavy Nasdaq Composite Index has plunged 26.7% year to date and is currently in a bear market.
Consequently, the technology sector is no longer overvalued. Moreover, it seems that peak inflation is behind us as indicated by several measures of inflation in October. Fed Chairman Jerome Powell’s recent comment about a possible lowering of the magnitude of interest rate hike in December FOMC meeting will be highly advantageous for this sector.
At this stage, it should be prudent to invest in large-cap (market capital > $20 billion) technology stocks with a favorable Zacks Rank for gains in 2023.
Technology is the Best Bet for the Long Term
The recent meltdown of the technology sector is a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech products has been a catalyst for the sector in an otherwise tough environment. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall space.
Tech Has Vast Potential — Buy on the Dip
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication and not data serve most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. People were not entirely used to digital platforms for their office work (work from home), ordering food and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
The countries that are more digitized have been able to minimize their losses during the pandemic. These are major lessons for other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of online platforms.
Our Top Picks
We have narrowed our search to five large-cap technology stocks with attractive valuations. The stocks have strong growth potential for 2023 and have seen positive earnings estimate revision for the next year in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AirbnbInc. is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB’s Nights & Experience bookings. Additionally, growth in average daily rates and gross booking value is a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected earnings growth rate of 15.6% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 6.8% over the last 30 days. The stock price of ABNB is currently trading at a 47.3% discount from its 52-week high.
Datadog Inc. is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected earnings growth rate of 17.4% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% over the last 30 days. The stock price of DDOG is currently trading at a 59.9% discount from its 52-week high.
Fortinet Inc. is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. FTNT is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings.
Moreover, continued deal wins, especially those of high value, are solid drivers. Higher IT spending on cybersecurity is expected to aid Fortinet grow faster than the security market. Also, focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for FTNT.
Fortinet has an expected earnings growth rate of 20.6% for the next year. The Zacks Consensus Estimate for next-year earnings improved 6.2% over the last 30 days. The stock price of FTNT is currently trading at a 27.9% discount from its 52-week high.
PaycomSoftware Inc. is a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes.
PAYC’s differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Further, solutions like Ask Here and Manager on-the-Go, both focusing on employee usage and efficiency, are tailwinds.
Paycom has an expected earnings growth rate of 23.3% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 0.6% over the last 30 days. The stock price of PAYC is currently trading at a 23.2% discount to its 52-week high.
VeriSign Inc. ended the third quarter of 2022 with 174.2 million .com and .net domain name registrations, up 1.2% year over year. VRSN’s performance is being driven by growth in .com and .net domain name registrations.
VeriSign is expected to benefit from growing Internet consumption globally. VRSN continues to expand its critical infrastructure to tap the growing demand for DNS navigation services in industries like commerce, education and healthcare.
VeriSign has an expected earnings growth rate of 11.2% for the next year. The Zacks Consensus Estimate for next-year earnings improved 0.1% over the last 30 days. The stock price of VRSN is currently trading at a 21.4% discount to its 52-week high.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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VeriSign, Inc. (VRSN) : Free Stock Analysis Report
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
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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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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Fortinet Inc. FTNT, Paycom Software Inc. PAYC and VeriSign Inc. VRSN. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Fortinet Inc. FTNT, Paycom Software Inc. PAYC and VeriSign Inc. VRSN. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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.
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Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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. Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Fortinet Inc. FTNT, Paycom Software Inc. PAYC and VeriSign Inc. VRSN. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Fortinet Inc. FTNT, Paycom Software Inc. PAYC and VeriSign Inc. VRSN. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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7c508ef5-6648-4a58-810d-a819892cdac4
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718431.0
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2022-12-06 00:00:00 UTC
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2 Rare Buying Opportunities for Growth Stock Investors in a Nasdaq Bear Market
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DDOG
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https://www.nasdaq.com/articles/2-rare-buying-opportunities-for-growth-stock-investors-in-a-nasdaq-bear-market
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nan
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nan
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Economic uncertainty hit the stock market like a wrecking ball this year. The Nasdaq Composite is currently 29% off its high, putting the tech-heavy index deep in bear market territory. During that downturn, PayPal Holdings (NASDAQ: PYPL) and Datadog (NASDAQ: DDOG) have seen their share prices plunge 76% and 62%, respectively, from all-time highs, marking their sharpest declines at any point in history.
That creates a rare buying opportunity for growth stock investors.
1. PayPal: Consumer adoption of digital wallets is on the rise
The PayPal brand is synonymous with digital payments. Unlike traditional payment processors, PayPal operates a two-sided network that provides financial services to both businesses and consumers. That advantage helped the company build trust on both sides of transactions, supercharging the network effect that powers its business.
In fact, according to CEO Dan Schulman, consumers are two times more likely to shop when a PayPal button is present on the e-commerce site. Similarly, research from Nielsen suggests that PayPal drives higher order values and more repeat purchases for merchants. Those qualities led to strong adoption. In fact, PayPal is the most accepted digital wallet in North America and Europe, and it ranked as the most downloaded mobile finance app worldwide during the first half of 2022, according to Apptopia.
Admittedly, the company struggled with various headwinds throughout the year, including the loss of eBay as a customer, the inflation-fueled deceleration in consumer spending, and the impact of unfavorable foreign exchange rates. Yet PayPal turned in a solid third-quarter report. Revenue climbed 11% to $6.8 billion and free cash flow soared 37% to $1.8 billion.
Looking ahead, investors have good reason to believe PayPal could further accelerate growth. The company recently deepened its ties with Apple by adding support for iPhone Tap-to-Pay technology to the PayPal and Venmo iOS apps. Consumers will also be able to add their PayPal- and Venmo-branded payment cards to their Apple wallets next year.
More broadly, Juniper Research says the number of digital wallet users will grow 53% to 5.2 billion worldwide by 2026. That trend should be a major tailwind for PayPal, given its strong market presence. And with shares trading at 3.2 times sales -- near the cheapest valuation since PayPal was spun off from eBay in 2015 -- investors should jump on this rare buying opportunity.
2. Datadog: Digital transformation creates a need for observability software
Modern enterprises depend on numerous digital technologies, from software and servers to cloud services. Datadog keeps those systems running smoothly. Its platform gathers and processes signals in real-time from across enterprise IT environments, helping customers improve the performance and security of their applications, networks, and infrastructure.
Like most great tech companies, Datadog has showcased a remarkable capacity for innovation over the years. In 2018, it became the first to combine the three pillars of observability (i.e. metrics, traces, and logs) on a single platform, giving customers unparalleled visibility across their software-powered systems. Since then, Datadog has continued to expand its platform, adding tools for user experience monitoring, cloud security, and incident management, as well as a powerful artificial intelligence engine that surfaces proactive alerts and automates root cause analysis.
The breadth of the Datadog platform is a key advantage, and it comes with over 600 prebuilt integrations that simplify adoption for customers. Those attributes have helped the company carve out a strong presence in observability software. In fact, IT research specialist Gartner named Datadog a leader in application performance monitoring in June. Similarly, software research marketplace G2 recognized Datadog as a leader in database monitoring and cloud infrastructure monitoring in its Fall 2022 report.
In the third quarter Datadog increased its customer count 27% to 22,200, and the company has maintain a net retention rate above 130% for the last 21 quarters, meaning the average customer is consistently spending over 30% more each year. Driven by that compounding dynamic, third-quarter revenue rose 61% to $437 million and non-GAAP earnings soared 77% to $0.23 per diluted share. Better yet, investors should expect that momentum to continue in the coming years.
As a key enabler of digital transformation, Datadog's software should only become more important over time, as enterprises continue to adopt more software and cloud services. In fact, management puts its market opportunity at $62 billion by 2026, up from $41 billion in 2022. And with shares trading at a reasonable 15.7 times sales -- a bargain compared to a three-year average of 38.8 times sales -- now is a good time to buy this stock.
10 stocks we like better than PayPal
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Trevor Jennewine has positions in PayPal. The Motley Fool has positions in and recommends Apple, Datadog, and PayPal. The Motley Fool recommends Gartner and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay. 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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During that downturn, PayPal Holdings (NASDAQ: PYPL) and Datadog (NASDAQ: DDOG) have seen their share prices plunge 76% and 62%, respectively, from all-time highs, marking their sharpest declines at any point in history. In fact, PayPal is the most accepted digital wallet in North America and Europe, and it ranked as the most downloaded mobile finance app worldwide during the first half of 2022, according to Apptopia. Admittedly, the company struggled with various headwinds throughout the year, including the loss of eBay as a customer, the inflation-fueled deceleration in consumer spending, and the impact of unfavorable foreign exchange rates.
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During that downturn, PayPal Holdings (NASDAQ: PYPL) and Datadog (NASDAQ: DDOG) have seen their share prices plunge 76% and 62%, respectively, from all-time highs, marking their sharpest declines at any point in history. That creates a rare buying opportunity for growth stock investors. Datadog: Digital transformation creates a need for observability software Modern enterprises depend on numerous digital technologies, from software and servers to cloud services.
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During that downturn, PayPal Holdings (NASDAQ: PYPL) and Datadog (NASDAQ: DDOG) have seen their share prices plunge 76% and 62%, respectively, from all-time highs, marking their sharpest declines at any point in history. PayPal: Consumer adoption of digital wallets is on the rise The PayPal brand is synonymous with digital payments. Datadog: Digital transformation creates a need for observability software Modern enterprises depend on numerous digital technologies, from software and servers to cloud services.
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During that downturn, PayPal Holdings (NASDAQ: PYPL) and Datadog (NASDAQ: DDOG) have seen their share prices plunge 76% and 62%, respectively, from all-time highs, marking their sharpest declines at any point in history. That creates a rare buying opportunity for growth stock investors. Similarly, software research marketplace G2 recognized Datadog as a leader in database monitoring and cloud infrastructure monitoring in its Fall 2022 report.
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c0ae44c5-0a11-4e45-be4b-1ff060d14199
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718432.0
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2022-12-05 00:00:00 UTC
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Why Snowflake, Datadog, and MongoDB Fell Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-datadog-and-mongodb-fell-today
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nan
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nan
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What happened
Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. ET.
There wasn't much company-specific news today, although Snowflake reported earnings last week, and MongoDB will report tomorrow. Rather, today's moves likely had to do with fears that inflation may not have fallen as much as hoped last month. Friday's strong jobs and wages report, combined with today's stronger-than-expected services Purchasing Managers' Index (PMI) reading, showed the economy may be stronger than generally thought -- surprising, especially since recent financial results and guidance in the software industry have been less than stellar.
Paradoxically, today's strong economic numbers are bad for longer-duration growth stocks, such as these three.
So what
This morning, the U.S. Institute for Supply Management (ISM) released its November data for non-manufacturing PMI. The reading came in at 56.5, increasing from the 54.5 reading in October and higher than the expected 53.3 reading.
This is yet another "good news is bad news" event, as was last week's stronger-than-expected jobs and wages report. Stronger demand for services likely means the Federal Reserve will have to keep on raising interest rates in an effort to tame inflation, whereas many had hoped inflation may be on its way down. In response, the yield on the 10-year Treasury bond rose about 10 basis points today, to 3.6% as of this writing, after falling relatively hard over the past month as investors expected softening economic activity and inflation.
High-growth but unprofitable stocks are especially sensitive to long-term bond yields, because the bulk of these companies' earnings are far out into the future. Thus, it's no surprise to see growth stocks falling today.
These cloud software stocks may also be falling because, despite stronger-than-expected overall services activity, many top software stocks that have reported this earnings season are providing slower-than-expected growth expectations. For instance, shares of Snowflake initially plunged after the company's earnings report last week, before recovering somewhat. Management said it is seeing some slowing as enterprises look to trim costs ahead of a potential recession next year, and it noted pockets of weakness, particularly outside the United States and in small and medium-sized businesses.
So the software sector, which boomed during digitization efforts during the pandemic, may actually be slowing, despite a pickup in overall services activity as seen in the PMI. It's a confusing picture, and potentially a bad omen for cloud stocks that trade at high multiples.
Now what
Despite their year-to-date sell-offs, Snowflake, Datadog, and MongoDB still aren't "cheap" by traditional metrics. Even though they are down between 56% and 70% on the year, these stocks still trade at 23, 15, and 9 times sales, respectively.
Data by YCharts.
While the three companies are in the top of their class in their respective niches, their shares may still face challenges as long as this overhang of services inflation and higher interest rates persists. It will be very hard to identify a bottom in these stocks, especially as the businesses can't be valued based on profits yet.
Still, while I'm not convinced these stocks are done selling off, growth investors should have each on their watch lists. Snowflake is a clear industry leader in cloud data management, and the price is nearly back down to its IPO price of $120. Datadog has posted fantastic growth as a leader in cloud observability, helping enterprises maintain their software applications and identify latency or security issues. And MongoDB is a disruptive leader in a new kind of database that is catching on in the new era of unstructured data, as enterprises look to do more with disparate forms of data for corporate decision-making.
But what is the outlook for the stocks (as opposed to the businesses)? It's a more mixed picture, as valuation is very much a concern in a higher-rate environment. Unfortunately, shares of Snowflake, Datadog, and MongoDB will likely be volatile in the near term, as macro data is released and the expectations for Federal Reserve interest rate hikes change.
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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 Datadog, MongoDB, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. Friday's strong jobs and wages report, combined with today's stronger-than-expected services Purchasing Managers' Index (PMI) reading, showed the economy may be stronger than generally thought -- surprising, especially since recent financial results and guidance in the software industry have been less than stellar. In response, the yield on the 10-year Treasury bond rose about 10 basis points today, to 3.6% as of this writing, after falling relatively hard over the past month as investors expected softening economic activity and inflation.
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What happened Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. There wasn't much company-specific news today, although Snowflake reported earnings last week, and MongoDB will report tomorrow. Friday's strong jobs and wages report, combined with today's stronger-than-expected services Purchasing Managers' Index (PMI) reading, showed the economy may be stronger than generally thought -- surprising, especially since recent financial results and guidance in the software industry have been less than stellar.
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What happened Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. These cloud software stocks may also be falling because, despite stronger-than-expected overall services activity, many top software stocks that have reported this earnings season are providing slower-than-expected growth expectations. 10 stocks we like better than Snowflake When our award-winning analyst team has a stock tip, it can pay to listen.
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What happened Shares of enterprise software giants Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) were plunging on Monday, down by 8.7%, 6.4%, and 9.4%, respectively, as of 3:06 p.m. These cloud software stocks may also be falling because, despite stronger-than-expected overall services activity, many top software stocks that have reported this earnings season are providing slower-than-expected growth expectations. Unfortunately, shares of Snowflake, Datadog, and MongoDB will likely be volatile in the near term, as macro data is released and the expectations for Federal Reserve interest rate hikes change.
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45d6c6f6-3967-4c89-8a0b-2ba5fc7fe280
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718433.0
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2022-12-05 00:00:00 UTC
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Earnings Estimates Rising for Datadog (DDOG): Will It Gain?
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DDOG
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https://www.nasdaq.com/articles/earnings-estimates-rising-for-datadog-ddog%3A-will-it-gain
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nan
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nan
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Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Datadog, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $0.18 per share for the current quarter, which represents a year-over-year change of -10%.
The Zacks Consensus Estimate for Datadog has increased 7.62% over the last 30 days, as nine estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.89 per share represents a change of +85.42% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, nine estimates have moved up for Datadog versus no negative revisions. This has pushed the consensus estimate 27.01% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Datadog currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Datadog because of its solid estimate revisions, as evident from the stock's 6.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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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Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price.
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Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Datadog, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
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Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
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Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Datadog, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
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ca8e6578-1742-47f9-96bd-4e4d50731cc6
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718434.0
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2022-12-05 00:00:00 UTC
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2 Top Growth Stocks Down 61% and 75% to Buy Before They Rebound
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DDOG
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https://www.nasdaq.com/articles/2-top-growth-stocks-down-61-and-75-to-buy-before-they-rebound
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nan
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nan
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As investors, maintaining a long-term focus is never more important than when the stock market is in decline. High-quality companies are often swept up in broad-based selling, even if their underlying businesses are firing on all cylinders.
That's certainly the case for the two technology companies I'm about to share. Both of them have raised their financial forecasts throughout 2022, while much of the tech sector has slashed its guidance amid the weakening economic environment.
The stocks are down 61% and 75% from their all-time highs, but there are some early signs that an improvement in economic conditions could be on the horizon. So with 2023 around the corner, this might be a great buying opportunity.
Datadog just increased its sales forecast for a third time
2022 is almost over, and Datadog (NASDAQ: DDOG) is set to end the year on a high. The company just reported its financial results for the third quarter (ended Sept. 30), and they were so strong that it raised its full-year revenue forecast yet again.
Datadog is cementing its position as an essential tool for cloud monitoring. What does that mean? Businesses are increasingly reliant on cloud computing technology to run their operations and to drive their touch points with customers. In other words, they're moving these things online.
In the physical world, gaining a sense for customers' satisfaction might be as simple as assessing their attitude toward their experience in-store, but that's a little more complicated in the digital world where consumers are faceless. Datadog's platform helps businesses ensure their digital sales channels are operating at peak performance for all customers, and rapidly alerts them to technical issues before they might lead to poor experiences or dissatisfaction. It can serve a broad range of industries, too, from retail to financial services.
Over the first nine months of 2022, Datadog's revenue surged by more than 71% compared to the same period last year, to $1.2 billion. Its full-year revenue guidance has increased by over $100 million since the beginning of 2022, bucking the widespread slowdown in the tech sector. The company is also very close to profitability, with a net loss of just $21 million year to date. That should give investors some comfort, because despite investing heavily in growth, its bottom line is still moving in the right direction.
The disparity between the strong performance of Datadog's business and its stock price, which is down 61% from its all-time high, could spell opportunity for investors. For that reason, it might be worth buying here ahead of 2023.
Confluent is a streaming powerhouse of a different kind
When it comes to streaming, most people think of television shows, movies, or music. The technology has given us access to content on demand, and in real time. But Confluent (NASDAQ: CFLT) streams data, and while that sounds less entertaining, the company works tirelessly in the background to make your online experiences are seamless.
For example, data streaming is at the heart of Walmart's operations. The retail giant has a real-time replenishment system powered by the technology, which ingests 500 million events per day from 1 million online transactions. What does that mean? Inventory for every product Walmart carries is monitored and updated in real time across every sales channel, so it never runs out of stock. Every time you find what you need in-store or online at Walmart, you likely have data streaming to thank.
Similarly, but more directly, consider a sports betting application. Each time a punter places a bet during a live game, data streaming is the mechanism that allows real-time odds to be rapidly calculated and fed onto their screen.
With the onset of cloud computing, this technology is becoming more commonplace. Consumers constantly demand faster digital experiences and Confluent is the ultimate facilitator, because it harnesses the Apache Kafka data streaming software that is used by 80% of the Fortune 100 companies.
The company has a rapidly growing pipeline of work, with $663.5 million in remaining performance obligations as of the third quarter. That number was up 72% year over year, and it's a key metric to watch because it typically converts into revenue over time. Speaking of revenue, Confluent has generated $417 million in the first nine months of 2022 and, like Datadog, it has regularly increased its full-year guidance.
The company serves 921 customers that spend at least $100,000 annually, and the number continues to grow with each passing quarter. Confluent stock has declined by 75% from its all-time high, but the demand for data streaming is only going to trend in one direction in the years to come. Given the company's strong results, this is a great opportunity going into 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 December 1, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Confluent, Datadog, and Walmart. 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 just increased its sales forecast for a third time 2022 is almost over, and Datadog (NASDAQ: DDOG) is set to end the year on a high. Datadog's platform helps businesses ensure their digital sales channels are operating at peak performance for all customers, and rapidly alerts them to technical issues before they might lead to poor experiences or dissatisfaction. Each time a punter places a bet during a live game, data streaming is the mechanism that allows real-time odds to be rapidly calculated and fed onto their screen.
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Datadog just increased its sales forecast for a third time 2022 is almost over, and Datadog (NASDAQ: DDOG) is set to end the year on a high. Businesses are increasingly reliant on cloud computing technology to run their operations and to drive their touch points with customers. Datadog's platform helps businesses ensure their digital sales channels are operating at peak performance for all customers, and rapidly alerts them to technical issues before they might lead to poor experiences or dissatisfaction.
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Datadog just increased its sales forecast for a third time 2022 is almost over, and Datadog (NASDAQ: DDOG) is set to end the year on a high. The disparity between the strong performance of Datadog's business and its stock price, which is down 61% from its all-time high, could spell opportunity for investors. Confluent stock has declined by 75% from its all-time high, but the demand for data streaming is only going to trend in one direction in the years to come.
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Datadog just increased its sales forecast for a third time 2022 is almost over, and Datadog (NASDAQ: DDOG) is set to end the year on a high. The company just reported its financial results for the third quarter (ended Sept. 30), and they were so strong that it raised its full-year revenue forecast yet again. For example, data streaming is at the heart of Walmart's operations.
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2022-12-05 00:00:00 UTC
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5 Technology Bigwigs to Buy on the Dip for Gains in 2023
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DDOG
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https://www.nasdaq.com/articles/5-technology-bigwigs-to-buy-on-the-dip-for-gains-in-2023
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Just four weeks of trading are left to complete a terrible 2022, in which the technology sector has suffered the most. The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, has suffered since the beginning of this year as most market participants were extremely concerned about the sector’s overvaluation in the last two years.
As 2022 progressed, 40-year high inflation in the United States, Fed’s ultra-hawkish monetary tightening with a record-high interest rate to combat inflation and concerns about a near-term recession resulted in a sharp decline in the technology sector’s valuation.
The Technology Select Sector SPDR (XLK) — one of the 11 broad sectors of the S&P 500 Index — has tumbled 22.2% year to date. The tech-heavy Nasdaq Composite Index has plunged 26.7% year to date and is currently in a bear market.
Consequently, the technology sector is no longer overvalued. Moreover, it seems that peak inflation is behind us as indicated by several measures of inflation in October. Fed Chairman Jerome Powell’s recent comment about a possible lowering of the magnitude of interest rate hike in December FOMC meeting will be highly advantageous for this sector.
At this stage, it should be prudent to invest in large-cap (market capital > $20 billion) technology stocks with a favorable Zacks Rank for gains in 2023.
Technology is the Best Bet for the Long Term
The recent meltdown of the technology sector is a temporary phenomenon. The fundamentals of this sector are rock solid. We must not forget that the growing demand for hi-tech products has been a catalyst for the sector in an otherwise tough environment. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall space.
Tech Has Vast Potential — Buy on the Dip
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication and not data serve most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. People were not entirely used to digital platforms for their office work (work from home), ordering food and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
The countries that are more digitized have been able to minimize their losses during the pandemic. These are major lessons for other countries. Even those who are less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now feeling the massive advantage of online platforms.
Our Top Picks
We have narrowed our search to five large-cap technology stocks with attractive valuations. The stocks have strong growth potential for 2023 and have seen positive earnings estimate revision for the next year in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
THe chart below shows the price performance of our five picks in the past monthx.
Image Source: Zacks Investment Research
Airbnb Inc. ABNB is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB’s Nights & Experience bookings. Additionally, growth in average daily rates and gross booking value is a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected earnings growth rate of 15.6% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 6.8% over the last 30 days. The stock price of ABNB is currently trading at a 47.3% discount from its 52-week high.
Datadog Inc. DDOG is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected earnings growth rate of 17.4% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% over the last 30 days. The stock price of DDOG is currently trading at a 59.9% discount from its 52-week high.
Fortinet Inc. FTNT is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. FTNT is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings.
Moreover, continued deal wins, especially those of high value, are solid drivers. Higher IT spending on cybersecurity is expected to aid Fortinet grow faster than the security market. Also, focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for FTNT.
Fortinet has an expected earnings growth rate of 20.6% for the next year. The Zacks Consensus Estimate for next-year earnings improved 6.2% over the last 30 days. The stock price of FTNT is currently trading at a 27.9% discount from its 52-week high.
Paycom Software Inc. PAYC is a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes.
PAYC’s differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Further, solutions like Ask Here and Manager on-the-Go, both focusing on employee usage and efficiency, are tailwinds.
Paycom has an expected earnings growth rate of 23.3% for the next year. The Zacks Consensus Estimate for next-year earnings has improved 0.6% over the last 30 days. The stock price of PAYC is currently trading at a 23.2% discount to its 52-week high.
VeriSign Inc. VRSN ended the third quarter of 2022 with 174.2 million .com and .net domain name registrations, up 1.2% year over year. VRSN’s performance is being driven by growth in .com and .net domain name registrations.
VeriSign is expected to benefit from growing Internet consumption globally. VRSN continues to expand its critical infrastructure to tap the growing demand for DNS navigation services in industries like commerce, education and healthcare.
VeriSign has an expected earnings growth rate of 11.2% for the next year. The Zacks Consensus Estimate for next-year earnings improved 0.1% over the last 30 days. The stock price of VRSN is currently trading at a 21.4% discount to its 52-week high.
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
VeriSign, Inc. (VRSN) : Free Stock Analysis Report
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
Paycom Software, Inc. (PAYC) : 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 Inc. DDOG is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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 Inc. DDOG is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
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Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : 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 Inc. DDOG is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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Datadog Inc. DDOG is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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2022-12-04 00:00:00 UTC
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3 Stocks Billionaires Have Bought Ahead of 2023
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DDOG
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https://www.nasdaq.com/articles/3-stocks-billionaires-have-bought-ahead-of-2023
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The stock market hasn't been easy to navigate this year. There haven't been many places to hide, particularly for technology investors, with the Nasdaq-100 index shedding 27% of its value year to date. So, what should an investor do at a time like this?
First, it's critical to maintain a long-term focus. History is proof that the broader market always recovers to new highs, given enough time. But investors can also watch what the professionals are buying, particularly those who have achieved billionaire status. That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year.
Betting big on America's largest company
Anthony Di Pizio (Apple): He's widely considered as one of the greatest investors ever, so it seems fitting that Warren Buffett, through his investment company Berkshire Hathaway, would own shares in Apple, America's largest company. But to take things a step further, Apple has become Berkshire's biggest holding and it has regularly increased its position throughout the year.
Berkshire was most recently a buyer of Apple in the second quarter of 2022, and it now holds 915 million shares, a stake worth over $135 billion. In the recent third quarter, Berkshire also made a first-time bet on Taiwan Semiconductor Manufacturing stock -- curiously, Apple is that company's largest customer. It uses Taiwan Semi to manufacture the chips that power its portfolio of devices, so the move could be interpreted as an indirect bet on Apple's success.
But what is it about Apple that Buffett finds so attractive? The company sells products that consumers love, it's highly profitable, and it has returned a significant amount of money to shareholders, which flows directly into Berkshire's coffers. In fact, Apple returned over $104 billion to shareholders during fiscal 2022 (ended Sept. 24) alone through dividends and stock buybacks.
The company's fiscal 2022 results were a little sluggish in aggregate thanks to the slowing economy, with revenue growing by just 7.8% year over year. But there was some robust growth beneath the surface during the fourth quarter specifically, with Mac sales jumping by 25%, wearables by 9.8%, and iPhone by 9.6%. All of those segments caught a boost from Apple's September product launch, which revealed the next generation AirPods, the Apple Watch Ultra, and the iPhone 14.
Apple's services segment, which includes Apple Music, Apple News, and Apple Pay, will remain in focus during 2023 as it's the fastest-growing and most profitable part of Apple's business. But for now, the consumer electronics giant is finding a way to tread water in one of the most difficult economies in recent memory, and that sets up a great opportunity if the broader environment improves in the new year.
The company that keeps on growing
Jamie Louko (Datadog): Datadog has caught the eye of one of the most famous investors in the world: Stanley Druckenmiller. Druckenmiller bought almost 790,000 shares during the second and third quarters, totaling $82 million invested in this application and performance monitoring platform. He's so confident in Datadog that it is now his ninth-largest holding.
It's not surprising that Datadog has caught his eye because the company has been posting stellar results this year. While many software companies have seen demand plummet, customers continue to buy Datadog's tools. In Q3, revenue soared 61% year over year to $437 million. Datadog's cash flow has also continued to shoot higher: Trailing 12-month free cash flow reached $364 million, which is 45% higher than the year-ago period.
Datadog's stable results during this uncertain time should be no surprise. The company's application performance monitoring tools are vital to customers. Imagine running a business without understanding user behavior, reducing application downtime, and monitoring infrastructure performance. That would be pretty hard, right? Datadog provides these tools to 22,200 customers, and considering these abilities are always needed, no matter the economic environment, Datadog has continued to see stable adoption.
According to Gartner's Magic Quadrant, Datadog is the leader in this space. This is likely due to its large (and growing) product suite. The company has over 35 tools, with more likely to come. This makes Datadog the one-stop shop for all application monitoring, performance, and security needs. Given how much free cash flow the company is generating, it will be able to continue investing heavily in product innovation to maintain its top-dog status.
Druckenmiller doesn't seem too concerned with the company's high valuation of 64 times free cash flow, given how high-quality the business is. He is willing to load up on shares now, and you might want to consider doing the same.
The leader in identity and access management
Trevor Jennewine (Okta): Billionaire hedge fund manager Israel Englander tripled his stake in Okta in the third quarter, and he has increased his position fivefold since the beginning of 2022. That buying spree is especially noteworthy because Okta's share price has plunged 70% this year, evidencing Englander's confidence in the company.
Okta specializes in a branch of cybersecurity known as identity and access management (IAM). Its platform leans on artificial intelligence to authenticate users based on context like device, location, and behavior. It then authorizes users based on the permissions granted to them by administrators, ensuring that only the right people can access sensitive applications and data.
In November, IT research company Gartner named Okta a leader in access management, citing more robust product capabilities and a greater ability to execute than any other vendor, including tech titan Microsoft. That recognition highlights the power of neutrality. Whereas Microsoft has a clear incentive to steer customers toward its own cloud infrastructure, Okta engineered its software to be compatible across private data centers, public clouds, and hybrid environments.
Additionally, Okta addresses workforce and customer identity use cases. Its platform integrates with more than 7,000 applications and IT infrastructure providers, allowing businesses to secure products from vendors like Salesforce or even Microsoft. But Okta also provides developer tools that allow businesses to embed identity into custom software. Collectively, its neutrality and broad utility have propelled Okta to the forefront of the IAM market.
The company recently reported solid third-quarter results. Its customer count increased 22% to 17,050, and the average customer spent 22% more over the past year. In turn, revenue climbed 37% to $481 million, and Okta reported non-GAAP (adjusted) earnings of $0.00 per diluted share, a slight improvement from a non-GAAP loss of $0.07 per diluted share in the prior year.
Investors have good reason to be optimistic. IAM is a crucial component of zero-trust security, and digital transformation has made effective cybersecurity an imperative for virtually every business. Okta estimates its addressable market at $80 billion, leaving a long runway for growth. And with shares trading at 6.1 times sales -- a bargain compared to the three-year average of 27.2 times sales -- now is a good time to buy a few shares of this growth stock.
10 stocks we like better than Apple
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 Apple 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 December 1, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko has positions in Apple, Berkshire Hathaway, and Datadog. Trevor Jennewine has positions in Okta. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Datadog, Okta, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner and 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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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. The company sells products that consumers love, it's highly profitable, and it has returned a significant amount of money to shareholders, which flows directly into Berkshire's coffers. But for now, the consumer electronics giant is finding a way to tread water in one of the most difficult economies in recent memory, and that sets up a great opportunity if the broader environment improves in the new year.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. The leader in identity and access management Trevor Jennewine (Okta): Billionaire hedge fund manager Israel Englander tripled his stake in Okta in the third quarter, and he has increased his position fivefold since the beginning of 2022. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Datadog, Okta, and Taiwan Semiconductor Manufacturing.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. Betting big on America's largest company Anthony Di Pizio (Apple): He's widely considered as one of the greatest investors ever, so it seems fitting that Warren Buffett, through his investment company Berkshire Hathaway, would own shares in Apple, America's largest company. Apple's services segment, which includes Apple Music, Apple News, and Apple Pay, will remain in focus during 2023 as it's the fastest-growing and most profitable part of Apple's business.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. And with shares trading at 6.1 times sales -- a bargain compared to the three-year average of 27.2 times sales -- now is a good time to buy a few shares of this growth stock. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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718437.0
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2022-12-01 00:00:00 UTC
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How Much Upside is Left in Datadog (DDOG)? Wall Street Analysts Think 54%
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DDOG
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https://www.nasdaq.com/articles/how-much-upside-is-left-in-datadog-ddog-wall-street-analysts-think-54
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Shares of Datadog (DDOG) have gained 1.8% over the past four weeks to close the last trading session at $75.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $116.67 indicates a potential upside of 54%.
The mean estimate comprises 24 short-term price targets with a standard deviation of $22.99. While the lowest estimate of $85 indicates a 12.2% increase from the current price level, the most optimistic analyst expects the stock to surge 127% to reach $172. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in DDOG. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in DDOG
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, nine estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 27%.
Moreover, DDOG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much DDOG could gain, the direction of price movement it implies does appear to be a good guide.
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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Shares of Datadog (DDOG) have gained 1.8% over the past four weeks to close the last trading session at $75.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. However, an impressive consensus price target is not the only factor that indicates a potential upside in DDOG. Here's Why There Could be Plenty of Upside Left in DDOG There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher.
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Shares of Datadog (DDOG) have gained 1.8% over the past four weeks to close the last trading session at $75.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Here's Why There Could be Plenty of Upside Left in DDOG There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. However, an impressive consensus price target is not the only factor that indicates a potential upside in DDOG.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much DDOG could gain, the direction of price movement it implies does appear to be a good guide. Shares of Datadog (DDOG) have gained 1.8% over the past four weeks to close the last trading session at $75.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. However, an impressive consensus price target is not the only factor that indicates a potential upside in DDOG.
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However, an impressive consensus price target is not the only factor that indicates a potential upside in DDOG. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much DDOG could gain, the direction of price movement it implies does appear to be a good guide. Shares of Datadog (DDOG) have gained 1.8% over the past four weeks to close the last trading session at $75.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication.
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2022-12-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights Airbnb, Datadog, Ceridian HCM Holding, Cloudflare and Unity Software
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DDOG
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-airbnb-datadog-ceridian-hcm-holding-cloudflare-and-unity
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For Immediate Release
Chicago, IL – December 1, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U.
Here are highlights from Wednesday’s Analyst Blog:
Top 5 Heavily Shorted Internet Stocks Set to Rebound in 2023
The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered a bloody blow at the start of 2022. Record-high inflation compelled the Fed to turn ultra-hawkish with tighter liquidity control and a higher interest rate regime. The bloodbath in the technology sector has continued year to date.
However, the valuation of this sector has been corrected significantly. The Technology Select Sector SPDR — one of the 11 broad sectors of the S&P 500 Index — has tumbled 25.5% year to date. The tech-heavy Nasdaq Composite Index has plunged 29.8% year to date and is currently in bear market.
We have selected five Internet-based stocks that were heavily shorted in 2022. However, these stocks have strong growth potential for 2023 supported by a favorable Zacks Rank. These companies are - Airbnb Inc., Datadog Inc., Ceridian HCM Holding Inc., Cloudflare Inc. and Unity Software Inc..
Positive Development
Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. The minutes of the Fed's November FOMC meeting revealed that a "substantial majority" of Fed officials favor reducing the magnitude of the interest rate hike going forward.
In his post-FOMC statement in November, Fed Chairman Jerome Powell warned that the terminal interest rate might go beyond 5% as estimated earlier and a soft landing of the economy may not be realized. However, with several important Fed officials recently expressing their dovish views, market participants expect that the terminal interest rate may not cross the 5% threshold.
High-growth-oriented companies, especially technology companies, depend on easy access to cheap credit to expand their businesses. Therefore, a reduction of the magnitude of the interest rate hike by the Fed will be a welcome development for the technology sector.
Moreover, lower market risk-free returns mean a lower discount rate for future cash flows from stock investing. This will increase the net present value of the investors from their investment in growth stocks.
Our Top Picks
We have narrowed our search to five large-cap (market capital >$10 billion) Internet-based stocks that have plunged 35% year to date. The stocks have strong growth potential for 2023 and have sAeen positive earnings estimate revision for the next year in the past 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Airbnb is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB's Nights & Experience bookings. Additionally, growth in average daily rates and gross booking value is a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected revenue and earnings growth rate of 13.3% and 15.6%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 6.8% over the past 30 days. The stock price of ABNB has tanked 42.7% year to date.
Datadog is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected revenue and earnings growth rate of 33% and 17.4%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% over the past 30 days. The stock price of DDOG has tumbled 59.6% year to date.
Ceridian HCM operates as a human capital management (HCM) software company in the United States, Canada, and internationally. CDAY offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality and Powerpay, a cloud HR and payroll solution for the small business market. Ceridian HCM also provides Bureau solutions for payroll and payroll-related services. CDAY sells its solutions through a direct sales force and third-party channels.
Ceridian HCM has an expected revenue and earnings growth rate of 17.4% and 27.2%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 9.8% over the past 30 days. The stock price of CDAY has slid 38.7% year to date.
Cloudflare provides an integrated cloud-based security solution to secure a range of combinations of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications and IoT devices worldwide.
NET's security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products. Cloudflare offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile, and image optimization solutions. In addition, NET provides reliability solutions comprising load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions.
Cloudflare has an expected revenue and earnings growth rate of 35.6% and 35.4%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days. The stock price of NET has plummeted 66.1% year to date.
Unity Software provides a platform for creating and operating interactive, real-time 3D content. U's platform provides a set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles and augmented and virtual reality devices.
Unity Software enables content creators and developers, artists, designers, engineers, and architects to create interactive and real-time 2D and 3D content. U offers its solutions directly through its online store, field sales operations, independent distributors, and resellers in the United States, Denmark, Belgium, Canada, China, Colombia, Finland, France, Germany, Ireland, Israel, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom.
Unity Software has an expected revenue and earnings growth rate of 60.1% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days. The stock price of U has plunged 74.8% year to date.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Ceridian HCM (CDAY) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Unity Software Inc. (U) : 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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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U. Click to get this free report Ceridian HCM (CDAY) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U. Click to get this free report Ceridian HCM (CDAY) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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77615ae4-dee2-4c0d-91a4-f019aaf11988
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718439.0
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2022-11-30 00:00:00 UTC
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Datadog (DDOG) Reveals New Integration With Amazon Security Lake
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-reveals-new-integration-with-amazon-security-lake
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nan
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nan
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Datadog DDOG recently announced a new integration with Amazon’s AMZN Amazon Security Lake to provide an easy way to set up and manage important log integrations for Datadog Cloud SIEM, giving customers deep visibility into their most critical infrastructure.
Amazon Security Lake automatically centralizes security data from cloud, on-premises, and custom sources into a purpose-built data lake stored in your account.
Security Lake makes it easier to analyze security data so that users can get a more complete understanding of security across the entire organization and improve the protection of workloads, applications, and data.
DDOG’s integration makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format with minimal configuration required.
Once security logs are ingested into Datadog, customers can analyze and identify threats through out-of-the-box detection rules or by writing custom security rules. They can also do deeper investigations using Datadog's log management tools.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog’s Efforts Toward Cloud Security Management
Datadog’s monitoring and security platform for cloud applications recently announced the general availability of Universal Service Monitoring, which automatically detects all microservices across an organization's environment and provides instant visibility into their health and dependencies—all without any code changes.
Universal Service Monitoring provides complete visibility into first- and third-party services and their dependencies, regardless of programming language they use. The product complements Datadog's foundational Infrastructure Monitoring and Application Performance Monitoring capabilities and seamlessly integrates with Service Catalog, so that teams can view the health of their entire technology stack alongside ownership and other critical information about their services.
The company’s Cloud Security Management, brings together capabilities from Cloud Security Posture Management and Cloud Workload Security to identify misconfigurations, detect threats and secure cloud-native applications.
Cloud Security Management helps in observability and security insights across an organization's entire cloud environment without the need to deploy additional agents.
This provides quick solutions to issues by providing a single platform as opposed to multiple-point solutions, which deliver a complete view of an organization's infrastructure and risk exposure.
In August, DDOG achieved Amazon Web Services (AWS) Security, Networking and Retail competencies.
While AWS Security Competency certifies Datadog's deep technical expertise and proven customer success in securing every stage of cloud adoption, AWS Networking Competency recognizes Datadog as a software partner that enables customers to get deep visibility into networked services and applications across complex native, cloud and hybrid environments.
Besides cloud application security, Datadog has made several other announcements recently to bolster its cloud business which are expected to track users and boost the company’s top line. The company’s third-quarter 2022 revenues are anticipated to be in the range of $410-$414 million, which represents 52% year-over-year growth at the midpoint.
Zacks Rank & Other Stocks to Consider
Currently, Datadog carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Computer & Technology sector can also consider other top-ranked stocks like Asure Software ASUR and AMETEK AME. While Asure Software sports a Zacks Rank #1 (Strong Buy), AMETEK carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software has lost 10.9% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 14%.
AMETEK has lost 5.7% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 9.7%.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
AMETEK, Inc. (AME) : Free Stock Analysis 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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In August, DDOG achieved Amazon Web Services (AWS) Security, Networking and Retail competencies. Datadog DDOG recently announced a new integration with Amazon’s AMZN Amazon Security Lake to provide an easy way to set up and manage important log integrations for Datadog Cloud SIEM, giving customers deep visibility into their most critical infrastructure. DDOG’s integration makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format with minimal configuration required.
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Datadog DDOG recently announced a new integration with Amazon’s AMZN Amazon Security Lake to provide an easy way to set up and manage important log integrations for Datadog Cloud SIEM, giving customers deep visibility into their most critical infrastructure. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report AMETEK, Inc. (AME) : Free Stock Analysis 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. DDOG’s integration makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format with minimal configuration required.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report AMETEK, Inc. (AME) : Free Stock Analysis 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. Datadog DDOG recently announced a new integration with Amazon’s AMZN Amazon Security Lake to provide an easy way to set up and manage important log integrations for Datadog Cloud SIEM, giving customers deep visibility into their most critical infrastructure. DDOG’s integration makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format with minimal configuration required.
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Datadog DDOG recently announced a new integration with Amazon’s AMZN Amazon Security Lake to provide an easy way to set up and manage important log integrations for Datadog Cloud SIEM, giving customers deep visibility into their most critical infrastructure. DDOG’s integration makes it easy for Amazon Security Lake users to send cloud security logs to Datadog in a standard format with minimal configuration required. In August, DDOG achieved Amazon Web Services (AWS) Security, Networking and Retail competencies.
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7667e0c4-771d-446d-b351-bf2692ba95aa
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718440.0
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2022-11-30 00:00:00 UTC
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Datadog, Inc. (DDOG) is Attracting Investor Attention: Here is What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-inc.-ddog-is-attracting-investor-attention%3A-here-is-what-you-should-know
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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.
Over the past month, shares of this data analytics and cloud monitoring company have returned -10.8%, compared to the Zacks S&P 500 composite's +1.7% change. During this period, the Zacks Internet - Software industry, which Datadog falls in, has lost 5.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
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.
For the current quarter, Datadog is expected to post earnings of $0.18 per share, indicating a change of -10% from the year-ago quarter. The Zacks Consensus Estimate has changed +13.6% over the last 30 days.
The consensus earnings estimate of $0.89 for the current fiscal year indicates a year-over-year change of +85.4%. This estimate has changed +32.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.05 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has changed +10.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Datadog is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Datadog, the consensus sales estimate of $447.17 million for the current quarter points to a year-over-year change of +37.1%. The $1.65 billion and $2.2 billion estimates for the current and next fiscal years indicate changes of +60.7% and +33%, 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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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.
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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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. Over the past month, shares of this data analytics and cloud monitoring company have returned -10.8%, compared to the Zacks S&P 500 composite's +1.7% 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. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Datadog is rated Zacks Rank #2 (Buy).
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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. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since 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. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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563955ff-87cd-4755-9eeb-9ccaff9d4a69
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718441.0
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2022-11-30 00:00:00 UTC
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Top 5 Heavily Shorted Internet Stocks Set to Rebound in 2023
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DDOG
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https://www.nasdaq.com/articles/top-5-heavily-shorted-internet-stocks-set-to-rebound-in-2023
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nan
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nan
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The technology sector, which enabled Wall Street to get rid of the coronavirus-induced short bear market and formed the new bull market, suffered a bloody blow at the start of 2022. Record-high inflation compelled the Fed to turn ultra-hawkish with tighter liquidity control and a higher interest rate regime. The blood bath in the technology sector has continued year to date.
However, the valuation of this sector has been corrected significantly. The Technology Select Sector SPDR (XLK) — one of the 11 broad sectors of the S&P 500 Index — has tumbled 25.5% year to date. The tech-heavy Nasdaq Composite Index has plunged 29.8% year to date and is currently in bear market.
We have selected five Internet-based stocks that were heavily shorted in 2022. However, these stocks have strong growth potential for 2023 supported by a favorable Zacks Rank. These companies are - Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U,
Positive Development
Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. The minutes of the Fed’s November FOMC meeting revealed that a “substantial majority” of Fed officials favor reducing the magnitude of the interest rate hike going forward.
In his post-FOMC statement in November, Fed Chairman Jerome Powell warned that the terminal interest rate might go beyond 5% as estimated earlier and a soft landing of the economy may not be realized. However, with several important Fed officials recently expressing their dovish views, market participants expect that the terminal interest rate may not cross the 5% threshold.
High-growth-oriented companies, especially technology companies, depend on easy access to cheap credit to expand their businesses. Therefore, a reduction of the magnitude of the interest rate hike by the Fed will be a welcome development for the technology sector.
Moreover, lower market risk-free returns mean a lower discount rate for future cash flows from stock investing. This will increase the net present value of the investors from their investment in growth stocks.
Our Top Picks
We have narrowed our search to five large-cap (market capital >$10 billion) Internet-based stocks that have plunged 35% year to date. The stocks have strong growth potential for 2023 and have sAeen positive earnings estimate revision for the next year in the past 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Airbnb is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB’s Nights & Experience bookings. Additionally, growth in average daily rates and gross booking value is a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected revenue and earnings growth rate of 13.3% and 15.6%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 6.8% over the past 30 days. The stock price of ABNB has tanked 42.7% year to date.
Datadog is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected revenue and earnings growth rate of 33% and 17.4%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 10.5% over the past 30 days. The stock price of DDOG has tumbled 59.6% year to date.
Ceridian HCM operates as a human capital management (HCM) software company in the United States, Canada, and internationally. CDAY offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality and Powerpay, a cloud HR and payroll solution for the small business market. Ceridian HCM also provides Bureau solutions for payroll and payroll-related services. CDAY sells its solutions through a direct sales force and third-party channels.
Ceridian HCM has an expected revenue and earnings growth rate of 17.4% and 27.2%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 9.8% over the past 30 days. The stock price of CDAY has slid 38.7% year to date.
Cloudflare provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications and IoT devices worldwide.
NET’s security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products. Cloudflare offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile, and image optimization solutions. In addition, NET provides reliability solutions comprising load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions.
Cloudflare has an expected revenue and earnings growth rate of 35.6% and 35.4%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days. The stock price of NET has plummeted 66.1% year to date.
Unity Software provides a platform for creating and operating interactive, real-time 3D content. U’s platform provides a set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles and augmented and virtual reality devices.
Unity Software enables content creators and developers, artists, designers, engineers, and architects to create interactive and real-time 2D and 3D content. U offers its solutions directly through its online store, field sales operations, independent distributors, and resellers in the United States, Denmark, Belgium, Canada, China, Colombia, Finland, France, Germany, Ireland, Israel, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom.
Unity Software has an expected revenue and earnings growth rate of 60.1% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved more than 100% over the past 30 days. The stock price of U has plunged 74.8% year to date.
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
Ceridian HCM (CDAY) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Unity Software Inc. (U) : 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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These companies are - Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U, Positive Development Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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These companies are - Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U, Positive Development Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. Click to get this free report Ceridian HCM (CDAY) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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These companies are - Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U, Positive Development Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. Click to get this free report Ceridian HCM (CDAY) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Unity Software Inc. (U) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term.
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These companies are - Airbnb Inc. ABNB, Datadog Inc. DDOG, Ceridian HCM Holding Inc. CDAY, Cloudflare Inc. NET and Unity Software Inc. U, Positive Development Although the Fed is yet to signal any shift from its ultra-hawkish monetary policies, a section of Fed officials recently spoke in a relatively dovish tone. The solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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6afafe87-0981-44cc-8ba2-22e524055b9f
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718442.0
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2022-11-28 00:00:00 UTC
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Tiger Global Cuts Cybersecurity And China Exposure While Rotating Into LargeCap Tech. Find Out The Top Trades Here
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DDOG
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https://www.nasdaq.com/articles/tiger-global-cuts-cybersecurity-and-china-exposure-while-rotating-into-largecap-tech.-find
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nan
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nan
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Internet and growth focused hedge fund manager Tiger Global has grabbed headlines over 2022 as the fund was hit with hefty losses from high growth and valuation companies.
The asset manager headed by Chase Coleman became one of the most successful hedge funds across the globe with successful bets on high growth technology names over the last 20 years.
The fund has suffered high losses over 2022 losing more than half its capital with high growth stocks re-rating lower as rising rates shifted market valuation dynamics in the market.
Coleman originally set up his firm in 2001 in New York during a time when equity markets were experiencing the crash of the technology ‘dot com bubble’, bursting from excessive valuations.
At the end of the third quarter, according to Tiger Global’s most recent 13F filing, the fund held a total of 64 positions worth approximately $10.89 billion.
The chart to the right shows the reported value of the portfolio over the last 10 years. It shows how the fund is trading below pre-pandemic levels.
The Fintel platform’s hedge fund data unveils the most significant positions and recent trades that have been reported to the SEC.
Top purchases:
The fund's largest purchase during the quarter was in data monitoring services firm Datadog (US:DDOG) with a 3.26% increase in the portfolio allocation to 4.71%. Tiger now holds 5.78 million shares worth $513 million. The stock is trading -54% lower over 2022 but has moved sideways since May. In early November DDOG reported Q3 results that beat consensus forecasts and included a full year upgrade to revenue and profit guidance above expectations.
The second largest purchase was a 2.85% weight increase in human resources software firm Workday (US:WDAY) to a 4.43% allocation worth $483 million. The stock is trading -43.5% lower over the year and is scheduled to report Q3 results this week. During September the company reiterated its full year guidance for 20%+ subscription growth with over $10 billion in revenue.
Alphabet (US:GOOGL) was the third largest increase with the firm almost doubling its allocation by 2.85% to a 4.43% portfolio weight worth $523 million. The stock has not been immune to broader equity market weakness tracking -32.8% lower over 2022. At Alphabet's last result in October, the company missed revenue and profit estimates as they were negatively affected by currency headwinds.
The fund tipped in a 2.3% portfolio weight increase in ridesharing group Uber Technologies (US:UBER), bringing the total weight to 2.41%. Uber’s stock has recovered more than 30% from calendar year lows in July but remains down -35.1% for the year. While the last result was ahead of consensus forecasts, investors remain concerned about inflationary headwinds that may further impact growth.
The fifth largest increase was in the fund's second largest position in Microsoft (US:MSFT) adding an additional 1.73% allocation and bringing the total weight to 12.84%. The position size is worth about $1.4 billion. The tech giant remains affected by broader market weakness but continues to outpace analyst forecasts as seen during the Q1 result in late October.
Other purchases during the quarter included a top up in data share centre Snowflake (US:SNOW) by 1.58%, a new 1.47% position in Hubspot (US:HUBS), a 1.43% increase in Block Inc (US:SQ) and a 1.42% increase in ServiceNow (US:NOW).
Top Sales:
The largest decrease during the quarter was a -7.89% portfolio weight reduction in cybersecurity giant CrowdStrike (US:CRWD) to 1.36% The remaining position at the end of the quarter had a market value of around $148 million. The stock has experienced a choppy year over 2022 with the stock moving higher and lower several times. Overall the stock remains down -29.4% over the year. The stock is scheduled to report Q3 results this week with guidance for EPS of 30 to 32 cents and sales between $569 to $576 million.
The second largest sale was in Brazilian fintech Nu Holdings (US:NU) with a -4.49% portfolio weight reduction to 1.87% worth ~$204 million. The stock materially outperformed analyst profit and sales expectations during the Q3 result in mid November but continues to trade in its sideways pattern that began in early May.
Tiger reduced its largest position in Chinese e-commerce giant JD.com (US:JD) by -2.64% to a 13.79% allocation worth $1.5 billion. Since reporting Q3 results in mid-November the stock has sharply recovered recent losses accumulated during the previous quarter and is now down -27.6% for 2022.
Tiger also halved its exposure in cybersecurity firm SentinelOne Inc (US:S) by -0.98% to 0.97% worth $106 million, cutting its losses in the position. The stock has traded significantly lower over 2022 losing -66% of its value. The stock is scheduled to report Q3 earnings on the 6th of December with management expected to report $111 million in revenue.
The fund trimmed its position in cloud-based communications provider RingCentral (US:RNG) by -0.48% to a 0.91% portfolio weight worth $99 million. The stock has experienced heavy losses of more than -80% over 2022 due to valuation concerns. At the most recent result in November, management told investors it would be firing 10% of the workforce to reduce expenses.
The fund completed positions in Procore Technologies (US:PCOR), Xpeng Inc (US:XPEV), 1life Healthcare Inc (US:ONEM) and monday.com (US:MNDY).
A heat map from the platform of the fund's largest positions has been included below:
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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In early November DDOG reported Q3 results that beat consensus forecasts and included a full year upgrade to revenue and profit guidance above expectations. Top purchases: The fund's largest purchase during the quarter was in data monitoring services firm Datadog (US:DDOG) with a 3.26% increase in the portfolio allocation to 4.71%. Coleman originally set up his firm in 2001 in New York during a time when equity markets were experiencing the crash of the technology ‘dot com bubble’, bursting from excessive valuations.
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Top purchases: The fund's largest purchase during the quarter was in data monitoring services firm Datadog (US:DDOG) with a 3.26% increase in the portfolio allocation to 4.71%. In early November DDOG reported Q3 results that beat consensus forecasts and included a full year upgrade to revenue and profit guidance above expectations. The tech giant remains affected by broader market weakness but continues to outpace analyst forecasts as seen during the Q1 result in late October.
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Top purchases: The fund's largest purchase during the quarter was in data monitoring services firm Datadog (US:DDOG) with a 3.26% increase in the portfolio allocation to 4.71%. In early November DDOG reported Q3 results that beat consensus forecasts and included a full year upgrade to revenue and profit guidance above expectations. The fund has suffered high losses over 2022 losing more than half its capital with high growth stocks re-rating lower as rising rates shifted market valuation dynamics in the market.
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Top purchases: The fund's largest purchase during the quarter was in data monitoring services firm Datadog (US:DDOG) with a 3.26% increase in the portfolio allocation to 4.71%. In early November DDOG reported Q3 results that beat consensus forecasts and included a full year upgrade to revenue and profit guidance above expectations. The stock is trading -43.5% lower over the year and is scheduled to report Q3 results this week.
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864abe89-b2fc-4376-ba18-daed88ecc7f7
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718443.0
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2022-11-23 00:00:00 UTC
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Noteworthy Wednesday Option Activity: PINS, DDOG, TGNA
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DDOG
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-pins-ddog-tgna
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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 Pinterest Inc (Symbol: PINS), where a total volume of 72,898 contracts has been traded thus far today, a contract volume which is representative of approximately 7.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.1% of PINS's average daily trading volume over the past month, of 16.5 million shares. Particularly high volume was seen for the $42 strike put option expiring January 20, 2023, with 10,546 contracts trading so far today, representing approximately 1.1 million underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $42 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 25,137 contracts, representing approximately 2.5 million underlying shares or approximately 44% of DDOG's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $120 strike put option expiring January 20, 2023, with 3,160 contracts trading so far today, representing approximately 316,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange:
And TEGNA Inc (Symbol: TGNA) saw options trading volume of 8,170 contracts, representing approximately 817,000 underlying shares or approximately 43.2% of TGNA's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $21 strike call option expiring December 16, 2022, with 4,672 contracts trading so far today, representing approximately 467,200 underlying shares of TGNA. Below is a chart showing TGNA's trailing twelve month trading history, with the $21 strike highlighted in orange:
For the various different available expirations for PINS options, DDOG options, or TGNA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
TFC MACD
SLYV Split History
SBSI Next Dividend Date
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 $120 strike put option expiring January 20, 2023, with 3,160 contracts trading so far today, representing approximately 316,000 underlying shares of DDOG. Below is a chart showing PINS's trailing twelve month trading history, with the $42 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 25,137 contracts, representing approximately 2.5 million underlying shares or approximately 44% of DDOG's average daily trading volume over the past month, of 5.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And TEGNA Inc (Symbol: TGNA) saw options trading volume of 8,170 contracts, representing approximately 817,000 underlying shares or approximately 43.2% of TGNA's average daily trading volume over the past month, of 1.9 million shares.
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Below is a chart showing PINS's trailing twelve month trading history, with the $42 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 25,137 contracts, representing approximately 2.5 million underlying shares or approximately 44% of DDOG's average daily trading volume over the past month, of 5.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And TEGNA Inc (Symbol: TGNA) saw options trading volume of 8,170 contracts, representing approximately 817,000 underlying shares or approximately 43.2% of TGNA's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $120 strike put option expiring January 20, 2023, with 3,160 contracts trading so far today, representing approximately 316,000 underlying shares of DDOG.
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Below is a chart showing PINS's trailing twelve month trading history, with the $42 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 25,137 contracts, representing approximately 2.5 million underlying shares or approximately 44% of DDOG's average daily trading volume over the past month, of 5.7 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And TEGNA Inc (Symbol: TGNA) saw options trading volume of 8,170 contracts, representing approximately 817,000 underlying shares or approximately 43.2% of TGNA's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $120 strike put option expiring January 20, 2023, with 3,160 contracts trading so far today, representing approximately 316,000 underlying shares of DDOG.
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Especially high volume was seen for the $120 strike put option expiring January 20, 2023, with 3,160 contracts trading so far today, representing approximately 316,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And TEGNA Inc (Symbol: TGNA) saw options trading volume of 8,170 contracts, representing approximately 817,000 underlying shares or approximately 43.2% of TGNA's average daily trading volume over the past month, of 1.9 million shares. Below is a chart showing PINS's trailing twelve month trading history, with the $42 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 25,137 contracts, representing approximately 2.5 million underlying shares or approximately 44% of DDOG's average daily trading volume over the past month, of 5.7 million shares.
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856bc5f6-eddd-4d44-a5d3-7e4b88767a3e
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718444.0
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2022-11-23 00:00:00 UTC
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All You Need to Know About Datadog (DDOG) Rating Upgrade to Buy
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DDOG
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https://www.nasdaq.com/articles/all-you-need-to-know-about-datadog-ddog-rating-upgrade-to-buy
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nan
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nan
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Investors might want to bet on Datadog (DDOG), as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Datadog is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Datadog imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Datadog
For the fiscal year ending December 2022, this data analytics and cloud monitoring company is expected to earn $0.89 per share, which is a change of 85.4% from the year-ago reported number.
Analysts have been steadily raising their estimates for Datadog. Over the past three months, the Zacks Consensus Estimate for the company has increased 29.8%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Datadog to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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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Investors might want to bet on Datadog (DDOG), as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it.
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Investors might want to bet on Datadog (DDOG), as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts.
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Investors might want to bet on Datadog (DDOG), as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock.
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Investors might want to bet on Datadog (DDOG), as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts.
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8478753e-64ff-4cb0-aa62-c07847baa327
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718445.0
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2022-11-23 00:00:00 UTC
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Got $1,000? 2 Growth Stocks to Buy in 2023 and Hold Forever
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DDOG
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https://www.nasdaq.com/articles/got-%241000-2-growth-stocks-to-buy-in-2023-and-hold-forever
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nan
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nan
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Investors are eagerly waiting to close the book on 2022, which has been a challenging year to invest. The Nasdaq Composite is down almost 29%, marking the worst year for the index since 2008. As you look ahead to 2023, you might be thinking of adding some money into the market in hopes that the coming year won't be the same as 2022. One place to hunt for bargains is among growth stocks, which have been crushed.
While not all growth stocks might be worth investing in for the long haul, Datadog (NASDAQ: DDOG) and Global-e Online (NASDAQ: GLBE) look like two great picks. Their stock prices may be down, but both businesses have continued to flourish -- creating a disconnect between investor sentiment and actual business performance. Therefore, if you have some spare cash to invest for the long haul, these companies look like great choices.
1. Datadog
Many investors seem to have given up Datadog, considering that its shares are down 57% in 2022. But this only provides an opportunity for long-term investors.
Datadog provides mission-critical software to help companies monitor application and infrastructure performance, understand user behavior, reduce application downtime, and drive internal product development. These are tools that businesses need to stay competitive, no matter the economic environment. That's why the company has seen trailing-12-month revenue soar 74% to $1.5 billion.
Nothing shows how crucial Datadog is to its customers more than its continued track record of customer expansion and low churn. In the third quarter, the company saw customer churn remain in the mid to low single digits, while its net retention rate remained above 130% for the 21st consecutive quarter.
And customers continued to adopt more products. In the third quarter, 40% of customers used four or more products, and 16% used six or more. That's up from 31% and 8%, respectively, in the third quarter of 2021.
What's even more impressive is the company's profitability. Unlike most companies whose stocks have been beaten down, Datadog is immensely profitable. Over the trailing 12 months, the company has an adjusted free-cash-flow margin of 24% and an adjusted operating margin of 20%. This can be reinvested in product development and innovation, which could help Datadog keep its top-dog status in application performance monitoring.
Datadog looks like an excellent stock to own, but don't take just my word for it. Big investors have been rapidly buying shares. Stanley Druckenmiller, the hedge fund manager and philanthropist, bought $82 million worth of shares in the second and third quarters, making the stock his ninth-largest holding. Matthew Jacobson, a director at Datadog, also bought $70 million of stock in early November.
The shares might have been beaten down, but this looks more like an opportunity to buy than anything else. With a total addressable market worth $62 billion by 2026, this dog still has a lot of bite left.
2. Global-e Online
Shares of Global-e Online have plunged almost 70% in 2022, likely due to continued underwhelming guidance for the rest of the year.
The company provides tools to help e-commerce sellers deliver better experiences for international buyers while mitigating the complexities of selling across borders. This includes language localization, accepting various payment methods and currencies, and maintaining regulatory compliance with local laws and regulations.
In short, Global-e helps e-commerce companies expand internationally with ease, and it does a mighty fine job.
Global-e has attracted prominent businesses, including Walt Disney and Adidas, but it also has a partnership with Shopify to help small companies benefit from this $5.7 trillion global e-commerce opportunity.
The company has struggled with slight decreases in what it anticipates for the rest of the year, which has been a driver of its unflattering stock performance. In the third quarter, the company decreased its full-year revenue expectation, now forecasting about $408 million in 2022 revenue, down from the previous guidance of $411 million. However, this still implies an astounding year-over-year expansion rate of 66%.
While this guidance might be down, it still rapidly outpaces the broader industry growth in 2022 of 10%. So yes, its adoption might be slower than expected, but it represents tremendous success this year.
Shares are trading at 10 times sales, near their lowest valuation since coming public in 2021. At this valuation, the company looks too attractive to pass up given its greenfield opportunity. It could become the next e-commerce powerhouse, so if you're willing to buy and hold this stock for the long haul, Global-e could be a wonderful company to consider for 2023 and beyond.
10 stocks we like better than Datadog
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Jamie Louko has positions in Datadog, Global-e Online Ltd., and Walt Disney. The Motley Fool has positions in and recommends Datadog, Global-e Online Ltd., and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. 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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While not all growth stocks might be worth investing in for the long haul, Datadog (NASDAQ: DDOG) and Global-e Online (NASDAQ: GLBE) look like two great picks. Stanley Druckenmiller, the hedge fund manager and philanthropist, bought $82 million worth of shares in the second and third quarters, making the stock his ninth-largest holding. The company provides tools to help e-commerce sellers deliver better experiences for international buyers while mitigating the complexities of selling across borders.
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While not all growth stocks might be worth investing in for the long haul, Datadog (NASDAQ: DDOG) and Global-e Online (NASDAQ: GLBE) look like two great picks. The Motley Fool has positions in and recommends Datadog, Global-e Online Ltd., and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney.
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While not all growth stocks might be worth investing in for the long haul, Datadog (NASDAQ: DDOG) and Global-e Online (NASDAQ: GLBE) look like two great picks. It could become the next e-commerce powerhouse, so if you're willing to buy and hold this stock for the long haul, Global-e could be a wonderful company to consider for 2023 and beyond. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Jamie Louko has positions in Datadog, Global-e Online Ltd., and Walt Disney.
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While not all growth stocks might be worth investing in for the long haul, Datadog (NASDAQ: DDOG) and Global-e Online (NASDAQ: GLBE) look like two great picks. Datadog Many investors seem to have given up Datadog, considering that its shares are down 57% in 2022. In the third quarter, 40% of customers used four or more products, and 16% used six or more.
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32a17794-f9cb-4b85-abd2-e9ba31c81e94
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718446.0
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2022-11-23 00:00:00 UTC
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Why Datadog Is a No-Brainer Buy Near Its 52-Week Low
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DDOG
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https://www.nasdaq.com/articles/why-datadog-is-a-no-brainer-buy-near-its-52-week-low
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nan
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nan
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Having as many data points as possible when deciphering when something is wrong or how to improve a process is critical. However, collecting these data points for software programs can be difficult. That's where Datadog (NASDAQ: DDOG) can help with its application performance monitoring (APM) software.
Knowing how data flows is crucial as more software programs are integrated into businesses. This makes Datadog a key software provider as the industry adopts more software solutions. Yet the stock is near its 52-week low, which I think is an excellent opportunity to purchase the stock. Here's why.
Customers are expanding their use significantly
Not only does Datadog offer its APM platform, but it also has log management and cloud security offerings. In fact, 80% of Datadog's customers use at least two of its products. However, only 16% use six or more, so the opportunity to "up-sell" customers is present with Datadog, especially since it has 15 different products under its roof.
For APM, Gartner recognized Datadog as a leader in the space, claiming the highest ability to execute of all companies analyzed. Investing in an industry leader is a crucial investment strategy as second-tier companies often don't fare as well.
The company also receives glowing reviews from its customer base, receiving 4.3 out of five stars from 354 reviews on G2. It's also rapidly expanding its customer count with around 4,700 customers added over the past year -- a 27% increase.
In the third quarter, the company reported revenue of $437 million, up 61% year over year. Revenue growth significantly outpaces customer growth because of Datadog's high net retention rate of greater than 130%, meaning existing customers spent at least $130 this year for every $100 they spent last year.
But customer and revenue growth don't mean a lot without profits.
Expenses are rising
Like many of its tech brethren, Datadog isn't profitable. However, it doesn't have far to go to reach that threshold. In Q3, Datadog lost $26 million -- a loss margin of 6%. This metric is trending in the wrong direction compared with last year's 2% loss margin.
But it might help to investigate where Datadog's expenses are increasing.
EXPENSE LINE ITEM YOY GROWTH
Cost of Revenue 48%
Research and Development 82%
Sales and Marketing 71%
General and Administrative 68%
Data source: Datadog.
Starting at the top, Datadog's cost of revenue rose more slowly than its revenue, meaning Datadog is exercising some pricing power. This is a huge deal, because it means Datadog isn't cutting prices to drive sales in a more challenging economic environment.
As for operating expenses, it's a little concerning that every segment rose faster than revenue. However, seeing research and development rising the fastest shows that Datadog is investing heavily in developing new products to capture as much market share in its niche as possible. Investors will need to keep an eye on these expenses to ensure they don't spiral out of control, but they aren't raising too many alarm bells right now.
The stock's valuation has also fallen throughout the year. While 16.6 times sales isn't cheap, it's not terribly expensive for a company growing sales at a 60% pace.
DDOG PS Ratio data by YCharts
With Datadog's enormous market opportunity and strong customer relationships, it's likely to post solid revenue growth for years. However, if its expenses continue to rise uncontrollably, I may change my opinion of the business.
As for right now, I think Datadog's stock is a strong buy because if it keeps reporting outstanding quarters in 2023, more investors will take notice, causing the stock price to rise.
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 November 7, 2022
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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DDOG PS Ratio data by YCharts With Datadog's enormous market opportunity and strong customer relationships, it's likely to post solid revenue growth for years. That's where Datadog (NASDAQ: DDOG) can help with its application performance monitoring (APM) software. For APM, Gartner recognized Datadog as a leader in the space, claiming the highest ability to execute of all companies analyzed.
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That's where Datadog (NASDAQ: DDOG) can help with its application performance monitoring (APM) software. DDOG PS Ratio data by YCharts With Datadog's enormous market opportunity and strong customer relationships, it's likely to post solid revenue growth for years. In the third quarter, the company reported revenue of $437 million, up 61% year over year.
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DDOG PS Ratio data by YCharts With Datadog's enormous market opportunity and strong customer relationships, it's likely to post solid revenue growth for years. That's where Datadog (NASDAQ: DDOG) can help with its application performance monitoring (APM) software. Revenue growth significantly outpaces customer growth because of Datadog's high net retention rate of greater than 130%, meaning existing customers spent at least $130 this year for every $100 they spent last year.
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That's where Datadog (NASDAQ: DDOG) can help with its application performance monitoring (APM) software. DDOG PS Ratio data by YCharts With Datadog's enormous market opportunity and strong customer relationships, it's likely to post solid revenue growth for years. It's also rapidly expanding its customer count with around 4,700 customers added over the past year -- a 27% increase.
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7b697b83-5d16-46e5-8b11-59b94f3dde10
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718447.0
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2022-11-22 00:00:00 UTC
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Quant Ratings Updated on 77 Stocks
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DDOG
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https://www.nasdaq.com/articles/quant-ratings-updated-on-77-stocks-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The InvestorPlace offices and customer service department will be closed this Thursday and Friday. I will be back in touch with your next Market 360 article on Saturday, November 26. I hope you have a safe and happy Thanksgiving!
********
The market is in holiday mode, which means there’s no trading volume since many traders are packing up early to get a head start on the holiday weekend. So, I would take any volatility we experience on Wednesday or Friday (remember, the stock market is open until 1 p.m. on Friday) with a grain of salt.
Now, while some traders may have called it a day already, that doesn’t mean that you shouldn’t continue to fine-tune your portfolio ahead of the end of the year. The reality is there’s a major leadership change currently underway, as the top end of the S&P 500 is faltering due to a strong U.S. dollar pinching profits at most multinational companies.
There’s also been net selling in some big flagship stocks. As you may recall from this third-quarter earnings season, the Googles, the Amazons, the Metas, and even the Microsofts continued to provide lower guidance. So, we’re going to see those stocks come under persistent selling pressure. This is why it’s no surprise that they continue to hold poor grades in my Portfolio Grader.
Now, they’re not the only stocks that have fallen in rank in my Portfolio Grader. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health over the weekend, I decided to revise my Portfolio Grader recommendations for 77 big blue chips.
You can get a quick peak at the first 10 of the stocks that were downgraded from a Hold (C-rating) to a Sell (D-rating). Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly so your portfolio is well positioned to profit as new stocks take the reins. For the full list of 77 stocks – including their Quantitative and Fundamental Grades – click here.
TICKER COMPANY NAME TOTAL GRADE
BALL Ball Corporation D
COF Capital One Financial Corp D
DDOG Datadog Inc Class A D
GFL GFL Environmental Inc D
IFF International Flavors & Fragrances Inc. D
INTU Intuit Inc. D
INVH Invitation Homes, Inc. D
LYV Live Nation Entertainment, Inc. D
MSFT Microsoft Corporation D
POOL Pool Corporation D
If you’re wondering who the next big leaders will be, the answer is easy: energy stocks.
As we discussed last week, the world is in the midst of a potential energy crisis. Russia helped trigger the global energy crisis when it invaded Ukraine, and the Biden administration made the crisis worse with its own “war on energy.”
Couple this with the fact that OPEC+ aims to curtail crude oil production by two million barrels per day, and it’s no surprise that energy prices remain elevated. While crude oil prices did break back below $80 per barrel this week, given the aforementioned issues I expect crude oil prices to rise back to $120 per barrel in the spring when worldwide demand naturally rises.
I explained in further detail in last Friday’s Growth Investor Monthly Issue for December why I am so bullish on energy, but let me say now that we are in the early innings of an incredible rally in energy stocks that should last for at least the next couple of years. (Click here to sign up for Growth Investor and read my latest Monthly Issue now.)
To make sure you’re ready to benefit from the huge upside potential in energy, I encourage you to join me at Growth Investor today. I just released five new energy buys on Friday – three refineries and two oil and gas companies – that are poised for explosive growth in the coming months. I also unveiled my Top Stocks lists, which are also dominated by energy stocks. The fact of the matter is oil and natural gas companies will boast the strongest earnings and sales growth for the next several quarters – and positive results should dropkick and drive these stocks higher.
Click here for full details.
Sincerely,
Source: InvestorPlace unless otherwise noted
Louis Navellier
P.S. Too many people are living in fear about having enough to pay basic living expenses, and too many retirees worry that their savings won’t last – all thanks to inflation. As a former federal banking regulator, I can say with 100% certainty, this trend will only worsen over the coming decade.
Here’s the good news: I believe I have information that can help you in a dramatic way, beginning immediately. This will allow you to generate huge amounts of real, hold-in-your-hand cash that you can spend on anything you please. I will reveal it all at my One Percent Event, scheduled for November 30, at 12 p.m. Eastern time. If you feel like you could use an extra $25,000 – $100,000 this year, you’ll want to hear what I have to say.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Datadog Inc Class A (DDOG) and Microsoft Corporation (MSFT)
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Quant Ratings Updated on 77 Stocks 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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The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG) and Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. BALL Ball Corporation D COF Capital One Financial Corp D DDOG Datadog Inc Class A D GFL GFL Environmental Inc D IFF International Flavors & Fragrances Inc. D INTU Intuit Inc. D INVH Invitation Homes, Inc. D LYV Live Nation Entertainment, Inc. D MSFT Microsoft Corporation D POOL Pool Corporation D If you’re wondering who the next big leaders will be, the answer is easy: energy stocks. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health over the weekend, I decided to revise my Portfolio Grader recommendations for 77 big blue chips.
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The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG) and Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. BALL Ball Corporation D COF Capital One Financial Corp D DDOG Datadog Inc Class A D GFL GFL Environmental Inc D IFF International Flavors & Fragrances Inc. D INTU Intuit Inc. D INVH Invitation Homes, Inc. D LYV Live Nation Entertainment, Inc. D MSFT Microsoft Corporation D POOL Pool Corporation D If you’re wondering who the next big leaders will be, the answer is easy: energy stocks. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The InvestorPlace offices and customer service department will be closed this Thursday and Friday.
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BALL Ball Corporation D COF Capital One Financial Corp D DDOG Datadog Inc Class A D GFL GFL Environmental Inc D IFF International Flavors & Fragrances Inc. D INTU Intuit Inc. D INVH Invitation Homes, Inc. D LYV Live Nation Entertainment, Inc. D MSFT Microsoft Corporation D POOL Pool Corporation D If you’re wondering who the next big leaders will be, the answer is easy: energy stocks. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG) and Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The InvestorPlace offices and customer service department will be closed this Thursday and Friday.
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BALL Ball Corporation D COF Capital One Financial Corp D DDOG Datadog Inc Class A D GFL GFL Environmental Inc D IFF International Flavors & Fragrances Inc. D INTU Intuit Inc. D INVH Invitation Homes, Inc. D LYV Live Nation Entertainment, Inc. D MSFT Microsoft Corporation D POOL Pool Corporation D If you’re wondering who the next big leaders will be, the answer is easy: energy stocks. The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: Datadog Inc Class A (DDOG) and Microsoft Corporation (MSFT) Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. This is why it’s no surprise that they continue to hold poor grades in my Portfolio Grader.
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badd7977-3dbf-41d7-8b99-c56955133320
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718448.0
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2022-11-22 00:00:00 UTC
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Interesting DDOG Put And Call Options For February 2023
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DDOG
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https://www.nasdaq.com/articles/interesting-ddog-put-and-call-options-for-february-2023
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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 February 2023 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 87 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 February 2023 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 $6.30. 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 $58.70 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $70.94/share today.
Because the $65.00 strike represents an approximate 8% 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 9.69% return on the cash commitment, or 40.66% 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 $80.00 strike price has a current bid of $6.10. If an investor was to purchase shares of DDOG stock at the current price level of $70.94/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $80.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 21.37% if the stock gets called away at the February 2023 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 $80.00 strike highlighted in red:
Considering the fact that the $80.00 strike represents an approximate 13% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.60% boost of extra return to the investor, or 36.08% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $70.94) to be 76%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
DENTSPLY SIRONA RSI
SGBX market cap history
Institutional Holders of IGBH
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 $80.00 strike highlighted in red: Considering the fact that the $80.00 strike represents an approximate 13% 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 February 2023 expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $80.00 strike highlighted in red: Considering the fact that the $80.00 strike represents an approximate 13% 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 February 2023 expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $80.00 strike highlighted in red: Considering the fact that the $80.00 strike represents an approximate 13% 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 February 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new February 2023 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 February 2023 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 $80.00 strike highlighted in red: Considering the fact that the $80.00 strike represents an approximate 13% 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 February 2023 expiration.
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f25132fb-9419-4b6f-9766-47d2bdcbf670
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718449.0
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2022-11-19 00:00:00 UTC
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2 Hypergrowth Stocks to Buy in 2022 and Beyond
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DDOG
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https://www.nasdaq.com/articles/2-hypergrowth-stocks-to-buy-in-2022-and-beyond-7
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nan
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nan
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In 2021, hypergrowth stocks were all the rage, and investors couldn't get enough of them. Unfortunately, 2022 was a completely different story, with this stock market segment suffering dramatically. Admittedly, some of this sell-off was deserved, as many of these stocks were overhyped. However, not every stock that suffered should stay down forever.
In fact, the downturn has led many of these stocks to sell at investible levels. Here are two growth stocks that could make great buys today:
1. Snowflake's growth opportunity remains intact
Snowflake (NYSE: SNOW) may have garnered one of the highest valuations in 2021. After topping out at more than 150 times sales during its IPO in late 2020, it spent most of 2021 valued around 100 times sales. It's hard to deny that the stock was overvalued, but it looks more investible at 31 times sales.
Snowflake's software allows its clients to store and process mountains of data on cloud servers. It can also funnel this data into various models, allowing businesses to make real-time decisions on the most up-to-date data. Clients find this solution incredibly useful, which is why they are rapidly expanding their usage of Snowflake's product, spending $171 this quarter for every $100 they spent last year.
This helped power product revenue growth of 83% to $466 million, an impressive rate. Still, 28 times sales -- what Snowflake trades at today -- is an expensive price tag for the business. That's especially true given that it's one that isn't generating any profits. However, Snowflake's massive $248 billion market opportunity in the cloud computing space by 2026 certainly leaves a lot of room for it to grow. As a result, I think Snowflake's stock makes a great buy, but investors need to be aware of the risk its valuation presents.
2. Datadog
With all of the various software programs companies utilize today (like Snowflake), it's critical to see that they are functioning correctly and that the data that flows into the programs are uninterrupted and secure. Datadog's (NASDAQ: DDOG) software allows IT teams to monitor the health of these programs while also providing security. As a testament to Datadog's offering, it was named a leader in the application performance monitoring and observability category while scoring the highest on its ability to execute by Gartner.
Its business is also growing rapidly, with revenue rising 61% year over year to $437 million in the third quarter. Like Snowflake, Datadog is also unprofitable, although its operating loss was only $31.3 million. Datadog is still expanding its reach, adding around 4,700 customers over the past 12 months to reach 22,200.
With that growth, it should be no surprise that Datadog's stock is highly valued, as the stock trades for 17 times sales. However, Datadog is in the early stages of its expansion, as only 16% of its customer base uses six or more products versus the 80% that use two or more. I think the stock is a strong buy here, as the growth over the next year will bring the stock to a more reasonable level.
Rapidly growing companies will almost always be highly valued. So the question becomes: "Is the company too richly valued to be a worthy investment?" While this requires a deep dive into a business's financials, growth rate, and market opportunity, the first step is finding companies that meet the rapid growth criteria. I think these two growth stocks are a great place to start, and they will likely remain top growth companies for many years.
10 stocks we like better than Snowflake Inc.
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 Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 7, 2022
Keithen Drury has positions in Datadog and Snowflake Inc. The Motley Fool has positions in and recommends Datadog and Snowflake Inc. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog's (NASDAQ: DDOG) software allows IT teams to monitor the health of these programs while also providing security. Clients find this solution incredibly useful, which is why they are rapidly expanding their usage of Snowflake's product, spending $171 this quarter for every $100 they spent last year. However, Snowflake's massive $248 billion market opportunity in the cloud computing space by 2026 certainly leaves a lot of room for it to grow.
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Datadog's (NASDAQ: DDOG) software allows IT teams to monitor the health of these programs while also providing security. Here are two growth stocks that could make great buys today: 1. As a result, I think Snowflake's stock makes a great buy, but investors need to be aware of the risk its valuation presents.
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Datadog's (NASDAQ: DDOG) software allows IT teams to monitor the health of these programs while also providing security. With that growth, it should be no surprise that Datadog's stock is highly valued, as the stock trades for 17 times sales. I think the stock is a strong buy here, as the growth over the next year will bring the stock to a more reasonable level.
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Datadog's (NASDAQ: DDOG) software allows IT teams to monitor the health of these programs while also providing security. Here are two growth stocks that could make great buys today: 1. While this requires a deep dive into a business's financials, growth rate, and market opportunity, the first step is finding companies that meet the rapid growth criteria.
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32e179cf-cb0e-4651-89b5-01e48c8b2064
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718450.0
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2022-11-18 00:00:00 UTC
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Nasdaq 100 Movers: NTES, ROST
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ntes-rost
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nan
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nan
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In early trading on Friday, shares of Ross Stores topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.1%. Year to date, Ross Stores has lost about 2.2% of its value.
And the worst performing Nasdaq 100 component thus far on the day is NetEase, trading down 3.5%. NetEase is lower by about 32.7% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 2.4%, and Palo Alto Networks, trading up 9.6% on the day.
VIDEO: Nasdaq 100 Movers: NTES, ROST
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Ross Stores topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.1%. And the worst performing Nasdaq 100 component thus far on the day is NetEase, trading down 3.5%. VIDEO: Nasdaq 100 Movers: NTES, ROST The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Ross Stores topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.1%. Year to date, Ross Stores has lost about 2.2% of its value. And the worst performing Nasdaq 100 component thus far on the day is NetEase, trading down 3.5%.
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In early trading on Friday, shares of Ross Stores topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.1%. And the worst performing Nasdaq 100 component thus far on the day is NetEase, trading down 3.5%. Two other components making moves today are Datadog, trading down 2.4%, and Palo Alto Networks, trading up 9.6% on the day.
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In early trading on Friday, shares of Ross Stores topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.1%. And the worst performing Nasdaq 100 component thus far on the day is NetEase, trading down 3.5%. VIDEO: Nasdaq 100 Movers: NTES, ROST 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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32668ee3-ec3b-441e-b21c-a1553be10647
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718451.0
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2022-11-18 00:00:00 UTC
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10 Best Tech Stocks to Buy Now in November (High Conviction)
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DDOG
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https://www.nasdaq.com/articles/10-best-tech-stocks-to-buy-now-in-november-high-conviction
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nan
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nan
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Today, I provide stock analysis on the 10 best tech stocks to buy now in November with significant long-term upside. I provide a blend of stocks, covering secular growth trends such as artificial intelligence, electric vehicles, the cloud, cybersecurity, big data, and more. These are the 10 best stocks to buy now.
*Stock prices used in the below video were during the trading day of Nov. 17, 2022. The video was published on Nov. 17, 2022.
10 stocks we like better than Tesla
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*Stock Advisor returns as of November 7, 2022
John Mackey, 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. Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric Cuka 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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I provide a blend of stocks, covering secular growth trends such as artificial intelligence, electric vehicles, the cloud, cybersecurity, big data, and more. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler.
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Eric Cuka has positions in Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Today, I provide stock analysis on the 10 best tech stocks to buy now in November with significant long-term upside. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler.
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These are the 10 best stocks to buy now. See the 10 stocks *Stock Advisor returns as of November 7, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Datadog, Microsoft, Nvidia, Snowflake Inc., Tesla, and Zscaler.
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433aa735-2c94-419d-847b-d0276e491e11
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718452.0
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2022-11-16 00:00:00 UTC
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Datadog (DDOG) Crossed Above the 50-Day Moving Average: What That Means for Investors
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-crossed-above-the-50-day-moving-average%3A-what-that-means-for-investors
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nan
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nan
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Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
DDOG could be on the verge of another rally after moving 5.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 8 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend.
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Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. Datadog, Inc. (DDOG): Free Stock Analysis Report
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With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support.
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Recently, DDOG broke out above the 50-day moving average, suggesting a short-term bullish trend. Datadog (DDOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. DDOG could be on the verge of another rally after moving 5.3% higher over the last four weeks.
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51aeca53-a840-43df-acd9-2c522b5fc066
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718453.0
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2022-11-16 00:00:00 UTC
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CarParts and Catalent have been highlighted as Zacks Bull and Bear of the Day
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DDOG
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https://www.nasdaq.com/articles/carparts-and-catalent-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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nan
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For Immediate Release
Chicago, IL – November 16, 2022 – Zacks Equity Research shares CarParts.com PRTS as the Bull of the Day and Catalent CTLT asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Datadog DDOG, NetEase NTES and Baidu BIDU.
Here is a synopsis of all five stocks.
Bull of the Day:
CarParts.com is a Zacks Rank #1 (Strong Buy) and it sports a C for Value and a B for Growth. This company just posted a good beat and has seen a solid move higher. Let’s explore more about this company in this Bull of The Day article.
Description
CarParts.com Inc. offers e-commerce automotive aftermarket, providing collision, engine and performance parts and accessories. CarParts.com Inc., formerly known as U.S. Auto Parts Network Inc., is headquartered in Torrance, California.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PRTS, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 101%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for ZS.
This quarter has moved from a loss of 14 cents to a loss of 13 cents.
Next quarter has increased from $0.00 to $0.03.
The full fiscal year 2022 has increased from a loss of $0.11 to a loss of $0.03.
Next fiscal year has seen the estimate move from -$0.12 to -$0.05.
Positive movement in earnings stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is low, but since the company isn’t making money there is no forward PE to lean on. The price to book is 2.4x which is below the 3x level that value investors need to see. Price to sales comes in at 0.42x and has room to grow. I see margins increasing in each of the last two quarters and with revenue growth slated to come in at 13%, this name looks very attractive.
Bear of the Day:
Catalent is a Zacks Rank #5 (Strong Sell) and recently missed earnings. Despite the recent earnings miss, the lower stock price has made the valuation that much more attractive. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Catalent, Inc. develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products. The Softgel and Oral Technologies segment provides formulation, development, and manufacturing services for soft capsules for use in a range of customer products, such as prescription drugs, over-the-counter medications, dietary supplements, and analytical development and testing services. The Oral and Specialty Delivery segment offers formulation, development, and manufacturing across a range of technologies along with integrated downstream clinical development and commercial supply solutions. The Clinical Supply Services segment offers manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics, and cell and gene therapies in clinical trials. The company was incorporated in 2007 and is headquartered in Somerset, New Jersey.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CTLT, I have three beats of the Zacks Consensus Estimate and one miss. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CTLT I see annual estimates moving lower.
The current fiscal year consensus number moved from $3.81 to $3.35 over the last 60 days.
The next year has moved from $4.53 to $3.86.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Markets Cool but Stay in the Green, Led by China Stocks
Markets were so enthused about another cooler inflation metric yesterday that not Russian rockets flying to Poland, nor further fallout from the FTX crypto collapse could keep the major indices from closing in the green. While off session highs, the Dow gained +0.17% on the day. The S&P 500, which sees all 11 sectors positive month-to-date thus far, was up +0.88% today. The Nasdaq earned +162 points, +1.45%, and is the only major average higher for the week thus far. The small-cap Russell 2000 beat the field, +1.50% on the day.
BlockFi Lending Co., which had been wavering to such an extent that FTX was planning to buy it out for $240 million, may be preparing to file for bankruptcy, as per a report in the Wall Street Journal Wednesday. Obviously, with FTX -$8 billion in the hole, this buyout is not going to happen. We may yet see that what the Fed “broke” by rising interest rates so aggressively over the past few months is, above all else, the crypto market. With a bit of luck, we may see this contagion contained, but keep an eye for a string of hardships in the crypto markets going forward.
Two are dead in the NATO member country Poland after reports of Russian missile strikes, which were ostensibly supposed to have been aimed at Ukrainian power plants at the onset of cold winter months, flew astray and landed across the border. For Russia’s part, they deny the charge and blame this story on false news reporting out of Poland. NATO allies, including the U.S., have independently verified the air strike.
Ukraine aside, the global economy hasn’t looked stronger in months, and much of this has to do with China reportedly lowering their Covid restrictions and bringing more factories, shipping facilities, etc. back on line. As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog and NetEase are +10%, while Baidu grew +9%.
Wednesday morning, we get a bevy of new economic information: Retail Sales, Import/Export Prices and Industrial Production/Capacity Utilization — all for October — look for modest gains across the board, with the exception of Industrial Production, which is expected to drift down moderately. We also await key tech stock reports after the close; if we are to see a continuing narrative of strong retail performance and something of a bounceback in semis, we may wish to seek them here.
Questions or comments about this article and/or its author? Click here>>
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baidu, Inc. (BIDU): Free Stock Analysis Report
NetEase, Inc. (NTES): Free Stock Analysis Report
CarParts.com, Inc. (PRTS): Free Stock Analysis Report
Catalent, Inc. (CTLT): 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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In addition, Zacks Equity Research provides analysis on Datadog DDOG, NetEase NTES and Baidu BIDU. Datadog, Inc. (DDOG): Free Stock Analysis Report Two are dead in the NATO member country Poland after reports of Russian missile strikes, which were ostensibly supposed to have been aimed at Ukrainian power plants at the onset of cold winter months, flew astray and landed across the border.
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In addition, Zacks Equity Research provides analysis on Datadog DDOG, NetEase NTES and Baidu BIDU. Datadog, Inc. (DDOG): Free Stock Analysis Report Earnings Estimates Revisions The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
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In addition, Zacks Equity Research provides analysis on Datadog DDOG, NetEase NTES and Baidu BIDU. Datadog, Inc. (DDOG): Free Stock Analysis Report Earnings Estimates Revisions The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
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In addition, Zacks Equity Research provides analysis on Datadog DDOG, NetEase NTES and Baidu BIDU. Datadog, Inc. (DDOG): Free Stock Analysis Report Earnings Estimates Revisions The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
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4cdabd2b-ff2c-4f49-913a-d132976943ac
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718454.0
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2022-11-16 00:00:00 UTC
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Datadog, Inc. (DDOG) Is a Trending Stock: Facts to Know Before Betting on It
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DDOG
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https://www.nasdaq.com/articles/datadog-inc.-ddog-is-a-trending-stock%3A-facts-to-know-before-betting-on-it
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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 +5.3% over the past month versus the Zacks S&P 500 composite's +11.4% change. The Zacks Internet - Software industry, to which Datadog belongs, has gained 5.1% 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.
Earnings Estimate Revisions
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.
For the current quarter, Datadog is expected to post earnings of $0.18 per share, indicating a change of -10% from the year-ago quarter. The Zacks Consensus Estimate has changed +12.7% over the last 30 days.
The consensus earnings estimate of $0.89 for the current fiscal year indicates a year-over-year change of +85.4%. This estimate has changed +31.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.05 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has changed +9.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Datadog is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Datadog, the consensus sales estimate for the current quarter of $447.39 million indicates a year-over-year change of +37.2%. For the current and next fiscal years, $1.65 billion and $2.2 billion estimates indicate +60.4% and +33.1% changes, 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
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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 F 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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Datadog, Inc. (DDOG): Free Stock Analysis Report 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.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Datadog, Inc. (DDOG): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Datadog (DDOG) has been one of the most searched-for stocks on Zacks.com lately. Datadog, Inc. (DDOG): Free Stock Analysis Report Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since 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. Datadog, Inc. (DDOG): Free Stock Analysis Report When earnings estimates for a company go up, the fair value for its stock goes up as well.
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007cd197-7b95-4726-adf3-c3949a71011f
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718455.0
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2022-11-15 00:00:00 UTC
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3 Cybersecurity Stocks With Room to Run in 2023
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DDOG
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https://www.nasdaq.com/articles/3-cybersecurity-stocks-with-room-to-run-in-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the bear market came barreling through 2022, growth stocks and tech stocks took the brunt of the beating. However, one theme that stood strong was cybersecurity. As a result, that should have investors looking at cybersecurity stocks to buy.
Let’s face the facts, though.
Cybersecurity stocks also took a good beating, as they too are growth and tech stocks. Not to mention, many of these names tend to sport elevated valuations. That made it easy for bears to short, as these stocks simply cannot support a high valuation in a rising-rate, bearish environment.
That said, spend an hour or two digging through the press releases and conference calls for the three stocks listed below. Those management teams are not shy whatsoever about how well business is going.
With that, let’s look at three cybersecurity stocks to buy.
PANW Palo Alto Networks $161.73
CRWD CrowdStrike $142.01
DDOG Datadog $78.12
Palo Alto Networks (PANW)
Source: vs148 / Shutterstock
Without a question, Palo Alto Networks (NASDAQ:PANW) is the blue-chip stock when we’re talking about cybersecurity stocks to buy.
The company recently reported its fourth-quarter results. Despite a terrible year for the markets, Palo Alto put up 30% revenue growth last year. For this year, management isn’t flinching. They expect 25% revenue growth this year, more than analysts were expecting at the time of the report.
During the conference call, management said many of its customers “increasingly have the confidence” to make longer-term deals with Palo Alto. Furthermore, “the vast majority of our customers continue on their investments here despite the expected short-term macro impacts.”
The truth is rather straightforward: Companies continue to invest in cybersecurity because they have to. In good markets or bad — and in strong economies or weak — cyber-criminals are constantly at work. They are looking to hack, steal and sell customer information. So regardless of whether companies are in prosperous times or lean times, they need to keep their defensive systems engaged.
CrowdStrike (CRWD)
Source: T. Schneider / Shutterstock.com
When we look outside of Palo Alto, we start to find higher growth stocks like CrowdStrike (NASDAQ:CRWD). At the same time, that also means we find cybersecurity stocks with higher valuations.
For example, this company sports trailing revenue growth of 61% — that’s not a typo, 61%!
For FY 2023, estimates call for 54% growth, then 32.5% growth or more in each of the next three fiscal years. While it’s possible that these estimates do not come to fruition, it shows just how strong the growth is that this company is enjoying right now.
While CrowdStrike is not yet profitable on a GAAP basis, it continues to generate strong non-GAAP earnings. Consensus estimates call for this year’s results to double to $1.32 a share, then grow to more than $4 a share in the next three years. When the company reported its second-quarter earnings on Aug. 30, it delivered a top- and bottom-line beat. However, more impressively, it raised its full-year earnings and revenue outlook.
This company is growing like a weed and it doesn’t look ready to stop anytime soon.
Datadog (DDOG)
Source: Song_about_summer / Shutterstock
Last but certainly not least, we have Datadog (NASDAQ:DDOG). With a market cap of $24.808 billion, it’s certainly not a small company. However, Datadog is the smallest of the three companies on this list. Furthermore, the company went public just before Covid-19 hit, making its public debut in the second half of 2019. Since then, it’s been a bit of a rollercoaster.
Shares sank 42% amid the Covid-19 selloff, then exploded higher by almost 600% in just over six quarters. However, after coughing up two-thirds of its value, investors are now on the prowl for a potential bargain.
This company has a lot of operational similarities to CrowdStrike.
For instance, Datadog is also non-GAAP profitable, but operating at a GAAP loss. Also like CrowdStrike, the company delivered an earnings and revenue beat last quarter, then raised its full-year guidance. While these stocks are not yet being rewarded for these beat-and-raise quarters, they will be eventually.
Datadog actually generates a better operating margin than CrowdStrike, but its growth profile is a tad bumpier. Analysts expect about 61% revenue growth this year, then 34% growth next year. In 2025 and 2026, consensus estimates accelerate, calling for 35% and 44.5% growth, respectively.
If this company can flip to positive GAAP operating margins, then look out.
On the date of publication, Bret Kenwell 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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Cybersecurity Stocks With Room to Run 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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PANW Palo Alto Networks $161.73 CRWD CrowdStrike $142.01 DDOG Datadog $78.12 Palo Alto Networks (PANW) Source: vs148 / Shutterstock Without a question, Palo Alto Networks (NASDAQ:PANW) is the blue-chip stock when we’re talking about cybersecurity stocks to buy. Datadog (DDOG) Source: Song_about_summer / Shutterstock Last but certainly not least, we have Datadog (NASDAQ:DDOG). That made it easy for bears to short, as these stocks simply cannot support a high valuation in a rising-rate, bearish environment.
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PANW Palo Alto Networks $161.73 CRWD CrowdStrike $142.01 DDOG Datadog $78.12 Palo Alto Networks (PANW) Source: vs148 / Shutterstock Without a question, Palo Alto Networks (NASDAQ:PANW) is the blue-chip stock when we’re talking about cybersecurity stocks to buy. Datadog (DDOG) Source: Song_about_summer / Shutterstock Last but certainly not least, we have Datadog (NASDAQ:DDOG). CrowdStrike (CRWD) Source: T. Schneider / Shutterstock.com When we look outside of Palo Alto, we start to find higher growth stocks like CrowdStrike (NASDAQ:CRWD).
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PANW Palo Alto Networks $161.73 CRWD CrowdStrike $142.01 DDOG Datadog $78.12 Palo Alto Networks (PANW) Source: vs148 / Shutterstock Without a question, Palo Alto Networks (NASDAQ:PANW) is the blue-chip stock when we’re talking about cybersecurity stocks to buy. Datadog (DDOG) Source: Song_about_summer / Shutterstock Last but certainly not least, we have Datadog (NASDAQ:DDOG). InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the bear market came barreling through 2022, growth stocks and tech stocks took the brunt of the beating.
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PANW Palo Alto Networks $161.73 CRWD CrowdStrike $142.01 DDOG Datadog $78.12 Palo Alto Networks (PANW) Source: vs148 / Shutterstock Without a question, Palo Alto Networks (NASDAQ:PANW) is the blue-chip stock when we’re talking about cybersecurity stocks to buy. Datadog (DDOG) Source: Song_about_summer / Shutterstock Last but certainly not least, we have Datadog (NASDAQ:DDOG). Cybersecurity stocks also took a good beating, as they too are growth and tech stocks.
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36534257-705e-454e-9c5f-0c8979dabc44
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718456.0
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2022-11-15 00:00:00 UTC
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Markets Cool but Stay in the Green, Led by Chinese Stocks
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DDOG
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https://www.nasdaq.com/articles/markets-cool-but-stay-in-the-green-led-by-chinese-stocks
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nan
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nan
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Markets were so enthused about another cooler inflation metric this morning that not Russian rockets flying to Poland, nor further fallout from the FTX crypto collapse could keep the major indices from closing in the green. While off session high, the Dow gained +0.17% on the day. The S&P 500, which sees all 11 sectors positive month-to-date thus far, was up +0.88% today. The Nasdaq earned +162 points, +1.45%, and is the only major average higher for the week thus far. The small-cap Russell 2000 beat the field, +1.50% on the day.
BlockFi Lending Co., which had been wavering to such an extent that FTX was planning to buy it out for $240 million, may be preparing to file for bankruptcy, as per a report in the Wall Street Journal today. Obviously, with FTX -$8 billion in the hole, this buyout is not going to happen. We may yet see that what the Fed “broke” by rising interest rates so aggressively over the past few months is, above all else, the crypto market. With a bit of luck, we may see this contagion contained, but keep an eye for a string of hardships in the crypto markets going forward.
Two are dead in the NATO member country Poland after reports of Russian missile strikes, which were ostensibly supposed to have been aimed at Ukrainian power plants at the onset of cold winter months, flew astray and landed across the border. For Russia’s part, they deny the charge and blame this story on false news reporting out of Poland. NATO allies, including the U.S., are currently trying to verify the air strike.
Ukraine aside, the global economy hasn’t looked stronger in months, and much of this has to do with China reportedly lowering their Covid restrictions and bringing more factories, shipping facilities, etc. back on line. As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog DDOG and NetEase NTES are +10%, Baidu BIDU grew +9% and Pinduoduo PDD +8.5%.
Tomorrow morning, we get a bevy of new economic information: Retail Sales, Import/Export Prices and Industrial Production/Capacity Utilization — all for October — look for modest gains across the board, with the exception of Industrial Production, which is expected to drift down moderately. We also await Target TGT earnings ahead of the bell, and NVIDIA NVDA and Cisco Systems CSCO after the close; if we are to see a continuing narrative of strong retail performance and something of a bounceback in semis, we may wish to seek them here.
Questions or comments about this article and/or its author? Click here>>
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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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Target Corporation (TGT): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Baidu, Inc. (BIDU): Free Stock Analysis Report
NetEase, Inc. (NTES): Free Stock Analysis Report
Pinduoduo Inc. Sponsored ADR (PDD): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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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As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog DDOG and NetEase NTES are +10%, Baidu BIDU grew +9% and Pinduoduo PDD +8.5%. Datadog, Inc. (DDOG): Free Stock Analysis Report Two are dead in the NATO member country Poland after reports of Russian missile strikes, which were ostensibly supposed to have been aimed at Ukrainian power plants at the onset of cold winter months, flew astray and landed across the border.
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As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog DDOG and NetEase NTES are +10%, Baidu BIDU grew +9% and Pinduoduo PDD +8.5%. Datadog, Inc. (DDOG): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report
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As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog DDOG and NetEase NTES are +10%, Baidu BIDU grew +9% and Pinduoduo PDD +8.5%. Datadog, Inc. (DDOG): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report
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Today, you can download 7 Best Stocks for the Next 30 Days. As investors begin to unwind some of their risk-off positions, we’re seeing many tech and e-commerce companies in China among the best-performing stocks of the day: Datadog DDOG and NetEase NTES are +10%, Baidu BIDU grew +9% and Pinduoduo PDD +8.5%. Datadog, Inc. (DDOG): Free Stock Analysis Report
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94e7e0b4-2fa8-4c31-a4d6-982b92b5d5ad
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718457.0
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2022-11-15 00:00:00 UTC
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Why Datadog, MongoDB, and Atlassian Rallied Big Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-mongodb-and-atlassian-rallied-big-today
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nan
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nan
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What happened
Shares of cloud-based enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. ET.
Their moves higher were likely due to industrywide and macroeconomic forces -- specifically, Tuesday morning's release of the October Producer Price Index report, which showed inflation by that measure was lower than expected. Additionally, some high-profile hedge funds and family offices issued their third-quarter 13F filings this week, and those reports showed some prominent investors have been increasing their positions in software stocks, especially Datadog.
So what
The Producer Price Index (PPI), which measures the wholesale prices that companies are paying for commodities, goods, and services, rose by just 0.2% month over month in October, lower than the 0.4% increase that analysts had expected. That result dovetails nicely with last week's Consumer Price Index (CPI) report, which also came in lower than expected and caused a similar surge in technology stocks following its release.
Thus, October's numbers seem to show that the Federal Reserve is making tangible progress in its fight against inflation. In response to the news, long-term bond yields declined; the 10-year Treasury Bond yield was down by about 9 basis points Tuesday to 3.773% as of this writing, well below its recent peak of 4.333% on Oct. 21.
As software-as-a-service (SaaS) stocks are long-duration assets with the bulk of their earnings and cash flows well out into the future, lower long-term yields enhance their values as well, since lower long-term discount rates boost the value of those future earnings.
In addition, some prominent investors scooped up shares of beaten-down software stocks in the third quarter. Notably, the Duquesne Family Office, run by famous George Soros acolyte Stan Druckenmiller, increased its Datadog position by 164%, making it the family office's eighth-largest position. In addition, Tiger Global Management, a prominent tech-focused hedge fund, increased its Datadog position by 218% last quarter, making it the firm's seventh-largest position. Tiger Global also increased its Atlassian position by 13%, making it the firm's 11th-largest position.
Datadog also saw some recent insider buying, with Director Matthew Jacobson, who is also the general partner at venture capital firm Iconiq Partners, buying some $70 million worth of Datadog stock on behalf of Iconiq on the open market between Nov. 7 and Nov. 9. Disclosures of the trades were made last week and Monday.
Now what
Have these top-of-the-class SaaS stocks bottomed? It's difficult to say. Despite their year-to-date declines, even after today's bounce, Datadog, MongoDB, and Atlassian still trade at 18, 11.5, and 12.5 times sales, respectively.
Those are not exactly cheap valuations, and they leave these all-star growth companies with high bars to clear. If interest rates stay persistently high, they may find clearing them difficult to do.
Still, there is no denying the terrific growth numbers these companies have been putting up lately -- in the third quarter, Datadog grew 61.4% and Atlassian maintained a 31.5% growth rate. MongoDB grew 52.8% in the second quarter -- its third quarter results will likely be reported in early December.
Should the Federal Reserve succeed in bringing inflation back down without causing a severe recession, these companies could have more upside. After all, all of them help their clients become more efficient and productive, which can help enterprises mitigate the impacts of inflation.
Still, investors shouldn't anticipate these stocks making a quick recovery to the all-time highs they touched in 2021, as I don't anticipate that either ultra-low interest rates or the heady growth rates seen during the pandemic digitization push will return anytime soon.
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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, Datadog, 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 enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. Their moves higher were likely due to industrywide and macroeconomic forces -- specifically, Tuesday morning's release of the October Producer Price Index report, which showed inflation by that measure was lower than expected. Additionally, some high-profile hedge funds and family offices issued their third-quarter 13F filings this week, and those reports showed some prominent investors have been increasing their positions in software stocks, especially Datadog.
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What happened Shares of cloud-based enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. Their moves higher were likely due to industrywide and macroeconomic forces -- specifically, Tuesday morning's release of the October Producer Price Index report, which showed inflation by that measure was lower than expected. In addition, Tiger Global Management, a prominent tech-focused hedge fund, increased its Datadog position by 218% last quarter, making it the firm's seventh-largest position.
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What happened Shares of cloud-based enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. Additionally, some high-profile hedge funds and family offices issued their third-quarter 13F filings this week, and those reports showed some prominent investors have been increasing their positions in software stocks, especially Datadog. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Billy Duberstein has no position in any of the stocks mentioned.
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What happened Shares of cloud-based enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. In addition, some prominent investors scooped up shares of beaten-down software stocks in the third quarter. If interest rates stay persistently high, they may find clearing them difficult to do.
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b83dc2c6-a998-4dcb-ace3-d49dee86166c
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718458.0
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2022-11-15 00:00:00 UTC
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Nasdaq 100 Movers: ORLY, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-orly-ddog
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nan
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nan
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In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.5%. Year to date, Datadog has lost about 52.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 1.7%. O'Reilly Automotive is showing a gain of 14.8% looking at the year to date performance.
Two other components making moves today are Regeneron Pharmaceuticals, trading down 1.4%, and Pinduoduo, trading up 8.3% on the day.
VIDEO: Nasdaq 100 Movers: ORLY, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: ORLY, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 1.7%. O'Reilly Automotive is showing a gain of 14.8% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: ORLY, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.5%. Year to date, Datadog has lost about 52.4% of its value.
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VIDEO: Nasdaq 100 Movers: ORLY, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.5%. And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 1.7%.
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VIDEO: Nasdaq 100 Movers: ORLY, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is O'Reilly Automotive, trading down 1.7%. O'Reilly Automotive is showing a gain of 14.8% looking at the year to date performance.
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7fd6f4ea-2636-48f3-8f16-a2f09d01cc55
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718459.0
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2022-11-14 00:00:00 UTC
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Stanley Druckenmiller's Firm Buys The Dip in Amazon, Meta
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DDOG
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https://www.nasdaq.com/articles/stanley-druckenmillers-firm-buys-the-dip-in-amazon-meta
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nan
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nan
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Stanley Druckenmiller’s family office Duquesne recently filed its Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The report, 45 days after the end of the quarter, shows what Duquesne’s holdings were at the end of the third quarter.
Duquesne increased its number of holdings by roughly 50% quarter over quarter, going from 43 positions at the end of Q2 to 65 in Q3 (up 51%). Further, the reported value jumped from $1.382 billion to $1.763 billion.
The main takeaway? That Drunkenmiller & Co. were busy buying the dip. Specifically, they are buying the dip in beaten-down tech.
Drunkenmiller Buys the Dip in Amazon, Meta; Lowers Microsoft Stake
Druckenmiller’s Duquesne bought 906,250 shares of Amazon (US:AMZN) in the quarter. At current prices, that’s good for a stake of roughly $90 million. The firm also bought Meta (US:META), but on a much smaller scale with 160,360 shares. At current prices, that’s good for a stake of about $18.3 million.
At the end of Q3, the firm owned both stocks at higher prices, with a cost basis of $113 a share for Amazon and $135.68 a share for Meta. Amazon is the firm’s third-largest position.
Elsewhere in big tech, Drunkenmiller slashed the firm’s stake in Microsoft, going from more than 740,000 shares down to 193,535 shares.
Buying Tech, Eli Lilly
The firm was also busy outside of mega-cap tech as well. Duquesne more than doubled its stake in Datadog (US:DDOG) from ~298,000 shares to more than 789,000.
Further, it nearly tripled its stake in Workday (US:WDAY) from 82,500 to 240,925 shares. Drunkenmiller also tripled his stake in Palo Alto Networks (US:PANW) to 154,848 shares.
Drunkenmiller increased his stake in Eli Lilly (US:LLY) by more than 60% to roughly 485,000 shares. Eli Lilly is now the firm’s second-largest position beyond Coupang (US:CPNG). While Duquesne did not alter the position size of Coupang last quarter, it’s still more than double its Eli Lilly stake (with its Coupang position valued at $323 million at the end of Q3).
Duquesne’s Sales
The firm closed positions in Phillips 66 (US:PSX) and Westlake Chemical (US:WLK).
It reduced its holdings in Antero Resources (US:AR) by 72% and Freeport-McMoRan (US:FCX) by 63.9%. Lastly, Duquesne reduced its stake in Moderna (US:MRNA) by roughly 90%.
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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Duquesne more than doubled its stake in Datadog (US:DDOG) from ~298,000 shares to more than 789,000. Drunkenmiller also tripled his stake in Palo Alto Networks (US:PANW) to 154,848 shares. Drunkenmiller increased his stake in Eli Lilly (US:LLY) by more than 60% to roughly 485,000 shares.
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Duquesne more than doubled its stake in Datadog (US:DDOG) from ~298,000 shares to more than 789,000. Drunkenmiller Buys the Dip in Amazon, Meta; Lowers Microsoft Stake Druckenmiller’s Duquesne bought 906,250 shares of Amazon (US:AMZN) in the quarter. Buying Tech, Eli Lilly The firm was also busy outside of mega-cap tech as well.
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Duquesne more than doubled its stake in Datadog (US:DDOG) from ~298,000 shares to more than 789,000. Drunkenmiller Buys the Dip in Amazon, Meta; Lowers Microsoft Stake Druckenmiller’s Duquesne bought 906,250 shares of Amazon (US:AMZN) in the quarter. Elsewhere in big tech, Drunkenmiller slashed the firm’s stake in Microsoft, going from more than 740,000 shares down to 193,535 shares.
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Duquesne more than doubled its stake in Datadog (US:DDOG) from ~298,000 shares to more than 789,000. Elsewhere in big tech, Drunkenmiller slashed the firm’s stake in Microsoft, going from more than 740,000 shares down to 193,535 shares. Drunkenmiller increased his stake in Eli Lilly (US:LLY) by more than 60% to roughly 485,000 shares.
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296260aa-77b0-4ee4-97f5-31b088ea8041
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718460.0
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2022-11-14 00:00:00 UTC
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Wall Street Analysts Think Datadog (DDOG) Could Surge 73%: Read This Before Placing a Bet
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DDOG
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https://www.nasdaq.com/articles/wall-street-analysts-think-datadog-ddog-could-surge-73%3A-read-this-before-placing-a-bet
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nan
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nan
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Shares of Datadog (DDOG) have gained 8.8% over the past four weeks to close the last trading session at $82.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $142.83 indicates a potential upside of 73.4%.
The average comprises 18 short-term price targets ranging from a low of $120 to a high of $175, with a standard deviation of $17.41. While the lowest estimate indicates an increase of 45.7% from the current price level, the most optimistic estimate points to an 112.5% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for DDOG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why DDOG Could Witness a Solid Upside
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 to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 31.3%, as nine estimates have moved higher compared to no negative revision.
Moreover, DDOG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much DDOG could gain, the direction of price movement it implies does appear to be a good guide.
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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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Shares of Datadog (DDOG) have gained 8.8% over the past four weeks to close the last trading session at $82.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for DDOG, an impressive average price target is not the only indicator of a potential upside. Why DDOG Could Witness a Solid Upside 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 to expect an upside in the stock.
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Why DDOG Could Witness a Solid Upside 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 to expect an upside in the stock. Shares of Datadog (DDOG) have gained 8.8% over the past four weeks to close the last trading session at $82.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for DDOG, an impressive average price target is not the only indicator of a potential upside.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much DDOG could gain, the direction of price movement it implies does appear to be a good guide. Shares of Datadog (DDOG) have gained 8.8% over the past four weeks to close the last trading session at $82.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for DDOG, an impressive average price target is not the only indicator of a potential upside.
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Shares of Datadog (DDOG) have gained 8.8% over the past four weeks to close the last trading session at $82.35, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for DDOG, an impressive average price target is not the only indicator of a potential upside. Why DDOG Could Witness a Solid Upside 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 to expect an upside in the stock.
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5c57b848-d911-49c0-a924-f9785075611c
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718461.0
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2022-11-14 00:00:00 UTC
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Datadog (DDOG) Just Overtook the 20-Day Moving Average
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-just-overtook-the-20-day-moving-average
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nan
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nan
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After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
DDOG could be on the verge of another rally after moving 8.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case only gets stronger once investors take into account DDOG's positive earnings estimate revisions. There have been 8 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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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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After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
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The bullish case only gets stronger once investors take into account DDOG's positive earnings estimate revisions. Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog, Inc. (DDOG): Free Stock Analysis Report After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
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After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. DDOG could be on the verge of another rally after moving 8.8% higher over the last four weeks.
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42e7a73f-396a-4144-a03b-8cdcad72b58b
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718462.0
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2022-11-14 00:00:00 UTC
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‘Hold Fire,’ Says Jim Cramer on These 3 ‘Strong Buy’ Stocks
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DDOG
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https://www.nasdaq.com/articles/hold-fire-says-jim-cramer-on-these-3-strong-buy-stocks
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nan
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nan
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After last week’s better-than-expected October inflation data, stocks saw broad gains. The tech-heavy NASDAQ led the way with a jump of 7.67%, and the S&P 500 was more than 5% up at the end of the week. Gains like that can spread out, and cloud stocks were among the NASDAQ’s best performers.
Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, points out that this sharp rally gives investors a chance to clear the chaff out of their cloud stock portfolios and focus on high-quality names.
“I recommend using this incredible rebound actually as a rare opportunity to sell the weaker cloud stocks into strength. That said, some of them might be worth keeping, but only the highest quality names,” Cramer said.
Cramer lists several factors that he used to weed out the less attractive cloud stocks, including a market cap below $1 billion and an expectation of near- to mid-term unprofitability. From the remainder, Cramer picked out the three that he likes best, the ones he believes investors should hang on to. If you own some of these names, and are thinking of dumping them, Cramer advises that you hold your fire for the moment.
In fact, Cramer is not the only one singing these stocks’ praises. According to the TipRanks platform – each gets a ‘Strong Buy’ from the analyst consensus, and each shows plenty of upside potential for the year ahead. Here are the details, along with commentaries from the Street’s analysts.
CrowdStrike Holdings (CRWD)
First up is CrowdStrike, a leader in the cybersecurity world. CrowdStrike’s line of products, featuring its Falcon Endpoint Protection, offers users the industry standard in digital security for online and network protection. The company’s product line includes a wide range of cloud modules through the Software-as-a-Service subscription model.
CrowdStrike wont reportits next quarterly numbers until the end of this month, but we can get a feel for the company’s strong niche by looking at its last quarterly release, for fiscal 2Q23.
To start with, the company has recorded powerful gain in revenue and earnings in recent quarters. The most recent report showed $535.2 million at the top line, an increase of 58% year-over-year; the gain was driven by a 60% y/y increase in subscription revenue, to $506.2 million. Annual recurring revenue (ARR), an important indicator of future income, rose to $2.14 billion in fiscal Q2, up 59% y/y.
The company’s top line gains unsurprisingly came along with solid additions to the customer base. CrowdStrike reported a record quarterly gain of 1,741 new customers in its 2Q23 release.
These gains all led to the fifth quarter in a row of sequential EPS gains. The non-GAAP EPS was reported at 36 cents, up from 31 cents in fiscal Q2 and more than double the year-ago figure.
Lastly, the company showed an impressive cash flow in the quarter. Cash from operations rose 94% and hit a total of $210 million. This included an 84% y/y gain in free cash flow, to $136 million.
At the same time that the company has been posting solid financial results, its share price has also suffered from the twin blows in increasing inflation and increasing interest rates. CRWD stock is 30% down so far this year.
But CrowdStrike has deep pockets to weather a storm, and has made Cramer’s list of favorite cloud computing stocks. And Cramer is hardly the only one to take an upbeat position on CrowdStrike.
Standing squarely in the bull camp, Baird analyst Shrenik Kothari rates CRWD an Outperform (i.e. Buy), and his $237 price target implies a robust upside of 66% for the next 12 months. (To watch Kothari’s track record, click here)
Backing his bullish view, Kothari writes: “We view CRWD as the best-of-breed leader in this space, with impeccable track record and extended runway in its target markets to support durability of future growth. We believe CrowdStrike will meet its short-term (FY23) and mid-term (FY24) targets, even if new business slows due to protracted recession. Our bullish stance rests on CRWD maintaining leadership in the EPP market, cloud-security trends to accelerate (new CIEM capability), and new products such as Falcon LogScale..."
Tech stocks attract plenty of Wall Street attention, and CRWD shares have no fewer than 27 recent analyst reviews. These include 26 Buys against just 1 Hold, for a Strong Buy consensus rating. The price per share comes in at $143.12, and the average price target of $234.54 implies an upside potential of ~64% in the next 12 months. (See CRWD stock forecast on TipRanks)
ServiceNow, Inc. (NOW)
The second stock on our list of Cramer’s cloud picks is ServiceNow, a software firm offering IT management packages as cloud subscriptions. The company is based in Silicon Valley, and its suite of cloud products lets users improve their help desk functionality through better tracking and improvement of workflow management. The company generates solid revenues, but has seen its share price fall 37% this year.
The company has seen both the top and bottom lines rise consistently in recent years, through a succession of quarterly reports showing sequential gains. In the most recent quarter, 3Q22, ServiceNow reported $1.83 billion in total revenues, up 21% year-over-year. This total included a 22% increase in subscription revenue, to $1.74 billion. ServiceNow’s earnings came to $1.96 per diluted share, a 26% gain year-over-year.
Two additional metrics will serve to show ServiceNow’s strong position. First, the company reported a 60% y/y jump during Q3 in the number of customers paying over $10 million in annual contract value – a key point, that shows ServiceNow is receiving a solid return on its marketing and retention efforts. And second, the current remaining performance obligation at the end of Q3 came to $5.87 billion, up 18% y/y and indicating a solid base going forward.
This stock has caught the eye of JMP analyst Patrick Walravens, who, like Cramer, sees it as a solid option for investors.
“We continue to view ServiceNow as an excellent opportunity for long-term capital appreciation for several reasons including that it has superior, organically built platform and product set, addresses a huge TAM estimated to grow to $175B by 2024, is ably led by veteran software CEO Bill McDermott and CFO Gina Mastantuono, and is executing very well in a challenging macroeconomic environment, in part because of its focus on cost savings, productivity and quick time to value," Walravens opined.
These comments support Walravens' Outperform (i.e. Buy) rating, while his $553 price target indicates room for ~35% upside potential by the end of next year. (To watch Walravens’ track record, click here)
Overall, the Street’s analysts are drawn to essential services, such as IT management, and ServiceNow has picked up 21 analyst reviews recently, with a breakdown of 20 Buys and 1 Hold to support the Strong Buy consensus view. The current trading price is $409.91, and the average price target of $508.71 suggests a 24% share appreciation in the next 12 months. (See NOW stock forecast on TipRanks)
Datadog, Inc. (DDOG)
Last on today’s ‘Cramer pick’ list is Datadog, a company offering its customers cloud-based observability tools – the tools necessary to monitor, track, and secure cloud-based apps and platforms in real time. The tools offered in Datadog’s packages include automation, source control and bug tracking, troubleshooting and optimization, and basic monitoring and instrumentation. Customers can navigate through their logs, following key metrics and traces, allowing proactive product management based on high-quality data collation.
All in all, Datadog’s services fill a vital niche for app developers and site masters, platform managers and cloud activity monitors. These customers are willing to pay a premium for high-end tools, and that has been reflected in Datadog’s financial results in recent quarters. The company has been consistently beating the forecasts on EPS; in the recent 3Q22 report, the diluted EPS of 23 cents came in 7 cents, or 43%, above expectations.
That income was derived from total revenues that grew 61% year-over-year to reach $436.5 million. The company also saw solid cash flows, with cash from operations hitting $83.6 million and including $67.1 million in free cash flow. Datadog had $1.8 billion in liquid assets, including cash, on the books as of September 30.
In a metric that bodes well for this company going into next year, there was a 44% y/y increase in the number of customers with at least $100,000 in annual recurring revenue (ARR). The company reported 2,600 of these ‘high-yield’ customers as of the end of 3Q22, compared to 1,800 in the year-ago period.
Analyst Kingsley Crane, covering Datadog for Canaccord, sees a clear path forward for the company to maintain profitability. He writes, “Looking to FY23, we see mid- to high-30% growth as feasible but expect initial guidance to come in near 30%. We think hyperscaler spend rationalization is unfairly dominating the DDOG story, opening up room to be bullish.... At these levels, we see an attractive set-up with potential growth upside in FY23 on reset expectations. Product leadership and long-term opportunity make a limited downside digestible.”
To this end, Crane rates DDOG shares a Buy, with a $110 price target implying an upside of 34% for the coming year. (To watch Crane’s track record, click here.)
As with the stocks above, this one has also picked up plenty of love from Wall Street. The 20 recent positive reviews outweigh the negatives, for a 20 to 6 breakdown of Buys versus Holds – and a Strong Buy analyst consensus rating. The shares have a trading price of $82.35 and the $110.74 average price target suggests a 34% one-year upside potential. (See DDOG stock forecast on TipRanks)
To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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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We think hyperscaler spend rationalization is unfairly dominating the DDOG story, opening up room to be bullish.... At these levels, we see an attractive set-up with potential growth upside in FY23 on reset expectations. (See NOW stock forecast on TipRanks) Datadog, Inc. (DDOG) Last on today’s ‘Cramer pick’ list is Datadog, a company offering its customers cloud-based observability tools – the tools necessary to monitor, track, and secure cloud-based apps and platforms in real time. Product leadership and long-term opportunity make a limited downside digestible.” To this end, Crane rates DDOG shares a Buy, with a $110 price target implying an upside of 34% for the coming year.
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(See NOW stock forecast on TipRanks) Datadog, Inc. (DDOG) Last on today’s ‘Cramer pick’ list is Datadog, a company offering its customers cloud-based observability tools – the tools necessary to monitor, track, and secure cloud-based apps and platforms in real time. We think hyperscaler spend rationalization is unfairly dominating the DDOG story, opening up room to be bullish.... At these levels, we see an attractive set-up with potential growth upside in FY23 on reset expectations. Product leadership and long-term opportunity make a limited downside digestible.” To this end, Crane rates DDOG shares a Buy, with a $110 price target implying an upside of 34% for the coming year.
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(See NOW stock forecast on TipRanks) Datadog, Inc. (DDOG) Last on today’s ‘Cramer pick’ list is Datadog, a company offering its customers cloud-based observability tools – the tools necessary to monitor, track, and secure cloud-based apps and platforms in real time. We think hyperscaler spend rationalization is unfairly dominating the DDOG story, opening up room to be bullish.... At these levels, we see an attractive set-up with potential growth upside in FY23 on reset expectations. Product leadership and long-term opportunity make a limited downside digestible.” To this end, Crane rates DDOG shares a Buy, with a $110 price target implying an upside of 34% for the coming year.
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Product leadership and long-term opportunity make a limited downside digestible.” To this end, Crane rates DDOG shares a Buy, with a $110 price target implying an upside of 34% for the coming year. (See NOW stock forecast on TipRanks) Datadog, Inc. (DDOG) Last on today’s ‘Cramer pick’ list is Datadog, a company offering its customers cloud-based observability tools – the tools necessary to monitor, track, and secure cloud-based apps and platforms in real time. We think hyperscaler spend rationalization is unfairly dominating the DDOG story, opening up room to be bullish.... At these levels, we see an attractive set-up with potential growth upside in FY23 on reset expectations.
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23a477f7-cc0f-4e27-8e25-74ea3b51f5ab
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718463.0
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2022-11-14 00:00:00 UTC
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2 Phenomenal Growth Stocks With "No Downside" to Buy Now, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-phenomenal-growth-stocks-with-no-downside-to-buy-now-according-to-wall-street
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nan
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nan
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Economic uncertainty has caused the stock market to crash this year. The Nasdaq Composite has tumbled 36% from its high, leaving the tech-heavy index deep in bear market territory. But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG).
Presently, there are 22 analysts with price targets on Cloudflare, and the lowest estimate is $50 per share. That implies 32% upside from its current price. Similarly, 26 analysts have a price target on Datadog, and the lowest estimate is $82 per share. That implies 22% upside from its current price.
In both cases, Wall Street is effectively saying there is no downside for shareholders. Of course, it is always possible to lose money in the stock market, but the bullish sentiment among analysts is noteworthy nonetheless. Cloudflare and Datadog currently trade at big discounts to their historical valuations, and that creates an attractive buying opportunity for patient investors.
Cloudflare: A leader in content delivery and cloud developer tools
Cloudflare provides cloud services and developer tools. Its platform accelerates and protects corporate applications and infrastructure, while eliminating the need to maintain complicated network hardware in private data centers. Cloudflare shares a direct connection with every major internet service provider and cloud provider, which positions its platform within 50 milliseconds of 95% of internet users worldwide.
That network architecture gives the company an advantage. Cloudflare is the fastest cloud provider in North America, Australia, Japan, and the majority of South America and Europe, topping rivals like Amazon Web Services and Fastly. Not surprisingly, it ranks as the market leader in content delivery network software, according to G2 Grid. But Cloudflare has distinguished itself in other areas as well.
Last year, Forrester Research recognized Cloudflare Workers as the market leader among edge development platforms, citing its speed and intuitive interface as key advantages. This year, Cloudflare redoubled its leadership position with new storage services. It announced D1 database for structured data in May, and it launched R2 Storage for unstructured data in September. Those products extend the utility of the Workers platform, enabling developers to build applications and websites without relying on external storage solutions.
Financially, Cloudflare is growing very quickly. Its customer count increased 18% to 156,000 over the past year, and the average customer spent 24% more during that time. In turn, third-quarter revenue climbed 47% to $253.9 million, and the company generated $42.7 million in cash from operating activities, up from a loss of $6.9 million in the same period last year.
Looking ahead, management puts its addressable market at $135 billion by 2024, meaning Cloudflare has hardly tapped its massive potential. Better yet, management says annualized revenue will grow fivefold to $5 billion over the next five years. That implies top line growth of 38% per year through 2027.
With that in mind, shares look relatively cheap at 13.7 times sales, and that valuation is an absolute bargain compared to the three-year average of 41.7 times sales. That's why this growth stock is a buy for long-term investors.
Datadog: A leader in observability software
Datadog provides monitoring and security software. Its platform analyzes signals produced by applications, networks, and infrastructure to help businesses keep their IT environments performing and secure. Datadog simplifies adoption with 600 prebuilt integrations, and its artificial intelligence (AI) engine Watchdog accelerates workflows by predicting issues and automating root cause analysis.
In June, research company Gartner recognized Datadog as the leader in application performance monitoring and observability for the second consecutive year, citing its Watchdog AI engine and its broad portfolio as key strengths. Not surprisingly, the company also enjoys a strong market presence in other observability software verticals, including cloud infrastructure monitoring and network monitoring.
Datadog recently issued a solid third-quarter earnings report. Its customer count climbed 28% to 22,200, and the average customer spent 30% more. In turn, revenue increased 61% to $437 million, and cash from operating activities rose 24% to $83.6 million. But Datadog has plenty of room to run in the coming years.
The company puts its addressable market at $62 billion in 2026, and its track record for rapid innovation should keep it on the cutting edge of observability software. In fact, Datadog recently introduced Cloud Cost Management, a product that helps businesses understand their cloud expenses by attributing spend to specific applications and services. That functionality is particularly relevant in the current economic environment, as it can help businesses operate more efficiently.
Currently, shares trade at 14.1 times sales, a steep discount compared to the three-year average of 38.6 times sales. That makes this growth stock an attractive investment right now, though it's worth reiterating the fact that every stock has downside risk.
10 stocks we like better than Cloudflare, Inc.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Fastly. The Motley Fool has positions in and recommends Amazon, Cloudflare, Inc., Datadog, and Fastly. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Last year, Forrester Research recognized Cloudflare Workers as the market leader among edge development platforms, citing its speed and intuitive interface as key advantages. Datadog simplifies adoption with 600 prebuilt integrations, and its artificial intelligence (AI) engine Watchdog accelerates workflows by predicting issues and automating root cause analysis.
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But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare: A leader in content delivery and cloud developer tools Cloudflare provides cloud services and developer tools. Last year, Forrester Research recognized Cloudflare Workers as the market leader among edge development platforms, citing its speed and intuitive interface as key advantages.
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But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare: A leader in content delivery and cloud developer tools Cloudflare provides cloud services and developer tools. Last year, Forrester Research recognized Cloudflare Workers as the market leader among edge development platforms, citing its speed and intuitive interface as key advantages.
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But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare: A leader in content delivery and cloud developer tools Cloudflare provides cloud services and developer tools. 10 stocks we like better than Cloudflare, Inc.
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8caf9070-cc76-4291-bf58-d625b323baec
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718464.0
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2022-11-12 00:00:00 UTC
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3 Growth Stocks to Buy In the Worst Nasdaq Bear Market In 10 Years
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DDOG
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-in-the-worst-nasdaq-bear-market-in-10-years
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nan
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nan
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A bear market is defined by a decline in the value of a financial asset or index of 20% (or more). Right now, the Nasdaq-100 technology index is down by 29% in 2022 so far, and if the year ended here, that would be its worst performance in the last decade. In fact, it would be the steepest annual drop since the 2008 global financial crisis.
But it doesn't have to be all bad news for investors. Bear markets tend to result in broad-based selling, which means many quality stocks get tossed aside -- and that spells opportunity for investors willing to put money to work, especially with the long term in mind.
A panel of Motley Fool contributors have identified Datadog (NASDAQ: DDOG), Pinterest (NYSE: PINS), and Arista Networks (NYSE: ANET) as three stocks to buy in the thick of this bear market. Here's why.
A critical cloud monitoring tool, and an optimistic tone
Anthony Di Pizio (Datadog): When it comes to trawling this bear market for quality opportunities, a company that has raised its 2022 sales guidance for three straight quarters might be a great place to start. Cloud computing has opened countless doors for businesses small and large, because it enables them to shift their operations online and it creates more touch points with customers without the need for additional physical stores.
But a business might find it challenging to monitor the performance of, or draw insights from, its expansive online presence. That's where Datadog comes in -- whether it's entertainment, healthcare, gaming, or retail, Datadog's platform is designed to rapidly alert businesses to technical issues for the fastest possible resolution.
Some problems might be almost invisible under normal circumstances; a particular webpage might be loading too slowly, or a specific customer segment in one geographic location might have trouble accessing the business's website. In any case, it's Datadog's job to shine a light on those glitches so they're quickly picked up.
The company just reported its financial results for the third quarter (ended Sept. 30). It grew its revenue by an eyewatering 61% to $437 million, prompting a raise in its full-year guidance to $1.654 billion at the high end of the range. It follows upward revisions in the first and second quarters, and Datadog is one of only a few companies with such an optimistic tone in this difficult economic environment. Many companies are actually slashing their forecasts instead.
Much of Datadog's growth is coming from large organizations, which makes sense because the bigger the business, the more reliant it would be on cloud-based infrastructure. In Q3, Datadog had 2,600 customers spending a minimum of $100,000 annually, marking a 44% jump year over year.
With Datadog stock down 61% from its all-time high, this might be one that was prematurely thrown out. That's an opportunity for investors who buy now.
A superior social media stock down big
Jamie Louko (Pinterest): Investors have smashed the dislike button on social media stocks, as many are struggling to retain users and have seen advertising revenue fall off a cliff. Take Meta Platforms (NASDAQ: META), for example. In Q3, revenue fell 4% year over year, and monthly active users increased by just 2% over the same period.
Pinterest, however, is bucking this trend. It has struggled over the past year, but the company looks like it's coming out the other side of the tunnel. The social media platform saw sequential user growth of 12 million in Q3, to 445 million monthly active users.
The company also grew monetization faster than its social media rivals in Q3. Snap (NYSE: SNAP) saw global average revenue per user (ARPU) drop 11% compared to the year-ago quarter, to $3.11. Comparatively, Pinterest increased its global ARPU by 11% over the same period, to $1.56. Snap's ARPU excluding North America and Europe also fell 9%, but Pinterest's ARPU in the same region skyrocketed 38% to $0.11.
How can Pinterest continue to attract ad spending while rivals are struggling? CEO Bill Ready said it best on the company's Q3 earnings call:
Pinterest is a unique place for advertisers because our users seek inspiration and discovery with intent and purpose. This has a number of implications. To begin with, we have on-platform, first-party signals like searches, saves, and board curation that translate into highly valuable and monetizable customer insights for advertisers.
This isn't coming at the expense of profits, however. The company has generated $61 million in net income and $591 million in free cash flow over the past 12 months.
Despite this competitive outperformance, Pinterest is trading at just 26 times free cash flow -- far below Snap's valuation of 120.5 times free cash flow. With Pinterest's fall alongside the Nasdaq, it might be the right time to buy a few shares of this superior social media stock.
The technology that powers modern data centers
Trevor Jennewine (Arista Networks): Arista specializes in data center networking. It provides the switches, routers, and wireless access points needed to create and connect networks, and adjacent software for network automation, telemetry, and security. Arista first brought its technology to the cloud, but it has since expanded into enterprise data centers and campus workspaces.
Management says its principal innovation is the Extensible Operating System (EOS), software that leans on artificial intelligence to keep networks performing and secure. A single version of EOS runs across every Arista switch and router, enabling customers to integrate their entire IT ecosystem -- from public clouds and private data centers to enterprise campus workspaces -- into a unified network.
That differentiates Arista from legacy vendors like Cisco, which tend to complicate network management by using different operating systems in different environments. Arista removes that complexity. EOS runs everywhere, which makes it easier for IT teams to upgrade software, test new features, and automate workflows. That lowers the total cost of network ownership for customers.
Arista has capitalized on that advantage to become the leader in high-speed data center networking. It currently holds 41.5% market share in 100G, 200G, and 400G switches (the fastest widely adopted switches on the market), while second-place Cisco holds 22.5% market share. That leaves Arista well positioned for the future. Trends like cloud computing and data-intensive applications (such as artificial intelligence and 5G) will continue to strain data centers, creating a need for faster networking solutions.
In spite of economic headwinds, Arista recently reported jaw-dropping financial results in Q3. Revenue soared 57% to $1.2 billion , and GAAP earnings climbed 61% to $1.13 per diluted share. But Arista still has plenty of room to run. Management puts its market opportunity at $35 billion by 2025, and that figure should continue to grow as data centers require faster networking solutions to keep pace with the ever-evolving IT world. That's why this growth stock is worth buying today.
10 stocks we like better than Datadog
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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. Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko has positions in Datadog and Pinterest. Trevor Jennewine has positions in Arista Networks and Pinterest. The Motley Fool has positions in and recommends Arista Networks, Datadog, Meta Platforms, Inc., and Pinterest. 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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A panel of Motley Fool contributors have identified Datadog (NASDAQ: DDOG), Pinterest (NYSE: PINS), and Arista Networks (NYSE: ANET) as three stocks to buy in the thick of this bear market. A critical cloud monitoring tool, and an optimistic tone Anthony Di Pizio (Datadog): When it comes to trawling this bear market for quality opportunities, a company that has raised its 2022 sales guidance for three straight quarters might be a great place to start. Cloud computing has opened countless doors for businesses small and large, because it enables them to shift their operations online and it creates more touch points with customers without the need for additional physical stores.
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A panel of Motley Fool contributors have identified Datadog (NASDAQ: DDOG), Pinterest (NYSE: PINS), and Arista Networks (NYSE: ANET) as three stocks to buy in the thick of this bear market. A critical cloud monitoring tool, and an optimistic tone Anthony Di Pizio (Datadog): When it comes to trawling this bear market for quality opportunities, a company that has raised its 2022 sales guidance for three straight quarters might be a great place to start. The social media platform saw sequential user growth of 12 million in Q3, to 445 million monthly active users.
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A panel of Motley Fool contributors have identified Datadog (NASDAQ: DDOG), Pinterest (NYSE: PINS), and Arista Networks (NYSE: ANET) as three stocks to buy in the thick of this bear market. A superior social media stock down big Jamie Louko (Pinterest): Investors have smashed the dislike button on social media stocks, as many are struggling to retain users and have seen advertising revenue fall off a cliff. The technology that powers modern data centers Trevor Jennewine (Arista Networks): Arista specializes in data center networking.
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A panel of Motley Fool contributors have identified Datadog (NASDAQ: DDOG), Pinterest (NYSE: PINS), and Arista Networks (NYSE: ANET) as three stocks to buy in the thick of this bear market. The company just reported its financial results for the third quarter (ended Sept. 30). With Pinterest's fall alongside the Nasdaq, it might be the right time to buy a few shares of this superior social media stock.
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2022-11-10 00:00:00 UTC
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Nasdaq 100 Movers: SGEN, TEAM
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-sgen-team
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In early trading on Thursday, shares of Atlassian topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.5%. Year to date, Atlassian has lost about 63.0% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 5.8%. Seagen is lower by about 15.9% looking at the year to date performance.
Two other components making moves today are Amgen, trading up 0.3%, and Datadog, trading up 14.2% on the day.
VIDEO: Nasdaq 100 Movers: SGEN, TEAM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of Atlassian topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.5%. And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 5.8%. VIDEO: Nasdaq 100 Movers: SGEN, TEAM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of Atlassian topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.5%. Year to date, Atlassian has lost about 63.0% of its value. And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 5.8%.
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In early trading on Thursday, shares of Atlassian topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.5%. And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 5.8%. Two other components making moves today are Amgen, trading up 0.3%, and Datadog, trading up 14.2% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 5.8%. Seagen is lower by about 15.9% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: SGEN, TEAM 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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2022-11-10 00:00:00 UTC
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After Plunging 18.4% in 4 Weeks, Here's Why the Trend Might Reverse for Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/after-plunging-18.4-in-4-weeks-heres-why-the-trend-might-reverse-for-datadog-ddog
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A downtrend has been apparent in Datadog (DDOG) lately with too much selling pressure. The stock has declined 18.4% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
Guide to Identifying Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for DDOG
The RSI reading of 29.95 for DDOG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering DDOG in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 31.3% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DDOG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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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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A downtrend has been apparent in Datadog (DDOG) lately with too much selling pressure. Why a Trend Reversal is Due for DDOG The RSI reading of 29.95 for DDOG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. A strong agreement among sell-side analysts covering DDOG in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 31.3% over the last 30 days.
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Why a Trend Reversal is Due for DDOG The RSI reading of 29.95 for DDOG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. A downtrend has been apparent in Datadog (DDOG) lately with too much selling pressure. A strong agreement among sell-side analysts covering DDOG in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 31.3% over the last 30 days.
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Why a Trend Reversal is Due for DDOG The RSI reading of 29.95 for DDOG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Moreover, DDOG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. A downtrend has been apparent in Datadog (DDOG) lately with too much selling pressure.
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A downtrend has been apparent in Datadog (DDOG) lately with too much selling pressure. Why a Trend Reversal is Due for DDOG The RSI reading of 29.95 for DDOG is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. A strong agreement among sell-side analysts covering DDOG in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 31.3% over the last 30 days.
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2022-11-09 00:00:00 UTC
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7 Tech Stocks to Buy at a Multi-Year Discount
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https://www.nasdaq.com/articles/7-tech-stocks-to-buy-at-a-multi-year-discount
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Discounted tech stocks to buy are plenty. The great tech wreck of 2022 is in stark contrast to the easy gains investors enjoyed between 2020-2021. With the pandemic, the associated lockdown, low interest rates, and the endless stimulus packages absent, tech stocks are at a multi-year discount.
Speculators are no longer willing to bet on unproven technology companies. They are shunning companies that are either too expensive, warned markets that growth will slow, or do not make a profit.
Now that they are out of favor, investors who missed out on the tremendous run-up before this year have another chance. Since no one can predict when the technology sell-off will end, long-term investors may minimize buying risks. Instead of buying full positions in discounted tech stocks, buy them in phases. That way, if a stock gets cheaper, buy-and-hold investors may buy the stock again to lower the price paid.
Be prepared to hold the companies for several quarters. The market sentiment is not about to turn positive and stay there. Similarly, a company’s business turnaround could take several quarters. Struggling firms might need to cut costs and foster growth before the business improves.
Symbol Company Price
ADBE Adobe $301.80
DDOG Datadog $67.19
NET Cloudflare $38.50
NOW ServiceNow $364.68
OKTA Okta $45.96
QCOM Qualcomm $112.41
TWLO Twilio $43.07
Adobe (ADBE)
Source: JHVEPhoto / Shutterstock
Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. The company wants to strengthen its offering in collaborative web applications. It proposed to buy Figma for a high price tag of $20 billion. The Department of Justice is preparing to probe Adobe’s deal.
Figma released its first software in 2016. The products would help graphic designers make mobile applications and websites faster. Adobe’s Chief Executive Officer, Shantanu Narayen, said multiple people would need more collaboration. Adobe’s knowledge workers would use Figma’s collaborative whiteboarding through the FigJam product.
Adobe needs to strengthen its creative collaboration software. Customers may start to cancel their monthly subscription if the return on their investment falls. Adobe has grown in its imaging, vector, and video technology in the last few decades. Today, mobile applications have an enormous addressable market opportunity.
Although Adobe is navigating tough macroeconomic headwinds, it has solid new user acquisition, and robust engagement and retention levels remain.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. In the third quarter, it posted revenue growing by 61% Y/Y to $437 million. DDOG stock could trend lower since it still loses money on a GAAP basis. In this bear market, cautious investors are wary of taking a big position in this company. However, they need to realize that customers still need hyperscalers to optimize costs.
Datadog’s longtime customers will not slow down on their migration to the cloud. They have an urgency to scale their backend solution on Datadog’s platform. This private environment is not the only growth catalyst. In the private environment, customers need their critical environment supported by Datadog’s hyperscaler.
Cybersecurity is an ongoing concern for customers. Fortunately, Datadog has many security use cases. For example, it could consolidate its cost structure instead of having its data managed by different vendors. It gives Datadog a chance to demonstrate the value of using its product more frequently. This increases its revenue potential per customer.
Cloudflare (NET)
Source: IgorGolovniov / Shutterstock.com
Cloudflare (NYSE:NET) stock dropped by nearly one-fifth in value on Nov. 4 after it posted results. Revenue grew by 47.3% Y/Y to $253.86M, but it only earned six cents a share (non-GAAP). Its GAAP net loss was $42.5 million.
Investors dumped the stock because Cloudflare reported delayed buying decisions from customers. For example, customers are more sensitive to prices in the Asia Pacific region. The company will realize revenue in future quarters by pushing out its Cloudflare orders later.
Investors may take advantage of the market panic by adding a starter position at current levels. Still, near-term risks are on the rise. Churn rates from pay-as-you-go customers increased due mainly to a shift down to its free customer tier.
Investors may also bet that as the economy rebounds in 2023, the non-revenue-generating customers will upgrade their service back to the paid level. In the last quarter, Cloudflare ended the quarter with 1,908 large customers. As they order more services, revenue from these customers will expand. Thus, NET is one of the top discounted tech stocks to buy.
ServiceNow (NOW)
Source: Sundry Photography / Shutterstock.com
ServiceNow (NYSE:NOW) is on sale after the company posted mixed results. Revenue grew by 21.2% Y/Y to $1.83 billion. However, the software firm lowered its subscription revenue guidance for the year.
Servicenow has a loyal customer base. It had 1,530 customers paying over $1 million in annual contract value or ACV. In Q3, it reported a renewal rate of 98%. Thus, it makes the list as one of the discounted tech stocks to buy.
Servicenow has a durable business that thrives regardless of economic conditions. It sells a mission-critical solution, and the Now platform is the standard in digital transformation. Customers need the Now platform to drive automation and productivity in this increasingly weaker economy. In addition, the great resignation movement is still a threat to corporations. Servicenow increases customer satisfaction. Corporate customers benefit from the product by offering a pleasant experience for their employees.
Investors may worry about the lofty price-to-earnings of NOW stock. However, the company has strong close rates. It is confident that it will win more deals in the coming quarters.
Okta (OKTA)
Source: Lori Butcher / Shutterstock.com
Okta (NASDAQ:OKTA) manages and secures user authentication for client applications. As customers continue to pivot away from the access management market from Windows Systems, Okta’s privilege access management and identity governance market will thrive.
Investors are worried that Okta’s growth rate will slow. The firm is adjusting for a potential slowdown by improving its efficiency over time. It is investing in the business. For example, it increased its sales and marketing representatives. Fortunately, it is not over-hiring staff. It balances its support for growth by minimizing its cash burn rate.
At these levels, the stock is likely pricing in expectations of a slower long-term growth rate. Still, Okta proved that it could compete in this marketplace.
In the second quarter, Okta posted strong subscription revenue growth. For the year, it expects revenue will grow by between 39% to 40% Y/Y. Still, it will lose up to $105 million (non-GAAP). Once Okta finds a path to profitability, the stock will rise.
Qualcomm (QCOM)
Source: photobyphm / Shutterstock.com
Qualcomm (NASDAQ:QCOM) fell after posting strong revenue growth in the quarter. Investors are worried about the company facing a rapid deterioration in demand. In addition, the easing supply constraint created an elevated channel inventory. As a result, the company cut its earnings per share guidance by 80 cents.
QCOM stock is a bargain from here. Investors have priced in the macro headwinds that are hurting consumer handset demand. Furthermore, the sector has an overhang in inventory after the channel delays eased. Investors need only wait for Qualcomm and its customers to work through the inventory levels from here.
Long-term trends are favorable for Qualcomm. Customers are increasing their Qualcomm content levels. This will increase its license revenue. In addition, the average selling price is rising. This will keep Qualcomm’s gross margins at strong levels.
This chip maker could post strong EPS growth in 2023. The OEM inventory drawdown could clear in as little as one quarter. Long-term investors who get QCOM stock at a discount will benefit when the market improves. Thus, this is one of the discounted tech stocks to buy.
Twilio (TWLO)
Source: Piotr Swat / Shutterstock.com
Twilio (NYSE:TWLO) plunged by 35% on Nov. 4 after posting Q3 results a day earlier. Despite revenue growing by 32.8% Y/Y, it lost $457 million on a GAAP basis.
Twilio needs to turn one-time transaction deals into long-term customer relationships. It will do so by demonstrating why communications and data are better together. The company needs to show its customers that engagement increases with Twilio’s solution.
The company is betting that Twilio Engage will improve customer engagement levels. Engage integrates a customer data platform with a communications API. It will need time to convince investors that customers will buy the Engage platform.
Twilio has a healthy balance sheet. It has $4.2 billion in cash. It can buy back shares, seek merger and acquisition opportunities, or invest in research and development. Before it acquires any firm, it will need to achieve non-GAAP profitability in 2023. Investors are more likely to buy this discounted tech stock when the company is not losing money.
On the date of publication, Chris Lau 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.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get actionable insight to achieve strong investment returns.
The post 7 Tech Stocks to Buy at a Multi-Year Discount 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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Symbol Company Price ADBE Adobe $301.80 DDOG Datadog $67.19 NET Cloudflare $38.50 NOW ServiceNow $364.68 OKTA Okta $45.96 QCOM Qualcomm $112.41 TWLO Twilio $43.07 Adobe (ADBE) Source: JHVEPhoto / Shutterstock Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. DDOG stock could trend lower since it still loses money on a GAAP basis.
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Symbol Company Price ADBE Adobe $301.80 DDOG Datadog $67.19 NET Cloudflare $38.50 NOW ServiceNow $364.68 OKTA Okta $45.96 QCOM Qualcomm $112.41 TWLO Twilio $43.07 Adobe (ADBE) Source: JHVEPhoto / Shutterstock Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. DDOG stock could trend lower since it still loses money on a GAAP basis.
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Symbol Company Price ADBE Adobe $301.80 DDOG Datadog $67.19 NET Cloudflare $38.50 NOW ServiceNow $364.68 OKTA Okta $45.96 QCOM Qualcomm $112.41 TWLO Twilio $43.07 Adobe (ADBE) Source: JHVEPhoto / Shutterstock Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. DDOG stock could trend lower since it still loses money on a GAAP basis.
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Symbol Company Price ADBE Adobe $301.80 DDOG Datadog $67.19 NET Cloudflare $38.50 NOW ServiceNow $364.68 OKTA Okta $45.96 QCOM Qualcomm $112.41 TWLO Twilio $43.07 Adobe (ADBE) Source: JHVEPhoto / Shutterstock Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. DDOG stock could trend lower since it still loses money on a GAAP basis.
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2022-11-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights JPMorgan Chase, Canadian Pacific Railway, Equinix, Halliburton and Datadog
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DDOG
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-jpmorgan-chase-canadian-pacific-railway-equinix
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For Immediate Release
Chicago, IL – November 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Canadian Pacific Railway Limited CP, Equinix, Inc. EQIX, Halliburton Company HAL and Datadog, Inc. DDOG.
Here are highlights from Tuesday’s Analyst Blog:
Q3 Earnings Scorecard and Analyst Reports for JPMorgan, Canadian Pacific and Equinix
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including JPMorgan Chase & Co., Canadian Pacific Railway Limited and Equinix, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q3 Earnings Season Scorecard
Including all of this morning's results, we now have Q3 earnings reports from 446 S&P 500 members or 89.2% of the index's total membership.
Total earnings for these 446 companies are up +2.3% from the same period last year on +12.6% higher revenues, with 70% beating EPS estimates and 68.2% beating revenue estimates.
The EPS and revenue beats percentages for these 446 index members is below what we had seen from the same group of companies in the last two years and below the 5-year averages, but otherwise within the historical range.
Estimates for the current and coming periods are still coming down. For 2022 Q4, total S&P 500 earnings are currently expected to decline -4.1% from the year-earlier period. This is down from +1.7% on October 7th and +2.5% on August 31st. For more details about the Q3 earnings season, please read our weekly Earnings Preview report here >>> 3 Things We Learned From the Q3 Earnings Season
Today's Featured Analsyt Reports
Shares of JPMorgan Chase have modestly underperformed the Zacks Major Banks industry over the past year (-21.7% vs. -20.8%). The company’s exposure to a weakening economic outlook remains the primary headwind, offsetting the benefits from improved margins as a result of the Fed's tightening cycle. Steadily rising operating expenses remains a key headwind.
Given the possibility of an economic downturn and to meet higher capital requirements, the bank has suspended buybacks. However, opening of new branches, strategic buyouts/investments and global expansion and digitization efforts are likely to keep driving the company’s financials.
Further, higher interest rates and steady growth in loan demand are expected to result in a robust improvement in net interest income (NII). Our estimates for NII (managed) suggest a CAGR of around 19% over the next three years.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Canadian Pacific Railway have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+7.0% vs. -14.1%). The company expects double-digit RTM- growth in the second half of 2022 leading to volume and earnings growth for the year. The buyout of Kansas City Southern, completed last year, is a huge positive and should aid results in the coming quarters.
With gradual recovery in freight-market conditions, freight revenues, contributing majority to the top line, looks encouraging for the company. Canadian Pacific's efforts to pay out dividends to its shareholders instils investor confidence and positively impact the company's earnings per share.
However, higher operating expenses continue to weigh on the company's bottom line. High debt-to-equity ratio does not bode well and is risky as it implies that the company is aggressively financing its growth with debt. Partly due to these headwinds, the stock has declined in the past year.
(You can read the full research report on Canadian Pacific Railway >>>)
Shares of Equinix have underperformed the Zacks REIT and Equity Trust - Retail industry over the past year (-24.0% vs. -19.0%). The company’s huge capital outlay for expansion is a concern as interest rate hikes might adversely impact the borrowing costs to fund these projects. Also, stiff competition from industry peers may lead to aggressive pricing.
The recent estimate revisions trend for 2022 funds from operations (FFO) per share indicates an unfavorable outlook. However, Equinix’s second-quarter results were driven by steady growth in colocation and inter-connection revenues, marking the 78th consecutive quarter of top-line growth.
Its global data-center portfolio is set to gain from the high demand for inter-connected data-center space, given the rise in enterprise cloud adoption and Internet customers’ demand. Equinix focuses on acquisitions and developments to expand its data-center capacity in key markets.
(You can read the full research report on Equinix here >>>)
Other noteworthy reports we are featuring today include Halliburton Company and Datadog, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Halliburton Company (HAL): Free Stock Analysis Report
Equinix, Inc. (EQIX): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): 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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Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Canadian Pacific Railway Limited CP, Equinix, Inc. EQIX, Halliburton Company HAL and Datadog, Inc. DDOG. Datadog, Inc. (DDOG): Free Stock Analysis Report (You can read the full research report on JPMorgan Chase here >>>) Shares of Canadian Pacific Railway have outperformed the Zacks Transportation - Rail industry over the year-to-date period (+7.0% vs. -14.1%).
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Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Canadian Pacific Railway Limited CP, Equinix, Inc. EQIX, Halliburton Company HAL and Datadog, Inc. DDOG. Datadog, Inc. (DDOG): Free Stock Analysis Report Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including JPMorgan Chase & Co., Canadian Pacific Railway Limited and Equinix, Inc.
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Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Canadian Pacific Railway Limited CP, Equinix, Inc. EQIX, Halliburton Company HAL and Datadog, Inc. DDOG. Datadog, Inc. (DDOG): Free Stock Analysis Report Today's Research Daily features a real-time update on the Q3 earnings season and new research reports on 16 major stocks, including JPMorgan Chase & Co., Canadian Pacific Railway Limited and Equinix, Inc.
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Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Canadian Pacific Railway Limited CP, Equinix, Inc. EQIX, Halliburton Company HAL and Datadog, Inc. DDOG. Datadog, Inc. (DDOG): Free Stock Analysis Report Total earnings for these 446 companies are up +2.3% from the same period last year on +12.6% higher revenues, with 70% beating EPS estimates and 68.2% beating revenue estimates.
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dcf479d9-d22d-41d7-ad4b-2c530dc0ee45
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718469.0
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2022-11-09 00:00:00 UTC
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2 Spectacular Growth Stocks You'll Regret Not Buying on the Dip
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DDOG
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https://www.nasdaq.com/articles/2-spectacular-growth-stocks-youll-regret-not-buying-on-the-dip
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nan
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nan
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Investors have been punishing tech stocks as if they're all seeing significant plunges in business activity. The tech-heavy Nasdaq Composite index has fallen more than 32% in 2022, and many individual names are down far greater. However, while it might seem like tech stocks can't please investors in this environment, a few companies are continuing to post stellar quarterly earnings results.
Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET) are two such companies. Both continued to dominate their respective industries and grew like wildfire in the third quarter. Yet, shares of Datadog and Cloudflare are down 60% and 69% year to date, respectively. These drops seem like appealing buying opportunities for investors willing to hold these two spectacular stocks for the long haul. Here's why.
Image source: Getty Images.
The case for Datadog
Datadog continued to execute flawlessly in the third quarter, as it showcased in its quarterly earnings on Nov. 3. Revenue soared 61% year over year to $437 million for the application performance monitoring company, and customers continued to shell out cash: The number of customers spending over $100,000 annually rose 44% compared to the year-ago period to about 2,600.
The company provides businesses with application and infrastructure performance and observability tools to understand user behavior, reduce application downtime, drive product development, and much more. Therefore, it makes sense Datadog has seen such stable adoption this year. Considering these tools are critical for businesses in today's world, Datadog's customers are less likely to drop its services -- even during an uncertain economic period.
This was the case last quarter when Datadog's churn remained under 5%, and its net retention remained above 130% for the 21st consecutive quarter.
But that's not all, Datadog is profitable on a non-GAAP (adjusted) basis, and it generates a lot of cash. In the third quarter, the company had a non-GAAP operating margin of 17%, indicating its current rate of expansion isn't being artificially boosted by excess losses. Additionally, the company generated almost $304 million in operating cash flow year to date.
What does Datadog plan to do with this cash? It will likely use it to innovate and develop new products -- something the company does quite well. In 2022 alone, Datadog launched 10 new products, and it expects to roll out even more before year-end. This constant drive to give its customers the latest advancements in application monitoring has helped it become the leader in the space, according to Gartner. With this continued cash generation, combined with its desire to innovate, Datadog will likely maintain this top-dog status for years to come.
Despite the company's high growth, low churn, cash flows, and sustainable leadership position, shares have continued to drop this year. However, smart investors looking to buy and hold companies for the long haul could see this as an opportune time to buy. At 15 times sales, Datadog is trading at both its lowest valuation since early 2020 and half its average valuation since going public. Shares still trade at a premium, but this looks like a spectacular stock to buy on the dip.
The case for Cloudflare
Cloudflare is in a similar position to Datadog. The company provides mission-critical cybersecurity tools to customers, and these tools are something businesses need nonstop -- even during economic turmoil. As a result, Cloudflare has continued to see stellar adoption. Third-quarter revenue jumped 47% year over year to $254 million. The company's net retention rate fell sequentially from 126% to 124%, but what didn't worsen was churn, which remained below 10%.
This adoption has paid off, not only through the company's increased success in the cybersecurity market but also through its operating margin. The company has seen revenue soar, but its operating expenses haven't increased at the same rate, resulting in impressive leverage. In 2019, for example, sales and marketing spending represented 52% of revenue, and research and development expenses totaled 27%. Those figures have dramatically fallen to represent only 41% and 18% of total revenue, respectively, in the latest quarter.
Like Datadog, Cloudflare's stock price hasn't been rewarded for this strong performance. Shares have fallen 69% year to date, bringing the company's valuation down to 15 times sales. This might be a great time to buy, considering Cloudflare is trading at similar multiples to some of its cybersecurity peers.
With the stock down even as the business continues to execute, investors can pounce on this high-quality business.
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 September 30, 2022
Jamie Louko has positions in Cloudflare, Inc. and Datadog. The Motley Fool has positions in and recommends Cloudflare, Inc. 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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Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET) are two such companies. However, while it might seem like tech stocks can't please investors in this environment, a few companies are continuing to post stellar quarterly earnings results. In the third quarter, the company had a non-GAAP operating margin of 17%, indicating its current rate of expansion isn't being artificially boosted by excess losses.
|
Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET) are two such companies. Revenue soared 61% year over year to $437 million for the application performance monitoring company, and customers continued to shell out cash: The number of customers spending over $100,000 annually rose 44% compared to the year-ago period to about 2,600. This was the case last quarter when Datadog's churn remained under 5%, and its net retention remained above 130% for the 21st consecutive quarter.
|
Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET) are two such companies. The case for Datadog Datadog continued to execute flawlessly in the third quarter, as it showcased in its quarterly earnings on Nov. 3. Revenue soared 61% year over year to $437 million for the application performance monitoring company, and customers continued to shell out cash: The number of customers spending over $100,000 annually rose 44% compared to the year-ago period to about 2,600.
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Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET) are two such companies. Yet, shares of Datadog and Cloudflare are down 60% and 69% year to date, respectively. Shares have fallen 69% year to date, bringing the company's valuation down to 15 times sales.
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0b183a19-61b2-44e0-85dd-534692e72cae
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718470.0
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2022-11-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights Airbnb, Fortinet, Datadog, Paycom Software and Zscaler
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DDOG
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-airbnb-fortinet-datadog-paycom-software-and-zscaler
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nan
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nan
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For Immediate Release
Chicago, IL – November 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS.
Here are highlights from Tuesday’s Analyst Blog:
Buy 5 Stocks at Attractive Valuations to Tap the Market Rally
U.S. stock markets have been witnessing an impressive rally since the beginning of October. We are not out of the woods as inflation remains elevated. In the post-FOMC meeting statement in November, the Fed Chairman clearly indicated that the terminal interest rate in this rate-hiking cycle will be higher than 5%.
Yet, markets continue to rally on the assumption that the Fed may lower the magnitude of rate hike from the December FOMC meeting. A series of recently released economic data has also suggested that the central bank’s ultra-hawkish monetary policies started giving the needed results albeit at a slow pace.
On the other hand, the technology sector has been suffering a bloody blow in 2022 after witnessing a meteoric rise in the last two coronavirus-ridden years. Shares of several technology behemoths have plummeted due to a higher interest rate regime, the soaring yield on U.S. government bonds and a higher valuation of the sector.
The Wall Street rally is likely to continue in the near term as the last two months of any year generally remain favorable for investors. Moreover, the midterm election of the U.S. Congress is scheduled on Nov 8. A split Congress may escalate the ongoing rally.
At this stage, it should be prudent to invest in beaten-down technology stocks with a favorable Zacks Rank that are likely to gain for the rest of 2022. Here are five such stocks — Airbnb Inc., Fortinet Inc., Datadog Inc., Paycom Software Inc. and Zscaler Inc.
Tech is a Long-Term Bullish Sector — Buy on the Dip
A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall technology space. Consequently, the sector has vast potential.
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication instead of data has served most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. They were not entirely used to the digital platforms for their office work (work from home), ordering food and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
Countries that are more digitized were able to minimize their losses during the pandemic. These are major lessons for the other countries. Even those less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now realizing the huge advantage of the online platforms.
Our Top Picks
We have narrowed our search to five U.S. technology stocks currently trading at a deep discount to their 52-week highs. These stocks have strong potential for the rest of 2022 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Airbnb is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB’s Nights & Experience bookings. Additionally, growth in Average Daily Rates and Gross Booking Value is acting as a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.9% over the last seven days. ABNB is currently trading at a 55.1% discount to its 52-week high.
Fortinet is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. FTNT is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings.
Moreover, continued deal wins, especially those of high value, are solid drivers. Higher IT spending on cybersecurity is expected to aid Fortinet grow faster than the security market. Also, focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for FTNT.
Fortinet has an expected earnings growth rate of 33.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.9% over the last seven days. FTNT is currently trading at a 35.6% discount to its 52-week high.
Zscaler is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver of ZS.
Zscaler’s portfolio boosts its competitive edge and helps add users. Moreover, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is safeguarding Zscaler from the pandemic’s negative impact. Also, recent acquisitions, like Smokescreen and Trustdome, are expected to enhance ZS’ portfolio.
Zscaler has an expected earnings growth rate of 71% for the current year (for July 2023). The Zacks Consensus Estimate for current-year earnings improved 14.6% over the last 30 days. ZS is currently trading at a 68.8% discount to its 52-week high.
Datadog is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected earnings growth rate of 64.6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last seven days. DDOG is currently trading at a 65.2% discount to its 52-week high.
Paycomis a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes.
PAYC’s differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Further, solutions like Ask Here and Manager on-the-Go, both focusing on employee usage and efficiency, are tailwinds.
Paycom has an expected earnings growth rate of 30.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last seven days. PAYC is currently trading at a 42.7% discount to its 52-week high.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Paycom Software, Inc. (PAYC): Free Stock Analysis Report
Zscaler, Inc. (ZS): 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.
|
Stocks recently featured in the blog include: Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Stocks recently featured in the blog include: Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
|
Stocks recently featured in the blog include: Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
|
Stocks recently featured in the blog include: Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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e95c82e5-5763-4dc2-8edb-18ba14bae9a4
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718471.0
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2022-11-08 00:00:00 UTC
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Buy 5 Tech Stocks at Attractive Valuation to Tap Market Rally
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DDOG
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https://www.nasdaq.com/articles/buy-5-tech-stocks-at-attractive-valuation-to-tap-market-rally
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nan
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nan
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U.S. stock markets have been witnessing an impressive rally since the beginning of October. We are not out of the woods as inflation remains elevated. In the post-FOMC meeting statement in November, the Fed Chairman clearly indicated that the terminal interest rate in this rate-hiking cycle will be higher than 5%.
Yet, markets continue to rally on the assumption that the Fed may lower the magnitude of rate hike from the December FOMC meeting. A series of recently released economic data has also suggested that the central bank’s ultra-hawkish monetary policies started giving the needed results albeit a slow pace.
On the other hand, the technology sector has been suffering a bloody blow in 2022 after witnessing a meteoric rise in the last two coronavirus-ridden years. Shares of several technology behemoths have plummeted due to a higher interest rate regime, the soaring yield on U.S. government bonds and a higher valuation of the sector.
The Wall Street rally is likely to continue in the near term as the last two months of any year generally remain favorable for investors. Moreover, the midterm election of the U.S. Congress is scheduled on Nov 8. A split Congress may escalate the ongoing rally.
At this stage, it should be prudent to invest in beaten-down technology stocks with a favorable Zacks Rank that are likely to gain for the rest of 2022. Here are five such stocks — Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS.
Tech is a Long-Term Bullish Sector — Buy on the Dip
A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, has given a boost to the overall technology space. Consequently, the sector has vast potential.
The leading emerging markets of Asia, Latin America, Africa and some European countries are still way behind in using digital technology compared to the developed world. While mobile phone penetration is nearly 90% in these countries, a large number of people are still using phones with old features, since voice communication instead of data has served most of their needs. Even those using smartphones, rarely utilize online digital features.
However, the outbreak of coronavirus quickly changed the lifestyle and lookout of these people. They were not entirely used to the digital platforms for their office work (work from home), ordering food and other daily needs or transferring money and making payments. Moreover, online schooling, video conferencing and virtual networking have now become essential.
Countries that are more digitized were able to minimize their losses during the pandemic. These are major lessons for the other countries. Even those less inclined toward digital technology and online platforms, either because they have to learn using smartphones or tablets or due to fear of data theft, are now realizing the huge advantage of the online platforms.
Our Top Picks
We have narrowed our search to five U.S. technology stocks currently trading at a deep discount to their 52-week highs. These stocks have strong potential for the rest of 2022 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Airbnb is riding on an improvement in the travel industry. Continued recovery in both longer-distance and cross-border travel owing to a reduction in travel restrictions is benefiting ABNB’s Nights & Experience bookings. Additionally, growth in Average Daily Rates and Gross Booking Value is acting as a tailwind.
Growing active listings in Latin America, North America and EMEA are contributing well to the top line. Growing sales and marketing initiatives along with continuous efforts to upgrade various aspects of the Airbnb service are helping the company gain momentum among hosts and guests.
Airbnb has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.9% over the last seven days. ABNB is currently trading at a 55.1% discount to its 52-week high.
Fortinet is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. FTNT is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network offerings.
Moreover, continued deal wins, especially those of high value, are solid drivers. Higher IT spending on cybersecurity is expected to aid Fortinet grow faster than the security market. Also, focus on enhancing its unified threat management portfolio through product development and acquisitions is a tailwind for FTNT.
Fortinet has an expected earnings growth rate of 33.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.9% over the last seven days. FTNT is currently trading at a 35.6% discount to its 52-week high.
Zscaler is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver of ZS.
Zscaler’s portfolio boosts its competitive edge and helps add users. Moreover, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is safeguarding Zscaler from the pandemic’s negative impact. Also, recent acquisitions, like Smokescreen and Trustdome, are expected to enhance ZS’ portfolio.
Zscaler has an expected earnings growth rate of 71% for the current year (for July 2023). The Zacks Consensus Estimate for current-year earnings improved 14.6% over the last 30 days. ZS is currently trading at a 68.8% discount to its 52-week high.
Datadog is benefitting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform driven by accelerated digital transformation and cloud migration across organizations.
Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
Datadog has an expected earnings growth rate of 64.6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3% over the last seven days. DDOG is currently trading at a 65.2% discount to its 52-week high.
Paycom is a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes.
PAYC’s differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Further, solutions like Ask Here and Manager on-the-Go, both focusing on employee usage and efficiency, are tailwinds.
Paycom has an expected earnings growth rate of 30.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last seven days. PAYC is currently trading at a 42.7% discount to its 52-week high.
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
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Paycom Software, Inc. (PAYC): Free Stock Analysis Report
Zscaler, Inc. (ZS): 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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Here are five such stocks — Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Here are five such stocks — Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Here are five such stocks — Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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Here are five such stocks — Airbnb Inc. ABNB, Fortinet Inc. FTNT, Datadog Inc. DDOG, Paycom Software Inc. PAYC and Zscaler Inc. ZS. Solid adoption of Synthetics and Network Performance Monitoring products are expected to aid customer wins for DDOG in the near term. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain the key growth driver for DDOG besides an expanding portfolio.
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7bda8fe1-10dd-4ca4-9e27-61d82a3ff4f4
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718472.0
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2022-11-08 00:00:00 UTC
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1 Monster Growth Stock That Could Soar by 133%, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/1-monster-growth-stock-that-could-soar-by-133-according-to-wall-street
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nan
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nan
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Inflation soared throughout 2022, and it hit a 40-year high just a few months ago. This elevated inflation prompted an aggressive response from the U.S. Federal Reserve, which adjusted interest rates higher, often by 75 basis points at a time. That's triple the more traditional 25-basis-point move.
Naturally, these cost pressures have left people with less disposable income, and the reduction in spending is hurting the corporate sector. It's a key reason the Nasdaq-100 technology index lost 34% of its value this year.
But some companies focus on serving businesses, not consumers, and many of those happen to be outperforming. Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30), and its strong results led the company to increase its guidance for the full year for a third straight time.
Wall Street is incredibly bullish on Datadog stock. Here's why one investment bank, in particular, thinks its stock price could soar by 133% over the next 12 to 18 months from its current price of $69.48.
Datadog is an essential tool for cloud-based operations
Picture a physical store for a moment. Customers walk in, select the goods they wish to buy, and check out via a human cashier. Assessing that customer's experience is quite easy for the person behind the counter. Did they appear happy? Dissatisfied? Angry? With a human cashier, resolving a problem is relatively straightforward.
But what if that same store had thousands of faceless customers interacting with it digitally? Cloud computing technology helps businesses to move their operations and sales channels online, which opens up their addressable market to thousands of new customers. But at the same time, maintaining a quality experience for all of them is much harder.
Datadog is a cloud monitoring platform that can alert businesses to problems with their online customer touchpoints in real time, whether they operate in retail, financial services, or even gaming. If a page is loading more slowly than usual, or even if only a small segment of customers is affected by a technical issue, Datadog can significantly cut down response times for those who can resolve the issue.
Additionally, it can learn from historical data to ensure websites can handle traffic spikes ahead of big events, like Cyber Monday, for example.
It means less downtime, which means fewer lost sales, and, ultimately, more satisfied customers.
Datadog had a blockbuster third quarter, in a blockbuster year so far
Datadog's third-quarter revenue grew by a whopping 61.4% year over year to $437 million. Its results for the first nine months of 2022 so far are even more impressive. It generated $1.2 billion in sales -- which represents a 71.6% jump compared to the same period in 2021.
Despite Datadog investing heavily in growth, including substantial increases in its marketing and research and development costs this year, it's still extremely close to profitability. It lost just $21 million in the first nine months of 2022, which is practically a break-even result considering how much revenue the company brought in.
Datadog's strong financial performances this year prompted it to lift its full-year sales guidance several times. At the conclusion of 2021, the company told investors it could deliver up to $1.53 billion in revenue during 2022, but it then raised that forecast in the first and second quarters, and now again in Q3, to $1.654 billion.
It makes Datadog one of just a handful of companies with an optimistic tone at the moment, because the tough economic environment has some of the largest technology giants in the U.S. slashing their previous estimates.
Image source: Getty Images.
Wall Street is bullish on Datadog stock
The Wall Street Journal tracks 32 analysts who cover Datadog stock, and not a single one recommends selling.
Of the group, 21 gave the stock the highest-possible buy rating, while the rest are split between overweight (bullish) and neutral ratings. It speaks volumes of Wall Street's confidence in Datadog, especially in the context of its recent financial results.
But how much upside could Datadog stock deliver? Analysts at investment bank Goldman Sachs think it could soar by 133% to $162 per share over the next 12 to 18 months.
Since more businesses are moving to the cloud, Datadog's addressable market is constantly growing. It already serves 2,600 large organizations that spend at least $100,000 annually with the company, which is up from 1,800 at this time last year.
Over the long term, Datadog stock could soar far higher than any Wall Street analyst is predicting today, so now might be a great time to take a position.
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 September 30, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Goldman Sachs. 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) just released its financial results for the third quarter (ended Sept. 30), and its strong results led the company to increase its guidance for the full year for a third straight time. Datadog is a cloud monitoring platform that can alert businesses to problems with their online customer touchpoints in real time, whether they operate in retail, financial services, or even gaming. Despite Datadog investing heavily in growth, including substantial increases in its marketing and research and development costs this year, it's still extremely close to profitability.
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Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30), and its strong results led the company to increase its guidance for the full year for a third straight time. Wall Street is bullish on Datadog stock The Wall Street Journal tracks 32 analysts who cover Datadog stock, and not a single one recommends selling. Over the long term, Datadog stock could soar far higher than any Wall Street analyst is predicting today, so now might be a great time to take a position.
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Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30), and its strong results led the company to increase its guidance for the full year for a third straight time. Datadog had a blockbuster third quarter, in a blockbuster year so far Datadog's third-quarter revenue grew by a whopping 61.4% year over year to $437 million. Wall Street is bullish on Datadog stock The Wall Street Journal tracks 32 analysts who cover Datadog stock, and not a single one recommends selling.
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Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30), and its strong results led the company to increase its guidance for the full year for a third straight time. Datadog had a blockbuster third quarter, in a blockbuster year so far Datadog's third-quarter revenue grew by a whopping 61.4% year over year to $437 million. At the conclusion of 2021, the company told investors it could deliver up to $1.53 billion in revenue during 2022, but it then raised that forecast in the first and second quarters, and now again in Q3, to $1.654 billion.
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2fb4ebbc-ac44-43c9-b0db-9188e53179ef
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718473.0
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2022-11-08 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-0
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nan
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nan
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Sometimes you can't fight the market; a company can do everything right, but it might not matter if the market's throwing out the metaphorical baby with the bath water. Fortunately, that can mean an excellent opportunity for a savvy investor, picking up quality stocks that are on sale for no reason other than everything else is falling.
Cloud observability company Datadog (NASDAQ: DDOG) is checking the boxes that make a great company and investment over the long term. Yet the stock has fallen more than 60% from its peak. I'll dive into what makes Datadog a stock worth considering and outline why now is a great time to think about adding it to your diversified portfolio.
1. Datadog offers a fantastic product
Software is increasingly moving to the cloud. Back in the day, a company would buy software and install it individually on every computer using it. But cloud-based software is different; users can access it through the internet, which makes it easier to implement across a company and can be updated in real-time. However, executing various applications and getting them to work together can be a challenging task.
Datadog is an observability and analytics tool; information technology (IT) departments use it to monitor their apps, data centers, and servers for events and performance, troubleshoot problems, and keep their systems secure. You can think of them as the watchdog (see what I did there?) that oversees a company's technology systems to ensure they run as smoothly as possible.
Companies spend thousands to millions on enterprise software and other technology, which makes monitoring a critical role. Third-party technology research firm Gartner named Datadog as a 2022 industry leader for application performance monitoring and observability. That reputation has translated into numbers; Datadog's customer base has grown from 5,403 five years ago to 22,200 today.
2. It has sparkling clean financials
Acquiring customers and getting them to increase their spending over time (Datadog has a net revenue retention rate of 130%) has fueled 50% or higher revenue growth since the stock went public. In fact, it now does $1.4 billion in annual sales. Some companies grow at any cost, but Datadog generates strong cash profits; it turns $0.26 of every revenue dollar into free cash flow.
DDOG Free Cash Flow data by YCharts
That's a big deal during tough times, since investors don't need to worry about Datadog having to raise more cash out of desperation. Rather, its business is organically putting cash on the books ($1.7 billion in cash and marketable securities), even with the company still chasing growth. This profitable growth is a sign of a great business model.
3. Datadog's stock also has an attractive valuation
A company with a quality product and robust financials is one that many investors seek, which is why Datadog spent much of 2020 to 2022 as one of Wall Street's more expensive stocks. The company once commanded a price-to-sales ratio (P/S) of more than 60, a hefty valuation that's tough for even a quality stock like Datadog to maintain over time.
You can see below that the drop in shares has pulled that P/S ratio back down to earth, helped by Datadog's swift growth:
DDOG PS Ratio data by YCharts
With Datadog now at a P/E of just 13 on a forward basis, investors could see its organic growth lift the share price over the coming years. The company just turned in 61% year-over-year revenue growth in the third quarter, so Datadog still looks like it's maintaining momentum. Management believes that its addressable market will grow to $62 billion by 2026, so there could be a lot of juice left for investors as long as it continues to provide a quality product that enterprises love.
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 September 30, 2022
Justin Pope 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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Cloud observability company Datadog (NASDAQ: DDOG) is checking the boxes that make a great company and investment over the long term. DDOG Free Cash Flow data by YCharts That's a big deal during tough times, since investors don't need to worry about Datadog having to raise more cash out of desperation. You can see below that the drop in shares has pulled that P/S ratio back down to earth, helped by Datadog's swift growth: DDOG PS Ratio data by YCharts With Datadog now at a P/E of just 13 on a forward basis, investors could see its organic growth lift the share price over the coming years.
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Cloud observability company Datadog (NASDAQ: DDOG) is checking the boxes that make a great company and investment over the long term. DDOG Free Cash Flow data by YCharts That's a big deal during tough times, since investors don't need to worry about Datadog having to raise more cash out of desperation. You can see below that the drop in shares has pulled that P/S ratio back down to earth, helped by Datadog's swift growth: DDOG PS Ratio data by YCharts With Datadog now at a P/E of just 13 on a forward basis, investors could see its organic growth lift the share price over the coming years.
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Cloud observability company Datadog (NASDAQ: DDOG) is checking the boxes that make a great company and investment over the long term. You can see below that the drop in shares has pulled that P/S ratio back down to earth, helped by Datadog's swift growth: DDOG PS Ratio data by YCharts With Datadog now at a P/E of just 13 on a forward basis, investors could see its organic growth lift the share price over the coming years. DDOG Free Cash Flow data by YCharts That's a big deal during tough times, since investors don't need to worry about Datadog having to raise more cash out of desperation.
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Cloud observability company Datadog (NASDAQ: DDOG) is checking the boxes that make a great company and investment over the long term. DDOG Free Cash Flow data by YCharts That's a big deal during tough times, since investors don't need to worry about Datadog having to raise more cash out of desperation. You can see below that the drop in shares has pulled that P/S ratio back down to earth, helped by Datadog's swift growth: DDOG PS Ratio data by YCharts With Datadog now at a P/E of just 13 on a forward basis, investors could see its organic growth lift the share price over the coming years.
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3d88d007-2181-4ce4-8aa2-3ff0b9215aef
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718474.0
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2022-11-07 00:00:00 UTC
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5 “Strong Buy” Stocks on Analysts’ Radar This Week
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DDOG
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https://www.nasdaq.com/articles/5-strong-buy-stocks-on-analysts-radar-this-week
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nan
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nan
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At a time when the future of companies is in a predicament, the million-dollar question is: which stocks do Wall Street analysts trust? We narrowed down five “Strong Buy” stocks using TipRanks’ Trending Stocks tool that tracks the most rated stocks during a specified period — Datadog (NASDAQ:DDOG), Guardant Health (NASDAQ:GH), Bill.com (NYSE:BILL), Epam Systems (NYSE:EPAM), and Papa John's (NASDAQ:PZZA). These stocks are on analysts’ radars this week.
Datadog (DDOG)
SaaS-based data monitoring and analytics platform Datadog has the backing of around 400 software platforms, including Amazon’s (NASDAQ:AMZN) Web Services and Microsoft's (NASDAQ:MSFT) Azure, all of which provide native support for Datadog's services. This pulls a lot of customers to its cloud-based platform. To that end, the company ended the third quarter with about 2,600 customers, up 44% year-over-year, bringing in more than $100,000 in ARR (annual run rate).
In 2021, the company’s adjusted earnings per share more than doubled, and analysts expect a 90% increase in earnings this year.
Importantly, Datadog is one of the few stocks that are on the path to hyper-growth, thanks to the long-term value of its unified cloud-based IT dashboards. This view justifies its relatively expensive stock price of about 61 times its 2023 earnings estimates.
What's the Price Target for DDOG Stock?
Needham analyst Mike Cikos reiterated a Buy rating on Datadog with a price target of $90. Wall Street’s Strong Buy consensus rating is supported by 20 Buys and six Holds. The average DDOG price target of $110.74 implies 59.38% upside potential.
Guardant Health (GH)
Precision oncology services company Guardant Health is bridging a unique and relatively unmet need —tools to ensure accurate oncology testing. The company’s lab methodologies and tests aim to improve pathological tests that are key for cancer research.
Guardant’s services have garnered tremendous positive responses and gained popularity with oncologists. The continued focus on expanding its test offerings gives us a solid reason to trust its prospects. Several trials are underway to evaluate new tests, including the ECLIPSE trial to enhance the Shield blood screening test for colorectal cancer.
Shares are down around 53% year-to-date, partly because of deepening losses. However, sales growth is meaningful and consistent.
What's the Price Target for GH Stock?
Citi analyst Patrick Donnelly cut his price target on Guardant Health stock to $80 from $100 but reaffirmed his Buy rating after the company’s Q3 results. In fact, 11 Wall Street analysts have retained their Buy ratings, and one has a Hold rating on the stock. The average GH price target of $80.77 indicates 71.1% upside potential from the current price.
Bill.com (BILL)
Bill.com provides AI-enabled cloud-based financial operations software to small and mid-sized businesses. While revenues are on track to clock in $1 billion for the full year of Fiscal 2023, profitability remains a concern. Last quarter, its operating loss widened. Although its more than $2.6 billion cash & equivalents position on its balance sheet should not deter long-term investors, pessimism is rife among investors in the technology sector, especially unprofitable tech companies.
BMO Capital analyst Daniel Jester lowered his price target on BILL stock to reflect near-term macroeconomic challenges that are likely to impact transaction volume trends into the second half of Fiscal 2023 (consistent with the first half of Calendar Year 2023). Nonetheless, Jester remained bullish on Bill’s long-term prospects and reaffirmed his Buy rating on the stock.
What's the Price Target for BILL Stock?
18 analysts on Wall Street have Buy ratings on BILL stock, while two have Hold ratings. The average BILL stock price target of $185.05 indicates 77.2% room for stock price appreciation over the next 12 months.
Epam Systems (EPAM)
Software engineering and IT consulting services provider Epam Systems is benefiting from rapid digital transformation. A continued focus on customer engagement and product development is also boosting the company’s growth.
It reported better-than-expected quarterly results last week, but several headwinds are awaiting EPAM in the fourth quarter, including the continued impact from the closure of its business in Russia, as well as foreign exchange headwinds.
These near-term concerns led a slew of analysts to lower their price targets. However, it is Epam’s long-term potential that analysts are betting on. Its acquisitions are expected to continue to be great revenue pullers. Moreover, the net cash on its balance sheet is another reason for experts to cheer for Epam.
What's the Price Target for EPAM Stock?
Notably, nine analysts have a unanimous Buy rating on EPAM stock, with an average price target of $418.44, implying 32.4% upside potential.
Papa John's (PZZA)
Inflation, supply-chain challenges, rising expenses, and high debt levels are among the concerns of the company, and the trends are likely to continue through the rest of 2022. So, why are analysts recommending PZZA stock? A strong brand name, innovative menu, technology, and international expansion are the answers.
Moreover, the chain has survived several market cycles and emerged stronger every time. Furthermore, Papa John’s solid cash-flow-generating capabilities ensure consistent cash returns to shareholders. The company hiked its quarterly dividend by 20% in August. The upcoming quarterly dividend of $0.42 per share will be paid out on November 25 to shareholders on record as of November 14.
What's the Price Target for PZZA Stock?
On Wall Street, nine analysts gave Buy ratings, whereas three have Hold ratings on PZZA stock. The average PZZA price target of $98.64 implies that the stock has a 29.6% upside potential over the next year.
The Takeaway
Macroeconomic challenges are hurting all of the above companies, but what earns them a Strong Buy on Wall Street are strong fundamentals and bright long-term outlooks.
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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We narrowed down five “Strong Buy” stocks using TipRanks’ Trending Stocks tool that tracks the most rated stocks during a specified period — Datadog (NASDAQ:DDOG), Guardant Health (NASDAQ:GH), Bill.com (NYSE:BILL), Epam Systems (NYSE:EPAM), and Papa John's (NASDAQ:PZZA). Datadog (DDOG) SaaS-based data monitoring and analytics platform Datadog has the backing of around 400 software platforms, including Amazon’s (NASDAQ:AMZN) Web Services and Microsoft's (NASDAQ:MSFT) Azure, all of which provide native support for Datadog's services. What's the Price Target for DDOG Stock?
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We narrowed down five “Strong Buy” stocks using TipRanks’ Trending Stocks tool that tracks the most rated stocks during a specified period — Datadog (NASDAQ:DDOG), Guardant Health (NASDAQ:GH), Bill.com (NYSE:BILL), Epam Systems (NYSE:EPAM), and Papa John's (NASDAQ:PZZA). Datadog (DDOG) SaaS-based data monitoring and analytics platform Datadog has the backing of around 400 software platforms, including Amazon’s (NASDAQ:AMZN) Web Services and Microsoft's (NASDAQ:MSFT) Azure, all of which provide native support for Datadog's services. What's the Price Target for DDOG Stock?
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We narrowed down five “Strong Buy” stocks using TipRanks’ Trending Stocks tool that tracks the most rated stocks during a specified period — Datadog (NASDAQ:DDOG), Guardant Health (NASDAQ:GH), Bill.com (NYSE:BILL), Epam Systems (NYSE:EPAM), and Papa John's (NASDAQ:PZZA). Datadog (DDOG) SaaS-based data monitoring and analytics platform Datadog has the backing of around 400 software platforms, including Amazon’s (NASDAQ:AMZN) Web Services and Microsoft's (NASDAQ:MSFT) Azure, all of which provide native support for Datadog's services. What's the Price Target for DDOG Stock?
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We narrowed down five “Strong Buy” stocks using TipRanks’ Trending Stocks tool that tracks the most rated stocks during a specified period — Datadog (NASDAQ:DDOG), Guardant Health (NASDAQ:GH), Bill.com (NYSE:BILL), Epam Systems (NYSE:EPAM), and Papa John's (NASDAQ:PZZA). Datadog (DDOG) SaaS-based data monitoring and analytics platform Datadog has the backing of around 400 software platforms, including Amazon’s (NASDAQ:AMZN) Web Services and Microsoft's (NASDAQ:MSFT) Azure, all of which provide native support for Datadog's services. What's the Price Target for DDOG Stock?
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93fe6023-231a-4439-be2a-802b48f263c3
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718475.0
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2022-11-07 00:00:00 UTC
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Is Datadog Stock a Buy?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-stock-a-buy
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nan
|
nan
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Datadog (NASDAQ: DDOG) posted its third-quarter earnings report on Nov. 3. The data visualization company's revenue rose 61% year-over-year to $437 million and beat analysts' estimates by $22 million. Its adjusted net income increased 83% to $81 million, or $0.23 per share, which also cleared the consensus forecast by seven cents.
Datadog's growth rates were impressive, but its stock barely budged after the report and remains down nearly 60% for the year. Let's review Datadog more closely to see if it's worth buying at these levels.
Image source: Getty Images.
Still a hypergrowth stock
Datadog's platform collects diagnostic data from a company's servers, databases, and apps in real time, then aggregates all of that information onto unified visual dashboards for IT professionals. This silo-busting approach makes it easier to spot potential problems before they occur.
The market's demand for its services is skyrocketing: Datadog's revenue rose 66% in 2020, and surged another 70% to $1.03 billion in 2021. Here's how rapidly it's grown over the past five quarters.
METRIC
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Revenue Growth (YOY)
75%
84%
83%
74%
61%
Adjusted EPS Growth (YOY)
160%
233%
300%
167%
77%
Data source: Datadog. YOY = Year-over-year.
For the full year, Datadog expects revenue to rise 60%-61% and for its adjusted EPS to increase 88%-92%. It had previously expected revenue to rise 56%-58%, and EPS to grow 54%-81%.
Locking in high-value customers
In addition to that rosier guidance, Datadog continues to gain large customers that bring in more than $100,000 in annual recurring revenue (ARR). That high-value cohort expanded from just 858 customers at the end of 2019 to 2,600 in its latest quarter. The company now generates about 85% of its revenue from those larger customers.
METRIC
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Customers with ARR > $100,000
1,800
2,010
2,250
2,240
2,600
Growth (YOY)
66%
63%
60%
54%
44%
Data source: Datadog.
Datadog's dollar-based net retention rate, which measures its year-over-year revenue growth per existing customer, has also remained comfortably above 130% over the past year. Some 80% of its customers are now using two or more of its products, compared to 77% a year earlier, while 40% were using four or more of its products, compared to 31% a year ago.
Stable gross and operating margins
On a non-GAAP (generally accepted accounting principles) basis, Datadog's gross and operating margins expanded year-over-year in the third quarter, but dipped slightly from the second quarter.
METRIC
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Gross Margin (Non-GAAP)
78%
80%
80%
81%
80%
Operating Margin (Non-GAAP)
16%
22%
23%
21%
17%
Data source: Datadog.
During the conference call, CFO David Obstler attributed the company's year-over-year margin expansion to "efficiencies in cloud costs," and expects its adjusted gross margin to remain in the "high 70s" in the "medium to long-term."
Datadog also recently acquired the cloud infrastructure visualization service Cloudcraft to expand its platform, but Obstler noted that it was a "small company" which would generate an "immaterial amount of revenues."
Two bearish arguments
Datadog's growth rates are impressive, but its GAAP numbers -- which factor in its stock-based compensation (SBC) and other one-time expenses -- highlight some underlying weaknesses. Its GAAP operating margins notably turned negative over the past two quarters, and it racked up net losses over the past two quarters as it ramped up its spending.
METRIC
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Operating Margin (GAAP)
(2%)
3%
3%
(1%)
(7%)
Net Income (Loss)
($5.5M)
$7.2M
$9.7M
($4.9M)
($26.0M)
Data source: Datadog.
Bulls believe those numbers will improve once Datadog reins in its SBC expenses, which gobbled up 21% of its revenue in the first nine months of 2022, but the bears will argue that this red ink will limit its upside potential as interest rates continue to rise.
The bears also likely believe Datadog's stock is still too expensive, especially as rising rates drive investors toward cheaper stocks. Its enterprise value of $22.7 billion still values the company at about ten times next year's sales.
A better value than some peers
I believe Datadog's high growth rates still justify its higher valuation. It's already gotten a lot cheaper over the past year; at its peak of $196.56 last November, it was valued at $60.6 billion, or 37 times the revenue it now expects to generate in 2022.
It's also cheaper than other hypergrowth stocks like Snowflake, which is growing at a comparable rate but trades at 14 times next year's sales. Cloudflare, which is growing at a slightly slower pace, trades at 13 times next year's sales. Datadog's GAAP profits are volatile, but it's still in better shape than these and other hypergrowth cloud companies that have yet to generate a single quarter of GAAP profits.
Therefore, Datadog is definitely a risky stock -- but I believe it's still a great long-term buy for patient investors at these levels.
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 September 30, 2022
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare, Inc., Datadog, and Snowflake Inc. 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) posted its third-quarter earnings report on Nov. 3. Still a hypergrowth stock Datadog's platform collects diagnostic data from a company's servers, databases, and apps in real time, then aggregates all of that information onto unified visual dashboards for IT professionals. Datadog also recently acquired the cloud infrastructure visualization service Cloudcraft to expand its platform, but Obstler noted that it was a "small company" which would generate an "immaterial amount of revenues."
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Datadog (NASDAQ: DDOG) posted its third-quarter earnings report on Nov. 3. Revenue Growth (YOY) 75% 84% 83% 74% 61% Adjusted EPS Growth (YOY) 160% 233% 300% 167% 77% Data source: Datadog. Customers with ARR > $100,000 1,800 2,010 2,250 2,240 2,600 Growth (YOY) 66% 63% 60% 54% 44% Data source: Datadog.
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Datadog (NASDAQ: DDOG) posted its third-quarter earnings report on Nov. 3. Revenue Growth (YOY) 75% 84% 83% 74% 61% Adjusted EPS Growth (YOY) 160% 233% 300% 167% 77% Data source: Datadog. Datadog's dollar-based net retention rate, which measures its year-over-year revenue growth per existing customer, has also remained comfortably above 130% over the past year.
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Datadog (NASDAQ: DDOG) posted its third-quarter earnings report on Nov. 3. Customers with ARR > $100,000 1,800 2,010 2,250 2,240 2,600 Growth (YOY) 66% 63% 60% 54% 44% Data source: Datadog. The bears also likely believe Datadog's stock is still too expensive, especially as rising rates drive investors toward cheaper stocks.
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2a83a6c0-633c-41a1-82d8-955ecf9f36ef
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718476.0
|
2022-11-06 00:00:00 UTC
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3 No-Brainer Stocks I'd Buy Right Now Without Hesitation
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DDOG
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https://www.nasdaq.com/articles/3-no-brainer-stocks-id-buy-right-now-without-hesitation-6
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nan
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nan
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High inflation, rising interest rates, and other macro headwinds caused many investors to broadly shun growth stocks this year as the S&P 500 lost more than 20% of its value and the Nasdaq Composite sank by over 30%. However, this ongoing bear market also created some incredible buying opportunities for investors who can tune out the near-term noise.
So today, I'll highlight three high-growth tech stocks I'd still buy in this bear market without any hesitation: ASML Holding (NASDAQ: ASML), Datadog (NASDAQ: DDOG), and Palo Alto Networks (NASDAQ: PANW).
Image source: Getty Images.
1. The semiconductor play: ASML
ASML is arguably the world's most important semiconductor equipment company. It's the world's largest manufacturer of photolithography systems, which are used to etch circuit patterns onto silicon wafers. It's also the only maker of high-end EUV (extreme ultraviolet) lithography systems, which are used by foundries to create the world's smallest and densest chips.
The world's most advanced foundries -- Taiwan Semiconductor Manufacturing, Samsung, and Intel -- all require a steady supply of ASML's EUV systems, which cost about $200 million each, to manufacture their newest chips. The Dutch company's monopolization of this crucial technology makes it a great way to gain exposure to the entire semiconductor sector without betting on a single chipmaker.
Between 2018 and 2021, ASML's revenue rose at a compound annual growth rate (CAGR) of nearly 20%, while its EPS increased at a CAGR of 33%. Its near-term growth will decelerate as supply chain constraints limit its shipments of new systems, but that slowdown isn't related to the market's demand, which continues to outstrip its available supply.
ASML's stock got a bit overheated last year, but it now trades at just 24 times forward earnings. I believe that reasonable valuation makes it a very compelling investment, even if the broader semiconductor market gradually slows down.
2. The hypergrowth cloud play: Datadog
Datadog's cloud-based platform accumulates diagnostic data from a wide range of servers, databases, and apps across a company's infrastructure. It then organizes that information onto visual dashboards for IT professionals, which makes it much easier to spot and diagnose potential problems.
Datadog went public in late 2019. Its revenue surged 66% in 2020 and jumped 70% to $1.03 billion in 2021, and it expects 60%-61% growth this year. Its number of customers that generated over $100,000 in annual recurring revenue (ARR) more than tripled from 858 at the end of 2019 to 2,600 in the third quarter of 2022. Its dollar-based net retention rate, or its year-over-year revenue growth per existing customer, has also remained above 130% over the past year.
Datadog isn't consistently profitable by GAAP (generally accepted accounting principles) measures yet, but it turned profitable on a non-GAAP basis in 2020. Its non-GAAP EPS more than doubled in 2021, and it expects another 88%-92% growth this year. Datadog's stock might initially seem a bit pricey at 72 times forward earnings and 11 times next year's sales. However, I'd argue those valuations are pretty reasonable relative to those of other hyper-growth stocks, and that it still has plenty of room to expand as more large companies recognize the long-term value of its unified IT dashboards.
3. The cybersecurity play: Palo Alto Networks
Cybersecurity companies are generally resistant to macroeconomic headwinds because their customers won't lower their digital defenses just to save a few dollars. However, many cybersecurity stocks still fare poorly during market downturns because they're either unprofitable or too pricey.
Palo Alto Networks is a cybersecurity leader that provides a comfortable balance of growth, profitability, and value in this wobbly market. It currently operates three main platforms: Strata, its legacy next-gen firewall and network security suite; Prisma, its cloud-native security services; and Cortex, its platform for AI-powered threat-detection tools. Prisma and Cortex, which it dubs its next-gen security (NGS) services, drove most of its recent growth.
Between fiscal 2012 and fiscal 2022, which ended this July, Palo Alto's annual revenue rose at a CAGR of 36% to $5.5 billion. For fiscal 2023, it expects its revenue to rise 25%, and for its non-GAAP EPS to rise 24%-26%. It also expects to turn firmly profitable by GAAP measures for the full year.
Palo Alto's stock might not initially seem cheap at 54 times forward earnings and 6 times next year's sales, but it's a lot cheaper than higher-growth (but unprofitable) cybersecurity plays like CrowdStrike, Zscaler, and SentinelOne. That makes it my favorite long-term play on the cybersecurity market, and a no-brainer buy during this market pullback.
10 stocks we like better than ASML Holding
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They just revealed what they believe are the ten best stocks for investors to buy right now... and ASML Holding wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Leo Sun has positions in ASML Holding, CrowdStrike Holdings, Inc., and Palo Alto Networks. The Motley Fool has positions in and recommends ASML Holding, CrowdStrike Holdings, Inc., Datadog, Intel, Palo Alto Networks, Taiwan Semiconductor Manufacturing, and Zscaler. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, short January 2023 $57.50 puts on Intel, and short January 2025 $45 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So today, I'll highlight three high-growth tech stocks I'd still buy in this bear market without any hesitation: ASML Holding (NASDAQ: ASML), Datadog (NASDAQ: DDOG), and Palo Alto Networks (NASDAQ: PANW). High inflation, rising interest rates, and other macro headwinds caused many investors to broadly shun growth stocks this year as the S&P 500 lost more than 20% of its value and the Nasdaq Composite sank by over 30%. The Dutch company's monopolization of this crucial technology makes it a great way to gain exposure to the entire semiconductor sector without betting on a single chipmaker.
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So today, I'll highlight three high-growth tech stocks I'd still buy in this bear market without any hesitation: ASML Holding (NASDAQ: ASML), Datadog (NASDAQ: DDOG), and Palo Alto Networks (NASDAQ: PANW). The Motley Fool has positions in and recommends ASML Holding, CrowdStrike Holdings, Inc., Datadog, Intel, Palo Alto Networks, Taiwan Semiconductor Manufacturing, and Zscaler. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, short January 2023 $57.50 puts on Intel, and short January 2025 $45 puts on Intel.
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So today, I'll highlight three high-growth tech stocks I'd still buy in this bear market without any hesitation: ASML Holding (NASDAQ: ASML), Datadog (NASDAQ: DDOG), and Palo Alto Networks (NASDAQ: PANW). See the 10 stocks *Stock Advisor returns as of September 30, 2022 Leo Sun has positions in ASML Holding, CrowdStrike Holdings, Inc., and Palo Alto Networks. The Motley Fool has positions in and recommends ASML Holding, CrowdStrike Holdings, Inc., Datadog, Intel, Palo Alto Networks, Taiwan Semiconductor Manufacturing, and Zscaler.
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So today, I'll highlight three high-growth tech stocks I'd still buy in this bear market without any hesitation: ASML Holding (NASDAQ: ASML), Datadog (NASDAQ: DDOG), and Palo Alto Networks (NASDAQ: PANW). The world's most advanced foundries -- Taiwan Semiconductor Manufacturing, Samsung, and Intel -- all require a steady supply of ASML's EUV systems, which cost about $200 million each, to manufacture their newest chips. The Motley Fool has positions in and recommends ASML Holding, CrowdStrike Holdings, Inc., Datadog, Intel, Palo Alto Networks, Taiwan Semiconductor Manufacturing, and Zscaler.
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718477.0
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2022-11-06 00:00:00 UTC
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2 Beaten-Down Cyber Security Growth Stocks Worth Buying Hand Over Fist
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DDOG
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https://www.nasdaq.com/articles/2-beaten-down-cyber-security-growth-stocks-worth-buying-hand-over-fist
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Growth stocks have taken a beating in 2022 and could continue to fall; many don't generate positive cash flow and still trade for very rich valuations. But DataDog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) are two leading cybersecurity stocks investors shouldn't ignore. In this video, Motley Fool contributors Jeff Santoro and Jason Hall break down what makes them attractive enough to buy hand over fist right now.
*Stock prices used were the after-hours prices of Nov. 4, 2022. The video was published on Nov. 5, 2022.
Find out why CrowdStrike Holdings, Inc. is one of the 10 best stocks to buy now
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*Stock Advisor returns as of September 30, 2022
Jason Hall has positions in Datadog. Jeff Santoro has positions in CrowdStrike Holdings, Inc. and Datadog. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc. and Datadog. The Motley Fool has a disclosure policy. Jason Hall 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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But DataDog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) are two leading cybersecurity stocks investors shouldn't ignore. Growth stocks have taken a beating in 2022 and could continue to fall; many don't generate positive cash flow and still trade for very rich valuations. In this video, Motley Fool contributors Jeff Santoro and Jason Hall break down what makes them attractive enough to buy hand over fist right now.
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But DataDog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) are two leading cybersecurity stocks investors shouldn't ignore. In this video, Motley Fool contributors Jeff Santoro and Jason Hall break down what makes them attractive enough to buy hand over fist right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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But DataDog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) are two leading cybersecurity stocks investors shouldn't ignore. In this video, Motley Fool contributors Jeff Santoro and Jason Hall break down what makes them attractive enough to buy hand over fist right now. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc. and Datadog.
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But DataDog (NASDAQ: DDOG) and CrowdStrike (NASDAQ: CRWD) are two leading cybersecurity stocks investors shouldn't ignore. In this video, Motley Fool contributors Jeff Santoro and Jason Hall break down what makes them attractive enough to buy hand over fist right now. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc. and Datadog.
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2022-11-04 00:00:00 UTC
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Datadog (DDOG) Q3 Earnings Rise Y/Y, Revenues Beat Estimates
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q3-earnings-rise-y-y-revenues-beat-estimates
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Datadog(DDOG) reported third-quarter 2022 non-GAAP earnings of 23 cents per share, which increased 77% from the year-ago quarter. The Zacks Consensus Estimate for loss was pegged at 14 cents per share.
The company’s net revenues of $436.5 million surpassed the consensus mark by 5.92%. The figure increased 61.4% year over year.
Quarter Details
In the third quarter of 2022, Datadog had about 2,600 customers with an annual run rate of $100K or more, up from 1,800 in the year-ago quarter.
As of the end of the third quarter, 80% of customers used two or more products, up from 77% in the year-ago quarter. Additionally, 40% of customers utilized four or more products, up from 31% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% for the 21st consecutive quarter, driven by increased usage and adoption of existing and new products.
Operating Details
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
In the third quarter, Datadog’s adjusted gross margin increased 200 basis points (bps) on a year-over-year basis to 78.6%.
Research & development expenses increased 82.3% on a year-over-year basis to $205.4 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, increased 540 bps to 47%.
Sales and marketing expenses increased 70.8% year over year to $129.5 million. Sales and marketing expenses, as a percentage of revenues, grew 160 bps to 29.7%.
General & administrative expenses increased 67.3% year over year, reaching $39.4 million in the reported quarter. General & administrative expenses, as a percentage of revenues, increased 30 bps to 9%.
Datadog reported a non-GAAP operating income of $81 million compared with $44.3 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2022, Datadog had cash, cash equivalents and marketable securities of $1.8 billion compared with $1.7 billion as of Jun 30, 2022.
Operating cash flow was $83.6 million in the reported quarter, up from $73 million reported in the previous quarter.
Free cash flow during the quarter was $67.1 million compared with $60.2 million in the prior quarter.
Guidance
For the fourth quarter of 2022, Datadog anticipates revenues between $445 million and $449 million. The Zacks Consensus Estimate for the same is pegged at $440.84 million.
Non-GAAP earnings are expected to be 18-20 cents per share. The consensus mark for earnings is pegged at 14 cents per share.
Non-GAAP operating income is expected in the range of $56-$60 million.
For 2022, Datadog anticipates revenues between $1.650 billion and $1.654 billion. The Zacks Consensus Estimate for the same is pegged at $1.62 billion.
Non-GAAP earnings are expected to be between 90 cents and 92 cents. The Zacks Consensus Estimate for earnings stands at 78 cents per share.
Non-GAAP operating income is expected in the range of $300-$304 million.
3Q22 Highlights
Datadog announced the general availability of Datadog Continuous Testing, a new product that helps developers and quality engineers quickly create, manage and run end-to-end tests for their web applications.
It launched Cloud Cost Management, which shows an organization's cloud spending in the context of its observability data. This allows engineering and FinOps teams to automatically attribute spending to applications, services and teams, track any changes in spending, understand why those changes occurred and include costs as a key performance indicator of application health.
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.
Datadog Certification Program was also launched in the third quarter of 2022. The program builds on the Datadog Learning Center to help developers further uplevel their observability skills.
The company achieved Amazon Web Services (“AWS”) Security, Networking and Retail competencies. In total, Datadog has now received nine competencies, the most of any integrated observability company supporting AWS to date. It also extended Monitoring for Microsoft SQL and Microsoft Azure Database Platforms. With this expanded support, engineers and database administrators can quickly pinpoint and address database performance issues, such as costly and slow queries, incorrect indexes in SQL server or Azure databases and bottlenecks in their applications.
Zacks Rank & Other Stocks to Consider
Currently, Datadog carries a Zacks Rank #2 (Buy).
Datadog’s shares have declined 57.9% compared with the Zacks Computer and Technology sector’s fall of 37.7% in the year-to-date period.
Investors interested in the broader Zacks Computer & Technology sector can also consider some other top-ranked stocks like eGain EGAN, Flux Power FLUX and Monday.com MNDY, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of eGain have lost 25% in the year-to-date period. The company is expected to release its first-quarter fiscal 2023 earnings on Nov 7.
Shares of Flux Power have lost 19.3% in the year-to-date period. The company is expected to release its first-quarter fiscal 2023 earnings on Nov 10.
Shares of Monday.com have declined 69.8% in the year-to-date period. The company is expected to release its third-quarter 2022 earnings on Nov 14.
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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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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog(DDOG) reported third-quarter 2022 non-GAAP earnings of 23 cents per share, which increased 77% from the year-ago quarter. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog’s dollar-based retention rate was above 130% for the 21st consecutive quarter, driven by increased usage and adoption of existing and new products.
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Datadog(DDOG) reported third-quarter 2022 non-GAAP earnings of 23 cents per share, which increased 77% from the year-ago quarter. Datadog, Inc. (DDOG): Free Stock Analysis Report Research & development expenses increased 82.3% on a year-over-year basis to $205.4 million, driven by increased investments in Datadog’s platform.
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Datadog(DDOG) reported third-quarter 2022 non-GAAP earnings of 23 cents per share, which increased 77% from the year-ago quarter. Datadog, Inc. (DDOG): Free Stock Analysis Report Operating Details Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote In the third quarter, Datadog’s adjusted gross margin increased 200 basis points (bps) on a year-over-year basis to 78.6%.
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Datadog(DDOG) reported third-quarter 2022 non-GAAP earnings of 23 cents per share, which increased 77% from the year-ago quarter. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog reported a non-GAAP operating income of $81 million compared with $44.3 million in the year-ago quarter.
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2022-11-03 00:00:00 UTC
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Why Datadog Stock Popped Thursday Morning
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-popped-thursday-morning
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What happened
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday morning, surging as much as 6.1%. As of 1:31 p.m. ET, the stock was up 2.1%, even as the broader market indexes slumped.
The catalyst that drove the cloud monitoring and security company higher was third-quarter financial results that far exceeded expectations.
So what
Datadog generated revenue of $437 million, up 61% year over year, on top of 75% growth in the prior-year quarter. At the same time, the company delivered adjusted earnings per share (EPS) of $0.23, which surged 77%.
To give those numbers context, analysts' consensus estimates were calling for revenue of $414.8 million and adjusted EPS of $0.16.
The fuel that drove the impressive results were equally strong client metrics. Total customers of 22,200 increased 27% year over year. Perhaps as importantly, however, Datadog ended the quarter with 2,600 customers that generate annual recurring revenue (ARR) of $100,000 or more, up 44%. These are Datadog's most important customers, as they contribute 85% of the company's ARR.
Now what
Datadog provided investors other reasons to cheer. The company now expects full-year revenue in a range of $1.65 billion to $1.654 billion, up from its previous guidance of $1.61 billion to $1.63 billion. Datadog also boosted its bottom-line outlook, forecasting adjusted EPS in a range of $0.90 to $0.92, up from its prior range of $0.74 to $0.81. This shows that the company is leveraging its growing scale to drop more profits to the bottom line.
The company's ability to "beat and raise," beating analysts' expectations, while simultaneously raising guidance, was enough to send Datadog higher.
To be clear, investors have baked plenty of growth into Datadog stock, which isn't cheap in terms of traditional metrics. It's currently trading for 11 times next year's sales, when a reasonable price-to-sales ratio is between 1 and 2. That said, management is forecasting year-over-year revenue growth of 60% this year, which is strong by any measure.
Still, investors with the stomach for a little risk and volatility and a three-to-five-year outlook should consider taking this dog for a walk.
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 September 30, 2022
Danny Vena has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday morning, surging as much as 6.1%. The catalyst that drove the cloud monitoring and security company higher was third-quarter financial results that far exceeded expectations. To be clear, investors have baked plenty of growth into Datadog stock, which isn't cheap in terms of traditional metrics.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday morning, surging as much as 6.1%. So what Datadog generated revenue of $437 million, up 61% year over year, on top of 75% growth in the prior-year quarter. Datadog also boosted its bottom-line outlook, forecasting adjusted EPS in a range of $0.90 to $0.92, up from its prior range of $0.74 to $0.81.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday morning, surging as much as 6.1%. So what Datadog generated revenue of $437 million, up 61% year over year, on top of 75% growth in the prior-year quarter. 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) charged sharply higher Thursday morning, surging as much as 6.1%. At the same time, the company delivered adjusted earnings per share (EPS) of $0.23, which surged 77%. Datadog also boosted its bottom-line outlook, forecasting adjusted EPS in a range of $0.90 to $0.92, up from its prior range of $0.74 to $0.81.
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2022-11-03 00:00:00 UTC
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Datadog (DDOG) Q3 2022 Earnings Call Transcript
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q3-2022-earnings-call-transcript
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Image source: The Motley Fool.
Datadog (NASDAQ: DDOG)
Q3 2022 Earnings Call
Nov 03, 2022, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day and thank you for standing by. Welcome to the Q3 2022 Datadogearnings conference call [Operator instructions] I would now like to hand the conference over to your speaker today, Yuka Broderick, vice president of investor relations and strategic finance. Please go ahead.
Yuka Broderick -- Head of Investor Relations
Thank you, Lauren. Good morning and thank you for joining us to review Datadog's third quarter 2022 financial results, which we announced in our press release issued this morning. Joining me on the call today are Olivier Pomel, Datadog's co-founder and CEO, and David Obstler, Datadog's CFO. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the fourth quarter and the fiscal year 2022, our gross margins and operating margins, our strategies, our product capabilities, and our ability to capitalize on market opportunities.
The words anticipate, believe, continue, estimate, expect, intent, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our Form 10-Q for the quarter ended June 30, 2022. Additional information will be made available in our upcoming Form 10-Q for the quarter ended September 30, 2022 and other filings with the SEC.
10 stocks we like better than Datadog
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This information is also available on the Investor Relations section of our website along with the replay of this call. We will also discuss non-GAAP financial measures, which are reconciled to their most directly comparable GAAP financial measures in the tables in our earnings release, which is available at investors.datadoghq.com. With that, I'd like to turn the call over to Olivier.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thanks, Yuka, and thank you all for joining us this morning. We are pleased to report strong results in Q3 as we continued to execute on our platform vision. Let me start with a review of our financial performance. In Q3, revenue was $437 million, an increase of 61% year over year and above the high end of our guidance range.
We had about 22,200 customers, up from about 17,500 in the year-ago quarter. We ended the quarter with about 2,600 customers with ARR of $100,000 or more, up from about 1,800 in the year-ago quarter. These customers generated about 85% of our ARR. We generated free cash flow of $67 million, with a free cash flow margin of 15%.
And our dollar-based net retention rates continued to be over 130% as customers increase their usage and adopted more products. Next, our platform strategy continues to resonate in the market. At the end of Q3, 80% of customers were using two or more products, up from 77% a year ago. 40% of customers were using four or more products, up from 31% a year-ago and 16% of our customers were using six or more products, up from 8% a year ago.
We continued to be pleased with this continued adoption of multiple products in our platform, which indicates the additional value we are bringing to our customers. We continue to see strong ARR growth with our newer offerings and our products introduced since 2019, which excludes infrastructure monitoring, core ATM and wealth management remain in hyper growth mode. I also want to highlight a couple of our newer products, Database Monitoring and CI Visibility. We started charging for these products three and two quarters ago, respectively, and each has already exceeded in ARR and more than 1,000 customers.
And as we are further developing them, we are confident these products will lead to a broader set of use cases for a larger set of customers over time. Now moving on to this core business drivers. At a high level, Q3 was overall very similar to Q2 with strong performance in new logos and new product attach activities tempered by growth of user from existing customers that further healthy was below our long-term historical average. This added up to sequential net ARR added that was slow to Q2.
To give you a bit more color, first, on the usage trend. As we said, user growth was overall solid, but consistent with Q2 trends. From a product perspective, Nostra was more homogeneous among our major products than it had been in Q2. Looking at industry verticals, similar to last quarter, we continue to see a more pronounced effect in consumer discretionary and in particular with our customers that are cognitive and fully scaled into public cloud.
Note that the consumer discretionary vertical represents low-teens percent of ARR and increase e-commerce as well as food and delivery. All that said, we are pleased with our Q3 strong performance. Revenue in Q3 grew 61% year over year and 7% quarter over quarter. With all of our products meaningfully outperforming the growth of the large cloud providers.
While the macroeconomic environment is likely to remain a headwind in the near-term, we continue to see positive trends underpinning our business and remain bullish about the long-term opportunities and aggressive with our investment plan. First, we continue to see strong growth in new logo ARR, including some large wins in traditional industries. We'll talk about some of those in a bit. Second, our sales pipeline is strong heading into Q4 for both new logos and new products.
And we're seeing great opportunities across customer prices, geography, and industry. Alongside our strength in new logo ARR, which gives us confidence that visual transformation and cloud migration remain a top priority. It's perhaps even more critical in difficult times when businesses need to be more agile and do more with less. Remember that with our usage specifically models, new logos wins generally do not immediately translate into meaningful revenue, but they are very important to us as new customers expand their usage in subsequent new quarters and subsequent years.
Third, we are seeing continued expansion on our platform as indicated by customers adopting more of our products. And finally, churn remains low and hasn't changed with gross revenue retention steady in the mid to high 90s. We believe this high gross revenue retention is indicative of the business criticality to have Datadog for our customers. Now let's move on to product and R&D.
Few weeks ago, we had our Dash user conference, which was an occasion to showcase the expansion of our products and the results of our R&D investments. Let me go through some of these starting with visibility before moving on to security, developer experience; and finally, the ability to take action within Datadog. First, we are doubling down on our investments in the visibility, starting with two new products, Data Stream Monitoring and Cloud Cost Management, both addressing growing needs and strong demand from our customers. We also extended our APN fleet to offer mobile app testing, map and dynamic experimentation.
On the network side, we added traps and monitoring products. On the learning side, we announced low-forward, which coupled with live archives and the visibility pipeline retested at the center of our customers better management. Responding to customer demand. We also expanded our sensitive data scanner beyond logs to identify sensitive data across APM and RAM.
And across the platform, we've announced expanded support for open telemetry, PCI compliance where we have on log, as well as EPA compliance across most of Datadog. Second, we are extending our security platform. We announced cloud security management, which brings together cloud security, cloud security posture management and resource catalog as a frictionless reach and context aware, cloud native application correction platform or CNAP. We launched massive protection for application security management to enable blocking attacks in real time directly with the Datadog platform.
And we now provide renewability monitoring to give our users a high-fidelity picture of all applications production as well as the dependencies, renewability, and the attach rate base. Third, we follow through with our recent entry in developer experience. We announced continuous testing to facilitate end-to-end testing as soon as the cloud is develop, which increases quality and velocity at the same time. And we showcase intelligent test run using our rich APM and propylene data to automatically keep united tests and drastically reduce soon money spent on CICD.
Fourth and last but not least, we announced new product areas that take our platform for observing to allowing our users with action and response all within Datadog. We announced our asset management products to allow users to correlate and summarize alerts, events and issues, movies in order to resolve problems directly from the Datadog area of concern. We also announced that the workflow, which allows customers to develop and run ultimately develop or security remediation using no code editor and already more than 200 integrations to furbishing. We announced lease availability for hosting the collaboration meeting tool that we acquired last year, RUM's real-time screen sharing installation point in Datadog.
And finally, we kept on expanding the scope of our watchdog AIM energy. Further automating the detection and guiding the resolution of application in the cost problems. As for dominance from NASH. And as you can tell, the team has been hard at work, and I'm extremely proud of our innovation velocity and focus on our customers.
And lastly on products. As we announced in the press release issued this morning, we acquired Cloud Craft, a planning design tool used by tens of thousands of cloud architects to create lifetime, including real-time health, configuration and cost data and we are very excited for their team to bring to Datadog. Now moving on to sales and marketing. Let's discuss some of our wins in Q2.
First, we signed a 7-figure land with a Fortune 100 grocery chain. This company was mitigating to Azure but was held back by their open source solution. And because this grocery chain has fanatic better controls around personally investing fair information. Our extensive data center and our HIPPA compliance filled that gap and were differentiators for Datadog giving this opportunity.
Next, we signed a seven-figure land with a major multinational restaurant chain, this company had a legacy availability solution that wasn't able to scale with their vision of subunits and severe environment. They also needed an end-to-end view of their customer journey, and we will now use their paradox products, including Synthetics and RUM to drive customer experience improvement. Next, we signed a seven-figure land with a social networking app. This company was previously a Datadog customer but had moved several years ago to a competitor as maybe certain languages where APM product is going to go well at the time.
Today, our APM not only magical abilities of the solution, but presented significant advantages in terms of either deployment, alerting and [Inaudible] detection. And we also plan to take advantage of our new service catalog, taking Datadog at the center of the operation. Next, we had a seven-figure up-sell with a large Asia-based technology conglomerate. This company is many business units include consumer electronics and IoT.
And the use of Datadog has grown rapidly with the number of devices we are managing. We had a number of benefits from using Datadog including lowering the amount of buckets by 25% and a high time to resolution by 50%. We have also seen a significant sensing in incident response activity by encode engineers from 20 hours, 22 hours per week. With this new, this customer has now adopted 14 Datadog products.
Next, we had an eight-figure multiyear upsell with a large e-commerce company. This customer had been using primarily infrastructure monitoring and APM with Datadog and he was also operating an open source of input. Using Datadog led to significant efficiency including certain customer impacting incidents by close to two-thirds and reducing the number of employees required to address each incident by one-third. With this renewal, they are adopting Datadog Log Management and ROM and consolidating multiple home growth and cloud-mated tools as well as a commercial competitor.
That's it for this quarter's customer highlights, and I'd like to thank our go-to-market team for the award and for delivering another strong quarter. Now let me speak to our longer-term outlook. We recognize the macro environment remains uncertain. We continue to see no change to the multiyear trend toward digital transformation and cloud migration.
And we remain confident that we can help our customers with their efforts to sell on costs, drive credit engineering efficiency and take advantage of the benefits of cloud and other next-gen technologies. So we are continuing to invest in our strategic priorities to capture our long-term opportunity. We remain laser focused on bringing value to our customers as we manage through more challenging economic environment. With that, I will turn the call over to our CFO for a review of our financial performance and guidance.
David?
David Obstler -- Chief Financial Officer
Thanks, Olivier. In Q3, we continued to execute well and support our customers. Revenue was $437 million, up 61% year over year and up 7% quarter over quarter. To dive into some of the drivers.
First, we experienced strong new logo ARR growth and continued low churn again this quarter. We saw existing customer usage growth remain at levels similar to Q2 as customers continue to be more cost-conscious as they manage their businesses. As Olivier noted, we saw a roughly similar sequential growth in ARR dollars added in Q3 as in Q2. And we saw a relatively homogenous usage growth among our major products during Q3.
As with Q2, we saw relatively more deceleration in the consumer discretionary vertical, particularly in e-commerce and food and delivery. And we saw similar growth across geographies. As a reminder, we bill all of our revenue in US dollars, and we do not price in local currencies. Our dollar-based net retention remained at strong levels above 130% for the 21st consecutive quarter.
Our land and expand model, aggressive product innovation and our customers' motion to the cloud continue to drive expansion opportunities with our existing customer base. Overall, the customer usage growth we're seeing remains higher than the trough growth we experienced at the beginning of COVID in 2020, and we're pleased with our 61% year over year and 7% quarter-on-quarter revenue growth this quarter. Meanwhile, gross revenue retention was unchanged and steady in the mid to high 90s. Regardless of the macroeconomic environment, our customers still need to serve their clients and moving to the cloud enables better service and cost savings against people intensive or on-prem technology based offerings.
We believe our high and steady gross retention indicates that Datadog is critical to our customer's ability to deliver services to their clients digitally. And as Oli mentioned, on new logos, we saw continued strong new logo ARR growth across geographies, industries and company sizes, and we have a strong pipeline of opportunities in Q4. Finally, our platform strategy continues to resonate with customers with 80% of our customers using two or more products, 40% using four or more products and 16% using six or more products as of the end of Q3. Moving on to our financial statements, billings were $467 million, up 51% year over year.
Billings duration was slightly lower year over year. Remaining Performance Obligations, or RPO was $941 million, up 31% year over year. Current RPO growth was in the mid-40s year over year. As a reminder, we signed several large multiyear renewals in Q3 2021, which may make current RPO, a more useful indicator with -- as it excludes the multiyear duration impact.
We also had a challenging comparables of that metric as Q3 of last year, current RPO growth was about 100%. We continue to believe revenue is a better indication of our business trends than billings or RPO as those can fluctuate relative to revenue based on the timing of invoices and the duration of customer contracts. Now let's review some key income statement results. Unless otherwise noted, all metrics are non-GAAP.
We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. First, gross profit in the quarter was $348 million, representing a gross margin of 80%. This compares to a gross margin of 81% last quarter and 78% in the year ago quarter. We continue to experience efficiencies in cloud costs reflected in our cost of goods sold this quarter.
In the medium to long-term, we continue to expect gross margin to be in the high 70s range. Our Q3 non-GAAP opex grew 65% year over year as we continue to grow our headcount in R&D and go-to-market. Q3 operating income was $75 million or a 17% operating margin compared to an operating income of $44 million or a 16% operating margin in the year ago quarter. Then turning to the balance sheet and cash flow statements.
We ended the quarter with $1.8 billion in cash, cash equivalents, restricted cash and marketable securities. Cash flow from operations was $84 million in the quarter after taking into consideration capital expenditures and capitalized software, free cash flow was $67 million for a free cash flow margin of 15%. Now for our outlook for the fourth quarter and fiscal year 2022. First, informing our guidance, we continue to use conservative assumptions as to the organic growth of our customers.
And as usual, we are basing our guidance on current economic conditions, which includes slower than historical growth in usage among existing customers as we have seen in Q2 and Q3. For the fourth quarter, we expect revenue to be in the range of $445 million to $449 million, which represents 37% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $56 million to $60 million. And non-GAAP net income per share is expected to be in the $0.18 to $0.20 per share range based on an approximate 347 million weighted average diluted shares outstanding.
For fiscal year 2022, we expect revenue to be in the range of $1.65 billion to $1.654 billion, which represents 61% year-over-year growth at the midpoint. And non-GAAP operating income is expected to be in the range of $300 million to $304 million with non-GAAP net income per share expected to be in the range of $0.90 to $0.92 per share, again, based on an approximate 346 million weighted average annual diluted shares. Now some notes on guidance. As we discussed last quarter, Q4 includes some large input person events, including our Dash user conference, which was held two weeks ago, and AWS Reinvent, our largest trade show event of the year.
The cost of those events will result in an approximate 300 to 400 basis points effect on margins. As it relates to our capital expenditures, we are adding more office space around the world as we continue to return to office. We expect capex of about $15 million in Q4. In conclusion, while we recognize macroeconomic uncertainty continued into Q3, we see no change in the importance of cloud migration and digital transformation, which are critical to our customers' competitive advantage.
We believe we are well positioned to help our customers embark on these journeys and we are investing aggressively into our long-term opportunities while maintaining our financial stress. I want to thank Datadogs worldwide for their participation in these efforts. And with that, we will open the call for questions. Operator, let's begin the Q&A.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from the line of Raimo Lenschow with Barclays. Raimo, your line is live.
Raimo Lenschow -- Barclays -- Analyst
Thank you. Congrats on a great Q3. Olivier, like a quick question for me. The first one is on, if you compare the current situation and the current environment and what you saw in the pandemic.
Back then, the hyperscalers kind of talked about cost optimization and customers calling back a little bit. It does seem it's slightly different now. Could you maybe talk a bit about some of the factors that you're seeing out there? And then I have one follow-up for David.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes, the situation is fairly different now from what we saw in Q3. First of all we got was very good, very broad, everyone was planning to serve money as quickly as possible, which is not what we see that we're seeing today, few of things actually. First of all, everything that is related to direct transactions with customers, whether it's new logos or new products, all of that is actually working great, but the demand we can see there is as strong as we've seen it. When you look at the usage and where you might see cost optimization, I think there are two different stories there.
There's these customers that are largely cloud native and normally pretty scale in the pub environment, so then have cloud end-to-end on public cloud that are definitely planning to save money. And these are companies that, in general, also tend to have their own growth rates affected or probably affected in the future by the macro trends. So that's why they're doing that. But when you look at the other customers, the ones that are earlier in their cloud migration, they are actually not slowing down, and we see the same urgency and eagerness for them to keep scaling and keep moving into the cloud.
And that's also where the bulk of our opportunities. When you compare us to the hyperscalers, the -- we are seeing some expenses they see when -- and by the way, I should say, it's always hard to do -- to draw a direct comparison between the numbers of hyperscalers and ours. There the numbers include a bunch of a lot of things beyond infrastructure. And we're also not just in public cloud, but also might quite a bit of a private environment as well.
But we're seeing some of what they're seeing to optimization. We're a little bit less sensitive to it because of what we do, we tend to skew toward more critical environment than everything that might in the hyperscaler. And overall, all of our products meaningfully outperformed the growth of the hyperscalers.
Raimo Lenschow -- Barclays -- Analyst
OK. Perfect. And then David, in these kind of uncertain times, a lot of the time you have negotiations or a vendor has negotiated with customers around billing, billings terms, etc. Have you seen anything that is impacting you or that you can note? Thank you.
David Obstler -- Chief Financial Officer
No, we really haven't seen any difference in billing terms or DSOs for that matter. So on that side, given the mission-critical nature of the product, we haven't seen any material changes in that.
Olivier Pomel -- Co-Founder and Chief Executive Officer
And again, that is different from COVID times, that really a cash [Inaudible] that was a little bit about. And so they are trying to prevent money from going out of the door right way. Like in this case is more preparing for an environment where they might want to watch a profitability a bit more. And customers, when they negotiate on these difficult ones that are fully scaled, the one thing they look for is more cautionary in terms of how long they can be for and how much it can follow period of time when they're -- especially when they be unsure of their own growth rates.
Raimo Lenschow -- Barclays -- Analyst
OK. Perfect. Thank you. Congrats.
Operator
Thank you. Our next question comes from Fred Lee with Credit Suisse. Fred, your line is now open.
Fred Lee -- Credit Suisse -- Analyst
Hey. Good morning and thank you for taking my question. I was wondering if you could comment a little bit on your traction in security. What segments you're seeing the most traction? And also bigger picture, what you're seeing in the wake of the silos breaking down between second DevOps overall?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So bigger picture we -- I mean, fairly well, everybody is talking about it. I could imagine they are the only ones speak about, they need to bring security to get an app, and have given up their -- a lot of responsibility in that. So -- and we're confident that this is -- we see that developing in a way that's very similar to what we see with DevOp about a decade ago.
So this gives us that confidence. In terms of our traction, we're happy with where we are. We mentioned earlier, thousands of customers will not give the products, the customer business is growing fast, the revenue is growing fast, but it's not like growth for grow in the end, typically this product is very fast. And what we see is a lot of market pull of attraction with.
There's a lot of customers who want us to be there, and there's a lot of product investments we seen here today. Some of that in a Dash and there's a lot more coming. So it's working as planned that we'd say at this point.
Fred Lee -- Credit Suisse -- Analyst
Thank you. Great quarter.
Operator
Thank you. Our next question comes from the line of Mark Murphy with J. P. Morgan.
Mark, your line is open.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Yes. Thank you very much, and I will add my congratulations on a nice performance. So Olivier, many customers had said that your Cloud Cost Management Solution is extremely well timed. And they're saying that because they're seeing interest in cost optimizations that didn't exist about six months ago.
I'm wondering if that aligns with your view, and does that feel like a product to you that can get off to a pretty fast start in this environment? And then I have a quick follow-up.
Olivier Pomel -- Co-Founder and Chief Executive Officer
I mean, you're right that cost won't see that -- a lot of people's minds right now. But I would say that it was a really big case six months ago and even a year ago. I think any company that is fully scaled into the cloud cares about their efficiency and they seem that have quite a bit of leverage in terms of cost improvement if they get it the right way with the right tool. So we think it's a product that, yes, it's well timed, but we think it's a product that's going to be -- that has the potential of being very adaptive and very useful for a very long time even after we come out of this challenging macro environment.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
OK. Understood. And then, David, just as a quick follow-up. Looking at the sequential growth in Q3 is around 7%, and the way it appears in guidance for Q4, just thinking about your cadence, that would seem to compound at a year-over-year growth rate around 30%, thinking forward is that type of cadence a fairway to try to conceptualize the glide path into next year, just figuring somewhere around 30%.
If we want to derisk the models, or do you think that Q3 and Q4 are maybe not so representative of where the puck is going to be heading here?
David Obstler -- Chief Financial Officer
Yeah. As a reminder, we provide guidance in a consistent way. We essentially look at the environment, the performance and given the usage model, we put conservative assumptions on top of that. We employed that for the guidance we gave here in Q4.
For next year, we'll provide guidance when we report Q4 and plan to update everybody at that time.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Keep in mind that different aspects that the -- part of it is driven by the new logos where we're getting from customers. Part of it is driven by the growth of existing customers. And the one we actually get also is -- it's tougher to grow customers very fast when they're growing with us a lot over the past few years when customers have grown in the 80% year over year, 30% year over year through all these years, they may go away before after that. But in turn, it might give us an easier compare for the future.
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Thank you, Olivier.
Operator
Thank you. Our next question comes from the line of Sanjit Singh with Morgan Stanley. Sanjit, your line is now open.
Yuka Broderick -- Head of Investor Relations
Sanjit, we can't hear you. Can you please get near to your mic?
Sanjit Singh -- Morgan Stanley -- Analyst
Sorry about that. Appreciate guys taking the question. My question is really around competitive displacements and potentially observability consolidation within your customer base? To what extent are you seeing customers either consolidate open source or other commercial tools and standardize on Datadog, not just to benefit from the innovation that you're seeing from the Datadog's platform, but also to lower their overall observability monitoring spend as they go into next year?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, we do see a little bit of both. I think it's interesting what we've seen in the past. There's no other new trend there, but we see that happening across our customers. We think also in the future, this is going to only become more compelling when customers also bring to us more of their security use cases, more of their user analytics use cases.
So these so far have required different copies of the data to different to different vendors, and this tends to be the most expensive part of the other one, the part of the cost structure that scales in the [Inaudible] vendors. So we think we make a very compelling long-term proposition with these customers.
Sanjit Singh -- Morgan Stanley -- Analyst
That makes a lot of sense. And then I think, Olivier, in your script, you called out a customer that's using 14 different products, which is pretty incredible to think about. For customers that's adopting that many different product capabilities, how is that contract structured? And how does that adoption happen? Is it through some broader, flexible credit system, or are they being -- are these products being sold or priced individually? Can you just give us a sense for a customer that gets up to that level of adoption, how does the contracting work for that type of customer?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yeah. So the majority of those contracts for large customer view of products are made on what we call the drawdown, which is basically setting committed amount of credit that customers can use. In relation to that, they get a red card for all the values queue that are going to consume. And those red clients can also be negotiated.
Some customers use very large amounts of certain products, they can get a better rate of those specific products as well as to negotiate that. I think that's where it gets a little bit taller to that specific use cases in the business.
David Obstler -- Chief Financial Officer
And not to add, that's what we've been talking about the frictionless adoption where the client is using the platform. And given this drawdown with a rate card, they can use the products in a frictionless way as they expand their use of the Datadog platform.
Olivier Pomel -- Co-Founder and Chief Executive Officer
The benefit for them is just -- they usually don't know how much of each of the products they are going to consume ahead of time. But overall, with the shape up there or the size of the environment is going to be, but also don't know within this environment how much APM traces that would need versus logs versus metric versus really use our monitoring, is there anything else that we produce. So it gives them the flexibility there. And again, that's another reason to bring in more tooling of platform because they don't have to pre-commit everything in separate buckets basically.
Sanjit Singh -- Morgan Stanley -- Analyst
Best of luck and thank you for the color.
Operator
Thank you. One moment for the next question. Our next question comes from the line of Koji Ikeda with BofA Securities. Koji, your line is open.
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Hey, Olivier. Hey, David. Thanks for taking the question. I just wanted to dig in here on the consumer discretionary, and I appreciate all the comments you had in the prepared remarks.
But was really wondering how much of that vertical is international? Just thinking about FX and the potential effects of FX there if the USD strength persists in the future? Thanks guys.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So on FX, sorry, David, if I'm stealing your thoughts out. The -- we charge in dollars everywhere. So we don't have any formal FX risk.
We don't provide any adjusted numbers for FX, any of that. We do, however, our customers buy our products from Europe and from Japan, their budgets are still in Japanese yen or in euros. And so we do think that the strong dollar is a headwind for us. We don't see very dramatically different growth rates between Europe, Americas and APAC.
So we think we might see higher growth in APAC and Europe, which are smaller parts of our revenues and less mature if the dollar was weaker. It is conjecture. We can't actually quantify that because we're charging dollars everywhere, but that's something that we are aware of.
David Obstler -- Chief Financial Officer
But in that -- just to add, in that sector, we commented on the predominant effect would be what's happening in their business, in their sector rather than geographical location of the company and its customers.
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Got it. Great guys. Thanks so much for that.. And just one follow-up, if I may, here on the Cloudcraft acquisition.
Just any color on how big this company is? The press release, it says, hundreds of thousands of engineers. So how does that equate to maybe customer overlap? And does Cloudcraft open the door to maybe new personas to sell into within organizations? Thanks so much guys for taking my questions.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So Cloudcraft is very interesting, because it's a very great product. There are lots of opportunities in terms of integrating product with ours. There are opportunities also with some part of this product many stand-alone.
It's a product that works very well for planning and for cloud architects in general to start their planning their document in cloud migration. It's also interesting for us from a distribution perspective because it has a lot of different users today, it has a very broad reach. It's also very easy to embed on third-party sites. So there are a number of opportunities we're excited about with Cloudcraft.
You'll see more as we integrate and as we pursue these opportunities. But we're very excited with the opportunity that we have been tracking for a while.
David Obstler -- Chief Financial Officer
Just to make sure it's clear, it's a small company. It's an acqui-hire like we've done, meaning we are bringing on board the engineers, it does come with a customer base. It's an immaterial amount of revenues relative to our total. And as Oli mentioned, provides an extension of the platform, as well as potentially some leads and some lead generation in the customers and personas.
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Thanks, Oli. Thanks, David. Thanks so much.
Operator
Thank you. One moment for the next question. Our next question comes from Matt Hedberg with RBC. Matt, your line is now open.
Matt Hedberg -- RBC Capital Markets -- Analyst
Great. Thanks, guys. David, for you. Last quarter, you talked about a stronger July versus June.
I'm wondering if you could comment a little bit on how the linearity of the quarter played out, and then maybe also how is -- how did October trend relative to September?
David Obstler -- Chief Financial Officer
Yeah. So for linearity, it was very similar linearity to what we've had. There was no difference. And so we saw -- unlike last quarter a bit, we saw pretty much of a pro rata type of quarter.
And we normally have a strong October in terms of the flow of our customers and what they're doing in the platform before pro freezes. We're pleased with what we have seen so far, but still recognize that October is usually strong for us. And it's only the beginning of the quarter. Oli, anything else you want to add that?
Olivier Pomel -- Co-Founder and Chief Executive Officer
No, I think the one thing you're trying to get through the over time during the quarter, we exited the quarter pretty much at where we entered it. There's no change there. And again, as David said, we're happy with what we see there, and we're also usually happy with our product. Q4 has a bit more seasonality in other quarters, in particular, December tends to be a little bit weaker as a lot of our customers take time off and sit down their development environment and things in that.
It's also been a little bit harder to forecast in recent years with the pandemic and the vacation behavior that change after the pandemic. So we are little bit careful with that, and that's all incorporated in our guidance.
David Obstler -- Chief Financial Officer
Yeah. And remind everybody what we said in the script was that the Q3 performance was very similar in its drivers to Q2. So that's further evidence of, as Oli said, that's the conditions that we ended Q2 will continue throughout the Q3.
Matt Hedberg -- RBC Capital Markets -- Analyst
Thanks for the color guys. Appreciate it.
Operator
Thank you. One moment for the next question. Our next question comes from Brent Thill with Jefferies. Brent, your line is now open.
Brent Thill -- Jefferies -- Analyst
David, a question on investment philosophy. Going into the pandemic, you didn't really pull the throttle back. You had at 11% -- going into these times, are you thinking differently about your investment philosophy in this cycle? And can you talk about quota-carrying reps in terms of -- are you at -- on pace to hire what you thought at the beginning of the year, are you pulling back a little bit given some of the current macro jitters.
David Obstler -- Chief Financial Officer
Yeah. I think as we remind everybody, we've always lived within our means and been limited more by our ability to integrate in a responsible way of quota-carrying reps or R&D for that matter into our company. And we really have not made changes. We had a prudent plan and continued as a reminder to everybody, we think there's a very long-term opportunity, and we're investing behind that.
We are cognizant that there's more volatility in microeconomic conditions, and we're looking at everything, but we didn't get out over our skis up to begin with in our plan. So it allows us given our model and the way we run the company to continue that investment in a systematic way.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Just to restate that, we did make changes, we're investing from an R&D perspective, this was so early, there's so much we want to do, and we have great tractions on the products, and we keep investing there. From a go-to-market perspective, as I mentioned on the call, we actually have a very strong pipeline and the conversion with customers are going right in terms of new logos and new products. And so there is value in growing the CRC and there is short-term and long-term value there. So we keep doing that.
And the last thing I'd say is we -- remember, I keep putting, but we bought only $30 million from inception to the new company public, we generated a lot more cash since then. We have efficiency that's one of the core parts of our culture. That's how we run the business, where we built it. And as for the model, we've built in terms of fiction-less expansion and other – some of our products.
So we trust that we have the levers and the way we hope to use them to make sure we have the right profitability as well.
Brent Thill -- Jefferies -- Analyst
And just a quick follow-up on the CRP. I know David, you mentioned, stay focus on that. It is continuing to decelerate, I guess, is that just a function of the large comps? Are you seeing larger enterprise customers? You've seen a slower cadence of large deals come in. Can you give us your take on that?
David Obstler -- Chief Financial Officer
Yeah, I think the comps are very significant in this quarter. In Q3 of last year, and I think we said this at the time, we had some large multiyear deals. As a reminder, we don't try to target multiyear deal we had from the client side. So that's why the current probably is more over time correlated.
It is also moves. So if you look at the average of this, it tends over the longer time to correlate with revenues, but there's a lot of noise in this number. So we steer everyone back to revenues and then the computation we've given everybody how to convert revenues into ARR.
Olivier Pomel -- Co-Founder and Chief Executive Officer
One big change again -- one big driver for this is -- our early customers we knew because they try to get ahead of the growth and secure better economics. And in times of uncertainty like this one, customers tend to wait and see more. And sometimes, we have slightly work economics a little bit, but there have been many optionality. And so this is why those numbers moved quite a bit.
And again, the best predictor of what's going to happen next year, the revenue ramp on which we are. Everything else is a little bit more historic.
Brent Thill -- Jefferies -- Analyst
Thank you.
Operator
Thank you. One moment for the next question. Our next question comes from Kamil with William Blair. Kamil, your line is open.
Kamil Mielczarek -- William Blair and Company -- Analyst
Thank you and congrats on a strong quarter. It sounds like international demand has remained relatively unchanged from June. Was that consistent across regions? And what do you think is unique about Datadog that is major sales in Europe, more resilient than some of your peers?
Olivier Pomel -- Co-Founder and Chief Executive Officer
I mean, look, we see them everywhere. We're growing our teams everywhere. We're going to see on the right relative basis faster in Europe and in APAC than we are in the US. We're also doing the teams in Latin America, which is doing very well for us.
So we -- from where we see, we see them in everywhere. We see Europe and Asia are a little bit behind the Americas in terms of maturity of the cloud migration. But they are scaling and it's happening there, the same way it happened in the past. From a competitive perspective, the situation is about the same everywhere, and it hasn't changed in any notable way over the past year, I would say.
So there's nothing shocked to say there.
Kamil Mielczarek -- William Blair and Company -- Analyst
That's helpful. And if I could just follow-up. You called out some vendor displays in your prepared remarks. Can you maybe comment on how much of your new customer wins are coming from competitive displacements versus greenfield opportunities? And between the two, are you seeing any difference in the macro impact that are companies that are using competitors, maybe revisiting alternative solutions to optimize pricing, or is the mix shift predictable?
Olivier Pomel -- Co-Founder and Chief Executive Officer
It's still a small minority of the deals. It tends to be the only one that are very large because our customers already had something. They already have a large footprint, and we need to migrate over. So these are deals that are large and the one, which is not a matter of the deal.
The last matter [Inaudible] are small and grow from there. These are the ones we tend to mention because these are the ones that are most interesting to look at from day one, but this is still a low minority, but we do. We also don't particularly seek those deals. We train our sales team to land as many new logos and new products as possible.
And it's better for them to do 10 smaller ones than one larger one. And those 10 smaller ones will each be as big as the one large one in the end. So that's instead of dollar we make for dollar sale activity we spend that's most productive.
Kamil Mielczarek -- William Blair and Company -- Analyst
That's helpful. Thanks again.
Operator
Thank you. One moment for the next question. Our next question comes from Fatima Boolani with Citi. Fatima, your line is now open.
Fatima Boolani -- Citi -- Analyst
Hey. Good morning. Thank you for taking my questions. Oli, I've got one for you and one for you, David.
Oli, to your commentary on the usage moderation persisting in the consumer discretionary vertical. I know this is a hard question, but what are some of the signs or signals from that vertical that would lead you to suggest or lead you to conclude that maybe there's more moderation to come. And I'm thinking about this in the context of big tech in the realm of digital advertising and all of the larger companies just beyond and outside of the CDP Vertical. So just any signals or signs that would lead you to conclude one way or the other is the worst of the moderation on the platform expansion is behind us? And then a quick follow-up for David, please.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, I think the question is -- I mean, it's mostly what we see the most case in the customers that are fully in the cloud, fully scaled in the cloud. And there, basically, we should expect their cloud bank to grow at the same rate of their top line in the end. And so when their top line part is slowing down a bit, or what is certainly slowing a bit -- they try and slow the expenses as well, which is what we've seen. I think what we can tell you is whether the top line will slowdown and start narrow a little bit or it's getting compressed, I think it all depends on how big of an economic downturn we face, if any.
We're not really the business of predicting that. But what we see is for much of those customers, we got a pretty good idea of where they stand because we see what their projected spend growth is when it relates to the relative growth of the business.
Fatima Boolani -- Citi -- Analyst
Thank you. David, last quarter, you sort of mentioned to us that a lot of customers and prospects are thinking about reduced commitment levels out the gate. So I'm curious about how that's trending this quarter and what your expectations are with what you're seeing with new customers in terms of commitment levels out the gate. And within this quarter, how much of that austerity, if you will, around commitment levels? How much of that austerity contributed to maybe usage upside beyond the commitment levels this quarter, just given the strength in the quarter? Thank you.
David Obstler -- Chief Financial Officer
Just to clarify, so that's not exactly correct what you said. So it is -- so essentially, most of our customers are essentially land and expand and then commit and then grow their usage over time. And that has been going on in the whole model of the company. What we said last time was -- this is not related to they're cutting their commitment.
This is related to when there are an overt on demand whether they decide to do a new commitment or stay on demand longer and to be able to get greater visibility. The comment from last quarter was really more about billing and those metrics then about customer usage. We said that customer usage has been lower than historical trends, but not as low as it was in COVID. So that's another effect.
And what we talked about last quarter was more about the billing effect. So we continue to say that customers are, as we talked about, cautious, but that really only has a marginal effect in the billing. And actually, when a client decides that and stays on demand, it has a positive effect on the revenue side in that micro decision.
Olivier Pomel -- Co-Founder and Chief Executive Officer
And I'll just add one thing to your first question. Some part of the question is how do we know things are going to get better or worse in the future? I remind you that we have a usage technology for revenue, and we don't have to wait until the mix renewal to give the new some customers on whether this is better or worse. But the news is good or bad, we get it early. And an example of that is that while the -- broadly in the world, we see Q3 being worse at a macro level than Q2.
As far as our business is concerned, Q3 is very, very much in line with Q2 and whatever step function there was in terms of changing the growth rates, so some customers happened in Q2 already and didn't change in Q3. So we are fairly confident that whatever happens with CPC this year.
Operator
Thank you. One moment for our next question. Our next question comes from Ittai Kidron with Oppenheimer and Co. Ittai, your line is open.
Ittai Kidron -- Oppenheimer and Company -- Analyst
Thank you. Congrats guys, great quarter. David, I just want to have one question for you on the net dollar expansion rate, great to see it well above 130. But I was hoping if you could give a little bit more color on that, specifically directionally, did it go down quarter over quarter? And perhaps, is there a way for you to break down the mix of existing solution expansion in that mix versus new solution adoption.
I'm just wondering maybe not in absolute terms, but perhaps on a relative basis how that mix has changed over the last two, three quarters?
David Obstler -- Chief Financial Officer
Sure. So we don't give more pointed net retention, but it is a fact that if the organic rate -- expanding rate of customers is lower than it was in previous periods, and we said that the rate is lower than it was at the peak but not as low as it was at the low and COVID in the middle that, that would indicate that net retention would be going down mathematically. But we don't give more information than that. As far as the -- and I think we said a little bit about this in the past, as far as the mix between expansion of existing solutions and new as clients adopt more of the solution in their land, which we said is happening.
What happens again, mathematically is that the percentage of the net retention from existing products goes up despite the fact that, as we said, we have very strong adoption of additional products. But we also have very strong momentum in client landing with more products, which affects that number directionally, if that makes sense.
Ittai Kidron -- Oppenheimer and Company -- Analyst
That's helpful. And then maybe, Oli, for you, on the database monitoring. It seems like you're off for a good start there. Just from a persona standpoint, does this expand the personas that you're touching, I mean, do you need to be engaged more with this admins in order to sell this product or I'm just trying to think from a go-to-market standpoint, what is needed to keep driving progress here?
Olivier Pomel -- Co-Founder and Chief Executive Officer
In terms of from a go-to-market perspective, it was similarly as the rest of what we deliver, it expands nicely on top of the rest of the platform. You're right though that we're reaching to some of the more specialized function around like DDAs and people like that. But we also have -- who are not trained as DDAs, solve the issues and role as DDA security there. So we run it, there's a little bit of a difference there.
I think today, because of the better business we just reported today, it's not as pronounced as it might be in the future when we start supporting that this is like [Inaudible], for example, where the position of the DDA is more formalized, I would say.
Ittai Kidron -- Oppenheimer and Company -- Analyst
Very good. Thanks.
Operator
Thank you. Our final question will come from the line of Michael Turits with KeyBanc. Michael, your line is live.
Michael Turits -- KeyBanc Capital Markets -- Analyst
Hey, so two quick questions. I think you talked about the growth rates of a number of hosts monitored last quarter is an indication that you really weren't seeing any slowing in the underlying capacity of what needed to be monitoring. Is that growth rate still the same?
Olivier Pomel -- Co-Founder and Chief Executive Officer
It's -- if you look at the growth by product this time, it's not only closer than it needs to be, there's some variations quarter-to-quarter, a lot is about the same in growth rate. APM is a little bit better and I'm not sure if it's down, but there's nothing really meaningful there. I think some of the effects you might expect from what you have from the hyperscale, we see maybe some of that in the infrastructure, but it's not extremely pronounced. So that's why we can't comment on this.
Michael Turits -- KeyBanc Capital Markets -- Analyst
OK. And then David, just on the capex that you called out that was having to do with headquarters, $15 million extra, I believe you said in this quarter. So I know you're not giving guidance for next year, but is that a one-quarter phenomenon, a multiquarter phenomenon, how big an impact longer term on capex?
David Obstler -- Chief Financial Officer
Yeah. Just clarify that wasn't extra. That's just the total amount, not the delta between the quarters. We haven't provided that type of guidance.
We are expanding and building out offices. And again, when we provide guidance for next year, we'll endeavor to provide some guidance that will help in the modeling. Thanks.
Michael Turits -- KeyBanc Capital Markets -- Analyst
OK. Great. Thank you very much.
Operator
Thank you. At this time, I would like to turn it back to Olivier Pomel for any further comments.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thank you. Thank you all for listening. I also want to thank, obviously, all Datadogs around the world for working so hard this quarter and that we have been another great quarter. And I want to thank our customers for trusting us with their business and joining us at Dash also for the great event.
So thank you all, and we'll speak again in Q4.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Yuka Broderick -- Head of Investor Relations
Olivier Pomel -- Co-Founder and Chief Executive Officer
David Obstler -- Chief Financial Officer
Raimo Lenschow -- Barclays -- Analyst
Fred Lee -- Credit Suisse -- Analyst
Mark Murphy -- JPMorgan Chase and Company -- Analyst
Sanjit Singh -- Morgan Stanley -- Analyst
Koji Ikeda -- Bank of America Merrill Lynch -- Analyst
Matt Hedberg -- RBC Capital Markets -- Analyst
Brent Thill -- Jefferies -- Analyst
Kamil Mielczarek -- William Blair and Company -- Analyst
Fatima Boolani -- Citi -- Analyst
Ittai Kidron -- Oppenheimer and Company -- Analyst
Michael Turits -- KeyBanc Capital Markets -- Analyst
More DDOG analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG) Q3 2022 Earnings Call Nov 03, 2022, 8:00 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Head of Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Raimo Lenschow -- Barclays -- Analyst Fred Lee -- Credit Suisse -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Fatima Boolani -- Citi -- Analyst Ittai Kidron -- Oppenheimer and Company -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. At a high level, Q3 was overall very similar to Q2 with strong performance in new logos and new product attach activities tempered by growth of user from existing customers that further healthy was below our long-term historical average.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Head of Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Raimo Lenschow -- Barclays -- Analyst Fred Lee -- Credit Suisse -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Fatima Boolani -- Citi -- Analyst Ittai Kidron -- Oppenheimer and Company -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2022 Earnings Call Nov 03, 2022, 8:00 a.m. During this call, we will make forward-looking statements, including statements related to our future financial performance, our outlook for the fourth quarter and the fiscal year 2022, our gross margins and operating margins, our strategies, our product capabilities, and our ability to capitalize on market opportunities.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Head of Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Raimo Lenschow -- Barclays -- Analyst Fred Lee -- Credit Suisse -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Fatima Boolani -- Citi -- Analyst Ittai Kidron -- Oppenheimer and Company -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2022 Earnings Call Nov 03, 2022, 8:00 a.m. Finally, our platform strategy continues to resonate with customers with 80% of our customers using two or more products, 40% using four or more products and 16% using six or more products as of the end of Q3.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Yuka Broderick -- Head of Investor Relations Olivier Pomel -- Co-Founder and Chief Executive Officer David Obstler -- Chief Financial Officer Raimo Lenschow -- Barclays -- Analyst Fred Lee -- Credit Suisse -- Analyst Mark Murphy -- JPMorgan Chase and Company -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Koji Ikeda -- Bank of America Merrill Lynch -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Fatima Boolani -- Citi -- Analyst Ittai Kidron -- Oppenheimer and Company -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q3 2022 Earnings Call Nov 03, 2022, 8:00 a.m. 40% of customers were using four or more products, up from 31% a year-ago and 16% of our customers were using six or more products, up from 8% a year ago.
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718481.0
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2022-11-03 00:00:00 UTC
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Datadog (DDOG) Q3 Earnings and Revenues Surpass Estimates
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q3-earnings-and-revenues-surpass-estimates
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Datadog (DDOG) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 53.33%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.14 per share when it actually produced earnings of $0.24, delivering a surprise of 71.43%.
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 $436.53 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 5.92%. This compares to year-ago revenues of $270.49 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Datadog shares have lost about 58.2% since the beginning of the year versus the S&P 500's decline of -21.1%.
What's Next for Datadog?
While Datadog has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Datadog: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $440.84 million in revenues for the coming quarter and $0.78 on $1.62 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 31% 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.
One other stock from the same industry, Everbridge (EVBG), is yet to report results for the quarter ended September 2022. The results are expected to be released on November 8.
This software developer is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +240%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Everbridge's revenues are expected to be $110.69 million, up 14.4% from the year-ago quarter.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. Datadog, Inc. (DDOG): Free Stock Analysis Report 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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Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog (DDOG) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $436.53 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 5.92%.
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Datadog (DDOG) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $436.53 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 5.92%.
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Datadog (DDOG) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.15 per share. Datadog, Inc. (DDOG): Free Stock Analysis Report The company has topped consensus revenue estimates four times over the last four quarters.
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fa205a6f-444f-48b6-9c7a-036da8f58e5e
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718482.0
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2022-11-02 00:00:00 UTC
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Why Tech Stocks Datadog, MongoDB, and HubSpot Are Falling Today
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DDOG
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https://www.nasdaq.com/articles/why-tech-stocks-datadog-mongodb-and-hubspot-are-falling-today
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What happened
The share prices of Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) were tumbling this morning, likely as investors processed the news of better-than-expected jobs data and anticipated another aggressive interest rate hike from the Federal Reserve.
A strong job market could be worrying tech investors because it could encourage the Fed to continue making large interest rate hikes. HubSpot and Datadog investors may also be exiting their positions, as the two companies are set to report their third-quarter results shortly.
Datadog was down by 6.8%, HubSpot fell by 6.4%, and MongoDB dropped by 7.6% as of 11:56 a.m. ET.
Image source: Getty Images.
So what
The latest ADP payroll data showed that companies added 239,000 jobs in October, more than economists' estimate of 195,000. Wages also increased by 7.7%, which was only slightly down from the previous month.
Investors are keeping a close eye on jobs data because a strong labor market, along with increasing wages, likely means that the Federal Reserve still has its work cut out for it as it tries to tame inflation.
Tech investors may be worried this morning that if jobs are increasing and wages are climbing, the Fed may be more likely to keep up an aggressive pace of interest rate hikes. The Fed is already expected to increase the federal funds rate today by an additional 75 basis points, but what's still unclear is how large subsequent interest rate increases will be. The next Fed meeting, after the conclusion of today's meeting, will be in December.
Higher interest rates make borrowing more expensive for companies, which could make it harder for growth stocks like MongoDB, Datadog, and HubSpot to keep growing quickly. Additionally, tech investors are worried more interest rate hikes could tip the U.S. economy into a full-blown recession.
Now what
All of this news is coming at an especially bad time for HubSpot and Datadog, as the two companies are set to report their third-quarter results today and tomorrow. HubSpot will report after the closing bell today, and Datadog will release its results before the opening bell tomorrow.
Additionally, Macquarie analyst Sarah Hindlian initiated coverage of HubSpot today with an outperform rating and also initiated coverage of Datadog with a neutral rating, which could be impacting the companies' share prices as well.
Tech investors may want to prepare for some more share price volatility in the short term. Not only will the quarterly results from Datadog and HubSpot likely affect those companies' share prices over the next few days, but the latest Bureau of Labor Statistics job data will also be released in the next two days.
That jobs data could have an impact on the Fed's ultimate decision on how it chooses to handle interest rate increases in the coming months.
But investors should remember that no matter what these tech stocks do in the short term, it doesn't mean that these companies won't still be great long-term investments. Nearly every sector is experiencing tremendous volatility right now, but buying shares of great companies and holding them for five years or more is still a fantastic way to benefit from the market.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, HubSpot, and MongoDB. The Motley Fool recommends Macquarie Group 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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What happened The share prices of Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) were tumbling this morning, likely as investors processed the news of better-than-expected jobs data and anticipated another aggressive interest rate hike from the Federal Reserve. A strong job market could be worrying tech investors because it could encourage the Fed to continue making large interest rate hikes. Investors are keeping a close eye on jobs data because a strong labor market, along with increasing wages, likely means that the Federal Reserve still has its work cut out for it as it tries to tame inflation.
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What happened The share prices of Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) were tumbling this morning, likely as investors processed the news of better-than-expected jobs data and anticipated another aggressive interest rate hike from the Federal Reserve. Additionally, tech investors are worried more interest rate hikes could tip the U.S. economy into a full-blown recession. Additionally, Macquarie analyst Sarah Hindlian initiated coverage of HubSpot today with an outperform rating and also initiated coverage of Datadog with a neutral rating, which could be impacting the companies' share prices as well.
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What happened The share prices of Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) were tumbling this morning, likely as investors processed the news of better-than-expected jobs data and anticipated another aggressive interest rate hike from the Federal Reserve. Higher interest rates make borrowing more expensive for companies, which could make it harder for growth stocks like MongoDB, Datadog, and HubSpot to keep growing quickly. Additionally, Macquarie analyst Sarah Hindlian initiated coverage of HubSpot today with an outperform rating and also initiated coverage of Datadog with a neutral rating, which could be impacting the companies' share prices as well.
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What happened The share prices of Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) were tumbling this morning, likely as investors processed the news of better-than-expected jobs data and anticipated another aggressive interest rate hike from the Federal Reserve. The Fed is already expected to increase the federal funds rate today by an additional 75 basis points, but what's still unclear is how large subsequent interest rate increases will be. Not only will the quarterly results from Datadog and HubSpot likely affect those companies' share prices over the next few days, but the latest Bureau of Labor Statistics job data will also be released in the next two days.
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6153c18e-cb30-4f37-a910-b91a3889b69e
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718483.0
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2022-11-02 00:00:00 UTC
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2 Stocks Wall Street Thinks Could Deliver 50% or More Upside
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DDOG
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https://www.nasdaq.com/articles/2-stocks-wall-street-thinks-could-deliver-50-or-more-upside
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nan
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While market sell-offs can be brutal, they also open up opportunities to purchase some stocks that were previously trading near uninvestable levels. According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG).
On average, analysts see 57% upside for Cloudflare and 56% for Datadog. That's quite a turnaround in one year, but is it realistic?
The businesses
First, it's helpful to understand what these two do. Both are rapidly growing tech companies whose valuations reached unsustainable levels in 2021, contributing to their significant decline. To be clear, the businesses are both performing admirably; it was the exuberance of 2021 that caused their terrible stock performance.
Cloudflare's product allows its clients to host websites on its servers, eliminating the need to purchase expensive networking equipment that can quickly become obsolete. Cloudflare's 275-plus data centers in cities worldwide also place the information closer to website users, making the website load incredibly fast. With more than 151,000 paying customers, Cloudflare has a large base of customers that are expanding their use quarterly.
As businesses deploy more cloud solutions, it's becoming harder for IT teams to monitor how all their software solutions function. Datadog's platform solves this issue through its cloud monitoring service, allowing users to see how data flows function and to solve problems quickly when they arise. Datadog's product is more niche than Cloudflare's, but it still has about 21,200 paying customers.
Although many businesses are tightening their budgets to prepare for an economic downturn, both companies posted solid revenue growth in the second quarter:
COMPANY YOY REVENUE GROWTH
Cloudflare 54%
Datadog 74%
Data source: Cloudflare and Datadog. YOY: year-over-year.
These aren't small revenue streams, either; Cloudflare's and Datadog's second-quarter sales were $235 million and $406 million, respectively.
However, no matter how fast a business grows, there is always a reasonable price to pay for it. From a price-to-sales (P/S) standpoint, both companies were too expensive last year.
Data source: YCharts.
Even now, many would contend that 20 times sales is also too expensive. But the bigger picture for these companies is their prospects and growth, making the valuation more palatable.
The road ahead is bright
Both Cloudflare and Datadog operate in massive markets. Datadog believes its market could be $53 billion by 2025, and Cloudflare sees its total addressable market at $135 billion by 2024. While it's impossible for one company to capture an entire market completely, these two have a long way to go before they saturate their market opportunity.
And both companies are teetering on the brink of profitability. In the second quarter, Datadog had a mere $3.1 million in operating losses, and Cloudflare is projecting an operating profit for its full-year 2022. Unlike some tech companies that are laying off part of their workforce even to get remotely close to breaking even, these two are on the brink.
These two factors are significant reasons both stocks still command a premium price. Wall Street also expects these stocks to maintain their valuation; analysts forecast Cloudflare and Datadog to grow their revenues by 36% and 38%, respectively, in 2023. And there is likely further upside beyond that point.
I think both stocks are strong buys because of their massive opportunities, but investors must be committed to holding the stocks for at least three to five years. This will allow investors to wait out market downturns like the one we are in right now. For Datadog and Cloudflare, the best days are still ahead, and investors should take positions accordingly.
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Keithen Drury has positions in Cloudflare, Inc. and Datadog. The Motley Fool has positions in and recommends Cloudflare, Inc. 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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According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare's product allows its clients to host websites on its servers, eliminating the need to purchase expensive networking equipment that can quickly become obsolete. Although many businesses are tightening their budgets to prepare for an economic downturn, both companies posted solid revenue growth in the second quarter:
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According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare 54% Datadog 74% Data source: Cloudflare and Datadog. These aren't small revenue streams, either; Cloudflare's and Datadog's second-quarter sales were $235 million and $406 million, respectively.
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According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare 54% Datadog 74% Data source: Cloudflare and Datadog. Wall Street also expects these stocks to maintain their valuation; analysts forecast Cloudflare and Datadog to grow their revenues by 36% and 38%, respectively, in 2023.
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According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG). Cloudflare 54% Datadog 74% Data source: Cloudflare and Datadog. I think both stocks are strong buys because of their massive opportunities, but investors must be committed to holding the stocks for at least three to five years.
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b3967fa9-bbe7-40be-af50-ceb68359cc50
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718484.0
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2022-11-02 00:00:00 UTC
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3 Software Stocks To Watch In November 2022
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DDOG
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https://www.nasdaq.com/articles/3-software-stocks-to-watch-in-november-2022
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Software stocks are a type of technology stock that refers to shares in companies that develop, market, and sell software products. What’s more, software stocks have been some of the best-performing investments in recent years, as the global software industry has grown at an unprecedented rate. The demand for software products is only expected to increase in the future, making software stocks a good long-term investment.
However, it is important to remember that the software sector is notoriously volatile, and stock prices can fluctuate rapidly. As with any investment, it is important to do your research before investing in software stocks. With this in mind, let’s look at three top software stocks to watch in the stock market now.
Software Stocks To Invest In [Or Avoid] Now
Salesforce Inc. (NYSE: CRM)
Adobe Inc. (NASDAQ: ADBE)
Datadog Inc. (NASDAQ: DDOG)
1. Salesforce (CRM Stock)
Starting off, Salesforce Inc. (CRM) is a cloud computing company. Salesforce provides customer relationship management (CRM) software to businesses of all sizes. In addition to CRM, Salesforce also offers a suite of enterprise applications including Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Analytics Cloud, and more.
CRM Recent Stock News
Just last month, Salesforce announced that it has been listed in the “Leaders” quadrant of the 2022 Gartner® Magic Quadrant™ for B2B Marketing Automation Platforms report.
Additionally, Eric Zenz, Senior VP of Product Management for Marketing Applications at Salesforce commented, “In today’s digital-first world, providing customers with real-time intelligent customer experiences and seamless journeys at every touchpoint is paramount for businesses. Salesforce Marketing Cloud Account Engagement allows companies to build lasting relationships with customers through scaled, personalized outreach, across marketing, sales, and service.“
CRM Stock Chart
As of Wednesday’s closing bell, shares of Salesforce stock closed the trading day down by 6.14% at $150.01 a share.
Source: TD Ameritrade TOS
[Read More] Meme Stocks To Buy Now? 4 To Watch
2. Adobe (ADBE Stock)
Moving on, let’s take a look at Adobe Inc. (ADBE). In brief, Adobe is a software company that is best known for its Adobe Creative Suite of products, which includes Photoshop, Illustrator, and InDesign.
ADBE Recent Stock News
Just last month, Adobe reported that it will collaborate with U.S. Bank (NYSE: USB) to assist in enhancing personalization in terms of its digital and retail customer experiences. Moreover, U.S. Bank will accomplish this by using Adobe’s Experience Platform. Specifically, ADBE’s Experience Platform helps deliver relevant and engaging user experiences online and offline.
Furthermore, Anjul Bhambhri, senior vice president at Adobe Experience Cloud, stated, “U.S. Bank is a leader in the financial services sector, setting an example as brands prioritize making the digital economy more personal. With Adobe Experience Platform, marketers at U.S. Bank can rally around a single view of the customer, driving an always-on personalization strategy that can evolve with consumer expectations and be in full compliance with strict industry rules and regulations.”
ADBE Stock Chart
Meanwhile, to close out Wednesday’s trading session, shares of Adobe stock closed down by 4.68% at $301.22 per share.
Source: TD Ameritrade TOS
[Read More] 2 Hydrogen Stocks For Your November 2022 Watchlist
3. Datadog (DDOG Stock)
Finishing up, let’s move our attention to Datadog Inc. (DDOG). For starters, Datadog is a U.S.-based technology company that specializes in monitoring and analytics for cloud-based applications. In detail, Datadog is a monitoring service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform.
DDOG Recent Stock News
Meanwhile, the company is set to report its third-quarter 2022 financial results Thursday, November 3, 2022, before the stock market opens. To recap, let’s take a look at how Datadog performed in the second quarter of 2022.
In detail, DDOG posted Q2 2022 earnings of $0.22 per share, along with revenue of $406.1 million. Meanwhile, in the release, the company said it expects third-quarter non-GAAP earnings of $0.15 to $0.17 per share and revenue of $410.0 million to $414.0 million.
DDOG Stock Chart
Aside from that, as of Wednesday’s closing bell shares of DDOG stock closed down by 7.82% at 74.48 per share.
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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Software Stocks To Invest In [Or Avoid] Now Salesforce Inc. (NYSE: CRM) Adobe Inc. (NASDAQ: ADBE) Datadog Inc. (NASDAQ: DDOG) 1. Datadog (DDOG Stock) Finishing up, let’s move our attention to Datadog Inc. (DDOG). DDOG Recent Stock News Meanwhile, the company is set to report its third-quarter 2022 financial results Thursday, November 3, 2022, before the stock market opens.
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Software Stocks To Invest In [Or Avoid] Now Salesforce Inc. (NYSE: CRM) Adobe Inc. (NASDAQ: ADBE) Datadog Inc. (NASDAQ: DDOG) 1. Datadog (DDOG Stock) Finishing up, let’s move our attention to Datadog Inc. (DDOG). DDOG Recent Stock News Meanwhile, the company is set to report its third-quarter 2022 financial results Thursday, November 3, 2022, before the stock market opens.
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Software Stocks To Invest In [Or Avoid] Now Salesforce Inc. (NYSE: CRM) Adobe Inc. (NASDAQ: ADBE) Datadog Inc. (NASDAQ: DDOG) 1. Datadog (DDOG Stock) Finishing up, let’s move our attention to Datadog Inc. (DDOG). DDOG Recent Stock News Meanwhile, the company is set to report its third-quarter 2022 financial results Thursday, November 3, 2022, before the stock market opens.
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Software Stocks To Invest In [Or Avoid] Now Salesforce Inc. (NYSE: CRM) Adobe Inc. (NASDAQ: ADBE) Datadog Inc. (NASDAQ: DDOG) 1. Datadog (DDOG Stock) Finishing up, let’s move our attention to Datadog Inc. (DDOG). DDOG Recent Stock News Meanwhile, the company is set to report its third-quarter 2022 financial results Thursday, November 3, 2022, before the stock market opens.
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e9bff147-942d-4ee1-88a0-74474693a764
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718485.0
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2022-11-01 00:00:00 UTC
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New Relic (NEWR) Expected to Beat Earnings Estimates: What to Know Ahead of Q2 Release
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DDOG
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https://www.nasdaq.com/articles/new-relic-newr-expected-to-beat-earnings-estimates%3A-what-to-know-ahead-of-q2-release
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Wall Street expects a year-over-year increase in earnings on higher revenues when New Relic (NEWR) reports results for the quarter ended September 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on November 8, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This cloud-based software analytics company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +40%.
Revenues are expected to be $222.6 million, up 13.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for New Relic?
For New Relic, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that New Relic will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that New Relic would post a loss of $0.36 per share when it actually produced a loss of $0.26, delivering a surprise of +27.78%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
New Relic appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Datadog (DDOG), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.16 for the quarter ended September 2022. This estimate points to a year-over-year change of +23.1%. Revenues for the quarter are expected to be $412.16 million, up 52.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Datadog has been revised 1% down to the current level. Nevertheless, the company now has an Earnings ESP of -3.23%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Datadog will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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New Relic, Inc. (NEWR): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Expected Results of an Industry Player Datadog (DDOG), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.16 for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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Expected Results of an Industry Player Datadog (DDOG), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.16 for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Expected Results of an Industry Player Datadog (DDOG), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.16 for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Expected Results of an Industry Player Datadog (DDOG), another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $0.16 for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report The earnings report, which is expected to be released on November 8, 2022, might help the stock move higher if these key numbers are better than expectations.
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d339c321-96a2-4c19-b77c-99ce70f88f2d
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718486.0
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2022-10-31 00:00:00 UTC
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Datadog (DDOG) to Report Q3 Earnings: What's in the Cards?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-to-report-q3-earnings%3A-whats-in-the-cards
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Datadog DDOG is set to release its third-quarter 2022 results on Nov 3.
For the quarter, the company expects non-GAAP earnings in the range of 15-17 cents per share. The Zacks Consensus Estimate for earnings has remained unchanged at 16 cents per share over the past 30 days, indicating growth of 23.08% from the year-ago period.
The company projects third-quarter revenues to be between $410 million and $414 million. The consensus mark for the top line is currently pegged at $412.61 million, suggesting 52.54% growth from the year-ago period.
Markedly, Datadog’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 97.03%.
Let’s see how things have shaped up prior to this announcement.
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, greater brand awareness and increased adoption of its platform and products are likely to have expanded its customer base in the to-be-reported quarter.
Notably, the company ended second-quarter 2022 with 2420 customers with an ARR of more than $100K, up 54% year over year. Also, the firm’s dollar-based net retention rate remained more than 130% for the 20th consecutive quarter.
During the to-be-reported quarter, Datadog achieved Amazon Web Services (“AWS”) Security, Networking and Retail competencies that reaffirm Datadog’s commitment to AWS and its position as a global partner across multiple industries and use cases.
Besides this, Datadog also expanded monitoring for Microsoft SQL Server and Microsoft Azure database platforms, which have allowed engineers and database administrators to quickly pinpoint and address database performance issues, such as costly and slow queries, incorrect indexes in SQL Server or Azure databases and bottlenecks in their applications.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Key Developments
On Aug 4, Datadog acquired Seekret, a highly innovative API observability company. The addition of Seekret’s capabilities is expected to have extended Datadog’s unified platform to deliver deeper API observability, governance and automation across the entire API lifecycle.
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 a few companies worth considering, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
ZoomInfo Technologies ZI has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. ZI’s shares have lost 29.6% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 5.3%.
Tencent Music Entertainment Group TME has an Earnings ESP of +4.76% and a Zacks Rank #2. TME shares have lost 46.5% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.6%.
Upstart UPST has an Earnings ESP of +114.71% and a Zacks Rank #3. UPST shares have lost 84.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 31%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tencent Music Entertainment Group Sponsored ADR (TME): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
ZoomInfo Technologies Inc. (ZI): Free Stock Analysis Report
Upstart Holdings, Inc. (UPST): 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 third-quarter 2022 results on Nov 3. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Consensus Estimate for earnings has remained unchanged at 16 cents per share over the past 30 days, indicating growth of 23.08% from the year-ago period.
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Datadog DDOG is set to release its third-quarter 2022 results on Nov 3. Datadog, Inc. (DDOG): Free Stock Analysis Report Besides this, Datadog also expanded monitoring for Microsoft SQL Server and Microsoft Azure database platforms, which have allowed engineers and database administrators to quickly pinpoint and address database performance issues, such as costly and slow queries, incorrect indexes in SQL Server or Azure databases and bottlenecks in their applications.
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Datadog DDOG is set to release its third-quarter 2022 results on Nov 3. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, Inc. Price and EPS Surprise Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote Key Developments On Aug 4, Datadog acquired Seekret, a highly innovative API observability company.
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Datadog DDOG is set to release its third-quarter 2022 results on Nov 3. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Consensus Estimate for earnings has remained unchanged at 16 cents per share over the past 30 days, indicating growth of 23.08% from the year-ago period.
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718487.0
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2022-10-30 00:00:00 UTC
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2 Growth Stocks That Could Gain 125% and 164% From Their 52-Week Lows, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-growth-stocks-that-could-gain-125-and-164-from-their-52-week-lows-according-to-wall
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Investor sentiment has deteriorated throughout the year, as persistent inflation and rapidly rising interest rates have called the economy's strength into question. During that time, Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG) have seen their share prices slip 84% and 58%, respectively. Both stocks currently sit near a 52-week low.
Some Wall Street analysts see that as a buying opportunity. For instance, Jason Bazinet of Citigroup has a price target of $125 per share on Roku, implying 164% upside from its 52-week low of $47.27. And Fatima Boolani of Citigroup has a price target of $170 per share on Datadog, which implies 125% upside from its 52-week low of $75.53.
Investors should never put too much faith in near-term price targets, but they can be useful for spotting overlooked opportunities. In this case, the market is consumed by economic uncertainty, so much so that many investors fail to see the long-term potential Roku and Datadog possess.
Here's why both stocks are worth buying today.
1. Roku: The top streaming platform
It's no surprise that the economic downturn was hard on Roku. The business is built around digital advertising, and many brands cut their ad budgets to compensate for weakening consumer demand brought on by persistent inflation. That domino effect led Roku to deliver some disappointing financial results. Over the past year, revenue rose just 31% to $3 billion -- a big deceleration from 72% growth in the prior year -- and cash from operations plunged 66% to $73 million.
However, the long-term investment thesis is unchanged. In the U.S. alone, connected TV (CTV) ad spend is expected to grow at 20% annually to reach $39 billion by 2026, according to eMarketer, and analysts at BMO Capital Markets say that figure could hit $100 billion by 2030. That puts Roku in front of a big addressable market, and it's well-positioned to cash in on that opportunity.
Roku was a pioneer in the streaming industry. It brought the first streaming player to market in 2008, featuring the only operating system (Roku OS) designed specifically for TV. In fact, Roku OS is still the only operating system purpose-built for TV. Other streaming platforms rely on modified mobile operating systems, but that approach often creates problems for viewers.
Purpose-built software tends to be more user-friendly. For instance, Roku suffered fewer video start failures than any other streaming platform in the second quarter. It also tied for lowest buffering rate and ranked second in video start time.
As a result, the Roku brand carries weight with consumers. Its hardware products (streaming players, audio devices, smart TVs) have earned a reputation for quality and reliability, and that advantage has carried Roku to the top of the industry.
In fact, Roku accounted for 23.1% of global streaming devices in the second quarter, and it powered 30.5% of global streaming time. In both categories, Roku has nearly twice as much market share as the next closest competitor. That makes Roku a valuable partner to content publishers and advertisers.
The company also took steps to further differentiate its platform. The Roku Channel is an ad-supported service that features free movies, TV episodes, and live channels, and it has the makings of a powerful growth driver. As Roku engages more viewers and earns more advertising revenue, its ability to license and produce quality content for The Roku Channel improves, creating a virtuous cycle.
In fact, Roku saw signs of success with that endeavor. In the second quarter, The Roku Channel once again ranked among the top five channels on the platform in the U.S., due in part to Roku's growing library of original content.
On that note, Roku should benefit greatly as brands allocate more ad dollars to CTV in the coming years. And with shares trading at 2.4 times sales -- a bargain compared to the three-year average of 14.4 times sales -- this growth stock is worth buying today.
That said, Roku is best viewed as a long-term investment. There is no guarantee the stock will deliver triple-digit returns in the next year.
2. Datadog: A leader in monitoring software
Datadog is a monitoring and security software company. Its robust product suite provides real-time observability across applications, networks, and infrastructure, allowing customers to ensure the performance and security of their IT ecosystems.
The Datadog platform also incorporates a powerful artificial intelligence (AI) engine known as Watchdog. That engine can help customers prevent problems by surfacing proactive insights, and it can reduce time to resolution through automated alerts and root cause analysis.
Additionally, Datadog offers more than 500 out-of-the-box integrations to simplify adoption and accelerate time to value for customers. Its platform is designed to be cloud agnostic, meaning it can be deployed across enterprise data centers, private clouds, and public clouds. Those qualities powered rapid adoption.
Datadog increased its customer base by 29% over the past year, and the average customer spent over 30% more. That compounding effect naturally led to remarkable financial results. Revenue soared 79% to $1.4 billion. The company generated $354 million in free cash flow (FCF), attaining an impressive FCF margin of nearly 26%.
Investors have good reason to believe Datadog can maintain that momentum. Management puts its addressable market at $53 billion in 2025, and the company already enjoys a strong market position across several monitoring software verticals.
For instance, research company Gartner recently ranked Datadog as a leader in application performance monitoring, and G2 Grid recently recognized Datadog as a leader in cloud infrastructure monitoring and log monitoring. Those accolades hint at a bright future for the company, and its monitoring software will only become more critical as businesses continue to invest in digital transformation projects.
Currently, shares trade at 19.2 times sales, an absolute bargain compared to the three-year average of 38.6 times sales. That's why this growth stock is worth buying right now, though investors should look at Datadog as a long-term investment. Triple-digit returns in the next year may be too optimistic.
10 stocks we like better than Roku
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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 September 30, 2022
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Trevor Jennewine has positions in Roku. The Motley Fool has positions in and recommends Datadog and Roku. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During that time, Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG) have seen their share prices slip 84% and 58%, respectively. Investor sentiment has deteriorated throughout the year, as persistent inflation and rapidly rising interest rates have called the economy's strength into question. The business is built around digital advertising, and many brands cut their ad budgets to compensate for weakening consumer demand brought on by persistent inflation.
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During that time, Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG) have seen their share prices slip 84% and 58%, respectively. It brought the first streaming player to market in 2008, featuring the only operating system (Roku OS) designed specifically for TV. And with shares trading at 2.4 times sales -- a bargain compared to the three-year average of 14.4 times sales -- this growth stock is worth buying today.
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During that time, Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG) have seen their share prices slip 84% and 58%, respectively. Roku: The top streaming platform It's no surprise that the economic downturn was hard on Roku. In the second quarter, The Roku Channel once again ranked among the top five channels on the platform in the U.S., due in part to Roku's growing library of original content.
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During that time, Roku (NASDAQ: ROKU) and Datadog (NASDAQ: DDOG) have seen their share prices slip 84% and 58%, respectively. Management puts its addressable market at $53 billion in 2025, and the company already enjoys a strong market position across several monitoring software verticals. That's why this growth stock is worth buying right now, though investors should look at Datadog as a long-term investment.
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40477422-4a9c-4cbd-a99a-ef1d34352ebd
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718488.0
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2022-10-28 00:00:00 UTC
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Nasdaq 100 Movers: AMZN, DXCM
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-amzn-dxcm
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nan
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nan
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In early trading on Friday, shares of DexCom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. Year to date, DexCom has lost about 13.5% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Amazon.com, trading down 10.3%. Amazon.com is lower by about 40.3% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 5.8%, and Intel, trading up 9.0% on the day.
VIDEO: Nasdaq 100 Movers: AMZN, DXCM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of DexCom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. And the worst performing Nasdaq 100 component thus far on the day is Amazon.com, trading down 10.3%. VIDEO: Nasdaq 100 Movers: AMZN, DXCM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of DexCom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. Year to date, DexCom has lost about 13.5% of its value. And the worst performing Nasdaq 100 component thus far on the day is Amazon.com, trading down 10.3%.
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In early trading on Friday, shares of DexCom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. And the worst performing Nasdaq 100 component thus far on the day is Amazon.com, trading down 10.3%. Two other components making moves today are Datadog, trading down 5.8%, and Intel, trading up 9.0% on the day.
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In early trading on Friday, shares of DexCom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 14.7%. Year to date, DexCom has lost about 13.5% of its value. And the worst performing Nasdaq 100 component thus far on the day is Amazon.com, trading down 10.3%.
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85ac5802-2c49-460a-81d2-bb4d8b04df8e
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718489.0
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2022-10-28 00:00:00 UTC
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This Innovation Machine Is Set to Win in the Long Run
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DDOG
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https://www.nasdaq.com/articles/this-innovation-machine-is-set-to-win-in-the-long-run
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nan
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nan
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Predictions of an economic slowdown by many pundits, especially in the backdrop of the stock market's plunge in 2022, are rattling many investors. The news cycle can be overwhelming, but smart investors patiently navigate the noise and focus on investing in high-quality businesses and long-term returns.
Like those smart investors, smart businesses are not getting bogged down by macro factors beyond their control and are focusing on meaningful innovation and relentless execution. One company that shines on both of those fronts is Datadog (NASDAQ: DDOG). Here is why Datadog should be a top consideration for investors looking to add a growth stock to their portfolio.
Innovation is in Datadog's DNA
The reliability of technological infrastructure is of top importance for businesses in today's digital world. Whether it is the London Stock Exchange trying to make sure that its customers' online stock trades are executed in a timely manner or Airbnb ensuring its platform doesn't experience any downtime, Datadog is there to help. While Datadog cannot resolve all technology issues by itself, it is good at proactively identifying potential problems and giving key insights to the right people so that those dreaded system outages can be avoided and the annoying app slowdowns can be prevented.
Image source: Getty Images.
Datadog's pace of product innovation is at the heart of its success, and the company reinforced that discipline with announcements of multiple new products at its Dash investor conference a few days ago. Below are four key products that were released for general availability:
Cloud Security Management: The security and IT operations teams in organizations often use multiple solutions and tools to detect and resolve security issues, usually leading to an incomplete and disjointed representation of the overall risk. With this product, Datadog will create a unified view of the security threat across a company's entire cloud infrastructure. With cybersecurity and cloud transformation as top priorities for businesses, Datadog's security products will be a natural extension of the monitoring services the company offers.
Unified End-to-End Testing: Datadog's comprehensive test suite will simplify the overall testing process and allow speedy execution. This product is a significant development for Datadog as it allows it to expand its scope to the software engineering process, away from its traditional mainstay of monitoring in the operational environment.
Cloud Cost Management: More businesses are moving to the cloud, and their cloud costs are growing dramatically. With this product, customers will be able to proactively assess the costs they'll incur when they move to cloud environments. Also, Datadog already has insights into cloud resource utilization with its monitoring products and can easily detect updates to cloud costs.
PCI Compliance for Log Management and Application Performance Monitoring: PCI is a set of security standards that businesses must adhere to when processing credit and debit card transactions. With Datadog's PCI compliance, its customers can leverage the products in an even larger capacity.
Datadog's systematic expansion of the scope of its products is serving more and more needs of its customers.
Image source: Datadog.
Datadog estimates its core observability market opportunity at a massive $62 billion, and it is positioned well to capture a larger piece of that pie.
Crisp execution translates innovation into financial results
There is no bigger validation of Datadog's product innovation than the growing adoption of its products by its customers.
CUSTOMERS' PRODUCT USAGE Q2'21 Q3'21 Q4'21 Q1'22 Q2'22
% of customers using 2+ products 75% 77% 78% 81% 79%
% of customers using 4+ products 28% 31% 33% 35% 37%
% of customers using 6+ products 6% 8% 10% 12% 14%
Source: Company earnings releases.
Datadog's number of customers paying more than $100,000 grew from 16,400 in the second quarter of 2021 to 21,200 in the second quarter of 2022. The dollar-based net retention rate -- how much more the average existing client spends from one year to the next -- has now topped 130% for 20 consecutive quarters.
The company's scalable business model, where the new product innovation is capturing a bigger share of its customers' wallets, along with disciplined execution, has created a path for high revenue growth and improving profitability. Datadog grew its year-over-year revenue in the second quarter of 2022 by 74%, reaching $406 million, and has increased its revenue tenfold from about $100 million in 2017 to over $1 billion in 2021. Unlike many high-growth businesses, Datadog is improving its profitability and produced $60 million in free cash flow in the second quarter.
Macro factors can be distracting, but Datadog is staying focused on building on its strengths, and its discipline is showing in its numbers.
What should investors do?
It is quite possible that a slowing economy and contraction in consumer and business spending will impact Datadog's business. But with over $1.7 billion in cash and marketable securities, Datadog is in a strong position to weather the economic storms. More importantly, Datadog's excellence in product innovation and execution, along with its large market opportunity, set it up well for long-term success.
Despite currently trading lower than their three-year average price-to-sales valuation, Datadog's shares may seem somewhat expensive. And that's likely because the market demands a premium for this high-quality business.
DDOG PS Ratio data by YCharts.
A good strategy for investors could be to build a position in Datadog incrementally by buying shares in small chunks over a period of time.
All the negative commentary in the media and the general pessimism toward markets today can be daunting for investors. But avoiding that noise and investing systematically in high-quality businesses like Datadog can unlock life-changing wealth in the long run.
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 September 30, 2022
Kaustubh Deshmukh (KD) has positions in Airbnb, Inc. and Datadog. The Motley Fool has positions in and recommends Airbnb, Inc. 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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One company that shines on both of those fronts is Datadog (NASDAQ: DDOG). DDOG PS Ratio data by YCharts. While Datadog cannot resolve all technology issues by itself, it is good at proactively identifying potential problems and giving key insights to the right people so that those dreaded system outages can be avoided and the annoying app slowdowns can be prevented.
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One company that shines on both of those fronts is Datadog (NASDAQ: DDOG). DDOG PS Ratio data by YCharts. The news cycle can be overwhelming, but smart investors patiently navigate the noise and focus on investing in high-quality businesses and long-term returns.
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One company that shines on both of those fronts is Datadog (NASDAQ: DDOG). DDOG PS Ratio data by YCharts. Datadog's pace of product innovation is at the heart of its success, and the company reinforced that discipline with announcements of multiple new products at its Dash investor conference a few days ago.
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One company that shines on both of those fronts is Datadog (NASDAQ: DDOG). DDOG PS Ratio data by YCharts. Below are four key products that were released for general availability: Cloud Security Management: The security and IT operations teams in organizations often use multiple solutions and tools to detect and resolve security issues, usually leading to an incomplete and disjointed representation of the overall risk.
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dfb1ab36-a6e8-4aca-b995-5696885d96cf
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718490.0
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2022-10-27 00:00:00 UTC
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Amazon Plunges 20% on Earnings Miss -- Is Amazon Stock a Buy Now?
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DDOG
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https://www.nasdaq.com/articles/amazon-plunges-20-on-earnings-miss-is-amazon-stock-a-buy-now
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nan
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nan
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Amazon (NASDAQ: AMZN) reported earnings on Oct. 27 after the closing bell, and shares were down over 20% on the news. The company reported a miss on revenue and provided lower guidance. Do the shares have more pain ahead, or is Amazon stock a buy now?
Please watch below for Amazon stock analysis.
*Stock prices used in the video were during the trading day of Oct. 27, 2022. The video was published on Oct. 27, 2022.
10 stocks we like better than Amazon
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 wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Amazon, CrowdStrike Holdings, Inc., Datadog, ServiceNow, Inc., and Snap Inc. The Motley Fool has positions in and recommends Amazon, CrowdStrike Holdings, Inc., Datadog, and ServiceNow, Inc. The Motley Fool has a disclosure policy. Eric Cuka 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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Amazon (NASDAQ: AMZN) reported earnings on Oct. 27 after the closing bell, and shares were down over 20% on the news. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Eric Cuka has positions in Amazon, CrowdStrike Holdings, Inc., Datadog, ServiceNow, Inc., and Snap Inc.
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Amazon (NASDAQ: AMZN) reported earnings on Oct. 27 after the closing bell, and shares were down over 20% on the news. Eric Cuka has positions in Amazon, CrowdStrike Holdings, Inc., Datadog, ServiceNow, Inc., and Snap Inc. The Motley Fool has positions in and recommends Amazon, CrowdStrike Holdings, Inc., Datadog, and ServiceNow, Inc.
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10 stocks we like better than Amazon When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 30, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, CrowdStrike Holdings, Inc., Datadog, and ServiceNow, Inc.
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Do the shares have more pain ahead, or is Amazon stock a buy now? That's right -- they think these 10 stocks are even better buys. The Motley Fool has a disclosure policy.
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4220ac08-014c-4d83-aaac-4e752a730590
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718491.0
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2022-10-27 00:00:00 UTC
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Anatomy of a Bear Market and What to Expect This Earnings Season
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DDOG
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https://www.nasdaq.com/articles/anatomy-of-a-bear-market-and-what-to-expect-this-earnings-season
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nan
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nan
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I
n this Weekly Insights we provide thoughts on where we are in the current market downturn and what to expect this earnings season based on early reports.
CONTENTS
Tough set up for earnings, but expectations re-set lower
While most companies are reporting weak earnings, expectations are now very low. Where are the risks and opportunities?
Earnings from Microsoft, Google, Snap, AMD, Micron, Carmax, provide a glimpse into tough macro trends
Anatomy of a bear market
Where are we in the downturn?
Divergence in fundamentals just starting to drive stock performance
EXPECTATIONS RE-SETTING LOWER
Tech giants Microsoft and Google just kicked off the earnings season, after several notable reports and pre-announcements from Snap, AMD, Micron, and Carmax. Demand trends have significantly deteriorated since last quarter and ultimately we expect that every sector will be impacted by the sluggish macro.
With this set up in mind, there are many companies that look very attractive on pullbacks, as we expect that secular trends will overcome their cyclical headwinds over the next several quarters. Within industrial/enterprise technology there is a wide spectrum of business models all providing different risk/reward. On one end of the spectrum are semis/hardware with the most downside, but also the most upside in a recovery, and on the other end of the spectrum are software (SaaS) business models which we expect to be most resilient through the downturn.
Semis/hardware, inventory dynamics are significantly exacerbating a difficult macro backdrop. As an example AMD warned that PC demand will be $1bn lower revenue on a base of $6.7bn. PCs are ~33% of AMD's total revenue, which would imply that company expects that chips sold to PCs will be down 50%+ yoy while the PC market was down mid-teens during the quarter. This means that even if the market continues to decline, semiconductor earnings will form a floor as inventory destocking comes to an end (usually takes 2 quarters).
Economically sensitive SaaS especially ones exposed to small businesses are facing significant cyclical headwinds. Microsoft (MSFT) noted on its earnings call that small and medium enterprises were disproportionately weak. But ultimately, even in an economic scenario of muted growth, companies will have to invest to run their businesses more efficiently through a downturn, which will create a tailwind for these companies even in a weaker macro.
Consumption based software. We expect that spending on cloud infrastructure will be relatively more resilient through a downturn. But there are two trends to note (1) cloud spending is now a major expense item and most companies will look to optimize it (2) consumption based business models are likely to experience slower growth. This means that there will be an initial re-set before companies can resume strong secular growth. Snowflake (SNOW) flagged this trend as early as March of this year, and it was followed by muted guides from MongoDB (MDB) and DataDog (DDOG). But some investors are still surprised by the slower growth reported by the hyperscalers (e.g. Microsoft just guided to 37% growth for Azure for 2Q23 vs. 42% in 1Q23 and 39% consensus - solid, but a deceleration).
Traditional SaaS for specific applications such as cybersecurity, design, and simulation we expect to be most resilient. Although we expect some level of uncertainty with deals taking longer to close, spending in these categories is generally non-discretionary.
Overall, while many risks reman, the share prices of most of the companies in the four categories above have declined 50-80% ytd, presenting what we believe to be attractive opportunities, and manageable risks.
On the contrary, there are many areas where we believe the risks outweigh the potential upside.
We expect more downside for areas such as advertising, where weak macro trends are exacerbated by privacy policy changes.
We expect potential downside for companies directly exposed to deteriorating consumer balance sheets driven by higher interest rates.
Within technology we are avoiding areas where companies are taking asset and credit risks
In cyclicals we are avoiding housing, autos, and other "big ticket" items.
Earnings takeaways from early reports and pre-announcements
Reported earnings are continuing to surprise to the downside, despite expectations declining throughout the quarter. While last quarter we experienced several pockets of weakness (transportation, PCs, semis) this weakness has now broadened to large cap technology companies, that can be viewed as a proxy for the broader economy.
Microsoft (MSFT): in-line 1Q23 but weak guidance for 2Q23. Specifically, Azure growth to slow to +37% yoy in F2Q23 from 42% in F1Q23 (-5pts qoq). While lower than expectations, we view anything above 30%+ growth as solid in this environment.
Google (GOOG): miss on top and bottom line (-3% revenue/-7% EBITDA miss). Revenue was up 6% (11% ex FX). Add spend weak driven by Youtube and Network, while cloud showed good momentum. Cloud growth accelerated to +38% yoy in 3Q22 (+180bp), although on an easy comp.
Snap (SNAP): in addition to weak macro, biggest challenge was customer engagement. Time spent watching content in the U.S. declined 5% yoy. Guide for flat revenue in 4Q implies declines in November and December.
Advanced Micro Devices (AMD): weak PCs drove $1bn revenue shortfall, but investors now worried if enterprise spend is the next shoe to drop.
Carmax (KMX): same store sales down -8.3% and disappointing CAF income driven by weak consumer demand and higher than anticipated loan loss provisions. Interest rate driven affordability pressures.
On the positive side, expectations are now re-set significantly lower especially in areas such as cloud (re-set with Microsoft earnings), semiconductors (re-set with AMD and INTC), transportation and logistics (re-set with Fedex) etc. Consequently, we expect more positive than negative earnings surprises, despite that the earnings cuts trend for the broader market still remains in tact.
MACRO BACKDROP
While downturns follow a pattern, each one is slightly different and caused by a different catalyst.
High risks assets generally sell-off first, which was the case in this downturn, with limited differentiation within business models. This phase is followed by a broad valuation reset, in this case pretty violent and exacerbated by higher discount rates; and lastly, earnings estimates get cut driven by broad macro weakness.
While the last phase is generally the most violent and volatile, there are several factors that differentiate this downturn from others:
Unlike prior downturns, where the Fed came to the rescue, monetary tightening is the principal driver of this downturn. Consequently, the Fed's decisions are well telegraphed and bad news gets priced in consistently ahead of the announcements and results (e.g., the VIX, a volatility index we closely watch, has been relatively contained)
In a typical downturn, there is overcapacity in the system and small changes in demand result in earnings collapse. This is than followed by a sharp recovery as supply and demand comes to balance. In this bear market, there is no broad overcapacity, but many dislocations. While some are getting corrected (e.g., semis) others are getting created (e.g., housing). Consequently, on the positive side we don't expect a sudden collapse in earnings across the board, but on the negative side we expect prolonged headwinds that will ultimately affect earnings in many end markets
There are significant differences between this technology bear market and the tech bubble of 2000. Many tech companies today have proven business models at scale and generate significant cash flow. While correlations have been high and all technology has been treated equally thus far in the sell off, we are starting to note divergence between good and bad companies.
We believe that industrial technology can do very well in this scenario once the market stabilizes. Our channel checks indicate that while most companies are looking to optimize their spend, which is weighing on earnings and creating elongated deal cycles, investing in technology will be the only way for companies to stay competitive. We therefore expect a very meaningful tech cycle ahead.
DIVERGENCE IN FUNDAMENTALS
While in the first two phases of the downturn there was limited differentiation between companies with solid vs. poor fundamentals, we are just starting to notice some divergence.
As an interesting datapoint, we compare stock price performance of Snowflake (SNOW) and DataDog (DDOG), both leaders in cloud infrastructure, with Zillow (Z),an online real estate platform. While these businesses have seemingly not much to do with each other, all three companies have declined roughly the same amount (~50% ytd).
Now turning on to the fundamentals, we compare hiring data provided by Revealera, a company focused on hiring insights in technology. Job openings for both DataDog (DDOG) and Snowflake (SNOW) show a similar, but more recently a slightly diverging trend.
Snowflake job openings showed consistent growth.
Datadog employment growth peaked in 2021 and flattened out in 2022.
Conversely, job openings for Zillow (Z) show a clear deterioration, implying significant divergence in fundamentals. This divergence in fundamentals did not impact the stocks in 1H22, as the sell of was driven by interest rates and consequently valuations, rather than fundamentals.
Interestingly, while fundamentals did not have a meaningful impact on stock prices in the first half of 2022, this changed since the June lows. Many companies traded down to historically low valuations and found a floor, while others with deteriorating earnings fundamentals continue to find new lows.
We noted similar trend for cybersecurity companies, which have continued on a path of consistent growth in hiring. Many of those companies did not reach new lows despite the recent leg down for the market.
For more research visit out website spear-invest.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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As an interesting datapoint, we compare stock price performance of Snowflake (SNOW) and DataDog (DDOG), both leaders in cloud infrastructure, with Zillow (Z),an online real estate platform. Snowflake (SNOW) flagged this trend as early as March of this year, and it was followed by muted guides from MongoDB (MDB) and DataDog (DDOG). Job openings for both DataDog (DDOG) and Snowflake (SNOW) show a similar, but more recently a slightly diverging trend.
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Snowflake (SNOW) flagged this trend as early as March of this year, and it was followed by muted guides from MongoDB (MDB) and DataDog (DDOG). As an interesting datapoint, we compare stock price performance of Snowflake (SNOW) and DataDog (DDOG), both leaders in cloud infrastructure, with Zillow (Z),an online real estate platform. Job openings for both DataDog (DDOG) and Snowflake (SNOW) show a similar, but more recently a slightly diverging trend.
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Snowflake (SNOW) flagged this trend as early as March of this year, and it was followed by muted guides from MongoDB (MDB) and DataDog (DDOG). As an interesting datapoint, we compare stock price performance of Snowflake (SNOW) and DataDog (DDOG), both leaders in cloud infrastructure, with Zillow (Z),an online real estate platform. Job openings for both DataDog (DDOG) and Snowflake (SNOW) show a similar, but more recently a slightly diverging trend.
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Job openings for both DataDog (DDOG) and Snowflake (SNOW) show a similar, but more recently a slightly diverging trend. Snowflake (SNOW) flagged this trend as early as March of this year, and it was followed by muted guides from MongoDB (MDB) and DataDog (DDOG). As an interesting datapoint, we compare stock price performance of Snowflake (SNOW) and DataDog (DDOG), both leaders in cloud infrastructure, with Zillow (Z),an online real estate platform.
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97403e83-b23d-4952-af5a-dc90df3c13ec
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718492.0
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2022-10-27 00:00:00 UTC
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Materialise (MTLS) Matches Q3 Earnings Estimates
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DDOG
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https://www.nasdaq.com/articles/materialise-mtls-matches-q3-earnings-estimates
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nan
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nan
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Materialise (MTLS) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this 3D printing software and medical and industrial products company would post earnings of $0.02 per share when it actually produced earnings of $0.02, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Materialise, which belongs to the Zacks Internet - Software industry, posted revenues of $56.82 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.54%. This compares to year-ago revenues of $60.44 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Materialise shares have lost about 54.6% since the beginning of the year versus the S&P 500's decline of -19.6%.
What's Next for Materialise?
While Materialise has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Materialise: 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 $0.05 on $62.54 million in revenues for the coming quarter and $0.08 on $232.16 million 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.
Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended September 2022. The results are expected to be released on November 3.
This data analytics and cloud monitoring company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +23.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Datadog's revenues are expected to be $412.61 million, up 52.5% from the year-ago quarter.
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
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Materialise NV (MTLS): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Datadog, Inc. (DDOG): Free Stock Analysis Report Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended September 2022. Materialise, which belongs to the Zacks Internet - Software industry, posted revenues of $56.82 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.54%.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report Materialise (MTLS) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate.
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Another stock from the same industry, Datadog (DDOG), has yet to report results for the quarter ended September 2022. Datadog, Inc. (DDOG): Free Stock Analysis Report Materialise (MTLS) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate.
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7d5a9626-ea66-4ea2-8065-383ad719c330
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718493.0
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2022-10-27 00:00:00 UTC
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2 Beaten Down Software Stocks That Look Like Great Long-Term Buys
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DDOG
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https://www.nasdaq.com/articles/2-beaten-down-software-stocks-that-look-like-great-long-term-buys
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nan
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nan
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A 2022 examination of the information technology sector (let alone individual companies in that sector) would have just about any investor second-guessing the decision to go anywhere near it. The Nasdaq Composite index is largely made up of companies in the information technology sector, particularly software companies. Right now, the Nasdaq is trading down about 28.4% in 2022.
Looking at that poor stock performance, it would seem most software and information technology companies did poorly this year. In some instances, the drop in valuation is truly warranted. Investors got caught up in a meme-stock euphoria in 2021 and several companies ended up overvalued based on short-term thinking. The stock price action this year has corrected the overenthusiasm.
With the final quarter of the year well underway, some companies have corrected to a point where buying again looks appealing. Whether you are lowering your cost basis or initiating a new position, here are two high-growth software companies with stocks now priced to be big winners over the long term.
Image source: Getty Images.
1. Datadog
Datadog (NASDAQ: DDOG) provides companies with a software platform that monitors cloud-scale applications, servers, databases, tools, and services to generate data analytics and ensure security. Its services are in high demand that is expected to keep growing well into the future.
The growing demand can be seen in the table below showing Datadog's revenue and gross margin trends for the last four full fiscal years:
METRIC FISCAL 2018 FISCAL 2019 FISCAL 2020 FISCAL 2021
Revenue $198.1 million $362.8 million $603.5 million $1,028.8 million
Gross profit $151.5 million $273.8 million $473.3 million $794.5 million
Gross margin 76% 75% 78% 77%
Data source: Company filings and investor presentations. Notes: Dollar amounts in millions. The fiscal year ends Dec. 31 of each year.
One reason Datadog saw such an uptick in demand is that its platform is positioned at the intersection of two growing addressable markets: big data and security. Additionally, data analytics and security are even more important to companies operating in the cloud. Datadog's software has an edge here because it can integrate information from different cloud computing platforms, including Amazon's AWS, Microsoft's Azure, and Alphabet's Google Cloud. This has helped Datadog boost revenue by more than two-thirds year over year since 2018, all while maintaining an enviably high gross margin.
Since its initial public offering (IPO) in September 2019, Datadog's stock price is up 136%, and that's even after a 50% price drop so far in 2022.
Despite generating strong top-line growth and margin expansion throughout 2022, it is fair that some investors may fear a slowdown or plateau in growth is imminent. For example, given the existing and likely future interest rate hikes from the Federal Reserve, some may be concerned that corporate spending and budgeting will tighten, threatening Datadog's growth. Additionally, while Datadog has quite an enviable gross margin, the company is not consistently profitable. With the stock price drop this year, these factors are now priced into the stock. Going forward, the company has a real path to further growth that should eventually account for the current headwinds. An analyst at investment firm Canaccord Genuity last week upgraded its recommendation on Datadog from a hold to a buy status, citing strong demand and accelerating growth as catalysts.
2. MongoDB
Database specialist MongoDB's (NASDAQ: MDB) weird name is kinda funny (it's a reference to the humongous database the company developed). But this company's software is tackling quite a serious business: database management.
In the world of big data, many companies still leverage relational databases. At a high level, relational databases are organized as a series of columns and rows to build large tables and synthesize data. However, as corporations grow and invest more heavily in digital transformation through enhancements such as CRM systems from companies like Salesforce, HR platforms such as those used by Workday, or accounting software like what Oracle markets, data quickly becomes distributed and unstructured. This means that data is hosted in systems that do not connect with one another seamlessly, thereby making important data-driven insights challenging and inefficient. MongoDB offers a software platform that allows for easier data migration from disparate systems.
Like with Datadog, the services MongoDB provides are in high demand. The table below illustrates Datadog's revenue trends for the past four fiscal years (each ending Jan. 31):
METRIC FISCAL 2019 FISCAL 2020 FISCAL 2021 FISCAL 2022
Revenue $267 million $421.7 million $590.4 million $873.8 million
Revenue Growth (YOY) N/A 57.9% 40% 48%
R&D Costs $89.9 million $149.0 million $205.2 million $308.8 million
R&D as % of Revenue 33.7% 35.3% 34.7% 35.3%
Source: MongoDB earnings reports. Note: Fiscal year ends Jan. 31 of each year referenced and mostly relates to performance from the previous calendar year. YOY = Year over year. R&D = Research and development.
Investors can see that demand for MongoDB's services have been robust over the last several years. Additionally, MongoDB has been allocating nearly one-third of its costs to research and development. On the surface, this appears to be paying off as the company's top-line growth has been exceeding its reinvestments back into the business. However, some investors may argue that management should ratchet up these investments given the strong demand for the product. While I can see both sides to the argument, I am more comfortable with management sustaining investment levels rather than increasing them during times of wide economic uncertainty.
MongoDB's stock has performed well since its public market debut in 2017. The stock is up an eye-popping 508% since its IPO. That rise is in spite of the 63% price drop just in 2022.
Keep an eye on valuation
Given that both MongoDB and Datadog serve important and growing markets, investors may be scratching their heads as to why the stock prices are down so much in 2022. On the surface, both of these companies look like disruptive technology players. Why is there hesitancy to buy these discounted stocks?
MongoDB has a market capitalization of about $13 billion and trades at 12 times trailing-12-month sales. However, the company has yet to generate consistent profits as it is still very much in growth mode even after five years as a public company.
The younger Datadog has a market capitalization of $26 billion and trades at 20 times trailing-12-month sales. Datadog is net income positive through the first two quarters of the year; however, the company is not yet consistently profitable each individual quarter. While Datadog's management guided toward full-year 2022 profits on a non-GAAP basis, it is imperative for investors to understand that non-GAAP profitability does not mean the company is truly generating positive net income. However, by demonstrating it has the ability to move cost levers while still generating strong top-line growth in individual quarters should provide investors with some assurance that management has the right playbook for long-term consistent profits.
While cratering stock prices can make a company appear risky, both Datadog and MongoDB are investing in high-growth areas that yield consistent customer demand. Even though software stocks have taken a big hit throughout 2022, the long-term potential of each stock provides investors with a view of what the future could hold, so long as each company keeps up the strong growth. If you are bullish on big data analytics and security in the cloud, each of these stocks presents a very nice opportunity to initiate a position or lower your cost basis if you already own and are considering buying more.
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 September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet (A shares), Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Datadog, Microsoft, MongoDB, Salesforce, Inc., and Workday. 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 Datadog (NASDAQ: DDOG) provides companies with a software platform that monitors cloud-scale applications, servers, databases, tools, and services to generate data analytics and ensure security. An analyst at investment firm Canaccord Genuity last week upgraded its recommendation on Datadog from a hold to a buy status, citing strong demand and accelerating growth as catalysts. However, as corporations grow and invest more heavily in digital transformation through enhancements such as CRM systems from companies like Salesforce, HR platforms such as those used by Workday, or accounting software like what Oracle markets, data quickly becomes distributed and unstructured.
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Datadog Datadog (NASDAQ: DDOG) provides companies with a software platform that monitors cloud-scale applications, servers, databases, tools, and services to generate data analytics and ensure security. Revenue $198.1 million $362.8 million $603.5 million $1,028.8 million Gross profit $151.5 million $273.8 million $473.3 million $794.5 million Gross margin 76% 75% 78% 77% Data source: Company filings and investor presentations. Revenue $267 million $421.7 million $590.4 million $873.8 million Revenue Growth (YOY) N/A 57.9% 40% 48% R&D Costs $89.9 million $149.0 million $205.2 million $308.8 million R&D as % of Revenue 33.7% 35.3% 34.7% 35.3% Source: MongoDB earnings reports.
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Datadog Datadog (NASDAQ: DDOG) provides companies with a software platform that monitors cloud-scale applications, servers, databases, tools, and services to generate data analytics and ensure security. Revenue $198.1 million $362.8 million $603.5 million $1,028.8 million Gross profit $151.5 million $273.8 million $473.3 million $794.5 million Gross margin 76% 75% 78% 77% Data source: Company filings and investor presentations. Revenue $267 million $421.7 million $590.4 million $873.8 million Revenue Growth (YOY) N/A 57.9% 40% 48% R&D Costs $89.9 million $149.0 million $205.2 million $308.8 million R&D as % of Revenue 33.7% 35.3% 34.7% 35.3% Source: MongoDB earnings reports.
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Datadog Datadog (NASDAQ: DDOG) provides companies with a software platform that monitors cloud-scale applications, servers, databases, tools, and services to generate data analytics and ensure security. The fiscal year ends Dec. 31 of each year. With the stock price drop this year, these factors are now priced into the stock.
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bd8f6935-8077-49d6-8cdf-d672f11aeaba
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718494.0
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2022-10-26 00:00:00 UTC
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Why Datadog Stock Was Playing Dead Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-was-playing-dead-today
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nan
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nan
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What happened
Datadog (NASDAQ: DDOG) wasn't exactly a ball-chasing, tail-wagging stock on the market Wednesday. Amid general tech industry gloom, the cloud analytics company was hit with a price target cut from an analyst. At the end of the day, its shares had sunk by over 8%.
So what
Spooked by disappointing earnings reported by tech titans Alphabet and Microsoft, investors shied away from stocks in the sector.
Unfortunately for Datadog investors, this coincided with said analyst price target cut. The chopper was Joel Fishbein of Truist Securities, who included the move in a broader analysis of infrastructure software stocks. In the note, Fishbein reduced his fair value estimation of Datadog stock to $120 per share; previously, he pegged it as being worth $155.
He's maintaining his buy recommendation on the shares, however. Even at the new, reduced level, the company has notable upside -- that $120 is nearly 50% higher than the stock's current price.
While valuations have come down for companies like Datadog, the prognosticator wrote, enterprise software continues to be more critical for businesses in a variety of sectors. He foresees strong demand triggered by this and a raft of recent use cases proving the utility of such solutions.
Now what
Zooming out a bit, we can say that Datadog has also been a victim of the bearish investor sentiment holding down tech stocks over the past few months. We'll get a clearer picture of how the company has been doing of late when it releases its third-quarter earnings next week; these are to be discussed in a conference call on Thursday, Nov. 3 before market open.
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 September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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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What happened Datadog (NASDAQ: DDOG) wasn't exactly a ball-chasing, tail-wagging stock on the market Wednesday. Amid general tech industry gloom, the cloud analytics company was hit with a price target cut from an analyst. The chopper was Joel Fishbein of Truist Securities, who included the move in a broader analysis of infrastructure software stocks.
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What happened Datadog (NASDAQ: DDOG) wasn't exactly a ball-chasing, tail-wagging stock on the market Wednesday. Unfortunately for Datadog investors, this coincided with said analyst price target cut. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Datadog (NASDAQ: DDOG) wasn't exactly a ball-chasing, tail-wagging stock on the market Wednesday. 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 September 30, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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What happened Datadog (NASDAQ: DDOG) wasn't exactly a ball-chasing, tail-wagging stock on the market Wednesday. Unfortunately for Datadog investors, this coincided with said analyst price target cut. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Datadog wasn't one of them!
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4a170104-07c4-4cf0-9947-d4622fcbfe9d
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718495.0
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2022-10-26 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DDOG, JNJ, CI
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DDOG
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-ddog-jnj-ci
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 16,906 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.2% of DDOG's average daily trading volume over the past month, of 3.9 million shares. Especially high volume was seen for the $81 strike put option expiring October 28, 2022, with 1,185 contracts trading so far today, representing approximately 118,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $81 strike highlighted in orange:
Johnson & Johnson (Symbol: JNJ) options are showing a volume of 29,666 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 42.8% of JNJ's average daily trading volume over the past month, of 6.9 million shares. Especially high volume was seen for the $165 strike call option expiring December 16, 2022, with 1,581 contracts trading so far today, representing approximately 158,100 underlying shares of JNJ. Below is a chart showing JNJ's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Cigna Corp (Symbol: CI) options are showing a volume of 8,398 contracts thus far today. That number of contracts represents approximately 839,800 underlying shares, working out to a sizeable 42.6% of CI's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $315 strike put option expiring October 28, 2022, with 1,647 contracts trading so far today, representing approximately 164,700 underlying shares of CI. Below is a chart showing CI's trailing twelve month trading history, with the $315 strike highlighted in orange:
For the various different available expirations for DDOG options, JNJ options, or CI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $81 strike put option expiring October 28, 2022, with 1,185 contracts trading so far today, representing approximately 118,500 underlying shares of DDOG. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 16,906 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.2% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $81 strike highlighted in orange: Johnson & Johnson (Symbol: JNJ) options are showing a volume of 29,666 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 16,906 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.2% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 16,906 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $81 strike put option expiring October 28, 2022, with 1,185 contracts trading so far today, representing approximately 118,500 underlying shares of DDOG. That number works out to 43.2% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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Below is a chart showing CI's trailing twelve month trading history, with the $315 strike highlighted in orange: For the various different available expirations for DDOG options, JNJ options, or CI options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 16,906 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.2% of DDOG's average daily trading volume over the past month, of 3.9 million shares.
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fd9d3689-7676-4cd1-afbc-2f6e924970fd
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718496.0
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2022-10-26 00:00:00 UTC
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Strength Seen in AvidXchange Holdings, Inc. (AVDX): Can Its 6.8% Jump Turn into More Strength?
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DDOG
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https://www.nasdaq.com/articles/strength-seen-in-avidxchange-holdings-inc.-avdx%3A-can-its-6.8-jump-turn-into-more-strength
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nan
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nan
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AvidXchange Holdings, Inc. (AVDX) shares rallied 6.8% in the last trading session to close at $8.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.1% gain over the past four weeks.
The recent surge in AvidXchange’s share price reflects strong prospects. It is expected to report third-quarter 2022 top-line growth in double digits. AvidXchange is benefiting from the automation megatrend with its varied solutions, such as accounts payable automation software and payments solutions.
This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +69.4%. Revenues are expected to be $78.55 million, up 20.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For AvidXchange Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AVDX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
AvidXchange Holdings, Inc. is a member of the Zacks Internet - Software industry. One other stock in the same industry, Datadog (DDOG), finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month.
Datadog's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.16. Compared to the company's year-ago EPS, this represents a change of +23.1%. Datadog currently boasts a Zacks Rank of #4 (Sell).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
AvidXchange Holdings, Inc. (AVDX): 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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One other stock in the same industry, Datadog (DDOG), finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog, Inc. (DDOG): Free Stock Analysis Report One other stock in the same industry, Datadog (DDOG), finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month.
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One other stock in the same industry, Datadog (DDOG), finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month. Datadog, Inc. (DDOG): Free Stock Analysis Report
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One other stock in the same industry, Datadog (DDOG), finished the last trading session 7.7% higher at $88.75. DDOG has returned -4.6% over the past month. Datadog, Inc. (DDOG): Free Stock Analysis Report
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9bc27f6d-f724-482a-b17e-610fccc4f70c
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718497.0
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2022-10-25 00:00:00 UTC
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Why Datadog, MongoDB, and HubSpot Rallied Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-mongodb-and-hubspot-rallied-today
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nan
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nan
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What happened
Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) all rallied today, up 6.5%, 9.3%, and 7.2%, respectively, as of 1:21 p.m. ET.
The synchronous move across these software names likely has to do with a decline in long-term bond yields today. Long-term yields hit levels not seen since 2008 last week, but backed off a lot today. A decline in interest rates is great news for unprofitable growth stocks, with the bulk of their profitability out into the future.
So what
There wasn't much in the way of company-specific news today, other than analysts at Jefferies releasing a note maintaining their buy rating on HubSpot, even as they lowered their price target to $400 from $450.
HubSpot trades near $280 today, so that upside is still significant. Still, the across-the-board moves in these software-as-a-service stocks likely points to macroeconomic factors causing today's price moves. Specifically, the 10-year Treasury Bond saw its yield drop from 4.234% yesterday to 4.098% as of this writing.
That's a fairly large drop for a single day's work, and may be reflective of declining inflation expectations. The S&P CoreLogic Case-Shiller 20-city house-price index for August was released today, showing a 1.3% monthly decline in housing prices -- the second straight month of declines. Lower housing prices should eventually feed into lower core inflation, which is why the market may have taken this decline as an optimistic sign inflation would come down in the months ahead.
Datadog, MongoDB, and HubSpot are all fantastically performing businesses, but their relatively high valuations have caused large sell-offs as interest rates have risen. While these stocks wouldn't be immune from recession, it's highly likely their recurring subscription revenues and strong positions in the ongoing digitization of enterprises large and small will keep revenues growing even through a downturn, at least to some extent. Therefore, it's almost as if higher long-term interest rates pose a larger danger to these stocks than recession, which would likely see interest rates fall in response.
Now what
Datadog is actually barely profitable, but none of these stocks really make material profits today. Even after their year-to-date sell-offs, these stocks aren't exactly "cheap," with Datadog at 20 times sales, MongoDB at more than 12 times sales, and HubSpot at nearly nine times sales.
DDOG PS Ratio data by YCharts
This makes all three of these stocks somewhat risky, should anything unforeseen happen with their businesses or interest rates.
While the recent sell-off might make these names enticing for younger, growth-oriented investors who have lots of time to make their principal back in case of further declines, older, more conservative investors should still think carefully before buying these expensive growth names, even though they have come down a lot from their highs.
Further gains may be dependent on interest rates falling back under 3%, and there is still a lot of uncertainty around whether or not that will happen.
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 September 30, 2022
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, Jefferies Financial Group Inc., 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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DDOG PS Ratio data by YCharts This makes all three of these stocks somewhat risky, should anything unforeseen happen with their businesses or interest rates. What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) all rallied today, up 6.5%, 9.3%, and 7.2%, respectively, as of 1:21 p.m. So what There wasn't much in the way of company-specific news today, other than analysts at Jefferies releasing a note maintaining their buy rating on HubSpot, even as they lowered their price target to $400 from $450.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) all rallied today, up 6.5%, 9.3%, and 7.2%, respectively, as of 1:21 p.m. DDOG PS Ratio data by YCharts This makes all three of these stocks somewhat risky, should anything unforeseen happen with their businesses or interest rates. The S&P CoreLogic Case-Shiller 20-city house-price index for August was released today, showing a 1.3% monthly decline in housing prices -- the second straight month of declines.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) all rallied today, up 6.5%, 9.3%, and 7.2%, respectively, as of 1:21 p.m. DDOG PS Ratio data by YCharts This makes all three of these stocks somewhat risky, should anything unforeseen happen with their businesses or interest rates. Even after their year-to-date sell-offs, these stocks aren't exactly "cheap," with Datadog at 20 times sales, MongoDB at more than 12 times sales, and HubSpot at nearly nine times sales.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and HubSpot (NYSE: HUBS) all rallied today, up 6.5%, 9.3%, and 7.2%, respectively, as of 1:21 p.m. DDOG PS Ratio data by YCharts This makes all three of these stocks somewhat risky, should anything unforeseen happen with their businesses or interest rates. The synchronous move across these software names likely has to do with a decline in long-term bond yields today.
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70cfdc43-b98b-4a8b-8ed5-f7a4365653f7
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718498.0
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2022-10-23 00:00:00 UTC
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2 Growth Stocks Down More Than 50% to Buy Now, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-growth-stocks-down-more-than-50-to-buy-now-according-to-wall-street
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nan
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nan
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Recession fears have sent the S&P 500 tumbling into a bear market this year, erasing more than $8 trillion in wealth. The broad-based index is currently 22% off its high, but many stocks have slipped much farther. For instance, Datadog (NASDAQ: DDOG) and Atlassian (NASDAQ: TEAM) are down 58% and 56%, respectively.
However, Wall Street says the stocks are oversold. Datadog and Atlassian have consensus ratings of "buy" among analysts. In fact, not a single analyst recommends selling shares of either company right now, and both stocks have more than 100% upside in the next 12 months, according to the highest price targets.
Of course, investors should never buy a stock based solely on its short-term price target. The market is too unpredictable over short periods of time. But Datadog and Atlassian are both backed by compelling long-term investment theses.
Here's what investors should know.
Datadog: The leader in application performance monitoring
Datadog specializes in observability and security. Its cloud platform provides real-time visibility across applications, networks, and infrastructure to help businesses keep their IT ecosystems secure and performant. Datadog offers over 500 prebuilt integrations that simplify customer adoption, and its platform leans on artificial intelligence (AI) to surface proactive alerts, identify performance problems, and automate root cause analysis.
Thanks to its robust portfolio and powerful AI engine, Datadog has achieved a strong market presence in several observability software categories. For instance, research company Gartner named Datadog a leader in application performance monitoring in June, and G2 Grid recently recognized Datadog as a leader in cloud infrastructure monitoring, log monitoring, and database monitoring.
Not surprisingly, those accolades have come alongside strong financial results. Revenue soared 79% to $1.4 billion over the past year, and free cash flow (FCF) more than doubled to $354 million. But enterprises spend more on digital transformation projects each year, and Datadog is a key enabler of digital transformation. To that end, management estimates its addressable market at $53 billion by 2025, leaving a long runaway for growth.
Shares currently trade at 19.2 times sales, a bargain compared to the three-year average of 38.6 times sales. That's why this beaten-down growth stock is worth buying today.
Atlassian: The gold standard in project management software
Atlassian specializes in team collaboration and productivity software. Its best known products -- Jira for project management and issue tracking, and Confluence for content organization and information sharing -- have become the gold standards in their respective end markets. But Atlassian is also a key player in adjacent software verticals like task management, enterprise planning, and IT service management.
That success stems in part from a somewhat unique self-service sales model. Atlassian primarily distributes its products online without direct sales support, relying instead on word-of-mouth marketing and expansion within organizations. That go-to-market strategy reduces sales expenses, allowing the company to focus on product quality and customer service to a greater degree than other vendors.
Thanks to that advantage, Atlassian has developed a portfolio of simple yet powerful software with utility across a broad range of workflows, and that has inspired strong demand. Over the past year, Atlassian grew its customer base 18%, and the average cloud customer spent 30% more. In turn, revenue rose 34% to $2.8 billion and the company generated FCF of $809 million. That equates to a solid FCF margin of 28.9%.
Turning to the future, investors have good reason to believe Atlassian can maintain its growth trajectory. Last year the company discontinued the sale of perpetual software licenses as part of its push toward cloud subscriptions. That transition should ultimately lead to more regular revenue growth, which means greater sales visibility for management.
More broadly, Atlassian puts its market opportunity at $29 billion, but that figure is growing at 14% annually. And with shares trading at 18.2 times sales -- a discount to the three-year average of 29.3 times sales -- this growth stock looks like a smart long-term investment.
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian 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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For instance, Datadog (NASDAQ: DDOG) and Atlassian (NASDAQ: TEAM) are down 58% and 56%, respectively. Datadog offers over 500 prebuilt integrations that simplify customer adoption, and its platform leans on artificial intelligence (AI) to surface proactive alerts, identify performance problems, and automate root cause analysis. Its best known products -- Jira for project management and issue tracking, and Confluence for content organization and information sharing -- have become the gold standards in their respective end markets.
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For instance, Datadog (NASDAQ: DDOG) and Atlassian (NASDAQ: TEAM) are down 58% and 56%, respectively. Datadog: The leader in application performance monitoring Datadog specializes in observability and security. For instance, research company Gartner named Datadog a leader in application performance monitoring in June, and G2 Grid recently recognized Datadog as a leader in cloud infrastructure monitoring, log monitoring, and database monitoring.
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For instance, Datadog (NASDAQ: DDOG) and Atlassian (NASDAQ: TEAM) are down 58% and 56%, respectively. For instance, research company Gartner named Datadog a leader in application performance monitoring in June, and G2 Grid recently recognized Datadog as a leader in cloud infrastructure monitoring, log monitoring, and database monitoring. Atlassian: The gold standard in project management software Atlassian specializes in team collaboration and productivity software.
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For instance, Datadog (NASDAQ: DDOG) and Atlassian (NASDAQ: TEAM) are down 58% and 56%, respectively. Atlassian: The gold standard in project management software Atlassian specializes in team collaboration and productivity software. Over the past year, Atlassian grew its customer base 18%, and the average cloud customer spent 30% more.
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65e0ccde-34bd-4aa0-9bf8-24ea2b9f1faa
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718499.0
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2022-10-21 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-5
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $82.15, marking a -0.23% move from the previous day. This change lagged the S&P 500's 2.37% gain on the day. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 7.94% over the past month, lagging the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Datadog will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. On that day, Datadog is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.61 million, up 52.54% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. These results would represent year-over-year changes of +62.5% and +57.75%, respectively.
Investors might also notice 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.14% lower. 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 105.29 right now. Its industry sports an average Forward P/E of 42.08, so we one might conclude that Datadog is trading at a premium comparatively.
It is also worth noting that DDOG currently has a PEG ratio of 2.49. 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 2.07 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 71, which puts it in the top 29% 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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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 $82.15, marking a -0.23% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. It is also worth noting that DDOG currently has a PEG ratio of 2.49.
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In the latest trading session, Datadog (DDOG) closed at $82.15, marking a -0.23% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. It is also worth noting that DDOG currently has a PEG ratio of 2.49.
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In the latest trading session, Datadog (DDOG) closed at $82.15, marking a -0.23% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. It is also worth noting that DDOG currently has a PEG ratio of 2.49.
|
In the latest trading session, Datadog (DDOG) closed at $82.15, marking a -0.23% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. It is also worth noting that DDOG currently has a PEG ratio of 2.49.
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6ef0db6d-4831-486a-9f26-3ea3696cef7b
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