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718600.0
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2022-07-06 00:00:00 UTC
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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-stock-sinks-as-market-gains%3A-what-you-should-know-1
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $108.03, marking a -0.32% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 0.3% in the past month. In that same time, the Computer and Technology sector lost 6.98%, while the S&P 500 lost 6.59%.
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 $0.15 per share. This would mark year-over-year growth of 66.67%. Meanwhile, our latest consensus estimate is calling for revenue of $378.37 million, up 62.01% from the prior-year quarter.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. These results would represent year-over-year changes of +50% and +56.8%, respectively.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 150.01 right now. This represents a premium compared to its industry's average Forward P/E of 45.23.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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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.
The views and 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 $108.03, marking a -0.32% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report In the latest trading session, Datadog (DDOG) closed at $108.03, marking a -0.32% move from the previous day.
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In the latest trading session, Datadog (DDOG) closed at $108.03, marking a -0.32% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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In the latest trading session, Datadog (DDOG) closed at $108.03, marking a -0.32% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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65bb8d5c-65ab-4190-b514-723fca80ebbb
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718601.0
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2022-07-05 00:00:00 UTC
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Why MongoDB, CrowdStrike, and Datadog Are Rocketing Higher on a Down Day for the Markets
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DDOG
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https://www.nasdaq.com/articles/why-mongodb-crowdstrike-and-datadog-are-rocketing-higher-on-a-down-day-for-the-markets
|
nan
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nan
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What happened
Shares of MongoDB (NASDAQ: MDB), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) were rising strongly on Tuesday, up 9.8%, 2%, and 5.1%, respectively, as of 12:48 p.m. ET. The gains came even as the broader market indexes fell on the back of recession fears.
There wasn't any material company-specific news out of these companies today. Ironically, those very recession fears may actually be helping these types of tech growth stocks at the moment.
So what
Ever since the Federal Reserve hiked the Federal Funds Rate by 75 basis points on June 15, the markets appear to have switched from being worried about inflation to worried about a recession.
Why would recession fears be a good thing for these stocks? A couple of reasons. First, as recession fears have bubbled to the surface, the yield on long-term Treasury Bonds has fallen from decade-long highs reached in June. The 10-year Treasury bond yield fell again today to below 2.8%, down 20% from its June 14 highs. Oil prices, which have been a key component of inflation, are also down big, below $100 per barrel for the first time since late April and early May.
Lower long-term yields are generally good for growth stocks that have much of their profits well out into the future. That's because those future profits are discounted by a lower amount, increasing their value, all else being equal.
Meanwhile, the revenue trajectory for these enterprise software-as-a-service (SaaS) companies is likely to hold up much better in a soft economy than more cyclical companies. Within software-as-a-service, these three names are also showing market leadership, high adoption, and very high growth rates.
MongoDB is fast becoming the preferred go-to provider of modern document-style databases, which organize data in a much more flexible way than the traditional row-and-column format of SQL databases. Cybersecurity is also top of mind for every company and government worldwide, especially on news of a massive hack out of China this past weekend, in which the information of 1 billion Chinese citizens appeared for purchase on the dark web. These concerns should benefit CrowdStrike for years to come, as its cloud and artificial intelligence (AI)-based threat detection system is gaining leadership as the new up-and-coming cybersecurity model.
Also related to security, cloud observability company Datadog is growing the fastest out of these three names, with 83% revenue growth last quarter, and even posting a net profit according to generally accepted accounting principles (GAAP) -- albeit a small one. Datadog's observability platform allows companies to monitor, assess, and quickly fix any performance or security problems across their information technology systems and software applications.
The point is, the long-term growth of these names is not really in question today, but rather their valuations. MongoDB and Datadog are down nearly 50% this year, which is likely why they are up strongly today as yields have come down. CrowdStrike is only down 12.5%, as cybersecurity seems to be viewed more favorably, even in a higher-rate environment.
MDB PS Ratio data by YCharts
Now what
While long-term investors tend to focus on company quality and long-term growth, this year's stock market moves have been all about inflation, interest rates, and the broader macroeconomic picture. However, over the long run, the outcome of these three high-quality names won't be determined by Federal Reserve Chair Jerome Powell, but rather their respective competitive advantages, management capital allocation, and growth and profits.
One lingering concern I have with these three names is their valuation, even as rates come down. Although each has a very strong outlook, all three still trade at high price-to-sales ratios by historical standards, ranging between 20 and 29. That doesn't leave much margin of safety at these prices.
So, while these stocks may find a floor soon, it is still going to take a while for them to grow into these valuations. Therefore, this group of software disruptors is only appropriate for younger investors with a very long time horizon, or the high-growth portion of a diversified portfolio.
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Billy Duberstein has the following options: short January 2023 $60 puts on CrowdStrike Holdings, Inc. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc., 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 MongoDB (NASDAQ: MDB), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) were rising strongly on Tuesday, up 9.8%, 2%, and 5.1%, respectively, as of 12:48 p.m. Cybersecurity is also top of mind for every company and government worldwide, especially on news of a massive hack out of China this past weekend, in which the information of 1 billion Chinese citizens appeared for purchase on the dark web. Also related to security, cloud observability company Datadog is growing the fastest out of these three names, with 83% revenue growth last quarter, and even posting a net profit according to generally accepted accounting principles (GAAP) -- albeit a small one.
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What happened Shares of MongoDB (NASDAQ: MDB), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) were rising strongly on Tuesday, up 9.8%, 2%, and 5.1%, respectively, as of 12:48 p.m. Lower long-term yields are generally good for growth stocks that have much of their profits well out into the future. Also related to security, cloud observability company Datadog is growing the fastest out of these three names, with 83% revenue growth last quarter, and even posting a net profit according to generally accepted accounting principles (GAAP) -- albeit a small one.
|
What happened Shares of MongoDB (NASDAQ: MDB), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) were rising strongly on Tuesday, up 9.8%, 2%, and 5.1%, respectively, as of 12:48 p.m. Also related to security, cloud observability company Datadog is growing the fastest out of these three names, with 83% revenue growth last quarter, and even posting a net profit according to generally accepted accounting principles (GAAP) -- albeit a small one. MDB PS Ratio data by YCharts Now what While long-term investors tend to focus on company quality and long-term growth, this year's stock market moves have been all about inflation, interest rates, and the broader macroeconomic picture.
|
What happened Shares of MongoDB (NASDAQ: MDB), CrowdStrike Holdings (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) were rising strongly on Tuesday, up 9.8%, 2%, and 5.1%, respectively, as of 12:48 p.m. There wasn't any material company-specific news out of these companies today. Lower long-term yields are generally good for growth stocks that have much of their profits well out into the future.
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54adbc5e-2568-448b-864f-36f015d45423
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718602.0
|
2022-07-05 00:00:00 UTC
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Nasdaq 100 Movers: ASML, MRNA
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-asml-mrna
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nan
|
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 3.3%. Year to date, Moderna Inc has lost about 39.0% of its value.
And the worst performing Nasdaq 100 component thus far on the day is ASML Holding, trading down 6.0%. ASML Holding is lower by about 46.9% looking at the year to date performance.
Two other components making moves today are Booking Holdings, trading down 4.2%, and Datadog, trading up 2.1% on the day.
VIDEO: Nasdaq 100 Movers: ASML, 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 ASML Holding, trading down 6.0%. ASML Holding is lower by about 46.9% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ASML, 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 3.3%. Year to date, Moderna Inc has lost about 39.0% of its value. And the worst performing Nasdaq 100 component thus far on the day is ASML Holding, trading down 6.0%.
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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 3.3%. And the worst performing Nasdaq 100 component thus far on the day is ASML Holding, trading down 6.0%. Two other components making moves today are Booking Holdings, trading down 4.2%, and Datadog, trading up 2.1% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is ASML Holding, trading down 6.0%. ASML Holding is lower by about 46.9% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ASML, 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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ba2dcc10-0979-4677-a41b-bfb0c1939ddf
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718603.0
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2022-07-04 00:00:00 UTC
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Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?
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DDOG
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https://www.nasdaq.com/articles/should-jpmorgan-betabuilders-u.s.-mid-cap-equity-etf-bbmc-be-on-your-investing-radar-2
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nan
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nan
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Launched on 04/14/2020, the JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $1.38 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.07%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.27%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB).
The top 10 holdings account for about 7.4% of total assets under management.
Performance and Risk
BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.
The ETF has lost about -22.73% so far this year and is down about -20.71% in the last one year (as of 07/04/2022). In the past 52-week period, it has traded between $67.68 and $97.36.
The ETF has a beta of 1.02 and standard deviation of 23.70% for the trailing three-year period. With about 595 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BBMC is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $46.92 billion in assets, iShares Core S&P MidCap ETF has $56.45 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC): ETF Research Reports
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
iShares Core S&P MidCap ETF (IJH): ETF Research Reports
Vanguard MidCap ETF (VO): ETF Research Reports
MongoDB, Inc. (MDB): 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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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report It has amassed assets over $1.38 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF (BBMC) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF (BBMC) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
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8f9df51f-d9d3-43fe-88d7-c218b7b59468
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718604.0
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2022-07-01 00:00:00 UTC
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Snowflake, Datadog or MongoDB: Which Big Data Stock Is a Better Buy?
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DDOG
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https://www.nasdaq.com/articles/snowflake-datadog-or-mongodb%3A-which-big-data-stock-is-a-better-buy
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nan
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nan
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Speculative technology stocks have been crushed over the past year, with even the most exciting hyper-growth stocks now down more than 50% from their highs. As the rate-fueled selling pressure on speculative, unprofitable growth companies continues into the second half, dip-buyers could continue to take a beating.
Though many fallen tech stocks will probably never see their highs again, various high-tech firms are more than capable of recovering. Not all hyper-growth companies are built the same. Some have what it takes to grow through a recession while making efforts towards improving profitability prospects.
In this piece, we used TipRanks' Comparison Tool to look at three innovative big-data companies that Wall Street is bullish on.
Snowflake (SNOW)
Snowflake is a data-lake and data-warehousing company that continues to receive upgrades despite the recent barrage of negative momentum. The stock lost around 74% of its value from peak to trough before upbeat analysts sent shares rallying towards $150 per share.
Amid the latest round of selling, Snowflake stock is back on the descent, now near the $144 mark on virtually no news. Though the stock has the propensity to amplify moves made by the broader Nasdaq 100, it's worth noting that the firm continues to enhance its offerings.
CIOs love Snowflake and expect to spend an increasing amount of corporate IT budgets on usage over time. That's a testament to how great Snowflake's technologies really are.
JPMorgan went as far as to say that Snowflake is in "elite territory." Just how elite? Perhaps Snowflake could weather the coming economic snowstorm far better than other firms in the enterprise.
Looking ahead, Snowflake is looking to make a big splash in the realm of cybersecurity, with a new workload capable of discovering potential threats across massive datasets. Snowflake's cybersecurity workload is very intriguing and could give it an edge over its top rival Databricks.
At over 32 times sales, Snowflake stock remains incredibly expensive. However, margin trends are encouraging, as is the firm's trajectory of cash flows. As one of few firms that can maintain hyper-growth while improving profitability prospects, Snowflake is likely more than worthy of such a pie-in-the-sky multiple.
Wall Street is incredibly bullish based on 23 Buys, five Holds, and one Sell rating assigned in the past three months - giving it a Strong Buy rating. The average Snowflake price target of $193.72, implying 34% upside potential.
Datadog (DDOG)
Datadog is another big-data company helping businesses unlock the full power of their datasets. The firm's real-time data-monitoring platform helps make it convenient for corporations to generate insightful analyses across the entire stack. Though coming macroeconomic headwinds could weigh on growth, I think such a potential growth slip is more of a road bump than a sustained slowdown in Datadog's growth engine.
It's not just data monitoring and analysis where Datadog can shine. The company also looks to be building a nice ecosystem across other market verticals. Like Snowflake, Datadog is hungry to make strides in the security space. More recently, the firm launched Audit Trail, its compliance and governance offering that could be a hot seller among existing customers.
Datadog is a magnificent player in the niche market of FSMA (full-stack monitoring and analysis). Though the firm is relatively small ($31.8 billion market cap), with deep-pocketed rivals, it's hardly an underdog (forgive the pun), as IT spending continues to stay robust at the hands of the long-term digital transformation.
At 26.6 times sales, DDOG stock is not cheap. However, in this market, you've still got to pay up for premium growth.
Wall Street is standing by the stock, with a Strong Buy rating based on 18 Buys and two Holds. The average Datadog price target of $165.11 implies 63.4% upside.
MongoDB (MDB)
MongoDB is another expensive big-data play that may not be as pricey as it seems, given its high-quality growth prospects and ability to push into profitability in the future.
The scalable general-purpose database company trades at about 19 times sales. Analysts have slowly lowered the bar on their price targets in recent weeks, yet the stock continues to be viewed in a positive light by the analyst community. At writing, shares are down more than 55% from their highs.
Despite the cutting-edge innovations, investors have soured on the $18.3 billion company, as it's still putting its foot to the gas to spark maximum sales growth, even at the cost of steeper losses over the medium term.
MongoDB is well on its way to taking share in the database scene. However, it still has a long way to go if it's to challenge the incumbents in the enterprise database scene.
In early June, MongoDB flexed its muscles at its world conference. Many were impressed by the innovations, which could help take the firm's growth to the next level. MongoDB still has its disruptor hat on, but with minimal evidence of a sustained profitability push on the horizon, investors could sour on the stock for longer.
Wall Street is bullish on the name, with the average MongoDB price target of $377.00 implying 40.1% upside potential. In the past three months, there were 14 Buys, three Holds, and one Sell rating assigned, giving the stock a Moderate Buy consensus rating.
Conclusion
Big data stocks have taken a beating of late, but analysts are bullish on these particular companies. Currently, analysts seem most optimistic about Datadog.
Though price target downgrades could continue flowing in, I think the following three big-data plays will rise again, perhaps faster than most other hyper-growth disruptors that have seen their share prices obliterated.
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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Datadog (DDOG) Datadog is another big-data company helping businesses unlock the full power of their datasets. At 26.6 times sales, DDOG stock is not cheap. Looking ahead, Snowflake is looking to make a big splash in the realm of cybersecurity, with a new workload capable of discovering potential threats across massive datasets.
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Datadog (DDOG) Datadog is another big-data company helping businesses unlock the full power of their datasets. At 26.6 times sales, DDOG stock is not cheap. Wall Street is incredibly bullish based on 23 Buys, five Holds, and one Sell rating assigned in the past three months - giving it a Strong Buy rating.
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Datadog (DDOG) Datadog is another big-data company helping businesses unlock the full power of their datasets. At 26.6 times sales, DDOG stock is not cheap. Snowflake (SNOW) Snowflake is a data-lake and data-warehousing company that continues to receive upgrades despite the recent barrage of negative momentum.
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Datadog (DDOG) Datadog is another big-data company helping businesses unlock the full power of their datasets. At 26.6 times sales, DDOG stock is not cheap. Speculative technology stocks have been crushed over the past year, with even the most exciting hyper-growth stocks now down more than 50% from their highs.
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e2be0829-ce92-4c0f-a3df-7f32e6398e52
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718605.0
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2022-07-01 00:00:00 UTC
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Nasdaq 100 Movers: LRCX, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-lrcx-ddog
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nan
|
nan
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In early trading on Friday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Datadog has lost about 44.1% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Lam Research, trading down 4.8%. Lam Research is lower by about 43.6% looking at the year to date performance.
Two other components making moves today are ASML Holding, trading down 4.2%, and Pinduoduo, trading up 4.3% on the day.
VIDEO: Nasdaq 100 Movers: LRCX, 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: LRCX, 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 Lam Research, trading down 4.8%. Lam Research is lower by about 43.6% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: LRCX, 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 Friday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. Year to date, Datadog has lost about 44.1% of its value.
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VIDEO: Nasdaq 100 Movers: LRCX, 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 Friday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.6%. And the worst performing Nasdaq 100 component thus far on the day is Lam Research, trading down 4.8%.
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VIDEO: Nasdaq 100 Movers: LRCX, 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 Lam Research, trading down 4.8%. Lam Research is lower by about 43.6% looking at the year to date performance.
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ddceb3dd-215a-4c85-82bb-02a7c8bd88af
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718606.0
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2022-07-01 00:00:00 UTC
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First Week of August 12th Options Trading For Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/first-week-of-august-12th-options-trading-for-datadog-ddog
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Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 12th contracts and identified one put and one call contract of particular interest.
The put contract at the $95.00 strike price has a current bid of $8.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $95.00, but will also collect the premium, putting the cost basis of the shares at $86.05 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $98.74/share today.
Because the $95.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 61%. 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 9.42% return on the cash commitment, or 81.87% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Datadog Inc, and highlighting in green where the $95.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $100.00 strike price has a current bid of $10.70. If an investor was to purchase shares of DDOG stock at the current price level of $98.74/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $100.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.11% if the stock gets called away at the August 12th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red:
Considering the fact that the $100.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. 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 10.84% boost of extra return to the investor, or 94.17% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 89%, while the implied volatility in the call contract example is 93%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $98.74) to be 69%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 12th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 12th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 12th 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 August 12th contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $100.00 strike highlighted in red: Considering the fact that the $100.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 12th expiration.
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f3b1a5b4-14fa-4824-9f17-6314e0f5b8aa
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718607.0
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2022-07-01 00:00:00 UTC
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Beyond Stock Splits: 3 Top Growth Stocks to Buy Now
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DDOG
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https://www.nasdaq.com/articles/beyond-stock-splits%3A-3-top-growth-stocks-to-buy-now-1
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nan
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nan
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Stock splits have been getting a lot of attention lately, with several notable companies initiating actions to increase their share counts significantly without changing their valuations. For instance, Amazon finalized a 20-for-1 stock split on June 6 while Shopify finalized a 10-for-1 split on June 29. Alphabet will initiate its 20-for-1 stock split on July 15.
What investors need to remember is that stock splits do not intrinsically change the business. A split only breaks one share into a higher multiple with the split shares together equaling in value the formerly single share. The company's market cap and other financial metrics are adjusted to remain the same or are unaffected.
This suggests that looking at a company's fundamentals is going to be a lot more useful when making investment decisions about it. It's the fundamentals of these three stocks -- MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Doximity (NYSE: DOCS). -- that make them shine. Forget stock splits and pay attention to the potential these growth stocks offer long-term investors.
1. MercadoLibre
E-commerce and digital payments are now commonplace in the U.S., but in Latin America, their adoption is still relatively low. According to Fidelity International, there was just 9% e-commerce penetration in Latin America in 2021. But that figure is expected to nearly double by 2025, setting MercadoLibre up to thrive over the long term.
MercadoLibre is a dominant player in the e-commerce market in Latin America with over 30% share, according to Bloomberg. It's also a leader in the digital payments and logistics industries. Mercado Pago, its digital payments arm, had almost 36 million active users who transacted a total of $25.3 billion in the first quarter of 2022. Its logistics arm was also running smoothly in Q1: It delivered 254 million products, 54% of those being either same-day or next-day deliveries.
This prominence allowed total revenue to soar 63% year over year to $2.25 billion, while net income reached $65 million in Q1. Considering the adoption of digital trends like e-commerce, it's not unreasonable to think MercadoLibre could continue to see heightened growth as it capitalizes on this opportunity. Additionally, MercadoLibre only had 12.4% of the Latin American population as users in Q1, leaving plenty of room for MercadoLibre to expand over the long term.
At 4.2 times sales, MercadoLibre stock is trading at its lowest valuation since 2009, which makes shares look appealing today. Considering its scale in this fast-growing industry, you might want to buy some shares of MercadoLibre.
2. Datadog
Datadog stock is not as cheap as MercadoLibre, but at 26 times sales, it is trading at its lowest valuation since early 2020. However, this company still looks appealing given its potential.
Datadog dominates the cloud performance observability market, according to Gartner's Magic Quadrant, allowing businesses to monitor cloud infrastructure performance and security. It also has other tools that ensure cloud applications are satisfying consumers, and this wide-reaching suite of over 26 tools is likely why Datadog is the primary player.
As the top dog, the company has seen immense expansion. Datadog's revenue jumped 83% year over year in Q1 to $363 million, driven by the 2,250 customers spending over $100,000 annually.
The main risk for Datadog is competitive pressure from companies like Dynatrace. If it stops bringing new products and upgrades to consumers, Datadog could fall by the wayside. However, the company has a history of innovation, and with $336 million in trailing-12-month free cash flow, it has the available funds to maintain this trend. That is why this top dog looks so appealing right now.
3. Doximity
Doximity has a networking platform that allows healthcare professionals to communicate with other professionals or patients, manage their careers, and learn about current and upcoming medical research and practices. Importantly, Doximity's scale is second to none: 80% of U.S. physicians use Doximity.
This has led to incredible growth for the company. In its 2022 fiscal year (ended March 31, 2022) revenue soared 66% year over year to $343.5 million. The company is expecting another 33% year-over-year increase in its 2023 fiscal year.
A potential concern is Doximity's saturation. After all, how much more can the company mature if it already has 80% of U.S. physicians using it? There's more potential, however, than meets the eye. Doximity has 90% of graduating medical students using the platform, but there are always new graduates coming into the profession each year to market to as well. Second, the company makes money primarily from advertising by pharmaceutical manufacturers and healthcare companies. On this front, Doximity believes it has less than 5% of marketing budgets, leaving plenty of room to keep increasing its top line.
Doximity has a strong grip on the space, and its network effects could keep it that way for a long time. Additionally, the company generated $155 million in net income and $121 million in free cash flow in fiscal 2022. This cash could allow it to invest in maintaining its leadership position.
Shares are valued highly at 54 times earnings, but this is understandable given the company's prominent position in the industry and its profitability. They might be expensive, but shares look worthy of buying today.
10 stocks we like better than MercadoLibre
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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. Jamie Louko has positions in Amazon, Datadog, MercadoLibre, and Shopify. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Datadog, Doximity, Inc., MercadoLibre, and Shopify. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's the fundamentals of these three stocks -- MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Doximity (NYSE: DOCS). Stock splits have been getting a lot of attention lately, with several notable companies initiating actions to increase their share counts significantly without changing their valuations. Mercado Pago, its digital payments arm, had almost 36 million active users who transacted a total of $25.3 billion in the first quarter of 2022.
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It's the fundamentals of these three stocks -- MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Doximity (NYSE: DOCS). This prominence allowed total revenue to soar 63% year over year to $2.25 billion, while net income reached $65 million in Q1. At 4.2 times sales, MercadoLibre stock is trading at its lowest valuation since 2009, which makes shares look appealing today.
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It's the fundamentals of these three stocks -- MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Doximity (NYSE: DOCS). At 4.2 times sales, MercadoLibre stock is trading at its lowest valuation since 2009, which makes shares look appealing today. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Datadog, Doximity, Inc., MercadoLibre, and Shopify.
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It's the fundamentals of these three stocks -- MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Doximity (NYSE: DOCS). Forget stock splits and pay attention to the potential these growth stocks offer long-term investors. Importantly, Doximity's scale is second to none: 80% of U.S. physicians use Doximity.
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22ff544d-4705-4492-a1cf-a2dbf5500fa0
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718608.0
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2022-06-30 00:00:00 UTC
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3 Remarkable Growth Stocks That Could Lead the Market Recovery in the Second Half of 2022
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DDOG
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https://www.nasdaq.com/articles/3-remarkable-growth-stocks-that-could-lead-the-market-recovery-in-the-second-half-of-2022
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Thus far, 2022 has been a tough one for investors. Both the S&P 500 and the Nasdaq Composite have fallen into bear market territory, giving this year the dubious distinction of having the market's worst first half in more than half a century.
The indiscriminate selling has hit both good stocks and bad, with many market darlings falling on hard times, resulting in double-digit declines. On the bright side, however, this presents investors with the rare opportunity to buy remarkable growth stocks at a significant discount.
Let's look at three stocks that could lead the market rebound in the back half of 2022.
The database of the future -- and the future is now
Long gone are the days when information could fit neatly in the rows and columns of legacy databases. These days, data is messy and includes photos, social media posts, video and audio clips, and even full documents, requiring a revolutionary solution to store, organize, and analyze this eclectic mix of information. Enter MongoDB (NASDAQ: MDB). The company's cloud-centric database was built to address the needs of modern data while providing the robust search capability of its predecessors.
For the fiscal 2023 first quarter (ended April 30), MongoDB's revenue grew 57% year over year, accelerating from 56% in the fourth quarter. The company's flagship product -- Atlas -- continues to shine, as revenue grew 85%. Atlas now accounts for 58% of MongoDB's total revenue while surpassing $1 billion in ARR. It's worth noting that while MongoDB isn't yet profitable, the company consistently generates strong operating and free cash flow, which suggests that its losses are the result of non-cash items, including depreciation.
The company continues to attract new converts, as its total customer base grew 31% year over year, while Atlas users increased 33%. More importantly, customers generating ARR of $100,000 or more jumped 30%, highlighting a stable and growing foundation that will feed its future results.
In spite of its impressive results, MongoDB's stock has fallen on hard times, down 56% off its November high -- but here's the thing: Data will only get messier from here, and MongoDB's state-of-the-art solution should help the company lead the recovery.
The next generation of television
Not many disrupters could boast that they took on Amazon and won, but that's exactly the case with Roku (NASDAQ: ROKU). The company's namesake streaming device surpassed Amazon's Fire TV user base in 2020 and never looked back. This was helped along by the Roku OS, its connected-TV operating system, used by a growing number of television manufacturers.
With more than 10,000 streaming channels on its service-agnostic platform, Roku has attracted more than 61 million viewing households, which watched 20.9 billion hours of streaming video in the first quarter. This fuels the revenue the company receives from the digital advertising shown on its platform, of which Roku gets a cool 30% cut. This represents a large and growing opportunity for Roku as streaming accounts for 45% of all television viewing but only 18% of advertising budgets. As the shift of marketing dollars continues to accelerate, Roku is well positioned to benefit.
On the back of difficult pandemic-related comps, Roku's revenue growth has slowed, up just 22% year over year -- but that's on top of 79% growth in the prior-year quarter. As comps normalize in the second half of the year, a clearer picture will emerge. The company's average revenue per user (ARPU) provides some clarity, climbing 34% year over year, which suggests that growth is ongoing.
Supply chain disruptions and inflation have temporarily crimped Roku's profit, erecting a wall of worry regarding its near-term prospects and driving Roku's stock down 83% off its recent high. But the secular shift to streaming video will only gain steam from here, and any hint of a recovery will send Roku stock off to the races.
Identifying issues before they become critical
Fueled by the digital transformation, more companies than ever before rely on web traffic, data centers, and cloud computing. While these technologies are a key component of business growth these days, downtime can be costly. Datadog's (NASDAQ: DDOG) software-as-a-service (SaaS) platform monitors critical systems, notifying the user of a problem that could result in downtime. Further, it provides feedback and analytics that diagnose the issue to keep it from recurring.
Even as some businesses are experiencing slowing growth, Datadog has bucked that trend with first-quarter revenue that accelerated, up 83% year over year. And, unlike many early-stage companies, Datadog is profitable while also generating strong operating and free cash flow.
The company's growing client base fueled the results, as its total customer count of 19,800 grew 30% year over year, while those generating annual recurring revenue (ARR) of $100,000 or more surged 60%. Finally, its dollar-based net retention rate topped 130% for the 19th consecutive quarter.
Did I mention that in spite of its stellar growth, the stock has lost more than half its value? Given its remarkable performance, however, Datadog is sure to lead the way in the upcoming market recovery.
10 stocks we like better than MongoDB
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 MongoDB 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 June 2, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Datadog, MongoDB, and Roku. The Motley Fool has positions in and recommends Amazon, Datadog, MongoDB, and Roku. 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-as-a-service (SaaS) platform monitors critical systems, notifying the user of a problem that could result in downtime. These days, data is messy and includes photos, social media posts, video and audio clips, and even full documents, requiring a revolutionary solution to store, organize, and analyze this eclectic mix of information. It's worth noting that while MongoDB isn't yet profitable, the company consistently generates strong operating and free cash flow, which suggests that its losses are the result of non-cash items, including depreciation.
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Datadog's (NASDAQ: DDOG) software-as-a-service (SaaS) platform monitors critical systems, notifying the user of a problem that could result in downtime. It's worth noting that while MongoDB isn't yet profitable, the company consistently generates strong operating and free cash flow, which suggests that its losses are the result of non-cash items, including depreciation. The company continues to attract new converts, as its total customer base grew 31% year over year, while Atlas users increased 33%.
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Datadog's (NASDAQ: DDOG) software-as-a-service (SaaS) platform monitors critical systems, notifying the user of a problem that could result in downtime. In spite of its impressive results, MongoDB's stock has fallen on hard times, down 56% off its November high -- but here's the thing: Data will only get messier from here, and MongoDB's state-of-the-art solution should help the company lead the recovery. On the back of difficult pandemic-related comps, Roku's revenue growth has slowed, up just 22% year over year -- but that's on top of 79% growth in the prior-year quarter.
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Datadog's (NASDAQ: DDOG) software-as-a-service (SaaS) platform monitors critical systems, notifying the user of a problem that could result in downtime. Let's look at three stocks that could lead the market rebound in the back half of 2022. The next generation of television Not many disrupters could boast that they took on Amazon and won, but that's exactly the case with Roku (NASDAQ: ROKU).
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718609.0
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2022-06-29 00:00:00 UTC
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Datadog (DDOG) Gains As Market Dips: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know-3
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Datadog (DDOG) closed at $98.37 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 2.02% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 7.99%.
Datadog will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.15, up 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $378.37 million, up 62.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $1.61 billion, which would represent changes of +50% and +56.8%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.17% higher. 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 134.7 right now. For comparison, its industry has an average Forward P/E of 42.41, which means Datadog is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) closed at $98.37 in the latest trading session, marking a +1.08% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report Coming into today, shares of the data analytics and cloud monitoring company had gained 2.02% in the past month.
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Datadog (DDOG) closed at $98.37 in the latest trading session, marking a +1.08% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $1.61 billion, which would represent changes of +50% and +56.8%, respectively, from the prior year.
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Datadog (DDOG) closed at $98.37 in the latest trading session, marking a +1.08% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.
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Datadog (DDOG) closed at $98.37 in the latest trading session, marking a +1.08% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
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578c4287-202b-4370-aef0-4643aa4700a9
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718610.0
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2022-06-29 00:00:00 UTC
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Nasdaq 100 Movers: AMD, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-amd-ddog
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nan
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In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%. Year to date, Datadog has lost about 43.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Advanced Micro Devices, trading down 3.6%. Advanced Micro Devices is lower by about 45.9% looking at the year to date performance.
Two other components making moves today are NVIDIA, trading down 3.4%, and Meta Platforms, trading up 2.4% on the day.
VIDEO: Nasdaq 100 Movers: AMD, 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: AMD, 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 Advanced Micro Devices, trading down 3.6%. Advanced Micro Devices is lower by about 45.9% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: AMD, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%. And the worst performing Nasdaq 100 component thus far on the day is Advanced Micro Devices, trading down 3.6%.
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VIDEO: Nasdaq 100 Movers: AMD, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.7%. And the worst performing Nasdaq 100 component thus far on the day is Advanced Micro Devices, trading down 3.6%.
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VIDEO: Nasdaq 100 Movers: AMD, 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 Advanced Micro Devices, trading down 3.6%. Advanced Micro Devices is lower by about 45.9% looking at the year to date performance.
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718611.0
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2022-06-28 00:00:00 UTC
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7 Growth Stocks to Buy for a Rich Retirement
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DDOG
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https://www.nasdaq.com/articles/7-growth-stocks-to-buy-for-a-rich-retirement
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Another market downturn is upon us, threatening to disrupt individual investment and retirement portfolios — and financial lives. However, as is usually the case, bear markets come and go, and economies and markets recover to print new record highs. As the market benchmark, the S&P 500 index, fell more than 20% year-to-date and into a technical bear market, now could be one of the best times to check out beaten-down growth stocks to buy for a rich retirement in the long term.
Honestly, the irritating and depressing losses in your stock portfolios hurt emotionally, but they remain just paper or electronic losses — unless you sell. History tells us to remain faithful and invested in the stock market during such tumultuous times. Actually, for someone building a retirement nest egg, new contributions deployed during market downturns may produce better capital growth and better dividend-adjusted returns than the capital invested at all-time highs in 2021.
In his letter to Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) shareholders back in 1990, investing legend Warren Buffett wrote that “the most common cause of low prices is pessimism — some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.”
Pessimism and fear have grown in abundance in the U.S. stock market this year. Some growth stocks with very high capital gains potential lie beaten down today. Growth names have been substantially punished. The iShares Russell 1000 Growth ETF (NYSEARCA:IWF) is down more than 25% year-to-date. However, some of the beaten-down growth stocks do have very solid fundamentals. They have a higher capacity to survive any prolonged economic downturn and emerge much stronger businesses once the troubles of this low sentiment season are over.
If the U.S. manages to avoid a recession this year (by chance) or the economy bounces back from one relatively quickly, the growth stocks on my top-buy list could report above-average earnings growth rates and make investors enjoy a richer retirement over the next decade. Perhaps it’s time to start getting greedy while everyone else is getting fearful.
7 Butchered Tech Stocks to Buy and Hold
Let’s have a closer look at my current favorite growth stocks to buy for a richer retirement.
SLDP Solid Power $6.35
AMD AMD $87.17
RBLX Roblox $34.64
ADSK Autodesk $188.20
DDOG Datadog $107.55
DOCN DigitalOcean Holdings $47.63
NVDA Nvidia $170.66
Solid Power (SLDP)
Source: T. Schneider / Shutterstock.com
Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Solid Power is one of the electric vehicle (EV) battery stocks that retain the element of surprise and could disrupt a fast-growing $560 billion global EV battery market. It kickstarted a pilot production line recently and could be a favorite candidate to fit the next-gen breakthrough battery tech in a road-driven car ahead of popular favorite QuantumScape (NYSE:QS).
Solid Power stands to gain market traction if its pilot production project registers success. The company made a significant step toward producing its first EV battery to deliver to partners after the installation of a pilot production line. In a March update, all required equipment for the larger 100 amp-hour battery production line has been delivered — management claims.
The company believes its battery design won’t require re-tooling and redesigns of existing battery manufacturing plants (as opposed to QuantumScape’s design). Thus, once proven successful, the company’s battery design could be licensed to any of the battery manufacturing giants leading the global lithium-ion battery market today.
SLDP stock stands to rally if the company were to scale-up operations quickly and grow sales at a fast clip within the next two or three years. The company won’t need the significantly dilutive capitalization to build new factories as its most popular competitor currently does.
The lithium-ion battery market may get disrupted soon, and the era of new solid-state battery technology with higher power density, fast charging capacity and cheaper battery packs with low fire hazards is on the horizon. Solid Power could be a growth stock to buy for its potentially high upside over the long term if it leads in the new transformative mobility-enhancing solution.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) is a semiconductor chip designer that has executed a growth strategy well over the past decade. The company achieved a 56% compound annual growth rate (CAGR) in revenue from $6.7 billion in 2019 to $16.4 billion in 2021. It significantly expanded its operating profit margins during the three-year period from 9% in 2019 to 22% by 2021. AMD is a promising growth stock to buy after its significant drop so far this year. Shares could be a great performing retirement asset as the company plans to return 40% of free cash flow to shareholders.
In a recent corporate presentation, AMD’s acquisition of Xilinx in 2021 increases the revenue contribution of the high-margin data center and embedded segment in the revenue mix from 25% of total sales to 40%, leading to a non-GAAP margin expansion for 2022. Market worries of a potentially weak PC market are thus drowned as AMD’s total addressable market (TAM) grows to a staggering $300 billion.
AMD stock is down 40% year-to-date as tech sector valuations shrunk in 2022. However, investors who buy AMD stock during the current market correction could lock in hefty returns if the company’s projected 20% per annum growth rate in diversified revenues gets realized over the next three to four years.
7 Retirement Stocks to Buy in Unexpected Sectors
Actually, AMD could be a cheap growth stock to buy right now as shares trade cheaply today. Its low forward price-to-earnings ratio of 19.9 and a very low price-to-earnings growth ratio of 0.5 imply that AMD stock is undervalued relative to its future earnings growth potential.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Online gaming platform provider and videogame publisher Roblox (NYSE:RBLX) is a typical youth-focused growth stock to buy on the dip during the 2022 market decline. Although Roblox stock has declined by 66% so far this year to trade below its IPO price, chances of a strong long-term recovery seem very strong.
According to a recent report, Roblox’s average active users increased by 17% year-over-year to 50.4 million in May, and revenue for the month could be up 30% from comparable numbers last year. Revenue and cash flow are growing in leaps and bounds.
The company may not be profitable today. But it’s generating massive amounts of positive free cash flow every quarter — for five consecutive quarters now. Positive free cash flow cushions the business from the vagaries of trying to borrow or raise new capital during a recession or a period marked by depressed capital market enthusiasm.
Roblox is a growth stock to buy right now for its growing closed garden ecosystem that keeps business within its walls. An in-house game engine, publishing platform, online hosting services, marketplace payment processing and a buzzing social network give the company multiple revenue sources and unparalleled business development insights.
Autodesk (ADSK)
Source: JHVEPhoto / Shutterstock.com
Autodesk (NASDAQ:ADSK) has revolutionized how architectural design, engineering and construction teams go about their work since 1982. The design software company’s growth into media and entertainment in the 1990s opened new growth frontiers, and its visual effects software was used in award-winning productions, including the 2009 film Avatar. Autodesk’s stock price has risen as the business has grown, and there could still be massive growth ahead.
Wall Street sees Autodesk growing its revenue by 14.3% this calendar year and by another 14.2% in the next year, but earnings per share could grow at a faster clip (29.1% for 2022 and 20.5% for 2023). Autodesk reported $1.46 billion free cash flow in 2021, and the company could generate a record $2 billion free cash flow this calendar year according to its management’s latest financial outlook.
Autodesk’s billings may grow at 18% to 21% for fiscal year 2023, which ends in January next year, while revenue grows at 13% to 15% during the period. Hence, the company is winning more subscription customers — a huge source of high quality, recurring earnings and growing cash flow.
Cash flow is the lifeblood of any enterprise, and growing free cash flow could allow Autodesk to reinvest in growing its operations, acquiring new customers and even scooping up good and promising businesses through acquisitions during a down market.
7 REITs to Buy for a Profitable Summer
Autodesk is a good growth stock to buy for its growing earnings, robust and sticky customer base and strong future cash flow generating capacity which opens up new possibilities.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model. Its enterprise software platform could prove mission-critical and attract sticky demand — even in a recession. The company broke into profitability two quarters ago, and Datadog’s revenue and earnings performance could attract more investors back to the high-growth tech stock.
After a 41% decline that saw it print new 52-week lows before recovering somewhat, DDOG stock is back to its 2020 trading levels. However, the company generated more than four times its ($83 million) 2020 free cash flow over the past twelve months ($336 million) and could grow earnings at increasing rates over the next few years.
Datadog’s earnings per share (EPS) are estimated to grow to 74 cents in 2022. Analysts have increased Datadog EPS projections for this year by 45% over the past 90 days. Wall Street sees DDOG profits rising 42% year-over-year in 2023 and projects a strong 48% compound annual earnings growth rate for Datadog over the next five years.
It’s highly likely that DDOG stock could generate significant capital gains in the long term and enable investors to enjoy a rich retirement.
DigitalOcean Holdings (DOCN)
Source: monticello / Shutterstock.com
DigitalOcean Holdings (NYSE:DOCN) is another cloud computing growth stock investors could buy and add to a retirement-focused portfolio today. The company offers on-demand platform tools for developers, start-ups and small and medium businesses — a growing market that usually lacks in-house IT support staff.
Critical to the DigitalOcean business model is its simplified cloud computing interface that users without formal training can practically use to create and develop tools, and the company offers full-time customer and technical support.
The company became free cash flow positive in 2021 after producing $133 million in cash from operations and spending less on capital investments. Wall Street expects DigitalOcean to double its free cash flow to $52 million in 2022 and report another 80% cash flow growth in 2023 as it reports its first positive GAAP EPS next year.
Cash flow growth and its graduation into positive profitability in 2023 could put DOCN stock price on a strong recovery path over the next few years.
7 Bargain Income Stocks to Buy and Hold Forever
Wall Street rates DigitalOcean Holdings stock a strong buy today. The average analyst price target on DOCN stock, at $59.20 per share, could represent a 27% potential upside over the next twelve months. However, a full recovery to its 52-week high of $133.40 could mean a strong 186% capital gain if the company’s management continues to execute as well as it has been doing lately.
Nvidia (NVDA)
Source: Shutterstock
Last on our list of growth stocks to buy now for a richer retirement is Nvidia (NASDAQ:NVDA). Nvidia is a leading designer of graphics processing chips globally, and its moves into artificial intelligence (AI) and the automotive segment opened up new market verticals that could power strong growth over the next decade or two.
Nvidia’s market dominance in the global gaming graphics market and AI and its clout in the supercomputing market make it an ideal growth stock to buy and hold for the long term. That’s more true if you believe the global supercomputing market, powered by AI and spurred by emerging Web 3.0 applications, is headed for phenomenal growth.
Management sees a $1 trillion total addressable market for Nvidia’s products right now.
Its shares seem expensive with a trailing P/E multiple of 45 times. However, since our discussion is forward-looking, Nvidia’s forward P/E is a respectable 29.6. Wall Street expects the company’s five-year earnings growth rate to exceed 18% per annum. High valuation multiples for NVDA stock may be justifiable.
Shares are down 42% in a market sell-off so far this year. The company’s sustainable profitability, positive cash flow generating capacity and proven leadership capacity in key growth markets in the supercomputing age make NVDA stock a promising growth machine in a retirement portfolio.
On the date of publication, Brian Paradza held Advanced Micro Devices’ (AMD) common stock. He did not hold (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Growth Stocks to Buy for a Rich Retirement 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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RBLX Roblox $34.64 ADSK Autodesk $188.20 DDOG Datadog $107.55 DOCN DigitalOcean Holdings $47.63 NVDA Nvidia $170.66 Solid Power (SLDP) Source: T. Schneider / Shutterstock.com Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model. After a 41% decline that saw it print new 52-week lows before recovering somewhat, DDOG stock is back to its 2020 trading levels.
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RBLX Roblox $34.64 ADSK Autodesk $188.20 DDOG Datadog $107.55 DOCN DigitalOcean Holdings $47.63 NVDA Nvidia $170.66 Solid Power (SLDP) Source: T. Schneider / Shutterstock.com Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model. After a 41% decline that saw it print new 52-week lows before recovering somewhat, DDOG stock is back to its 2020 trading levels.
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RBLX Roblox $34.64 ADSK Autodesk $188.20 DDOG Datadog $107.55 DOCN DigitalOcean Holdings $47.63 NVDA Nvidia $170.66 Solid Power (SLDP) Source: T. Schneider / Shutterstock.com Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model. After a 41% decline that saw it print new 52-week lows before recovering somewhat, DDOG stock is back to its 2020 trading levels.
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RBLX Roblox $34.64 ADSK Autodesk $188.20 DDOG Datadog $107.55 DOCN DigitalOcean Holdings $47.63 NVDA Nvidia $170.66 Solid Power (SLDP) Source: T. Schneider / Shutterstock.com Solid Power (NASDAQ:SLDP) is a solid-state battery developer that is achieving milestones and could soon be shipping some test samples to partners including Ford (NYSE:F) and BMW. Wall Street sees DDOG profits rising 42% year-over-year in 2023 and projects a strong 48% compound annual earnings growth rate for Datadog over the next five years. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a cloud-based service provider offering server monitoring, database services and analytics bundled in a fast-growing software-as-a-service business model.
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2022-06-27 00:00:00 UTC
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Why Enterprise Software Stocks Snowflake, Datadog, and Twilio Fell 2% Today
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DDOG
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https://www.nasdaq.com/articles/why-enterprise-software-stocks-snowflake-datadog-and-twilio-fell-2-today
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nan
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What happened
Shares of enterprise software stocks dipped Monday in the wake of last week's rally. Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and Twilio (NYSE: TWLO) were down 2.3%, 2.1%, and 1.9%, respectively, as of the close of trading. The Nasdaq Composite Index fell just 0.7% on the day.
So what
Tech stocks in general took a beating in mid-June after the Federal Reserve hiked its short-term interest rate by 0.75 percentage points -- its largest single-step jump since 1994. In fact, the Fed's aggressive interest rate policy throughout 2022 thus far has been a primary driver of the stock market's decline. Higher interest rates generally lower the present value of risk assets like stocks.
High-growth companies that generate minimal profits (or losses) are particularly susceptible to this interest rate effect. It has therefore been tough going for Snowflake, Datadog, Twilio, and other enterprise cloud software stocks this year.
Data by YCharts.
After sliding following the Fed's last rate hike, though, all three of these stocks rebounded in the second half of June. However, that may have been nothing more than a bear market rally -- a temporary bounce that will be followed by an even deeper decline. After all, the Federal Open Market Committee will meet again at the end of July and in late September, and additional rate increases are expected after both of those meetings as the central bank continues its battle against high inflation. For better or worse, more stock market turbulence is likely ahead.
Now what
Despite the uncertainty about where inflation is headed, the precise path the Fed will follow in its rate hikes, and the possibility that a recession will result from the Fed's fiscal tightening, Snowflake, Datadog, and Twilio continue to perform quite well as businesses. Organizations around the globe are rapidly shifting to the use of cloud computing infrastructure, and this IT transformation is yielding cost savings and giving management teams greater insight into their companies' day-to-day business.
Each of these cloud players reported strong revenue growth in their latest quarters: Snowflake expanded at an 84% pace, Datadog rose by 83%, and Twilio's top line increased by 48%.
These cloud software leaders have promising futures, and if you're a long-term investor, nibbling on stocks like Snowflake, Datadog, and Twilio right now could pay off big years from now. For the time being, though, the market is hyperfocused on interest rates and inflation. Expect more volatility ahead.
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Nicholas Rossolillo and his clients have positions in Twilio. The Motley Fool has positions in and recommends Datadog, Snowflake Inc., 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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Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and Twilio (NYSE: TWLO) were down 2.3%, 2.1%, and 1.9%, respectively, as of the close of trading. So what Tech stocks in general took a beating in mid-June after the Federal Reserve hiked its short-term interest rate by 0.75 percentage points -- its largest single-step jump since 1994. Organizations around the globe are rapidly shifting to the use of cloud computing infrastructure, and this IT transformation is yielding cost savings and giving management teams greater insight into their companies' day-to-day business.
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Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and Twilio (NYSE: TWLO) were down 2.3%, 2.1%, and 1.9%, respectively, as of the close of trading. It has therefore been tough going for Snowflake, Datadog, Twilio, and other enterprise cloud software stocks this year. The Motley Fool has positions in and recommends Datadog, Snowflake Inc., and Twilio.
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Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and Twilio (NYSE: TWLO) were down 2.3%, 2.1%, and 1.9%, respectively, as of the close of trading. It has therefore been tough going for Snowflake, Datadog, Twilio, and other enterprise cloud software stocks this year. These cloud software leaders have promising futures, and if you're a long-term investor, nibbling on stocks like Snowflake, Datadog, and Twilio right now could pay off big years from now.
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Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and Twilio (NYSE: TWLO) were down 2.3%, 2.1%, and 1.9%, respectively, as of the close of trading. In fact, the Fed's aggressive interest rate policy throughout 2022 thus far has been a primary driver of the stock market's decline. 10 stocks we like better than Snowflake Inc.
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2022-06-27 00:00:00 UTC
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Datadog (DDOG) Just Reclaimed the 50-Day Moving Average
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-just-reclaimed-the-50-day-moving-average
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nan
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nan
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Datadog (DDOG) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DDOG broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of DDOG have been moving higher over the past four weeks, up 9.6%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that DDOG could be poised for a continued surge.
Once investors consider DDOG's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, and the consensus estimate has increased as well.
Investors may want to watch DDOG for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) reached a significant support level, and could be a good pick for investors from a technical perspective. Investors may want to watch DDOG for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Recently, DDOG broke through the 50-day moving average, which suggests a short-term bullish trend.
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Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that DDOG could be poised for a continued surge. Once investors consider DDOG's positive earnings estimate revisions, the bullish case only solidifies. Investors may want to watch DDOG for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that DDOG could be poised for a continued surge. Investors may want to watch DDOG for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Recently, DDOG broke through the 50-day moving average, which suggests a short-term bullish trend. Datadog (DDOG) reached a significant support level, and could be a good pick for investors from a technical perspective. Shares of DDOG have been moving higher over the past four weeks, up 9.6%.
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718614.0
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2022-06-27 00:00:00 UTC
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Should iShares Morningstar MidCap Growth ETF (IMCG) Be on Your Investing Radar?
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DDOG
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https://www.nasdaq.com/articles/should-ishares-morningstar-midcap-growth-etf-imcg-be-on-your-investing-radar-2
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nan
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Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the iShares Morningstar MidCap Growth ETF (IMCG), a passively managed exchange traded fund launched on 06/28/2004.
The fund is sponsored by Blackrock. It has amassed assets over $1.04 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.72%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.50% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD).
The top 10 holdings account for about 8.61% of total assets under management.
Performance and Risk
IMCG seeks to match the performance of the MORNINGSTAR US MID CAP BROAD GROWTH INDX before fees and expenses. The Morningstar US Mid Cap Broad Growth Index comprises of mid-capitalization U.S. equities that exhibit growth characteristics.
The ETF has lost about -25.14% so far this year and is down about -20.43% in the last one year (as of 06/27/2022). In the past 52-week period, it has traded between $49.67 and $76.33.
The ETF has a beta of 1.08 and standard deviation of 26.76% for the trailing three-year period. With about 372 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar MidCap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IMCG is a good option for those seeking exposure to the Style Box - Mid Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard MidCap Growth ETF (VOT) and the iShares Russell MidCap Growth ETF (IWP) track a similar index. While Vanguard MidCap Growth ETF has $9.28 billion in assets, iShares Russell MidCap Growth ETF has $11.55 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Morningstar MidCap Growth ETF (IMCG): ETF Research Reports
ResMed Inc. (RMD): Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
iShares Russell MidCap Growth ETF (IWP): ETF Research Reports
Vanguard MidCap Growth ETF (VOT): ETF Research Reports
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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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report You should consider the iShares Morningstar MidCap Growth ETF (IMCG), a passively managed exchange traded fund launched on 06/28/2004.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report While Vanguard MidCap Growth ETF has $9.28 billion in assets, iShares Russell MidCap Growth ETF has $11.55 billion.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report Alternatives IShares Morningstar MidCap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report You should consider the iShares Morningstar MidCap Growth ETF (IMCG), a passively managed exchange traded fund launched on 06/28/2004.
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07d4cf32-d50a-41d1-a9c1-b7ce8a41db0d
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718615.0
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2022-06-25 00:00:00 UTC
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Why Datadog, MongoDB, and Twilio Surged This Week
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DDOG
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https://www.nasdaq.com/articles/why-datadog-mongodb-and-twilio-surged-this-week
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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 Twilio (NYSE: TWLO) rallied this week, up 25.5%, 21.4%, and 18% on the week through Friday, respectively.
There wasn't much in the way of company-specific news this week. However, each is a very high-growth stock, with much of its earnings far out into the future. Thus, they are extremely sensitive to long-term interest rates. After six months of long-term yields doing nothing but seemingly going straight up, yields backed off their decade-long highs in a big way this week. High-growth stocks, which began falling last November before the indices, rallied in a big way in response.
So what
The enterprise software sector is, all things being equal, a very attractive sector. These tools help businesses function and become more productive, and they tend to be "sticky" products. After all, it's a pain for companies to switch and retrain their entire workforce on a new software system, and you aren't going to stop using software if the economy goes into a downturn. Meanwhile, recurring subscription revenue is quite attractive, especially in lean times or a recession.
Still, many enterprise software stocks trade at very high multiples of earnings. In the case of these three companies, there are still no earnings to speak of, although Datadog is slightly profitable. Both Datadog and MongoDB trade at very high multiples of sales, despite being well off their highs. While Twilio trades at a more reasonable price-to-sales ratio of 5.6, it is also generating massive losses on its bottom line that the other two companies aren't.
MDB PS Ratio data by YCharts
Since the bulk of these companies' value is far out into the future, the discount rate investors use to discount those future earnings in present-value terms matters a lot. That discount rate is usually based on a premium added onto the long-term risk-free rate, for which many investors use the 10-year Treasury bond yield as a proxy.
After the Federal Reserve hiked the Federal Funds Rate by 75 basis points in the week before last, long-term rates have been falling in anticipation of an economic slowdown. Since reaching a high around 3.48% on June 14, the 10-year yield finished this week at 3.12%. That's a fairly big reversal in a short amount of time, and has proved to be a boon for high-growth software stocks.
Moreover, the June University of Michigan Consumer survey on inflation expectations over the next five years was revised down to 3.1% on Friday, down from the 3.3% reported earlier in the month. That perhaps signaled that inflation expectations are not as entrenched as some thought earlier this month, so the economy may not require significantly higher interest rates to tame inflation.
Now what
Even though these stocks saw a nice bounce this week, and each business is growing nicely, these stocks are still pretty expensive. While high-priced growth stocks did phenomenally well over the past few years, it's unclear if interest rates will return to the extreme low levels seen during the pandemic.
Furthermore, these companies have a lot of growth baked into their share prices already, and it becomes harder to grow the bigger you get. All three appear to have bright futures, but a high valuation leaves relatively little margin for error. So while these companies could rally back to all-time highs, I still wouldn't characterize them as "cheap," even after their sell-offs this year.
Datadog and MongoDB appear to be especially disruptive products with large addressable markets, so they are on my watchlist. However, they are only appropriate for younger investors in high-growth stocks who can tolerate big near-term drawdowns, not older investors near retirement.
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 June 2, 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 enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Twilio (NYSE: TWLO) rallied this week, up 25.5%, 21.4%, and 18% on the week through Friday, respectively. While Twilio trades at a more reasonable price-to-sales ratio of 5.6, it is also generating massive losses on its bottom line that the other two companies aren't. Moreover, the June University of Michigan Consumer survey on inflation expectations over the next five years was revised down to 3.1% on Friday, down from the 3.3% reported earlier in the month.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Twilio (NYSE: TWLO) rallied this week, up 25.5%, 21.4%, and 18% on the week through Friday, respectively. Still, many enterprise software stocks trade at very high multiples of earnings. MDB PS Ratio data by YCharts Since the bulk of these companies' value is far out into the future, the discount rate investors use to discount those future earnings in present-value terms matters a lot.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Twilio (NYSE: TWLO) rallied this week, up 25.5%, 21.4%, and 18% on the week through Friday, respectively. Now what Even though these stocks saw a nice bounce this week, and each business is growing nicely, these stocks are still pretty expensive. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Billy Duberstein has no position in any of the stocks mentioned.
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What happened Shares of enterprise software companies Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Twilio (NYSE: TWLO) rallied this week, up 25.5%, 21.4%, and 18% on the week through Friday, respectively. However, each is a very high-growth stock, with much of its earnings far out into the future. Still, many enterprise software stocks trade at very high multiples of earnings.
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5427e2fe-167e-4abf-8dac-88220541ca9e
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718616.0
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2022-06-24 00:00:00 UTC
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7 Top Stocks to Buy Now (High Growth)
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DDOG
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https://www.nasdaq.com/articles/7-top-stocks-to-buy-now-high-growth
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nan
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nan
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This video breaks down top stocks to buy now. These high-growth stocks are worth accumulating at these levels and lower for long-term investors with 2030 time horizons and beyond. Growth investors focus on secular growth trends and disruptive technologies such as:
Data centers
Cloud computing
Cybersecurity
Space exploration
Video gaming
Online gambling
Augmented reality (AR)
Virtual reality (VR)
Mixed reality (MR)
Autonomous driving
Electric vehicles
Genomics
Esports
5G/6G
Internet of Things (IoT)
E-commerce
Cryptocurrency
Artificial intelligence (AI)
The metaverse
Big Data
What do all these growth trends have in common? They all require semiconductors. I call semiconductors the new oil, and Advanced Micro Devices (NASDAQ: AMD) is one of the top picks on the list. But what about the other growth trends and stock picks?
Please watch the below video covering an overview of current macroeconomic conditions, portfolio management methodologies, and individual stock picks.
*Stock prices used in the below video were during the trading day of June 22, 2022. The video was published on June 23, 2022.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices 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 June 2, 2022
Eric Cuka has positions in ARK Innovation ETF, Advanced Micro Devices, Apple, Bitcoin, Blend Labs, Inc., Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Digital Turbine, Home Depot, Invesco QQQ Trust, MercadoLibre, Microsoft, SentinelOne, Inc., ServiceNow, Inc., Snowflake Inc., Tesla, UnitedHealth Group, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Bitcoin, Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, Home Depot, MercadoLibre, Microsoft, ServiceNow, Inc., Snowflake Inc., Tesla, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler. The Motley Fool recommends UnitedHealth Group 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. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Internet of Things (IoT) E-commerce Cryptocurrency Artificial intelligence (AI) The metaverse Big Data What do all these growth trends have in common? Please watch the below video covering an overview of current macroeconomic conditions, portfolio management methodologies, and individual stock picks. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in ARK Innovation ETF, Advanced Micro Devices, Apple, Bitcoin, Blend Labs, Inc., Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Digital Turbine, Home Depot, Invesco QQQ Trust, MercadoLibre, Microsoft, SentinelOne, Inc., ServiceNow, Inc., Snowflake Inc., Tesla, UnitedHealth Group, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler.
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See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in ARK Innovation ETF, Advanced Micro Devices, Apple, Bitcoin, Blend Labs, Inc., Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Digital Turbine, Home Depot, Invesco QQQ Trust, MercadoLibre, Microsoft, SentinelOne, Inc., ServiceNow, Inc., Snowflake Inc., Tesla, UnitedHealth Group, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Bitcoin, Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, Home Depot, MercadoLibre, Microsoft, ServiceNow, Inc., Snowflake Inc., Tesla, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler. The Motley Fool recommends UnitedHealth Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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10 stocks we like better than Advanced Micro Devices When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in ARK Innovation ETF, Advanced Micro Devices, Apple, Bitcoin, Blend Labs, Inc., Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Digital Turbine, Home Depot, Invesco QQQ Trust, MercadoLibre, Microsoft, SentinelOne, Inc., ServiceNow, Inc., Snowflake Inc., Tesla, UnitedHealth Group, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Bitcoin, Cloudflare, Inc., Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, Home Depot, MercadoLibre, Microsoft, ServiceNow, Inc., Snowflake Inc., Tesla, Upstart Holdings, Inc., Vanguard S&P 500 ETF, and Zscaler.
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This video breaks down top stocks to buy now. I call semiconductors the new oil, and Advanced Micro Devices (NASDAQ: AMD) is one of the top picks on the list. His opinions remain his own and are unaffected by The Motley Fool.
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08ebb55a-68e1-4440-8399-bacadd45d82d
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718617.0
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2022-06-24 00:00:00 UTC
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First Week of August 5th Options Trading For Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/first-week-of-august-5th-options-trading-for-datadog-ddog
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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 this week, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $105.00 strike price has a current bid of $9.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $105.00, but will also collect the premium, putting the cost basis of the shares at $95.10 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $106.96/share today.
Because the $105.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.43% return on the cash commitment, or 81.94% 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 $105.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $9.95. If an investor was to purchase shares of DDOG stock at the current price level of $106.96/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.14% if the stock gets called away at the August 5th 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 $110.00 strike highlighted in red:
Considering the fact that the $110.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.30% boost of extra return to the investor, or 80.84% 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 $106.96) to be 68%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 5th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 5th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 5th 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 August 5th 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the August 5th expiration.
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88037d93-9842-477b-9094-1abaccb42fed
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718618.0
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2022-06-24 00:00:00 UTC
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Datadog (DDOG) Launches Audit Trail Compliance Solution
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-launches-audit-trail-compliance-solution
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nan
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nan
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Datadog Inc. DDOG recently announced the launch of Datadog Audit Trail to help businesses achieve their compliance and governance objectives. The new software service enables customers to audit all changes within the Datadog platform.
The new service is aimed at helping enterprises build a more complete compliance strategy for their observability data by mitigating the risk of significant data breaches, unauthorized user access and unintended configuration changes.
Datadog Audit Trail provides a unified view to give customers full visibility into user and API actions across the platform. It also allows teams to report and alert on changes and fulfill their audit and compliance demands quickly and easily.
The new service will enable organizational compliance by keeping all audit events for 90 days, with additional options for long-term archival.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog Rides on New Product Adoption, Strength in Partner Base
Datadog has been benefiting from the increased adoption of cloud-based monitoring and analytics platforms, across the globe. This Zacks Rank #3 (Hold) company’s expanding portfolio of integrated solutions has been acting as a major catalyst in expanding its customer base.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The solid adoption of newer products, including Real User Monitoring, Synthetic Monitoring and Application Performance Monitoring, is expected to aid customer wins in the near term.
In the last reported quarter, the company witnessed a robust demand for its infrastructure monitoring solutions, APM suite and log management products. The company had more than 19,800 customers at the end of first-quarter 2022, up from 15,200 in the year-ago quarter. Of these customers, 2,250 have an annual run rate (“ARR”) of $100K or more, up from 1,406 in the year-ago quarter. These customers generate about 85% of the total ARR.
As of the end of the first quarter, 81% of customers used two or more products, up from 75% in the year-ago quarter. Additionally, 35% of customers utilized four or more products, up from 25% in the year-ago quarter.
Contributions from a strong cloud partner base, including Alphabet’s GOOGL Google Cloud, Microsoft’s MSFT Azure and Amazon’s AMZN Amazon Web Services (“AWS”), are expected to remain key growth drivers.
Last month, the company achieved AWS Education Competency status. Datadog and AWS will also be developing and delivering a tighter product alignment in the future.
The strategic collaboration opened up a marketing and co-selling program between Amazon and Datadog, bringing new opportunities for consumers worldwide.
Earlier this year, Datadog was chosen as a Microsoft partner within the Azure Cloud Adoption Framework.
Per the Datadog-Microsoft partnership, Datadog will integrate its monitoring and security capabilities with Azure’s full suite of services, thus helping organizations accelerate their cloud adoption process.
Datadog has also extended its strategic partnership with Google Cloud. Datadog and Google Cloud extended this partnership from Europe, the Middle East and Africa (EMEA) to North America.
The extended partnership has made it easier for organizations to access and implement Datadog’s monitoring and security platform, allowing them to secure and optimize migrated and new workloads.
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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog Inc. DDOG recently announced the launch of Datadog Audit Trail to help businesses achieve their compliance and governance objectives. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog Audit Trail provides a unified view to give customers full visibility into user and API actions across the platform.
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Datadog Inc. DDOG recently announced the launch of Datadog Audit Trail to help businesses achieve their compliance and governance objectives. Datadog, Inc. (DDOG): Free Stock Analysis Report Contributions from a strong cloud partner base, including Alphabet’s GOOGL Google Cloud, Microsoft’s MSFT Azure and Amazon’s AMZN Amazon Web Services (“AWS”), are expected to remain key growth drivers.
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Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog Inc. DDOG recently announced the launch of Datadog Audit Trail to help businesses achieve their compliance and governance objectives. Datadog, Inc. Price and Consensus Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote Datadog Rides on New Product Adoption, Strength in Partner Base Datadog has been benefiting from the increased adoption of cloud-based monitoring and analytics platforms, across the globe.
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Datadog Inc. DDOG recently announced the launch of Datadog Audit Trail to help businesses achieve their compliance and governance objectives. Datadog, Inc. (DDOG): Free Stock Analysis Report Contributions from a strong cloud partner base, including Alphabet’s GOOGL Google Cloud, Microsoft’s MSFT Azure and Amazon’s AMZN Amazon Web Services (“AWS”), are expected to remain key growth drivers.
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726f8536-b56f-44cb-a327-1391b505c30c
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718619.0
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2022-06-24 00:00:00 UTC
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Datadog (DDOG) Crossed Above the 20-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-20-day-moving-average%3A-what-that-means-for-investors
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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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
DDOG could be on the verge of another rally after moving 12.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) 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.
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.
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.
The views and 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. 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. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
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DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. 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.
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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 12.2% higher over the last four weeks.
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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. 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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36171f4a-188a-4a6b-bdb5-582062fd281a
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718620.0
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2022-06-23 00:00:00 UTC
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Why CrowdStrike, MongoDB, and Datadog Are Surging Today
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DDOG
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https://www.nasdaq.com/articles/why-crowdstrike-mongodb-and-datadog-are-surging-today
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nan
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nan
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What happened
Shares of cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD), database provider MongoDB (NASDAQ: MDB), and software observability company Datadog (NASDAQ: DDOG) were up more than the market today -- up 4.2%, 6.2%, and 9%, respectively, as of 12:15 p.m. ET.
There wasn't any material news out of these companies today, but many investors may be thinking these high-growth stocks have bottomed. Commodity prices and long-term bond yields are falling today, which is a telltale sign of an economic downturn. However, growth stocks began selling off before other cyclical stocks, and their recurring revenue and secular growth prospects may make them more attractive in a downturn. That means these types of growth stocks could bottom before the market -- although that's a big if.
Additionally, another best-in-class enterprise software stock caught a big upgrade today, perhaps boosting enthusiasm for the software-as-a-service sector.
So what
On Thursday, oil prices fell again, continuing a trend from over the past week; meanwhile, long-term bond yields as denoted by the 10-year Treasury bond yield also fell again, to 3.04% as of this writing. That's significantly below the high of 3.48% hit just 10 days ago.
These declines could be signs of an upcoming recession, which may confuse some investors as to why some stocks are rallying. The irony is that for high-growth software stocks riding long-term secular tailwinds, their value may be more determined by long-term interest rates than the near-term economic picture. This is because, while growth may be lower than normal in a recession, these stocks will still grow in all likelihood during a downturn, when more economically sensitive stocks will see significant declines in earnings.
So, regardless of whether we have a recession in the next year, most of the value in these growth stocks is based on profits far out in the future, maybe 10 years, once the downturn is over. Meanwhile, lower long-term rates mean a lower discount rate on those future earnings, and therefore a higher intrinsic value.
Also helping matters today was a big analyst upgrade for data lake software peer Snowflake (NYSE: SNOW) from J.P. Morgan analyst Mark Murphy. The analyst conducted a survey of major CIOs on what services they were going to buy more of this year, and Snowflake came in first. "Snowflake enjoys excellent standing among customers as evident in our customer interviews...and recently laid out a clear long-term vision at its Investor Day in Las Vegas toward cementing its position as a critical emerging platform layer of the enterprise software stack," Murphy wrote. Of note, CrowdStrike also scored highly in that survey.
The positive notes on Snowflake likely helped these stocks because each appears to be a disruptive leader in its respective software niches, as Snowflake is. CrowdStrike appears to be the preferred new vendor for cloud-based cybersecurity, MongoDB appears to be disrupting the large database market, and Datadog is growing the fastest out of these new cloud-based observability solution providers.
Now what
Given their highly competitive products that are mission critical to any digital enterprise, regardless of the near-term economic numbers, these stocks should grow through the next year and beyond.
The big question on these three stocks comes down to valuation. Datadog still trades at 26 times sales, CrowdStrike still trades at 24 times sales, and MongoDB trades at 19 times sales. These valuations are well below where they were last November, but still very high by any measure.
The near-term outlook for these three stocks will unfortunately likely be determined by long-term rates and inflation, not fundamentals. If you think long-term rates have peaked, then they may be buys here. However, if long-term rates and inflation stay higher than in the pre-pandemic and pandemic era, there could be more downside ahead. Right now, these stocks are only appropriate for growth investors with a very long time horizon, and not for older investors near retirement. These are exciting companies for sure, but their valuations still make them risky, even after today's positive action.
10 stocks we like better than CrowdStrike Holdings, Inc.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein has the following options: short January 2023 $60 puts on CrowdStrike Holdings, Inc. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc., Datadog, MongoDB, 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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What happened Shares of cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD), database provider MongoDB (NASDAQ: MDB), and software observability company Datadog (NASDAQ: DDOG) were up more than the market today -- up 4.2%, 6.2%, and 9%, respectively, as of 12:15 p.m. Additionally, another best-in-class enterprise software stock caught a big upgrade today, perhaps boosting enthusiasm for the software-as-a-service sector. Now what Given their highly competitive products that are mission critical to any digital enterprise, regardless of the near-term economic numbers, these stocks should grow through the next year and beyond.
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What happened Shares of cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD), database provider MongoDB (NASDAQ: MDB), and software observability company Datadog (NASDAQ: DDOG) were up more than the market today -- up 4.2%, 6.2%, and 9%, respectively, as of 12:15 p.m. CrowdStrike appears to be the preferred new vendor for cloud-based cybersecurity, MongoDB appears to be disrupting the large database market, and Datadog is growing the fastest out of these new cloud-based observability solution providers. Datadog still trades at 26 times sales, CrowdStrike still trades at 24 times sales, and MongoDB trades at 19 times sales.
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What happened Shares of cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD), database provider MongoDB (NASDAQ: MDB), and software observability company Datadog (NASDAQ: DDOG) were up more than the market today -- up 4.2%, 6.2%, and 9%, respectively, as of 12:15 p.m. This is because, while growth may be lower than normal in a recession, these stocks will still grow in all likelihood during a downturn, when more economically sensitive stocks will see significant declines in earnings. See the 10 stocks *Stock Advisor returns as of June 2, 2022 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company.
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What happened Shares of cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD), database provider MongoDB (NASDAQ: MDB), and software observability company Datadog (NASDAQ: DDOG) were up more than the market today -- up 4.2%, 6.2%, and 9%, respectively, as of 12:15 p.m. This is because, while growth may be lower than normal in a recession, these stocks will still grow in all likelihood during a downturn, when more economically sensitive stocks will see significant declines in earnings. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc., Datadog, MongoDB, and Snowflake Inc.
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a1b7d182-d7f3-418f-9daa-8f1da9f0842d
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718621.0
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2022-06-23 00:00:00 UTC
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Nasdaq 100 Movers: FTNT, PDD
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ftnt-pdd
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nan
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nan
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In early trading on Thursday, shares of Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.1%. Year to date, Pinduoduo registers a 10.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is Fortinet, trading down 79.7%. Fortinet is lower by about 84.3% looking at the year to date performance.
Two other components making moves today are Booking Holdings, trading down 4.2%, and Datadog, trading up 5.4% on the day.
VIDEO: Nasdaq 100 Movers: FTNT, PDD
The views and 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 Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.1%. And the worst performing Nasdaq 100 component thus far on the day is Fortinet, trading down 79.7%. VIDEO: Nasdaq 100 Movers: FTNT, PDD The views and 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 Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.1%. Year to date, Pinduoduo registers a 10.9% gain. And the worst performing Nasdaq 100 component thus far on the day is Fortinet, trading down 79.7%.
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In early trading on Thursday, shares of Pinduoduo topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.1%. And the worst performing Nasdaq 100 component thus far on the day is Fortinet, trading down 79.7%. Two other components making moves today are Booking Holdings, trading down 4.2%, and Datadog, trading up 5.4% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Fortinet, trading down 79.7%. Fortinet is lower by about 84.3% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: FTNT, PDD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3dfd2e1c-4bd9-4f00-8343-05d4537b869e
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718622.0
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2022-06-23 00:00:00 UTC
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5 No-Brainer Buys During a Bear Market
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DDOG
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https://www.nasdaq.com/articles/5-no-brainer-buys-during-a-bear-market
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nan
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nan
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With the bear market we're in right now (when the market falls 20% or more), there is a lot of skepticism about the future. However, if investors can broaden their investing horizon beyond the next 10 months (the average bear market lasts 9.6 months), they can purchase several incredible values at bargain prices.
Here is my list of five great buys during today's bear market.
1. Shopify
First off is Shopify (NYSE: SHOP). This software provider gives entrepreneurs the tools to open and maintain an e-commerce business. Shopify charges its users a monthly fee for its software and takes a slice of each transaction that goes through its customer's website.
Shopify made huge business gains during the pandemic, with gross merchandise volume rising 57% annually over two years to $43.2 billion. But, even with first-quarter revenue growth of 22%, the market is worried about a business slowdown. As a result, the stock now sits more than 80% down from its all-time high.
How does a company that boomed during the pandemic and will maintain its revenue after the boom have a stock price that is below pre-pandemic levels? Extreme expectations. Shopify's valuation got ahead of itself when the stock traded for more than 60 times sales. Now the stock hovers around a much more reasonable nine times sales. However, the market may have overcorrected as Shopify's valuation is near an all-time low.
Shopify's product isn't going away anytime soon, and investors should scoop up the stock while the pessimism remains high.
2. Datadog
As businesses become more complex through cloud technologies, IT teams are having difficulty ensuring each program feeds each other correctly and functions properly. Datadog (NASDAQ: DDOG) assists with this through cloud monitoring as a service. With its intelligent software, Datadog can detect and solve problems before anyone can notice, providing unparalleled response time compared to manual intervention.
Datadog has been growing rapidly, with Q1 revenue rising 83% year-over-year. Additionally, Datadog is profitable from a GAAP (generally accepted accounting principles) basis and produced a free cash flow of $129.9 million during the quarter, a 36% margin.
With full-year revenue expected to rise 56%, Datadog still has high expectations for the remainder of the year. Datadog's product demand should remain strong for the year despite economic headwinds, as its product can help make businesses more efficient.
3. Snowflake
Like Datadog, Snowflake (NYSE: SNOW) focuses on cloud infrastructure. However, its niche is in data, and Snowflake's software allows its clients to store massive amounts of data and has the tools available to interpret and create models from the data.
To say this software is popular among its customers is an understatement. It has a 100% Dresner customer satisfaction score, and existing clients spent $1.74 this quarter for every $1.00 they spent last year. It also posted a 41% free cash flow margin, but it was unprofitable from a GAAP basis due to high stock-based compensation. Still, the business outlook is strong, with 72% product revenue growth projected for Q2.
Once valued at more than 150 times sales, its valuation has dropped significantly.
SNOW PS Ratio data by YCharts.
While 28 times sales is still expensive, Snowflake is growing consistently faster than many other companies in the market.
Investors will do well by purchasing Snowflake now with the mindset of holding at least three to five years.
4. The Trade Desk
Advertisements have been around for a long time, although they have taken different forms. Now digital ads are delivered through connected TV, podcasts, and website margins. However, for these ads to make the most impact, they need to be relevant to the viewer. The Trade Desk (NASDAQ: TTD) assists in this process by bidding on ads on behalf of advertisers to ensure they are getting the best value for their budget.
This business has been lucrative for The Trade Desk, as its revenue rose 43% year over year in Q1 and would have posted a profit if not for a large CEO performance bonus. The Trade Desk also has partnerships with big-time players like Adobe and Walmart that showcase The Trade Desk's best-in-class product.
While advertising budgets tend to get slashed during recessions, The Trade Desk's product provides ads to targeted consumers. So companies may cut overall advertising spending (like regular TV or billboards) while maintaining targeted ad spending due to increased success rates.
Regardless, The Trade Desk's product will be vital as the economy eventually recovers and moves into another growth phase.
5. Autodesk
Autodesk (NASDAQ: ADSK) provides engineers and architects with the software necessary to design buildings and products. It used to release new software editions annually, so if businesses had a difficult financial position, they would pass on the upgrade. Now Autodesk operates on a subscription model, which requires customers to pay their bills or lose access to the software necessary to operate in the industry.
This resiliency was displayed in its fiscal-year 2023 Q1 (ending April 30), as Autodesk reported 16% billings growth while its free cash flow rose 34% from the year-ago quarter. In addition, Autodesk's revenue streams are also spread across the globe, giving the business a strong balance in case a recession affects the U.S. but not the rest of the world.
REGION PERCENT OF TOTAL REVENUE
Americas 41.4%
EMEA 38.4%
APAC 20.2%
Source: Autodesk. EMEA-Europe, Middle East, and Africa. APAC-Asia-Pacific.
With Autodesk's products being vital to its industry, the company will continue to expand regardless of how bad the economy gets domestically or internationally.
With all these stocks, the mindset is to hold for at least three to five years. While the economy may be rocky, it will eventually return stronger than before. These five stocks can provide incredible returns if you can hold on through difficult periods.
10 stocks we like better than Shopify
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 Shopify 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 June 2, 2022
Keithen Drury has positions in Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk. The Motley Fool has positions in and recommends Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $420 calls on Adobe Inc., short January 2023 $1,160 calls on Shopify, and short January 2024 $430 calls on Adobe 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) assists with this through cloud monitoring as a service. Additionally, Datadog is profitable from a GAAP (generally accepted accounting principles) basis and produced a free cash flow of $129.9 million during the quarter, a 36% margin. This resiliency was displayed in its fiscal-year 2023 Q1 (ending April 30), as Autodesk reported 16% billings growth while its free cash flow rose 34% from the year-ago quarter.
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Datadog (NASDAQ: DDOG) assists with this through cloud monitoring as a service. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keithen Drury has positions in Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk. The Motley Fool has positions in and recommends Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk.
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Datadog (NASDAQ: DDOG) assists with this through cloud monitoring as a service. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keithen Drury has positions in Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk. The Motley Fool has positions in and recommends Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk.
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Datadog (NASDAQ: DDOG) assists with this through cloud monitoring as a service. The Trade Desk Advertisements have been around for a long time, although they have taken different forms. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Keithen Drury has positions in Adobe Inc., Autodesk, Datadog, Shopify, Snowflake Inc., and The Trade Desk.
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bb3e6af9-022c-4b96-8eae-7e4cc42b3db1
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718623.0
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2022-06-22 00:00:00 UTC
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Datadog (DDOG) Gains As Market Dips: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know-2
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nan
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nan
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Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. This move outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 5.24% over the past month, outpacing the Computer and Technology sector's loss of 2.49% and the S&P 500's loss of 3.32% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.15, up 66.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $378.37 million, up 62.01% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. These results would represent year-over-year changes of +50% and +56.8%, respectively.
It is also important to note the recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.17% higher. Datadog currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 125. This represents a premium compared to its industry's average Forward P/E of 40.05.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion.
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e95be932-21cb-464b-a7df-f545df58d13c
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718624.0
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2022-06-21 00:00:00 UTC
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Why MongoDB, Datadog, and Appian Surged Today
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DDOG
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https://www.nasdaq.com/articles/why-mongodb-datadog-and-appian-surged-today
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nan
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nan
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What happened
Shares of MongoDB (NASDAQ: MDB), Datadog (NASDAQ: DDOG), and Appian (NASDAQ: APPN) surged on Tuesday, rising 8.3%, 6.5%, and 4.8%, respectively, as of 2:50 p.m. ET.
There wasn't any material news out of these companies today; however, most high-growth software stocks surged today after the market fell to yearly lows last week. High-growth names were among the first to fall hard in this marketwide sell-off, so could they be the first to bottom?
In the wake of the Federal Reserve hiking interest rates by 75 basis points last week, the largest increase since 1994, investor attention is now turning away from inflation risks and now more toward recession risk. Ironically, that may actually benefit high-growth enterprise software stocks, on the condition that they continue to grow through a downturn.
So what
Each of these companies is a best-in-class enterprise software company that makes an essential product upon which many modern businesses run. Moreover, their recurring subscription models are attractive during times of economic stress.
MongoDB's document style of database is disrupting the traditional row-and-column format of many traditional databases. As more companies use big data analytics to inform and automate their decision making, the database is the important backbone of that process. Meanwhile, Datadog's observability platform allows companies to extract data from its IT infrastructure and software applications, allowing companies to monitor all of their tech infrastructure easily and quickly fix problems. Finally, Appian provides a low-code platform that allows businesses to create reports and workflows and use data easily. All three have benefited during the pandemic digitization push, in which enterprises scrambled to go digital at an accelerated pace.
Each company is also rated very highly by customers. Appian was just named a "Customer's Choice" and leader in the 2022 Gartner Peer Insights "Voice of the Customer": Enterprise Low-Code Application Platforms Magic Quadrant report. Datadog was also named a leader in the 2022 Gartner Magic Quadrant for Application Performance Monitoring and Observability. And MongoDB has been rated as a leader in Gartner's Magic Quadrant report on Operational Database Management Systems.
So, it's a fair bet that these high-growth companies would continue growing even in a mild recession. Although growth may slow down, MongoDB grew 57% last quarter, Datadog grew 83%, and Appian grew 29%. That leaves a fair amount of headroom for growth even in a slowdown -- especially for Datadog and MongoDB. If a downturn happens, long-term interest rates tend to fall, which benefits long-duration assets such as growth stocks with recurring revenue.
Now what
Oddly, long-term rates as marked by the 10-year-Treasury bond yield actually increased slightly today, to 3.3% as of this writing. Still, the 10-year yield is below last week's highs of 3.48%, which was the highest yield on the 10-year since 2011. So, it's possible bond-market observers are betting a top was put in last week. Since growth stocks are highly sensitive to long-term interest rates, and with these stocks down between 36% and 53% on the year and between 59% and 85% below their all-time highs, investors may be betting a bottom is near.
Still, I wouldn't be so quick to assume these companies have definitely bottomed, even though today's strong action followed a bounce last Friday. Despite their fall over the past year, these three companies still trade at high price-to-sales ratios and have little to no actual net earnings. In the previous low-interest rate regime, these three companies all traded with the expectation that future profits would follow their torrid revenue growth. Now that investors may be looking to see a pathway to long-term profits sooner in a higher-rate environment, they may struggle to satisfy more skeptical investors.
Therefore, those betting on a bottom here may be right, but they could also be very disappointed. Unless long-term interest rates decline and these companies continue to deliver growth at these levels, today's action may be nothing more than a dead cat bounce.
While each of these companies belongs on your watch list due to their sterling product and execution to date, I wouldn't be in a rush to buy shares, unless you are very young, have a long time horizon, and don't mind weathering further significant losses.
10 stocks we like better than MongoDB
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 MongoDB 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 June 2, 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 Appian, Datadog, and MongoDB. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of MongoDB (NASDAQ: MDB), Datadog (NASDAQ: DDOG), and Appian (NASDAQ: APPN) surged on Tuesday, rising 8.3%, 6.5%, and 4.8%, respectively, as of 2:50 p.m. If a downturn happens, long-term interest rates tend to fall, which benefits long-duration assets such as growth stocks with recurring revenue. In the previous low-interest rate regime, these three companies all traded with the expectation that future profits would follow their torrid revenue growth.
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What happened Shares of MongoDB (NASDAQ: MDB), Datadog (NASDAQ: DDOG), and Appian (NASDAQ: APPN) surged on Tuesday, rising 8.3%, 6.5%, and 4.8%, respectively, as of 2:50 p.m. There wasn't any material news out of these companies today; however, most high-growth software stocks surged today after the market fell to yearly lows last week. Meanwhile, Datadog's observability platform allows companies to extract data from its IT infrastructure and software applications, allowing companies to monitor all of their tech infrastructure easily and quickly fix problems.
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What happened Shares of MongoDB (NASDAQ: MDB), Datadog (NASDAQ: DDOG), and Appian (NASDAQ: APPN) surged on Tuesday, rising 8.3%, 6.5%, and 4.8%, respectively, as of 2:50 p.m. There wasn't any material news out of these companies today; however, most high-growth software stocks surged today after the market fell to yearly lows last week. Meanwhile, Datadog's observability platform allows companies to extract data from its IT infrastructure and software applications, allowing companies to monitor all of their tech infrastructure easily and quickly fix problems.
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What happened Shares of MongoDB (NASDAQ: MDB), Datadog (NASDAQ: DDOG), and Appian (NASDAQ: APPN) surged on Tuesday, rising 8.3%, 6.5%, and 4.8%, respectively, as of 2:50 p.m. If a downturn happens, long-term interest rates tend to fall, which benefits long-duration assets such as growth stocks with recurring revenue. Since growth stocks are highly sensitive to long-term interest rates, and with these stocks down between 36% and 53% on the year and between 59% and 85% below their all-time highs, investors may be betting a bottom is near.
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b18dcfc0-90c7-45b1-9512-1a67c1e766e5
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718625.0
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2022-06-14 00:00:00 UTC
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Datadog (DDOG) Gains As Market Dips: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know-1
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nan
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nan
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Datadog (DDOG) closed at $87.11 in the latest trading session, marking a +1.13% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 11.37% in the past month. In that same time, the Computer and Technology sector lost 8.38%, while the S&P 500 lost 6.69%.
Datadog will be looking to display strength as it nears its next earnings release. In that report, analysts expect Datadog to post earnings of $0.15 per share. This would mark year-over-year growth of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $378.37 million, up 62.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $1.61 billion. These totals would mark changes of +50% and +56.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.17% higher. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Datadog is holding a Forward P/E ratio of 119.22. This valuation marks a premium compared to its industry's average Forward P/E of 39.81.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) closed at $87.11 in the latest trading session, marking a +1.13% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report Coming into today, shares of the data analytics and cloud monitoring company had lost 11.37% in the past month.
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Datadog (DDOG) closed at $87.11 in the latest trading session, marking a +1.13% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $1.61 billion.
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Datadog (DDOG) closed at $87.11 in the latest trading session, marking a +1.13% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.
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Datadog (DDOG) closed at $87.11 in the latest trading session, marking a +1.13% move from the prior day. Datadog, Inc. (DDOG): Free Stock Analysis Report In that report, analysts expect Datadog to post earnings of $0.15 per share.
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fc08c631-0ebc-4fc7-b11b-3dd9eba53de7
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718626.0
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2022-06-14 00:00:00 UTC
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2 Hypergrowth Tech Stocks to Buy in 2022 and Beyond
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DDOG
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https://www.nasdaq.com/articles/2-hypergrowth-tech-stocks-to-buy-in-2022-and-beyond-1
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nan
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nan
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With so much economic uncertainty at the moment, stocks across various industries have been hit. Tech stocks have been hit especially hard, with the tech-heavy Nasdaq Composite index being down almost 31% year-to-date and plenty of individual stocks down even more.
The sell-off is unlikely to end tomorrow, but that doesn't mean it won't eventually end and that there aren't investment bargains out there. Some businesses are trading at their lowest valuations in a long time and have plenty of indicators suggesting they are appealing buys. The stock prices of Datadog (NASDAQ: DDOG) and Confluent (NASDAQ: CFLT) have fallen more than 56% and 81%, respectively, from their all-time highs. Those price drops have brought their valuations down to appealing levels. Now might be a good time to take a closer look at these two hypergrowth tech stocks.
1. Datadog
Datadog helps businesses with observability, something that any company with digital applications or infrastructure needs to have. Ensuring that your cloud operations are operational and running smoothly is critical, and as the leader in the space, Datadog could capitalize on this $42 billion market.
The company is the top dog partially because it continues to innovate and roll out new products to its customers. The need for digital infrastructure performance monitoring is still growing, and businesses realize they need help in more categories. Datadog has met this demand with frequent product rollouts, and businesses have decided to lean heavily on Datadog because of it -- over 6,900 customers used four or more products at the end of Q1.
The company will have to continue innovating more than competitors like Dynatrace to stay on top. With almost $130 million in free cash flow generated in Q1 alone, the company is generating enough cash to do just that.
In Q1, Datadog's revenue soared 83% year over year to $363 million, but many investors are questioning whether this will continue during an economic downturn. While Datadog could see a temporary slowdown in adoption, the insight it provides is in constant need, no matter the economic environment. Datadog isn't recession-proof, but it doesn't see a challenging macroeconomic environment as a significant issue in 2022. In Q1, the company even raised its 2022 revenue guidance by 6% to $1.61 billion.
The company trades at a steep multiple of 98 times trailing 12-month free cash flow. This is expensive, but it is nearly the cheapest valuation the company has ever had since going public in late 2019. Datadog is still in hypergrowth mode in a massive market, so you might not want to avoid this high-quality business solely because of its valuation. With impressive free cash flow generation and advantages that could allow it to capitalize on the industry ahead of it, you should consider adding this company to your portfolio for the long term.
2. Confluent
At 13 times sales, Confluent is trading at a valuation that is both appealing and 66% lower than when it went public in early 2021. The company allows businesses to analyze data in real-time across their entire enterprise. The traditional open-source solution businesses use for real-time data analytics -- Apache Kafka -- is difficult to scale, but Confluent acts as a Kafka manager to optimize it.
Kafka is used by more than 80% of the Fortune 100 and all of the largest manufacturing and insurance businesses, making Confluent a valuable resource for those struggling to scale it across their entire business. Therefore, Confluent has seen extreme adoption and has solidified itself as the top managed Kafka solution: Q1 revenue jumped 64% year over year to $126 million, and it now has over 4,100 customers.
One of the risks of being based on an open-source project is that rivals can easily compete. However, Confluent has an asset that competitors can't replicate: The founders of Confluent were the original developers of Kafka, making it very hard to find anyone that knows the open-source project better than them.
The major knock on Confluent at the moment is its unprofitability. Confluent lost $113 million in Q1 alone and burned $58 million in free cash flow. Over the long term, as Confluent builds its brand reputation and spends less on sales and marketing -- which represented nearly 133% of gross profit in Q1 -- the company should inch toward profitability. Until then, it has almost $2 billion in cash and securities on the balance sheet to fuel these losses.
With that robust balance sheet, it can take these blows until it reaches scale, which is why I think it is trading at an appealing bargain right now. With its leadership in the space, Confluent looks like it will be an important cog in every enterprise's wheel in the future, making it an attractive stock to own over the long term.
10 stocks we like better than Datadog
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Jamie Louko has positions in Confluent, Inc. and Datadog. The Motley Fool has positions in and recommends Confluent, 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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The stock prices of Datadog (NASDAQ: DDOG) and Confluent (NASDAQ: CFLT) have fallen more than 56% and 81%, respectively, from their all-time highs. Some businesses are trading at their lowest valuations in a long time and have plenty of indicators suggesting they are appealing buys. With impressive free cash flow generation and advantages that could allow it to capitalize on the industry ahead of it, you should consider adding this company to your portfolio for the long term.
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The stock prices of Datadog (NASDAQ: DDOG) and Confluent (NASDAQ: CFLT) have fallen more than 56% and 81%, respectively, from their all-time highs. With almost $130 million in free cash flow generated in Q1 alone, the company is generating enough cash to do just that. The traditional open-source solution businesses use for real-time data analytics -- Apache Kafka -- is difficult to scale, but Confluent acts as a Kafka manager to optimize it.
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The stock prices of Datadog (NASDAQ: DDOG) and Confluent (NASDAQ: CFLT) have fallen more than 56% and 81%, respectively, from their all-time highs. Datadog Datadog helps businesses with observability, something that any company with digital applications or infrastructure needs to have. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Jamie Louko has positions in Confluent, Inc. and Datadog.
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The stock prices of Datadog (NASDAQ: DDOG) and Confluent (NASDAQ: CFLT) have fallen more than 56% and 81%, respectively, from their all-time highs. Confluent At 13 times sales, Confluent is trading at a valuation that is both appealing and 66% lower than when it went public in early 2021. However, Confluent has an asset that competitors can't replicate: The founders of Confluent were the original developers of Kafka, making it very hard to find anyone that knows the open-source project better than them.
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7753b13e-410b-443e-b6e6-bd1df44fa945
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718627.0
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2022-06-13 00:00:00 UTC
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DDOG December 16th Options Begin Trading
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DDOG
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https://www.nasdaq.com/articles/ddog-december-16th-options-begin-trading
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nan
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nan
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Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the December 16th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 186 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $85.00 strike price has a current bid of $16.35. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $85.00, but will also collect the premium, putting the cost basis of the shares at $68.65 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $88.08/share today.
Because the $85.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 63%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 19.24% return on the cash commitment, or 37.74% 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 $85.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $90.00 strike price has a current bid of $17.95. If an investor was to purchase shares of DDOG stock at the current price level of $88.08/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $90.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 22.56% if the stock gets called away at the December 16th 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 $90.00 strike highlighted in red:
Considering the fact that the $90.00 strike represents an approximate 2% 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 41%. 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 20.38% boost of extra return to the investor, or 39.98% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 79%, while the implied volatility in the call contract example is 77%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $88.08) to be 66%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and 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 $90.00 strike highlighted in red: Considering the fact that the $90.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the December 16th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $90.00 strike highlighted in red: Considering the fact that the $90.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 16th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $90.00 strike highlighted in red: Considering the fact that the $90.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the December 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new December 16th 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 December 16th 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 $90.00 strike highlighted in red: Considering the fact that the $90.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the December 16th expiration.
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c0626adb-83d5-4e4e-bee9-5620a1d99714
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718628.0
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2022-06-11 00:00:00 UTC
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3 Hypergrowth Stocks to Buy in 2022 and Beyond
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DDOG
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https://www.nasdaq.com/articles/3-hypergrowth-stocks-to-buy-in-2022-and-beyond
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nan
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nan
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While most hypergrowth stocks' share prices have struggled over the last year, it is vital to continue buying and dollar-cost averaging in these trying times if possible. It may be hard to stomach adding to a high-flying stock already down 40% or more from its 52-week highs, but these are the depressed prices that allow us to buy tomorrow's great businesses at fair valuations.
With that said, let's look at three hypergrowth stocks that are trading down over 40% from their recent highs -- CrowdStrike (NASDAQ: CRWD), Datadog (NASDAQ: DDOG), and Bill.com (NYSE: BILL) -- and see why they are worth buying in 2022.
1. CrowdStrike
With analysts from Statista projecting the cybersecurity industry to grow by 10% annually over the next five years, market leader CrowdStrike and its endpoint protection platform look poised to deliver prolonged hypergrowth. Increasing revenue and free cash flow by 61% and 34% in the first quarter, CrowdStrike showed the rare combination of high-speed growth and robust cash generation.
Best yet for investors, despite firing on all cylinders, the company's share prices are down over 40% from their recent highs in late 2021.
Operating through its cloud-native Falcon platform, CrowdStrike offers over 20 modules that protect various business needs, including corporate workload security, threat intelligence services, identity and data protection, and IT operations management.
Thanks to this widespread offering, most of its customers use multiple modules -- giving it a dollar-based net retention rate (DBNR) above 120% for 16 consecutive quarters. DBNR is a fantastic way to gauge growth within a company's existing base of customers from one year to the next (including customers lost to churn), with a figure above 100% showing expansion -- making CrowdStrike's consistently high marks tremendous.
Further demonstrating this impressive upselling, during the Q1earnings call management explained that since over 70% of its customers now use four or more modules, it would be replacing the metric with seven or more modules -- which was at 19%.
Due to this ability to expand its sales from current customers -- which include over 250 of the Fortune 500 -- and the secular tailwinds provided by the cybersecurity sector, CrowdStrike's hypergrowth looks poised to continue. Despite trading at 23 times sales, the company's broad customer base and critical importance to these businesses make it an outstanding stock to buy in 2022.
2. Datadog
Through its original objective to break down technology silos, Datadog aims to make walled-off programs, software, and data deployable everywhere and to everyone through its unified platform. Datadog's suite of offerings now consists of 14 products, providing monitoring and security to businesses with increasingly complex and growing cloud operations and technologies.
With the company's customer base growing from around 5,000 clients in 2017 to nearly 20,000 at the end of Q1 2022, Datadog's revenue has increased by 10 times over the same period.
For Q1 2022, Datadog grew revenue by 83% year over year while nearly tripling its free cash flow generated over the same time. Leading this charge, the number of customers spending more than $100,000 in annual recurring revenue (ARR) with the company grew from around 1,400 to over 2,200 in the last year, demonstrating quickly increasing usage among its current customers.
Thanks to these large customers and their expansion, Datadog has posted 19 consecutive quarters of a DBNR rate above 130% -- even outpacing CrowdStrike's incredible numbers.
Following recent partnerships with Amazon and Microsoft to help customers migrate their operations onto the hyperscalers' respective AWS and Azure clouds, Datadog looks to become the market leader in the observability space. With Gartner expecting this observability industry to grow from $38 billion today to $53 billion in 2025, Datadog looks like a strong candidate to continue its hypergrowth far into the future.
3. Bill.com
On a mission to "make it simple to connect and do business," Bill.com aims to bring accounts receivable and accounts payable into the digital age for entrepreneurs and small and mid-sized businesses (SMBs). Through its financial operations platform, Bill.com generates revenue primarily from usage-based transaction fees and subscriptions to use its platform.
Including its 2021 acquisitions of corporate card spending specialist Divvy and mobile-first accounts receivable company Invoice2go, Bill.com posted 179% revenue growth year over year for the third quarter of 2022.
As impressive as this growth looks, the market sent its stock down over 60% from its 52-week highs as it weighs the $3 billion spent between the two acquisitions and Bill.com's widening net losses.
BILL Net Income (TTM) data by YCharts
However, these accelerating losses are primarily a product of integrating these significant acquisitions, which already amount to nearly 40% of Bill.com's total revenue.
Rounding out our trio of high DBNRs, Bill.com also has a good tally of 124% -- which pairs beautifully with its mere five-quarter payback period needed for gross profits earned to surpass the cost of acquiring a new customer. So while it will take years for Bill.com to integrate its acquisitions and reach its full margin potential, its massive growth from recurring subscription and transaction fees make it a promising stock to own for the long haul.
10 stocks we like better than CrowdStrike Holdings, 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 CrowdStrike Holdings, 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 June 2, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Josh Kohn-Lindquist has positions in Amazon, Bill.com Holdings, Inc., CrowdStrike Holdings, Inc., Datadog, and Microsoft. The Motley Fool has positions in and recommends Amazon, Bill.com Holdings, Inc., CrowdStrike Holdings, Inc., Datadog, and Microsoft. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With that said, let's look at three hypergrowth stocks that are trading down over 40% from their recent highs -- CrowdStrike (NASDAQ: CRWD), Datadog (NASDAQ: DDOG), and Bill.com (NYSE: BILL) -- and see why they are worth buying in 2022. Due to this ability to expand its sales from current customers -- which include over 250 of the Fortune 500 -- and the secular tailwinds provided by the cybersecurity sector, CrowdStrike's hypergrowth looks poised to continue. Rounding out our trio of high DBNRs, Bill.com also has a good tally of 124% -- which pairs beautifully with its mere five-quarter payback period needed for gross profits earned to surpass the cost of acquiring a new customer.
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With that said, let's look at three hypergrowth stocks that are trading down over 40% from their recent highs -- CrowdStrike (NASDAQ: CRWD), Datadog (NASDAQ: DDOG), and Bill.com (NYSE: BILL) -- and see why they are worth buying in 2022. Datadog's suite of offerings now consists of 14 products, providing monitoring and security to businesses with increasingly complex and growing cloud operations and technologies. For Q1 2022, Datadog grew revenue by 83% year over year while nearly tripling its free cash flow generated over the same time.
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With that said, let's look at three hypergrowth stocks that are trading down over 40% from their recent highs -- CrowdStrike (NASDAQ: CRWD), Datadog (NASDAQ: DDOG), and Bill.com (NYSE: BILL) -- and see why they are worth buying in 2022. DBNR is a fantastic way to gauge growth within a company's existing base of customers from one year to the next (including customers lost to churn), with a figure above 100% showing expansion -- making CrowdStrike's consistently high marks tremendous. The Motley Fool has positions in and recommends Amazon, Bill.com Holdings, Inc., CrowdStrike Holdings, Inc., Datadog, and Microsoft.
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With that said, let's look at three hypergrowth stocks that are trading down over 40% from their recent highs -- CrowdStrike (NASDAQ: CRWD), Datadog (NASDAQ: DDOG), and Bill.com (NYSE: BILL) -- and see why they are worth buying in 2022. While most hypergrowth stocks' share prices have struggled over the last year, it is vital to continue buying and dollar-cost averaging in these trying times if possible. Including its 2021 acquisitions of corporate card spending specialist Divvy and mobile-first accounts receivable company Invoice2go, Bill.com posted 179% revenue growth year over year for the third quarter of 2022.
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cc850f52-2ccf-4a9b-9625-fedecc143a95
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718629.0
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2022-06-10 00:00:00 UTC
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Why Snowflake, MongoDB, and Datadog Crashed Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-mongodb-and-datadog-crashed-today
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nan
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nan
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What happened
Shares of cloud software disruptors Snowflake (NYSE: SNOW), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) fell hard today, down 7.7%, 6.6%, and 6.2%, respectively, as of 3:02 p.m. ET.
None of these companies had any material news today; however, the combination of a higher-than-expected inflation report and weak earnings out of software peer DocuSign (NASDAQ: DOCU) was enough to send these growth leaders tumbling.
So what
The Bureau of Labor Statistics released May inflation data this morning, which came in hotter than expected. Headline inflation was 8.6%, versus 8.3% expected, and even "core" inflation, which strips out volatile food and energy prices, came in at 6%, versus 5.9% expected.
With inflation already running at high levels, the surprise likely led many investors to immediately price in more interest rate hikes from the Federal Reserve this year. The 10-year Treasury bond rose sharply to 3.17% at one point, before retreating to 3.15% as of this writing. The higher long-term bond yields are, the higher the discount rate investors may apply to stocks. Since Snowflake and MongoDB are still printing significant operating losses under generally accepted accounting principles (GAAP), and Datadog is around breakeven, the bulk of the value in each of these stocks lies far in the future. But the higher long-term interest rates are and the further out the earnings are, the less those future profits are worth.
Additionally, bad billings guidance from DocuSign on its first-quarter earnings release last night cast a doubly sour mood over the cloud software space. Although DocuSign's revenue beat expectations for the current quarter, up 25%, management expects only 6% to 7% billings growth this year.
Billings growth is perhaps more important than revenue in many cases for software companies. That's because billings incorporate the change in revenue as well as the change in deferred revenue from upfront subscriptions. While headline revenue includes monthly revenue from subscriptions that were signed well in the past, billings capture all of the new growth in the quarter.
DocuSign saw a huge uptake during the pandemic, when businesses large and small were forced to go digital in a short amount of time; now that the pandemic is receding, there seems to be an "air pocket" in its growth. The sector-wide sell-off in the software-as-a-service (SaaS) sector seems to indicate investors are nervous DocuSign's billings slowdown will hit these top names as well.
In fact, while these three names all recently delivered fairly solid earnings, they also already guided for a deceleration this year, albeit off a much higher growth rate. Snowflake recently reported product revenue growth of 84%, but guided for 66% full-year growth at the midpoint. MongoDB recently reported 57% growth, but its full-year guidance projected a little more than 35% growth. Datadog just printed an impressive 84% revenue growth rate in the recent quarter, but guided for 56% revenue growth for the full year.
These are much stronger growth numbers than DocuSign's, but these three stocks also trade at much higher price-to-sales ratios:
SNOW PS Ratio data by YCharts
Now what
Given that these three stocks are disruptors in their fields and sporting really terrific growth rates, and given that they are down so much from their highs, one might think they're a bargain right now.
However, I would caution investors against this notion. These companies each came public in recent years, when interest rates were at or near zero. Furthermore, each absolutely took off during the pandemic, as the push for enterprise-wide digitization soared. While these companies might not see a deterioration in growth as bad as DocuSign, they will likely show deceleration, if anything because it's harder to grow at sky-high rates the bigger you get.
Meanwhile, there's no way to know how high interest rates will go. As today's price action showed, these stocks could either rocket higher if interest rates show signs of peaking and come back down, or they could fall further if long-term interest rates continue to climb higher. If you're holding these stocks, be prepared for volatility, and make sure you have a reasonable idea of intrinsic value, based on estimated future profits and a reasonable discount rate, as a goalpost.
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 June 2, 2022
Billy Duberstein has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, DocuSign, MongoDB, and Snowflake Inc. The Motley Fool recommends the following options: long January 2024 $60 calls on DocuSign. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of cloud software disruptors Snowflake (NYSE: SNOW), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) fell hard today, down 7.7%, 6.6%, and 6.2%, respectively, as of 3:02 p.m. None of these companies had any material news today; however, the combination of a higher-than-expected inflation report and weak earnings out of software peer DocuSign (NASDAQ: DOCU) was enough to send these growth leaders tumbling. Since Snowflake and MongoDB are still printing significant operating losses under generally accepted accounting principles (GAAP), and Datadog is around breakeven, the bulk of the value in each of these stocks lies far in the future.
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What happened Shares of cloud software disruptors Snowflake (NYSE: SNOW), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) fell hard today, down 7.7%, 6.6%, and 6.2%, respectively, as of 3:02 p.m. Datadog just printed an impressive 84% revenue growth rate in the recent quarter, but guided for 56% revenue growth for the full year. As today's price action showed, these stocks could either rocket higher if interest rates show signs of peaking and come back down, or they could fall further if long-term interest rates continue to climb higher.
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What happened Shares of cloud software disruptors Snowflake (NYSE: SNOW), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) fell hard today, down 7.7%, 6.6%, and 6.2%, respectively, as of 3:02 p.m. Datadog just printed an impressive 84% revenue growth rate in the recent quarter, but guided for 56% revenue growth for the full year. These are much stronger growth numbers than DocuSign's, but these three stocks also trade at much higher price-to-sales ratios: SNOW PS Ratio data by YCharts Now what Given that these three stocks are disruptors in their fields and sporting really terrific growth rates, and given that they are down so much from their highs, one might think they're a bargain right now.
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What happened Shares of cloud software disruptors Snowflake (NYSE: SNOW), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) fell hard today, down 7.7%, 6.6%, and 6.2%, respectively, as of 3:02 p.m. The higher long-term bond yields are, the higher the discount rate investors may apply to stocks. Billings growth is perhaps more important than revenue in many cases for software companies.
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a2f97b03-fc5a-4072-87da-e089d91e68dd
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718630.0
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2022-06-10 00:00:00 UTC
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How to Build a Stock Portfolio for New Investors
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DDOG
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https://www.nasdaq.com/articles/how-to-build-a-stock-portfolio-for-new-investors
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nan
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nan
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Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch. This series is focused on investing for beginners, but investors of all backgrounds will enjoy this content. The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing.
Here are the growth stock portfolio allocations by category:
60% growth stocks, such as Tesla (NASDAQ: TSLA)
20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO)
10% dividend stocks, such as Microsoft (NASDAQ: MSFT)
10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI)
The video below provides an update on this stock portfolio, which was created in February 2022. I share the stocks I'm buying now, the stocks I am dollar-cost averaging into, and more. The entire portfolio and all positions are revealed, including four new stocks I've recently added, such as Snap (NYSE: SNAP) and Toast (NYSE: TOST). Please watch for more information, and don't forget to subscribe and click the bell to receive notifications, so you don't miss any future videos in the series.
*Stock prices used in the below video were during the trading day of February 9, 2022. The video was published on February 9, 2022.
10 stocks we like better than Tesla
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 Tesla 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 June 2, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Marvell Technology Group 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. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF.
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Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Marvell Technology Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF.
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Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! The Motley Fool has a disclosure policy.
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61d33000-fa6e-4609-9598-f1bcaae07c4a
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718631.0
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2022-06-09 00:00:00 UTC
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The Apple of Law Enforcement -- Is Axon a Top Stock to Buy Now?
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DDOG
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https://www.nasdaq.com/articles/the-apple-of-law-enforcement-is-axon-a-top-stock-to-buy-now
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nan
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nan
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Axon Enterprise (NASDAQ: AXON) is a technology company focused on public safety. The company was founded over 25 years ago by Tom and Rick Smith. After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement.
In today's video, I provide deep-dive stock analysis on Axon. I'll break down the business in easy-to-understand language, provide valuation metrics, and give you my opinions and analysis on the stock. Please watch the below video for more information, and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of June 8, 2022. The video was published on June 8, 2022.
10 stocks we like better than Axon Enterprise
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 Axon Enterprise 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 June 2, 2022
Eric Cuka has positions in Apple and Datadog. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Datadog. 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 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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After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. Axon started by manufacturing TASERs, but the business has evolved into an entire ecosystem, creating what some call the Apple (NASDAQ: AAPL) of law enforcement. I'll break down the business in easy-to-understand language, provide valuation metrics, and give you my opinions and analysis on the stock.
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After two of their friends were taken by gun violence, the brothers founded Axon to provide law enforcement with nonlethal solutions. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Datadog.
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10 stocks we like better than Axon Enterprise When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Datadog.
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In today's video, I provide deep-dive stock analysis on Axon. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Apple and Datadog. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Datadog.
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5bcc9e2d-4c0f-4c54-a3ea-370d6482ba6e
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718632.0
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2022-06-08 00:00:00 UTC
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Datadog (DDOG) is a Top-Ranked Momentum Stock: Should You Buy?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-is-a-top-ranked-momentum-stock%3A-should-you-buy
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nan
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nan
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Datadog (DDOG)
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.
DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. DDOG has a Momentum Style Score of B, and shares are up 9.9% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.23 to $0.72 per share. DDOG boasts an average earnings surprise of 129.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DDOG should be on investors' short list.
Zacks' Top Picks to Cash in on Electric Vehicles
Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors
See 5 EV Stocks With Extreme Upside Potential >>
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of B, and shares are up 9.9% over the past four weeks.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of B, and shares are up 9.9% over the past four weeks.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of B, and shares are up 9.9% over the past four weeks.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of B, and shares are up 9.9% over the past four weeks.
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3a2216d7-1921-4660-9409-3b2d82601753
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718633.0
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2022-06-03 00:00:00 UTC
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First Week of DDOG July 22nd Options Trading
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DDOG
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https://www.nasdaq.com/articles/first-week-of-ddog-july-22nd-options-trading
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nan
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nan
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Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the July 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new July 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $85.00 strike price has a current bid of $3.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $85.00, but will also collect the premium, putting the cost basis of the shares at $81.35 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $107.86/share today.
Because the $85.00 strike represents an approximate 21% 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 4.29% return on the cash commitment, or 31.99% 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 $85.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $11.35. If an investor was to purchase shares of DDOG stock at the current price level of $107.86/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.51% if the stock gets called away at the July 22nd 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 $110.00 strike highlighted in red:
Considering the fact that the $110.00 strike represents an approximate 2% 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 10.52% boost of extra return to the investor, or 78.38% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $107.86) to be 65%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the July 22nd expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the July 22nd expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the July 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new July 22nd 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 July 22nd 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the July 22nd expiration.
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cb8d0c66-8290-41fa-b494-93af5117dbc8
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718634.0
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2022-06-03 00:00:00 UTC
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2 Stocks You'll Regret not Buying During the Nasdaq Bear Market
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DDOG
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https://www.nasdaq.com/articles/2-stocks-youll-regret-not-buying-during-the-nasdaq-bear-market
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nan
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nan
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With rising interest rates, fears of a recession, and consumer spending weakening, the stock market's outlook is grim, and many growth stocks are selling off hard. However, most of the market is concerned with shorter time frames, and stock prices tend to reflect an outlook of only a few months. This gives individual investors a key advantage versus investment firms, as we can afford to take a longer view.
Zooming out with a three- to five-year investment mindset reveals many stocks selling for bargain prices. Two I have my eye on are The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). Both stocks are trading down more than 50% from their all-time highs, yet have experienced little to no business slowdown. This sustained growth makes them excellent candidates to outperform as the market recovers. Let's find out a bit more about these two stocks and why you might regret not buying them during this current downturn.
Image source: Getty Images.
1. The Trade Desk
The advertising industry is massive. The International Data Co., a marketing intelligence firm, estimates global ad spending in 2019 was around $750 billion. Even though it is a massive market, the business is simple: One entity sells ad space (whether a billboard, TV commercial, or a website), and another buys it to promote a product or service. The Trade Desk's software analyzes these opportunities for its customers to ensure they are reaching their intended audience and choosing the best ad placement for a given viewer.
The Trade Desk is focused on digital ad spaces like connected TV, mobile, and podcast audio. With its internal, third-party, and first-party data inputs, its software can decide how much to pay for an ad for a given user. Because of this, advertisers see better conversion rates while spending less on ads that aren't relevant.
Companies have to gather information about their users to buy a targeted ad. But this data tracking is controversial as some of the information that companies collect can be too revealing. The Trade Desk's solution is its proprietary unified ID 2.0 (UID2) software. It gathers all the relevant information about consumers while also maintaining their privacy.
The Trade Desk saw solid 43% year-over-year revenue growth in the first quarter and an adjusted margin of 38% in earnings before interest, taxes, depreciation, and amortization (EBITDA). It would have been profitable for the quarter, but a $66 million bonus to its CEO for long-term performance caused The Trade Desk to lose $15 million. Without it, The Trade Desk would have posted a 16% net income margin based on generally accepted accounting principles (GAAP).
Advertising spending has historically dropped during recessions, causing investors to sell the stock. But with The Trade Desk transforming how digital ads are bought, it will instead see smaller growth during a hypothetical recession. Investors can pick up a great company with a vast growth opportunity trading at 66 times free cash flow (down from more than 160 six months ago) by taking a long-term view with The Trade Desk.
Even though Snap issued some warnings about ad revenue, investors need to realize Snap doesn't speak for the entire market. Just because one platform (whose ad delivery is very annoying to users) sees some issues doesn't mean every advertisement company does.
Image source: Getty Images.
2. Datadog
As more businesses move into the cloud and use different software programs, it becomes crucial that the programs interact well with one another. Monitoring this manually would be a nightmare, and the only way to know something is wrong is if there are multiple complaints. Datadog allows its users to see how these programs interact while also fixing problems automatically.
While many software-as-a-service companies have seen growth slow, Datadog has not. It grew first quarter revenue 83% year over year to $363 million while generating a 36% free-cash-flow (FCF) margin. FCF is crucial if economic conditions continue to worsen, as it allows a company's operations to fund the business without outside help.
Datadog stock is a bit more expensive than The Trade Desk, with a price-to-FCF ratio of 93. However, it is also growing quicker than The Trade Desk.
Management expects to grow its 2022 revenue by 56% over 2021's totals. With many businesses tightening up their spending, investors will need to pay attention to the second-quarter report in a few months to see if Datadog's business is being affected. But spending on its product is unlikely to be cut with how much functionality Datadog brings to IT teams.
Image source: Getty Images.
Datadog is in the early innings in its industry. It and The Trade Desk both have massive market opportunities. Investors shouldn't become shortsighted due to fear of being in a bear market. These two companies should be long-term winners; you just have to hold the stocks until the businesses are no longer executing at a high level.
10 stocks we like better than The Trade Desk
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 The Trade Desk wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 27, 2022
Keithen Drury has positions in Datadog and The Trade Desk. The Motley Fool has positions in and recommends Datadog and The Trade Desk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two I have my eye on are The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). Even though it is a massive market, the business is simple: One entity sells ad space (whether a billboard, TV commercial, or a website), and another buys it to promote a product or service. The Trade Desk's software analyzes these opportunities for its customers to ensure they are reaching their intended audience and choosing the best ad placement for a given viewer.
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Image source: Getty Images. Two I have my eye on are The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). With rising interest rates, fears of a recession, and consumer spending weakening, the stock market's outlook is grim, and many growth stocks are selling off hard.
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Two I have my eye on are The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). Investors can pick up a great company with a vast growth opportunity trading at 66 times free cash flow (down from more than 160 six months ago) by taking a long-term view with The Trade Desk. * They just revealed what they believe are the ten best stocks for investors to buy right now... and The Trade Desk wasn't one of them!
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Two I have my eye on are The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG). With rising interest rates, fears of a recession, and consumer spending weakening, the stock market's outlook is grim, and many growth stocks are selling off hard. Investors can pick up a great company with a vast growth opportunity trading at 66 times free cash flow (down from more than 160 six months ago) by taking a long-term view with The Trade Desk.
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776c1d23-21e2-49f6-ab0c-ee24481becb9
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718635.0
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2022-06-02 00:00:00 UTC
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4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB
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DDOG
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https://www.nasdaq.com/articles/4-top-stock-trades-for-friday%3A-amd-msft-ddog-fb
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We have been talking about this all week, saying that the frustrating and choppy price action may very well lead to more upside as the bulls needed to consolidate the recent gains. Let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices
Click to Enlarge
Source: Chart courtesy of TrendSpider
I know we just talked about Advanced Micro Devices (NASDAQ:AMD) the other day, but today’s monthly-up rotation over the May high really lit a fire under this stock.
Shares are up 7% on the day, as AMD easily cleared $104.55 and took off to the upside. When the move finally triggered, we were looking for a rally up to the $109 to $110 area. That’s the 61.8% retracement of the current down-leg.
There now, traders — not investors — can consider booking some profit and moving to a break-even stop-loss.
7 Overlooked Value Stocks to Buy Before Wall Street Catches On
If AMD can continue higher, let’s see if we can get to the $115 to $117 area and tag the 200-day moving average.
Top Stock Trades for Tomorrow No. 2: Microsoft
Click to Enlarge
Source: Chart courtesy of TrendSpider
Microsoft (NASDAQ:MSFT) put the market is a sour mood this morning as it cut its guidance in between its regular quarterly earnings reports. That’s never a good look. But what is a good look? Rallying on bad news, which is what the stock did today.
Shares were down 4% at the low and ended the day up 0.67%. It’s a good battle by the bulls, and it’s their ball to drop now.
With today’s rebound, the stock is pushing up through the key $270 level. It also reclaimed the 10-day and 21-day moving averages. From here, Microsoft has to try and clear the 10-week moving average. If it can do so, it puts the 50-day in play, then the low-$290s.
On the downside, today’s low is the risk level to watch at $261.60. Below that and the 2022 lows are vulnerable.
Top Stock Trades for Tomorrow No. 3: Datadog
Click to Enlarge
Source: Chart courtesy of TrendSpider
Woof, woof! Datadog (NASDAQ:DDOG) was barking today, as shares climbed almost 20% at one point. It’s great seeing some money pour back into the beaten down tech sector.
However, the move thrusts shares right into a key area on the chart. That’s as Datadog tests into the declining 10-week moving average and $115 to $120 area. The latter zone was a strong area of support until it failed earlier this month.
From here, it’s simple. If this area is resistance, bulls need to see where Datadog finds support. Hopefully it comes into play above $100 and the 10-day and 21-day moving averages.
7 Stocks to Buy and Hold Forever in This Bear Market
If it continues higher from here, see if it can clear $120, along with the 50% retracement and 10-week and 50-day moving averages. If it can, we could be looking at a larger move, perhaps up to the $140 to $150 area.
Top Trades for Tomorrow No. 4: Meta
Click to Enlarge
Source: Chart courtesy of TrendSpider
Last but not least is Meta (NASDAQ:FB). Like Microsoft, FB stock shook off some tough news this morning following the announced departure of COO Sheryl Sandberg, who has been with the company since 2008.
As for the stock, it continues to tango with the midpoint of its current channel. If it can push through this area, then the 50-day and 10-week moving averages are on the table. If the stock can push through that area, then the $224 to $225 zone is in play. That’s the May high and channel resistance.
On the downside, a break of this week’s low at $185 opens the door to channel support and the 2022 low at $169.
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.
The post 4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ:DDOG) was barking today, as shares climbed almost 20% at one point. The post 4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB appeared first on InvestorPlace. Click to Enlarge Source: Chart courtesy of TrendSpider I know we just talked about Advanced Micro Devices (NASDAQ:AMD) the other day, but today’s monthly-up rotation over the May high really lit a fire under this stock.
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The post 4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB appeared first on InvestorPlace. Datadog (NASDAQ:DDOG) was barking today, as shares climbed almost 20% at one point. Click to Enlarge Source: Chart courtesy of TrendSpider Microsoft (NASDAQ:MSFT) put the market is a sour mood this morning as it cut its guidance in between its regular quarterly earnings reports.
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Datadog (NASDAQ:DDOG) was barking today, as shares climbed almost 20% at one point. The post 4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips We have been talking about this all week, saying that the frustrating and choppy price action may very well lead to more upside as the bulls needed to consolidate the recent gains.
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Datadog (NASDAQ:DDOG) was barking today, as shares climbed almost 20% at one point. The post 4 Top Stock Trades for Friday: AMD, MSFT, DDOG, FB appeared first on InvestorPlace. Click to Enlarge Source: Chart courtesy of TrendSpider I know we just talked about Advanced Micro Devices (NASDAQ:AMD) the other day, but today’s monthly-up rotation over the May high really lit a fire under this stock.
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9d8db9d0-d926-4820-8bf9-a49ad09caf4c
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718636.0
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2022-06-02 00:00:00 UTC
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Noteworthy Thursday Option Activity: NKE, DDOG, LPX
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DDOG
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-nke-ddog-lpx
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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 Nike (Symbol: NKE), where a total of 48,287 contracts have traded so far, representing approximately 4.8 million underlying shares. That amounts to about 62.5% of NKE's average daily trading volume over the past month of 7.7 million shares. Particularly high volume was seen for the $124 strike call option expiring June 03, 2022, with 3,802 contracts trading so far today, representing approximately 380,200 underlying shares of NKE. Below is a chart showing NKE's trailing twelve month trading history, with the $124 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) options are showing a volume of 41,060 contracts thus far today. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 57.6% of DDOG's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $120 strike call option expiring June 17, 2022, with 2,621 contracts trading so far today, representing approximately 262,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange:
And Louisiana-Pacific Corp (Symbol: LPX) saw options trading volume of 7,800 contracts, representing approximately 780,000 underlying shares or approximately 57.3% of LPX's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $65 strike put option expiring June 17, 2022, with 3,831 contracts trading so far today, representing approximately 383,100 underlying shares of LPX. Below is a chart showing LPX's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for NKE options, DDOG options, or LPX 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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Particularly high volume was seen for the $120 strike call option expiring June 17, 2022, with 2,621 contracts trading so far today, representing approximately 262,100 underlying shares of DDOG. Below is a chart showing NKE's trailing twelve month trading history, with the $124 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 41,060 contracts thus far today. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 57.6% of DDOG's average daily trading volume over the past month, of 7.1 million shares.
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Below is a chart showing NKE's trailing twelve month trading history, with the $124 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 41,060 contracts thus far today. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And Louisiana-Pacific Corp (Symbol: LPX) saw options trading volume of 7,800 contracts, representing approximately 780,000 underlying shares or approximately 57.3% of LPX's average daily trading volume over the past month, of 1.4 million shares. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 57.6% of DDOG's average daily trading volume over the past month, of 7.1 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And Louisiana-Pacific Corp (Symbol: LPX) saw options trading volume of 7,800 contracts, representing approximately 780,000 underlying shares or approximately 57.3% of LPX's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $124 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 41,060 contracts thus far today. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 57.6% of DDOG's average daily trading volume over the past month, of 7.1 million shares.
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Particularly high volume was seen for the $120 strike call option expiring June 17, 2022, with 2,621 contracts trading so far today, representing approximately 262,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $120 strike highlighted in orange: And Louisiana-Pacific Corp (Symbol: LPX) saw options trading volume of 7,800 contracts, representing approximately 780,000 underlying shares or approximately 57.3% of LPX's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing NKE's trailing twelve month trading history, with the $124 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 41,060 contracts thus far today.
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078bb73f-43d3-46d9-a270-b14f092ac1b8
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718637.0
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2022-06-01 00:00:00 UTC
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Nasdaq 100 Movers: ROST, DDOG
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-rost-ddog
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In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. Year to date, Datadog has lost about 42.7% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 1.8%. Ross Stores is lower by about 27.0% looking at the year to date performance.
Two other components making moves today are Airbnb, trading down 1.3%, and Okta, trading up 5.1% on the day.
VIDEO: Nasdaq 100 Movers: ROST, 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: ROST, 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 Ross Stores, trading down 1.8%. Ross Stores is lower by about 27.0% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: ROST, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. Year to date, Datadog has lost about 42.7% of its value.
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VIDEO: Nasdaq 100 Movers: ROST, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.0%. And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 1.8%.
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VIDEO: Nasdaq 100 Movers: ROST, 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 Ross Stores, trading down 1.8%. Ross Stores is lower by about 27.0% looking at the year to date performance.
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67e677e9-48c2-48f1-823d-2325fd094904
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718638.0
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2022-06-01 00:00:00 UTC
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August 19th Options Now Available For Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/august-19th-options-now-available-for-datadog-ddog
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Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the August 19th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 79 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 August 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $95.00 strike price has a current bid of $13.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $95.00, but will also collect the premium, putting the cost basis of the shares at $82.00 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $97.19/share today.
Because the $95.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 13.68% return on the cash commitment, or 63.22% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Datadog Inc, and highlighting in green where the $95.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $105.00 strike price has a current bid of $11.25. If an investor was to purchase shares of DDOG stock at the current price level of $97.19/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $105.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 19.61% if the stock gets called away at the August 19th 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 $105.00 strike highlighted in red:
Considering the fact that the $105.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 11.58% boost of extra return to the investor, or 53.48% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $97.19) to be 64%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and 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 $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 8% 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 August 19th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 8% 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 August 19th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 8% 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 August 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new August 19th 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 August 19th 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 $105.00 strike highlighted in red: Considering the fact that the $105.00 strike represents an approximate 8% 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 August 19th expiration.
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01372af4-45be-4edd-bd4e-f7b879dbcdd9
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718639.0
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2022-05-27 00:00:00 UTC
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2 Top Cybersecurity Stocks to “Set It and Forget It”
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DDOG
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https://www.nasdaq.com/articles/2-top-cybersecurity-stocks-to-set-it-and-forget-it
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is excerpted from Tom Yeung’s Moonshot Investor newsletter. To make sure you don’t miss any of Tom’s picks, subscribe to his mailing list here.
Cybersecurity Threats Continue Growing
On Tuesday, Zoom Communications (NASDAQ:ZM) revealed that a security researcher at Google’s Project Zero had discovered four security vulnerabilities that could let attackers hack victims “just by sending them a message.”
Just last week, a study published by the Pew Charitable Trusts found that hospital patients are becoming increasingly at risk of ransomware attacks. And in April, U.S. intelligence officials suggested that Russian hackers had successfully used a “wiper” to take down satellite communication stations before it invaded Ukraine.
These attacks will only get worse.
We have a “seemingly pathological need to connect everything to the internet,” former Director of the Cybersecurity and Infrastructure Security Agency Chris Krebs bluntly said in an address to Congress, calling the situation a “dumpster fire.”
And he’s right.
Self-driving cars… smart power grids… connected healthcare devices… the range of targets is only growing.
But there’s some good news:
American firms are learning to fight back.
And on the forefront are the high-growth Profit & Protection cybersecurity stocks we’ll examine today.
Source: Creativa Images / Shutterstock.com
2 Top Cybersecurity Stocks to “Set It and Forget It”
Okta (NASDAQ:OKTA)… Palo Alto Networks (NASDAQ:PANW)… DataDog (NASDAQ:DDOG)…
There’s no shortage of cybersecurity stocks vying to become… well… top dog.
But markets are acting as if we’ve already caught the bad guys. The top nine cybersecurity stocks have lost 40% of their value over the past six months; $145 billion has vanished from the market.
That’s created a golden opportunity for long-term investors to jump in. Though the market cycle suggests several more months of drawdowns, these set-it-and-forget-it companies are the kind of growth stocks that the Profit & Protection trading system shows outperform over time.
Zscaler (ZS)
Though its name might look strange, Zscaler’s (NASDAQ:ZS) business is anything but.
The cybersecurity firm operates the Zscaler Zero Trust Exchange, a platform for previously unknown devices to access secure systems.
As the number of bring-your-own devices has exploded, so too have the headaches of securing an enterprise network. When thousands of workers use their personal phones to access work servers, how can IT departments ensure a breach doesn’t spread across the entire network?
That’s where Zscaler comes in.
By using a “zero trust architecture,” the company’s system acts like an intelligent switchboard that quickly allows and disallows access as required. The system also distorts IP addresses, making it harder for would-be hackers to attack something they can’t “see.”
No security system is perfect, but Zscaler is one of the best in the business.
And it shows.
Tilting the ZScales in Our Favor
From a product standpoint, Zscaler receives excellent enterprise reviews. The company has been named a “Leader” in Gartner’s Magic Quadrant and has the highest rating of an “ability to execute” among its ten rivals.
“Zscaler Internet Access Platform is the only solution that provides us with a surface with no attack potential,” one Gartner review observed. “It does a superb job of filtering traffic and is particularly strong in terms of security.”
The product quality also shows in its financials.
Since 2019, customer retention rates have averaged 122% — a figure only possible by upselling customers faster than they leave. Gross margins have remained strong, and valuations are at their lowest since the Covid-19 pandemic.
That’s created an ideal convergence of factors. As yesterday’s newsletter mentioned, ZScaler lands a solid “A” grade in its Profit & Protection growth score, giving investors a higher probability of investment success.
There are, however, some downsides.
First, ZS’ marketing team isn’t particularly efficient. Costs have risen faster than revenues, suggesting that online criticism of its poor sales incentives is on the mark.
Second, the company still faces an uncertain competitive landscape. Larger rivals like Cisco (NASDAQ:CSCO) and Palo Alto Networks have far greater resources should they choose to enter the “zero-trust” market. The company’s concentrated ownership (and large market cap) makes it less appealing as a takeover target, even for tech giants like Microsoft (NASDAQ:MSFT).
Finally, there’s short-term timing. Today’s rising rate environment suggests that healthcare, energy and homebuilders are better tactical plays for traders looking for immediate profits. Lossmaking firms like ZS could have further to fall before rebounding.
Nevertheless, those seeking long-term profits could do well to buy Zscaler. The company’s large cash position — and an “A” growth grade — make it a firm to keep in your back pocket. Initial Profit & Protection target price begins at $250.
CrowdStrike (CRWD)
Close behind is CrowdStrike (NASDAQ:CRWD), a leader in endpoint security.
The firm is on the frontline of defense against cybersecurity attacks. Its cloud-based Falcon system attempts to identify dangerous activity and defend endpoints against viruses, ransomware and malware.
And the larger the firm gets, the better it becomes: as its name suggests, CrowdStrike relies on crowdsourced data to train its AI systems on impending threats.
In other words, CRWD has created more than an antivirus program ready to repel attackers. They’ve made a system that proactively monitors abnormalities and adapts to new hazards before encountering them.
Crowdstrike also gets glowing reviews from Gartner, particularly about how easy it is to implement its cloud-based software. Entire enterprises can get set up in less than a day, making for a compelling choice relative to slower-moving competitors.
Crowding Out the Bad Guys
CrowdStrike’s quality shows through its financial figures. Retention rates remain above 120%, and analysts expect growth to top 48% this year. From a price-to-sales standpoint, CRWD stock is at its cheapest since March 2020.
The firm has also managed to keep costs under control. Operating expenses increased slower than revenues last year, pushing CRWD’s free cash flow up by 50% to $440 million.
And best of all, the company is a “land-and-expand” play, as analysts at Morningstar observe. Each additional subscription module the firm sells raises the company’s gross margin, not just its operating one. That means CrowdStrike could break even by 2025 and reach almost 20% EBIT margins two years later.
But like ZScaler, there are some drawbacks to buying a stock like CrowdStrike’s today:
Black Swan Events. First, there’s a long-tail risk of an internal breach. Though it’s unlikely that CrowdStrike could fall, a successful attack could make the poster child of cybersecurity into the next SolarWinds. Shares could go to $50 overnight.
Lower Upside. CrowdStrike has less upside than firms like ZScaler. Despite a 53% decline since November, CRWD still trades at 17x forward price-to-sales, making it one of the most expensive cybersecurity stocks. Investors are paying a premium for quality.
Market Timing. CRWD isn’t immune to macro trends. The company might sell products to healthcare and energy firms, but it isn’t a countercyclical play.
Still, CrowdStrike is riding a massive wave of cybersecurity threats. Corporations have woken up to the risks of ransomware, and high-profile hacks have perversely become the industry’s best advertising campaign that money didn’t buy.
A Big Bet on the Future
In 1988, Cornell graduate student Robert Morris wrote a computer program to identify the size of the internet.
But a programming mistake made “The Morris” spread too quickly.
Within 15 hours, most of the internet — around 15,000 computers — had become infected by the first online-based computer virus (talk about a bad day at work).
Since then, cybersecurity attacks have only become more nefarious. In 2013, the CryptoLocker virus introduced a half-million computers — and their unfortunate users — to the concept of ransomware. And spyware breaches like the SolarWinds hack of 2020 have shown that even the most sensitive government data isn’t immune to prying eyes.
In 2021, Americans finally seemed to wake up to the threat when the Colonial Pipeline suffered a massive ransomware attack. The six-day disruption was enough to wreak havoc across much of the east coast’s gasoline supply.
But you think that was worrying… imagine what could come next.
As more IoT devices are connected to the internet, the range of potential hacking targets will only grow. And while having your smart lights hacked might be an annoyance, doing the same to a gas heater or moving vehicle could have far worse consequences.
Cybersecurity firms are fighting back. And as cybercriminals become ever more sophisticated, these firms will quickly become the superstars of tomorrow’s high-stakes battles.
P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at feedback@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post 2 Top Cybersecurity Stocks to “Set It and Forget It” 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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Source: Creativa Images / Shutterstock.com 2 Top Cybersecurity Stocks to “Set It and Forget It” Okta (NASDAQ:OKTA)… Palo Alto Networks (NASDAQ:PANW)… DataDog (NASDAQ:DDOG)… There’s no shortage of cybersecurity stocks vying to become… well… top dog. We have a “seemingly pathological need to connect everything to the internet,” former Director of the Cybersecurity and Infrastructure Security Agency Chris Krebs bluntly said in an address to Congress, calling the situation a “dumpster fire.” And he’s right. Though the market cycle suggests several more months of drawdowns, these set-it-and-forget-it companies are the kind of growth stocks that the Profit & Protection trading system shows outperform over time.
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Source: Creativa Images / Shutterstock.com 2 Top Cybersecurity Stocks to “Set It and Forget It” Okta (NASDAQ:OKTA)… Palo Alto Networks (NASDAQ:PANW)… DataDog (NASDAQ:DDOG)… There’s no shortage of cybersecurity stocks vying to become… well… top dog. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This article is excerpted from Tom Yeung’s Moonshot Investor newsletter. The cybersecurity firm operates the Zscaler Zero Trust Exchange, a platform for previously unknown devices to access secure systems.
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Source: Creativa Images / Shutterstock.com 2 Top Cybersecurity Stocks to “Set It and Forget It” Okta (NASDAQ:OKTA)… Palo Alto Networks (NASDAQ:PANW)… DataDog (NASDAQ:DDOG)… There’s no shortage of cybersecurity stocks vying to become… well… top dog. Cybersecurity Threats Continue Growing On Tuesday, Zoom Communications (NASDAQ:ZM) revealed that a security researcher at Google’s Project Zero had discovered four security vulnerabilities that could let attackers hack victims “just by sending them a message.” Just last week, a study published by the Pew Charitable Trusts found that hospital patients are becoming increasingly at risk of ransomware attacks. Though the market cycle suggests several more months of drawdowns, these set-it-and-forget-it companies are the kind of growth stocks that the Profit & Protection trading system shows outperform over time.
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Source: Creativa Images / Shutterstock.com 2 Top Cybersecurity Stocks to “Set It and Forget It” Okta (NASDAQ:OKTA)… Palo Alto Networks (NASDAQ:PANW)… DataDog (NASDAQ:DDOG)… There’s no shortage of cybersecurity stocks vying to become… well… top dog. CrowdStrike (CRWD) Close behind is CrowdStrike (NASDAQ:CRWD), a leader in endpoint security. CrowdStrike has less upside than firms like ZScaler.
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d54e9908-32b6-4a15-a874-bbbc3902b309
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718640.0
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2022-05-27 00:00:00 UTC
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Why CrowdStrike, MongoDB, and Datadog Spiked Higher Today
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DDOG
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https://www.nasdaq.com/articles/why-crowdstrike-mongodb-and-datadog-spiked-higher-today
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nan
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nan
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What happened
Shares of CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) all spiked on Friday, up 5.5%, 6.3%, and 7.2%, respectively, as of 1:22 p.m. EDT. There wasn't any material news out of these companies today. However, two main factors seem to be behind today's bounce.
First, there were some better-than-expected earnings out of software peers today. Second, some additional inflation readings came out, providing hints that inflation may have peaked.
So what
On Friday, the Personal Consumption Expenditures index (PCE) was released by the Commerce Department, showing slowing inflation in April relative to March -- although it was still high by recent historical standards. The PCE differs from the Consumer Price Index (CPI) released earlier this month in that it weighs certain household expenditures differently and accounts for consumers substituting goods and services for other goods and services as relative prices change.
The PCE number for April came in at just a 0.2% rise from March, a big step-down after March logged a 0.9% month-over-month rise. On a year-over-year basis, the rise was 6.3%, down from 6.6% in the prior month.
However, before we break out the champagne, "core" PCE, excluding volatile food and energy prices, rose 0.3% month over month, the same as March. That being said, the year-over-year core PCE rate decelerated to 4.9%, down from 5.2% in March.
Still, the slight deceleration was enough to boost stocks that are highly sensitive to interest rates, and this includes high-growth stocks with profits far out in the future like these three all-star tech names.
The qualities of these tech names isn't really in question, but rather, what investors are willing to pay for them. CrowdStrike continues to be a disruptive leader in cloud-based cybersecurity. MongoDB is similarly disrupting the massive database industry. Meanwhile, Datadog's cloud-based observability software is critical to the security and functioning of a company's software applications.
Additionally, all three of these companies provide mission-critical products for enterprises and are showing very high revenue growth. CrowdStrike's revenue was up 62.7%, MongoDB's was up 55.8%, and Datadog's was up 82.8% in their most recent quarters.
Additionally, CrowdStrike's cybersecurity peer Zscaler (NASDAQ: ZS) reported better-than-expected numbers today while also boosting its guidance. That helped sentiment around the cybersecurity software space today.
Image source: Getty Images.
Now what
Today was a very nice day for high-growth stocks, but there's still considerable uncertainty ahead. As we see, these stocks are highly sensitive to inflation and interest rates.
Although today was sort of a good day on that front, inflation is still high, and there's a wide variance of opinion as to how fast it will come down and when. Additionally, investors will get more information on CrowdStrike and MongoDB next week, when each will report earnings.
Although each of these three stocks have come down a lot, they're still highly valued based on their sales, relative to pre-2020 history. Therefore, investors should have a long-term view for profitability on each of these names, and perhaps try to construct a discounted cash flow model to see whether they've fallen far enough for one's taste.
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Billy Duberstein has the following options: short January 2023 $60 puts on CrowdStrike Holdings, Inc. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends CrowdStrike Holdings, Inc., Datadog, MongoDB, and Zscaler. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) all spiked on Friday, up 5.5%, 6.3%, and 7.2%, respectively, as of 1:22 p.m. EDT. So what On Friday, the Personal Consumption Expenditures index (PCE) was released by the Commerce Department, showing slowing inflation in April relative to March -- although it was still high by recent historical standards. Additionally, CrowdStrike's cybersecurity peer Zscaler (NASDAQ: ZS) reported better-than-expected numbers today while also boosting its guidance.
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What happened Shares of CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) all spiked on Friday, up 5.5%, 6.3%, and 7.2%, respectively, as of 1:22 p.m. EDT. That being said, the year-over-year core PCE rate decelerated to 4.9%, down from 5.2% in March. Still, the slight deceleration was enough to boost stocks that are highly sensitive to interest rates, and this includes high-growth stocks with profits far out in the future like these three all-star tech names.
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What happened Shares of CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) all spiked on Friday, up 5.5%, 6.3%, and 7.2%, respectively, as of 1:22 p.m. EDT. Still, the slight deceleration was enough to boost stocks that are highly sensitive to interest rates, and this includes high-growth stocks with profits far out in the future like these three all-star tech names. Additionally, CrowdStrike's cybersecurity peer Zscaler (NASDAQ: ZS) reported better-than-expected numbers today while also boosting its guidance.
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What happened Shares of CrowdStrike (NASDAQ: CRWD), MongoDB (NASDAQ: MDB), and Datadog (NASDAQ: DDOG) all spiked on Friday, up 5.5%, 6.3%, and 7.2%, respectively, as of 1:22 p.m. EDT. So what On Friday, the Personal Consumption Expenditures index (PCE) was released by the Commerce Department, showing slowing inflation in April relative to March -- although it was still high by recent historical standards. As we see, these stocks are highly sensitive to inflation and interest rates.
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ff4ce0c4-5458-4d67-be52-56e7f3a09905
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718641.0
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2022-05-26 00:00:00 UTC
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Datadog (DDOG) Accomplishes AWS Education Competent Status
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-accomplishes-aws-education-competent-status
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nan
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nan
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Datadog DDOG recently achieved Amazon AMZN Web Services (AWS) Education Competency status.
The recognition proves that Datadog has demonstrated technical proficiency and success in building solutions that support customers’ critical workloads in K-12 primary/secondary, higher education, research and publishing sectors.
Amazon Web Services’ established AWS Competency Program to help customers identify technology and consulting partners with experience and deep industry expertise.
Achieving the AWS Education Competency status proves that Datadog has earned its place within the AWS Partner Network. The event confirms that Datadog’s specialized solutions align with AWS architectural practices and support the academic experiences of learners and teachers and the operational needs of administrators.
To receive the recognition, Datadog underwent an assessment based on its solutions’ performance, reliability and security, thus validating its deep AWS expertise.
Receiving this designation is expected to help the company boost customer growth in the education market in the near term as its real-time monitoring solutions help maintain uptime for educational institutions.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog’s Education Monitoring Solutions to Aid Prospects
With the onset of the COVID-19 pandemic, millions of students around the globe became distant from their classrooms. Though initially unprepared, schools and universities all over the world began unearthing opportunities to deliver superior digital learning experiences to students. But there are several challenges to delivering virtual smart classroom learning experiences using the existing network and IT infrastructure.
To cater to real-time solutions and deal with the mission-critical workloads of educational institutions, Datadog has been upgrading its educational monitoring solutions. As educational enterprises rapidly migrate to digitization and the cloud, the company is witnessing robust demand for its network performance and infrastructure monitoring solutions.
Per a Research and Market report, the global digital education content market is expected to reach $108 billion by 2026, at a CAGR of 11.11%. The K-12 education segment is anticipated to grow at 12.6%, reaching $61.1 billion by 2026. The higher education segment is readjusted to a revised CAGR of 9.8%.
With the effort to modernize the learning environment, institutions and administrators face the challenge of safely replacing legacy systems and learning to manage new, highly-distributed infrastructure at scale.
This is where Datadog’s real-time monitoring solutions come in. The solutions unify data from legacy and cloud-based systems, allowing educational enterprises to monitor every stage of their digital transformation.
Owing to the visibility of these solutions, institutions can improve the speed and reliability of their devices. It also enables them to deliver a better experience to the learners, educators and administrators, while simultaneously keeping their IT costs minimal and reducing risks.
Datadog platform also implements various security measures like encrypting data with Transport Layer Security (TLS) and HTTP Strict Transport Security (HSTS) and automatically scanning logs to discover, classify and protect sensitive student information.
The company gains from the growing demand for its infrastructure cloud services. In June, the company expanded its Watchdog AI capabilities to include Root Cause Analysis and Log Anomaly Detection, which helps detect network and data issues across infrastructure and services. Growth in usage from existing customers, as they continued on their cloud migration and digital transformation journeys, continues to benefit the company.
DDOG’s focus on growing partnerships has increased the visibility of its cloud solutions among consumers, which contributes to its business growth and customer base.
Earlier this year, Datadog was chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework.
Per the Datadog-Microsoft partnership, Datadog will integrate its monitoring and security capabilities with Azure’s full suite of services, thus helping organizations accelerate their cloud adoption process.
In the present situation, organizations across industries, from education to retail, need to embrace digital conversion soon. As a monitoring and security platform for cloud applications, Datadog has a strategic advantage and anticipates witnessing robust growth in the ongoing fiscal year.
Zacks Rank and Stock to Consider
Currently, Datadog has a Zacks Rank #3 (Hold)
Datadog’s shares are down 50.2% year to date compared with the Zacks Internet - Software industry’s fall of 51.1% and the Computer and Technology sector’s decline of 31%.
A better-ranked stock in the Zacks Computer & Technology sector is Ceridian HCM CDAY, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CDAY has plunged 47.6% year to date.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Ceridian HCM (CDAY): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog DDOG recently achieved Amazon AMZN Web Services (AWS) Education Competency status. DDOG’s focus on growing partnerships has increased the visibility of its cloud solutions among consumers, which contributes to its business growth and customer base. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog DDOG recently achieved Amazon AMZN Web Services (AWS) Education Competency status. DDOG’s focus on growing partnerships has increased the visibility of its cloud solutions among consumers, which contributes to its business growth and customer base. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog DDOG recently achieved Amazon AMZN Web Services (AWS) Education Competency status. DDOG’s focus on growing partnerships has increased the visibility of its cloud solutions among consumers, which contributes to its business growth and customer base. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog DDOG recently achieved Amazon AMZN Web Services (AWS) Education Competency status. DDOG’s focus on growing partnerships has increased the visibility of its cloud solutions among consumers, which contributes to its business growth and customer base. Datadog, Inc. (DDOG): Free Stock Analysis Report
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c38bf456-a9bf-40dd-b1e4-3276f3d09496
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718642.0
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2022-05-26 00:00:00 UTC
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Nasdaq 100 Movers: KHC, DLTR
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-khc-dltr
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nan
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nan
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In early trading on Thursday, shares of Dollar Tree topped the list of the day's best performing components of the Nasdaq 100 index, trading up 17.8%. Year to date, Dollar Tree registers a 12.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is Kraft Heinz, trading down 6.3%. Kraft Heinz is showing a gain of 3.1% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 4.3%, and Baidu, trading up 10.4% on the day.
VIDEO: Nasdaq 100 Movers: KHC, DLTR
The views and 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 Kraft Heinz, trading down 6.3%. Kraft Heinz is showing a gain of 3.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: KHC, DLTR The views and 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 Dollar Tree topped the list of the day's best performing components of the Nasdaq 100 index, trading up 17.8%. Year to date, Dollar Tree registers a 12.0% gain. And the worst performing Nasdaq 100 component thus far on the day is Kraft Heinz, trading down 6.3%.
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In early trading on Thursday, shares of Dollar Tree topped the list of the day's best performing components of the Nasdaq 100 index, trading up 17.8%. And the worst performing Nasdaq 100 component thus far on the day is Kraft Heinz, trading down 6.3%. VIDEO: Nasdaq 100 Movers: KHC, DLTR The views and 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 Dollar Tree topped the list of the day's best performing components of the Nasdaq 100 index, trading up 17.8%. And the worst performing Nasdaq 100 component thus far on the day is Kraft Heinz, trading down 6.3%. VIDEO: Nasdaq 100 Movers: KHC, DLTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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a538a904-a8ac-4043-9e48-5b9592e4b283
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718643.0
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2022-05-26 00:00:00 UTC
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How The Pieces Add Up: VUG Headed For $328
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DDOG
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https://www.nasdaq.com/articles/how-the-pieces-add-up%3A-vug-headed-for-%24328
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Growth ETF (Symbol: VUG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $328.09 per unit.
With VUG trading at a recent price near $230.49 per unit, that means that analysts see 42.34% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VUG's underlying holdings with notable upside to their analyst target prices are Snowflake Inc (Symbol: SNOW), Datadog Inc (Symbol: DDOG), and The Trade Desk Inc (Symbol: TTD). Although SNOW has traded at a recent price of $132.77/share, the average analyst target is 106.99% higher at $274.82/share. Similarly, DDOG has 94.27% upside from the recent share price of $88.73 if the average analyst target price of $172.38/share is reached, and analysts on average are expecting TTD to reach a target price of $85.00/share, which is 83.47% above the recent price of $46.33. Below is a twelve month price history chart comparing the stock performance of SNOW, DDOG, and TTD:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard Growth ETF VUG $230.49 $328.09 42.34%
Snowflake Inc SNOW $132.77 $274.82 106.99%
Datadog Inc DDOG $88.73 $172.38 94.27%
The Trade Desk Inc TTD $46.33 $85.00 83.47%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vanguard Growth ETF VUG $230.49 $328.09 42.34% Snowflake Inc SNOW $132.77 $274.82 106.99% Datadog Inc DDOG $88.73 $172.38 94.27% The Trade Desk Inc TTD $46.33 $85.00 83.47% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VUG's underlying holdings with notable upside to their analyst target prices are Snowflake Inc (Symbol: SNOW), Datadog Inc (Symbol: DDOG), and The Trade Desk Inc (Symbol: TTD). Similarly, DDOG has 94.27% upside from the recent share price of $88.73 if the average analyst target price of $172.38/share is reached, and analysts on average are expecting TTD to reach a target price of $85.00/share, which is 83.47% above the recent price of $46.33.
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Three of VUG's underlying holdings with notable upside to their analyst target prices are Snowflake Inc (Symbol: SNOW), Datadog Inc (Symbol: DDOG), and The Trade Desk Inc (Symbol: TTD). Similarly, DDOG has 94.27% upside from the recent share price of $88.73 if the average analyst target price of $172.38/share is reached, and analysts on average are expecting TTD to reach a target price of $85.00/share, which is 83.47% above the recent price of $46.33. Vanguard Growth ETF VUG $230.49 $328.09 42.34% Snowflake Inc SNOW $132.77 $274.82 106.99% Datadog Inc DDOG $88.73 $172.38 94.27% The Trade Desk Inc TTD $46.33 $85.00 83.47% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, DDOG has 94.27% upside from the recent share price of $88.73 if the average analyst target price of $172.38/share is reached, and analysts on average are expecting TTD to reach a target price of $85.00/share, which is 83.47% above the recent price of $46.33. Three of VUG's underlying holdings with notable upside to their analyst target prices are Snowflake Inc (Symbol: SNOW), Datadog Inc (Symbol: DDOG), and The Trade Desk Inc (Symbol: TTD). Below is a twelve month price history chart comparing the stock performance of SNOW, DDOG, and TTD: Below is a summary table of the current analyst target prices discussed above:
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Vanguard Growth ETF VUG $230.49 $328.09 42.34% Snowflake Inc SNOW $132.77 $274.82 106.99% Datadog Inc DDOG $88.73 $172.38 94.27% The Trade Desk Inc TTD $46.33 $85.00 83.47% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VUG's underlying holdings with notable upside to their analyst target prices are Snowflake Inc (Symbol: SNOW), Datadog Inc (Symbol: DDOG), and The Trade Desk Inc (Symbol: TTD). Similarly, DDOG has 94.27% upside from the recent share price of $88.73 if the average analyst target price of $172.38/share is reached, and analysts on average are expecting TTD to reach a target price of $85.00/share, which is 83.47% above the recent price of $46.33.
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dac7a19a-2621-41cf-a3e4-dfff9a6645e8
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718644.0
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2022-05-23 00:00:00 UTC
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5 Oversold Cybersecurity Stocks to Buy Now
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DDOG
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https://www.nasdaq.com/articles/5-oversold-cybersecurity-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These oversold cybersecurity stocks are well-positioned to capitalize on the strong spend forecast for securing networks and data
Zscaler (ZS): Technology and execution make it an attractive buy
Cloudflare (NET): Massive global data center network and consistently strong revenue growth
SentinelOne (S): Leveraging strong market opportunities and growing both organically and inorganically
Datadog(DDOG): Simplifies surveillance job for customers
Rapid7 (RPD): A beneficiary of the best-of-the-worlds of security and IT operations
Source: Shutterstock
Investors oversold cybersecurity stocks in response to a volatile market, but cybersecurity is now an essential need for many businesses. This software plays a key role in the evolving scenario of digital transformation, cloud computing and Web3.
The need for cybersecurity solutions is only going to grind higher amid the rapid changes in technologies, especially since the hybrid work environment is here to stay.
7 REITs to Buy for the Second Half of 2022
The global cyber security market, estimated at $184.93 billion in 2021, remains poised to grow at a compounded annual growth rate (CAAGR) of 12% from 2022 to 2030.
Estimates collated by McKinsey show that about $101.5 billion would be spend on cybersecurity service providers by 2025.
Costs related to cybercrime will increase 15% annually to reach $10.5 trillion in 2025. The management consultancy firm also noted that 85% of small- and mid-size enterprises plan to increase IT security spending until 2023.
ZS Zscaler $128.09
NET Cloudflare $53.36
S SentinelOne $21.59
DDOG Datadog $88.07
RPD Rapid7 $66.82
Zscaler (ZS)
Source: Sundry Photography / Shutterstock.com
Zscaler (NASDAQ:ZS) is a software-as-a-service (SaaS) security cloud platform and scalable cloud architecture.
The company’s total serviceable market opportunity is estimated at $72 billion. Between 2017 and 2021, revenue grew at a CAGR of 52%.
Zscaler’s “Zero Trust” is a framework for securing organizations in the cloud and mobile. It is different from the conventional security options such as firewall/VPN, which work well for on-premise network security.
Sell-side analysts recently took down their price targets for Zscaler stock even while maintaining their bullish stances. Analysts attributed the downward price target adjustments to broader market correction in valuations. Still, this is one of the oversold cybersecurity stocks you really want to keep an eye on.
Zscaler stock has pulled about 55% in the year-to-date period. The average analysts’ price target, according to TipRanks is $286.87, which suggests more than 100% upside from current levels.
Cloudflare (NET)
Source: IgorGolovniov / Shutterstock.com
Cloudflare (NYSE:NET) provides users with resources to make their sites, apps and blogs safe and efficient through the use of its powerful edge network.
The company also provides security from malicious activity like DDoS attacks, malicious bots and other nefarious intrusions.
Datadog claims that 95% of the world population is within 50 meters of a Cloudflare data center. This helps maximize customers’ website efficiency, security, and performance.
7 Dividend Stocks to Boost Your Retirement Savings
Cloudflare’s revenue grew at a CAGR of 51% between 2019 and 2021, and it derives more than 50% of its revenue from large customers. The company has over 154,000 paying customers. Total addressable market will be around $115 billion in 2022, the company said in a recent presentation.
The broader market sell-off has dragged the stock lower by about 56% year-to-date. Going by the average analysts’ price target of $104.46, there is scope for over 100% upside potential.
SentinelOne (S)
Source: Tada Images / Shutterstock.com
SentinelOne (NYSE:S) is an SaaS provider of technology to keep enterprises safe from cyber threats. Founded in 2013, the company has an AI-driven autonomous cybersecurity platform called Singularity XDR.
It also runs an advanced threat research division called SentinelLabs.
Revenue growth for the fiscal year 2022 that ended January 2022 was at a strong 120% to $204.8 million. The topline growth was aided by a 123% jump in annual recurring revenue and margin expansion.
Apart from organic growth, SentinelOne has been vigorous with acquisitions. Its recent buys include high-speed logging startup Scalyr, and identity threat detection and response technology provider Attivo Networks.
The company is optimistic of the momentum continuing into the coming years. It said in a letter to its shareholders that its expanded offerings have positioned the company “for further success.”
The shares of SentinelOne, which went public in June 2021, have lost more than 47% year to date. Analysts, on average, have a price target of $47, suggesting nearly a 100% upside from current levels.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) is a SaaS monitoring and security platform for cloud applications.
The platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide “unified, real-time observability” of the entire technology stack of clients
At the end of the March quarter, the company had 19,800 customers, with 2,250 of them contributing annual recurring revenue of over $100,000.
7 Dividend Stocks to Boost Your Retirement Savings
Annual revenue climbed 70% to $1.03 billion in 2021 and the non-GAAP net income was at $0.48. Datadog’s addressable market opportunity is around $42 billion in 2022, the company said in its recent investor presentation.
Datadog upwardly revised its 2022 expectations recently, with the new guidance calling for nearly 60% revenue growth and over 50% improvement in non-GAAP earnings per share.
The stock has shed about 42% since the start of the year. The average analysts’ price target of $167.06.
Rapid7 (RPD)
Source: TierneyMJ / Shutterstock.com
Rapid7 (NASDAQ:RPD) is a provider of SecOps, a term used to denote both security and operations.
The company’s “Insight” platform collects data across a clients environment, making it easy for them to manage vulnerabilities, monitor for malicious behavior, investigate and shut down attacks and automate operations.
The company grew revenue by 30% to $535.4 million in 2021 and average recurring revenue increased 17%. The guidance for the next fiscal calls for 27-29% revenue growth to $686 million to $692 million and a reversal to a profit on a non-GAAP basis.
Rpaid7 stock has slumped over 40% year to date. At current levels, this is one of the oversold cybersecurity stocks because of its upside potential. The average analyst price is $122.55.
On the date of publication, Shanthi Rexaline 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.
The post 5 Oversold Cybersecurity Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips These oversold cybersecurity stocks are well-positioned to capitalize on the strong spend forecast for securing networks and data Zscaler (ZS): Technology and execution make it an attractive buy Cloudflare (NET): Massive global data center network and consistently strong revenue growth SentinelOne (S): Leveraging strong market opportunities and growing both organically and inorganically Datadog(DDOG): Simplifies surveillance job for customers Rapid7 (RPD): A beneficiary of the best-of-the-worlds of security and IT operations Source: Shutterstock Investors oversold cybersecurity stocks in response to a volatile market, but cybersecurity is now an essential need for many businesses. ZS Zscaler $128.09 NET Cloudflare $53.36 S SentinelOne $21.59 DDOG Datadog $88.07 RPD Rapid7 $66.82 Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a software-as-a-service (SaaS) security cloud platform and scalable cloud architecture. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a SaaS monitoring and security platform for cloud applications.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips These oversold cybersecurity stocks are well-positioned to capitalize on the strong spend forecast for securing networks and data Zscaler (ZS): Technology and execution make it an attractive buy Cloudflare (NET): Massive global data center network and consistently strong revenue growth SentinelOne (S): Leveraging strong market opportunities and growing both organically and inorganically Datadog(DDOG): Simplifies surveillance job for customers Rapid7 (RPD): A beneficiary of the best-of-the-worlds of security and IT operations Source: Shutterstock Investors oversold cybersecurity stocks in response to a volatile market, but cybersecurity is now an essential need for many businesses. ZS Zscaler $128.09 NET Cloudflare $53.36 S SentinelOne $21.59 DDOG Datadog $88.07 RPD Rapid7 $66.82 Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a software-as-a-service (SaaS) security cloud platform and scalable cloud architecture. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a SaaS monitoring and security platform for cloud applications.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips These oversold cybersecurity stocks are well-positioned to capitalize on the strong spend forecast for securing networks and data Zscaler (ZS): Technology and execution make it an attractive buy Cloudflare (NET): Massive global data center network and consistently strong revenue growth SentinelOne (S): Leveraging strong market opportunities and growing both organically and inorganically Datadog(DDOG): Simplifies surveillance job for customers Rapid7 (RPD): A beneficiary of the best-of-the-worlds of security and IT operations Source: Shutterstock Investors oversold cybersecurity stocks in response to a volatile market, but cybersecurity is now an essential need for many businesses. ZS Zscaler $128.09 NET Cloudflare $53.36 S SentinelOne $21.59 DDOG Datadog $88.07 RPD Rapid7 $66.82 Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a software-as-a-service (SaaS) security cloud platform and scalable cloud architecture. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a SaaS monitoring and security platform for cloud applications.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips These oversold cybersecurity stocks are well-positioned to capitalize on the strong spend forecast for securing networks and data Zscaler (ZS): Technology and execution make it an attractive buy Cloudflare (NET): Massive global data center network and consistently strong revenue growth SentinelOne (S): Leveraging strong market opportunities and growing both organically and inorganically Datadog(DDOG): Simplifies surveillance job for customers Rapid7 (RPD): A beneficiary of the best-of-the-worlds of security and IT operations Source: Shutterstock Investors oversold cybersecurity stocks in response to a volatile market, but cybersecurity is now an essential need for many businesses. ZS Zscaler $128.09 NET Cloudflare $53.36 S SentinelOne $21.59 DDOG Datadog $88.07 RPD Rapid7 $66.82 Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a software-as-a-service (SaaS) security cloud platform and scalable cloud architecture. Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) is a SaaS monitoring and security platform for cloud applications.
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1a7da832-2ce2-4ec3-8a44-621d89fb4e16
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718645.0
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2022-05-21 00:00:00 UTC
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3 Explosive Growth Stocks to Buy in 2022 and Beyond
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DDOG
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https://www.nasdaq.com/articles/3-explosive-growth-stocks-to-buy-in-2022-and-beyond
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nan
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nan
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Many growth stocks were crushed over the past few months as rising rates drove investors toward safer blue chip plays. However, that brutal sell-off has also compressed the valuations of the market's priciest growth stocks to more sustainable levels -- so investors who can stomach the near-term volatility might find some great bargains in this tough market.
Today, I'll review three high-growth tech stocks that could still be worth buying this year: Zscaler (NASDAQ: ZS), Datadog (NASDAQ: DDOG), and JFrog (NASDAQ: FROG).
Image source: Getty Images.
1. Zscaler
Zscaler's cloud-native platform secures networks with "zero trust" tools which treat everyone -- even "trusted" employees -- as potential threats. As a cloud-based service, it eliminates the need for on-site appliances. This lightweight approach is easier to scale as an organization expands.
When Zscaler went public in 2018, it served roughly 2,800 customers and approximately 10% of the Global 2000. Today, it serves more than 5,600 customers and over a quarter of the Global 2000.
Its revenue rose 56% year over year to $673 million in fiscal 2021, which ended last July, and it expects 55% to 56% growth in fiscal 2022.
Zscaler isn't yet profitable on a generally accepted accounting principles (GAAP) basis, but its non-GAAP earnings are improving. Its non-GAAP net income rose 86% to $75.7 million in fiscal 2021 as its non-GAAP earnings per share (EPS) increased 73%. It expects its non-GAAP EPS to grow 4% to 8% this year.
In late March, I said I admired Zscaler's business but was hesitant to buy the stock at more than 30 times this year's sales. But today, it trades at a more reasonable 17 times sales. It's not a screaming bargain yet, but its robust growth rates could justify that premium valuation.
2. Datadog
Datadog's platform monitors databases, servers, and apps across an entire organization in real time. It pulls all that data onto unified dashboards, where it can be more easily monitored by IT professionals. This streamlined approach makes it much easier to spot and diagnose problems.
Datadog's number of customers that generated at least $100,000 in annual recurring revenue (ARR) rose 63% to 2,010 year over year in 2021. Its number of customers with at least $1 million in ARR also increased 114% to 214. Its dollar-based net retention rate has also consistently stayed above 130%.
Datadog's revenue surged 70% to $1.03 billion in 2021. Its non-GAAP net income jumped 133% to $167 million and its non-GAAP EPS rose 118%. It also turned profitable on a GAAP basis in the fourth quarter of the year.
It expects its revenue to rise 55% to 57% this year, and for its non-GAAP EPS to grow 46% to 70%. That outlook is impressive, but I was also reluctant to buy the stock at over 30 times sales earlier this year. Today, it trades at 17 times this year's sales -- so it might be the right time to start accumulating some shares of this high-growth software company.
3. JFrog
JFrog's main platform, Artifactory, is a universal repository for automated software updates. Instead of relying on human employees to manually update an organization's software -- which can be buggy, time-consuming, and prone to human error -- Artifactory automatically transfers and applies those updates across a wide range of computing platforms.
JFrog went public in late 2020. Its total number of enterprise customers rose 10% year over year to 6,650 in 2021, and its number of customers that generated more than $100,000 in ARR rose 53% to 537. It also ended the year with an impressive trailing-12-month net dollar retention rate of 130%.
JFrog's revenue rose 37% to $207 million in 2021, and it anticipates 34% to 35% growth in 2022. Its non-GAAP net income declined 80% to $2.7 million in 2021 as its non-GAAP EPS dropped 77%, but that drop was mainly caused by two recent acquisitions. It expects that spending to continue in 2022 and reduce its non-GAAP EPS to nearly break-even levels.
That bottom-line pressure spooked the bulls, but JFrog's gross margins are still expanding. Its stock also looks attractively valued at just 6 times this year's sales, compared with its double-digit price-to-sales ratios a year ago, so it could be a great long-term buy for patient investors.
10 stocks we like better than Zscaler
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 Zscaler wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 27, 2022
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog, JFrog Ltd., and Zscaler. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today, I'll review three high-growth tech stocks that could still be worth buying this year: Zscaler (NASDAQ: ZS), Datadog (NASDAQ: DDOG), and JFrog (NASDAQ: FROG). Many growth stocks were crushed over the past few months as rising rates drove investors toward safer blue chip plays. Zscaler isn't yet profitable on a generally accepted accounting principles (GAAP) basis, but its non-GAAP earnings are improving.
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Today, I'll review three high-growth tech stocks that could still be worth buying this year: Zscaler (NASDAQ: ZS), Datadog (NASDAQ: DDOG), and JFrog (NASDAQ: FROG). Its revenue rose 56% year over year to $673 million in fiscal 2021, which ended last July, and it expects 55% to 56% growth in fiscal 2022. Its non-GAAP net income rose 86% to $75.7 million in fiscal 2021 as its non-GAAP earnings per share (EPS) increased 73%.
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Today, I'll review three high-growth tech stocks that could still be worth buying this year: Zscaler (NASDAQ: ZS), Datadog (NASDAQ: DDOG), and JFrog (NASDAQ: FROG). Its total number of enterprise customers rose 10% year over year to 6,650 in 2021, and its number of customers that generated more than $100,000 in ARR rose 53% to 537. Its stock also looks attractively valued at just 6 times this year's sales, compared with its double-digit price-to-sales ratios a year ago, so it could be a great long-term buy for patient investors.
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Today, I'll review three high-growth tech stocks that could still be worth buying this year: Zscaler (NASDAQ: ZS), Datadog (NASDAQ: DDOG), and JFrog (NASDAQ: FROG). It expects its revenue to rise 55% to 57% this year, and for its non-GAAP EPS to grow 46% to 70%. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Zscaler wasn't one of them!
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2e8d9cc3-8675-404f-b3c0-0e6b25738f92
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718646.0
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2022-05-19 00:00:00 UTC
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Why Snowflake, Datadog, and HubSpot Rallied Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-datadog-and-hubspot-rallied-today
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nan
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nan
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What happened
Shares of enterprise software stars Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallied today, up 9.2%, 11.5%, and 9.1%, respectively, as of 12:56 p.m. ET.
There wasn't any material news out of these three high-growth stocks. As with so many market moves these days outside of earnings, macroeconomic factors -- especially those related to long-term bond yields -- told the story.
So what
Yesterday was a brutal day for the markets and the technology sector, and these three enterprise software companies were no exception. However, they're bouncing back much more than other stocks that also fell yesterday. The two stocks mainly responsible for yesterday's crash -- Target and Walmart -- are actually down again today.
Those consumer staples stocks had held up relatively well this year as tech swooned. However, Walmart's and Target's earnings report showed mediocre revenue growth but also a plunge in earnings and forward earnings guidance as costs exploded. That seemed to indicate a stagflationary scenario, reigniting recession fears.
High-multiple tech stocks like Snowflake, Datadog, and HubSpot had already crashed somewhat amid fears of higher interest rates, as the 10-year Treasury bond, often used as a baseline for discount rates on stocks, rocketed from around 1.63% at the beginning of the year to a yearly high of 3.17% in early May. However, with fears that the Federal Reserve will tighten the economy into a recession, the 10-year Treasury yield has actually fallen a bit to 2.83% as of today. That indicates investors see weaker growth and inflation than they did two weeks ago. When long-term bond yields fall, that actually helps these growth stocks, none of which makes material profits today, with most of their profits and cash flows well out into the future.
Ironically, a lower-growth or recessionary environment could actually benefit these three stocks. First of all, they are somewhat insulated from inflationary pressures. Although they have to worry about software engineering salaries and data center costs, they don't have to ship products from here to there like retailers do. Additionally, each will grow, even in a recessionary economy, due to their strong software services and secular tailwinds.
Snowflake grew revenue 101.5% last quarter, as its cloud-based data lake service has proven a key tool in the big data economy. For instance, just yesterday, Snowflake announced a partnership with giant payments company Stripe, allowing retailers to share and integrate their payments data with other industry data to glean powerful insights.
Datadog also reported a very impressive 82.8% growth last quarter, as its software observability services help protect enterprise applications and assist them in running smoothly in the cloud. And HubSpot saw 40.6% growth last quarter, as its digital marketing and customer relationship management suite aid businesses in reaching customers and organizing customer information in the new digital world.
With these stocks down so much already from their highs -- Snowflake is down 64%, Datadog is down 50%, and HubSpot is down 60% -- and with long-term yields falling, these growth stocks are catching a bid today, as investors bottom-fish.
Image source: Getty Images.
Now what
The big question is, have these stocks really bottomed? That's an impossible question to answer. While it could be that these growth stocks are near a bottom, I also wouldn't expect them to get back to their all-time highs anytime soon. The Fed will be raising rates until inflation comes down, and it doesn't appear we are going back to the environment of super-low interest rates and quantitative easing we saw in 2020 and 2021.
Meanwhile, Snowflake still trades at 35 times sales, Datadog still trades at 24 times sales, and HubSpot still trades at 11 times sales. Relative to history, those are still expensive valuations, despite how far these stocks have fallen.
While young, very-long-term-oriented investors may think about taking a position here, investors should still leave open the possibility of more declines, or lackluster returns, in the near term. One day does not make a trend.
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 April 27, 2022
Billy Duberstein has no position in any of the stocks mentioned. His clients may have positions in the stocks mentioned. The Motley Fool has positions in and recommends Datadog, HubSpot, 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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What happened Shares of enterprise software stars Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallied today, up 9.2%, 11.5%, and 9.1%, respectively, as of 12:56 p.m. As with so many market moves these days outside of earnings, macroeconomic factors -- especially those related to long-term bond yields -- told the story. Although they have to worry about software engineering salaries and data center costs, they don't have to ship products from here to there like retailers do.
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What happened Shares of enterprise software stars Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallied today, up 9.2%, 11.5%, and 9.1%, respectively, as of 12:56 p.m. High-multiple tech stocks like Snowflake, Datadog, and HubSpot had already crashed somewhat amid fears of higher interest rates, as the 10-year Treasury bond, often used as a baseline for discount rates on stocks, rocketed from around 1.63% at the beginning of the year to a yearly high of 3.17% in early May. Meanwhile, Snowflake still trades at 35 times sales, Datadog still trades at 24 times sales, and HubSpot still trades at 11 times sales.
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What happened Shares of enterprise software stars Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallied today, up 9.2%, 11.5%, and 9.1%, respectively, as of 12:56 p.m. High-multiple tech stocks like Snowflake, Datadog, and HubSpot had already crashed somewhat amid fears of higher interest rates, as the 10-year Treasury bond, often used as a baseline for discount rates on stocks, rocketed from around 1.63% at the beginning of the year to a yearly high of 3.17% in early May. With these stocks down so much already from their highs -- Snowflake is down 64%, Datadog is down 50%, and HubSpot is down 60% -- and with long-term yields falling, these growth stocks are catching a bid today, as investors bottom-fish.
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What happened Shares of enterprise software stars Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) rallied today, up 9.2%, 11.5%, and 9.1%, respectively, as of 12:56 p.m. Snowflake grew revenue 101.5% last quarter, as its cloud-based data lake service has proven a key tool in the big data economy. With these stocks down so much already from their highs -- Snowflake is down 64%, Datadog is down 50%, and HubSpot is down 60% -- and with long-term yields falling, these growth stocks are catching a bid today, as investors bottom-fish.
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ddc771b9-b475-4058-ad0a-163c34dc92c7
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718647.0
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2022-05-19 00:00:00 UTC
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Nasdaq 100 Movers: CSCO, SNPS
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-csco-snps
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nan
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nan
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In early trading on Thursday, shares of Synopsys topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.6%. Year to date, Synopsys Inc has lost about 19.7% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Cisco Systems, trading down 14.0%. Cisco Systems is lower by about 34.4% looking at the year to date performance.
Two other components making moves today are Broadcom, trading down 4.8%, and Datadog, trading up 7.3% on the day.
VIDEO: Nasdaq 100 Movers: CSCO, SNPS
The views and 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 Cisco Systems, trading down 14.0%. Cisco Systems is lower by about 34.4% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: CSCO, SNPS The views and 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 Synopsys topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.6%. Year to date, Synopsys Inc has lost about 19.7% of its value. And the worst performing Nasdaq 100 component thus far on the day is Cisco Systems, trading down 14.0%.
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In early trading on Thursday, shares of Synopsys topped the list of the day's best performing components of the Nasdaq 100 index, trading up 8.6%. And the worst performing Nasdaq 100 component thus far on the day is Cisco Systems, trading down 14.0%. Two other components making moves today are Broadcom, trading down 4.8%, and Datadog, trading up 7.3% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Cisco Systems, trading down 14.0%. Cisco Systems is lower by about 34.4% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: CSCO, SNPS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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23da29c4-892b-4f6d-ba12-a019b4c2fa7c
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718648.0
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2022-05-19 00:00:00 UTC
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Nasdaq Bear Market: 2 Excellent Bargains for Investors
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DDOG
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-excellent-bargains-for-investors
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nan
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nan
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Investors are fretting over the uncertain economic outlook and fleeing the stock market. Growth stocks are especially feeling the brunt of the market's sell-off, and as of this writing, the tech-heavy Nasdaq Composite index is down over 27% from its all-time high, comfortably past the bear market threshold of 20%.
The indiscriminate selling, however, is resulting in some excellent buying opportunities for patient long-term investors. Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). Let's see why overlooking these promising businesses now could turn out to be a missed opportunity.
Image source: Getty Images.
1. Datadog: Innovation is expanding its opportunities
Reliable technology infrastructure is not just a nice-to-have in today's digital-first and cloud-powered business world. It is table stakes. Datadog, with its growing breadth and depth of technology monitoring and security products, is helping businesses run their operations without disruptions.
The recently reported first quarter was more evidence that Datadog is an increasingly integral part of modern-day businesses as customers continue to adopt more and more products from the company.
CUSTOMER PRODUCT ADOPTION Q1 2021 Q4 2021 Q1 2022
Customers using 2 or more products 75% 78% 81%
Customers using 4 or more products 25% 33% 35%
Customers using 6 or more products 4% 10% 12%
Data source: Datadog.
Datadog's net dollar-retention rate (how much more the average existing client spends from one year to the next) topped 130% for the 19th consecutive quarter. The company also grew its new customers over 30% year over year, reaching 19,800. And the number of high-value customers (those with $100,000 or more in annual recurring revenue) grew even faster at 60% to 2,250.
With that strong customer momentum, it's no surprise Datadog grew its first-quarter revenue a massive 83% year over year. And the company did that while producing $129.9 million in free cash flow, which is a testament to its efficient execution.
Datadog is entrenching itself deeper into its customers' organizations with a steady stream of new products. In the first quarter, it broadened its security products with its Application Security Monitoring, which protects against hackers targeting code vulnerabilities in web applications. It also expanded its Watchdog AI Engine with key features such as root-cause analysis, which helps pinpoint problems in technology infrastructure automatically.
And it extended its partnership with Microsoft, becoming a partner for its Azure Adoption Framework, where customers get to learn about Datadog's capabilities much sooner in their cloud adoption.
The business is thriving, and the tailwinds of digital transformation bode well. With shares trading around 45% below their all-time high from six months ago and a lower price-to-sales ratio of 29 (relative to the company's historical levels), now is an excellent time to take a position in Datadog.
Data by YCharts.
2. MercadoLibre: A promising future with growing scale
MercadoLibre, founded in 1999 in Argentina, pioneered e-commerce in Latin America. The company operates in 18 countries, although it generates most of its revenue from Brazil, Argentina, and Mexico. Over the years, it has grown its dominance as more and more people enjoy the convenience and speed of its online marketplace and delivery services.
MercadoLibre also makes it easy for customers to pay via its Mercado Pago platform, which started as a digital wallet and payment processing service. It has steadily grown into an all-in-one financial app that offers consumers access to credit cards, installment payments, personal loans, cryptocurrency trading, and other features. While MercadoLibre's e-commerce business brings in customers to shop, Mercado Pago makes those relationships sticky.
The company reported outstanding results for the first quarter. Despite tough year-over-year comparisons (the pandemic dramatically boosted revenue in 2020 and 2021), MercadoLibre grew its top line 63%. Gross merchandise volume, which represents the total monetary value of all items the company sold through its marketplace, reached $7.7 billion, up 27% year over year. Total payment volume (TPV) on the Mercado Pago platform increased 72% to $25.3 billion. To top it off, the company also became profitable on a GAAP basis, recording a net income margin of 2.9%.
MercadoLibre is extending its lead further with its logistics and shipping network, Mercado Envios, which is proving to be transformational for the sellers on its platform. Mercado Envios shipped 22% more items relative to the first quarter of 2021, and about 55% of those shipments were delivered on the same or next day.
Data by YCharts.
Overall, MercadoLibre is deepening its relationships with its customers and expanding access to commerce and financial services throughout Latin America. Thanks to the current market sell-off, shares of MercadoLibre are trading at a price-to-sales multiple of about five, close to their cheapest valuation since the company went public. Looking past the volatility of this bear market and buying shares of this great business now will likely pay handsome rewards in the long run.
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Kaustubh Deshmukh (KD) has positions in Datadog and MercadoLibre. The Motley Fool has positions in and recommends Datadog and MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). The recently reported first quarter was more evidence that Datadog is an increasingly integral part of modern-day businesses as customers continue to adopt more and more products from the company. With shares trading around 45% below their all-time high from six months ago and a lower price-to-sales ratio of 29 (relative to the company's historical levels), now is an excellent time to take a position in Datadog.
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Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). Datadog, with its growing breadth and depth of technology monitoring and security products, is helping businesses run their operations without disruptions. While MercadoLibre's e-commerce business brings in customers to shop, Mercado Pago makes those relationships sticky.
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Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). The recently reported first quarter was more evidence that Datadog is an increasingly integral part of modern-day businesses as customers continue to adopt more and more products from the company. Customers using 2 or more products 75% 78% 81% Customers using 4 or more products 25% 33% 35% Customers using 6 or more products 4% 10% 12% Data source: Datadog.
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Two such businesses with excellent fundamentals are Datadog (NASDAQ: DDOG) and MercadoLibre (NASDAQ: MELI). Growth stocks are especially feeling the brunt of the market's sell-off, and as of this writing, the tech-heavy Nasdaq Composite index is down over 27% from its all-time high, comfortably past the bear market threshold of 20%. Datadog, with its growing breadth and depth of technology monitoring and security products, is helping businesses run their operations without disruptions.
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1530872e-93ca-438d-8015-98e24c56ab9f
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718649.0
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2022-05-19 00:00:00 UTC
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4 Growth Stocks Billionaire Money Managers Piled Into During the First Quarter
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DDOG
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https://www.nasdaq.com/articles/4-growth-stocks-billionaire-money-managers-piled-into-during-the-first-quarter
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nan
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nan
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You might not realize it, but Monday, May 16, 2022, marked one of the most important dates for the investing community. It was the deadline for institutional and hedge-fund managers with at least $100 million in assets under management to file Form 13F with the Securities and Exchange Commission.
In simple terms, a 13F provides an under-the-hood look at what the brightest and most successful money managers bought, sold, and held during the most recently ended quarter (in this case, the first quarter). Although the data is at least six weeks old by the time it's filed, it nevertheless provides clues as to what stocks and trends are captivating fund managers.
Image source: Getty Images.
With market volatility picking up in a big way during the first quarter, billionaire money managers were busy. However, this volatility didn't scare billionaires away from making big investments in growth stocks. Based on a slew of 13F filings, billionaire money managers piled into these four growth stocks.
Meta Platforms
First up is Meta Platforms (NASDAQ: FB), the company formerly known as Facebook. During the first quarter, Jeff Yass of Susquehanna International, Stephen Mandel of Lone Pine Capital, and Jim Simons of Renaissance Technologies all scooped up a significant stake in Meta. Respectively, Susquehanna, Lone Pine, and Renaissance added approximately 3.99 million shares, 3.66 million shares, and 2.27 million shares.
Although Meta is contending with a number of headwinds, including Apple's iOS privacy changes and the growing possibility of a recession in the U.S. (ad-driven companies often see revenue growth slow or reverse during recessions), billionaires clearly see value with the platform.
For example, Meta closed out the first quarter with 3.64 billion monthly active users across its family of apps (Facebook, WhatsApp, and Instagram). This means more than half of the world's adult population visits a Meta-owned asset at least once a month. Advertisers are well aware that their best chance to reach a broad audience is with Meta's ultra-popular social media sites. And this, in turn, is what often affords Meta substantive ad-pricing power.
The company is also historically inexpensive. Even with Meta's aggressive spending on the metaverse, Wall Street anticipates the company will generate over $14 in earnings per share in 2023. For a company that's consistently growing by a double-digit percentage, a forward-year price-to-earnings ratio of 14 is jaw-droppingly low.
Nio's ET7 electric sedan launched in late March 2022. Image source: Nio.
Nio
Another growth stock billionaire money managers couldn't get enough of in the first quarter is China-based electric vehicle (EV) manufacturer Nio (NYSE: NIO). Simons' Renaissance Technologies, John Overdeck and David Siegel's Two Sigma Investments, and Ray Dalio's Bridgewater Associates were all big buyers. Respectively, these funds added approximately 5.18 million shares, 5.04 million shares, and 2.26 million shares.
Like most auto stocks, Nio is contending with enormous supply chain challenges. There have been industrywide semiconductor chip shortages, and the company has dealt with part shortages tied to COVID-19 lockdowns in various provinces within China.
But in spite of these challenges, Nio rightly has billionaires stomping on the accelerator. Late last year, the company was producing EVs at an annual run rate in excess of 120,000, demonstrating that it can quickly ramp up output once supply chain challenges ebb.
What's more, despite being a newer automaker, Nio is innovative. For example, its newly introduced sedans, the ET7 and ET5, offer premium battery options that allow for around 620 miles on a single charge. That should allow Nio's sedans to directly compete with -- and take share from -- Tesla's flagship sedans, the Model 3 and Model S.
Nio's battery-as-a-service subscription could be a long-term game changer, as well.
Image source: Getty Images.
Datadog
Billionaires were also quite excited to pile into cloud-based application monitoring and security company Datadog (NASDAQ: DDOG) during its first quarter sell-off. Ken Griffin's Citadel Advisors, Overdeck and Siegel of Two Sigma, and Israel Englander's Millennium Management were all active buyers. Respectively, Citadel, Two Sigma, and Millennium added approximately 614,200 shares, 203,200 shares, and 175,800 shares.
As with most growth stocks, Datadog's valuation has proved to be its own worst enemy since the beginning of the year. Even after a 51% drop from a 52-week high, the company's shares are still valued at a rich 19 times forecast sales for 2022, as well as close to 100 times Wall Street's forecast earnings for next year. When economic slowdowns and recessions strike, cyclical companies in the tech sector often feel the pinch.
The good news for Datadog and its shareholders is that the company finds itself at the center of a seemingly unstoppable trend. With businesses shifting their data online and into the cloud at an accelerated pace in the wake of the pandemic, the company is positioned perfectly to aid in that transition and help businesses better understand their customers' behavior.
It's been particularly successful courting larger customers. Datadog ended March 2022 with roughly 2,250 clients generating at least $100,000 in annual recurring revenue. That's up 60% from the prior-year period and indicates Datadog's superior growth rate is unlikely to slow anytime soon.
Image source: Getty Images.
Novavax
Biotech-stock Novavax (NASDAQ: NVAX) is another growth stock that billionaire fund managers bought hand over fist in the first quarter. Philippe Laffont of Coatue Management, Englander's Millennium Management, and Griffin's Citadel Advisors were all buyers. Respectively, these funds purchased 883,400 shares, 609,300 shares, and 484,600 shares in the first quarter.
Novavax's promise and peril rests with NVX-CoV2373, the company's COVID-19 vaccine. On one hand, Novavax delayed filing for emergency-use authorization in a number of key markets until late 2021. It's also been dealing with a slow vaccine production ramp up. These concerns have helped send shares more than 80% below their pandemic high.
On the other hand, Novavax appears to have a highly effective vaccine. Two large-scale clinical trials in adults last year produced vaccine efficacies of 89.7% (U.K.) and 90.4% (U.S. and Mexico). A third trial released earlier this year in adolescents featured an 80% vaccine efficacy. As one of only a few drugmakers to hit the 90% vaccine efficacy mark, Novavax should have no trouble becoming a major player in developed and emerging markets.
Additionally, Novavax has stuck by its 2022 sales projection of $4 billion to $5 billion. If the company can deliver on this forecast, it'll be valued at roughly 2 times Wall Street's projected earnings this year. Considering it also has $1.57 billion in cash and cash equivalents, Novavax looks downright cheap.
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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. Sean Williams has positions in Meta Platforms, Inc. and Novavax. The Motley Fool has positions in and recommends Apple, Datadog, Meta Platforms, Inc., Nio Inc., and Tesla. 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.
The views and 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 Billionaires were also quite excited to pile into cloud-based application monitoring and security company Datadog (NASDAQ: DDOG) during its first quarter sell-off. During the first quarter, Jeff Yass of Susquehanna International, Stephen Mandel of Lone Pine Capital, and Jim Simons of Renaissance Technologies all scooped up a significant stake in Meta. Simons' Renaissance Technologies, John Overdeck and David Siegel's Two Sigma Investments, and Ray Dalio's Bridgewater Associates were all big buyers.
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Datadog Billionaires were also quite excited to pile into cloud-based application monitoring and security company Datadog (NASDAQ: DDOG) during its first quarter sell-off. Respectively, Susquehanna, Lone Pine, and Renaissance added approximately 3.99 million shares, 3.66 million shares, and 2.27 million shares. Respectively, these funds added approximately 5.18 million shares, 5.04 million shares, and 2.26 million shares.
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Datadog Billionaires were also quite excited to pile into cloud-based application monitoring and security company Datadog (NASDAQ: DDOG) during its first quarter sell-off. Nio Another growth stock billionaire money managers couldn't get enough of in the first quarter is China-based electric vehicle (EV) manufacturer Nio (NYSE: NIO). Novavax Biotech-stock Novavax (NASDAQ: NVAX) is another growth stock that billionaire fund managers bought hand over fist in the first quarter.
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Datadog Billionaires were also quite excited to pile into cloud-based application monitoring and security company Datadog (NASDAQ: DDOG) during its first quarter sell-off. Image source: Nio. Nio Another growth stock billionaire money managers couldn't get enough of in the first quarter is China-based electric vehicle (EV) manufacturer Nio (NYSE: NIO).
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5774287a-80f6-4831-b637-2eb62e9e20e5
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718650.0
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2022-05-18 00:00:00 UTC
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Hedge fund Melvin Capital tells investors it plans to shut down -letter
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DDOG
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https://www.nasdaq.com/articles/hedge-fund-melvin-capital-tells-investors-it-plans-to-shut-down-letter
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nan
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nan
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By Svea Herbst-Bayliss
May 18 (Reuters) - Hedge fund manager Gabe Plotkin, who boasted one of Wall Street's best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses.
"The appropriate next step is to wind down the Funds by fully liquidating the Funds' assets and accounts and returning cash to all investors," Plotkin wrote in a letter reviewed by Reuters on Wednesday.
Melvin Capital had $7.8 billion in assets at the end of April and the fund had lost 23% since January, a person familiar with the fund's finances said.
This year's losses come on the heels of steep losses in 2021 when Melvin Capital ended the year down 39%. The firm bet that shares of GameStop GME.N would tumble but was battered when retail investors took the other side and sent the stock surging.
The firm had $12.5 billion in assets at the start of 2021.
In the letter Plotkin said he had already raised a substantial amount of cash and cut the funds' exposure.
A spokesman for Plotkin declined to comment.
At the end of the first quarter Melvin's biggest investments included bets on Live Nation Entertainment LYV.N, Hilton Worldwide Holdings HLT.N, Amazon AMZN.O and Datadog DDOG.O. Their stock prices have fallen sharply in the last weeks, sparking speculation that a hedge fund might be trying to unwind positions.
Plotkin was a star investor at Steven A. Cohen's hedge fund SAC Capital Advisors and launched his own firm after SAC pleaded guilty to criminal insider trading charges. Melvin Capital quickly attracted attention and powerful investors and ended 2020, the year the pandemic began, with gains of 52.5%.
(Reporting by Svea Herbst-Bayliss with additional reporting by Mehnaz Yasmin in Bengaluru; Editing by Amy Caren Daniel and Richard Pullin)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the end of the first quarter Melvin's biggest investments included bets on Live Nation Entertainment LYV.N, Hilton Worldwide Holdings HLT.N, Amazon AMZN.O and Datadog DDOG.O. By Svea Herbst-Bayliss May 18 (Reuters) - Hedge fund manager Gabe Plotkin, who boasted one of Wall Street's best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses. Melvin Capital quickly attracted attention and powerful investors and ended 2020, the year the pandemic began, with gains of 52.5%.
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At the end of the first quarter Melvin's biggest investments included bets on Live Nation Entertainment LYV.N, Hilton Worldwide Holdings HLT.N, Amazon AMZN.O and Datadog DDOG.O. By Svea Herbst-Bayliss May 18 (Reuters) - Hedge fund manager Gabe Plotkin, who boasted one of Wall Street's best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses. This year's losses come on the heels of steep losses in 2021 when Melvin Capital ended the year down 39%.
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At the end of the first quarter Melvin's biggest investments included bets on Live Nation Entertainment LYV.N, Hilton Worldwide Holdings HLT.N, Amazon AMZN.O and Datadog DDOG.O. By Svea Herbst-Bayliss May 18 (Reuters) - Hedge fund manager Gabe Plotkin, who boasted one of Wall Street's best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses. "The appropriate next step is to wind down the Funds by fully liquidating the Funds' assets and accounts and returning cash to all investors," Plotkin wrote in a letter reviewed by Reuters on Wednesday.
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At the end of the first quarter Melvin's biggest investments included bets on Live Nation Entertainment LYV.N, Hilton Worldwide Holdings HLT.N, Amazon AMZN.O and Datadog DDOG.O. By Svea Herbst-Bayliss May 18 (Reuters) - Hedge fund manager Gabe Plotkin, who boasted one of Wall Street's best investing records, on Wednesday told investors that he is shutting down his firm, Melvin Capital, after it suffered billions of dollars in losses. "The appropriate next step is to wind down the Funds by fully liquidating the Funds' assets and accounts and returning cash to all investors," Plotkin wrote in a letter reviewed by Reuters on Wednesday.
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19b4e478-3c0a-4841-a73b-45928ea8aca3
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718651.0
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2022-05-17 00:00:00 UTC
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Datadog (DDOG) Makes OpenTelemetry Protocol Support Available
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-makes-opentelemetry-protocol-support-available
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nan
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nan
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Datadog DDOG recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent.
OpenTelemetry is a Cloud Native Computing Foundation (CNCF) initiative providing open, vendor-neutral standards and tools for instrumenting services and applications. Organizations mainly use it to collect telemetry data to analyze and understand software performance and behavior and export the data to their preferred backend system.
The availability of the new capability provides the OpenTelemetry-instrumented applications with the full monitoring capabilities of the Datadog platform. With the integration in place, Datadog Agent can now collect other telemetry data, such as infrastructure metrics and network data from more than 500 integrations. This allows Datadog customers richer data and thus a deeper understanding of their systems, applications and software.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Network Performance Monitoring Products To Aid Customer Wins
The coronavirus-led pandemic has led to an accelerated digital transformation and cloud migration across organizations. Per a Grand View Research report, the global cloud computing market was valued at $368.97 billion in 2021 and is expected to witness a CAGR of 15.7%, between 2022 and 2030. The trend bodes well with software-as-a-service (SaaS) companies such as Datadog.
Datadog is benefiting from increased adoption of cloud-based monitoring and analytics platforms across the globe. In the last reported quarter, the company witnessed a robust demand for its infrastructure monitoring solutions, APM suite and log management products.
The growing demand for its SaaS-based solutions is expected to drive the company’s top line as ell as boost subscriber growth in the near term. In the last reported quarter, steady customer additions drove the top line. Datadog had more than 19,800 customers at the end of the first quarter, up from 14,170 in the year-ago quarter.
Recently, the company integrated several enhancements to its SaaS platform to simplify the monitoring and security of Google’s Kubernetes environment. It adds to the ongoing measures taken by the company to expand its content offerings.
The integration of Datadog Operator for Kubernetes offers visibility into the health and performance of a Kubernetes environment. With these enhancements, Kubernetes users can easily deploy and update the Datadog Agent without downtime, get deeper visibility into the performance of their dynamic infrastructure and monitor their entire set of resources using Datadog monitors, dashboards and service level objectives (SLOs).
The company also entered into a definitive agreement to acquire Hdiv Security. The acquisition of this security-testing software provider will enable Datadog’s Cloud Security Platform to adopt a more comprehensive approach to application security.
In the last reported quarter, Datadog witnessed a robust demand for its security monitoring solutions and has since then been focused on enhancing the said product portfolio. The recent launch of its Application Security Monitoring product and the availability of two of its capabilities, namely Log Anomaly Detection and Root Cause Analysis for its AI engine Watchdog, are expected to have driven revenues across its cloud services segment and expanded its existing customer base.
Zacks Rank and Stocks to Consider
Currently, Datadog has a Zacks Rank #3 (Hold)
Datadog’s shares have plunged 45.4% year to date compared with the Zacks Internet Software industry’s decline of 45.4%. The Computer & Technology sector has tumbled 25.8% year-to-date.
Some better-ranked stocks in the Zacks Computer & Technology sector are Avid Technology AVID, Ceridian HCM CDAYand Sapiens International SPNS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Avid Technology shares have declined 25% compared with the Zacks Computer – Software industry’s fall of 25% and the Computer & Technology sector’s drop of 25.7% in the year-to-date period.
Ceridian HCM stock has declined 47.5% against the Zacks Internet - Software industry’s decline of 45.5% and the Computer & Technology sector’s fall of 25.8% in the year-to-date period.
Shares of Sapiens International have declined 31.2% compared with the Zacks Computer – Software industry’s fall of 25% and the Computer & Technology sector’s plunge of 25.7% in the year-to-date period.
Just Released: Zacks Top 10 Stocks for 2022
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Avid Technology, Inc. (AVID): Free Stock Analysis Report
Sapiens International Corporation N.V. (SPNS): Free Stock Analysis Report
Ceridian HCM (CDAY): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog DDOG recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent. Datadog, Inc. (DDOG): Free Stock Analysis Report OpenTelemetry is a Cloud Native Computing Foundation (CNCF) initiative providing open, vendor-neutral standards and tools for instrumenting services and applications.
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Datadog DDOG recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent. Datadog, Inc. (DDOG): Free Stock Analysis Report Some better-ranked stocks in the Zacks Computer & Technology sector are Avid Technology AVID, Ceridian HCM CDAYand Sapiens International SPNS, each carrying a Zacks Rank #2 (Buy) at present.
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Datadog DDOG recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, Inc. Price and Consensus Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote Network Performance Monitoring Products To Aid Customer Wins The coronavirus-led pandemic has led to an accelerated digital transformation and cloud migration across organizations.
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Datadog DDOG recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent. Datadog, Inc. (DDOG): Free Stock Analysis Report Recently, the company integrated several enhancements to its SaaS platform to simplify the monitoring and security of Google’s Kubernetes environment.
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e697d702-0344-494b-9e07-8e9183618193
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718652.0
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2022-05-17 00:00:00 UTC
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Stock Market News for May 17, 2022
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DDOG
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https://www.nasdaq.com/articles/stock-market-news-for-may-17-2022
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nan
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nan
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U.S. stocks ended mostly lower on Monday with the S&P 500 giving up all its day’s gains in the final hour of trading, as weak data from China and the United States added to the worries of rising interest rates and a global economic slowdown. The Dow somehow managed to end in positive territory, while the S&P 500 and Nasdaq closed in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) added less than 0.1% or 26.27 points to close at 32,223.42 points.
The S&P 500 fell 0.4% or 15.88 points to finish at 4,008.01 points. The index has now closed in the red in six of the past eight sessions. Consumer discretionary, technology and real estate stocks were the biggest losers.
The Consumer Discretionary Select Sector SPDR (XLY) and the Real Estate Select Sector SPDR (XLRE) lost 2.2% and 0.8%, respectively. The Technology Select Sector SPDR (XLK) fell 0.9%. However, the Energy Select Sector SPDR (XLE) added 2.6%. Seven of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq shed 1.2% or 142.21 points to end at 11,662.79 points. The index is now 27% down from its record close of 16,057.44 points recorded on Nov 19, 2021.
The fear-gauge CBOE Volatility Index (VIX) was down 4.85% to 27.47. Advancers outnumbered decliners on the NYSE by a 1.08-to-1 ratio. On Nasdaq, a 1.35-to-1 ratio favored declining issues. A total of 11.3 billion shares were traded on Monday, lower than the last 20-session average of 13.2 billion.
Concerns Over Economic Slowdown Grows
The Dow and the S&P 500 gave up almost all the gains in the final hours of trading on Monday. Markets ended last week in the green but the upbeat sentiment faded on Monday once again on worries about rising interest rates, global economic slowdown and surging inflation.
Investors are now skeptical that the Fed can check inflation without the economy getting pushed into recession. Treasury yields have risen this year as the Fed continues to tighten its monetary policy to check inflation. The 10-year Treasury yield that started the year at around 1.5% has since risen sharply. On Monday, it closed just below 2.9% after briefly eclipsing the 3% mark it had hit earlier this month.
This saw the already beaten-down tech stocks once again taking a hit on Monday. Tech stocks have been suffering since the beginning of the year and Monday was no different. Shares of Datadog, Inc. DDOG and Atlassian Corporation Plc TEAM plummeted 10.7% and 6.3% respectively, while electric vehicle company Tesla, Inc. TSLA declined 5.9%. Tesla has a Zacks Rank #3 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weak Data from China
If the existing concerns were not enough, fresh data and reports revealed that economic activity is being hampered in China owing to the recent COVID-induced lockdowns. This further raised concern for investors, weighing on the broader market.
Meanwhile, former Federal Reserve Chairman Ben Bernanke warned that the United States may be entering stagflation for the first time since the 1970s, which further raised concerns among investors.
Economic Data
Weak economic data weighed on the markets at the beginning of the week. The New York Fed’s Empire State business conditions index that measures the manufacturing activity in the state, fell to a negative 11.6 in May after declining as much as 36.2 points. Economists had projected a marginal decline and had expected the index to remain at 16.5. A reading below zero means deteriorating conditions.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Datadog, Inc. DDOG and Atlassian Corporation Plc TEAM plummeted 10.7% and 6.3% respectively, while electric vehicle company Tesla, Inc. TSLA declined 5.9%. Datadog, Inc. (DDOG): Free Stock Analysis Report U.S. stocks ended mostly lower on Monday with the S&P 500 giving up all its day’s gains in the final hour of trading, as weak data from China and the United States added to the worries of rising interest rates and a global economic slowdown.
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Shares of Datadog, Inc. DDOG and Atlassian Corporation Plc TEAM plummeted 10.7% and 6.3% respectively, while electric vehicle company Tesla, Inc. TSLA declined 5.9%. Datadog, Inc. (DDOG): Free Stock Analysis Report U.S. stocks ended mostly lower on Monday with the S&P 500 giving up all its day’s gains in the final hour of trading, as weak data from China and the United States added to the worries of rising interest rates and a global economic slowdown.
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Shares of Datadog, Inc. DDOG and Atlassian Corporation Plc TEAM plummeted 10.7% and 6.3% respectively, while electric vehicle company Tesla, Inc. TSLA declined 5.9%. Datadog, Inc. (DDOG): Free Stock Analysis Report U.S. stocks ended mostly lower on Monday with the S&P 500 giving up all its day’s gains in the final hour of trading, as weak data from China and the United States added to the worries of rising interest rates and a global economic slowdown.
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Shares of Datadog, Inc. DDOG and Atlassian Corporation Plc TEAM plummeted 10.7% and 6.3% respectively, while electric vehicle company Tesla, Inc. TSLA declined 5.9%. Datadog, Inc. (DDOG): Free Stock Analysis Report U.S. stocks ended mostly lower on Monday with the S&P 500 giving up all its day’s gains in the final hour of trading, as weak data from China and the United States added to the worries of rising interest rates and a global economic slowdown.
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cc11cfb5-59c7-4f83-9d59-8f87280de2b9
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718653.0
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2022-05-16 00:00:00 UTC
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Comparing XRP Versus Datadog Reveals New High
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DDOG
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https://www.nasdaq.com/articles/comparing-xrp-versus-datadog-reveals-new-high
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nan
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nan
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Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time.
We noticed that as of 5/15/2022, XRP ($XRP) can buy you the least amount of Datadog shares, in the past year. For example, if you had 100 XRP coins and wished to buy shares of DDOG(Symbol: DDOG) with the proceeds, you would only be able to buy 0.39 share of DDOG. That's versus a high amount of 1.91 shares over the trailing twelve months. Here's how this relationship looks charted, over the past year:
The main driver of the above bar chart has, of course, been the performance of Datadog shares, relative to the performance of XRP; and here's how the two compare over the past year on a total return basis:
Check out our XRP historical price chart and Datadog vs Crypto pages for additional charts. Note that any stock splits and/or dividends are included when we calculate the DDOG returns.
Be sure to follow us at CryptocurrenciesChannel.com for more interesting stock market vs. digital asset comparisons!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Note that any stock splits and/or dividends are included when we calculate the DDOG returns. For example, if you had 100 XRP coins and wished to buy shares of DDOG(Symbol: DDOG) with the proceeds, you would only be able to buy 0.39 share of DDOG. Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time.
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For example, if you had 100 XRP coins and wished to buy shares of DDOG(Symbol: DDOG) with the proceeds, you would only be able to buy 0.39 share of DDOG. Note that any stock splits and/or dividends are included when we calculate the DDOG returns. Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time.
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For example, if you had 100 XRP coins and wished to buy shares of DDOG(Symbol: DDOG) with the proceeds, you would only be able to buy 0.39 share of DDOG. Note that any stock splits and/or dividends are included when we calculate the DDOG returns. We noticed that as of 5/15/2022, XRP ($XRP) can buy you the least amount of Datadog shares, in the past year.
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For example, if you had 100 XRP coins and wished to buy shares of DDOG(Symbol: DDOG) with the proceeds, you would only be able to buy 0.39 share of DDOG. Note that any stock splits and/or dividends are included when we calculate the DDOG returns. Here at CryptocurrenciesChannel.com, we find it interesting to track various ETF and stock prices versus various digital assets over time.
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ecf62168-8a9e-4c9c-bd7e-c7583ca4ec90
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718654.0
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2022-05-12 00:00:00 UTC
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Noteworthy Thursday Option Activity: FL, SIX, DDOG
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DDOG
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-fl-six-ddog
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Foot Locker, Inc. (Symbol: FL), where a total volume of 8,712 contracts has been traded thus far today, a contract volume which is representative of approximately 871,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.7% of FL's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $32.50 strike call option expiring August 19, 2022, with 2,978 contracts trading so far today, representing approximately 297,800 underlying shares of FL. Below is a chart showing FL's trailing twelve month trading history, with the $32.50 strike highlighted in orange:
Six Flags Entertainment Corp (Symbol: SIX) saw options trading volume of 7,524 contracts, representing approximately 752,400 underlying shares or approximately 42.7% of SIX's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $37.50 strike call option expiring December 16, 2022, with 3,995 contracts trading so far today, representing approximately 399,500 underlying shares of SIX. Below is a chart showing SIX's trailing twelve month trading history, with the $37.50 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) options are showing a volume of 22,297 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 41.8% of DDOG's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $125 strike call option expiring July 15, 2022, with 2,023 contracts trading so far today, representing approximately 202,300 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for FL options, SIX options, or DDOG 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 $125 strike call option expiring July 15, 2022, with 2,023 contracts trading so far today, representing approximately 202,300 underlying shares of DDOG. Below is a chart showing SIX's trailing twelve month trading history, with the $37.50 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 22,297 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 41.8% of DDOG's average daily trading volume over the past month, of 5.3 million shares.
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Below is a chart showing SIX's trailing twelve month trading history, with the $37.50 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 22,297 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 41.8% of DDOG's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $125 strike call option expiring July 15, 2022, with 2,023 contracts trading so far today, representing approximately 202,300 underlying shares of DDOG.
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Especially high volume was seen for the $125 strike call option expiring July 15, 2022, with 2,023 contracts trading so far today, representing approximately 202,300 underlying shares of DDOG. Below is a chart showing SIX's trailing twelve month trading history, with the $37.50 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 22,297 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 41.8% of DDOG's average daily trading volume over the past month, of 5.3 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $125 strike highlighted in orange: For the various different available expirations for FL options, SIX options, or DDOG options, visit StockOptionsChannel.com. Below is a chart showing SIX's trailing twelve month trading history, with the $37.50 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 22,297 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 41.8% of DDOG's average daily trading volume over the past month, of 5.3 million shares.
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4260bee6-d014-4374-89db-056758492189
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718655.0
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2022-05-12 00:00:00 UTC
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Nasdaq Bear Market: The 2 Best Stocks to Buy While They're Down
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DDOG
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-the-2-best-stocks-to-buy-while-theyre-down
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nan
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nan
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It's no secret that tech stocks have had a rough few months. The Nasdaq Composite is down more than 25% from its all-time high, easily crossing the "bear market" threshold.
While this induces a lot of fear about the future, long-term investors should be strategic about this weakness. Because so many stocks are being sold off aggressively, it opens up opportunities to get into the best names at a much lower price. Two such stocks are Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG). Both recently reported solid quarters and are down over 80% and 50%, respectively, from their all-time highs.
Could now be a once-in-a-lifetime buying opportunity?
Image source: Getty Images.
1. Shopify
Because of its vast e-commerce tool kit, many businesses flocked to Shopify to establish an online presence during the pandemic. Now that the rush is over, Shopify is seeing a more challenging environment. Its subscription solutions segment was only up 8% year over year, because fewer merchants joined the platform. However, merchant solutions still rose 29% as people continue to move their spending online.
Because merchant solutions is a larger part of Shopify's business, total revenue rose 22% in the first quarter. Management expects more robust growth in the second half of the year since its prior best quarters were in the first half of 2021. With these problematic comparisons behind it, Shopify's growth numbers should look better by the end of this year.
However, its bottom-line numbers will likely remain negative. Shopify's operating expenses grew 67% year over year, pushing its bottom line into the red. Along with some investment losses (which are only paper losses, as they haven't been realized yet), Shopify's loss per diluted share was $11.70 versus a profit of $9.94 one year ago. These headline numbers can be misleading as management fully expected this.
In its outlook, management stated they will "reinvest all of our gross profit dollars back into the business to pursue our multiple paths to growth." This is great news for long-term investors as it reiterates Shopify's commitment to being one of the top solutions for e-commerce available.
Image source: Getty Images.
With a tremendous long-term growth trajectory and a five-year low price-to-sales valuation of 8.3, Shopify is one of the best stocks to buy in this tech bear market.
2. Datadog
While many SaaS (software-as-a-service) stocks are experiencing slowing growth, Datadog is not. The company's software allows customers to understand how its programs are working individually and together. This technology can solve problems before they're noticed by users and generate unique metrics that tie in many technology stacks.
Datadog's offering is unique, because nearly every company can benefit from its platform, whereas some SaaS companies only have niche use cases. This widespread use allowed Datadog to grow revenue 83% to $363 million in the first quarter and guide for 62% growth in the current period. Datadog was also profitable with GAAP net income of $0.03 per share.
But the company isn't optimized for profits yet, so free cash flow is a better metric to gauge its bottom line. During the quarter, Datadog produced $130 million in free cash flow for a 36% margin. This means the company converted 36% of its revenue into cash the business can use going forward.
With solid revenue growth and profitability, Datadog is one of the highest-quality software companies available right now. Its valuation also reflects this fact.
Data by YCharts.
At 27 times sales and 98 times free cash flow, Datadog is far from cheap. Any business hiccups or projection misses will cause this stock to decline even further. However, I don't think this is likely as Datadog's solution has many more customers to capture.
As of March 31, Datadog only had 2,250 customers with annual recurring revenue of $100,000 or more, up 60% from last year. The company should have no problem finding more companies that it can sign up for its product, as well as getting some of its other customers to spend more.
Image source: Getty Images.
Datadog is a solid long-term pick but could see some continued volatility because of its high valuation. However, its bright prospects far outweigh the potential downside; investors shouldn't overlook the company for this reason.
With the market in disarray, long-term investors can go bargain hunting and pick up some of the best names for cheap. While it may be nerve-racking to buy when the market is down, it has typically proven wise when investors have a holding period of at least five years.
10 stocks we like better than Shopify
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Shopify wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Keithen Drury has positions in Datadog and Shopify. The Motley Fool has positions in and recommends Datadog and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
The views and 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 such stocks are Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG). In its outlook, management stated they will "reinvest all of our gross profit dollars back into the business to pursue our multiple paths to growth." With a tremendous long-term growth trajectory and a five-year low price-to-sales valuation of 8.3, Shopify is one of the best stocks to buy in this tech bear market.
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Two such stocks are Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG). During the quarter, Datadog produced $130 million in free cash flow for a 36% margin. With solid revenue growth and profitability, Datadog is one of the highest-quality software companies available right now.
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Two such stocks are Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG). With a tremendous long-term growth trajectory and a five-year low price-to-sales valuation of 8.3, Shopify is one of the best stocks to buy in this tech bear market. Datadog While many SaaS (software-as-a-service) stocks are experiencing slowing growth, Datadog is not.
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Two such stocks are Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG). With solid revenue growth and profitability, Datadog is one of the highest-quality software companies available right now. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shopify wasn't one of them!
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020b6a2f-3bc3-4c5c-8819-40f8fc010b85
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718656.0
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2022-05-10 00:00:00 UTC
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Why Palantir, Twilio, and Datadog Were on a Roller Coaster Today
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DDOG
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https://www.nasdaq.com/articles/why-palantir-twilio-and-datadog-were-on-a-roller-coaster-today
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nan
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nan
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What happened
Shares of Palantir Technologies (NYSE: PLTR), Twilio (NYSE: TWLO), and Datadog (NASDAQ: DDOG) were initially higher in morning trading after yesterday's brutal sell-off, but then fell again into the red throughout the day. Palantir was up as much as 3.4% before finishing the day down 2.4%, Twilio rocketed 6.4% higher before finishing the day down 3%, and Datadog rose 7.2% in morning trading before finishing the day just above breakeven.
All three companies have been volatile over the past few weeks, especially since each reported first-quarter earnings in recent days. Although each company beat estimates for revenue growth, with inflation and interest rates rising, investors are much more concerned about profits today -- and not adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but rather real profits and cash flow, even when factoring in stock-based compensation.
With the Bureau of Labor and Statistics releasing the consumer price index (CPI) tomorrow, nervous investors are likely positioning ahead of new inflation news.
So what
The market has been highly volatile lately, which is more or less due to inflation and fears over how high the Federal Reserve might raise interest rates. The monthly CPI comes out tomorrow, and the producer price index (PPI) comes out on Thursday. Even though these stocks have already been severely beaten down, they are still highly valued on today's earnings and sales, and are therefore extraordinarily sensitive to interest rates. Hence their volatility today.
The move in Palantir was especially noteworthy. The stock plummeted yesterday by more than 20% following its Monday morning earnings report. While the company beat analyst expectations for revenue, which grew 31%, it missed on the bottom line. The company also gave the dreaded weak guidance, with a forecast of $470 million in revenue for the current quarter relative to analyst expectations of $485 million. Additionally, Palantir disclosed it had stopped investing in other companies through special purpose acquisition companies (SPACS), into which it had invested hundreds of millions of dollars. In its release, Palantir recorded $51.9 million in losses, likely from the carnage in SPACS and other early stage company valuations.
While Palantir reports "adjusted" profits, it still lost over $100 million under generally accepted accounting principles (GAAP) last quarter, thanks to a massive $149 million in stock-based compensation.
As a result, two different analysts downgraded the stock today. Analysts at Royal Bank of Canada lowered their price target on Palantir from $12 to $6, and analysts at Citigroup lowered their price target from $10 to $7.
Twilio is another offender when it comes to massive stock-based compensation. The company reported last Wednesday, and while revenue growth was strong at 48%, the company still lost a staggering $222 million on a GAAP basis just last quarter alone. Like so many other tech companies, Twilio reports adjusted profits that neglect the absolutely massive stock compensation it pays its employees.
Finally, Datadog, which makes software to help enterprises manage their software applications and IT infrastructure, reported stellar revenue growth of 83% last week, and raised its outlook for the year. Datadog even eked out a $9.7 million GAAP profit in the quarter, swinging positively from a loss last year.
However, the company usually beats and raises, and did so by a lesser amount than it had in the past. The result? A sell-off. That's also because Datadog trades at a ridiculously high 33 times sales -- and this is after the stock has already been cut in half from its highs.
Image source: Getty Images.
Now what
If inflation calms down and the economy is headed back to a low-rate environment, these high-growth software stocks could soar again. However, given their uncertain future profitability and still-high valuation relative to past decades for growth stocks, they could even fall further from here.
Investors should probably buckle up for more big moves either way, and make sure they really have conviction in these names if they're going to hold them through this difficult period.
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Stock Advisor returns as of 2/14/21
Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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, Palantir Technologies Inc., 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 Palantir Technologies (NYSE: PLTR), Twilio (NYSE: TWLO), and Datadog (NASDAQ: DDOG) were initially higher in morning trading after yesterday's brutal sell-off, but then fell again into the red throughout the day. With the Bureau of Labor and Statistics releasing the consumer price index (CPI) tomorrow, nervous investors are likely positioning ahead of new inflation news. Even though these stocks have already been severely beaten down, they are still highly valued on today's earnings and sales, and are therefore extraordinarily sensitive to interest rates.
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What happened Shares of Palantir Technologies (NYSE: PLTR), Twilio (NYSE: TWLO), and Datadog (NASDAQ: DDOG) were initially higher in morning trading after yesterday's brutal sell-off, but then fell again into the red throughout the day. Palantir was up as much as 3.4% before finishing the day down 2.4%, Twilio rocketed 6.4% higher before finishing the day down 3%, and Datadog rose 7.2% in morning trading before finishing the day just above breakeven. Analysts at Royal Bank of Canada lowered their price target on Palantir from $12 to $6, and analysts at Citigroup lowered their price target from $10 to $7.
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What happened Shares of Palantir Technologies (NYSE: PLTR), Twilio (NYSE: TWLO), and Datadog (NASDAQ: DDOG) were initially higher in morning trading after yesterday's brutal sell-off, but then fell again into the red throughout the day. Although each company beat estimates for revenue growth, with inflation and interest rates rising, investors are much more concerned about profits today -- and not adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but rather real profits and cash flow, even when factoring in stock-based compensation. Like so many other tech companies, Twilio reports adjusted profits that neglect the absolutely massive stock compensation it pays its employees.
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What happened Shares of Palantir Technologies (NYSE: PLTR), Twilio (NYSE: TWLO), and Datadog (NASDAQ: DDOG) were initially higher in morning trading after yesterday's brutal sell-off, but then fell again into the red throughout the day. Although each company beat estimates for revenue growth, with inflation and interest rates rising, investors are much more concerned about profits today -- and not adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), but rather real profits and cash flow, even when factoring in stock-based compensation. The Motley Fool has positions in and recommends Datadog, Palantir Technologies Inc., and Twilio.
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ff6545f0-12d8-4c8d-a77d-793e1f2e20ae
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718657.0
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2022-05-10 00:00:00 UTC
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My Top Tech Stock to Buy Right Now (and It's Not Even Close)
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DDOG
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https://www.nasdaq.com/articles/my-top-tech-stock-to-buy-right-now-and-its-not-even-close-1
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nan
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nan
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Tech stocks with high valuations have been getting crushed recently. The tech-heavy Nasdaq Composite index is down more than 25% year to date, and many other tech stocks have fallen even further. However, there are a few businesses that are falling despite near-perfect fundamental execution.
One of the best examples of this type of company is Datadog (NASDAQ: DDOG). The stock has fallen over 45% in 2022, yet the business is continuing to put up jaw-dropping results. Datadog is also seeing significant improvements in its profitability and cash flow, which is not common among other high-growth stocks.
Because of this and because of the opportunities it has over the next five years, Datadog is one of the best stock opportunities I see on the market right now.
Image source: Getty Images.
Datadog is seeing the future of observability
Datadog specializes in helping businesses make sure their cloud applications are running smoothly and performing to the level that customers expect. The company started as a unified data platform, but it has since reached into infrastructure, user experience, and security monitoring. It now has 26 tools to ensure a business' cloud infrastructure is running smoothly, and it is one of the top dogs in the application performance monitoring space, according to Gartner.
How has Datadog become one of the leaders in this space? The company continues to create stronger products with more integrations to make its platform more valuable to its users. The company made strides on this in Q1, namely in its partnership with Microsoft. This partnership puts Datadog in Azure's Cloud Adoption Framework, which will help Datadog be seen by Azure customers that are starting their journey in the cloud. This is yet another feather in the cap of Datadog, further establishing its capabilities.
At the same time, the company is rapidly expanding into new markets, one of the most recent being the public sector. At the end of 2022, the company got FedRAMP Authorization, which allows it to sell to the government and public sector.
Adoption is paying off
This continuous innovation has paid off immensely. The company now has nearly 20,000 customers, who are rapidly expanding their relationships with Datadog. Its net retention rate was over 130% in Q1, marking the 19th consecutive quarter of retention rates exceeding 130%. These users seem to be spending more because of increased product usage. At the end of Q1, 35% of customers used four or more Datadog products. It was 25% of customers a year ago.
As long as Datadog continues to have best-in-class products, these customers will likely continue increasing their usage, which will allow Datadog to maintain its leadership.
The competitive advantages and increasing customer loyalty the company is seeing are paying off financially. In Q1, Datadog saw 83% year-over-year revenue growth to $363 million. What's even more impressive, however, is the company's ability to turn that growth into cash flows and profitability. Its net income reached $9.7 million in Q1 2022, which jumped from a loss of $13 million in Q1 2021. Additionally, the company's free cash flow soared a staggering 192% to $130 million over the same period.
Datadog faces stiff competition from companies like Dynatrace and New Relic, but despite this, the company is making impressive progress on both its top and bottom lines.
Datadog is barking up the right tree
If the company continues to use its edge to see more adoption, Datadog could capitalize on a massive market. It believes its total opportunity in the observability space is $42 billion today, but it could become $53 billion by 2025. The company is expecting just $1.61 billion in 2022 revenue, meaning that there is still plenty of room for Datadog to expand going forward.
Aside from competition, the main risk for Datadog is its very high valuation. The stock trades above 33 times sales and 135 times free cash flow, so it's by no means cheap right now. That being said, this business is performing at an all-time high, and with its major potential, Datadog looks appealing to own for the long term. Because of its high valuation, you might want to dollar-cost average into a position rather than buying in full.
While this stock has a high valuation, that doesn't mean you should pass on it. The company is operating in a massive space and as one of the dominant forces with multiple competitive advantages. All this means you should consider owning shares of Datadog.
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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Jamie Louko has positions in Datadog. The Motley Fool has positions in and recommends Datadog and Microsoft. The Motley Fool recommends Nasdaq, Gartner, and New Relic. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the best examples of this type of company is Datadog (NASDAQ: DDOG). The company started as a unified data platform, but it has since reached into infrastructure, user experience, and security monitoring. It now has 26 tools to ensure a business' cloud infrastructure is running smoothly, and it is one of the top dogs in the application performance monitoring space, according to Gartner.
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One of the best examples of this type of company is Datadog (NASDAQ: DDOG). Datadog is seeing the future of observability Datadog specializes in helping businesses make sure their cloud applications are running smoothly and performing to the level that customers expect. This partnership puts Datadog in Azure's Cloud Adoption Framework, which will help Datadog be seen by Azure customers that are starting their journey in the cloud.
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One of the best examples of this type of company is Datadog (NASDAQ: DDOG). Datadog is seeing the future of observability Datadog specializes in helping businesses make sure their cloud applications are running smoothly and performing to the level that customers expect. As long as Datadog continues to have best-in-class products, these customers will likely continue increasing their usage, which will allow Datadog to maintain its leadership.
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One of the best examples of this type of company is Datadog (NASDAQ: DDOG). At the end of Q1, 35% of customers used four or more Datadog products. The competitive advantages and increasing customer loyalty the company is seeing are paying off financially.
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d53b00d7-779e-45bb-bc5b-12bd4eb49457
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718658.0
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2022-05-09 00:00:00 UTC
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Why Datadog Stock Is Falling Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-is-falling-today
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG), a cloud-based monitoring and analytics company, were tumbling today as investors responded to a broad market sell-off.
The tech stock was down by 11% as of 1:53 p.m. ET on Monday.
So what
The tech-heavy Nasdaq Composite was down by 3.6% as investors took note that the 10-year Treasury yield reached its highest level since 2018, surpassing 3%. Higher Treasury yields can convince investors to move their money out of the stock market and into less risky investments.
Image source: Getty Images.
And investors have already been eager to do exactly that, as inflation has reached a 40-year high. The Federal Reserve voted earlier this month to raise the Fed funds rate by 50 basis points, which should help curb inflation but could come at the cost of slowing down the economy.
With more rate hikes likely on the way this year, investors are anticipating a slowdown and looking to put their money into more stable investments, like Treasury notes.
Now what
Today's drop comes on top of Datadog's stock price slide since it released its first-quarter financial results last Thursday. Surprisingly, the company reported earnings and sales that beat analysts' consensus estimates, but its share price has continued falling nonetheless.
Instead of focusing on a great quarter, it's clear that Datadog investors are looking at the rest of the market turmoil and the potential for more interest rate hikes and are panicking about what they see.
Considering that there are likely to be more price swings for the broader market as investors try to gauge how resilient the U.S. economy is, Datadog shareholders might want to prepare for more instability as well.
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 April 7, 2022
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Datadog (NASDAQ: DDOG), a cloud-based monitoring and analytics company, were tumbling today as investors responded to a broad market sell-off. The Federal Reserve voted earlier this month to raise the Fed funds rate by 50 basis points, which should help curb inflation but could come at the cost of slowing down the economy. Instead of focusing on a great quarter, it's clear that Datadog investors are looking at the rest of the market turmoil and the potential for more interest rate hikes and are panicking about what they see.
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What happened Shares of Datadog (NASDAQ: DDOG), a cloud-based monitoring and analytics company, were tumbling today as investors responded to a broad market sell-off. So what The tech-heavy Nasdaq Composite was down by 3.6% as investors took note that the 10-year Treasury yield reached its highest level since 2018, surpassing 3%. Now what Today's drop comes on top of Datadog's stock price slide since it released its first-quarter financial results last Thursday.
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What happened Shares of Datadog (NASDAQ: DDOG), a cloud-based monitoring and analytics company, were tumbling today as investors responded to a broad market sell-off. Higher Treasury yields can convince investors to move their money out of the stock market and into less risky investments. 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), a cloud-based monitoring and analytics company, were tumbling today as investors responded to a broad market sell-off. So what The tech-heavy Nasdaq Composite was down by 3.6% as investors took note that the 10-year Treasury yield reached its highest level since 2018, surpassing 3%. That's right -- they think these 10 stocks are even better buys.
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718659.0
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2022-05-06 00:00:00 UTC
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Why Datadog Stock Plunged 20% in April
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-plunged-20-in-april
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What happened
Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. The cloud monitoring and security stock delivered a much larger loss than the S&P 500's 8.8% decline.
The stock market has been severely punishing expensive, unprofitable tech stocks with slowing growth, but Datadog doesn't fit that mold. Revenue is soaring, and the company is even reporting generally accepted accounting principles (GAAP) profits. But as interest rates rise and investors fret about a possible recession, sky-high valuations are becoming a thing of the past.
Image source: Getty Images.
So what
Datadog hasn't been hit as hard as some other pandemic high flyers, and that's likely because the company isn't seeing any kind of slowdown. Revenue surged 84% in the fourth quarter of 2021, and it grew by 83% in the first quarter of this year.
From their all-time high in 2021, shares of Datadog are down around 42%. That's a big drop, but it's nothing compared to other growth stocks that have been decimated in recent months. The list of stocks that have lost at least three-quarters of their value since peaking seems to be getting longer by the day.
What's particularly impressive about Datadog's growth is that it hasn't come at the expense of profitability. The company was profitable on a GAAP basis in the first quarter, not a common sight in the world of software-as-a-service stocks, and free cash flow was soundly positive.
Valuation is really the only problem, and it's something that investors can't ignore as interest rates rise. As recently as late 2021, Datadog traded above 60 times sales. Pre-pandemic, that kind of valuation would have seemed ludicrous. Datadog traded for around 10 times sales soon after it went public in late 2019, for example.
Following its decline, Datadog still sports a price-to-sales ratio of around 34. Even if Datadog does everything right, keeping up its growth rate and improving margins, the stock could slump further. And if anything goes wrong, watch out below.
Now what
Datadog's long-term growth story is as strong as ever. The company follows a land-and-expand model, snagging new customers with any of its various products, then selling them on additional products that expand functionality. A customer could start with basic log management, then upgrade to take advantage of Datadog's application performance monitoring solution.
There's little question that Datadog is a great company, but there's no telling whether it will prove to be a great stock in the near term. What's the correct price-to-sales ratio for a stock like Datadog? Who knows? A year ago, paying 40, 50, or even 60 times sales was something investors were willing to do. That's just not the case anymore.
In the long run, Datadog has all the makings of a good investment. But it's unlikely to be a smooth ride for investors.
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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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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. The company was profitable on a GAAP basis in the first quarter, not a common sight in the world of software-as-a-service stocks, and free cash flow was soundly positive. A customer could start with basic log management, then upgrade to take advantage of Datadog's application performance monitoring solution.
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What happened Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. But as interest rates rise and investors fret about a possible recession, sky-high valuations are becoming a thing of the past. Valuation is really the only problem, and it's something that investors can't ignore as interest rates rise.
|
What happened Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. The stock market has been severely punishing expensive, unprofitable tech stocks with slowing growth, but Datadog doesn't fit that mold. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen.
|
What happened Shares of Datadog (NASDAQ: DDOG) were down 20.3% in April, according to data provided by S&P Global Market Intelligence. What's particularly impressive about Datadog's growth is that it hasn't come at the expense of profitability. A year ago, paying 40, 50, or even 60 times sales was something investors were willing to do.
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9a4ce8f7-dacd-48cf-af24-4c8a1ec872b0
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718660.0
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2022-05-05 00:00:00 UTC
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Datadog (DDOG) Q1 Earnings Beat Estimates, Revenues Up Y/Y
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https://www.nasdaq.com/articles/datadog-ddog-q1-earnings-beat-estimates-revenues-up-y-y
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Datadog DDOG reported first-quarter 2022 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate by 118.18%. The bottom line also increased from 6 cents reported in the year-ago quarter.
The company’s net revenues of $363 million surpassed the consensus mark by 7.63%. The figure increased 82.8% year over year.
Quarter Details
Steady customer additions drove the top line in the first quarter. Datadog had more than 19,800 customers at the end of the first quarter, up from 14,170 in the year-ago quarter.
Of these customers, 2,250 have an annual run rate (ARR) of $100K or more, up from 1,406 in the year-ago quarter. These customers generate about 85% of the total ARR.
As of the end of the first quarter, 81% of customers used two or more products, up from 75% in the year-ago quarter. Additionally, 35% of customers utilized four or more products, up from 25% in the year-ago quarter.
Datadog’s dollar-based retention rate was above 130% in the first-quarter, driven by increased usage and adoption of existing and new products.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Operating Details
In the first quarter, Datadog’s adjusted gross margin increased 330 basis points (bps) on a year-over-year basis to 80.4%.
Research & development expenses increased 67.1% on a year-over-year basis to $102.6 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, contracted 270 bps to 28.3%.
Sales and marketing expenses increased 51.8% year over year to $85.3million. Sales and marketing expenses, as a percentage of revenues, declined 480 bps to 23.5%.
General & administrative expenses were up year over year by 27%, reaching $20.2 million in the reported quarter. General & administrative expenses, as a percentage of revenues, contracted 240 bps to 5.6%.
Datadog reported a non-GAAP operating income of $84 million compared with $20 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Datadog had cash, cash equivalents and marketable securities of $1.7 billion compared with $1.6 billion as of Dec 31, 2021.
Operating cash flow was $147 million in the reported quarter, up from $116 million reported in the previous quarter.
Free cash flow during the quarter was $130 million compared with $107 million in the prior quarter.
Guidance
For the second quarter of 2022, Datadog anticipates revenues between $376 million and $380 million. The Zacks Consensus Estimate for the same is pegged at $361.27 million.
Non-GAAP earnings are expected to be 13-15 cents per share. The consensus mark for earnings is pegged at 11 cents per share.
Non-GAAP operating income is expected in the range of $49 million to $53 million.
For 2022, Datadog anticipates revenues between $1.60 billion and $1.61 billion. The Zacks Consensus Estimate for the same is pegged at $1.52 billion
Non-GAAP earnings are expected to be between 70 cents and 77 cents. The Zacks Consensus Estimate for earnings stands at 49 cents per share.
Non-GAAP operating income is expected in the range of $240 million to $260 million.
Post Quarter Highlights
In April, Datadog launched its Application Security Monitoring (ASM) product. This product helps in breaking down silos by leveraging distributed tracing to accurately identify OWASP threats targeting code-level vulnerabilities in web applications and APIs.
Datadog also announced the availability of two capabilities for its AI engine, Watchdog, namely Log Anomaly Detection and Root Cause Analysis. These capabilities will help engineers understand and detect patterns and abnormalities in data volumes and also identify issues across an organization’s services.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #3 (Hold).
Datadog’s shares have declined 33.2% compared with the Zacks Computer and Technology sector’s fall of 22.9% in the year-to-date period.
Some better-ranked stocks in the same sector are Analog Devices ADI, BWX Technologies BWXT and Camtek CAMT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices’ shares have outperformed the sector in the year-to-date period, declining 5.8%. The company is set to announce second-quarter 2022 results on May 18.
BWX Technologies shares have outperformed the sector in the year-to-date period, returning 10%. The company is set to announce first-quarter 2022 results on May 9.
Camtek shares have underperformed the sector in the year-to-date period, declining 32.2%. The company is scheduled to release first-quarter 2022 results on May 12.
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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 reported first-quarter 2022 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate by 118.18%. Datadog, Inc. (DDOG): Free Stock Analysis Report This product helps in breaking down silos by leveraging distributed tracing to accurately identify OWASP threats targeting code-level vulnerabilities in web applications and APIs.
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Datadog DDOG reported first-quarter 2022 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate by 118.18%. Datadog, Inc. (DDOG): Free Stock Analysis Report Research & development expenses increased 67.1% on a year-over-year basis to $102.6 million, driven by increased investments in Datadog’s platform.
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Datadog DDOG reported first-quarter 2022 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate by 118.18%. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote Operating Details In the first quarter, Datadog’s adjusted gross margin increased 330 basis points (bps) on a year-over-year basis to 80.4%.
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Datadog DDOG reported first-quarter 2022 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate by 118.18%. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog reported a non-GAAP operating income of $84 million compared with $20 million in the year-ago quarter.
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2022-05-05 00:00:00 UTC
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Datadog (DDOG) Q1 2022 Earnings Call Transcript
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https://www.nasdaq.com/articles/datadog-ddog-q1-2022-earnings-call-transcript
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Image source: The Motley Fool.
Datadog (NASDAQ: DDOG)
Q1 2022 Earnings Call
May 05, 2022, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Datadog first quarter 2022 financial results conference call. [Operator instructions] Please also note, this event is being recorded. And I would now like to turn the conference over to Yuka Broderick, head of investor relations. Please go ahead.
Yuka Broderick -- Head of Investor Relations
Thank you, Tom. Good morning, everyone, and thank you for joining us to review Datadog's first 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 second quarter and the fiscal year 2022, our gross margins and operating margins including from the impact of R&D, go-to-market, capex and increased office activity and marketing, our strategy, our product capabilities, our ability to capitalize on market opportunities and the closing of acquisitions.
The words anticipate, believe, continue, estimate, expect, intend, will and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our Form 10-K for the year ended December 31, 2021. Additional information will be made available in our upcoming Form 10-Q for the quarter ended March 31, 2022, and other filings and reports that we may file with the SEC.
10 stocks we like better than Datadog
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These filings are available on the Investor Relations section of our website along with a replay of this call. We will also discuss non-GAAP financial measures, which are reconciled to their most directly comparable GAAP financial measures in the tables in our earnings release, which is available at investors.datadoghq.com. With that, I'd like to turn the call over to Olivier.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thanks, Yuka, and thank you all for joining us this morning. I'll start by saying that we are pleased with our execution in Q1 as we continue to drive high revenue growth, along with strong profitability and strong cash generation. To quickly summarize our Q1 financial performance, revenue was $363 million an increase of 83% year over year and above the high end of our guidance range. We had about 19,800 customers, up from about 15,200 in the year-ago quarter.
We ended the quarter with about 2,250 customers with ARR of $100,000 or more, up from 1,406 in the year-ago quarter. These customers generated about 85% of our ARR. We are seeing strong efficiencies in our business model with free cash flow of $130 million and free cash flow margin of 36%. And our dollar-based net retention rate continued to be over 130% as customers increased their usage and adopted our newer products.
At a high level, we saw positive business trends in Q1. Usage growth from existing customers was strong and consistent with historical trends as customers continued on their cloud migration and digital transformation journeys, and the Datadog platform continue to expand and deliver more value. New logo ARR was very robust and churn remained low and in line with historical rates. All these factors together led to another strong quarter of ARR added.
It was, in fact, our second best quarter of ARR added aside from Q4 of 2021. Next, our platform strategy continues to resonate in the market. As of the end of Q1, 81% of customers were using two or more products, up from 75% a year ago. 35% of customers were using four or more products, up from 25% a year ago.
And 12% of our customers were using six or more products, up from 4% last year. We saw strong growth across the products in our platform in Q1. For example, infrastructure monitoring continues to grow at a rapid click and exceeded 3/4 of a billion dollars in ARR in Q1. Our APM suite and log management products had a strong quarter and are in hyper growth mode.
As a reminder, our APM suite includes core APM, synthetic studies on monitoring and continues on hire. We're also very pleased with the growth of our user experience product, which are Synthetics and Real User Monitoring more specifically. These products together exceeded $100 million in ARR in Q1. And in security, we are seeing very rapid growth.
It's still early days, and we're growing off a smaller base, but we continue to see strong adoption with thousands of customers getting security coverage through the Datadog platform. Now let's move on to products and R&D, where our teams delivered another strong quarter of innovation. Just 12 months after we acquired Sqreen, we are pleased to announce the general availability of application security monitoring last week. Some applications and APIs are some of the most common sources of data breaching, yet companies typically have no ways to effectively detect attacks, so they could be less than code for days or weeks.
Some other approaches to application security aim to find vulnerabilities before code reaches production. But these solutions offer and slow down development cycles and overwhelm teams with force positives with no easy way to prioritize these issues. The Datadog Application security monitoring product leverages the full execution context of applications running e-production. This all those teams to focus on attacks that actually matter and provides an immediately actionable remediation path.
Application security monitoring is the 14th product in the Datadog platform, and this is the fourth product within our cloud security platform alongside Cloud Team, Cloud Workload Security and Cloud Security Posture Management. With this, Datadog now provides security insights across metrics, traces and logs, and we consider these altogether as version one of our Cloud Security platform. Remember that we are still in early stages with our security efforts and have much to do to further build out this product, but we are pleased with our progress so far and the usage we are getting from our customers. Last month, we also announced that we expanded our Watchdog AI capabilities to include Root Cause Analysis and Log Anomaly Detection.
Root Cause Analysis automatically identifies causal relationships between different systems across infrastructure and services -- sorry, across infrastructure and services, and pinpoints their root causes. Watchdog also automatically identifies the business impact of any given issue, is in data from a release of data management products. This means not only identifying which mobile applications are impacted, but also the exact users that are affected. This new capability often sold in minutes, the problem that would otherwise take hours [Inaudible] by specialists in customers' organizations.
Log Anomaly Detection on the other hand automatically understands and baselines novel patterns in logs and proactively discovers anomalies such as new patterns, meaningful changes in negative patterns and other error outliers. By surfacing these unusual log patterns, Log Anomaly Detection have seem fine and fix issues faster. In addition to this Watchdog announcement, our engineers released dozens of features and expanded product capabilities in Q1. To give a couple of examples, in Real User Monitoring, we announced the general availability of iOS crash reports and error tracking, as well as a number of improvements to help customers analyze and understand the users performance.
In Cloud Security Posture Management, we added support for the Azure platform, enabling customers to understand their compliance both across AWS and Azure in one place. In continuous profile, we now support all commonly used languages, including C, C++, RASP, PHP and .NET. And across Datadog, numerous addition of rules, data sources and integrations are enabling our customers to solve their problems from end to end without leaving the Datadog platform. Finally, this morning, we announced that we signed an agreement to acquire Hdiv.
Hdiv is an application security product, which provides a highly accurate vulnerability detection at run-time. It offers interactive application security testing capabilities, which tie vulnerabilities to exact file in line numbers in the code. And unlike other solutions in this area, Hdiv's rate of false positive is very low, enabling customers to focus on vulnerabilities that actually matter. We believe Hdiv's capabilities and strong team will be an excellent part of our Cloud Security platform, and we're looking forward to integrating the capability into Datadog as soon as this acquisition closes when regulatory requirements are met.
Access to our product update this quarter. I want to thank our engineering and product teams for their continued hard work. There are so many new features coming up, and I can only highlight a few of them in this call. Now moving on to sales and marketing, our sales team continued to execute and have delivered a strong quarter.
Let's discuss some of our wins in Q1. First, we signed an eight-figure upsell with a next-gen fintech company which was our largest ever deal on an ARR basis. This customer is experiencing explosive growth in demand for its products, and availability and performance of their system is critical to avoid loss of revenue. These customers started with us three years ago with just Infrastructure Monitoring, and its expansion now includes 6 of our products.
Next, we had a high six-figure upsell with a global shipping company. This customer is expanding with Datadog to help them move forward with their Azure migration. In addition to using five Datadog products, they are now working with our new services team to help implement best practices on a number of business initiatives that involve increased Datadog adoption. This customer expects to consolidate 10 [Inaudible] monitoring tools as they expand their use of Datadog.
Next, we had a seven-figure upsell with a U.S. Federal entity. We were able to deepen our relationship with this customer after we achieve federal moderate status. Before Datadog, this customer had siloed infrastructures, applications, networks, database and customer experience monitoring this caused blind spots and long time to resolution.
With this expansion, they are replacing both homegrown and commercial observability tools and are enabling DevSecOps cultures with a visibility across the full stack and a single source of truth. Next, we signed a seven-figure upsell with a leading payment company. Earlier this year, these customers open source logging tool went down making them blind, but they were able to regain visibility by getting Datadog log management up and running within a few hours of that crash. Not only did this customer regain log visibility very quickly.
They were also able to use the Datadog platform to scrub personally identifiable information to meet security and compliance requirements. And as they have expanded with Datadog, they have been able to cut the number of engineers who maintain homegrown and print solutions in half and reassign engineers to other products to work in the organization. With this renewal, this customer now uses 13 products from Datadog. Next, we had a six-figure land with a major U.S.
hotel company. This company lost half of its engineering team during COVID and needed to use its staff more efficiently. At the same time, it was embarking on an AWS migration and its existing tools were not providing the visibility it needed. By consolidating Datadog, this customer expects to future-proof its cloud strategy and move toward unified end-to-end management across their on-prem and AWS environment.
And finally, we had a seven-figure land with a major European car manufacturer. This customer was frustrated with its existing monitoring tools, which left them with limited visibility into incidents sometimes impacting millions of users globally. As they were trialing Datadog, they were able to solve within minutes issue that used to take them days. With Datadog, this customer expects to consolidate multiple commercial and open source tools across AWS and on-prem stacks.
That's it for this quarter's highlights. I want to thank our go-to-market teams for their hard work in delivering a strong start to 2022 after a very busy end of the year. I also want to give a special shout out to our tech solutions and support teams for making our customers successful and enabling them to expand with our own platform. Moving on, we feel very good about the demand environment.
And as we look over the medium- and long-term, our outlook hasn't changed. We remain confident that cloud migration and digital transformation are drivers of our long-term opportunities and our multiyear trends that are still early in their life cycles. We believe it is increasingly critical for companies to embark on these journeys in order to move faster create competitive differentiation, enable strategic change and serve their customers. And we believe we can help customers manage the complexity as it comes with this transformation.
And that Datadog unified platform is more than ever critical to understand, improve and secure their modern stacks in businesses. 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, and good morning to everyone. To summarize, we delivered strong financial performance in Q1. Revenue was $363 million, up 83% year over year and up 11% quarter over quarter. Usage growth with our existing customers was strong once again in this quarter.
And new logo ARR growth was healthy, particularly given the typical slowness that we see in Q1. Let's go into some more detail. First, growth of existing customers was strong in Q1, and our dollar-based net retention remained above 130% for the 19th consecutive quarter. Usage growth was strong across the Datadog platform and in line with historical trends.
We also saw strong ARR growth in each geographical region, and growth was similar across geographies including EMEA. In early Q2, we began shutting off service to customers in Russia and Belarus. We have about 200 customers in these two countries and their contributions to revenue is immaterial. Our go-to-market teams delivered another strong quarter.
Total customers grew 30% year over year and customers with $100,000 or more of ARR grew 60% year over year. In addition, we saw strong growth in million-dollar customers. We are pleased to be serving more customers and believe we are still early -- in the early stages of our opportunity in worldwide customer acquisition. New logo ARR was very robust, particularly given that our sales teams participate in sales kickoff and other planning processes at the beginning of Q1.
Remember that given our usage-based revenue model, new logo wins generally do not immediately transfer into meaningful revenue. Our platform strategy continues to resonate with customers, with 81% of our customers now using 2 or more products, 35% using four or more products, and 12% using 6 or more products at the end of Q1. Finally, churn has remained low. Our dollar-based gross retention rate continues to be in the mid- to high 90s and was stable quarter to quarter.
And it's similar across our customer segments and major products. Billings were $444 million -- $445 million, up 103% year over year. Billings duration in Q1 was similar to the year-ago quarter and within the range we've seen historically. We closed several large deals in Q1, including the largest deal by ARR that Olivier discussed earlier, which led to billings growth being higher than revenue growth in Q1.
Remaining performance obligations, or RPO, was $858 million, up 85% year over year, and contract duration was similar to the year-ago quarter. Current RPO growth was in the mid-80s year over year. We continue to believe revenue is a better indicator of our business trends than billings or RPO as those can fluctuate relative to revenue based on the timing of invoicing and the duration of customer contracts. Now let's review some key income statement results.
Unless otherwise noted, all metrics are non-GAAP. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. Gross profit in the quarter was $292 million, representing a gross margin of 80%. This compares to a gross margin of 80% in the last quarter and 77% in the year-ago quarter.
We continue to experience efficiencies in cloud costs reflected in our cost of goods sold this quarter. In the mid- to long-term, we continue to expect gross margin to be in the high 70s range. Operating income was $84 million or a 23% operating margin compared to operating income of $20 million or a 10% margin in the year-ago quarter. We are experiencing significant business efficiencies on strong revenue growth.
And in Q1, we had not yet returned fully to in-person meetings, events or are fully back in the office. Turning to the balance sheet and cash flow statements, we ended the quarter with $1.7 billion in cash, cash equivalents restricted cash and marketable securities. Cash flow from operations was $147 million in the quarter. After taking into consideration capital expenditures and capitalized software, free cash flow was $130 million with a free cash flow margin of 36%.
Now for our outlook for the second quarter in the fiscal year 2022. We remain optimistic about our long-term growth opportunities. We continue to see cloud migration and digital transformation as trends that are still in relatively early stages, and we are investing aggressively and are successfully executing against these long-term opportunities. With the usual conservatism applied, our outlook is as follows: For the second quarter, we expect revenue to be in the range of $376 million to $380 million which represents 62% growth year over year at the midpoint.
Non-GAAP operating income is expected to be in the range of $49 million to $53 million, and non-GAAP net income per share is expected to be in the range of $0.13 to $0.15 per share on an approximately 347 million weighted average diluted shares outstanding. For the full fiscal year 2022, we expect revenue to be in the range of $1.6 billion to $1.62 billion, which represents 56% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $240 million to $260 million and non-GAAP net income per share is expected to be in the range of $0.70 to $0.77 per share on an approximate 349 million weighted average diluted shares. Now some notes on our guidance.
First, when providing guidance, as usual, we use more conservative assumptions than historical performance. Second, our strategic focus remains to invest aggressively in R&D and go-to-market to optimize for long-term growth. In Q1, we are pleased to have had our best-ever quarter of hiring, and we plan to continue hiring aggressively throughout 2022. Our North America and EMEA employees returned to the office at the end of Q1, and our APAC employees are returning to office during Q2.
In addition, trade shows and other events are picking up in Q2, as is employee travel. In the past, we have framed the benefit of stopping in-person T&E and marketing events during COVID as 300 to 400 basis points of margin impact. We expect our return to office and increased in-person marketing events, as well as our headcount growth to more fully impact margins in Q2 relative to Q1. And even as we embark on these investments and our return from COVID, we remain solidly profitable, as indicated by our guidance.
Next, regarding income tax expenses in Q2, we will have a provision of about $3 million related to the Sqreen acquisition as well as our typical provision, mainly related to our international entities. Finally, as we discussed last quarter, we are catching up on office build-outs in 2022 and expect capex as a percent of sales to roughly double compared to 2021. In conclusion, we are very pleased with our results in Q1. We continue to attract more customers to the Datadog platform.
We are broadening our platform's capabilities and observability and we launched application security monitoring in Q1. We are working very hard to execute against our opportunities, and I want to conclude by thanking Datadog's worldwide for their efforts. With that, we'll open the call for questions. Operator, let's begin the Q&A.
Questions & Answers:
Operator
[Operator instructions] The first question comes from Raimo Lenschow with Barclays.
Raimo Lenschow -- Barclays -- Analyst
Congrats as well, an amazing first quarter. I wanted to ask a question that I get a lot from investors, Olivier. If you think about your efforts around security, how do you see that playing out in the long run against like the pure-play security players? Is that complementary? Are you kind of moving to say turf? Is it like [Inaudible]? How do -- how should we think about that? And then second thing is on the ongoing investments into R&D, etc. Can you talk a little bit about the benefit you're getting from being just a pure cloud provider and hence, your speed of innovation potentially could just move quicker than other players that have to work in on-premise and on the cloud environment?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So on security -- So first of all, the way we see ourselves in the ecosystem is we don't compete with everyone in the field there like security is very wide. There's many different categories and subcategories in there where we want to play a major role in securing the production, the applications and production environment and all of the life cycles that relate to that in terms of development operations and iterative changes to these environments. So that's where we're starting. We expect to compete with others there.
We come from a different place in that we come from having all of the observability data already being deployed end to end on those systems and having active users, the integrality of the development and operations teams in these companies, and we think that's what gives us strength there. To the other point you brought up around the speed of iteration, we definitely benefit a lot from being cloud-native and from being SaaS-only. We actually get a lot of information about what customers do with our product and we see immediately what's being used not and what's working or not. So that helps us iterate very fast.
We also benefit from having a lot of users. I mentioned that in the first part of my answer, but we're being used every single day by every single developer and person. That's a lot more than what you see on the typical security products. And so that gives you a lot more information about what you can do and what you can do better.
It also gives you more leverage when it comes to actually solving the issues at the six-year level. And that's part of the value prop we give to our customers.
Operator
The next question comes from Kash Rangan with Goldman Sachs.
Kash Rangan -- Goldman Sachs -- Analyst
Congratulations on a phenomenal quarter. Olivier, I'm curious to get your take on the hyperscalers. And given the broadening product suite that Datadog is undertaking. How are these conversations changing with the hyperscalers? And one for you, David.
As the economic environment and the outlook for GDP growth continues to be a little bit wobbly with higher rates, how should we think about the defensibility of the Datadog consumption business?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So on the question about hyperscalers. So we work hand-in-hand with hyperscalers more and more. So we cover a lot more of the, I would say, the management surface for our customers who are also their customers. We help their customers be more successful and move to the cloud faster.
And so as such, we help generate revenue for the hyperscalers, and that's why this partnership works so well with them. We keep improving on those partnerships and developing them. I think we've announced this quarter some improvements to our Azure partnership, for example, where we are now part of the -- I would say, the Golden Pass presented by Azure for migrating to the cloud. And we're seeing some great customers onboarding, thanks to that.
David, you want to take the other question?
David Obstler -- Chief Financial Officer
Sure. Thanks, Kash. We believe that digital and cloud projects are still very high priority and are not being deprioritized. We haven't seen that.
We think we're still early on. So with the data we have so far, we think there will be continued strong investment. There is always some volatility across our customer base. Our customer base is very well diversified across industries, and we benefited from that over time.
So whereas we're not macro forecasters, and there may well be some sensitivity. We believe the long-term trends in digital migration and cloud will still be very strong throughout that cycle.
Operator
The next question comes from Fatima Boolani with Citi.
Fatima Boolani -- Citi -- Analyst
Oli, one quick one for you, just as it relates to the deeper strategic and technical penetration within the DevSecOps arena. I mean, it sounds like your thesis is very much because you have the critical massive data and the data gravity as it relates to your observability use cases, you're able to parlay that in a more meaningful way for security. And I'm wondering why not partner with some of your peers in that space versus kind of go at it alone? And then a quick follow-up for David, please.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So that's a good question. So there's two things we bring to the table in security. One is we have, as you mentioned, the gravity and we're in the path of data for pretty much everything that relates to our customers infrastructure applications and their own users, which is obviously fantastic.
The other thing we bring is we have -- we're being used all day by everyone in development and in operations. And that's not typically something that the other security products -- or the typical security products are built for. So it's actually hard if you wanted to partner, it's hard to find a product that's built for those people. Most security products are purely built for security teams.
So that's why we've been building a lot of that. Of course, we still partner with a lot of the other players in the industry. But we embarked on this journey because we think we have come from a different spot. We think we have different take on the problem that in the end, is -- offers us and our customers a lot more leverage in that actual chance at solving the six day issues, not just throwing software and resources at it.
So this is where we come from.
Fatima Boolani -- Citi -- Analyst
And, David, just with respect to that delta between reported revenue growth in billings, it's probably one of the bigger deltas we've seen in relation to recent quarters. And given your commentary around invoicing duration having stayed stable. I believe that would be -- that would imply seven to eight months. I'm still curious as to why you'd see such a meaningful acceleration in billings head and shoulders above revenue growth.
If you could just unpack that for us a little bit and when you expect that divergence to narrow.
David Obstler -- Chief Financial Officer
And I have to -- as I mentioned, there is variability in billing and RPO versus revenue based on when bills go out. We still have, for the most part, in our larger contracts pretty much annual billing. So the sending out of a large annual bill might move the duration a little bit, but not a lot. And the strong performance, the billing was very strong and indicative of the business.
it was complemented by the fact that in this quarter, we sent out the bill for some large contracts upfront annual billing and the timing of that causes the variability. Over the average and over the course of the year, that balances out with the timing of the billing, and we believe that billing converges with revenue growth. We remind everybody that revenue growth and implied ARR growth is a better metric of the progress of the business.
Operator
The next question comes from Sanjit Singh with Morgan Stanley.
Sanjit Singh -- Morgan Stanley -- Analyst
Olivier, in your script, you mentioned a Fed ramp. I should have brought on kind of another topic that we were sort of hearing about from your partners, which is penetration observability in some of the under-penetrated industries. From your perspective, if you look at the different industries that Datadog participates in, which of the industries do you see can become greater adopters of observability versus some of the kind of traditional technology e-commerce for the [Inaudible].
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, look, we've seen pretty much every single industry shows some signs of moving to the cloud already, I think. The order in which this industry has moved really depends on their appetite for being at the leading edge of technology changes and their exposure to interacting with their users online. So what we see, what we saw first, obviously, was the -- so finance, for example, which is ahead in technology in general, or in things like e-commerce, online media, that sort of thing. Today, we actually see the full range of categories in the industries coming to the cloud.
For example, we mentioned an auto manufacturer in [Inaudible], we mentioned in hotel chain, we mentioned in the previous calls, we mentioned plumbing supplies companies, pretty much every single part of the economy is coming there. You're right, though, in your comment that some of those are late to the game than others. And so there's less penetration, I would say, in the more traditional less tech focused -- less tech-focused parts of the industry, but we're confident and everybody is coming to that part. It's also the case in regulated industries, government, in particular, where not only the moves are a little bit more conservative in terms of technology transitions, but also this part of the industry are also more limited in what they can purchase, which is why it was very important for us to get FedRAMP-certified, which is also why we keep investing in more FedRAMP and more similar certifications, so we can go into more of these categories in more geographies.
Sanjit Singh -- Morgan Stanley -- Analyst
Makes total sense. And then just 1 follow-up on one of the wins that you guys called out, I think it was a European manufacturer who I think was sort of engineering talent sort of constrained and they moved off of their DIY solution. And so we take out the topic more broadly, because you think that the demand for talent and as a new talent is probably going to get worse, and so in terms of the DIY observability market converting to more commercial out-of-the-box value like a Datadog provide? How much of an opportunity do you think that could be for the business?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, I think that's part of our -- it's always been part of opportunity, and that's really what makes the value prop even more attractive in the future. As you correctly pointed out, there's not going to be as many software engineers in general as the market will need. There's not this year, there's not going to be -- I think it's going to be even less the case two years, three years, five years, 10 years from now. So what our customers will need is a way for their existing staff to be more productive and a way to direct them to what is actually going to be differentiating for them as opposed to building and differentiated infrastructure.
So we clearly play -- this is a trend that benefits us in the end. The other thing to bring up is that software in general is deflationary in nature. And that's also the case for us. We help our customers make more with what they have.
We have them automate. We have them make people more productive. We have them [Inaudible] user infrastructure better. We help them ship projects that help them interact with their own customers better.
So that's where we play.
Operator
Next question comes from Brent Thill with Jefferies.
Brent Thill -- Jefferies -- Analyst
David, in your guidance, I know you mentioned you're not really seeing the macro issues, but are you assuming a similar close rate on your pipeline? Are you taking a more conservative close as it relates to the back half of what you're guiding to for the year?
David Obstler -- Chief Financial Officer
Like all -- as we've talked about, like all of our guidance, we tend to take more conservative close rates, i.e., new logos and more conservative usage than we've experienced historically. So that principle continues with our guidance and is consistent with what we've done in the past.
Brent Thill -- Jefferies -- Analyst
OK. Great. And Olivier, that $10 million upsell, can you just speak to the pipeline of these larger transactions, what you're seeing as your customers expand?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, we see many more customers in that range, right? So customers are writing this adoption curve with us, where we saw the bigger and bigger problem for them, they use more and more of our products. They move more and more of the infrastructure in the cloud to start with, and they themselves are scaling. So these are all multiplayers that end up increasing our footprint with them. So we have a healthy pipeline of those.
We mentioned we hand pick a few in every one of those calls, but that's definitely not an isolated case. And that customer is actually in the tens of millions and it's a -- I think, we don't expect that to be an isolated case.
David Obstler -- Chief Financial Officer
And I think we mentioned the strong continued growth of 100,000-plus and mentioned, even though we don't give out the 1 million customers every quarter, mentioned continued strong growth in millions. And that's indicative of that. We have many customers who are graduating from smaller lands to the 100,000, the 500,000 class and the 1 million class and above as our model has been all along.
Operator
The next question comes from comes from Kamil Mielczarek with William Blair.
Kamil Mielczarek -- William Blair and Company -- Analyst
Congrats on the great quarter. A question on pricing, as your largest customer scale and standardize on Datadog, can you talk about how conversations have changed around pricing? And are there any particular modules where you're seeing relatively higher levels of pushback on cost given the rapid growth in data recently and the pricing changes made by some of your competitors in the last two years?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So the -- look, any time you -- somebody is paying you tens of millions of dollars a year there's going to be a conversation about price because this is a line item that shows up. Typically, the -- what's going to be the most negotiated as part of that is the biggest part of the deal, which for some customers in infrastructure, for some other APM, for many customers is logs because that's the one where data can grow in a way that's somewhat decorrelated from the size of the accompanying infrastructure or the value of the accompanying applications. And our approach there really is to give as much flexibility as possible to customers so they can align with their pay with the value they get.
And we've shipped in the past many, many new features around that to give them more tiers for storing data, more ways of doing just in time sampling, archiving, bringing back data from archive, give them more controls, more levers, and we expect to do more of that in the future. But it's a very healthy conversation. We do expect that when customers at fully at scale with us, the -- we get more and more of a wallet share from them. But at the same time, the revenue we get won't grow linearly with the data volumes they send to us.
That's natural. That's healthy.
Kamil Mielczarek -- William Blair and Company -- Analyst
That's helpful. And if I could just follow up on free cash flow, generation has been very strong, 36% margin in the quarter, and I think, 28% for last year. How are you thinking about managing free cash flow margin going forward? Is the strength just a function of better-than-expected growth and maybe a tight labor market? Or do you see high 20s, 30% at a sustainable level?
David Obstler -- Chief Financial Officer
I think we've experienced long-term free cash flow to be slightly higher than EBIT. So correlate it with our EBIT, we have -- it is indicative of the growth of the business. and the efficiency of the business. As we mentioned, we will be returning, we believe, in Q2 to more investments, whether it be marketing events in the office, etc.
So where we expect it to continue to evidence the efficiency in the business, it would be as it has been correlated to be slightly higher than the EBIT performance.
Operator
The next question comes from Matt Hedberg with RBC Capital Markets.
Matt Hedberg -- RBC Capital Markets -- Analyst
Oli, I wanted to go back to security. You've obviously had a lot of success there and you're adding Hdiv this quarter. How do you see your sales force evolving over time? And maybe even the thought of a security overlay team at some point?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So we're open to anything there. We haven't made any drastic changes to that. We're still focus right now on getting in front of our existing customers with these products and getting them to adopt the products and writing the maturity clause of those products with us to make sure they are as broadly as clickable as possible before we accelerate on the go-to-market for them.
And we're very happy with where we are. We're exactly where we want to be. Actually, we get a lot of paying customers with skin in the game and a lot of eyes on the products and a great amount of letters in terms of development. We are expecting to test a few things on the go-to-market side in the -- I would say, in the coming few quarters, and then we'll see what this leaves us.
Where -- we see some successes today already with our mobility. We think it might actually try to for different things might accelerate things a little bit, but it's still early to tell.
Matt Hedberg -- RBC Capital Markets -- Analyst
And then you guys have always had a very services-light model so easy to use. As you continue to scale up in the G2K, are there additional steps you can do to maybe even enable more synergies within a GSI community?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So there's two things we're doing. So one is we're investing in our partnerships with GSI and with the channel in general. So we're doing more there.
And we also started productizing some service offerings. We actually called one out in one of the customers we see in the call. We have a small services team today that has a few packaged offerings that mostly revolve around accelerating adoption of Datadog and making sure we help customers that need that help, transform their businesses around the way things are running Datadog. So we're investing on both sides.
I mean, obviously, whatever we package ourselves with our own team, will then be scaled through third-party partners, GSIs and others.
Matt Hedberg -- RBC Capital Markets -- Analyst
Congrats on a strong Q1.
Operator
The next question comes from Michael Turits with KeyBanc.
Michael Turits -- KeyBanc Capital Markets -- Analyst
Great quarter. The -- i want it first -- to Oli, first, you're doing more application security and you've announced some things for observability in developer pipeline. Can you talk about how far you will be going in terms of a shift left toward more of the development side of things, including possibly around static code or source code. And as I said, just that shift left toward developers?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So that's a great question. We definitely are doing more and more on the shift left and developer side. Obviously, we've talked about security quite a bit, and a big part of that is application security, which is a bit of a known category. So it's there, I think it's a little bit different in how we approach it, a little bit different in the cloud.
but the category has been there before. We're also investing in new categories, and you mentioned the CICD observability. That's a brand-new category. I wasn't there before.
And we actually have a product in the market today that we started charging for. And we don't have any numbers to share today, but we are actually very, very pleased with the way this product is being received by customers. So overall, we think we're going in the right direction there. There will be any more we'll want to do.
I mean you brought up Hdiv, which also brings a bit more around closer to the source code and vulnerability management and things like that. There's more we'll want to do there, but we don't have anything to announce today.
Michael Turits -- KeyBanc Capital Markets -- Analyst
And can I just ask, I think an expansion or take to Matt's question in terms of facilitating your broader product line. Anything in the customer success area that has to be changed or post production engineering or professional services as you have a more broader and more complex offering?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So we're scaling those teams quite a bit, and we're constantly also refining the way those teams are segmented so they can target specific types of customers in some situations, not many situations also seen type of product. So we -- that's part of scaling the teams on the customer success on the tech solutions on the support side. So we're investing quite heavily there.
I gave those teams to shot up because really, they've been doing a fantastic job at helping our customers scale and adopt a very broad product portfolio today. And I think there will be more successes to come there.
Operator
The next question comes from Brad Reback with Stifel.
Brad Reback -- Stifel Financial Corp. -- Analyst
Oli, as the sales force and the marketing team are return to face-to-face events, any reason to think that we shouldn't see some level of acceleration in upsells to the larger part of the installed base as well as the potential to land even bigger with new deals?
Olivier Pomel -- Co-Founder and Chief Executive Officer
It's possible. I mean, look, we definitely have return to investment in some things that we were not doing for the past two years that we're doing again in in-person events in particular. I would say it's too early to tell whether it's it gives us an edge again on that side or whether it's just upping the table stakes for everyone for that. But definitely, we're investing with the expectations of returns on that.
Operator
The next question comes from Gray Powell with BTIG.
Gray Powell -- BTIG -- Analyst
Congratulations on the strong results. So yes, I mean you've clearly been seeing very good traction moving into larger enterprise and Fortune 500 accounts. How does the competitive environment change there as you move up market? And then do you end up begging off against a different set of vendors? Or just how should we think of that impacting sales cycles?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So I'm sorry, I'm going to give you the most boring answer ever, but we see no change. The situation there is very much the same as it was last quarter and even last year. We still focus largely on net new and cloud environments. We land fast and small mostly, and we end up growing quite a lot with those customers at the largest enterprises.
Sometimes, but not all the time, we're going to do a big displacement of usually a suite of tools that makes it homegrown and some of the other players in log, APM or infrastructure or all of the above. And these are -- these tend to be the larger lands because they start they start larger as they replace a bunch of existing things. But this is still not the majority of the go-to-market and customer acquisition. I think it shows that the product wins about all sorts of situations, but our focus is still on net new and cloud environment.
Gray Powell -- BTIG -- Analyst
Got it. That's helpful. And then just -- maybe just a quick follow-up on the security side, if it's OK. Is there anything more you can just say on the road map in the security space, or just like talk about the most natural capabilities that could be included as you start to move into version two of the security platform.
And I guess more specifically, and this might be a tough one, but -- do you see a scenario where you could more directly address the endpoint security use case?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, so endpoint, I think, is -- it's not what we have in mind today, right? I mean there's plenty we want to do at the intersection of DevOps production environment applications. Like it's a gigantic problem space and one that's not well handled today. So we definitely are -- have that in our sights today. In terms of what we can do in the road map, interestingly, there are many things we're doing today that are not branded security that are part of other products that actually play a big role in security.
And so one of the questions we have internally, how do we actually draw the line around the security suite versus the rest of the DevOps platform in a way that it doesn't confuse everyone. I mean, for example, we mentioned in the last call, our sensitive data scanner product, which actually is used for security use cases, but it's currently part of our log management product. We have some similar situation with our network monitoring product that also listens to data and uses it for security use cases, but it's not part of our security offering. So there are some branding and packaging and product suite questions that we'll have to answer ourselves there.
Operator
The next question comes from Steve Koenig with SMBC Nikko.
Steve Koenig -- SMBC Nikko Securities -- Analyst
Congrats on the quarter, it's a pleasure to be covering you guys. I wanted to ask about pricing, again, with kind of a little different angle. And thanks for your color on how you help customers manage their costs as they scale out with Datadog. That's very helpful.
If I think about it from a different angle, more from the perspective of how you keep your pricing in check with infrastructure costs as the hyperscalers improve their price performance over time on compute and storage, how does -- you have a relatively simple pricing model in the space, which is a good thing. But I'm wondering, does the host-based pricing -- do those prices need to change over time as hyperscalers ride their cost curve down? And also in log management as well as your -- you do have some data charges. And do those need to come down over time as hyperscalers become more price performance. Congrats again on the quarter.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Thank you. Well, so there's a few things to consider there. So one is like the type of hosts that our customers buy also is changing over time, that they're also getting larger and larger instances from the cloud providers that costs more and more, even though the price for the same CPU on two different years is going to maybe get reduced a little bit by the hyperscalers. The other factor to consider is that overall, even with all the improvements from the cloud providers and the, I would say, the software industry at large, our customers' experience still a dramatic increase in complexity.
And overall, what this means is that a lot of the value gets shifted from actually from running the infrastructure itself to understanding it and managing it, which is what we do. So in the end, we are in a position where we can maintain or even increase prices while still delivering more value for our customers and selling them more money. So that's the general dynamics here. Now when you look at the things that are tied to very specific units.
So for example, the price per gigabit and things like that, like -- of course, price per gigabyte is going to go down over time in some point. Right now, the form it takes is that there are more and more options that we keep giving our customers so they can do different things with different price points. But in the long run, if you fast forward 20 years, of course, you wouldn't expect to pay the same thing for gigabyte in 20 years than you do to that. But at the same time, I would say you also will have many, many, many others of managing more data at the time.
Operator
The next question comes from Joel Fishbein with Truist Securities.
Joel Fishbein -- Truist Securities -- Analyst
Great quarter. Olivier, you spoke a lot about several different potential products in the pipeline as you guys are developing internally. I'm hoping you might give us a little bit more color about the mid- and longer-term plans with regard to maybe areas that you plan to address with new products.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, we have plenty of new products in the works, but for that, you'll have to show up to our events and conferences. We do expect to show more of that in the quarters to come. The areas we're going after, obviously, we're still doubling down on observability. We're early in observability.
There's a lot more we can do -- we want to do a lot more that's going to bring value for our customers, and it's a very large market. Obviously, we've been very open about the fact that we're investing massively in security and these costs in particular. So you'll see more from us on that. We also are pushing toward the developer workflows as we had mentioned, with CICD and some aspects of security and some other things that we might show.
We're also investing in pushing or extending our user experience products in APM Suite to behavioral and user analytics as well as business analytics. So we keep pushing more and more functionality toward that, and you should expect to see more products from us in that area, which takes us into real-time BI. And then finally, we also are investing in ITSM-minded products started with incident response and incident resolution. And you should expect to see more from us in that area in the future as well.
Again, I can't give you any more details. We have a lot of both in the year right now, a lot of products in flight. We're very bullish about the opportunity. We think -- we see it at a privileged part of the ecosystem where we have such a large surface of contacts, so customers infrastructure, their application, as well as their teams, their developers and their operations teams and other securities that we can solve an increasingly larger problem for them over time while benefiting from frictionless adoption of our platform, which is what is beautiful free cash flow margins that we've talked about today.
So again, very bullish, a lot of products in a lot of things we're working on, but nothing more to announce today.
Operator
The next question comes from Adam Tindle with Raymond James.
Adam Tindle -- Raymond James -- Analyst
Olivier, I just want to start on Hdiv. The acquisition announced today with a vulnerability focus. Could you help us categorize where this competes in the stack? And specifically, are we focused on end point like CrowdStrike with the spotlight product or critical assets like server and data center where VM players like Tenable, Qualys and Rapid7 fit? So where does this fit within the stack and vulnerability and talk about the competitive advantage that they'll bring.
Olivier Pomel -- Co-Founder and Chief Executive Officer
It focuses on applications. And these are the applications that our customers build as well as the various libraries and dependencies that are brought into the mix as our customers build these applications. So this is -- this will find its place on the application side of our cloud security platform. We don't have much more to share on the way this will be combined from a product perspective.
But we see it as great technology, great product and also great expertise to add to the team and add to our momentum on the security side. And by the way, [Inaudible] as often is the case with security companies, there are some regulatory approvals to get disclosed.
Adam Tindle -- Raymond James -- Analyst
I know I'm going to be out of time. David, seasonality has just been a constant topic. It seems like since last quarter. I'm sure you're answering a bunch of investor questions intra-quarter about it.
And the second half is a little lower as a percent of total than years past based on guidance. Anything for us to consider on seasonality now that you're a $1 billion-plus organization moving forward?
David Obstler -- Chief Financial Officer
No. It's always been -- it's a similar type of thing where -- the fourth quarter tends to be strong on customer acquisition. We have had, like every company a little slower and new customer acquisition in Q3 that didn't hold last year. It was a very, very strong Q3.
And as we mentioned, generally, as you start the year in the first quarter, you have a little bit of slowness in getting going. In this quarter, we didn't have that as much. So it's really the same types of seasonality, which is quite minor relative to the previous years.
Operator
This concludes our question-and-answer session. I'll hand the conference back over to CEO, Olivier Pomel, for any closing remarks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
All right. Thank you all for attending the call. And I want again to thank all Datadog's and there's many more of you out there. I should remind everyone that we've had our most successful hiring quarter in Q1.
So thank you all, and we're all excited to be here, and we'll see you next quarter.
Operator
[Operator signoff]
Duration: 63 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
Kash Rangan -- Goldman Sachs -- Analyst
Fatima Boolani -- Citi -- Analyst
Sanjit Singh -- Morgan Stanley -- Analyst
Brent Thill -- Jefferies -- Analyst
Kamil Mielczarek -- William Blair and Company -- Analyst
Matt Hedberg -- RBC Capital Markets -- Analyst
Michael Turits -- KeyBanc Capital Markets -- Analyst
Brad Reback -- Stifel Financial Corp. -- Analyst
Gray Powell -- BTIG -- Analyst
Steve Koenig -- SMBC Nikko Securities -- Analyst
Joel Fishbein -- Truist Securities -- Analyst
Adam Tindle -- Raymond James -- Analyst
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG) Q1 2022 Earnings Call May 05, 2022, 8:00 a.m. Operator [Operator signoff] Duration: 63 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 Kash Rangan -- Goldman Sachs -- Analyst Fatima Boolani -- Citi -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Gray Powell -- BTIG -- Analyst Steve Koenig -- SMBC Nikko Securities -- Analyst Joel Fishbein -- Truist Securities -- Analyst Adam Tindle -- Raymond James -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We think we have different take on the problem that in the end, is -- offers us and our customers a lot more leverage in that actual chance at solving the six day issues, not just throwing software and resources at it.
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Operator [Operator signoff] Duration: 63 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 Kash Rangan -- Goldman Sachs -- Analyst Fatima Boolani -- Citi -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Gray Powell -- BTIG -- Analyst Steve Koenig -- SMBC Nikko Securities -- Analyst Joel Fishbein -- Truist Securities -- Analyst Adam Tindle -- Raymond James -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q1 2022 Earnings Call May 05, 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 second quarter and the fiscal year 2022, our gross margins and operating margins including from the impact of R&D, go-to-market, capex and increased office activity and marketing, our strategy, our product capabilities, our ability to capitalize on market opportunities and the closing of acquisitions.
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Operator [Operator signoff] Duration: 63 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 Kash Rangan -- Goldman Sachs -- Analyst Fatima Boolani -- Citi -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Gray Powell -- BTIG -- Analyst Steve Koenig -- SMBC Nikko Securities -- Analyst Joel Fishbein -- Truist Securities -- Analyst Adam Tindle -- Raymond James -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q1 2022 Earnings Call May 05, 2022, 8:00 a.m. Application security monitoring is the 14th product in the Datadog platform, and this is the fourth product within our cloud security platform alongside Cloud Team, Cloud Workload Security and Cloud Security Posture Management.
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Operator [Operator signoff] Duration: 63 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 Kash Rangan -- Goldman Sachs -- Analyst Fatima Boolani -- Citi -- Analyst Sanjit Singh -- Morgan Stanley -- Analyst Brent Thill -- Jefferies -- Analyst Kamil Mielczarek -- William Blair and Company -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Gray Powell -- BTIG -- Analyst Steve Koenig -- SMBC Nikko Securities -- Analyst Joel Fishbein -- Truist Securities -- Analyst Adam Tindle -- Raymond James -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q1 2022 Earnings Call May 05, 2022, 8:00 a.m. And 12% of our customers were using six or more products, up from 4% last year.
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8641eb4d-12da-46d7-b8c6-56b6a0a60e6f
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718662.0
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2022-05-05 00:00:00 UTC
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Datadog (DDOG) Surpasses Q1 Earnings and Revenue Estimates
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-surpasses-q1-earnings-and-revenue-estimates
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Datadog (DDOG) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 118.18%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.11 per share when it actually produced earnings of $0.20, delivering a surprise of 81.82%.
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 $363.03 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.63%. This compares to year-ago revenues of $198.55 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 33.2% since the beginning of the year versus the S&P 500's decline of -9.8%.
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 $0.11 on $361.27 million in revenues for the coming quarter and $0.49 on $1.52 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 bottom 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.
Another stock from the same industry, Versus Systems Inc. (VS), has yet to report results for the quarter ended March 2022.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +44%. The consensus EPS estimate for the quarter has been revised 41.4% higher over the last 30 days to the current level.
Versus Systems Inc.'s revenues are expected to be $0.52 million, up 57.6% from the year-ago quarter.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
Versus Systems Inc. (VS): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.11 per share. 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 Datadog (DDOG) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.11 per share. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $363.03 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.63%.
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Datadog (DDOG) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.11 per share. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $363.03 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 7.63%.
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Datadog (DDOG) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.11 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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1b431986-7da0-4680-a582-4fc64d0e0d42
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718663.0
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2022-05-04 00:00:00 UTC
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Pre-Market Earnings Report for May 5, 2022 : COP, ZTS, BDX, D, ICE, APD, SHOP, SRE, BCE, PH, DDOG, APTV
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DDOG
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-may-5-2022-%3A-cop-zts-bdx-d-ice-apd-shop-sre-bce-ph-ddog
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The following companies are expected to report earnings prior to market open on 05/05/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
ConocoPhillips (COP)is reporting for the quarter ending March 31, 2022. The oil company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.24. This value represents a 369.57% increase compared to the same quarter last year. In the past year COP has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 3.18%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for COP is 6.86 vs. an industry ratio of 12.30.
Zoetis Inc. (ZTS)is reporting for the quarter ending March 31, 2022. The drug company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.22. This value represents a 3.17% decrease compared to the same quarter last year. In the past year ZTS has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.17%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ZTS is 34.07 vs. an industry ratio of -0.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Becton, Dickinson and Company (BDX)is reporting for the quarter ending March 31, 2022. The medical/dental supplies company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.99. This value represents a 6.27% decrease compared to the same quarter last year. In the past year BDX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 27.27%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BDX is 19.55 vs. an industry ratio of 25.20.
Dominion Energy, Inc. (D)is reporting for the quarter ending March 31, 2022. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.19. This value represents a 9.17% increase compared to the same quarter last year. D missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -1.3%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for D is 19.72 vs. an industry ratio of 15.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Intercontinental Exchange Inc. (ICE)is reporting for the quarter ending March 31, 2022. The securities exchange company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.42. This value represents a 5.97% increase compared to the same quarter last year. In the past year ICE has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for ICE is 20.37 vs. an industry ratio of 30.10.
Air Products and Chemicals, Inc. (APD)is reporting for the quarter ending March 31, 2022. The chemical company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.35. This value represents a 12.98% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for APD is 23.26 vs. an industry ratio of 16.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Shopify Inc. (SHOP)is reporting for the quarter ending March 31, 2022. The internet services company's consensus earnings per share forecast from the 28 analysts that follow the stock is $-0.39. This value represents a 129.55% decrease compared to the same quarter last year. SHOP missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -70.21%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SHOP is -214.38 vs. an industry ratio of 0.70.
Sempra (SRE)is reporting for the quarter ending March 31, 2022. The gas distribution company's consensus earnings per share forecast from the 4 analysts that follow the stock is $2.79. This value represents a 5.42% decrease compared to the same quarter last year. In the past year SRE has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SRE is 19.02 vs. an industry ratio of 13.70, implying that they will have a higher earnings growth than their competitors in the same industry.
BCE, Inc. (BCE)is reporting for the quarter ending March 31, 2022. The diversified company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.64. This value represents a 3.23% increase compared to the same quarter last year. In the past year BCE has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BCE is 20.25 vs. an industry ratio of 60.30.
Parker-Hannifin Corporation (PH)is reporting for the quarter ending March 31, 2022. The machinery company's consensus earnings per share forecast from the 5 analysts that follow the stock is $4.61. This value represents a 12.17% increase compared to the same quarter last year. In the past year PH has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 15.84%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PH is 15.23 vs. an industry ratio of 18.60.
Datadog, Inc. (DDOG)is reporting for the quarter ending March 31, 2022. The internet software company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-0.06. This value represents a 100.00% decrease compared to the same quarter last year. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -478.71 vs. an industry ratio of -107.40.
Aptiv PLC (APTV)is reporting for the quarter ending March 31, 2022. The technology services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.63. This value represents a 40.57% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for APTV is 28.32 vs. an industry ratio of -1.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog, Inc. (DDOG)is reporting for the quarter ending March 31, 2022. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -478.71 vs. an industry ratio of -107.40.
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Datadog, Inc. (DDOG)is reporting for the quarter ending March 31, 2022. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -478.71 vs. an industry ratio of -107.40.
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Datadog, Inc. (DDOG)is reporting for the quarter ending March 31, 2022. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -478.71 vs. an industry ratio of -107.40.
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Datadog, Inc. (DDOG)is reporting for the quarter ending March 31, 2022. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DDOG is -478.71 vs. an industry ratio of -107.40.
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b1e4caa5-ea4d-4cef-af62-fc308ce59155
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718664.0
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2022-05-04 00:00:00 UTC
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Nasdaq 100 Movers: IDXX, SBUX
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-idxx-sbux
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In early trading on Wednesday, shares of Starbucks topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. Year to date, Starbucks has lost about 32.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories, trading down 9.3%. Idexx Laboratories is lower by about 40.0% looking at the year to date performance.
Two other components making moves today are Datadog, trading down 8.2%, and Airbnb, trading up 5.5% on the day.
VIDEO: Nasdaq 100 Movers: IDXX, SBUX
The views and 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 Idexx Laboratories, trading down 9.3%. Idexx Laboratories is lower by about 40.0% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: IDXX, SBUX The views and 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 Starbucks topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. Year to date, Starbucks has lost about 32.4% of its value. And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories, trading down 9.3%.
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In early trading on Wednesday, shares of Starbucks topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.5%. And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories, trading down 9.3%. Two other components making moves today are Datadog, trading down 8.2%, and Airbnb, trading up 5.5% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Idexx Laboratories, trading down 9.3%. Idexx Laboratories is lower by about 40.0% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: IDXX, SBUX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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718665.0
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2022-05-04 00:00:00 UTC
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Looking Back at Hot Tech IPOs From a Decade Ago
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DDOG
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https://www.nasdaq.com/articles/looking-back-at-hot-tech-ipos-from-a-decade-ago
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With the stock market turning firmly negative in recent months, it's important to try putting things in historical context. Investors have seen shares of many companies get cut in half or more. It happens from time to time. Some deserved it. Others have great businesses in rapidly expanding industries.
Software-as-a-Service (SaaS) stocks are an example. Although valuations are lower, the businesses continue to perform well. That's why I thought it would be useful to look back a decade at former highflying SaaS stocks -- first, to see if they also experienced a significant decline in the price-to-sales (P/S) ratio, and second, to see if their growth was able to overcome the valuation crunch and make them good investments over the long term.
Here's what I found.
Image source: Getty Images.
An impressive cohort
Five of the most high-profile -- and expensive -- tech stocks to go public in 2012 were Workday (NASDAQ: WDAY), Splunk (NASDAQ: SPLK), Palo Alto Networks (NASDAQ: PANW), and ServiceNow (NYSE: NOW). Respectively, they offered software to manage and analyze human capital, machine data, cybersecurity, and information technology workflows. The largest initial public offering (IPO) of 2012 was Meta Platforms (NASDAQ: FB) -- it was just Facebook back then. It isn't SaaS, but it belongs in any analysis of 2012 IPOs.
Creating a somewhat similar cohort of tech companies that have come public in the past few years isn't difficult. We'll compare the 2012 group to Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), DataDog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and MongoDB (NASDAQ: MDB). Let's compare the numbers.
Growing into their valuation
If we're going to make a comparison to the past, we need to first establish just how expensive the stocks were. We'll use the beginning of 2013 -- the year after their IPO -- as a starting point to find their peak valuation.
COMPANY PEAK P/S RATIO
Workday 42
Splunk 33
Palo Alto Networks 19
ServiceNow 27
Meta Platforms 23
Data source: YCharts.
They were all growing sales between 50% and 90% per year. That's similar to today's cohort of beloved tech stocks. All but ServiceNow saw their P/S ratio decline over the next decade.
WDAY PS Ratio data by YCharts
Declining valuations don't mean bad investments
Even with declining valuations, every one of the stocks has significantly outperformed the S&P 500 Index since the beginning of 2013. That's no guarantee for the future. But it should lay to rest any notion that just because a stock has a high valuation, it will trail the market. Before ascribing the outperformance to the pandemic, you should know the outperformance holds true even if you use 2017, 2018, or 2019 as the ending point.
WDAY data by YCharts
The current cohort of stocks
Like the standouts from the IPO class of 2012, some of the most popular tech stocks now are all growing between 50% and 100% annually. It's rare company and deserves a premium. But even after having their P/S ratios cut in half or more, the current batch of stocks are still trading at a higher valuation than the 2012 cohort was at their peak.
COMPANY PEAK P/S RATIO CURRENT P/S RATIO DECLINE
Snowflake 143 42 71%
CrowdStrike 67 31 54%
DataDog 69 36 48%
Cloudflare 114 41 64%
MongoDB 47 26 45%
Data source: YCharts.
Applying the lessons of the past
That means if history is a guide, there could be a lot farther for valuations to fall even for the best-performing businesses. On the bright side, the growth of the businesses could more than make up for it. In fact, they may still crush the market in the years ahead. Every one of our 2012 cohort did.
That highlights perhaps the most important lesson investors can learn from this analysis: The price you pay for shares matters, but maybe not as much as some would have you believe. Great companies typically make great investments even when they're priced at what seem like elevated valuations.
When the mood on Wall Street turns dark, they're often the first to get punished. But bad moods don't last forever. And over a span of multiple years, the performance of the business takes over. That's why investors should focus on the business results and not the stock price. The group above are all down between 30% and 60% from their peak. Shareholders need to accept that they could fall further. But if the businesses keep performing, they're likely to still make great investments.
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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. Jason Hawthorne has positions in Cloudflare, CrowdStrike Holdings, Datadog, MongoDB, and Snowflake. The Motley Fool has positions in and recommends Cloudflare, CrowdStrike Holdings, DataDog, Meta Platforms, MongoDB, Palo Alto Networks, ServiceNow, Inc., Snowflake, Splunk, 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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We'll compare the 2012 group to Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), DataDog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and MongoDB (NASDAQ: MDB). With the stock market turning firmly negative in recent months, it's important to try putting things in historical context. That's why I thought it would be useful to look back a decade at former highflying SaaS stocks -- first, to see if they also experienced a significant decline in the price-to-sales (P/S) ratio, and second, to see if their growth was able to overcome the valuation crunch and make them good investments over the long term.
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We'll compare the 2012 group to Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), DataDog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and MongoDB (NASDAQ: MDB). An impressive cohort Five of the most high-profile -- and expensive -- tech stocks to go public in 2012 were Workday (NASDAQ: WDAY), Splunk (NASDAQ: SPLK), Palo Alto Networks (NASDAQ: PANW), and ServiceNow (NYSE: NOW). Workday 42 Splunk 33 Palo Alto Networks 19 ServiceNow 27 Meta Platforms 23 Data source: YCharts.
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We'll compare the 2012 group to Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), DataDog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and MongoDB (NASDAQ: MDB). An impressive cohort Five of the most high-profile -- and expensive -- tech stocks to go public in 2012 were Workday (NASDAQ: WDAY), Splunk (NASDAQ: SPLK), Palo Alto Networks (NASDAQ: PANW), and ServiceNow (NYSE: NOW). WDAY PS Ratio data by YCharts Declining valuations don't mean bad investments Even with declining valuations, every one of the stocks has significantly outperformed the S&P 500 Index since the beginning of 2013.
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We'll compare the 2012 group to Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), DataDog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and MongoDB (NASDAQ: MDB). But if the businesses keep performing, they're likely to still make great investments. The Motley Fool has positions in and recommends Cloudflare, CrowdStrike Holdings, DataDog, Meta Platforms, MongoDB, Palo Alto Networks, ServiceNow, Inc., Snowflake, Splunk, and Workday.
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5609df33-d522-496a-9d71-d38ccaf84625
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718666.0
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2022-05-03 00:00:00 UTC
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Why Datadog, HubSpot, and MongoDB Fell Hard Today
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DDOG
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https://www.nasdaq.com/articles/why-datadog-hubspot-and-mongodb-fell-hard-today
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What happened
Shares of high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. ET.
There wasn't any material news out of these three companies today. Likely, the market is quite nervous about tomorrow's Federal Reserve meeting and commentary from Chair Jay Powell. If Powell's commentary is more hawkish than anticipated, meaning that investors fear worse inflation and even more aggressive rate hikes in the future, it could hurt valuations of growth stocks, which have most of their profitability well out in the future.
So what
Make no mistake, today's sell-off has nothing to do with the performance of these companies, which have been doing quite well. Datadog has established itself as a go-to solution for application observability, or software that monitors the health and security of a company's important applications. As a cloud-first solution, Datadog looks to benefit from the hyper-growth of cloud software. All of the big three cloud computing infrastructure companies reported solid cloud growth last quarter, which bodes well for Datadog. Datadog grew revenue a whopping 83.7% last quarter.
HubSpot was another darling of the stay-at-home economy, as it provides digital marketing solutions to help small and medium-size businesses reach customers over the web. HubSpot has also grown its product set, from inbound marketing tools to a full-fledged customer relationship management platform that's catching on with enterprises large and small. Revenue grew a strong 46.5% last quarter.
Meanwhile, MongoDB is disrupting the important enterprise database space, with its document format database gaining popularity versus traditional row-and-column relational databases. Last quarter, MongoDB grew revenue 55.8%, with its cloud-based Atlas database-as-a-service offering growing fast.
These are all really impressive numbers and bode well for each company's long-term competitive position. Still, none of these companies generates profits today, and they trade at high price-to-sales multiples, with Datadog at 36, HubSpot at 13.5, and MongoDB at 26 times sales.
There was once a time when 10 times sales was considered expensive, but the recent era of all-star cloud software companies and low interest rates changed that. However, valuations are now de-rating back toward something closer to the prior era, though how much remains to be seen. If the Fed puts the economy on a path to materially higher interest rates, it could further hurt the valuations of these companies, even if their operating metrics remain good.
In a "good news is bad news" data point today, data was released showing a record high number of job openings in the U.S. While available jobs are a good thing for the economy, the labor shortage could spur more wage hikes, which would not be good when taken to the extreme. That's because if wages rise enough, prices of goods and services could follow, which could spur more wage increases to keep up with the cost of living, in what is known as the dreaded wage-price spiral.
That recent data point could spur the Fed to be more aggressive. So even though these stocks are down materially from their highs, it could be a challenging environment for them in the near term.
Image source: Getty Images.
Now what
Given the uncertainty about interest rates, it is hard to recommend buying or adding to these three names at these prices. I own MongoDB, but that was bought at significantly lower prices. These high-quality stocks seem like holds today, and potential sells if one needs near-term cash, as it may be difficult for them to overcome the valuation contraction going on.
Still, these three stocks seem like winners over the long term, so each belongs on your shopping list, should their prices fall further. I'd also be eager to see if these companies attempt to generate actual profits this year, instead of plowing very possible dollar back into growth. It will be interesting to see how even the top names in the SaaS space adjust to this new higher rate environment.
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Billy Duberstein has positions in MongoDB. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Datadog, HubSpot, 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 high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. HubSpot has also grown its product set, from inbound marketing tools to a full-fledged customer relationship management platform that's catching on with enterprises large and small. Still, none of these companies generates profits today, and they trade at high price-to-sales multiples, with Datadog at 36, HubSpot at 13.5, and MongoDB at 26 times sales.
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What happened Shares of high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. If Powell's commentary is more hawkish than anticipated, meaning that investors fear worse inflation and even more aggressive rate hikes in the future, it could hurt valuations of growth stocks, which have most of their profitability well out in the future. In a "good news is bad news" data point today, data was released showing a record high number of job openings in the U.S.
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What happened Shares of high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. Still, none of these companies generates profits today, and they trade at high price-to-sales multiples, with Datadog at 36, HubSpot at 13.5, and MongoDB at 26 times sales. If the Fed puts the economy on a path to materially higher interest rates, it could further hurt the valuations of these companies, even if their operating metrics remain good.
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What happened Shares of high-flying enterprise software-as-a-service (SaaS) stocks Datadog (NASDAQ: DDOG), HubSpot (NYSE: HUBS), and MongoDB (NASDAQ: MDB) were falling hard today, down 5.5%, 5.7%, and 4.5%, respectively, as of 3:52 p.m. If the Fed puts the economy on a path to materially higher interest rates, it could further hurt the valuations of these companies, even if their operating metrics remain good. Now what Given the uncertainty about interest rates, it is hard to recommend buying or adding to these three names at these prices.
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718667.0
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2022-05-02 00:00:00 UTC
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5 Big Data Stocks to Buy for Big Long-Term Growth
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DDOG
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https://www.nasdaq.com/articles/5-big-data-stocks-to-buy-for-big-long-term-growth
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nan
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nan
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Big data stocks might not seem like the most scintillating technology plays on the market. But their underlying companies provide a service of growing importance: cleaning and sorting an ever-swelling pool of digital data.
The proliferation of technologies from smart phones to cloud computing to the internet of things (IoT) has resulted in torrid growth of data being processed. The COVID-19 pandemic has only accelerated this pace. According to International Data Corporation, the amount of digital data generated during the next five years will be "greater than twice the amount of data created since the advent of digital storage."
However, much of these giant, complex pools of data (dubbed "big data") is effectively useless. That has in turn put heightened importance on technologies such as artificial intelligence (AI). Sophisticated algorithms sort through data to weed out noise and detect trends and other insights. Use cases include warding off cybersecurity threats, anticipating which factory equipment needs maintenance and determining whether customers will churn.
A number of software companies build tools, systems and platforms for dealing with big data. But which of these tech stocks boasts the most promising futures?
Read on as we explore some of the best big data stocks to buy right now.
SEE MORE The 22 Best Stocks to Buy for 2022
Data is as of May 1. Analyst ratings courtesy of S&P Global Market Intelligence. Stocks are listed by analysts' consensus recommendation, from highest score (worst) to lowest (best).
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Oracle
Market value: $195.8 billion
Analysts' ratings: 5 Strong Buy, 2 Buy, 18 Hold, 2 Sell, 1 Strong Sell
Oracle (ORCL, $73.40) might seem like an odd pick. It's not a pure play like the other big data stocks on this list. It's a mature company that has been around since the mid-1970s. And Wall Street has cooled on its prospects of late.
But don't sleep on this old-guard tech name, which boasts several major advantages, including a strong sales organization, a powerful global infrastructure and a trusted brand.
Oracle has been revamping its database tools, which has included heavy investment in cloud technologies. That has paid off of late – fiscal second-quarter cloud revenues were up 22% year-over-year, and its most recently reported results (fiscal Q3) jumped 24%.
"Oracle's strong FQ2 and FQ3 results and management guidance commentary for FQ4 and FY2023 reinforce our view that Oracle is well-positioned to emerge as the #3 or #4 vendor in the PaaS/IaaS market and as the #2 vendor in the SaaS market – enabling the company to continue to reaccelerate revenue growth," says Credit Suisse, which rates the stock at Outperform.
Another source of potential growth has come via acquisition. In late December, Oracle agreed to buy out Cerner – a leader in patient data systems for healthcare organizations – for $28.3 billion. Oracle plans to integrate its own systems into Cerner's platform, such as autonomous databases, low-code development tools and the Voice Digital Assistant.
The healthcare industry is poised for transformation, and the opportunity is massive; health spending accounts for roughly 20% of U.S. GDP. Technologies like Cerner's will be essential as healthcare service providers try to both modernize and cut costs.
SEE MORE The 15 Best Growth Stocks to Buy for 2022
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New Relic
Market value: $4.2 billion
Analysts' ratings: 3 Strong Buy, 3 Buy, 7 Hold, 0 Sell, 0 Strong Sell
New Relic (NEWR, $63.27) develops software that mines substantial amounts of data to find real-time insights. The technology allows for observability, which detects errors in information technology infrastructures and fixes them. The result: Customers get better performance out of transformational projects.
The company's business model is based on data growth of just about every kind. Examples include Pixie data (for telemetry information), logs from cloud providers and Prometheus data (events and alerts). "This data set, which includes all of the data we ingest, not just the data we charge for, is growing at around 50% year over year," New Relic says.
New Relic's acquisition of CodeStream, announced in October 2021, should also be a driver for growth. CodeStream is a sophisticated developer platform that makes it easier to discuss and review code. The system makes it possible to debug telemetry data, which helps developers make better apps.
While the revenues have come under pressure, that's to be expected as New Relic has focused more on the consumption-based model, though that transition is nearing completion.
"New Relic's shift to a Consumption-based model is largely complete with more than 80% of the business migrated by the end of 3QFY22," says Needham, which rates the stock at Buy. "The remaining ~20% is expected to migrate as renewals for multi-year Subscription contracts come due."
Analysts are projecting annual revenue growth in the high teens this year and next, and while NEWR is expected to more than double its adjusted net loss in 2022, it's expected to produce a small profit by 2023. Raymond James, which rates this big data stock at Strong Buy, believes both growth and profitability will pick up over the next few quarters.
SEE MORE Buy the Dip in EV Stocks? Here Are 7 to Consider
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Splunk
Market value: $19.6 billion
Analysts' ratings: 15 Strong Buy, 9 Buy, 15 Hold, 0 Sell, 0 Strong Sell
Splunk (SPLK, $122.02), which was founded roughly 20 years ago, is a pioneer in analyzing machine-generated data. Splunk's customers have gained valuable insights as a result, whether that's through monitoring the health of IT networks or detecting cybersecurity threats.
This big data stock is enjoying a productive 2022 so far, up about 5% in a down market. That's a refreshing change of pace following the stock's steep decline in late November 2021, when CEO Doug Merritt unexpectedly resigned – one in a number of high-level departures across the year.
But there are plenty of reasons to be bullish on the firm.
Splunk received a vote of confidence last summer, when Silver Lake Partners – a top tech private equity firm whose deals include Airbnb (ABNB), Dell Technologies (DELL) and UiPath (PATH) – invested $1 billion in the company.
Also, Splunk's business transition to the cloud is flashing signs of paying off. During the most recent quarter, cloud annual recurring revenue (ARR) spiked by 75% year-over-year to $1.1 billion. The company boasted 270 customers with ARR greater than $1 million, which was nearly double the year-ago number.
The Wall Street Journal reported in February that Cisco Systems (CSCO) expressed interested in acquiring Splunk for $20 billion, but as of right now, it appears a deal will not happen. But it's still an indication that larger tech companies are looking to big data stocks as a source of growth.
If SPLK's stock price remains depressed – it's 45% off its September 2020 high and trading for around 7 times sales – other suitors might emerge. Indeed, analyst outfit Jefferies named SPLK as one of 20 small- and mid-cap names to buy for GARP (growth at a reasonable price).
SEE MORE 9 Great Growth ETFs for 2022 and Beyond
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Datadog
Market value: $38.0 billion
Analysts' ratings: 11 Strong Buy, 8 Buy, 4 Hold, 1 Sell, 0 Strong Sell
Datadog (DDOG, $120.78) is one of the top players in the big data world.
Datadog develops software to help with monitoring and security for cloud applications. It combines various must-have applications, such as for app performance, log management and real-time observability. About 33% of the customers use four or more products, up from 22% a year ago.
It also continues to come up with new offerings, such as the Sensitive Data Scanner, which helps to discover, classify and protect sensitive corporate information (a major pain point).
DDOG boasts simply staggering growth rates – fourth-quarter revenues shot up by 84% to $326.2 million, an acceleration of the full-year rate of 70%. Better still: The company is generating profits. Datadog reported 2 cents of generally accepted accounting principles (GAAP) earnings per share in Q4, up from a 5-cent loss in the year-ago period. Operating cash flow (OCF) was $115.8 million, with free cash flow (FCF, the cash remaining after a company has paid its expenses, interest on debt, taxes and long-term investments to grow its business) at $106.7 million.
"We reiterate our Outperform rating on DDOG following very strong [fourth-quarter] results that should refute concerns over the state of the observability market following deceleration at competitors," says Raymond James analyst Adam Tindle, who rates the stock at Outperform (equivalent of Buy).
We'll note that Datadog is not cheap, trading at a plump 36 times sales. But a wide swath of Wall Street's analyst community is very bullish on DDOG shares regardless of that premium.
SEE MORE 7 Best Biotech Stocks to Build Your Portfolio
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Elastic
Market value: $7.1 billion
Analysts' ratings: 9 Strong Buy, 4 Buy, 5 Hold, 0 Sell, 0 Strong Sell
One of the biggest challenges with big data is that it is usually scattered all across an organization's various divisions. That can make it more difficult to usefully analyze said data.
Dutch firm Elastic (ESTC, $76.14) has seized on this opportunity by developing a sophisticated search engine for the enterprise. This engine integrates with myriad systems, allowing it to provide insights for an entire organization. It also has built a powerful self-serve model for customer adoption that has helped accelerate growth.
The latest quarter highlighted the benefits of Elastic's strategy. Elastic Cloud revenues of $80.4 million were up 79% year-over-year. The company said its net expansion rate was just below 130%, slightly above the prior quarter. And total customer count was over 17,900, compared to more than 17,000 in the prior quarter and 13,800 in the year-ago period.
There's also plenty of runway for long-term growth. The company's latest investor presentation says the total addressable market for its software tools is about $78 billion. William Blair's Kamil Mielczarek (Outperform) has a much more modest TAM estimate of $44 billion, but even then, that implies less than 2% penetration for Elastic.
"A large portion of this TAM is still greenfield, where the customer's existing observability solution is legacy, internally built, or nonexistent," Mielczarek says. "The greenfield opportunity, combined with an expected TAM growth rate of at least midteens, leaves Elastic significant opportunity to continue to grow before it will be meaningfully affected by competitive pressures."
Mielczarek is just one of 13 analysts in a crowded bull camp for ESTC, which is top-rated among the five big data stocks listed here.
SEE MORE Now You Can Own Bitcoin in 401(k)s. Should You?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SEE MORE 9 Great Growth ETFs for 2022 and Beyond Getty Images Datadog Market value: $38.0 billion Analysts' ratings: 11 Strong Buy, 8 Buy, 4 Hold, 1 Sell, 0 Strong Sell Datadog (DDOG, $120.78) is one of the top players in the big data world. DDOG boasts simply staggering growth rates – fourth-quarter revenues shot up by 84% to $326.2 million, an acceleration of the full-year rate of 70%. "We reiterate our Outperform rating on DDOG following very strong [fourth-quarter] results that should refute concerns over the state of the observability market following deceleration at competitors," says Raymond James analyst Adam Tindle, who rates the stock at Outperform (equivalent of Buy).
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SEE MORE 9 Great Growth ETFs for 2022 and Beyond Getty Images Datadog Market value: $38.0 billion Analysts' ratings: 11 Strong Buy, 8 Buy, 4 Hold, 1 Sell, 0 Strong Sell Datadog (DDOG, $120.78) is one of the top players in the big data world. DDOG boasts simply staggering growth rates – fourth-quarter revenues shot up by 84% to $326.2 million, an acceleration of the full-year rate of 70%. "We reiterate our Outperform rating on DDOG following very strong [fourth-quarter] results that should refute concerns over the state of the observability market following deceleration at competitors," says Raymond James analyst Adam Tindle, who rates the stock at Outperform (equivalent of Buy).
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SEE MORE 9 Great Growth ETFs for 2022 and Beyond Getty Images Datadog Market value: $38.0 billion Analysts' ratings: 11 Strong Buy, 8 Buy, 4 Hold, 1 Sell, 0 Strong Sell Datadog (DDOG, $120.78) is one of the top players in the big data world. DDOG boasts simply staggering growth rates – fourth-quarter revenues shot up by 84% to $326.2 million, an acceleration of the full-year rate of 70%. "We reiterate our Outperform rating on DDOG following very strong [fourth-quarter] results that should refute concerns over the state of the observability market following deceleration at competitors," says Raymond James analyst Adam Tindle, who rates the stock at Outperform (equivalent of Buy).
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SEE MORE 9 Great Growth ETFs for 2022 and Beyond Getty Images Datadog Market value: $38.0 billion Analysts' ratings: 11 Strong Buy, 8 Buy, 4 Hold, 1 Sell, 0 Strong Sell Datadog (DDOG, $120.78) is one of the top players in the big data world. DDOG boasts simply staggering growth rates – fourth-quarter revenues shot up by 84% to $326.2 million, an acceleration of the full-year rate of 70%. "We reiterate our Outperform rating on DDOG following very strong [fourth-quarter] results that should refute concerns over the state of the observability market following deceleration at competitors," says Raymond James analyst Adam Tindle, who rates the stock at Outperform (equivalent of Buy).
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5f2ab622-a74a-40df-97d1-28b7ff0866fd
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718668.0
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2022-05-02 00:00:00 UTC
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Datadog (DDOG) to Post Q1 Earnings: What's in the Offing?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-to-post-q1-earnings%3A-whats-in-the-offing
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nan
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nan
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Datadog DDOG is slated to release first-quarter 2022 results on May 5.
For the first quarter, the company expects revenues between $334 million and $339 million. Non-GAAP earnings are expected to be 11-12 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $337.30 million, suggesting an improvement of 69.88% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 11 cents per share, unchanged in the past 30 days and indicating growth of 83.33% from the year-ago quarter’s levels.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 124.62%.
Factors to Note
Datadog’s first-quarter performance is expected to have benefited from cloud migration and digital transformation.
Solid adoption of newer products, including Real User Monitoring, Synthetic Monitoring and Application Performance Monitoring, is anticipated to have aided customer wins in the to-be-reported quarter.
Contributions from a strong cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, are expected to remain a key growth driver.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
In the last reported quarter, this Zacks Rank #3 (Hold) company witnessed accelerated year-over-year growth in Infrastructure Monitoring ARR. The trend is likely to have continued in the to-be-reported quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company had announced its integration with Confluent CFLT in November 2021, which is expected to have contributed to the hyper-growth in Infrastructure ARR in the to-be reported quarter.
With the integration in place, users running Confluent Cloud at any scale will be able to use Datadog to monitor their Confluent Cloud resources alongside the rest of their technology stack.
Datadog’s expanding portfolio of integrated solutions has been acting as a major catalyst in expanding its customer base. The company ended fourth-quarter 2021 with 2,010 customers with ARR of more than $100K, up 63% year over year. The firm’s dollar-based net retention rate was more than 130% in the last reported quarter, driven by increased usage and adoption of existing and new products. This momentum is likely to have continued in the to-be-reported quarter.
Moreover, continued investments and innovation with Watchdog and strengthening serverless capabilities are noteworthy. Datadog’s growing international presence is likely to have benefited its performance during the to-be-reported quarter.
Increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space are expected to have weighed on margins in the first quarter.
Key Q1 Highlights
In January, Datadog announced that it has entered into a global partnership with Amazon’s AMZN Amazon Web Services (AWS). Per the collaboration, Datadog and Amazon’s AWS will work together to develop and deliver tighter product alignment in the upcoming years.
Datadog also received Federal Risk And Authorization Management Program (FedRAMP) Agency Authorization at moderate impact level, via the sponsorship from the Department of Veteran Affairs.
As a result, Datadog can now sell to US federal government agencies as well as the other public sector customers who use FedRAMP as an indicator of compliance and security.
In February, Datadog announced the acquisition of CoScreen, the collaboration partner for technical terms. The acquisition is anticipated to bring in new capabilities to the Datadog platform, thus enabling engineers to share their screens and work together during incident and security response, pair programming, prototyping, debugging and other activities in an integrated, joint workspace.
In March, Datadog was chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework.
Per the Datadog-Microsoft partnership, Datadog will be integrating its monitoring and security capabilities with Azure’s full suite of services, thus helping organizations accelerate their cloud adoption process.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
Confluent, Inc. (CFLT): 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 slated to release first-quarter 2022 results on May 5. Datadog, Inc. (DDOG): Free Stock Analysis Report Increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space are expected to have weighed on margins in the first quarter.
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Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog DDOG is slated to release first-quarter 2022 results on May 5. Contributions from a strong cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, are expected to remain a key growth driver.
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Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog DDOG is slated to release first-quarter 2022 results on May 5. Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote In the last reported quarter, this Zacks Rank #3 (Hold) company witnessed accelerated year-over-year growth in Infrastructure Monitoring ARR.
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Datadog DDOG is slated to release first-quarter 2022 results on May 5. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote In the last reported quarter, this Zacks Rank #3 (Hold) company witnessed accelerated year-over-year growth in Infrastructure Monitoring ARR.
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39f50da4-6de3-4b3f-b1b4-0245bebd51a3
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718669.0
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2022-05-02 00:00:00 UTC
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Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?
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DDOG
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https://www.nasdaq.com/articles/should-jpmorgan-betabuilders-u.s.-mid-cap-equity-etf-bbmc-be-on-your-investing-radar-1
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nan
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nan
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The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) was launched on 04/14/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $1.44 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.07%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.09%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB).
The top 10 holdings account for about 7.4% of total assets under management.
Performance and Risk
BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.
The ETF has lost about -15.23% so far this year and is down about -12.78% in the last one year (as of 05/02/2022). In the past 52-week period, it has traded between $77.99 and $97.36.
The ETF has a beta of 0.99 and standard deviation of 22.19% for the trailing three-year period. With about 595 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BBMC is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $50.26 billion in assets, iShares Core S&P MidCap ETF has $60.81 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC): ETF Research Reports
Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
iShares Core S&P MidCap ETF (IJH): ETF Research Reports
Vanguard MidCap ETF (VO): ETF Research Reports
MongoDB, Inc. (MDB): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report It has amassed assets over $1.44 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF (BBMC): ETF Research Reports
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB). Datadog, Inc. (DDOG): Free Stock Analysis Report Mid Cap Equity ETF (BBMC) was launched on 04/14/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
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d8196cfa-a017-454e-9411-9934cc872025
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718670.0
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2022-04-29 00:00:00 UTC
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Buy These 3 Growth Tech Stocks at Big Bargains?
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DDOG
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https://www.nasdaq.com/articles/buy-these-3-growth-tech-stocks-at-big-bargains
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nan
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nan
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Today’s episode of Full Court Finance at Zacks dives into the market after the Nasdaq fell into bear market territory earlier this week. The recent selling and larger 2022 downturn sent many growth stocks to levels that might start making them attractive to long-term investors, even if near-term volatility remains. The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP), Block (SQ), and Datadog (DDOG).
Buyers finally showed up Thursday after stocks had been hammered to start the final week of April, with the Nasdaq finishing 3% higher, followed by the S&P 500’s 2.5% climb, and the Dow’s 1.9%.
Tuesday’s huge fall sent the Nasdaq to new 52-week lows and back into bear market levels, while the S&P 500 slipped to roughly 15% off its highs. Wall Street appeared willing to start scooping up stocks again at these rather intriguing levels even though the same conditions that pushed the market lower and lower in 2022 remain.
Rising interest rates, soaring inflation, and log-jammed supply chains are dragging companies and the economy down. The continued major lockdowns of huge Chinese cities seems set to make matters worse. And fresh data out Thursday showed the U.S. economy shrank by 1.4% in the first quarter, for its first decline since the initial covid lockdowns.
Luckily, the headline number was driven by a growing U.S. trade deficit. In fact, U.S. consumer spending, which drives the economy, climbed in the first quarter. The coming months could remain uncertain, but the outlook for S&P 500 companies in 2022, 2023, and beyond appears strong.
Therefore, investors with longer-term horizons might want to start considering buying some tech stocks at what could look like bargain prices down the road.
The first stock up is Shopify SHOP ahead of its Q1 financial release on Thursday, May 5. Shopify helps businesses with all things e-commerce and it’s expanding its offering to help its clients become more robust retailers. Shopify stock is up nearly 500% in the last five years, but it’s trading below where it was prior to the initial covid selloff in early 2020.
The next name up is Block (SQ), formally known as Square. Block will report its Q1 results on May 5 and it also trades at a huge discount to its records. SQ is one of the quintessential fintech firms, offing payment software, POS tech, peer-to-peer payment apps, and much more. Block is setting itself up to compete alongside major banks, credit card companies, and other financial services firms for years to come.
The last name we discuss, Datadog DDOG, is also set to release its quarterly results on May 5. Datadog is a cloud software firm that enables its clients to monitor the performance of databases, servers, apps, networks, and more. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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Shopify Inc. (SHOP): Free Stock Analysis Report
Block, Inc. (SQ): 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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The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP), Block (SQ), and Datadog (DDOG). The last name we discuss, Datadog DDOG, is also set to release its quarterly results on May 5. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP), Block (SQ), and Datadog (DDOG). The last name we discuss, Datadog DDOG, is also set to release its quarterly results on May 5. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP), Block (SQ), and Datadog (DDOG). The last name we discuss, Datadog DDOG, is also set to release its quarterly results on May 5. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP), Block (SQ), and Datadog (DDOG). The last name we discuss, Datadog DDOG, is also set to release its quarterly results on May 5. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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3a633460-413a-45fd-aa0b-ed0d2db99beb
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718671.0
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2022-04-28 00:00:00 UTC
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Why Snowflake, Datadog, and HubSpot Soared Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-datadog-and-hubspot-soared-today
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nan
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nan
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What happened
Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively.
There wasn't any company-specific news about any of them Thursday, although there had been earlier in the week. More likely, traders buying these enterprise software all-stars were responding to two things. First, the Commerce Department released first-quarter U.S. gross domestic product data showing a contraction of 1.4%. That was disappointing, but it may lead the Federal Reserve to temper its plans for interest rate hikes. Second, other large-cap tech companies have been reporting earnings this week. The preliminary read-through from those reports is that enterprise spending still remains strong, even if there are patches of consumer softness. That provides investors with good reason to expect positive news when these companies report next month.
Combine these factors with previously beaten-down share prices, and you have the recipe for Thursday's big gains.
So what
On Thursday, the Commerce Department released its initial estimate of first-quarter GDP, which it said contracted 1.4% on an annualized basis. That was worse than the 1% contraction predicted by analysts. Inflation, the war in Ukraine, and ongoing supply chain problems all conspired to drag on the economy, and consumer spending grew less than anticipated.
This may be another case of "bad news is good news" for high-growth tech stocks that trade at high multiples such as Snowflake, Datadog, and HubSpot. That's because weaker economic data could mean the Federal Reserve won't have to raise rates as far or as quickly. Higher interest rates stand to hurt growth stocks disproportionately as they depress the current intrinsic value of future earnings.
Additionally, while the overall economy may be sagging, it appears growth in the cloud computing industry isn't skipping a beat. Both Microsoft and Alphabet reported earlier this week, and while Alphabet missed estimates, that was entirely due to YouTube advertising. Both companies showed better-than-expected cloud growth. That certainly bodes well for both Snowflake, which operates the world's premier cloud data lake service, and Datadog, which offers a best-in-class cloud-based application observability suite.
Datadog was actually named a preferred partner for Microsoft's Azure cloud service in late March, so the torrid 46% growth rate Azure achieved was likely music to the ears of Datadog shareholders.
Meanwhile, Snowflake received a positive initiation from Wolfe Research on Monday. Wolfe likes Snowflake's competitive positioning, management team, and growth outlook. Its analysts think these positive factors outweigh the valuation concerns, and they predict the stock could rise by 50% from Monday's beaten-down levels over the next 12 months.
HubSpot, by contrast, received a negative note on Tuesday, with UBS analysts initiating the company at neutral and a $410 price target, based on worries that the company may have a hard time adding incremental customers. HubSpot experienced huge adoption earlier in the pandemic as small and medium-sized enterprises flocked to its leading inbound marketing platform to reach their customers.
Yet some better-than-feared numbers out of Meta Platforms and other social media stocks this week could perhaps indicate that the market's fears over the health of U.S. small businesses were overdone. That could be why HubSpot bounced back even harder Thursday.
Image source: Getty Images.
Now what
Is the tech wreck over? That's what investors have to ask themselves. Since there is still a lot of uncertainty about the path of interest rates and inflation in the economy, it will be really hard to time the bottom of the sell-off in high-growth tech names. Likely, these stocks will remain volatile going into next week's Fed meeting. In addition, HubSpot and Datadog report their first-quarter numbers next week.
Despite Thursday's gains, both Snowflake and HubSpot remain more than 50% off their highs, and Datadog is down by about 35% from its peak. Could they fall further? Sure, but each is a high-quality growth company led by an excellent management team. Interested investors with long-term orientations may therefore wish to add to their positions. However, each of these stocks is still expensive based on traditional valuation metrics, so they may not be appropriate for older investors who are closer to retirement, despite their recent price drops.
10 stocks we like better than Snowflake Inc.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Billy Duberstein has positions in Alphabet (C shares), Meta Platforms, Inc., and Microsoft and has the following options: short January 2023 $100 puts on Snowflake Inc. and short June 2022 $145 puts on Microsoft. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Datadog, HubSpot, Meta Platforms, Inc., Microsoft, 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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What happened Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively. Inflation, the war in Ukraine, and ongoing supply chain problems all conspired to drag on the economy, and consumer spending grew less than anticipated. That certainly bodes well for both Snowflake, which operates the world's premier cloud data lake service, and Datadog, which offers a best-in-class cloud-based application observability suite.
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What happened Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively. So what On Thursday, the Commerce Department released its initial estimate of first-quarter GDP, which it said contracted 1.4% on an annualized basis. This may be another case of "bad news is good news" for high-growth tech stocks that trade at high multiples such as Snowflake, Datadog, and HubSpot.
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What happened Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively. This may be another case of "bad news is good news" for high-growth tech stocks that trade at high multiples such as Snowflake, Datadog, and HubSpot. See the 10 stocks *Stock Advisor returns as of April 7, 2022 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.
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What happened Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively. Despite Thursday's gains, both Snowflake and HubSpot remain more than 50% off their highs, and Datadog is down by about 35% from its peak. 10 stocks we like better than Snowflake Inc.
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633451ab-2951-4488-ba61-aa2a51ae8ede
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718672.0
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2022-04-27 00:00:00 UTC
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Best Cloud Computing Stocks To Buy Right Now? 3 To Know
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DDOG
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https://www.nasdaq.com/articles/best-cloud-computing-stocks-to-buy-right-now-3-to-know
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nan
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nan
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3 Trending Cloud Computing Stocks To Watch In May 2022
Cloud computing stocks have seen their ups and downs over the past few years. For obvious reasons, many cloud computing companies benefited greatly from the coronavirus pandemic as it prompted an increasing cloud adoption among consumers and businesses. However, fears of pandemic-driven growth coming to an end and rising interest rates have led to bearish sentiments around the industry. Having said that, many continue to see cloud migration as a secular trend.
Yesterday, we saw one of the biggest cloud computing companies report their first-quarter earnings. Google (NASDAQ: GOOGL) came in short on multiple metrics but its Cloud segment did not disappoint. The company’s revenue came in at $68.01 billion, slightly short of the $68.11 billion expected by Refinitiv. Out of which, Google Cloud revenue contributed $5.82 billion, up 44% year-over-year and exceeding estimates of $5.76 billion, according to StreetAccount.
Not to mention, companies are also working around the clock to improve their cloud offerings. For instance, Adobe (NASDAQ: ADBE) recently added Frame.io’s industry-leading video collaboration platform to its millions of Creative Cloud customers. With this, video editors and key project stakeholders could easily collaborate in the cloud. Considering all these, here are some of the top cloud computing stocks in the stock market today.
Cloud Computing Stocks To Watch In May 2022
Microsoft Corporation (NASDAQ: MSFT)
Datadog Inc (NASDAQ: DDOG)
Salesforce Inc (NYSE: CRM)
Microsoft
In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. The company develops and supports a range of software products, services, and other solutions. Its Windows Azure is one of the top public cloud computing platforms available today. Consumers can access a range of cloud services that include basic computing, storage, analytics, and networking. Hence, providing users with the flexibility to use their preferred tools to meet their goals.
Now, investors are turning their attention to MSFT stock yet again. This is largely due to its encouraging fiscal third-quarter earnings report released yesterday. Its revenue climbed to $49.4 billion, an increase of 18% year-over-year and exceeding analysts’ expectations of $49.0 billion. Out of which, the company’s Intelligent Cloud business revenue soared by 26% year-over-year to $19.1 billion. Meanwhile, its adjusted earnings per share were $2.22, versus estimates of $2.19. Overall, it appears that Microsoft is firing on all cylinders as cloud adoption increases by the day.
Aside from that, the company also recently collaborated with Mastercard (NYSE: MA) to launch an enhanced identity solution. First-party fraud is a global issue that is having an impact of approximately $50 billion. More than ever before, having a frictionless shopping experience is paramount for retailers and customers alike. Therefore, the new solution aims to improve the online shopping experience while tackling digital fraud. Mastercard will address these needs by enhancing its Digital Transaction Insights solution with next-generation authentication and real-time decision-making capabilities. And, Microsoft will be the first partner to share its insights and integrate with the new solution across several lines of business. All things considered, would you bank on the future of MSFT stock?
Source: TD Ameritrade TOS
Datadog
Following that, we will be looking at Datadog. Essentially, the company provides a monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud age. Organizations of all sizes and across a range of industries utilize its platform for digital transformation and cloud migration. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. Over the past year, the stock has risen more than 25%.
In fact, Datadog revealed last month that it is now a Microsoft partner within the Azure Cloud Adoption Framework. The company now integrates with the full suite of Azure services. Thus, Azure customers can now leverage Datadog’s monitoring and security capabilities to accelerate their cloud adoption with confidence. Overall, the partnership will provide companies with a clearer roadmap for cloud migration.
On top of that, Datadog also announced two new capabilities for Watchdog, its AI engine, earlier this month. Firstly, the Log Anomaly Detection will automatically understand and baseline normal patterns in logs. It will also proactively discover abnormalities such as new text patterns, and meaningful changes in data volumes of existing patterns. Meanwhile, the Root Cause Analysis works with the company’s APM products to automatically identify causal relationships between symptoms of an issue across an organization’s services. All in all, these are great additions to Watchdog as the complexity of cloud-based environments continues to be a challenge. With that said, would you be adding DDOG stock to your watchlist?
Source: TD Ameritrade TOS
[Read More] Stock Market Today: Dow Jones, S&P 500 Bounce Back; Enphase Reports Solid Earnings
Salesforce
When mentioning a list of the top cloud stocks today, it is difficult to leave out the likes of Salesforce. In detail, the company’s Customer 360 platform connects customer data across systems, applications, and devices to help companies conduct commerce from anywhere. Besides that, its software is also used for application development, analytics, and marketing automation among others. With more than 150,000 companies utilizing its software to grow their businesses, Salesforce is one of the best at what it does.
Despite the stock’s struggles since the start of the year, it is not stopping Salesforce from advancing its products and services. The company started the month of April by announcing that Bose will deploy its Salesforce Customer 360. This will help Bose to expand its robust direct-to-consumer business and provide more personal and tailored experiences for its customers. Safe to say, Salesforce will take Bose’s digital footprint to a whole new level.
Additionally, another partnership was also recently forged between Salesforce and CodePath. Under which, CodePath will help to host a 10-week paid pre-internship program to prepare rising college juniors for careers in technology. The program will offer students early access to Salesforce internships and real-world experience that keeps them dedicated to completing their degree. At a time when tech talent is in high demand, having early access to these talents is a luxury that most companies would appreciate. Given these exciting developments, would you still consider CRM stock as a top cloud computing stock to watch?
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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Cloud Computing Stocks To Watch In May 2022 Microsoft Corporation (NASDAQ: MSFT) Datadog Inc (NASDAQ: DDOG) Salesforce Inc (NYSE: CRM) Microsoft In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. With that said, would you be adding DDOG stock to your watchlist?
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Cloud Computing Stocks To Watch In May 2022 Microsoft Corporation (NASDAQ: MSFT) Datadog Inc (NASDAQ: DDOG) Salesforce Inc (NYSE: CRM) Microsoft In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. With that said, would you be adding DDOG stock to your watchlist?
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Cloud Computing Stocks To Watch In May 2022 Microsoft Corporation (NASDAQ: MSFT) Datadog Inc (NASDAQ: DDOG) Salesforce Inc (NYSE: CRM) Microsoft In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. With that said, would you be adding DDOG stock to your watchlist?
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Cloud Computing Stocks To Watch In May 2022 Microsoft Corporation (NASDAQ: MSFT) Datadog Inc (NASDAQ: DDOG) Salesforce Inc (NYSE: CRM) Microsoft In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. With that said, would you be adding DDOG stock to your watchlist?
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96d71e41-6b62-498b-9f54-4f940088f1e0
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718673.0
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2022-04-27 00:00:00 UTC
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Should iShares Morningstar MidCap Growth ETF (IMCG) Be on Your Investing Radar?
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DDOG
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https://www.nasdaq.com/articles/should-ishares-morningstar-midcap-growth-etf-imcg-be-on-your-investing-radar-1
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nan
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nan
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Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the iShares Morningstar MidCap Growth ETF (IMCG) is a passively managed exchange traded fund launched on 06/28/2004.
The fund is sponsored by Blackrock. It has amassed assets over $1.11 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. These types of companies, then, have a good balance of stability and growth potential.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.06%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.67%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.70% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD).
The top 10 holdings account for about 8.61% of total assets under management.
Performance and Risk
IMCG seeks to match the performance of the MORNINGSTAR US MID CAP BROAD GROWTH INDX before fees and expenses. The Morningstar US Mid Cap Broad Growth Index comprises of mid-capitalization U.S. equities that exhibit growth characteristics.
The ETF has lost about -19.05% so far this year and is down about -13.05% in the last one year (as of 04/27/2022). In the past 52-week period, it has traded between $58.63 and $76.33.
The ETF has a beta of 1.07 and standard deviation of 25.60% for the trailing three-year period. With about 372 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Morningstar MidCap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IMCG is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard MidCap Growth ETF (VOT) and the iShares Russell MidCap Growth ETF (IWP) track a similar index. While Vanguard MidCap Growth ETF has $10.20 billion in assets, iShares Russell MidCap Growth ETF has $12.25 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Morningstar MidCap Growth ETF (IMCG): ETF Research Reports
ResMed Inc. (RMD): Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
iShares Russell MidCap Growth ETF (IWP): ETF Research Reports
Vanguard MidCap Growth ETF (VOT): ETF Research Reports
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report It has amassed assets over $1.11 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the iShares Morningstar MidCap Growth ETF (IMCG) is a passively managed exchange traded fund launched on 06/28/2004.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the iShares Morningstar MidCap Growth ETF (IMCG) is a passively managed exchange traded fund launched on 06/28/2004.
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Looking at individual holdings, Hilton Worldwide Holdings Inc (HLT) accounts for about 1.05% of total assets, followed by Datadog Inc Class A (DDOG) and Resmed Inc (RMD). Datadog, Inc. (DDOG): Free Stock Analysis Report Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the iShares Morningstar MidCap Growth ETF (IMCG) is a passively managed exchange traded fund launched on 06/28/2004.
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17716674-03b5-4a44-8200-5280ffaee24b
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718674.0
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2022-04-26 00:00:00 UTC
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Nasdaq 100 Movers: TSLA, CDNS
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tsla-cdns
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nan
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nan
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In early trading on Tuesday, shares of Cadence Design Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. Year to date, Cadence Design Systems has lost about 17.1% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 5.8%. Tesla is lower by about 11.0% looking at the year to date performance.
Two other components making moves today are Zoom Video Communications, trading down 5.3%, and Datadog, trading up 1.2% on the day.
VIDEO: Nasdaq 100 Movers: TSLA, CDNS
The views and 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 Cadence Design Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 5.8%. VIDEO: Nasdaq 100 Movers: TSLA, CDNS The views and 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 Cadence Design Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. Year to date, Cadence Design Systems has lost about 17.1% of its value. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 5.8%.
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In early trading on Tuesday, shares of Cadence Design Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 5.8%. Two other components making moves today are Zoom Video Communications, trading down 5.3%, and Datadog, trading up 1.2% on the day.
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In early trading on Tuesday, shares of Cadence Design Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 5.8%. VIDEO: Nasdaq 100 Movers: TSLA, CDNS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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e6a2dd0d-f4f1-487c-a2c4-98dd66e3b31b
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718675.0
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2022-04-25 00:00:00 UTC
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Nasdaq 100 Movers: ILMN, MTCH
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DDOG
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ilmn-mtch
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nan
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nan
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In early trading on Monday, shares of Match Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. Year to date, Match Group has lost about 39.8% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 2.9%. Illumina is lower by about 17.6% looking at the year to date performance.
Two other components making moves today are ASML Holding, trading down 2.8%, and Datadog, trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: ILMN, MTCH
The views and 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 Match Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 2.9%. VIDEO: Nasdaq 100 Movers: ILMN, MTCH The views and 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 Match Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. Year to date, Match Group has lost about 39.8% of its value. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 2.9%.
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In early trading on Monday, shares of Match Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 2.9%. Two other components making moves today are ASML Holding, trading down 2.8%, and Datadog, trading up 2.6% on the day.
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In early trading on Monday, shares of Match Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 2.9%. VIDEO: Nasdaq 100 Movers: ILMN, MTCH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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0ad638ea-ee9b-4efc-8ed4-02edf88522f5
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718676.0
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2022-04-25 00:00:00 UTC
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2 Growth Stocks With Up to 187% Upside, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/2-growth-stocks-with-up-to-187-upside-according-to-wall-street
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nan
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nan
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Growth-heavy portfolios have taken a hit recently. Rampant inflation and rising interest rates have caused many investors to rethink their positions in richly valued growth stocks. But in certain cases, some of Wall Street's professionals believe the selling has gone too far.
JMP Securities analyst Devin Ryan has a price target of $394 on Coinbase Global (NASDAQ: COIN), implying 187% upside from its current share price. Similarly, Oppenheimer analyst Ittai Kidron has a price target of $150 per share on Elastic (NYSE: ESTC), implying 81% upside. Given the conviction shown by both analysts, let's take a closer look at these growth stocks.
Image source: Getty Images.
1. Coinbase Global
Coinbase is a gateway to the cryptoeconomy. The company offers a range of products and services to retail investors and financial institutions, helping them trade, spend, store, and stake crypto assets. Coinbase also provides infrastructure services to developers and blockchain analytics solutions to law enforcement and other clients.
As the largest U.S. cryptocurrency exchange, Coinbase benefits from significant scale. In fact, as of Dec. 31, 2021, its platform held a market-leading 11.5% of all crypto assets, signifying its brand authority. Perhaps more importantly, Coinbase has never lost customer funds due to a security breach, which has helped it earn the trust of traders. That competitive edge led to an impressive financial performance last year. Monthly transacting users jumped 307% to 11.4 million, revenue soared 514% to $7.8 billion, and profits skyrocketed 936% to $14.50 per diluted share.
Presently, the collective value of all crypto assets sits at $2 trillion. That's an impressive sum, especially because the crypto market didn't even exist 15 years ago. But it's still a fraction of the $120 trillion global equities market. If cryptocurrency is the disruptive force that many believe it to be, the market could soar in the long run, and Coinbase would be a big beneficiary.
Currently, the stock trades at 10.6 times earnings -- far cheaper than the broader S&P 500's valuation of 24 times earnings. With that in mind, I wouldn't be shocked to see the price hit $394 per share in the next 12 months, especially if the company continues to deliver monster financial results. But for crypto bulls, Coinbase is best viewed as a long-term investment.
2. Elastic
Elastic is a search company. Its platform, known as the Elastic Stack, is a suite of software that makes it possible to ingest, analyze, and visualize data from any source. Developers can use those tools to build custom solutions, but Elastic also provides three pre-built applications: Enterprise Search, Observability, and Security.
Enterprise Search is an internal search engine that allows employees to sift through corporate resources, while also enabling developers to embed search functionality in websites and mobile apps. The Observability and Security applications extend the utility of the Elastic Stack to infrastructure monitoring and cybersecurity, helping clients identify performance issues and prevent threats across their IT ecosystems.
Elastic's powerful analytics engine and freemium pricing model have generated strong demand. In fact, Elastic ranks as the most popular enterprise search engine by a wide margin, easily outpacing rivals like Splunk, according to DB-Engines. That has translated into strong financial results. Over the past year, Elastic grew its customer base 30% to 17,900, and the average customer spent nearly 30% more. In turn, revenue rose 41% to $801 million, and the company generated positive cash from operations of $7 million. As a caveat, cash from operations was down from $18 million in the prior year, due primarily to a widening net loss.
Going forward, Elastic undoubtedly faces tough competition from observability providers like Datadog and cybersecurity companies like CrowdStrike. But those are big industries. In fact, management puts its market opportunity at $78 billion, meaning there is plenty of room for multiple winners. Additionally, Elastic can lean on its leadership position in enterprise search to land and expand its relationship with customers.
From that perspective, long-term shareholders have reason to be optimistic, and with the stock trading at 9.5 times sales -- far cheaper than its three-year average of 17.5 time sales -- now looks like a good time to buy. That being said, a near-term price target of $150 may be a little too optimistic.
10 stocks we like better than Coinbase Global, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Coinbase Global, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of April 7, 2022
Trevor Jennewine owns CrowdStrike Holdings, Inc. The Motley Fool owns and recommends Coinbase Global, Inc., CrowdStrike Holdings, Inc., Datadog, Elastic, and Splunk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company offers a range of products and services to retail investors and financial institutions, helping them trade, spend, store, and stake crypto assets. The Observability and Security applications extend the utility of the Elastic Stack to infrastructure monitoring and cybersecurity, helping clients identify performance issues and prevent threats across their IT ecosystems. In fact, Elastic ranks as the most popular enterprise search engine by a wide margin, easily outpacing rivals like Splunk, according to DB-Engines.
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JMP Securities analyst Devin Ryan has a price target of $394 on Coinbase Global (NASDAQ: COIN), implying 187% upside from its current share price. In turn, revenue rose 41% to $801 million, and the company generated positive cash from operations of $7 million. The Motley Fool owns and recommends Coinbase Global, Inc., CrowdStrike Holdings, Inc., Datadog, Elastic, and Splunk.
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JMP Securities analyst Devin Ryan has a price target of $394 on Coinbase Global (NASDAQ: COIN), implying 187% upside from its current share price. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Coinbase Global, Inc. wasn't one of them! The Motley Fool owns and recommends Coinbase Global, Inc., CrowdStrike Holdings, Inc., Datadog, Elastic, and Splunk.
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Elastic Elastic is a search company. Developers can use those tools to build custom solutions, but Elastic also provides three pre-built applications: Enterprise Search, Observability, and Security. 10 stocks we like better than Coinbase Global, Inc.
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0746e525-713d-46a1-af3a-771e35775ca5
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718677.0
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2022-04-21 00:00:00 UTC
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These 2 Stocks Have Plenty of Room to Run
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DDOG
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https://www.nasdaq.com/articles/these-2-stocks-have-plenty-of-room-to-run
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nan
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nan
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Volatile stock markets can be great times to buy long-term winners. Many promising stocks are suddenly much more affordable following the growth-stock sell-off. These high-potential businesses aren't exactly cheap, but their valuation and fundamentals leave plenty of room for big returns.
C3.ai
Artificial intelligence has quickly gone from science fiction to commonplace among tech companies. Machine learning and automation are unlocking all sorts of efficiencies and capabilities in the business world. While digital transformation is driving evolution in every industry, not all businesses have the need or ability to hire a team to build AI technology in-house.
Image source: Getty Images.
That's where C3.ai (NYSE: AI) is emerging as a leader. Billionaire Thomas Seibel founded the company, and he brings tremendous experience to the table as an early executive at Oracle before successfully launching and exiting a CRM software business. Along with his talented team, Seibel aims to build an AI-as-a-service business that will lead the way in a lucrative new SaaS industry segment. C3.ai is staking its claim as the go-to solution for businesses that want AI software but can't afford to build it in house.
The company has quickly established a foothold in the energy industry, but its goals are much broader. In its most recent quarter, C3.ai reported having 218 customers -- up 82% year over year -- from 15 different industries, showing management's clear intention to expand into new verticals. That growth helped propel C3.ai's revenue 42% higher last quarter, exceeding analyst forecasts and prompting an increase to its full-year guidance.
It hasn't always been smooth sailing for C3.ai relative to investor expectations, but it's hard to argue the company's results have been mediocre. This is a growth machine with plenty of opportunity ahead of it.
But the stock is down 53% from its Dec. 2020 IPO price and nearly 75% from its all-time high. Investor skepticism is fair with that sort of steep decline, but the stock's price-to-sales ratio also dropped from a sky-high 80 to 8.4, creating an opportunity for long-term bargain hunters.
If C3.ai is able to maintain its competitive position as the AI industry grows, then there's tons of upside left here.
DataDog
DataDog (NASDAQ: DDOG) is a promising tech stock that combines elements of data analytics, artificial intelligence, and cybersecurity. Its product portfolio allows businesses to monitor and analyze their software, which leads to more efficient and secure operations. The ongoing digital transformation across the economy is making software the most important tool for businesses in every sector, which makes application monitoring services exceptionally valuable moving forward.
The company is capitalizing on that tailwind by delivering respected products and phenomenal growth. The company receives high marks from third parties such as Gartner, and its 130% net revenue retention rate shows how DataDog is retaining customers and expanding its relationships with them. That helped fuel the company's 84% revenue growth in the fourth quarter, its third consecutive quarter of accelerating growth. Management is guiding for 48% growth in 2022.
DataDog sees a number of new service areas it can build into its platform in the future, allowing the company to generate more revenue from existing customers while also expanding the number of customers it serves.
We're already seeing this in action as some of DataDog's larger customers are adding new products to their agreements as they become available. It now has more than 215 customers that generate at least $1 million in annual recurring revenue.
The stock is still expensive with a price-to-sales ratio of 40 and a forward price-to-earnings ratio around 255. It's fair to say this premium valuation reflects the tremendous opportunity Datadog has and how bullish investors are, but that also means much of its return potential is already baked into the current price. This also makes the stock more vulnerable to volatility in our current market. All that said, the leader in the application monitoring industry is likely to blow past its current $41 billion market cap in the long term, leaving plenty of room for the stock to grow.
10 stocks we like better than C3.ai, 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 C3.ai, 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 April 7, 2022
Ryan Downie has no position in any of the stocks mentioned. The Motley Fool owns and recommends C3.ai, 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 DataDog (NASDAQ: DDOG) is a promising tech stock that combines elements of data analytics, artificial intelligence, and cybersecurity. Billionaire Thomas Seibel founded the company, and he brings tremendous experience to the table as an early executive at Oracle before successfully launching and exiting a CRM software business. Investor skepticism is fair with that sort of steep decline, but the stock's price-to-sales ratio also dropped from a sky-high 80 to 8.4, creating an opportunity for long-term bargain hunters.
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DataDog DataDog (NASDAQ: DDOG) is a promising tech stock that combines elements of data analytics, artificial intelligence, and cybersecurity. It's fair to say this premium valuation reflects the tremendous opportunity Datadog has and how bullish investors are, but that also means much of its return potential is already baked into the current price. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Ryan Downie has no position in any of the stocks mentioned.
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DataDog DataDog (NASDAQ: DDOG) is a promising tech stock that combines elements of data analytics, artificial intelligence, and cybersecurity. DataDog sees a number of new service areas it can build into its platform in the future, allowing the company to generate more revenue from existing customers while also expanding the number of customers it serves. All that said, the leader in the application monitoring industry is likely to blow past its current $41 billion market cap in the long term, leaving plenty of room for the stock to grow.
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DataDog DataDog (NASDAQ: DDOG) is a promising tech stock that combines elements of data analytics, artificial intelligence, and cybersecurity. The company receives high marks from third parties such as Gartner, and its 130% net revenue retention rate shows how DataDog is retaining customers and expanding its relationships with them. That helped fuel the company's 84% revenue growth in the fourth quarter, its third consecutive quarter of accelerating growth.
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016bcbfa-2e9a-4c72-bc32-d1f56464a12d
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718678.0
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2022-04-19 00:00:00 UTC
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Why DocuSign, Datadog, and HubSpot Were Soaring Today
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DDOG
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https://www.nasdaq.com/articles/why-docusign-datadog-and-hubspot-were-soaring-today
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nan
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nan
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What happened
Shares of enterprise software companies DocuSign (NASDAQ: DOCU), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) were soaring today, up 6.3%, 5.6%, and 5.6%, respectively, as of 3:39 p.m. ET.
There wasn't much company-specific news today. Datadog was maintained at overweight by analysts at Barclays, although they lowered their price target from $210 to $190. But given the rise in not just these three software-as-a-service (SaaS) stocks but across the tech world more broadly, it was likely macroeconomic or marketwide factors that played into each stock's ascent.
Ironically, it was likely the dour outlook for global growth issued by the International Monetary Fund that spurred buying in beaten-down growth stocks today. Here's why the bad news for the global economy may have been good news for software stocks.
So what
DocuSign, Hubspot, and Datadog were all huge winners during the pandemic, as the need to work from home spurred rapid digitization of the enterprise, which is where all three of these companies succeed. DocuSign allows for documents to be signed securely in a remote digital format, HubSpot is a leader in digital "inbound" marketing for small and medium-sized businesses, and Datadog allows companies to monitor their software applications for both security and performance.
Each is also a high-growth stock that doesn't currently make profits, and generally trades at a high multiple of sales. So not only have these companies seen a deceleration in growth after the pandemic-era boom, but valuations are compressing thanks to rising interest rates. Higher interest rates are bad news for growth stocks, which have much of their earnings power well out into the future, since those future earnings are discounted by a greater amount in today's dollars. As you can see, each stock has had quite a rough go of it over the past six months:
DOCU 6 Month Price Returns (Daily) data by YCharts
But on Tuesday, the International Monetary Fund cut its global growth outlook for 2022 and 2023 to 3.6%, down 0.8% and 0.2% from its January estimates, respectively. The downgrade is largely due to food and energy crises spurred by Russia's invasion of Ukraine. IMF Managing Director Kristalina Georgieva said in the presentation: "What has Russia's invasion of Ukraine cost? A crisis on top of a crisis, with devastating human costs and a massive setback for the global economy."
Why might this bad news actually be good for technology stocks? Because lower growth may mean that the Federal Reserve and other central banks may not have to hike interest rates so aggressively this year. In other words, the crisis may do some of the central bank's job for it in terms of slowing down demand, which has outstripped supply since the world began emerging from the COVID-19 pandemic. In a clue this may be true, oil prices fell 5% today, although they are still over $100 per barrel.
Fewer interest rate hikes may mean lower rates going forward than what was already priced into the market. As you can see, high-growth tech stocks were already down significantly on their valuation reset, so any relief on the interest rate front caused them to bounce big today. In a lower-growth environment, companies with steady secular growth and recurring revenue tend to do well, as is the case with these three names.
Image source: Getty Images.
Now what
Despite today's positive movement, it's not a sure thing the U.S. Federal Reserve will slow rate hikes, since the U.S. economy is generally faring much better than the developing world and Europe. Interestingly, the 10-year Treasury bond yield, which many stock investors use as a baseline for their discount rates, actually continued rising today to 2.91%, up from about 1.6% to start the year.
So, I wouldn't necessarily break out the champagne and celebrate that interest rate expectations will come down. In March, the market rallied hard, only to fall back toward the end of the month. The current inflationary and rate-hiking environment is still very much ongoing, at least here in the U.S.
That being said, if inflation does show signs of peaking, these stocks could continue moving upward. That's because each has been beaten down pretty significantly, and the market is forward-looking. Some think the recent March inflation number of 8.5% could be the peak, although no one really knows for sure. Therefore, now may be a good time to study your favorite growth stocks for a potential purchase, as they could take off in a big way if inflation slows. Just be aware that the environment is highly uncertain, with big up and down days likely ahead in the near term.
10 stocks we like better than DocuSign
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 DocuSign wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 7, 2022
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Datadog, DocuSign, and HubSpot. The Motley Fool recommends Barclays and recommends the following options: long January 2024 $60 calls on DocuSign. 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 companies DocuSign (NASDAQ: DOCU), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) were soaring today, up 6.3%, 5.6%, and 5.6%, respectively, as of 3:39 p.m. So what DocuSign, Hubspot, and Datadog were all huge winners during the pandemic, as the need to work from home spurred rapid digitization of the enterprise, which is where all three of these companies succeed. In other words, the crisis may do some of the central bank's job for it in terms of slowing down demand, which has outstripped supply since the world began emerging from the COVID-19 pandemic.
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What happened Shares of enterprise software companies DocuSign (NASDAQ: DOCU), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) were soaring today, up 6.3%, 5.6%, and 5.6%, respectively, as of 3:39 p.m. Ironically, it was likely the dour outlook for global growth issued by the International Monetary Fund that spurred buying in beaten-down growth stocks today. As you can see, each stock has had quite a rough go of it over the past six months: DOCU 6 Month Price Returns (Daily) data by YCharts But on Tuesday, the International Monetary Fund cut its global growth outlook for 2022 and 2023 to 3.6%, down 0.8% and 0.2% from its January estimates, respectively.
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What happened Shares of enterprise software companies DocuSign (NASDAQ: DOCU), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) were soaring today, up 6.3%, 5.6%, and 5.6%, respectively, as of 3:39 p.m. Ironically, it was likely the dour outlook for global growth issued by the International Monetary Fund that spurred buying in beaten-down growth stocks today. Higher interest rates are bad news for growth stocks, which have much of their earnings power well out into the future, since those future earnings are discounted by a greater amount in today's dollars.
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What happened Shares of enterprise software companies DocuSign (NASDAQ: DOCU), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) were soaring today, up 6.3%, 5.6%, and 5.6%, respectively, as of 3:39 p.m. Fewer interest rate hikes may mean lower rates going forward than what was already priced into the market. The Motley Fool owns and recommends Datadog, DocuSign, and HubSpot.
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605f82c5-7384-4fda-a8b1-929572484e92
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718679.0
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2022-04-19 00:00:00 UTC
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Noteworthy Tuesday Option Activity: SRPT, MO, DDOG
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DDOG
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-srpt-mo-ddog
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Sarepta Therapeutics Inc (Symbol: SRPT), where a total volume of 3,648 contracts has been traded thus far today, a contract volume which is representative of approximately 364,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 52.5% of SRPT's average daily trading volume over the past month, of 694,235 shares. Especially high volume was seen for the $80 strike put option expiring May 20, 2022, with 1,300 contracts trading so far today, representing approximately 130,000 underlying shares of SRPT. Below is a chart showing SRPT's trailing twelve month trading history, with the $80 strike highlighted in orange:
Altria Group Inc (Symbol: MO) saw options trading volume of 41,378 contracts, representing approximately 4.1 million underlying shares or approximately 51.3% of MO's average daily trading volume over the past month, of 8.1 million shares. Particularly high volume was seen for the $56 strike call option expiring April 22, 2022, with 17,035 contracts trading so far today, representing approximately 1.7 million underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $56 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) saw options trading volume of 16,537 contracts, representing approximately 1.7 million underlying shares or approximately 50.6% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $110 strike put option expiring April 29, 2022, with 4,791 contracts trading so far today, representing approximately 479,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $110 strike highlighted in orange:
For the various different available expirations for SRPT options, MO options, or DDOG 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 $110 strike put option expiring April 29, 2022, with 4,791 contracts trading so far today, representing approximately 479,100 underlying shares of DDOG. Below is a chart showing MO's trailing twelve month trading history, with the $56 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 16,537 contracts, representing approximately 1.7 million underlying shares or approximately 50.6% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $110 strike highlighted in orange: For the various different available expirations for SRPT options, MO options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing MO's trailing twelve month trading history, with the $56 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 16,537 contracts, representing approximately 1.7 million underlying shares or approximately 50.6% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $110 strike put option expiring April 29, 2022, with 4,791 contracts trading so far today, representing approximately 479,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $110 strike highlighted in orange: For the various different available expirations for SRPT options, MO options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing MO's trailing twelve month trading history, with the $56 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 16,537 contracts, representing approximately 1.7 million underlying shares or approximately 50.6% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $110 strike put option expiring April 29, 2022, with 4,791 contracts trading so far today, representing approximately 479,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $110 strike highlighted in orange: For the various different available expirations for SRPT options, MO options, or DDOG options, visit StockOptionsChannel.com.
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Below is a chart showing MO's trailing twelve month trading history, with the $56 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 16,537 contracts, representing approximately 1.7 million underlying shares or approximately 50.6% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $110 strike put option expiring April 29, 2022, with 4,791 contracts trading so far today, representing approximately 479,100 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $110 strike highlighted in orange: For the various different available expirations for SRPT options, MO options, or DDOG options, visit StockOptionsChannel.com.
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33ad4351-1042-4d22-a976-ec7181e05e89
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718680.0
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2022-04-13 00:00:00 UTC
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Tech Sell-Off: 2 Unstoppable Stocks to Buy Right Now
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DDOG
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https://www.nasdaq.com/articles/tech-sell-off%3A-2-unstoppable-stocks-to-buy-right-now
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nan
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nan
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Many investors have faced significant headwinds through the first quarter of 2022. Only two of the 11 S&P 500 market sectors -- energy and utilities -- have generated positive returns, while the information technology sector has plunged nearly 15%. Collectively, the S&P 500 is about 8% off its high.
That's the short-term situation for the S&P 500. Over the longer term (30 years or so), the market has generated an annualized return of 8.2%, and that's despite weathering several downturns. What savvy, long-term investors have come to learn is that broad-based market sell-offs often present a great opportunity to put money into the market to generate outsized gains.
For instance, digital transformation should make Datadog (NASDAQ: DDOG) and Arista Networks (NYSE: ANET) unstoppable in the years ahead, and both stocks look like smart investments. Here's why.
Image source: Getty Images.
1. Datadog
Datadog specializes in monitoring and analytics. Its cloud software helps businesses keep tabs on their applications, networks, and infrastructure by ingesting trillions of signals each day. Its platform then leans on artificial intelligence to make sense of that information, identify problems, and surface actionable insights, thereby preventing (or minimizing) downtime in business-critical systems.
Datadog is designed to be cloud-agnostic and easy to deploy. Its software runs across private data centers, public clouds, and multi-cloud environments. It also features 500 built-in integrations, accelerating time to value for clients. Better yet, it allows clients to monitor their entire IT ecosystem from a single dashboard. That value proposition has fueled impressive financial results.
Datadog's customer base increased 33% to 18,800 last year, and its retention rate stayed above 130%, meaning the average customer spent in excess of 30% more. Thanks to the success of its land-and-expand growth strategy, revenue surged 70% to $1 billion in 2021, and free cash flow hit $251 million, up from $83 million in the prior year. But with a market opportunity of $53 billion by 2025, shareholders have good reason to believe that momentum will continue.
Datadog has continuously evolved its product portfolio over the years -- for instance, it launched cloud security tools in 2021 -- and management still sees room to expand into new categories like real-time business intelligence, developer workflows, and IT service management. Additionally, IT environments will only become more complex in the years ahead as enterprises continue to invest in digital transformation. That should be a powerful tailwind for Datadog.
2. Arista Networks
Arista specializes in high-performance networking solutions -- the switching and routing platforms that power modern data centers. Its technology allows clients to deploy fast and scalable networks across their entire IT ecosystems, from the cloud to the enterprise campus. It also provides solutions for network monitoring, automation, and security, which collectively simplify network management for IT teams.
Arista has differentiated itself from industry-leader Cisco Systems in two key ways. First, its Extensible Operating System (EOS) runs across its entire hardware portfolio, while Cisco uses different operating systems -- one for data centers, another for the enterprise campus -- which makes network management more complicated. Second, Arista does not build its own semiconductors; instead, it sources all of its silicon from third-party vendors like Intel, which keeps costs down and gives its clients more flexibility. Cisco, on the other hand, does design its own chips.
That edge has helped Arista win customers like Microsoft and Meta Platforms, and it has fueled consistently solid financial results. In 2021, revenue rose 27% to $2.9 billion, operating margin rose 118 basis points to 31.4%, and free cash flow climbed 32% to $951 million.
Last year Cisco captured 41% of spending in the broader data center switching space, down significantly from 78% market share in 2012. Meanwhile, Arista has grown its market share from 4% to 19% over the last decade. More importantly, Arista leads the pack at the speedier end of the spectrum, meaning 100-gigabit switches and above. That's important because digital transformation initiatives -- think cloud adoption and the ever-growing number of connected devices -- will continue to put a strain on data centers, making faster networking solutions a necessity.
On that note, management puts the company's market opportunity at $29 billion by 2023, leaving plenty of room for growth. That's why this growth stock looks like a smart long-term investment.
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. Trevor Jennewine owns Arista Networks. The Motley Fool owns and recommends Arista Networks, Cisco Systems, Datadog, Intel, Meta Platforms, Inc., and Microsoft. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 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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For instance, digital transformation should make Datadog (NASDAQ: DDOG) and Arista Networks (NYSE: ANET) unstoppable in the years ahead, and both stocks look like smart investments. Its platform then leans on artificial intelligence to make sense of that information, identify problems, and surface actionable insights, thereby preventing (or minimizing) downtime in business-critical systems. That's important because digital transformation initiatives -- think cloud adoption and the ever-growing number of connected devices -- will continue to put a strain on data centers, making faster networking solutions a necessity.
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For instance, digital transformation should make Datadog (NASDAQ: DDOG) and Arista Networks (NYSE: ANET) unstoppable in the years ahead, and both stocks look like smart investments. Arista Networks Arista specializes in high-performance networking solutions -- the switching and routing platforms that power modern data centers. First, its Extensible Operating System (EOS) runs across its entire hardware portfolio, while Cisco uses different operating systems -- one for data centers, another for the enterprise campus -- which makes network management more complicated.
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For instance, digital transformation should make Datadog (NASDAQ: DDOG) and Arista Networks (NYSE: ANET) unstoppable in the years ahead, and both stocks look like smart investments. Arista Networks Arista specializes in high-performance networking solutions -- the switching and routing platforms that power modern data centers. The Motley Fool owns and recommends Arista Networks, Cisco Systems, Datadog, Intel, Meta Platforms, Inc., and Microsoft.
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For instance, digital transformation should make Datadog (NASDAQ: DDOG) and Arista Networks (NYSE: ANET) unstoppable in the years ahead, and both stocks look like smart investments. Arista Networks Arista specializes in high-performance networking solutions -- the switching and routing platforms that power modern data centers. First, its Extensible Operating System (EOS) runs across its entire hardware portfolio, while Cisco uses different operating systems -- one for data centers, another for the enterprise campus -- which makes network management more complicated.
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718681.0
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2022-04-11 00:00:00 UTC
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Another Feather in Its Cap Validates Datadog's Momentum
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DDOG
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https://www.nasdaq.com/articles/another-feather-in-its-cap-validates-datadogs-momentum
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Datadog (NASDAQ: DDOG), a provider of monitoring and security solutions, announced recently that tech stalwart Microsoft is expanding its partnership with the company -- a big stamp of approval of Datadog's growing capabilities. Datadog has been delivering great results since going public in September 2019, but many investors are still fretting over the company's high valuation and have avoided investing in Datadog. Let's review why that may turn out to be an ill-advised decision for long-term investors.
Image source: Getty Images.
Growing dominance in the monitoring market
Reliable technology infrastructure is pivotal for businesses to succeed in today's digital-first world. Datadog, with its growing suite of monitoring and security products, provides early warning signs and key insights to detect and proactively address potential technology problems that may otherwise lead to business disruptions.
On March 30, 2022, Datadog announced that it is now a Microsoft partner within the Azure Cloud Adoption Framework -- Microsoft's roadmap for companies to successfully migrate their technology applications from legacy data centers to Microsoft's Azure cloud computing platform. Datadog was already a Microsoft partner, where customers could find Datadog products in the Azure marketplace. However, the integration and promotion of Datadog in Azure by Microsoft, the second-largest company in the world by market capitalization is a major endorsement of Datadog's capabilities.
Also, businesses looking to move to Azure -- a top cloud provider with about 22% market share in 2021, according to Statista -- will now get to learn about Datadog, and the value it provides, sooner in their Azure adoption journey and are potentially more likely to adopt Datadog.
In addition to Microsoft's Azure, Amazon Web Services, and Alphabet's Google Cloud Platform have also partnered with Datadog. Partnerships with the top three cloud providers that collectively boast a 64% share of the cloud computing market at the end of 2021, highlight Datadog's essential role in the cloud infrastructure, a critical imperative for businesses in the increasingly digital world.
Excellence in product innovation is resonating with customers
With constantly changing business and technology landscapes, IT platforms have gotten increasingly difficult to monitor, operate, and keep running smoothly. Datadog makes these complex tasks easier for its customers.
Datadog is constantly innovating and adding new products to its offering, serving the broader needs of its customers and, in turn, capturing a greater share of customers' wallets.
Image source: Datadog earnings presentation.
As of the fourth quarter of 2021, Datadog's net dollar-retention rate -- how much more the average existing client spends from one year to the next -- has topped 130% for the 18th consecutive quarter. Datadog's largest customers continue to show a growing affinity for its products: Customers with $1 million or more in revenue more than doubled from 101 at the end of 2020 to 216 at the end of 2021. Meanwhile, customers with $100,000 or more grew by 63%, from 1,228 to 2,010 for the same period.
Datadog's outstanding execution led to a whopping 70% year-over-year revenue growth in 2021. That's impressive for any company but especially rare for one with annual recurring revenue over $1 billion. And while the company recognized a modest $2 million loss in operating margin in 2021, it generated over $250 million in positive cash flow.
With its superior product set yielding such strong traction with customers, it is no surprise that, despite having their own monitoring services, the tech giants are inviting Datadog into their ecosystems.
Should investors ignore the valuation?
As of this writing, shares of Datadog were trading at an eye-popping price-to-sales valuation of 41. Although that number is down from over 70 in November 2021, it is still higher relative to its historical multiples, which suggests that the market's confidence and expectations of Datadog have grown over time. Any missteps in execution or a miss in the results even for one quarter can dramatically impact Datadog's shares in the short term. Such worries may discourage investors from taking a position in the company.
DDOG PS Ratio data by YCharts.
The market is demanding a relatively higher price premium for Datadog because it has proven to be a high-quality business with sustainable growth. Datadog expects to carry that momentum into 2022 with a revenue growth forecast of about 50%. Thanks to its expanding product suite, Datadog is projecting its addressable market to grow 40% from $38 billion in 2021 to $53 billion in 2025. With its 2021 revenue of $1 billion, the company is barely scratching the surface of the opportunity in front of it. And Microsoft's expanding partnership with the company just reinforces that prospect.
Sitting on the sidelines may mean missing out on great returns in the long run. For investors with long-term time horizons and well-diversified portfolios, a balanced approach could be used to build a position incrementally. Essentially investors take a small position in the company, monitor its performance over coming quarters, and add later at potentially more attractive valuations if the company continues to execute well.
Overall, Datadog's excellence in product innovation, outstanding execution, and opportunity to grow into a much larger business position the company to be a long-term winner.
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 April 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. Kaustubh Deshmukh (KD) owns Alphabet (C shares), Amazon, Datadog, and Microsoft. The Motley Fool owns and recommends Amazon, Datadog, and Microsoft. The Motley Fool recommends Alphabet (A shares) and Alphabet (C shares). 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), a provider of monitoring and security solutions, announced recently that tech stalwart Microsoft is expanding its partnership with the company -- a big stamp of approval of Datadog's growing capabilities. DDOG PS Ratio data by YCharts. Datadog, with its growing suite of monitoring and security products, provides early warning signs and key insights to detect and proactively address potential technology problems that may otherwise lead to business disruptions.
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Datadog (NASDAQ: DDOG), a provider of monitoring and security solutions, announced recently that tech stalwart Microsoft is expanding its partnership with the company -- a big stamp of approval of Datadog's growing capabilities. DDOG PS Ratio data by YCharts. Overall, Datadog's excellence in product innovation, outstanding execution, and opportunity to grow into a much larger business position the company to be a long-term winner.
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Datadog (NASDAQ: DDOG), a provider of monitoring and security solutions, announced recently that tech stalwart Microsoft is expanding its partnership with the company -- a big stamp of approval of Datadog's growing capabilities. DDOG PS Ratio data by YCharts. On March 30, 2022, Datadog announced that it is now a Microsoft partner within the Azure Cloud Adoption Framework -- Microsoft's roadmap for companies to successfully migrate their technology applications from legacy data centers to Microsoft's Azure cloud computing platform.
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Datadog (NASDAQ: DDOG), a provider of monitoring and security solutions, announced recently that tech stalwart Microsoft is expanding its partnership with the company -- a big stamp of approval of Datadog's growing capabilities. DDOG PS Ratio data by YCharts. Should investors ignore the valuation?
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718682.0
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2022-04-11 00:00:00 UTC
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7 Cloud Computing Stocks to Buy for April 2022
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DDOG
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https://www.nasdaq.com/articles/7-cloud-computing-stocks-to-buy-for-april-2022
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Datadog (NASDAQ:DDOG) – attracting more large-sized corporate customers
Fastly (NYSE:FSLY) – quarterly losses forgivable as valuation falls
Limelight Networks (NASDAQ:LLNW) – latest acquisition expands product offering
Cloudflare (NYSE:NET) – high network performance will attract customers
Shopify (NYSE:SHOP) – investments in business will expand market share
Splunk (NASDAQ:SPLK) – investors expect the company to reach a path to profitability sooner
VMware (NYSE:VMW) – product portfolio leads to expanded margins
Investors panic-sold cloud computing stocks that benefited from the coronavirus-driven lockdown in the first quarter of 2022 as they worried that the trend was ending.
Cracks in even the most optimistic view for exponential growth faded. Cloud infrastructure companies posted weaker quarterly results. Management lowered guidance for the next quarter, then for the next full year.
At first, Fed members labeled inflation as transitory. Yet the great resignation, a movement that is potentially ending, forced companies to pay higher wages.
7 Desirable Dividend Growth Stocks for Income Investors
These two factors have combined to make several cloud stocks look much more attractive.
Looking ahead, the Fed’s higher interest rates will hurt stock valuations. This will create an attractive entry point for cloud computing stocks.
Datadog DDOG $134.29
Fastly FSLY $18.12
Limelight Networks LLNW $4.92
Cloudflare NET $109.77
Shopify SHOP $603.18
Splunk SPLK $132.61
VMware VMW $111.05
Cloud Computing Stocks to Buy: Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog posted fourth-quarter revenue growing by 84% year-over-year to $326 million. The monitoring and security platform for cloud applications firm said that its annual recurring revenue from large customers grew. It now has 216 large-sized customers generating $1 million or more in ARR.
DataDog’s strong outlook for the first quarter suggests healthy demand momentum. When it reports results, DDOG stock may lift on Q1 revenue at between $334 million and $339 million.
It will earn up to 12 cents a share. For the fiscal year of 2022, DataDog expects revenue of between $1.51 billion and $1.53 billion. The company will post non-GAAP net income a share of up to 51 cents.
Investors who want to add growth names to their portfolios would do well to buy DataDog shares this month. The company will likely exceed expectations. It positioned its core products to capture corporate demand for security. The addressable market for security is at least $20 billion.
As weaker firms rely on advertising to attract customers, DataDog will not need unsustainably higher expense growth. Markets will reward dominant companies while dumping positions in under-performers.
Fastly (FSLY)
Source: Pavel Kapysh / Shutterstock.com
Fastly is the world’s fastest global edge cloud network provider. In the fourth quarter, the company posted revenues of $97.72 million.
While the market has been keen to sell companies that do not earn money, investors shouldn’t punish Fastly for its non-GAAP EPS of a 10 cent loss.
Fastly reported non-GAAP gross margin of 55.8%, down from 63.7% year-over-year. Looking ahead, its revenue will be in the range of $97 million to $100 million. And for the year, Fastly’s revenue should top $410 million.
7 Chip Stocks Keeping the Tech Sector Running
Hopeful investors who bought FSLY stock at more than $55 paid too much. Now that the stock bottomed in the teens, bears cannot rely on lower valuations to bet against further downside. To reaccelerate growth, Fastly must grow its customer base. This is an uphill battle. Edge cloud computing is a fiercely competitive market.
Speculators may bet that markets over-reacted to Fastly’s decelerating growth in the last few quarters. The company may lower its pricing to increase sales volume. This should lure customers from competitors and lead to an April bounce in the stock price.
To sustain an uptrend Fastly needs to hold its strong content delivery network traffic volumes.
Cloud Computing Stocks to Buy: Limelight Networks (LLNW)
Source: Gorodenkoff/Shutterstock.com
Limelight Networks bottomed last year. With LLNW stock in a strong uptrend, investors should consider the company now. On March 7, Limelight acquired Yahoo’s EdgeCast CDN service.
Limelight will rebrand Edgecast as Edgio. This acquisition enables the company to offer edge computing, CDN and streaming delivery services.
Functions@Edge is an unexplored territory. FaaS is a serverless computing solution that customers will want. The Limelight and Edgio combination raises the firm’s global network capacity to more than 200Tbps and over 300 Points of Presence (or PoP) globally.
In January, Limelight said it set a new online traffic delivery record. Several of Limelight’s largest clients increased their volumes.
The company’s strong start this year will lift quarterly results. Furthermore, past investments in research and development improved Limelight’s network performance. Despite congested and changing network conditions, clients did not face any quality issues. In the next earnings report, expect LLNW stock to rise as it posts higher gross margins.
When Limelight increases its gross margin forecasts for the year, the stock has a good chance of rising further.
Cloudflare (NET)
Source: IgorGolovniov / Shutterstock.com
Cloudflare traded as low as $80 throughout the first quarter and bounced back each time. The web infrastructure firm posted revenue of $193.6 million, up by 54% year-over-year.
Cloudflare’s operating cash flow growth will allay investor fears that NET stock trades at too high a valuation. Gross profit in Q4 was $153.3 million or 79.2% gross margin. On a GAAP basis, it lost $41.4 million, up from $24.7 million last year. As a growth firm, investors should look beyond the losses.
7 Safe Stocks to Buy to Guard Against a Recession
The company invested heavily in the back half of 2021 to speed up its network. It continues to increase the CDN’s reliability. For example, every time it adds another provider, Cloudflare has control to optimize for performance and reliability.
Cloudflare’s customers will expect it to offer a high-performance network. Furthermore, they will take advantage of its zero-trust offering. Cyberattack risks will increase this year, so customers need to protect themselves from denial of service attacks.
Corporations will not require their staff to return to the physical workplace full time. In a hybrid model, they will need to set up virtual desktops to support working from home. Cloudflare’s zero-trust network initiative will protect them from cyberattack risks.
Cloud Computing Stocks to Buy: Shopify (SHOP)
Source: Paul McKinnon / Shutterstock.com
Shopify spooked investors when it posted fourth-quarter results that indicated a slowdown in the business.
Shopify posted revenue growing by 41.1% to $1.38 billion. It earned $1.37 a share (non-GAAP). Investors who merely skimmed the forward guidance cannot expect its growth would match 2021 levels.
Shopify’s President Harley Finkelstein tempered expectations by noting the extraordinary growth in the last two years. It nearly tripled its revenue, more than doubled its gross merchandise volume and staff, and nearly doubled merchant counts from 2019 levels.
The e-commerce platform company invested its gross profit dollars heavily into the business. Shopify will capture many opportunities ahead from here.
As the digital commerce transformation unfolds, shareholders shouldn’t watch the company’s operating income on a quarter-to-quarter basis. Growth will accelerate over several years, as investments into Shop App, Shopify POS and Shopify Fulfillment Network pay off.
Investors should watch Shopify’s three-year investment cycle lead to higher capacity and fulfillment capabilities. This will renew its revenue potential in the quarter ahead.
Splunk (SPLK)
Source: Michael Vi / Shutterstock.com
Splunk signaled multiple bottoms at $110 since Dec. 2021. Despite the recent rally, the strong fourth quarter will justify higher valuations from here.
In Q4, Splunk posted Cloud ARR revenue of $1.34 billion, up by 65% Y/Y. It has 317 customers with a cloud ARR of over $1 million, up by 70% year-over-year.
For 2022, Splunk expects cloud ARR of at least $2 billion. Total ARR will be around $3.9 billion, but the non-GAAP operating margin will be between 0% and 2%.
7 Biotech Stocks to Buy With Key Catalysts for April
Amid Nasdaq’s Q1 correction, investors dumped companies that did not make money. Splunk beat Wall Street’s expectations yet it is still losing money. Still, traders are taking a “risk-on” approach with SPLK stock. The company has the momentum to exceed its 2022 forecast.
Splunk is better off growing revenue while accelerating expenses at a faster pace. Though it will lose money in the near term, the company needs to retain talented professionals. The economic downtrend ahead will hurt weaker firms.
When that happens, Splunk may rely on the efforts of its staff to deliver a stronger product. This will increase ARR and shorten Splunk’s path to profitability.
Cloud Computing Stocks to Buy: VMware (VMW)
Source: Sundry Photography / Shutterstock.com
VMware fell after its largest shareholder, Dell (NYSE:DELL), spun off shares. The selling overhang will end this month as investors look at VMW stock valuations.
The virtual machine software provider posted strong subscription and SaaS revenue. Expect steady customer demand for its solutions to continue.
In the last quarter, VMware posted revenue of $3.53 billion, up by 7% year-over-year.
Subscription and SaaS, plus license revenue, added $1.9 billion in revenue, up by 11% year-over-year. This is a preferred type of revenue because the company may enjoy its predictable results.
VMware will build its sales by scaling its multi-cloud platform. Customers need a simplified capital structure to cut costs. Inflationary pressures will increase costs, so customers need to lower technology costs for cloud management solutions.
VMware will expand margins by promoting Carbon Black Cloud and VMware Tanzu (a developer tooling solution) to current customers. The company’s Tanzu application platform is maturing.
VMware positioned Tanzu and its product portfolio to meet customer demands for cloud solutions.
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 original insight that helps improve investment returns.
The post 7 Cloud Computing Stocks to Buy for April 2022 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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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Datadog (NASDAQ:DDOG) – attracting more large-sized corporate customers Fastly (NYSE:FSLY) – quarterly losses forgivable as valuation falls Limelight Networks (NASDAQ:LLNW) – latest acquisition expands product offering Cloudflare (NYSE:NET) – high network performance will attract customers Shopify (NYSE:SHOP) – investments in business will expand market share Splunk (NASDAQ:SPLK) – investors expect the company to reach a path to profitability sooner VMware (NYSE:VMW) – product portfolio leads to expanded margins Investors panic-sold cloud computing stocks that benefited from the coronavirus-driven lockdown in the first quarter of 2022 as they worried that the trend was ending. Datadog DDOG $134.29 Fastly FSLY $18.12 Limelight Networks LLNW $4.92 Cloudflare NET $109.77 Shopify SHOP $603.18 Splunk SPLK $132.61 VMware VMW $111.05 Cloud Computing Stocks to Buy: Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog posted fourth-quarter revenue growing by 84% year-over-year to $326 million. When it reports results, DDOG stock may lift on Q1 revenue at between $334 million and $339 million.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Datadog (NASDAQ:DDOG) – attracting more large-sized corporate customers Fastly (NYSE:FSLY) – quarterly losses forgivable as valuation falls Limelight Networks (NASDAQ:LLNW) – latest acquisition expands product offering Cloudflare (NYSE:NET) – high network performance will attract customers Shopify (NYSE:SHOP) – investments in business will expand market share Splunk (NASDAQ:SPLK) – investors expect the company to reach a path to profitability sooner VMware (NYSE:VMW) – product portfolio leads to expanded margins Investors panic-sold cloud computing stocks that benefited from the coronavirus-driven lockdown in the first quarter of 2022 as they worried that the trend was ending. Datadog DDOG $134.29 Fastly FSLY $18.12 Limelight Networks LLNW $4.92 Cloudflare NET $109.77 Shopify SHOP $603.18 Splunk SPLK $132.61 VMware VMW $111.05 Cloud Computing Stocks to Buy: Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog posted fourth-quarter revenue growing by 84% year-over-year to $326 million. When it reports results, DDOG stock may lift on Q1 revenue at between $334 million and $339 million.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Datadog (NASDAQ:DDOG) – attracting more large-sized corporate customers Fastly (NYSE:FSLY) – quarterly losses forgivable as valuation falls Limelight Networks (NASDAQ:LLNW) – latest acquisition expands product offering Cloudflare (NYSE:NET) – high network performance will attract customers Shopify (NYSE:SHOP) – investments in business will expand market share Splunk (NASDAQ:SPLK) – investors expect the company to reach a path to profitability sooner VMware (NYSE:VMW) – product portfolio leads to expanded margins Investors panic-sold cloud computing stocks that benefited from the coronavirus-driven lockdown in the first quarter of 2022 as they worried that the trend was ending. Datadog DDOG $134.29 Fastly FSLY $18.12 Limelight Networks LLNW $4.92 Cloudflare NET $109.77 Shopify SHOP $603.18 Splunk SPLK $132.61 VMware VMW $111.05 Cloud Computing Stocks to Buy: Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog posted fourth-quarter revenue growing by 84% year-over-year to $326 million. When it reports results, DDOG stock may lift on Q1 revenue at between $334 million and $339 million.
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Datadog DDOG $134.29 Fastly FSLY $18.12 Limelight Networks LLNW $4.92 Cloudflare NET $109.77 Shopify SHOP $603.18 Splunk SPLK $132.61 VMware VMW $111.05 Cloud Computing Stocks to Buy: Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog posted fourth-quarter revenue growing by 84% year-over-year to $326 million. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Datadog (NASDAQ:DDOG) – attracting more large-sized corporate customers Fastly (NYSE:FSLY) – quarterly losses forgivable as valuation falls Limelight Networks (NASDAQ:LLNW) – latest acquisition expands product offering Cloudflare (NYSE:NET) – high network performance will attract customers Shopify (NYSE:SHOP) – investments in business will expand market share Splunk (NASDAQ:SPLK) – investors expect the company to reach a path to profitability sooner VMware (NYSE:VMW) – product portfolio leads to expanded margins Investors panic-sold cloud computing stocks that benefited from the coronavirus-driven lockdown in the first quarter of 2022 as they worried that the trend was ending. When it reports results, DDOG stock may lift on Q1 revenue at between $334 million and $339 million.
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2022-04-10 00:00:00 UTC
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2 Top Tech Stocks to Buy During a Recession
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DDOG
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https://www.nasdaq.com/articles/2-top-tech-stocks-to-buy-during-a-recession-2
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nan
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Buying stocks during a recession can be the most emotionally difficult thing to do in investing. Unless you time the market perfectly -- which is highly unlikely -- the companies you buy will continue to sink, and watching the value of your portfolio shrink is painful.
So why would you buy stocks during a recession? If history is any indicator, it can also be one of the best times to be putting money in the market. For example, if you bought the tech-heavy Nasdaq Composite index in April 2009, near the depths of the Great Recession, and held it until April 7, 2022, your investment would have grown 774%. This is equivalent to an average annual return of 18%, which is almost double what the market traditionally offers.
For long-term investors, then, investing when stocks are struggling can be one of the smartest decisions you make. Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) are high on my watch list in such a situation. If these stocks saw steep declines in a weak economy, they would still have the potential to trounce the market long term because of their dominance, competitive advantages, and the tailwinds pushing them forward.
Image source: Getty Images.
1. Datadog
More companies are becoming cloud native, meaning they are expanding their use of tech-based applications and infrastructure. This is where Datadog comes in by providing services for businesses to ensure all of their cloud applications are running smoothly, and their network is operational and secure. The company acts as an eye in the sky for a company's cloud-based operations, and it is one of the leading platforms according to Gartner's Magic Quadrant research.
One of its main advantages over competitors is switching costs: The company has products for nearly everything a business may need to oversee its cloud, from network performance monitoring to user monitoring to scanning data logs for sensitive information. This creates a thriving ecosystem where once a customer gets integrated into multiple services, it is incredibly difficult to shift away. This might be why Datadog's churn is in the mid to low single digits.
One of the most impressive things about Datadog is its ability to expand its relationship with existing customers. Its net retention rate in the fourth quarter remained above 130% for the 18th consecutive quarter. This means customers from Q4 2020 are now spending 30% more on average as of the most recent report, thanks mostly to their adoption of more products. And 33% of customers used four or more features at the end of last year, up from 22% in the year-ago period. A similar trend can be seen in the number of users with six or more platforms, which grew from 3% to 10% over the same period. All of this signals that Datadog is loved by its customers, and as they become more integrated into the Datadog ecosystem, it will be harder to leave.
Many fast-growing tech companies are unprofitable, but Datadog stands out: It is teetering on the edge of profitability. The company lost $21 million in 2021, which decreased year over year and now represents just 2% of revenue. Datadog is not perfect, however. It trades at 40 times sales -- a very high valuation. That being said, its leadership and strengthening competitive advantages are so impressive they might be worth paying up for. If a recession bumps the share price down, Datadog would be a screaming buy.
2. Zscaler
Zscaler is in a similar situation as Datadog: It is a leader with a strong advantage over the competition and commands a high valuation of 37 times sales. But Zscaler specializes in "zero-trust" cybersecurity, which means the company acts as a bouncer for a business's cloud, data, and applications. Whenever an employee tries to access these parts of the business, Zscaler makes sure they actually are who they say they are.
This seems like a hyperfocused segment of the cybersecurity market as a whole, but it still leaves Zscaler with plenty of growth potential. The company's serviceable market is worth $72 billion, and considering the company reported just $860 million in revenue in the trailing 12 months, the opportunity is still tremendous.
The company has attracted over 5,600 customers, 1,480 of which spend over $100,000 annually. While the main risk is competition, the company's leadership position should deliver continued success. After all, no business wants to skimp on security as sophisticated cyberattacks make headlines on a frequent basis. As the world becomes more digital, there will be more of these threats, meaning demand for Zscaler's services is only going to rise in the future. This is why I would buy more Zscaler and hold it long term if a recession knocked the stock down to more attractive levels.
10 stocks we like better than Datadog
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*Stock Advisor returns as of April 7, 2022
Jamie Louko owns Datadog and Zscaler. The Motley Fool owns and recommends Datadog and Zscaler. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) are high on my watch list in such a situation. Unless you time the market perfectly -- which is highly unlikely -- the companies you buy will continue to sink, and watching the value of your portfolio shrink is painful. If these stocks saw steep declines in a weak economy, they would still have the potential to trounce the market long term because of their dominance, competitive advantages, and the tailwinds pushing them forward.
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Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) are high on my watch list in such a situation. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Jamie Louko owns Datadog and Zscaler. The Motley Fool owns and recommends Datadog and Zscaler.
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Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) are high on my watch list in such a situation. All of this signals that Datadog is loved by its customers, and as they become more integrated into the Datadog ecosystem, it will be harder to leave. Zscaler Zscaler is in a similar situation as Datadog: It is a leader with a strong advantage over the competition and commands a high valuation of 37 times sales.
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Datadog (NASDAQ: DDOG) and Zscaler (NASDAQ: ZS) are high on my watch list in such a situation. Buying stocks during a recession can be the most emotionally difficult thing to do in investing. Unless you time the market perfectly -- which is highly unlikely -- the companies you buy will continue to sink, and watching the value of your portfolio shrink is painful.
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00a6fd9f-4ce1-49f6-9bd8-e66ef93b9b99
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718684.0
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2022-04-09 00:00:00 UTC
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3 Cloud Stocks That Could Help Set You Up for Life
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DDOG
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https://www.nasdaq.com/articles/3-cloud-stocks-that-could-help-set-you-up-for-life
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nan
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nan
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The cloud computing market has expanded significantly over the past decade as more companies moved their businesses online. Faster internet speeds have also made it practical to process more data online and transform on-premise software into subscription-based cloud services.
But that high-growth market hasn't stopped growing yet. The global cloud computing market could still expand at a compound annual rate of 16.3% between 2021 and 2026, according to Markets and Markets, as businesses leverage more cloud-based services to streamline their operations, support growth of their mobile apps and websites, and utilize new machine learning and AI technologies to analyze their data.
Image source: Getty Images.
It can be tough to separate the winners from the losers in this crowded market, but I believe three high-growth cloud stocks -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) -- could still generate life-changing returns.
1. Alphabet
Alphabet's Google might initially seem like an underdog in the cloud market, but it's actually one of the sector's fastest-growing players.
Google Cloud's revenue rose 47% year-over-year to $19.2 billion, or 7% of Alphabet's top line, in 2021. Its share of the global cloud infrastructure market also rose two percentage points to 9% in the fourth quarter of the year, according to Canalys, putting it firmly in third place behind Amazon (NASDAQ: AMZN) Web Services (AWS) (33%) and Microsoft's (NASDAQ: MSFT) Azure (22%) in the public cloud race.
Google continues to attract big customers, especially retailers that don't want to tether themselves to Microsoft's other enterprise software or feed the growth of Amazon's most profitable business. Google Cloud's operating loss also narrowed from $5.6 billion in 2020 to $3.1 billion in 2021, which indicates that economies of scale are kicking in. Those losses could continue to narrow this year as it locks in more customers and raises its prices.
Alphabet still generates most of its revenue and all of its profits from its core advertising business. However, the many tentacles of that ecosystem -- which include its online search engine, YouTube, Android, Chrome, Gmail, Google Drive, and other services -- are also based in the cloud.
That sprawling ecosystem makes Alphabet one of the most diversified plays on the secular growth of the cloud market. Analysts expect it to continue to generate double-digit revenue growth with stable profits for the foreseeable future, but the stock still looks cheap at just 25 times forward earnings.
2. CrowdStrike
In the past, most enterprise-grade cybersecurity services required the installation of on-site appliances. That approach was expensive, required regular on-site maintenance, and was difficult to scale as an organization grew. CrowdStrike, which was founded in 2011, addresses those issues with a cloud-native platform that doesn't require any appliances.
Its platform, Falcon, protects network endpoints -- like mobile devices, laptops, desktops, and Internet of Things (IoT) devices -- from malicious attacks. It usually lures in customers with a starter trial of four cloud-based modules to cross-sell additional modules. Last quarter, 57% of its customers were using five or more modules, compared to 47% a year earlier.
Between fiscal 2020 and fiscal 2022, which ended this January, CrowdStrike's total number of subscription customers more than tripled from 5,431 to 16,325. Its revenue surged 66% to $1.45 billion in 2022, and it anticipates another 47%-49% growth in fiscal 2023. CrowdStrike's stock isn't cheap at 23 times this year's sales, but it trades at a more reasonable price-to-sales ratio compared to many other "hypergrowth" stocks.
CrowdStrike isn't profitable by generally accepted accounting principles (GAAP) yet, but it has stayed in the black on a non-GAAP basis over the past two years. It expects its non-GAAP net income to rise 56%-70% this year.
Its stock could remain volatile in this choppy market, but it's still one of the best plays on the cloud-based transformation of the cybersecurity sector.
3. Datadog
As organizations grow, it becomes increasingly difficult for IT professionals to diagnose hardware and software platforms across a wide range of fragmented platforms. Datadog solves that problem by monitoring all those services simultaneously and aggregating the real-time data on unified dashboards.
Datadog's cloud-based service can help companies save a lot of time and money while proactively avoiding hardware and software disasters. That's why the company is growing like a weed: Its revenue jumped 70% to $1.03 billion in 2021 as its non-GAAP net income surged 133% to $167 million. It also turned profitable on a GAAP basis in the fourth quarter of the year.
Between the fourth quarters of 2019 and 2021, Datadog's total number of customers that generated more than $100,000 in annual recurring revenue (ARR) more than doubled from 858 to 2,010. Its dollar-based net retention rate has also remained above 130% for 18 consecutive quarters.
Datadog expects its revenue to grow 47% to 49% in fiscal 2022. Analysts expect its adjusted earnings per share to rise 6%.
Datadog's stock might seem pricey at 28 times this year's sales, but its robust growth rates, improving profitability, and early-mover's advantage in its high-growth niche market all justify that higher valuation.
10 stocks we like better than Alphabet (A shares)
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*Stock Advisor returns as of April 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. Leo Sun owns Alphabet (A shares), Amazon, and CrowdStrike Holdings, Inc. The Motley Fool owns and recommends Alphabet (A shares), Amazon, CrowdStrike Holdings, Inc., Datadog, and Microsoft. The Motley Fool recommends Alphabet (C shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It can be tough to separate the winners from the losers in this crowded market, but I believe three high-growth cloud stocks -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) -- could still generate life-changing returns. Google continues to attract big customers, especially retailers that don't want to tether themselves to Microsoft's other enterprise software or feed the growth of Amazon's most profitable business. Analysts expect it to continue to generate double-digit revenue growth with stable profits for the foreseeable future, but the stock still looks cheap at just 25 times forward earnings.
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It can be tough to separate the winners from the losers in this crowded market, but I believe three high-growth cloud stocks -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) -- could still generate life-changing returns. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool owns and recommends Alphabet (A shares), Amazon, CrowdStrike Holdings, Inc., Datadog, and Microsoft.
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It can be tough to separate the winners from the losers in this crowded market, but I believe three high-growth cloud stocks -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) -- could still generate life-changing returns. The global cloud computing market could still expand at a compound annual rate of 16.3% between 2021 and 2026, according to Markets and Markets, as businesses leverage more cloud-based services to streamline their operations, support growth of their mobile apps and websites, and utilize new machine learning and AI technologies to analyze their data. Its share of the global cloud infrastructure market also rose two percentage points to 9% in the fourth quarter of the year, according to Canalys, putting it firmly in third place behind Amazon (NASDAQ: AMZN) Web Services (AWS) (33%) and Microsoft's (NASDAQ: MSFT) Azure (22%) in the public cloud race.
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It can be tough to separate the winners from the losers in this crowded market, but I believe three high-growth cloud stocks -- Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG) -- could still generate life-changing returns. Datadog expects its revenue to grow 47% to 49% in fiscal 2022. The Motley Fool owns and recommends Alphabet (A shares), Amazon, CrowdStrike Holdings, Inc., Datadog, and Microsoft.
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d90257ed-f3ee-4870-81c2-3d1ce12c4016
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718685.0
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2022-04-08 00:00:00 UTC
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Why Datadog Fell Over 12% This Week
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DDOG
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https://www.nasdaq.com/articles/why-datadog-fell-over-12-this-week
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG) sank 12.4% this week through 12 p.m. ET, even though there was little to no information coming from the company over the past five days.
Yet since Datadog sports a very high valuation, it was taken down along with a lot of other promising growth stocks, as long-term interest rates rose amid hawkish Federal Reserve commentary.
So what
Datadog has been one of the true all-stars of the enterprise software space. Its cloud-based observability tools have seen rapid uptake, resulting in the company's revenue surging by an impressive 84% last quarter.
However, in the software world, with great revenue growth usually comes a sky-high valuation, and Datadog possesses that as well. The stock currently goes for about 42 times sales, and about 28 times this year's sales estimates based on guidance for $1.52 billion, or 50% revenue growth this year. Datadog doesn't make profits under generally accepted accounting principles (GAAP) today, although based on forward estimates, it trades at a very high 312.5 times this year's earnings estimates.
Those high valuations caused Datadog to take a big hit when the Federal Reserve came out swinging this week in order to combat inflation. Comments from Fed Governor Lael Brainard on Tuesday and Philadelphia Fed President Patrick Harker on Wednesday suggested the Federal Reserve would be very aggressive in getting inflation down. That could push up interest rates faster than some might have expected.
But beyond short-term interest rates, the Fed released a plan to decrease its balance sheet by $95 billion per month beginning in May. The runoff or sales of securities from the Fed's balance sheet is more relevant for longer-term interest rates, or the "long end" of the curve, and that may be more relevant to Datadog's decline. Just this week alone, the yield on the 10-year Treasury bond has risen from around 2.4% to 2.7%. Over the past month, the 10-year yield has risen all the way from 1.87% to 2.7%, a very rapid increase in a short amount of time.
When calculating the intrinsic value of stocks, investors discount future earnings by a discount rate that is often based on the 10-year yield, plus a premium. The further out in the future the profits, the more they are discounted. So that is why high-growth, expensive stocks get hit disproportionally when long-term rates go up as they did this week.
Image source: Getty Images.
Now what
It's difficult to know where high-growth, highly valued stocks are going in the near term, as much will depend on the pace of inflation and current rate hikes compared with expectations.
Yet over the long term, Datadog looks like a strong company. IT management, software monitoring, and cybersecurity are all secular growth trends that are taking off, so Datadog has many years of strong growth ahead of it. The question is, how much are investors willing to pay for that growth?
Ironically, if the economy weakens and the U.S. heads toward recession, the Fed may stop raising rates and could start to lower them again. When that happens, Datadog may take off again, since it should have the ability to grow even in a weak economy. So even if Datadog looks too expensive for value investors today, it's a strong tech name to keep on your radar.
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 April 7, 2022
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns 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) sank 12.4% this week through 12 p.m. Yet since Datadog sports a very high valuation, it was taken down along with a lot of other promising growth stocks, as long-term interest rates rose amid hawkish Federal Reserve commentary. Those high valuations caused Datadog to take a big hit when the Federal Reserve came out swinging this week in order to combat inflation.
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What happened Shares of Datadog (NASDAQ: DDOG) sank 12.4% this week through 12 p.m. Yet since Datadog sports a very high valuation, it was taken down along with a lot of other promising growth stocks, as long-term interest rates rose amid hawkish Federal Reserve commentary. The stock currently goes for about 42 times sales, and about 28 times this year's sales estimates based on guidance for $1.52 billion, or 50% revenue growth this year.
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What happened Shares of Datadog (NASDAQ: DDOG) sank 12.4% this week through 12 p.m. Yet since Datadog sports a very high valuation, it was taken down along with a lot of other promising growth stocks, as long-term interest rates rose amid hawkish Federal Reserve commentary. 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) sank 12.4% this week through 12 p.m. However, in the software world, with great revenue growth usually comes a sky-high valuation, and Datadog possesses that as well. The stock currently goes for about 42 times sales, and about 28 times this year's sales estimates based on guidance for $1.52 billion, or 50% revenue growth this year.
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4a1f8fbe-05c6-463f-ac42-7f04ba6c3f55
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718686.0
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2022-04-07 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-0
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $137.24, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.2%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 3.89% over the past month. This has lagged the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $337.3 million, up 69.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.49 per share and revenue of $1.52 billion. These totals would mark changes of +2.08% and +48.07%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Datadog is holding a Forward P/E ratio of 277.63. This represents a premium compared to its industry's average Forward P/E of 52.25.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Datadog (DDOG) closed at $137.24, marking a -0.02% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 3.89% over the past month.
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In the latest trading session, Datadog (DDOG) closed at $137.24, marking a -0.02% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%.
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In the latest trading session, Datadog (DDOG) closed at $137.24, marking a -0.02% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.
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In the latest trading session, Datadog (DDOG) closed at $137.24, marking a -0.02% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report This has lagged the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
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735df340-fb61-4df4-8143-4d3f04caac89
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718687.0
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2022-04-06 00:00:00 UTC
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Why Zoom Video Communications, Datadog, and MongoDB Each Fell on Wednesday
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DDOG
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https://www.nasdaq.com/articles/why-zoom-video-communications-datadog-and-mongodb-each-fell-on-wednesday
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nan
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nan
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What happened
Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. ET.
None of the above reported material news today, so the declines were likely due to marketwide selling in technology stocks, specifically highly valued enterprise software names like these. That's been the result of some recent hawkish commentary from several Federal Reserve officials, who seem to be preparing the market for steep interest rate hikes.
So what
The aforementioned software stocks were darlings of the pandemic. As high-growth stocks with profits far out into the future, these stocks benefited when the Fed cut interest rates to zero. Meanwhile, usage of these new, "stay-at-home" tools helped businesses thrive during lockdowns. Therefore, these names saw an acceleration of growth.
However, it appears the pendulum has now swung the other way. The U.S. is coming out of the pandemic with a vengeance, with high inflation. Yesterday, Lael Brainard, known as one of the more dovish Fed officials, gave a decidedly hawkish speech, implying that the Fed would do what it takes to get inflation down -- perhaps even if that means slowing the economy or even pushing it into recession.
Then today, another Fed official, Philadelphia Fed President Patrick Harker, told the Delaware Chamber of Commerce:
Inflation is running far too high, and I am acutely concerned about this. ... The bottom line is that generous fiscal policies, supply chain disruptions and accommodative monetary policy have pushed inflation far higher than I -- and my colleagues on the [Federal Open Market Committee] -- are comfortable with. I'm also worried that inflation expectations could become unmoored.
The Fed is clearly telegraphing it will hike rates more than some might expect, and that it wants economic activity to slow down. That scenario isn't particularly good for stocks, especially growth stocks. Moreover, the Fed will begin reducing the amount of securities on its balance sheet next month. Therefore, Treasury bonds and mortgage-backed securities will lose a big buyer, meaning other private companies such as banks will need to buy them, and they will likely demand a higher yield.
That has the potential to keep long-term Treasury bond yields on the rise. Wednesday saw the 10-year yield rise as high as 2.64%, before settling in around 2.60%. However, that's up nearly 30 basis points in less than five days, which is a pretty quick increase.
Stock investors typically use a discount rate to discount the value of future earnings, and this rate is usually based on the 10-year Treasury yield, plus a premium. So if long-term Treasury yields rise, discount rates go up, and the value of earnings far out in the future go down.
Both Datadog and MongoDB are growing strongly, but have negative earnings at the moment, with the bulk of their value well out into the future. Zoom is actually cheaper, but still trades at 32 times this year's earnings estimates. That's not cheap, and some are worried about slowing growth for Zoom as the pandemic eases, as well as heightened competition in the video conferencing space.
During the pandemic, these names soared because we had a recession, but with low rates and a helpful Federal Reserve. However, in an inflationary recession with rising rates, these stocks aren't working, reversing some of those gains.
Image source: Getty Images.
Now what
It's a bit difficult to know what to do with these stocks at the moment. Each is a really high-quality company disrupting the enterprise computing space and showing impressive growth, especially Datadog and MongoDB.
On the other hand, these stocks are also very highly valued -- Datadog and MongoDB in particular trade at 47 and 32 times sales, respectively. Warren Buffett has long said that it's possible to pay too high a price even for terrific companies. After a very strong multi-year run, it looks as though these stocks are in for a difficult valuation reset.
On the other hand, over the long term -- as in, years from now -- each of these stocks appears to have a bright future. So while current holders may need to brace for more near-term pain, those interested in these stocks may want to look for an entry point as they fall back to earth.
10 stocks we like better than Zoom Video Communications
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 Zoom Video Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
Billy Duberstein owns MongoDB. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Datadog, MongoDB, and Zoom Video Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. None of the above reported material news today, so the declines were likely due to marketwide selling in technology stocks, specifically highly valued enterprise software names like these. That's been the result of some recent hawkish commentary from several Federal Reserve officials, who seem to be preparing the market for steep interest rate hikes.
|
What happened Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. So if long-term Treasury yields rise, discount rates go up, and the value of earnings far out in the future go down. The Motley Fool owns and recommends Datadog, MongoDB, and Zoom Video Communications.
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What happened Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. As high-growth stocks with profits far out into the future, these stocks benefited when the Fed cut interest rates to zero. Stock investors typically use a discount rate to discount the value of future earnings, and this rate is usually based on the 10-year Treasury yield, plus a premium.
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What happened Shares of Zoom Video Communications (NASDAQ: ZM), Datadog (NASDAQ: DDOG), and MongoDB (NASDAQ: MDB) each fell hard on Wednesday, with the stocks down 4.8%, 6.9%, and 7%, respectively, as of 1:48 p.m. So if long-term Treasury yields rise, discount rates go up, and the value of earnings far out in the future go down. During the pandemic, these names soared because we had a recession, but with low rates and a helpful Federal Reserve.
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d14bea57-d8ef-4711-8364-83e99804f232
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718688.0
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2022-04-05 00:00:00 UTC
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Why Snowflake, HubSpot, and Datadog Plunged Today
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DDOG
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https://www.nasdaq.com/articles/why-snowflake-hubspot-and-datadog-plunged-today
|
nan
|
nan
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What happened
Shares of top technology growth stocks Snowflake (NYSE: SNOW), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) plunged today, with shares down 5.4%, 6.2%, and 7%, respectively, as of 1:15 p.m. ET.
There wasn't any material news out of any of these companies today; therefore, the culprit was most likely macroeconomic. While high-growth software stocks actually may have benefited from recessionary fears over an inverted yield curve last week, it was long-term rates that spiked on Tuesday, which actually reversed the inversion.
Higher long-term interest rates are a headwind to high-growth stocks, leading to the big moves we saw today.
So what
This morning, Federal Reserve Governor Lael Brainard, who had been known to be one of the more dovish Federal Reserve officials, gave some surprisingly hawkish comments, specifically with regards to the Federal Reserve unwinding its balance sheet.
In a prepared statement, Brainard said: "Currently, inflation is much too high and is subject to upside risks. The Committee is prepared to take stronger action if indicators of inflation and inflation expectations indicate that such action is warranted."
There has been lots of handwringing as to whether the Federal Reserve will tighten so quickly as to push the economy into a recession to tame inflation. However, high-growth software stocks, with their recurring revenue and secular growth outlook, tend to outperform when recession fears are high. So why is today different?
Ironically, investors may be taking Brainard's comments to mean the U.S. economy may remain relatively strong, but will live in a higher-inflation, higher-rate environment going forward. Specifically, Brainard called out the very strong U.S. recovery, which may necessitate a quicker unwinding of the Fed's $9 trillion balance sheet. Brainard continued:
Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017–19.
While interest rate hikes affect the shorter end of the yield curve, the Fed unwinding its balance sheet quicker than expected could lead to higher long-term rates if it begins selling longer-dated maturity securities. When the Fed was buying long-term U.S. Treasuries, that extra demand had the effect of holding down long-term rates. Brainard is signaling the Fed may now be selling those securities more quickly than expected, which is why the longer-term rates spiked on Tuesday.
In response, the 10-year Treasury Bond yield spiked to 2.554% as of 1:10 p.m. ET, the highest rate since May of 2019.
What does this have to do with Snowflake, Datadog, and HubSpot? Well, these companies are best-in-class software names, displaying remarkably high revenue growth amid long-term trends in the big data economy. However, none of these companies are profitable today, as they aggressively reinvest to capitalize on their growth opportunities.
With profitability far out in the future, their intrinsic value is highly sensitive to long-term interest rates. That's because investors tend to use long-term risk-free rates such as the 10-year Treasury yield as a baseline for discounting future profits. So when the 10-year yield has a big spike up, future profits are discounted by a greater amount in today's dollars, and these stocks tend to fall -- even if they are best-in-class.
Image source: Getty Images.
Now what
No doubt, these stocks are displaying terrific growth, with Snowflake growing revenue 101.5%, Datadog growing 83.7%, and HubSpot seeing revenue up 46.5% last quarter. At the same time, these profit-less stocks also trade at a lofty 59, 46, and 19 times sales, respectively.
Therefore, it is very difficult to navigate these companies' growth opportunities against a high valuation in a changing interest rate regime. If you own or are interested in these three top tech names, you should really have a specific view on their competitive advantage, growth potential, a clear estimate for long-term margins, and when profitability may occur.
Investors should also take care to discount the future by an appropriate rate, consisting of an equity risk premium over long-term risk-free rates. That premium is what investors demand for taking the "risk" of owning equities over Treasuries, and that premium has ranged from anywhere between 2.5% and 6.5% over the last 50 years, according to calculations by NYU valuation professor Aswath Damodaran. Investors should probably use a premium at least in the middle of that range, as too low a premium could lead one to overvalue stocks.
10 stocks we like better than Snowflake Inc.
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*Stock Advisor returns as of March 3, 2022
Billy Duberstein has the following options: short January 2023 $100 puts on Snowflake Inc. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Datadog, HubSpot, 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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What happened Shares of top technology growth stocks Snowflake (NYSE: SNOW), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) plunged today, with shares down 5.4%, 6.2%, and 7%, respectively, as of 1:15 p.m. While high-growth software stocks actually may have benefited from recessionary fears over an inverted yield curve last week, it was long-term rates that spiked on Tuesday, which actually reversed the inversion. Well, these companies are best-in-class software names, displaying remarkably high revenue growth amid long-term trends in the big data economy.
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What happened Shares of top technology growth stocks Snowflake (NYSE: SNOW), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) plunged today, with shares down 5.4%, 6.2%, and 7%, respectively, as of 1:15 p.m. While interest rate hikes affect the shorter end of the yield curve, the Fed unwinding its balance sheet quicker than expected could lead to higher long-term rates if it begins selling longer-dated maturity securities. Well, these companies are best-in-class software names, displaying remarkably high revenue growth amid long-term trends in the big data economy.
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What happened Shares of top technology growth stocks Snowflake (NYSE: SNOW), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) plunged today, with shares down 5.4%, 6.2%, and 7%, respectively, as of 1:15 p.m. Higher long-term interest rates are a headwind to high-growth stocks, leading to the big moves we saw today. While interest rate hikes affect the shorter end of the yield curve, the Fed unwinding its balance sheet quicker than expected could lead to higher long-term rates if it begins selling longer-dated maturity securities.
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What happened Shares of top technology growth stocks Snowflake (NYSE: SNOW), HubSpot (NYSE: HUBS), and Datadog (NASDAQ: DDOG) plunged today, with shares down 5.4%, 6.2%, and 7%, respectively, as of 1:15 p.m. Specifically, Brainard called out the very strong U.S. recovery, which may necessitate a quicker unwinding of the Fed's $9 trillion balance sheet. When the Fed was buying long-term U.S. Treasuries, that extra demand had the effect of holding down long-term rates.
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bf3770d9-e989-46a1-9977-92534ea90062
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718689.0
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2022-04-04 00:00:00 UTC
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My Top 3 Stocks to Buy During the Second Quarter
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DDOG
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https://www.nasdaq.com/articles/my-top-3-stocks-to-buy-during-the-second-quarter
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nan
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nan
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Over the last few quarters, tech investors have watched their investments go nowhere but down. While this may cause some grief (which is perfectly normal), long-term investors should be thinking differently. If you don't need the money for many years down the road, then today's stock prices should be viewed as a sale. As the old investing adage goes, if you like the stock at $100, then you'll love it at $50.
The market is filled with buying opportunities, but the three stocks I have my eye on are Nvidia (NASDAQ: NVDA), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG). All three companies have fallen victim to the market sell-off, but the businesses have multi-year opportunities ahead of them. As an investor, it is vital to understand the difference between stock and business sentiment.
Image source: Getty Images.
Nvidia
Nvidia invented the graphics processing unit (GPU) back in 1999 and revolutionized the computing industry forever. With its supreme processing capabilities, these GPUs can render graphics, power data centers, and solve complex engineering simulations. Nvidia is widely considered the GPU leader, and its products have been used in record-setting DNA sequencing times as well as Meta Platform's AI Research SuperCluster.
For Nvidia's 2022 fiscal year (ended Jan. 30, 2022) the company generated $26.9 billion in revenue, up 61% year over year. It also reported a 36.2% net income margin, showcasing its impressive profitability. With the company projecting 43% revenue growth in its fiscal first quarter, management believes the business still has plenty of room to grow.
But with the stock trading around 69 times trailing earnings, it is by no means cheap. However, the market believes Nvidia's market opportunity is broad, and the company is strategically placed to capture it. The last time Nvidia traded at this earnings multiple was July 2020. Since then, the stock has gained 180%, teaching investors a lesson that valuation isn't everything.
CrowdStrike
In an increasingly digital modern world, cybersecurity has never been more important. CrowdStrike's offering is run through the cloud and protects endpoints (like laptops or phones) from dangerous attacks. With more than 20 modules ranging from threat hunting to attack forensics, CrowdStrike has its customers covered across multiple areas.
Fiscal 2022 (ended Jan. 31, 2022) was a phenomenal year for Crowdstrike with its annual recurring revenue (ARR) increasing 65% to $1.73 billion alongside 65% subscription customer growth from 9,896 to 16,325. The company also converted nearly 30% of revenue into free cash flow during the most recent quarter, showing investors it doesn't need outside funding to sustain its operations.
Image source: Getty Images.
The cybersecurity market is full of competitors and allies. While Crowdstrike competes against upstarts like SentinelOne, it has a significant headstart and has captured 15 of the top 20 banks as well as 254 of the Fortune 500. It also partnered with Cloudflare to ensure device security for anyone accessing services hosted by the latter. Cybersecurity is a huge market, and Crowdstrike is one of the top players.
Datadog
With more and more software making business easier, monitoring how each one is functioning and feeding information to each other has become more difficult. Fortunately, Datadog offers a solution to see how a company's technology stack is functioning at any given time. Furthermore, through artificial intelligence (AI) and programming, Datadog can solve problems before anyone notices there is one.
Datadog's most recent earnings report was impressive for many reasons. First, the company grew its full-year revenue to $1.03 billion, up 70%. What makes this more impressive is the fact fourth-quarter revenue grew even faster at an 84% pace. While many companies enjoyed an initial COVID spending boost with revenue growth then trailing off, Datadog's has accelerated.
Second, the company saw the number of customers with $1 million or more in ARR more than double to 216. With its large customer count rapidly rising and management projecting 69% growth for the latest quarter, Datadog is in a prime position to execute in 2022.
Working with the world's largest cloud infrastructure provider, Amazon Web Services (AWS), provides a huge customer boost for Datadog. The two announced a global partnership during the fourth quarter to work closer together in product development. While this is a strong alliance, it could also be a risk if Amazon decided to cut ties with Datadog. The odds of this happening are slim, but it is something investors should be aware of.
With all three stocks down over 20% from their all-time highs, investors have an opportunity to pick up three leading businesses at a discount. These companies will likely be bigger and more dominant in the next three to five years, and owning the stocks gives you a chance to capitalize on that expansion.
10 stocks we like better than Nvidia
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury owns Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, and Nvidia. The Motley Fool owns and recommends Amazon, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Meta Platforms, Inc., 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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The market is filled with buying opportunities, but the three stocks I have my eye on are Nvidia (NASDAQ: NVDA), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG). Nvidia is widely considered the GPU leader, and its products have been used in record-setting DNA sequencing times as well as Meta Platform's AI Research SuperCluster. Fiscal 2022 (ended Jan. 31, 2022) was a phenomenal year for Crowdstrike with its annual recurring revenue (ARR) increasing 65% to $1.73 billion alongside 65% subscription customer growth from 9,896 to 16,325.
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The market is filled with buying opportunities, but the three stocks I have my eye on are Nvidia (NASDAQ: NVDA), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG). For Nvidia's 2022 fiscal year (ended Jan. 30, 2022) the company generated $26.9 billion in revenue, up 61% year over year. With the company projecting 43% revenue growth in its fiscal first quarter, management believes the business still has plenty of room to grow.
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The market is filled with buying opportunities, but the three stocks I have my eye on are Nvidia (NASDAQ: NVDA), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG). See the 10 stocks *Stock Advisor returns as of March 3, 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 owns and recommends Amazon, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Meta Platforms, Inc., and Nvidia.
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The market is filled with buying opportunities, but the three stocks I have my eye on are Nvidia (NASDAQ: NVDA), CrowdStrike (NASDAQ: CRWD), and Datadog (NASDAQ: DDOG). However, the market believes Nvidia's market opportunity is broad, and the company is strategically placed to capture it. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Nvidia wasn't one of them!
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f12a47b0-e57a-454a-97e6-a339b2282d5c
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718690.0
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2022-03-31 00:00:00 UTC
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Datadog (DDOG) Gains As Market Dips: What You Should Know
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know-0
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nan
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nan
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In the latest trading session, Datadog (DDOG) closed at $151.47, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 9.01% over the past month, lagging the Computer and Technology sector's gain of 4.23% and the S&P 500's gain of 5.37% in that time.
Datadog will be looking to display strength as it nears its next earnings release. In that report, analysts expect Datadog to post earnings of $0.11 per share. This would mark year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $337.3 million, up 69.88% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +2.08% and +48.07%, respectively.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Datadog is currently a Zacks Rank #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 302.68. Its industry sports an average Forward P/E of 47.06, so we one might conclude that Datadog is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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.
The views and 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 $151.47, marking a +1.21% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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In the latest trading session, Datadog (DDOG) closed at $151.47, marking a +1.21% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. In the latest trading session, Datadog (DDOG) closed at $151.47, marking a +1.21% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report
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In the latest trading session, Datadog (DDOG) closed at $151.47, marking a +1.21% move from the previous day. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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2089cfaa-bc6e-44ea-8fd4-9a92c02d8c04
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718691.0
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2022-03-31 00:00:00 UTC
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Datadog (DDOG) Gains Microsoft Partner Status for Azure Cloud
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-gains-microsoft-partner-status-for-azure-cloud
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nan
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nan
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Datadog DDOG recently announced that it has been chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework.
Microsoft Azure is both a cloud computing platform and an online portal, enabling organizations to access and manage cloud services and resources, provided by Microsoft.
Per the Datadog-Microsoft partnership, Datadog will be integrating its monitoring and security capabilities with Azure’s full suite of services, thus helping organizations accelerate their cloud adoption process.
Previously, Datadog had an existing partnership with Microsoft, owing to which Datadog was available as a first-class service in the Azure console. This allowed Azure customers to implement Datadog as a monitoring solution for their cloud workloads.
The partnership also enabled Azure customers to leverage Datadog’s observability platform to drive successful cloud modernization and migration initiatives.
Datadog Rides on Growing Partner Base, Expands User Base
Datadog is steadily benefiting from the increased adoption of cloud-based monitoring and analytics platforms across the globe, resulting from the accelerated digital transformation and cloud migration across organizations.
DDOG witnessed a strong demand environment for its cloud solutions in 2021 and kept innovating at a rapid pace. Revenues in the last reported quarter were $326 million, up 84% year over year.
Earlier this year, Datadog entered into a strategic partnership with Amazon’s AMZN cloud division Amazon Web Services (AWS).
As part of the deal, Datadog and AWS will be developing and delivering a tighter product alignment in the future.
The strategic collaboration opened up a marketing and co-selling program between Amazon and Datadog, bringing new opportunities for consumers worldwide.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Management also announced the extension of DDOG’s strategic partnership with Alphabet’s GOOGL Google Cloud.
Datadog and Google Cloud expanded this relationship from Europe to the Middle East and Africa (EMEA) to North America.
The extended partnership made it easier for organizations to access and implement Datadog’s monitoring and security platform, allowing them to secure and optimize migrated and new workloads.
In August 2021, Datadog announced the launch of Datadog Cloud Security Platform, adding a full-stack security context to its deep observability capabilities. Later last year, DDOG announced its availability on Google Cloud Marketplace, further strengthening its partnership with Google Cloud.
By the end of 2021, Datadog announced its integration with Confluent to provide deep visibility into the health and performance of Confluent Cloud users.
Previously, Confluent customers used its fully managed, cloud-native data streaming service to power the real-time digital experiences, while avoiding the operational burdens of infrastructure management.
The Datadog integration provides customers with real-time visibility into the health and operations of their Confluent resources, ensuring smoother experiences.
DDOG’s focus on growing partnerships increased the visibility of its cloud solutions among consumers, which in turn, contributed to its business growth and drove a robust rise in customers.
In the last reported quarter, steady customer additions boosted the top line. Datadog had more than 18,800 customers at the end of the fourth quarter of 2021, up from 14,200 in the year-ago quarter.
At of the end of the fourth quarter of 2021, 78% of customers used two or more products, up from 72% a year ago. Additionally, 33% of customers utilized four or more products, up from 22% in the year-ago quarter.
In recent times, companies need to embrace digital conversion soon. As a monitoring and security platform for cloud applications, DDOG has a strategic advantage and anticipates witnessing robust growth in the ongoing fiscal year.
For the first quarter of 2022, Datadog anticipates revenues between $334 million and $339 million.
For 2022, Datadog anticipates revenues between $1.51 billion and $1.53 billion.
Currently, Datadog carries a Zacks Rank #3 (Hold).
The stock has surged 71.7% against the Zacks Internet Software industry’s decline of 40.2% and surpassed the Computer and Technology sector’s return of 8.7% in the past year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DDOG’s focus on growing partnerships increased the visibility of its cloud solutions among consumers, which in turn, contributed to its business growth and drove a robust rise in customers. As a monitoring and security platform for cloud applications, DDOG has a strategic advantage and anticipates witnessing robust growth in the ongoing fiscal year. Datadog DDOG recently announced that it has been chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework.
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Datadog DDOG recently announced that it has been chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework. DDOG witnessed a strong demand environment for its cloud solutions in 2021 and kept innovating at a rapid pace. Datadog, Inc. Price and Consensus Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote Management also announced the extension of DDOG’s strategic partnership with Alphabet’s GOOGL Google Cloud.
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Datadog, Inc. Price and Consensus Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote Management also announced the extension of DDOG’s strategic partnership with Alphabet’s GOOGL Google Cloud. Datadog DDOG recently announced that it has been chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework. DDOG witnessed a strong demand environment for its cloud solutions in 2021 and kept innovating at a rapid pace.
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Datadog DDOG recently announced that it has been chosen as a Microsoft MSFT partner within the Azure Cloud Adoption Framework. DDOG witnessed a strong demand environment for its cloud solutions in 2021 and kept innovating at a rapid pace. Datadog, Inc. Price and Consensus Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote Management also announced the extension of DDOG’s strategic partnership with Alphabet’s GOOGL Google Cloud.
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a2017a3b-c73a-4187-a23d-e7bf370266a7
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718692.0
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2022-03-30 00:00:00 UTC
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Notable Wednesday Option Activity: CRWD, DDOG, LL
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DDOG
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-crwd-ddog-ll
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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 CrowdStrike Holdings Inc (Symbol: CRWD), where a total volume of 35,537 contracts has been traded thus far today, a contract volume which is representative of approximately 3.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 55% of CRWD's average daily trading volume over the past month, of 6.5 million shares. Particularly high volume was seen for the $230 strike call option expiring April 01, 2022, with 4,730 contracts trading so far today, representing approximately 473,000 underlying shares of CRWD. Below is a chart showing CRWD's trailing twelve month trading history, with the $230 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) saw options trading volume of 24,213 contracts, representing approximately 2.4 million underlying shares or approximately 54% of DDOG's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $160 strike call option expiring May 20, 2022, with 7,140 contracts trading so far today, representing approximately 714,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $160 strike highlighted in orange:
And LL Flooring Holdings Inc (Symbol: LL) options are showing a volume of 1,162 contracts thus far today. That number of contracts represents approximately 116,200 underlying shares, working out to a sizeable 51.8% of LL's average daily trading volume over the past month, of 224,150 shares. Especially high volume was seen for the $17 strike call option expiring May 20, 2022, with 426 contracts trading so far today, representing approximately 42,600 underlying shares of LL. Below is a chart showing LL's trailing twelve month trading history, with the $17 strike highlighted in orange:
For the various different available expirations for CRWD options, DDOG options, or LL 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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Particularly high volume was seen for the $160 strike call option expiring May 20, 2022, with 7,140 contracts trading so far today, representing approximately 714,000 underlying shares of DDOG. Below is a chart showing CRWD's trailing twelve month trading history, with the $230 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 24,213 contracts, representing approximately 2.4 million underlying shares or approximately 54% of DDOG's average daily trading volume over the past month, of 4.5 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $160 strike highlighted in orange: And LL Flooring Holdings Inc (Symbol: LL) options are showing a volume of 1,162 contracts thus far today.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $230 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 24,213 contracts, representing approximately 2.4 million underlying shares or approximately 54% of DDOG's average daily trading volume over the past month, of 4.5 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $160 strike highlighted in orange: And LL Flooring Holdings Inc (Symbol: LL) options are showing a volume of 1,162 contracts thus far today. Particularly high volume was seen for the $160 strike call option expiring May 20, 2022, with 7,140 contracts trading so far today, representing approximately 714,000 underlying shares of DDOG.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $230 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 24,213 contracts, representing approximately 2.4 million underlying shares or approximately 54% of DDOG's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $160 strike call option expiring May 20, 2022, with 7,140 contracts trading so far today, representing approximately 714,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $160 strike highlighted in orange: And LL Flooring Holdings Inc (Symbol: LL) options are showing a volume of 1,162 contracts thus far today.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $230 strike highlighted in orange: Datadog Inc (Symbol: DDOG) saw options trading volume of 24,213 contracts, representing approximately 2.4 million underlying shares or approximately 54% of DDOG's average daily trading volume over the past month, of 4.5 million shares. Particularly high volume was seen for the $160 strike call option expiring May 20, 2022, with 7,140 contracts trading so far today, representing approximately 714,000 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $160 strike highlighted in orange: And LL Flooring Holdings Inc (Symbol: LL) options are showing a volume of 1,162 contracts thus far today.
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3ecfa90b-f855-4c8d-8456-13fa4abb4ebe
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718693.0
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2022-03-29 00:00:00 UTC
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This Cybersecurity Stock Is Expanding, and It's Exciting
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DDOG
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https://www.nasdaq.com/articles/this-cybersecurity-stock-is-expanding-and-its-exciting
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nan
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nan
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Cybersecurity is a hot investment space, and for good reason. A 2021 Gartner survey indicated that among 61% of executives polled, cybersecurity was the top priority for new spending. The demand bodes well for SentinelOne (NYSE: S), which uses artificial intelligence to hunt for and respond to threats.
The company acquired cloud-native data analytics company Scalyr in 2021 for $155 million and roughly a year later launched DataSet, its data analytics business. This marks SentinelOne's move outside of pure cybersecurity and creates potential new opportunities for the company. Here is what investors need to know.
What is DataSet?
DataSet is an analytics platform that lets businesses aggregate, store, search, and analyze massive amounts of data quickly and easily. Companies create vast amounts of data these days; many software programs must work together to make things "work" inside a business.
Image source: Getty Images.
Computer systems create "logs," coded events that tell a step-by-step account of what's happening. What if something stops working? How do you know if your system is working as efficiently as possible? Answering questions like this can mean looking through billions of logs, trying to find that needle in a haystack.
CEO Tomer Weingarten elaborated on SentinelOne's reasoning for getting into data analytics in a press release announcing the launch of DataSet:
Our enterprise customers have the same data needs as SentinelOne -- the ability to understand and action live data sets at speed. We're announcing DataSet because we believe every business benefits from the power of understanding and acting on its data. Instantaneous, easy to use, and efficient understanding of a data set is the key to making better business decisions.
In other words, SentinelOne said hey, we are good at analyzing data because we needed to be for the artificial intelligence that drives our core product. Why not help others analyze data? The company built DataSet on top of Scalyr, which it acquired last year.
What's the potential?
DataSet is not a completely unique product; it's entering a competitive space where companies like DataDog, Splunk, and Elastic roam. Each company has differences, but there is some overlap. The industry of monitoring system data is often called "observability," which DataDog estimates is worth an estimated $38 billion market today and could grow to $53 billion by 2025.
SentinelOne's management spoke briefly about DataSet on its fiscal 2022 Q4earnings call saying that hundreds of companies already use DataSet, including DoorDash, Copart, Asana, and TomTom. The product just officially launched in February, so investors will likely need to wait at least a year to get a real sense of how much traction DataSet is getting in the market.
SentinelOne's ability to execute and grow DataSet in a competitive market could speak a lot about management's ability to pivot, especially since it recently made another acquisition, buying identity security company Attivo Networks for $616 million in cash and stock.
What to watch
Tech stocks can be a broad yet complex industry. Some true innovators may successfully build out and expand from their core business, growing their addressable market opportunities.
Time will tell if SentinelOne falls into this category, but the potential should be exciting for investors at least. Shareholders will want to see how management communicates progress through customer wins, revenue growth, and whether it decide to break out DataSet as a revenue category at some point in the future.
10 stocks we like better than SentinelOne, 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 SentinelOne, 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 March 3, 2022
Justin Pope owns SentinelOne, Inc. The Motley Fool owns and recommends Asana, Inc., Datadog, DoorDash, Inc., Elastic, and Splunk. 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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DataSet is an analytics platform that lets businesses aggregate, store, search, and analyze massive amounts of data quickly and easily. DataSet is not a completely unique product; it's entering a competitive space where companies like DataDog, Splunk, and Elastic roam. The product just officially launched in February, so investors will likely need to wait at least a year to get a real sense of how much traction DataSet is getting in the market.
|
The company acquired cloud-native data analytics company Scalyr in 2021 for $155 million and roughly a year later launched DataSet, its data analytics business. The industry of monitoring system data is often called "observability," which DataDog estimates is worth an estimated $38 billion market today and could grow to $53 billion by 2025. The Motley Fool owns and recommends Asana, Inc., Datadog, DoorDash, Inc., Elastic, and Splunk.
|
The company acquired cloud-native data analytics company Scalyr in 2021 for $155 million and roughly a year later launched DataSet, its data analytics business. CEO Tomer Weingarten elaborated on SentinelOne's reasoning for getting into data analytics in a press release announcing the launch of DataSet: Our enterprise customers have the same data needs as SentinelOne -- the ability to understand and action live data sets at speed. SentinelOne's ability to execute and grow DataSet in a competitive market could speak a lot about management's ability to pivot, especially since it recently made another acquisition, buying identity security company Attivo Networks for $616 million in cash and stock.
|
The company acquired cloud-native data analytics company Scalyr in 2021 for $155 million and roughly a year later launched DataSet, its data analytics business. What is DataSet? 10 stocks we like better than SentinelOne, Inc.
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475864af-d8fc-4b29-9b31-5506bb0f1f87
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718694.0
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2022-03-25 00:00:00 UTC
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Interesting DDOG Put And Call Options For May 6th
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DDOG
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https://www.nasdaq.com/articles/interesting-ddog-put-and-call-options-for-may-6th
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nan
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nan
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Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the May 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 6th contracts and identified one put and one call contract of particular interest.
The put contract at the $145.00 strike price has a current bid of $10.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $145.00, but will also collect the premium, putting the cost basis of the shares at $134.20 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $148.31/share today.
Because the $145.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.45% return on the cash commitment, or 64.73% 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 $145.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $150.00 strike price has a current bid of $10.95. If an investor was to purchase shares of DDOG stock at the current price level of $148.31/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.52% if the stock gets called away at the May 6th 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 $150.00 strike highlighted in red:
Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.38% boost of extra return to the investor, or 64.16% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 72%, while the implied volatility in the call contract example is 71%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $148.31) to be 59%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the May 6th expiration.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the May 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 6th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the May 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 6th 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 May 6th 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the May 6th expiration.
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3ad0ebd9-f94b-46fd-8fff-45eef53c7165
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718695.0
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2022-03-23 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-0
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nan
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nan
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Datadog (DDOG) closed the most recent trading day at $146.44, moving -1.49% from the previous trading session. This change lagged the S&P 500's daily loss of 1.23%. At the same time, the Dow lost 1.29%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 6.47% over the past month, lagging the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 5.04% in that time.
Datadog will be looking to display strength as it nears its next earnings release. On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%. Our most recent consensus estimate is calling for quarterly revenue of $337.3 million, up 69.88% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. These results would represent year-over-year changes of +2.08% and +48.07%, respectively.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 300.64. This represents a premium compared to its industry's average Forward P/E of 49.93.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog (DDOG) closed the most recent trading day at $146.44, moving -1.49% from the previous trading session. Datadog, Inc. (DDOG): Free Stock Analysis Report
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog (DDOG) closed the most recent trading day at $146.44, moving -1.49% from the previous trading session. Datadog, Inc. (DDOG): Free Stock Analysis Report
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DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog (DDOG) closed the most recent trading day at $146.44, moving -1.49% from the previous trading session. Datadog, Inc. (DDOG): Free Stock Analysis Report
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Datadog (DDOG) closed the most recent trading day at $146.44, moving -1.49% from the previous trading session. DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $1.52 billion. Datadog, Inc. (DDOG): Free Stock Analysis Report
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3e96f443-70e7-4efb-b116-718c369a339c
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718696.0
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2022-03-23 00:00:00 UTC
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The Top 10 Cybersecurity Stocks to Buy Now
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DDOG
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https://www.nasdaq.com/articles/the-top-10-cybersecurity-stocks-to-buy-now
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nan
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nan
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Not many people would dispute the importance of cybersecurity in organizations. Cyberattacks are up over 500% since the start of the COVID-19 pandemic. Cybersecurity is extremely difficult because it is fluid, and cybercriminals are constantly finding new and creative ways to breach systems. In 2021, there were 50% more cybercrimes per week on corporate networks versus 2020. The trend is not slowing down, and I believe cybersecurity stocks are excellent long-term investments.
Examples of cyberattacks include:
Phishing attacks: A form of social engineering designed to trick someone to reveal sensitive information or deploy malicious software such as ransomware or malware.
DDoS attacks: A distributed denial-of-service (DDoS) attack is designed to interrupt normal traffic to a specific server, network, or service, generally by attempting to overwhelm the network by flooding it with traffic.
Cloudflare's (NYSE: NET) mission is to help "build a better internet." Cloudflare is actually a network. In fact, it's one of the larger networks on the planet. Cloudflare enables a faster and more secure internet for anyone with an internet presence. Cloudflare has data centers across the globe, and it boasts an astonishing 25 million internet properties, a number that grows daily. To date, Cloudflare handles over 17% of Fortune 1000 internet requests, and the company handles 25 million HTTP requests every second on average. Cloudflare is the world's best DDoS mitigation platform, and it helps prevent the DDoS attacks mentioned above.
CrowdStrike (NASDAQ: CRWD) is the leader in endpoint security. CrowdStrike's Falcon platform stops breaches through both prevention and response. It uses agent-based sensors that can be installed on Mac, Linux, and Windows. CrowdStrike relies on a cloud-hosted SaaS platform that manages data and prevents, detects, and responds to threats. Both malware and non-malware attacks are covered via CrowdStrike's cloud-delivered technologies in a lightweight solution. CrowdStrike recently added extended detection and response (XDR) to its arsenal, which consolidates threat visibility, provides hassle-free detections and investigation, and provides end-to-end orchestration and response. CrowdStrike is best-of-breed for endpoint security and response, and it deserves a spot on the top 10 list of cybersecurity stocks.
Companies spend billions of dollars annually protecting data from breaches and phishing schemes. With that said, cybersecurity awareness training generally does not come to mind as an important piece of the solution. I find this odd, especially since 95% of all breaches are made possible due to human error. KnowBe4 (NASDAQ: KNBE), a security awareness training company that simulates phishing attacks to educate employees and prevent social engineering cybercrime, can help solve this problem. KnowBe4 is an extremely scalable solution that focuses on an underpenetrated market within the cybersecurity universe, the human layer. The company leverages machine learning and artificial intelligence to create automated training campaigns with detailed reporting and analytics for decision makers.
In the video below, I break down the cybersecurity ecosystem and provide seven additional stock picks.
*Stock prices used in the below video were during the trading day of March 22, 2022. The video was published on March 22, 2022.
10 stocks we like better than Cloudflare, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Cloudflare, 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 March 3, 2022
Eric Cuka owns Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, KnowBe4, Inc., Microsoft, Palantir Technologies Inc., SentinelOne, Inc., WisdomTree Trust-WisdomTree Cybersecurity Fund, and Zscaler. The Motley Fool owns and recommends Activision Blizzard, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Microsoft, Palantir Technologies Inc., Palo Alto Networks, and Zscaler. The Motley Fool recommends Broadcom Ltd and Fortinet. The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Examples of cyberattacks include: Phishing attacks: A form of social engineering designed to trick someone to reveal sensitive information or deploy malicious software such as ransomware or malware. KnowBe4 (NASDAQ: KNBE), a security awareness training company that simulates phishing attacks to educate employees and prevent social engineering cybercrime, can help solve this problem. The Motley Fool owns and recommends Activision Blizzard, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Microsoft, Palantir Technologies Inc., Palo Alto Networks, and Zscaler.
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To date, Cloudflare handles over 17% of Fortune 1000 internet requests, and the company handles 25 million HTTP requests every second on average. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Eric Cuka owns Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, KnowBe4, Inc., Microsoft, Palantir Technologies Inc., SentinelOne, Inc., WisdomTree Trust-WisdomTree Cybersecurity Fund, and Zscaler. The Motley Fool owns and recommends Activision Blizzard, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Microsoft, Palantir Technologies Inc., Palo Alto Networks, and Zscaler.
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DDoS attacks: A distributed denial-of-service (DDoS) attack is designed to interrupt normal traffic to a specific server, network, or service, generally by attempting to overwhelm the network by flooding it with traffic. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Eric Cuka owns Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, KnowBe4, Inc., Microsoft, Palantir Technologies Inc., SentinelOne, Inc., WisdomTree Trust-WisdomTree Cybersecurity Fund, and Zscaler. The Motley Fool owns and recommends Activision Blizzard, Cloudflare, Inc., CrowdStrike Holdings, Inc., Datadog, Microsoft, Palantir Technologies Inc., Palo Alto Networks, and Zscaler.
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Cloudflare is actually a network. KnowBe4 (NASDAQ: KNBE), a security awareness training company that simulates phishing attacks to educate employees and prevent social engineering cybercrime, can help solve this problem. 10 stocks we like better than Cloudflare, Inc.
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b7fd6eaf-b96a-4e0b-9558-709dcf365a6c
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718697.0
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2022-03-22 00:00:00 UTC
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Why Datadog Stock Ran Higher on Tuesday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-ran-higher-on-tuesday
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nan
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nan
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What happened
Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 8.4%. As of 2:12 p.m. ET, the stock was still up 6%.
The catalyst that sent the cloud monitoring and security company higher was an optimistic take by a Wall Street analyst who initiated coverage on the stock.
So what
BTIG analyst Gray Powell initiated coverage on Datadog stock, issuing a buy rating and assigning a price target of $175, according to The Fly. That suggests potential upside for investors of roughly 25% over the coming year compared to Monday's closing price.
Image source: Getty Images.
Powell believes Datadog's cloud-based data monitoring and security services will benefit from the ongoing trends in the observability market over the next several years. The digital transformation continues with many companies taking their first steps toward the cloud. He sees Datadog as a logical beneficiary of these investments and believes the company is "winning across multiple product categories."
After reviewing the competition, Powell views Datadog as the most innovative provider out there. He also suggests that the company has significant potential to continue its expansion into ancillary services, with additional cybersecurity offerings providing the most potential.
Powell went a step further, saying he is "very confident" in both the short- and long-term outlook for Datadog stock.
Now what
The analyst may be on to something. Datadog was cited as a leader by Gartner's Magic Quadrant for Application Performance Monitoring. Gartner cited Datadog's new product deployments, which include "infrastructure monitoring, log analysis solution, network monitoring, [digital experience monitoring] and, most recently, a security analysis tool."
Datadog closed out 2021 with fourth-quarter revenue that grew 84% year over year. The results were driven by customers with $100,000 or more in annual recurring revenue (ARR), which jumped 63%, while those with $1 million or more surged 114%.
Given the industry accolades, its continued strong growth, and its expanding addressable market, investors should consider taking Datadog for a walk.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
Danny Vena owns Datadog. The Motley Fool owns 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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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 8.4%. The catalyst that sent the cloud monitoring and security company higher was an optimistic take by a Wall Street analyst who initiated coverage on the stock. So what BTIG analyst Gray Powell initiated coverage on Datadog stock, issuing a buy rating and assigning a price target of $175, according to The Fly.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 8.4%. So what BTIG analyst Gray Powell initiated coverage on Datadog stock, issuing a buy rating and assigning a price target of $175, according to The Fly. Powell believes Datadog's cloud-based data monitoring and security services will benefit from the ongoing trends in the observability market over the next several years.
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What happened Shares of Datadog (NASDAQ: DDOG) charged sharply higher Tuesday, surging as much as 8.4%. So what BTIG analyst Gray Powell initiated coverage on Datadog stock, issuing a buy rating and assigning a price target of $175, according to The Fly. 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 Tuesday, surging as much as 8.4%. ET, the stock was still up 6%. The catalyst that sent the cloud monitoring and security company higher was an optimistic take by a Wall Street analyst who initiated coverage on the stock.
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96528cc7-ca38-40f6-a1f1-4cdab808174f
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718698.0
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2022-03-21 00:00:00 UTC
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How to Build a Stock Portfolio for Beginners -- Why I Bought SentinelOne
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DDOG
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https://www.nasdaq.com/articles/how-to-build-a-stock-portfolio-for-beginners-why-i-bought-sentinelone
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nan
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nan
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Today, I am providing an update to my video series on how to build a growth stock portfolio from scratch. This series is focused on investing for beginners, but investors of all backgrounds will enjoy this content. The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing.
In the previous video, I started a new portfolio using the following allocations:
60% growth stocks
20% ETFs as a core
10% dividend stocks
10% speculative stocks
I have added a new position to the portfolio, and the video below explains why I bought SentinelOne (NYSE: S). SentinelOne was founded in 2013 and delivers autonomous endpoint cybersecurity solutions. SentinelOne's Singularity Endpoint Security Platform includes prevention, detection, response, remediation, and forensics on a single platform powered by artificial intelligence. The company's AI is powered by XDR, which stands for "extended detection and response." XDR is essentially a next-generation approach to threat detection and response, enabling higher visibility, protection, and efficiency. XDR technology allows organizations to collect and correlate data across networks, cloud workloads, emails, servers, endpoints, and more.
The below video also shares the entire portfolio, including all current positions, the cost basis for each stock, and the percentage gains. Please watch the video for more information, and don't forget to subscribe and click the bell to receive notifications so you don't miss any future videos in the series.
*Stock prices used in the below video were during the trading day of March 18, 2022. The video was published on March 18, 2022.
10 stocks we like better than SentinelOne, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and SentinelOne, Inc. 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 March 3, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka owns Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool owns and recommends Alphabet (A shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Alphabet (C shares) and Marvell Technology Group 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. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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XDR is essentially a next-generation approach to threat detection and response, enabling higher visibility, protection, and efficiency. The below video also shares the entire portfolio, including all current positions, the cost basis for each stock, and the percentage gains. Eric Cuka owns Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc.
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Eric Cuka owns Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool owns and recommends Alphabet (A shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Alphabet (C shares) and Marvell Technology Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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In the previous video, I started a new portfolio using the following allocations: 60% growth stocks 20% ETFs as a core 10% dividend stocks 10% speculative stocks I have added a new position to the portfolio, and the video below explains why I bought SentinelOne (NYSE: S). See the 10 stocks *Stock Advisor returns as of March 3, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka owns Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc.
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In the previous video, I started a new portfolio using the following allocations: 60% growth stocks 20% ETFs as a core 10% dividend stocks 10% speculative stocks I have added a new position to the portfolio, and the video below explains why I bought SentinelOne (NYSE: S). 10 stocks we like better than SentinelOne, Inc. His opinions remain his own and are unaffected by The Motley Fool.
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aaee3efb-2e48-4724-8bc1-b532e1c531ef
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718699.0
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2022-03-18 00:00:00 UTC
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Why Datadog Stock Popped on Friday
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DDOG
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https://www.nasdaq.com/articles/why-datadog-stock-popped-on-friday
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nan
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nan
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What happened
Shares of cloud monitoring and cybersecurity company Datadog (NASDAQ: DDOG) jumped more than 7% in early trading on Friday. As of 3 p.m. ET, the stock was still hanging onto most of those gains, and up about 4.7%.
That's actually surprising, though, considering what just happened to Datadog.
Image source: Getty Images.
So what
I'm referring to SMBC Nikko Securities' (that's a subsidiary of Japan's Sumitomo Mitsui Financial Group, by the way) decision to initiate coverage of Datadog today with only a neutral rating and a $136 price target that implies Datadog's stock price will go down, not up, over the next 12 months.
As SMBC explained in today's note covered on StreetInsider.com, "DDOG has a favorable market position as a key enabler of cloud DevOps and workload migrations, a winning platform strategy, strong execution capabilities, and attractive unit economics."
So far, so good. But here's the problem, in SMBC's opinion, "On the flip side, its valuation makes it especially vulnerable to any market correction or unexpected loss of momentum, its market capitalization is relatively large compared to its [total addressable market,] its top line is likely to decelerate meaningfully starting in 2Q22/ June, and unforced sales employee turnover has increased significantly."
Now what
Now let's break that down a bit. As regards valuation, Datadog costs about $47.6 billion in total -- about 43 times sales -- and the company is not profitable as defined by generally accepted accounting principles (GAAP). The company does generate substantial positive free cash flow, about $276.5 million last year. But even so, that works out to a price-to-free cash flow ratio of 172 on the stock -- which seems quite expensive.
The argument in favor of Datadog stock, of course, is that its valuation multiple will come down quickly if Datadog grows its revenue and free cash flow (FCF) as fast as analysts predict. Sales are expected to grow about five times in size from 2022 through 2026, and FCF about four times. But that just serves to illustrate SMBC's point.
If Datadog suffers any "unexpected loss of momentum," or even if the market simply falls out of love with growth stocks and causes a market correction, Datadog's stock price will surely decline. For this reason, SMBC can't quite bring itself to recommend the stock despite its positives.
Neither can I.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns 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 monitoring and cybersecurity company Datadog (NASDAQ: DDOG) jumped more than 7% in early trading on Friday. As SMBC explained in today's note covered on StreetInsider.com, "DDOG has a favorable market position as a key enabler of cloud DevOps and workload migrations, a winning platform strategy, strong execution capabilities, and attractive unit economics." As regards valuation, Datadog costs about $47.6 billion in total -- about 43 times sales -- and the company is not profitable as defined by generally accepted accounting principles (GAAP).
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What happened Shares of cloud monitoring and cybersecurity company Datadog (NASDAQ: DDOG) jumped more than 7% in early trading on Friday. As SMBC explained in today's note covered on StreetInsider.com, "DDOG has a favorable market position as a key enabler of cloud DevOps and workload migrations, a winning platform strategy, strong execution capabilities, and attractive unit economics." But here's the problem, in SMBC's opinion, "On the flip side, its valuation makes it especially vulnerable to any market correction or unexpected loss of momentum, its market capitalization is relatively large compared to its [total addressable market,] its top line is likely to decelerate meaningfully starting in 2Q22/ June, and unforced sales employee turnover has increased significantly."
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What happened Shares of cloud monitoring and cybersecurity company Datadog (NASDAQ: DDOG) jumped more than 7% in early trading on Friday. As SMBC explained in today's note covered on StreetInsider.com, "DDOG has a favorable market position as a key enabler of cloud DevOps and workload migrations, a winning platform strategy, strong execution capabilities, and attractive unit economics." The argument in favor of Datadog stock, of course, is that its valuation multiple will come down quickly if Datadog grows its revenue and free cash flow (FCF) as fast as analysts predict.
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What happened Shares of cloud monitoring and cybersecurity company Datadog (NASDAQ: DDOG) jumped more than 7% in early trading on Friday. As SMBC explained in today's note covered on StreetInsider.com, "DDOG has a favorable market position as a key enabler of cloud DevOps and workload migrations, a winning platform strategy, strong execution capabilities, and attractive unit economics." The argument in favor of Datadog stock, of course, is that its valuation multiple will come down quickly if Datadog grows its revenue and free cash flow (FCF) as fast as analysts predict.
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2d606e9f-8790-41a3-82ca-764a8dd39a26
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