Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
| uuid
stringlengths 36
36
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
718700.0
|
2022-03-17 00:00:00 UTC
|
Palantir Investors Should Shift Into Neutral Until Growth Picks Up
|
DDOG
|
https://www.nasdaq.com/articles/palantir-investors-should-shift-into-neutral-until-growth-picks-up
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Palantir (NYSE:PLTR) is among the stocks that have failed to deliver on their potential. Following its Wall Street debut through direct listing in September 2020, the stock quickly went on to become a darling among retail investors.
Source: Michael Vi / Shutterstock.com
The interest in Palantir stock gradually waned. After scaling an all-time high of $45 on Jan. 27, 2021, the stock came all the way back down to sub-$10 levels amid the Ukraine-induced sell-off. It is now trading almost flat with its debut session’s price.
In an era when data is king, why is PLTR stock unable to capitalize on the promising opportunity? What would take the stock to break free of the lackluster phase and launch into a rally?
How Palantir Makes Money
Founded in 2003, Palantir originally set out to provide data analytics to defense agencies, intelligence agencies and governments to help them in matters of natural security, surveillance and other things. It has now broadened its business scope to include corporations.
In fiscal-year 2021, the company derived 58% of its revenue from the government segment, while 42% came from commercial customers.
7 Sports Betting Stocks to Buy as March Madness Tips Off
The company has three main software platforms, namely Gotham, Foundry and Apollo. Gotham helps users to identify patterns from datasets, which in turn facilitates planning and execution of real-world responses to threats. Foundry is meant to create a central operating system for data belonging to companies. This allows them to integrate and analyze data in one place. Apollo is a platform meant to securely deliver software and updates across the company’s businesses.
Palantir sells its platform under a subscription model, and therefore revenue primarily comes from subscription. The company follows this an interesting practice of investing in early- and growth-stage companies, generally SPACs, in return for agreements to subscribe to its platforms.
This Peter Thiel-backed company also invests in gold. The 10-K report for the fiscal year ending Dec. 31, 2021 showed that the company amassed $50.9 million worth of 100-ounce gold bars, which will be stashed away in a third-party facility situated in northeastern U.S.
Why Q4 Results Didn’t Help PLTR Stock?
Denver, Colorado-based Palantir reported in mid-February fourth-quarter revenue of $433 million, up 34% year-over-year. The topline exceeded the consensus estimate of $418 million.
Source: Chart by Shanthi Rexaline
Gross margin expanded 1.7 percentage points to 79.8% in the fourth quarter. The operating loss narrowed, thanks to the topline growth and a less than 1% decline in total operating expenses.
Sales & marketing accounted for roughly 40.2% of the total operating expenses, general and administrative expenses made up 40% and R&D roughly 20.8%. Interest expenses as opposed to interest income a year ago and higher provisioning for income taxes resulted in a flat loss per share on a GAAP basis despite the better operating leverage.
Non-GAAP earnings per share came in at 2 cents, half as much as analysts had hoped for.
Palantir guided to first-quarter revenue of $443 million, which was higher than the then-consensus estimate of $439 million. The company also reiterated its long-term revenue goal of 30% or greater growth through 2025.
Apparently, investors are getting impatient with Palantir over its inability to transfer the gains on the topline all the way down to its bottom line.
How Is PLTR Stock Positioned Near Term
Palantir’s co-founder and CEO Alex Karp suggested on the fourth-quarterearnings callthat the growth achieved thus far has come despite the scarce salesforce. Net dollar retention – the measure of how a software-as-a-service (SaaS) company’s recurring revenue has swelled or declined for a particular period – was at a robust 131%.
Karp sees scope for further improvement from hiring additional sales people. The company is looking to add around 200 more people to its sales team. Although operating expenses will likely balloon, the initiative will likely bring in incremental revenue. It remains to be seen if revenue can grow enough to keep the operating margin stable.
There are skeptics as well. Excluding contribution from strategic investments, topline growth decelerated, and government revenue growth continues to head southward, Citigroup analyst Tyler Radke said in a note reviewing fourth-quarter earnings.
Palantir’s CEO, however, dismissed concerns over the marked slowdown in government revenue growth. “What you see in U.S. gov is a compounded growth of 30%, but like this which is the positive of U.S. gov is it’s reliable. The sums are big. The quality of the revenue is very high,” Karp said.
The company said it closed 64 deals, valued at $1 million or more in the fourth quarter.
Bottom Line On Palantir Stock
Palantir cannot be shrugged off as a phony company lacking a sound business model. Skeptics, however, may want to see evidence of accelerating organic revenue growth, margin expansion and continued execution.
Piper Sandler analyst Weston Twigg, meanwhile, expects reacceleration in government revenues, premised on increased adoptions by the U.S. and other nations amid the Ukraine war.
PLTR stock, which is off about 68% from its peak, is currently trading at a trailing-twelve-month Price/Sales ratio of 14.31 times. The valuation seems fairly reasonable or even a little depressed compared to the 35+ multiple it once boasted in September 2021. In comparison, the company’s SaaS peer Datadog (NASDAQ:DDOG) sports a heady multiple of 48.5 times.
The average analysts’ price target for PLTR stock, according to data compiled by TipRanks, is $13.75, suggesting roughly 23% upside from current levels.
Given the general pessimism toward the tech space amid the ongoing macroeconomic concerns and geopolitical tensions, and the prevalence of company-specific risks, I recommend taking a hold stance on the stock. If Palantir shows progress with its organic revenue growth and demonstrates a clear path toward profitability, it could be time for revisiting the thesis.
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 Palantir Investors Should Shift Into Neutral Until Growth Picks Up 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.
|
In comparison, the company’s SaaS peer Datadog (NASDAQ:DDOG) sports a heady multiple of 48.5 times. The 10-K report for the fiscal year ending Dec. 31, 2021 showed that the company amassed $50.9 million worth of 100-ounce gold bars, which will be stashed away in a third-party facility situated in northeastern U.S. Why Q4 Results Didn’t Help PLTR Stock? How Is PLTR Stock Positioned Near Term Palantir’s co-founder and CEO Alex Karp suggested on the fourth-quarterearnings callthat the growth achieved thus far has come despite the scarce salesforce.
|
In comparison, the company’s SaaS peer Datadog (NASDAQ:DDOG) sports a heady multiple of 48.5 times. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Palantir (NYSE:PLTR) is among the stocks that have failed to deliver on their potential. Interest expenses as opposed to interest income a year ago and higher provisioning for income taxes resulted in a flat loss per share on a GAAP basis despite the better operating leverage.
|
In comparison, the company’s SaaS peer Datadog (NASDAQ:DDOG) sports a heady multiple of 48.5 times. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Palantir (NYSE:PLTR) is among the stocks that have failed to deliver on their potential. Excluding contribution from strategic investments, topline growth decelerated, and government revenue growth continues to head southward, Citigroup analyst Tyler Radke said in a note reviewing fourth-quarter earnings.
|
In comparison, the company’s SaaS peer Datadog (NASDAQ:DDOG) sports a heady multiple of 48.5 times. The operating loss narrowed, thanks to the topline growth and a less than 1% decline in total operating expenses. Skeptics, however, may want to see evidence of accelerating organic revenue growth, margin expansion and continued execution.
|
d99b0a6f-c63a-487f-8f75-f268705de9d6
|
718701.0
|
2022-03-15 00:00:00 UTC
|
Datadog (DDOG) Gains But Lags Market: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-gains-but-lags-market%3A-what-you-should-know-0
|
nan
|
nan
|
Datadog (DDOG) closed the most recent trading day at $120.94, moving +1.84% from the previous trading session. This move lagged the S&P 500's daily gain of 2.14%. Meanwhile, the Dow gained 1.82%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 27.74% over the past month, lagging the Computer and Technology sector's loss of 10.13% and the S&P 500's loss of 5.01% 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, our latest consensus estimate is calling for revenue of $337.3 million, up 69.88% from the prior-year quarter.
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 might also notice recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 240.19. This represents a premium compared to its industry's average Forward P/E of 40.59.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
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 $120.94, moving +1.84% from the previous trading session. Datadog, Inc. (DDOG): Free Stock Analysis Report
|
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 $120.94, moving +1.84% from the previous trading session. Datadog, Inc. (DDOG): Free Stock Analysis Report
|
Datadog (DDOG) closed the most recent trading day at $120.94, moving +1.84% 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
|
Datadog (DDOG) closed the most recent trading day at $120.94, moving +1.84% 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
|
a0f10480-0b42-460d-a783-41d484070bb7
|
718702.0
|
2022-03-15 00:00:00 UTC
|
3 Stocks Down by 40% to 76% That Could Turn $200,000 Into $1 Million by 2032
|
DDOG
|
https://www.nasdaq.com/articles/3-stocks-down-by-40-to-76-that-could-turn-%24200000-into-%241-million-by-2032
|
nan
|
nan
|
Buying stocks that have fallen drastically from their peaks is occasionally compared to trying to catch a falling knife: You could get hurt very easily. Oftentimes, these companies are falling for justifiable reasons -- perhaps their growth is slowing or a competitor just ate their lunch. In 2022, however, it seems there are several companies that are thriving but are still experiencing steep share price declines.
Block (NYSE: SQ), Datadog (NASDAQ: DDOG), and Coupang (NYSE: CPNG) all match this description and all are established leaders in their particular spaces. Each has a pattern of success, and if they maintain their dominance, their stock prices should bounce back. As such, today's discounted stock prices seem to present optimal buying opportunities. Your future self might thank you in 10 years for buying these three stocks that each have five-fold growth potential.
Image source: Getty Images.
1. Block
Block is down by more than 67% from its all-time high, even after reporting stellar fourth-quarter earnings late last month. The company formerly known as Square is a leader in the fintech space, specifically in the business space, where it has seen major growth. Gross payment volume (GPV) with its sellers totaled $42.6 billion in Q4, driven higher in large part by customers with $500,000 or more in annual GPV. GPV for that customer cohort jumped 78% year over year in Q4. Where the company really shined was in maintaining and expanding its relationships with customers. In the quarter, 38% of its gross profit came from sellers using four or more Block products in 2021, showing how loyal and tethered sellers are to the platform.
The total revenue for Block reached $4.08 billion in Q4, growing 29% year over year. The company lost $77 million in the quarter, but for the year, it turned a profit of $166 million. Additionally, it's pumping out cash: Its free cash flow for the year was $713.5 million -- up from just $35 million in 2020.
This cash flow supplements Block's already-large cash position of $4.4 billion, and the company is looking to invest it in a few areas. First, Block wants to expand internationally. The non-domestic market accounted for just 5% of its gross profit in Q4 2018, but now it represents 9% and looks like a major opportunity for the company over the next decade. Second, the company is moving away from its reliance on transactions and instead is focusing on subscription solutions. Revenue from subscriptions grew 72% to $772 million in Q4, showing that this shift is going well.
Block trades at just 3 times sales -- lower than the P/S multiple of around 5 sported by its primary competitor, PayPal Holdings, despite having stronger business diversification and great success in the seller space. From this low valuation, the stock has the potential to rebound and flourish, which could result in a five-fold return, if not more, over the next decade.
2. Datadog
Datadog's platform, which helps businesses make sure their cloud infrastructure is running smoothly and securely, saw continued adoption last year. The number of customers spending over $1 million annually with the company soared by 114% year over year to 216 in Q4. Management noted that its gross dollar retention percentage was in the mid to high 90s, meaning that its customer churn was likely 5% or less in the quarter.
Additionally, Datadog's net retention rate was above 130% in Q4 -- its 18th consecutive quarter during which that metric was above 130% -- meaning that customers who have been with the company for at least a year are spending an average of over 30% more now than they were in the year-ago period, including churn. This low turnover and increased spending show that not only are infrastructure observability and performance monitoring becoming viewed as need-to-haves by businesses but also that Datadog's products are the best on the market.
The company is capitalizing on a large (and growing) market opportunity. Management believes its industry will be worth $53 billion by 2025. With its competitive position, as well as over $250 million in 2021 free cash flow to invest in developing new products, Datadog looks well-positioned. Its shares trade down 40% from 52-week highs but its valuation is still high at 38 times sales, but if the company can continue growing as it has been, those shares will be worth paying up for.
3. Coupang
Coupang's e-commerce dominance in South Korea is impressive; its nearly 18 million active customers in Q4 represented 35% of South Korean citizens. Its revenue grew 54% year over year to $18.4 billion in 2021, so it is safe to say that Coupang has a strong grip on the online retail space in the country.
The downside with Coupang -- and perhaps the reason why the stock has fallen by more than 76% from its all-time high -- is that it's burning cash as it invests heavily in the infrastructure that allows it to rapidly deliver goods. For the year, its free cash flow burn was over $1 billion while its net loss topped $1.5 billion.
Considering the degree of its market saturation in South Korea, for Coupang's stock price to rise five-fold over the next decade, it will likely have to succeed in other countries such as Japan or Singapore. The South Korean e-commerce industry is expected to grow at a compound annual rate of 11% until 2025, but that alone is unlikely to produce multibagger returns for this company over the coming decade. If Coupang can keep its same-day and next-day delivery consistent across country borders, it could see major success. Its stock is trading at just 1.4 times sales, so not a whole lot of growth is priced into the stock. If it does achieve more than the market currently anticipates, its share price could explode.
10 stocks we like better than Block, 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 Block, 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
Jamie Louko owns Block, Inc., Datadog, and PayPal Holdings. The Motley Fool owns and recommends Block, Inc., Coupang, Inc., Datadog, and PayPal Holdings. 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.
|
Block (NYSE: SQ), Datadog (NASDAQ: DDOG), and Coupang (NYSE: CPNG) all match this description and all are established leaders in their particular spaces. Block trades at just 3 times sales -- lower than the P/S multiple of around 5 sported by its primary competitor, PayPal Holdings, despite having stronger business diversification and great success in the seller space. Additionally, Datadog's net retention rate was above 130% in Q4 -- its 18th consecutive quarter during which that metric was above 130% -- meaning that customers who have been with the company for at least a year are spending an average of over 30% more now than they were in the year-ago period, including churn.
|
Block (NYSE: SQ), Datadog (NASDAQ: DDOG), and Coupang (NYSE: CPNG) all match this description and all are established leaders in their particular spaces. Additionally, Datadog's net retention rate was above 130% in Q4 -- its 18th consecutive quarter during which that metric was above 130% -- meaning that customers who have been with the company for at least a year are spending an average of over 30% more now than they were in the year-ago period, including churn. Coupang Coupang's e-commerce dominance in South Korea is impressive; its nearly 18 million active customers in Q4 represented 35% of South Korean citizens.
|
Block (NYSE: SQ), Datadog (NASDAQ: DDOG), and Coupang (NYSE: CPNG) all match this description and all are established leaders in their particular spaces. The total revenue for Block reached $4.08 billion in Q4, growing 29% year over year. The number of customers spending over $1 million annually with the company soared by 114% year over year to 216 in Q4.
|
Block (NYSE: SQ), Datadog (NASDAQ: DDOG), and Coupang (NYSE: CPNG) all match this description and all are established leaders in their particular spaces. Its shares trade down 40% from 52-week highs but its valuation is still high at 38 times sales, but if the company can continue growing as it has been, those shares will be worth paying up for. Considering the degree of its market saturation in South Korea, for Coupang's stock price to rise five-fold over the next decade, it will likely have to succeed in other countries such as Japan or Singapore.
|
e721152c-dc7a-41b5-9bed-ca5d4db2f1b4
|
718703.0
|
2022-03-14 00:00:00 UTC
|
Why Shopify, Doximity, and Datadog Stock Fell Today
|
DDOG
|
https://www.nasdaq.com/articles/why-shopify-doximity-and-datadog-stock-fell-today
|
nan
|
nan
|
What happened
The share prices of Shopify (NYSE: SHOP), Doximity (NYSE: DOCS), and Datadog (NASDAQ: DDOG) were all falling today, along with many other tech stocks, as investors expect the Federal Reserve to hike interest rates when it meets later this week.
Shopify was down 4.4%, Doximity had plummeted 12.8%, and Datadog had tumbled 6.8% as of 2:57 p.m. ET.
So what
The market has been especially volatile as of late as investors process a lot of news, but investors have had their eye on the Fed's upcoming interest rate hike for some time and their concerns appear to be manifesting by selling shares of growth stocks today.
Image source: Getty Images.
The Fed will hold a two-day meeting this week in which it's expected to announce a quarter-percentage-point interest rate increase.
When interest rates are higher the cost of borrowing increases. For high-growth companies like Shopify, Doximity, and Datadog this can mean that the cost of investing in new products or expanding its business could be more expensive. It also means that future cash the company generates will be worth less than it would be if interest rates were lower.
Investors are concerned that high-growth companies -- many of which are in the tech sector -- could experience a slowdown as interest rates rise.
Additionally, the Fed is expected to shed some light on its economic outlook and give a potential forecast for future rate hikes and inflation this week. As recently as a month ago the Federal Reserve's plan for helping to tamp down inflation -- which is at a 40-year high -- seemed to be clearer, but the war in Ukraine has clouded the outlook.
Investors are now left wondering how the Fed will handle rising inflation and economic uncertainty caused by the conflict in Europe.
If all of that weren't enough, the share prices of several big tech companies fell today after China said that it would impose new COVD-19 lockdown measures for millions of people. The new restrictions could make some supply chain disruptions even worse than they are now.
As investors fled tech stocks today the 10-year Treasury yield rose to 2.1% -- its highest level in nearly two years.
Now what
There's no getting around the fact that the past six months have been a trying time for investors. The S&P 500 is down nearly 7% since then and the tech-heavy Nasdaq Composite has fallen more than 16%. With so much uncertainty in these broad-based indexes, it's understandable that some investors are wondering what to do with their investments.
But while these losses sting in the short term, investors should keep in mind that exiting the market when things are going poorly is the best way to lock in your losses.
Instead of panic-selling, Shopify, Doximity, and Datadog investors should revisit their original investing thesis for these stocks. If nothing has fundamentally changed with these companies, then the best course of action is likely to hold onto your shares and wait out the volatility.
Find out why Shopify is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of March 3, 2022
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns and recommends Datadog, Doximity, Inc., 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.
|
What happened The share prices of Shopify (NYSE: SHOP), Doximity (NYSE: DOCS), and Datadog (NASDAQ: DDOG) were all falling today, along with many other tech stocks, as investors expect the Federal Reserve to hike interest rates when it meets later this week. Additionally, the Fed is expected to shed some light on its economic outlook and give a potential forecast for future rate hikes and inflation this week. As recently as a month ago the Federal Reserve's plan for helping to tamp down inflation -- which is at a 40-year high -- seemed to be clearer, but the war in Ukraine has clouded the outlook.
|
What happened The share prices of Shopify (NYSE: SHOP), Doximity (NYSE: DOCS), and Datadog (NASDAQ: DDOG) were all falling today, along with many other tech stocks, as investors expect the Federal Reserve to hike interest rates when it meets later this week. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
|
What happened The share prices of Shopify (NYSE: SHOP), Doximity (NYSE: DOCS), and Datadog (NASDAQ: DDOG) were all falling today, along with many other tech stocks, as investors expect the Federal Reserve to hike interest rates when it meets later this week. So what The market has been especially volatile as of late as investors process a lot of news, but investors have had their eye on the Fed's upcoming interest rate hike for some time and their concerns appear to be manifesting by selling shares of growth stocks today. Instead of panic-selling, Shopify, Doximity, and Datadog investors should revisit their original investing thesis for these stocks.
|
What happened The share prices of Shopify (NYSE: SHOP), Doximity (NYSE: DOCS), and Datadog (NASDAQ: DDOG) were all falling today, along with many other tech stocks, as investors expect the Federal Reserve to hike interest rates when it meets later this week. 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 Datadog, Doximity, Inc., and Shopify.
|
320a4cf2-ccf1-4788-899b-7d8f605adf77
|
718704.0
|
2022-03-14 00:00:00 UTC
|
3 Beaten-Down Growth Stocks to Buy Now and Hold for the Next Decade
|
DDOG
|
https://www.nasdaq.com/articles/3-beaten-down-growth-stocks-to-buy-now-and-hold-for-the-next-decade
|
nan
|
nan
|
Global stock markets are suffering through a period of uncertainty that kicked off in November 2021. A mixture of high inflation, rising interest rates, and geopolitical tensions across Europe has suppressed investors' appetite for risk, sending the Nasdaq 100 technology index 20% lower, and into a technical bear market.
But it's not all bad news. For patient investors, the recent sell-off could mark a long-term buying opportunity. Three Motley Fool contributors think Workiva (NYSE: WK), Datadog (NASDAQ: DDOG), and Block (NYSE: SQ) are great candidates to buy after their steep declines in stock price. Here's why.
Image source: Getty Images.
A data unification powerhouse
Anthony Di Pizio (Workiva): Setting the steep 41% decline in its stock price aside, Workiva continues to deliver strong operational results for investors. The company's data unification platform is playing a key role in the digital economy, where more organizations are embracing remote work and require innovative tools to maintain smooth workflows.
Workiva focuses on aggregating data across dozens of different applications. Whether a team is working in Microsoft Office or Alphabet's Google Cloud, Workiva pulls the data to one central location, providing management with greater visibility over employees who might be in entirely different locations. One use case for this tool is compiling regulatory filings, and Workiva currently supports over 350 Securities and Exchange Commission forms, making it a no-brainer tool for public companies. It's primarily why eight out of the world's 10 largest banks are using it.
But the company has also recently made investments in its environmental, social, and governance (ESG) reporting capabilities, as more organizations are demanding tools to help them track their sustainability initiatives.
Naturally, Workiva becomes more useful among larger workforces, which is why the company is experiencing the fastest growth among its highest-spending customers. In 2021, the portion of Workiva's customer base that spends $300,000 or more annually grew by 54% compared to 2020, trouncing the 15% growth in its customer base overall. It led to $443 million in full-year revenue, representing 26% growth from 2020, and analysts expect the company to cross the half-billion dollar mark for the first time ever in 2022.
Workiva isn't profitable just yet, because it's still investing heavily in its business to build scale. For example, it's spending 40% of its revenue on sales and marketing alone. But the company has the wind at its back when it comes to shifting workplace trends -- more organizations are offering hybrid work arrangements to attract talent, making Workiva's platform increasingly important.
In fact, some data suggests 85% of managers expect remote work to become the new normal, and that makes the recent dip in Workiva stock an attractive entry point for the next decade and beyond.
Image source: Getty Images.
The leader in observability continues to dominate
Jamie Louko (Datadog): Shares of Datadog have been on a bumpy ride since September 2021. Shares sunk in January, but after a stellar earnings report, the company popped. However, with the stock market seemingly going nowhere but down, shares gave up those gains and are back down 35% from their all-time highs. However, Datadog's infrastructure observability and performance monitoring platform is continuing to get quickly adopted, and that did not change in the fourth quarter.
The company reported incredible revenue growth of 84% year over year in Q4 to $326 million, and this was driven by its large customers and expanding customer relationships. Its customers spending over $1 million annually jumped 114% year over year in Q4, likely helped by the fact that one-third of its customers used four or more products at the end of Q4 2021, which grew from 22% in Q4 2020. This increased engagement and usage demonstrates the major long-term tailwinds at Datadog's back with the shift to cloud infrastructure.
Another growth opportunity that Datadog has in the future is expansion into the government sector. In Q4, the company got FedRAMP Authorization, meaning it will now be able to sell its products to government entities and public sector businesses. These customers tend to have deep pockets, which means that Datadog's large customer pool could continue growing at a fast rate.
Datadog shares still trade at 38 times sales -- a high valuation, especially after the tech sell-off. Other high-growth cloud stocks like Confluent have slid much more: Confluent's price-to-sales multiple was in line with Datadog's in the months before the sell-off, and now its valuation has sunk to 22 times sales. However, that doesn't mean Datadog isn't worth buying today. As the cloud becomes more widespread, security and application performance monitoring will quickly become need-to-haves for businesses and government agencies, and with Datadog's leadership in the space, it will likely benefit immensely over the coming years.
Image source: Getty Images.
Democratizing financial services
Trevor Jennewine (Block): Traditionally, businesses that wanted to accept payment cards have worked with banks and other financial institutions to get the necessary hardware, software, and services. But those providers almost always bundle products from different companies, which means those systems can be difficult to implement and maintain, especially for smaller businesses that lack a sizable IT team. That's where Block can make a difference.
Its Seller ecosystem is a cohesive, self-service suite of hardware, software, and services, comprising all of the tools needed to manage a business across physical and digital channels. That includes everything from point-of-sale (POS) systems and payroll software to banking products like deposit accounts and loans. Not surprisingly, Block's comprehensive approach to commerce has translated into strong adoption. In fact, sellers using four or more Square products accounted for 38% of gross profit in 2021, up from just 10% in 2016.
Block's Cash App ecosystem is built with a similar focus on simplicity, only it's designed to help consumers manage their money. Cash App blends banking and brokerage services, allowing users to send, spend, and invest money, and file their taxes from a single mobile app. In 2021, monthly active users jumped 22% to 44 million, and more than 31% of those people now use the Cash Card (a debit card linked to the mobile app) on a monthly basis, up from 26% in 2020. That's noteworthy because Cash App users generate more gross profit with each additional product they adopt.
Last year, strength across both ecosystems helped Block turn in a solid financial performance. Gross profit soared 62% to $4.4 billion, and free cash flow hit $714 million, up from $35 million in 2020. Better yet, Block is well positioned to maintain that momentum. Mid-market sellers (at least $500,000 in annual sales) now account for 37% of gross payment volume, up from 17% in 2016, and that upmarket movement bodes well for the Square ecosystem, evidencing its growing importance in the commerce industry. At the same time, the Cash App ecosystem allows Block to monetize consumers through digital payments and brokerage services for stocks and Bitcoin, and both should be significant tailwinds for the company.
Currently, Block is down 63%, and the stock is trading at 2.9 times sales -- its cheapest valuation in the past three years. That's why now looks like a good time to buy a few shares.
10 stocks we like better than Workiva
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 Workiva 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko owns Block, Inc., Confluent, Inc., and Datadog. Trevor Jennewine owns Block, Inc. The Motley Fool owns and recommends Alphabet (A shares), Bitcoin, Block, Inc., Confluent, Inc., Datadog, Microsoft, and Workiva. 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.
|
Three Motley Fool contributors think Workiva (NYSE: WK), Datadog (NASDAQ: DDOG), and Block (NYSE: SQ) are great candidates to buy after their steep declines in stock price. A mixture of high inflation, rising interest rates, and geopolitical tensions across Europe has suppressed investors' appetite for risk, sending the Nasdaq 100 technology index 20% lower, and into a technical bear market. The company's data unification platform is playing a key role in the digital economy, where more organizations are embracing remote work and require innovative tools to maintain smooth workflows.
|
Three Motley Fool contributors think Workiva (NYSE: WK), Datadog (NASDAQ: DDOG), and Block (NYSE: SQ) are great candidates to buy after their steep declines in stock price. A data unification powerhouse Anthony Di Pizio (Workiva): Setting the steep 41% decline in its stock price aside, Workiva continues to deliver strong operational results for investors. At the same time, the Cash App ecosystem allows Block to monetize consumers through digital payments and brokerage services for stocks and Bitcoin, and both should be significant tailwinds for the company.
|
Three Motley Fool contributors think Workiva (NYSE: WK), Datadog (NASDAQ: DDOG), and Block (NYSE: SQ) are great candidates to buy after their steep declines in stock price. At the same time, the Cash App ecosystem allows Block to monetize consumers through digital payments and brokerage services for stocks and Bitcoin, and both should be significant tailwinds for the company. The Motley Fool owns and recommends Alphabet (A shares), Bitcoin, Block, Inc., Confluent, Inc., Datadog, Microsoft, and Workiva.
|
Three Motley Fool contributors think Workiva (NYSE: WK), Datadog (NASDAQ: DDOG), and Block (NYSE: SQ) are great candidates to buy after their steep declines in stock price. In fact, sellers using four or more Square products accounted for 38% of gross profit in 2021, up from just 10% in 2016. That's right -- they think these 10 stocks are even better buys.
|
fd0f921c-1931-4dc4-af90-f4ab12623f83
|
718705.0
|
2022-03-13 00:00:00 UTC
|
Why Datadog Stock Is Well-Positioned for Growth
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-stock-is-well-positioned-for-growth
|
nan
|
nan
|
Datadog's (NASDAQ: DDOG) potential to expand its customers across government departments just significantly increased. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Withers and Toby Bordelon talk about the importance of understanding your customer and analyze whether Datadog is poised to navigate the government contracting process.
{% sfr %}
Brian Withers: One of the things Datadog slipped into its earnings report, said that it's achieved Federal Risk and Authorization Management Program Agency authorization at the moderate impact level. What does that mean? This is FedRAMP. Let me explain what that means because I think this is an important event for the company. What is FedRAMP? The government has gotten together and coordinated what it expects from cloud service providers for cloud offerings to be a partner of the federal government. It used to be each of the different agencies had different standards that you had to meet, and now it's all come together under one program. It's called FedRAMP. Just like anything else in the federal government, there's this tremendous process that you have to go through to get approved. You can see all of the different pieces, the agency process or the JAB process, Joint Authorization Board. Regardless, there's a bunch of prep that the company needs to do. There are lots of checks you have to prove, and then there's continuous monitoring at the end. What does the moderate level mean? Well, the low impact security level is essentially any publicly available data. So if the data was compromised, it would have low impact. So, that's really a lot of the government operations. If you are at a low security level, you're really not going to be able to serve those departments really well. If you look at the moderate impact level, this includes personally identifiable information. So if it's leaked, it would have a serious impact and high impact is more like top secret stuff. Let's look at what moderate level means. Well, you can see the different departments here. DOD is about 33% of use cases. The VA is about 16%. Homeland Security is 13%. You see all of these different agencies. When you get to the moderate impact, that will cover nearly 80% of CSP, cloud service provider applications. Now, about 80% of the government's departments are opened up for Datadog to sell to and this is really exciting.
Toby Bordelon: So Brian, our friend, Lou Whiteman, who does a lot of industrial shows on Fool Live here, he follows the defense and government contracting industry closely. One thing he talks about a lot is, at the core competency of companies in this sector is really knowing and understanding your customer, the U.S. government. It's different than the private sector. There can be a big ramp-up in terms of figuring out how to do things and navigating the government contracting process to be successful. So, do you think Datadog is up for that? Are they well-positioned to figure that out?
Withers: Essentially, you look at the difference between low and moderate impact. There probably weren't very many government agencies who were a customer of Datadog before they got this moderate impact authorization. I think this is a new thing for them. But, what's cool about the FedRAMP approval is it's for all departments. So now, if there are departments that were looking to use Datadog in the past, now they have the green light to go ahead and reach out to Datadog and start to talk to them about a solution or a contract and what they want to do. I know when I was at Dell (NYSE: DELL), we had a whole separate sales force and a support team specifically for Fed customers. This was a massive undertaking, but in the end it was worth it. I think this is the first step of a long journey, but this opens up a whole new set of customers for Datadog.
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
Brian Withers owns Datadog. Toby Bordelon has no position in any of the stocks mentioned. The Motley Fool owns and recommends Datadog and Dell Technologies 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.
|
Datadog's (NASDAQ: DDOG) potential to expand its customers across government departments just significantly increased. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Withers and Toby Bordelon talk about the importance of understanding your customer and analyze whether Datadog is poised to navigate the government contracting process. One thing he talks about a lot is, at the core competency of companies in this sector is really knowing and understanding your customer, the U.S. government.
|
Datadog's (NASDAQ: DDOG) potential to expand its customers across government departments just significantly increased. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Withers and Toby Bordelon talk about the importance of understanding your customer and analyze whether Datadog is poised to navigate the government contracting process. {% sfr %} Brian Withers: One of the things Datadog slipped into its earnings report, said that it's achieved Federal Risk and Authorization Management Program Agency authorization at the moderate impact level.
|
Datadog's (NASDAQ: DDOG) potential to expand its customers across government departments just significantly increased. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Withers and Toby Bordelon talk about the importance of understanding your customer and analyze whether Datadog is poised to navigate the government contracting process. {% sfr %} Brian Withers: One of the things Datadog slipped into its earnings report, said that it's achieved Federal Risk and Authorization Management Program Agency authorization at the moderate impact level.
|
Datadog's (NASDAQ: DDOG) potential to expand its customers across government departments just significantly increased. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Feb. 16, Motley Fool contributors Brian Withers and Toby Bordelon talk about the importance of understanding your customer and analyze whether Datadog is poised to navigate the government contracting process. One thing he talks about a lot is, at the core competency of companies in this sector is really knowing and understanding your customer, the U.S. government.
|
52b590b7-211f-491b-b97c-e06255b82724
|
718706.0
|
2022-03-11 00:00:00 UTC
|
2 Red-Hot Growth Stocks to Buy in 2022 and Beyond
|
DDOG
|
https://www.nasdaq.com/articles/2-red-hot-growth-stocks-to-buy-in-2022-and-beyond-0
|
nan
|
nan
|
Many investors have been shifting their attention away from growth stocks recently as the market has experienced significant price swings.
Some investors are looking for more stable investments during an uncertain time. That can be a good investing strategy, but so can buying shares of fast-growing companies that have seen their share prices tumble recently.
Investors on the prowl for a couple of red-hot growth stocks to buy now that could be fantastic long-term investments need to look no further than Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG). Here's why.
Image source: Getty Images.
1. Nvidia
You'll likely find Nvidia on a lot of lists of growth stocks because there seems to be no slowing down this tech giant.
For the full fiscal year 2022, the company's sales spiked 61% and its net income more than doubled to $9.7 billion. Nvidia makes most of its revenue from its gaming segment, but over the past few years, the company has vastly expanded the use of its chips into new areas, including data centers.
Some of the world's largest tech companies use Nvidia's graphics processors in their data centers, including for artificial intelligence, which has resulted in the company increasing its data center sales by 185% in less than two years.
And there are plenty of avenues for new growth from the company as well. One promising market could be the metaverse, in which people spend time in a digital environment using an avatar. Meta Platforms, the parent company of Facebook, is transitioning to the metaverse and is working with Nvidia to use some of its technology to help build its version of it.
The metaverse will require immense amounts of computing power and graphics processing -- and Nvidia's chip will likely help tech companies achieve their metaverse visions. And with the global metaverse market size expected to reach an estimated $758 billion by 2026, there's plenty of room for Nvidia to benefit from it.
Nvidia stock is up 74% over the past year despite trading at a 34.5% discount to its 52-week highs, making it a buy right now.
2. Datadog
Another fantastic growth stock that many investors have already stumbled upon is the monitoring and security platform Datadog. The company's cloud application services have proved their mettle over the past few years and Datadog's most recent quarterly results prove its popularity among its customers.
Datadog's sales increased 84% in the fourth quarter (reported on Feb. 10) to $326 million and full-year sales for 2021 popped 70%, surpassing $1 billion. This impressive sales growth was fueled by happy customers, more than a third of which are signed up for at least four Datadog services.
The company has successfully built out its customer base to 18,800 -- a 32% increase year over year -- and boasts an impressive dollar-based net revenue retention rate of 130%.
Not only is Datadog growing at a healthy clip, but its stock has also held up better than some other growth stocks over the past several months. Even as tech stocks have taken it on the chin over the past six months, Datadog's share price has still increased 51% over the past year, compared to the S&P 500's 10% gains. it's currently trading about 35% lower than its 52-week highs.
There's no guarantee that the company's share price will keep climbing, of course, but with Datadog already seeing huge revenue gains and strong loyalty from its expanding customer base, it's likely that there are still plenty of good times ahead for this tech stock.
Find out why Nvidia is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Nvidia is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of March 3, 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. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns and recommends 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.
|
Investors on the prowl for a couple of red-hot growth stocks to buy now that could be fantastic long-term investments need to look no further than Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG). Nvidia makes most of its revenue from its gaming segment, but over the past few years, the company has vastly expanded the use of its chips into new areas, including data centers. Meta Platforms, the parent company of Facebook, is transitioning to the metaverse and is working with Nvidia to use some of its technology to help build its version of it.
|
Investors on the prowl for a couple of red-hot growth stocks to buy now that could be fantastic long-term investments need to look no further than Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG). Some of the world's largest tech companies use Nvidia's graphics processors in their data centers, including for artificial intelligence, which has resulted in the company increasing its data center sales by 185% in less than two years. The company's cloud application services have proved their mettle over the past few years and Datadog's most recent quarterly results prove its popularity among its customers.
|
Investors on the prowl for a couple of red-hot growth stocks to buy now that could be fantastic long-term investments need to look no further than Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG). Some of the world's largest tech companies use Nvidia's graphics processors in their data centers, including for artificial intelligence, which has resulted in the company increasing its data center sales by 185% in less than two years. There's no guarantee that the company's share price will keep climbing, of course, but with Datadog already seeing huge revenue gains and strong loyalty from its expanding customer base, it's likely that there are still plenty of good times ahead for this tech stock.
|
Investors on the prowl for a couple of red-hot growth stocks to buy now that could be fantastic long-term investments need to look no further than Nvidia (NASDAQ: NVDA) and Datadog (NASDAQ: DDOG). Nvidia stock is up 74% over the past year despite trading at a 34.5% discount to its 52-week highs, making it a buy right now. Even as tech stocks have taken it on the chin over the past six months, Datadog's share price has still increased 51% over the past year, compared to the S&P 500's 10% gains.
|
e75cafea-8d39-48b9-b00c-5f5305bbd9af
|
718707.0
|
2022-03-09 00:00:00 UTC
|
DDOG Makes Bullish Cross Above Critical Moving Average
|
DDOG
|
https://www.nasdaq.com/articles/ddog-makes-bullish-cross-above-critical-moving-average
|
nan
|
nan
|
In trading on Wednesday, shares of Datadog Inc (Symbol: DDOG) crossed above their 200 day moving average of $141.14, changing hands as high as $143.62 per share. Datadog Inc shares are currently trading up about 12.3% on the day. The chart below shows the one year performance of DDOG shares, versus its 200 day moving average:
Looking at the chart above, DDOG's low point in its 52 week range is $69.73 per share, with $199.675 as the 52 week high point — that compares with a last trade of $142.83.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Datadog Inc (Symbol: DDOG) crossed above their 200 day moving average of $141.14, changing hands as high as $143.62 per share. The chart below shows the one year performance of DDOG shares, versus its 200 day moving average: Looking at the chart above, DDOG's low point in its 52 week range is $69.73 per share, with $199.675 as the 52 week high point — that compares with a last trade of $142.83. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Datadog Inc (Symbol: DDOG) crossed above their 200 day moving average of $141.14, changing hands as high as $143.62 per share. The chart below shows the one year performance of DDOG shares, versus its 200 day moving average: Looking at the chart above, DDOG's low point in its 52 week range is $69.73 per share, with $199.675 as the 52 week high point — that compares with a last trade of $142.83. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Datadog Inc (Symbol: DDOG) crossed above their 200 day moving average of $141.14, changing hands as high as $143.62 per share. The chart below shows the one year performance of DDOG shares, versus its 200 day moving average: Looking at the chart above, DDOG's low point in its 52 week range is $69.73 per share, with $199.675 as the 52 week high point — that compares with a last trade of $142.83. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Datadog Inc (Symbol: DDOG) crossed above their 200 day moving average of $141.14, changing hands as high as $143.62 per share. The chart below shows the one year performance of DDOG shares, versus its 200 day moving average: Looking at the chart above, DDOG's low point in its 52 week range is $69.73 per share, with $199.675 as the 52 week high point — that compares with a last trade of $142.83. Datadog Inc shares are currently trading up about 12.3% on the day.
|
57019697-4dbe-4afa-a3df-d1382b7f2b35
|
718708.0
|
2022-03-09 00:00:00 UTC
|
DDOG May 20th Options Begin Trading
|
DDOG
|
https://www.nasdaq.com/articles/ddog-may-20th-options-begin-trading
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the May 20th 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 72 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 May 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $130.00 strike price has a current bid of $13.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $130.00, but will also collect the premium, putting the cost basis of the shares at $116.15 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $135.67/share today.
Because the $130.00 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 62%. 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 10.65% return on the cash commitment, or 54.04% 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 $130.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $14.25. If an investor was to purchase shares of DDOG stock at the current price level of $135.67/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.69% if the stock gets called away at the May 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DDOG shares really soar, which is why looking at the trailing twelve month trading history for Datadog Inc, as well as studying the business fundamentals becomes important. Below is a chart showing DDOG's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 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 50%. 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 10.50% boost of extra return to the investor, or 53.28% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 75%, 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 $135.67) to be 56%. 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.
|
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 $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the May 20th expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the May 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 20th contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the May 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 20th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new May 20th contracts and identified one put and one call contract of particular interest. Below is a chart showing DDOG's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Datadog Inc (Symbol: DDOG) saw new options become available today, for the May 20th expiration.
|
687bdcfd-ade9-4e8d-9084-ba358afdb5ad
|
718709.0
|
2022-03-08 00:00:00 UTC
|
Better Cloud Stock: Datadog vs. Domo
|
DDOG
|
https://www.nasdaq.com/articles/better-cloud-stock%3A-datadog-vs.-domo
|
nan
|
nan
|
Datadog (NASDAQ: DDOG) and Domo (NASDAQ: DOMO) are both growing cloud-based data visualization companies.
Datadog's platform monitors databases, servers, and apps in real time across an entire company. It aggregates that data onto unified dashboards, making it easier for IT professionals to spot and diagnose problems.
Domo collects an organization's business-related data from various software platforms then aggregates all that information onto a single app for visualization, management, and analytics purposes. Companies can also customize their experiences with apps from Domo's integrated app store.
Image source: Getty Images.
Datadog and Domo serve completely different markets, but they both break down silos and make it easier to manage companies. Both companies are also fairly well-insulated from macro headwinds and consistently generate high double-digit revenue growth. Should investors consider investing in either company as inflation, rising interest rates, and the Russian-Ukrainian conflict cast dark clouds over high-growth tech stocks?
1. Datadog: Massive growth with a sticky ecosystem
Datadog's revenue rose 70% to $1.03 billion in fiscal 2021, which aligns with the calendar year. Its adjusted gross margin dipped from 79% to 78%, but its net loss still narrowed from $24.5 million to $20.7 million on a generally accepted accounting principles (GAAP) basis. It also turned profitable on a GAAP basis in the fourth quarter. On a non-GAAP basis, its full-year net income surged 133% to $166.8 million.
Datadog's number of customers that generated annual recurring revenues (ARR) of at least $100,000 increased 63% to 2,010. Its number of customers with at least $1 million in ARR jumped 114% to 214. Its dollar-based net retention rate, which gauges its growth per existing customer, has remained above 130% for 18 consecutive quarters.
Datadog expects its revenue to grow 47% to 49% in fiscal 2022 and its gross margins to remain in the high 70s as it benefits from favorable cloud hosting costs. Analysts expect Datadog to remain unprofitable in fiscal 2022, but they still expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise 11% to $209 million.
Datadog ended the year with $271 million in cash and equivalents, $1.28 billion in marketable securities, and a manageable debt-to-equity ratio of 1.3. The stock isn't cheap at 29 times this year's sales, but its impressive top-line growth and high retention rates could justify that premium valuation.
2. Domo: Decent growth with widening losses
Domo's revenue rose 23% to $258 million in fiscal 2022, which ended this January. Its adjusted subscription gross margin rose from 81% to 83%, and its billings growth of 30% in Q4 marked its highest billings growth rate in 14 quarters. Its net retention rate also stayed above 100%.
However, Domo's net loss widened from $84.6 million in fiscal 2021 to $102.1 million in fiscal 2022 on a GAAP basis. On a non-GAAP basis, its net loss narrowed slightly from $50.8 million to $41.5 million. Its cash and equivalents also declined 8% year over year to $83.6 million.
Those widening losses are alarming, but Domo's liabilities also jumped 24% to $370.6 million and eclipsed its assets of $244.6 million at the end of 2021 -- which gives it a negative book value. That high leverage could make it tough for Domo to secure fresh funding as interest rates rise.
Domo doesn't expect that pressure, which it attributes to the expansion of its sales team and other investments, to ease anytime soon. It expects its revenue to rise 22% to 24% in fiscal 2022, but its non-GAAP net loss to widen again. Analysts expect its adjusted EBITDA loss to widen from $23.3 million to $30.1 million.
Domo's stock might initially seem cheap at four times this year's sales since comparable companies like Salesforce (NYSE: CRM) and Splunk (NASDAQ: SPLK) trade at about six times this year's sales, but that lower valuation reflects its widening losses and ugly balance sheet.
The obvious winner: Datadog
Datadog is a lot pricier than Domo, but it's growing at a faster rate, its bottom line growth looks more stable, and its leverage isn't too high.
Domo's revenue growth is decent, but its steep losses and negative book value are impossible to ignore. Domo could also struggle to compete against larger competitors, like Salesforce's Tableau and Splunk, in the crowded data visualization software market.
In short, Datadog is a better all-around investment than Domo. Its shares could remain volatile in this challenging market, but the company could evolve into a much larger cloud software company over the long term.
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
Leo Sun owns Salesforce.com. The Motley Fool owns and recommends Datadog, Salesforce.com, 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.
|
Datadog (NASDAQ: DDOG) and Domo (NASDAQ: DOMO) are both growing cloud-based data visualization companies. Domo collects an organization's business-related data from various software platforms then aggregates all that information onto a single app for visualization, management, and analytics purposes. Should investors consider investing in either company as inflation, rising interest rates, and the Russian-Ukrainian conflict cast dark clouds over high-growth tech stocks?
|
Datadog (NASDAQ: DDOG) and Domo (NASDAQ: DOMO) are both growing cloud-based data visualization companies. Datadog ended the year with $271 million in cash and equivalents, $1.28 billion in marketable securities, and a manageable debt-to-equity ratio of 1.3. Domo: Decent growth with widening losses Domo's revenue rose 23% to $258 million in fiscal 2022, which ended this January.
|
Datadog (NASDAQ: DDOG) and Domo (NASDAQ: DOMO) are both growing cloud-based data visualization companies. Domo: Decent growth with widening losses Domo's revenue rose 23% to $258 million in fiscal 2022, which ended this January. However, Domo's net loss widened from $84.6 million in fiscal 2021 to $102.1 million in fiscal 2022 on a GAAP basis.
|
Datadog (NASDAQ: DDOG) and Domo (NASDAQ: DOMO) are both growing cloud-based data visualization companies. Domo collects an organization's business-related data from various software platforms then aggregates all that information onto a single app for visualization, management, and analytics purposes. However, Domo's net loss widened from $84.6 million in fiscal 2021 to $102.1 million in fiscal 2022 on a GAAP basis.
|
a876ec7a-7e7d-4540-8b65-66b19824de0e
|
718710.0
|
2022-03-08 00:00:00 UTC
|
3 Growth Stocks to Buy in March
|
DDOG
|
https://www.nasdaq.com/articles/3-growth-stocks-to-buy-in-march
|
nan
|
nan
|
It's understandable if you're wary of buying any (or even continuing to hold) stocks right now. The military conflict unfurling in Ukraine certainly feels like it could expand outside of that country's borders. Even if it doesn't, sanctions and other punitive actions against Russia are rattling the global economy.
As the old adage goes though, fortune favors the bold. If you're a true long-term investor, now's actually a great time to step into the best-of-the-best growth stocks. Here's a look at three such names to consider while they're down for a less-than-permanent reason.
Image source: Getty Images.
1. Amazon
It's such a predictable, standby pick that it's almost become cliche. Nevertheless, Amazon (NASDAQ: AMZN) is a compelling pick here, not just because its stock price is down more than 15% since the end of 2021, but because its current price is right around where it was trading in the middle of 2020. That's right -- the bulk of Amazon's pandemic-prompted gains have either been given up or never actually achieved in the throes of the pandemic, when one might have expected this stock to be soaring.
Whatever the reason, it's arguably a mistake. Not only is Amazon poised to continue growing its e-commerce business as more and more consumers turn to it as an alternative to brick-and-mortar shopping, the company's highly lucrative cloud computing arm is truly taking off now.
Think about this: Amazon Web Services (AWS) saw its revenue grow 37% to $62.2 billion last year, accounting for 13% of the company's total top line. AWS is so profitable, however, that this unit provided 75% of Amazon's 2021 operating income.
Now consider that one technology market research outfit anticipates the cloud computing market will grow at an annualized pace of 17% through 2025. Amazon's most profitable business -- by far -- is still catching a major tailwind. Add in the fact that the company is also just now starting to get serious about selling space to advertisers using the web to promote products at the same time it's backing away from its distracting brick-and-mortar ventures, and what you're left with is a highly focused growth machine.
2. Upstart Holdings
While Amazon is a household name, Upstart Holdings (NASDAQ: UPST) isn't. However, there's a good chance you or someone else living in your household has benefited from its service. Upstart is an alternative credit rating bureau, although it's so different from the likes of Equifax, Experian, and TransUnion that the description is almost a little misleading.
In the simplest terms, Upstart determines an individual's creditworthiness by using an artificial intelligence-powered algorithm. While factors such as income and current debt load are likely considered (as traditional credit bureaus do), Upstart also uses information like educational history and other, less traditional inputs.
Whatever the specific approach is, it works better for everyone involved. The company reports its approval process results in 75% fewer loan defaults than the nation's biggest banks experience in extending comparable loans. Yet it also helps 26% more borrowers get loans that likely would have been denied by a lender.
It's still a novel idea within the lending world, but that's changing. Upstart Holdings reports as of the end of 2021 that 42 banks and over 150 institutional lenders now rely on Upstart's credit-scoring platform. More are on the way too, which is why the analyst community believes the company will see top-line growth of 65% this year and nearly 35% again next year. Yet you can buy this stock right now at 70% less than October's peak price.
3. Datadog
Finally, add Datadog (NASDAQ: DDOG) to your list of price-discounted growth stocks to buy this March. It's peeled back more than 30% from its November's highs, which -- given its backstory -- makes it a name worth a shot at its present price.
It would be surprising if you'd heard of it; most investors haven't. Don't let its lack of notoriety fool you, though. This $40 billion software outfit's been around since 2010, quietly racking up major revenue growth the whole time. Last year's sales improved 2020's tally to the tune of 70% following 2020's pandemic-defying 66% growth, pushing the company out of the red and into the black (on an unadjusted operating basis). Analysts are modeling comparable growth this year, suggesting Datadog's adjusted bottom line will swell from last year's per-share profit of $0.48 to $0.51 this time around, en route to $0.84 per share next year.
The secret of Datadog's success isn't exactly a secret. The company offers custom-built, industry-specific software that allows its users to monitor its cloud and computer networks.
While cybersecurity threats are certainly part of the mix of information being tracked, that's hardly all Datadog delivers. Its platforms also allow client companies to keep tabs on data processing loads, log network errors, and display all of this information in an easy-to-understand user interface. As the world becomes increasingly digitized, these are the sorts of solutions large organizations want and need.
10 stocks we like better than Amazon
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 3, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool owns and recommends Amazon, Datadog, and Upstart Holdings, Inc. The Motley Fool recommends Experian. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Finally, add Datadog (NASDAQ: DDOG) to your list of price-discounted growth stocks to buy this March. Not only is Amazon poised to continue growing its e-commerce business as more and more consumers turn to it as an alternative to brick-and-mortar shopping, the company's highly lucrative cloud computing arm is truly taking off now. Add in the fact that the company is also just now starting to get serious about selling space to advertisers using the web to promote products at the same time it's backing away from its distracting brick-and-mortar ventures, and what you're left with is a highly focused growth machine.
|
Datadog Finally, add Datadog (NASDAQ: DDOG) to your list of price-discounted growth stocks to buy this March. Think about this: Amazon Web Services (AWS) saw its revenue grow 37% to $62.2 billion last year, accounting for 13% of the company's total top line. Upstart Holdings While Amazon is a household name, Upstart Holdings (NASDAQ: UPST) isn't.
|
Datadog Finally, add Datadog (NASDAQ: DDOG) to your list of price-discounted growth stocks to buy this March. Upstart Holdings While Amazon is a household name, Upstart Holdings (NASDAQ: UPST) isn't. 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.
|
Datadog Finally, add Datadog (NASDAQ: DDOG) to your list of price-discounted growth stocks to buy this March. Think about this: Amazon Web Services (AWS) saw its revenue grow 37% to $62.2 billion last year, accounting for 13% of the company's total top line. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Amazon wasn't one of them!
|
d741fb41-3456-48df-afe0-bae1daacbef8
|
718711.0
|
2022-03-07 00:00:00 UTC
|
3 Stocks That Crushed Earnings and Still Have at Least 30% Upside Potential, According to Wall Street
|
DDOG
|
https://www.nasdaq.com/articles/3-stocks-that-crushed-earnings-and-still-have-at-least-30-upside-potential-according-to
|
nan
|
nan
|
While some companies took a step back during 2021 because of COVID-19-related boosts subsiding, others succeeded in expanding with many customers established during the pandemic. With 2021 in the books, investors have a chance to reflect on how each business did as well as examine how the business is shaping up for 2022.
Three stocks with fantastic 2021 earnings and strong 2022 potential are MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Procore (NYSE: PCOR). Adding to this trio's allure is their stock price. Each is off significantly from its all-time high and Wall Street analysts have price targets above where the stocks are trading. If you're looking for stocks with strong market-beating potential, these companies are poised to do it.
Image source: Getty Images.
MercadoLibre
With an average price target (i.e. the midrange of the projection) of $1578, MercadoLibre has an implied upside of around 40%. The Latin American e-commerce giant had a successful 2021, with 82.2 million unique active users spread across 18 countries. The company showcased strength across the board during the quarter.
Its fintech division grew its revenue a currency-neutral (FX) 81% during the fourth quarter, resulting in $773 million in revenue, making up 37% of its total. Its commerce business -- including its e-commerce platform and shipping division -- generated $1.36 billion and grew at a 67% clip. Overall, the business grew revenue at 74% with a net loss margin of 2.2%.
Management doesn't give forward-looking guidance, but it did say it would continue investing in the business to capture the addressable market. This won't lead to profits in the near term but will set the business up for success in the future.
In addition to being down from its high, MercadoLibre's price-to-sales ratio of 8 is lower than it has been at any time over the last five years. When a company's valuation is slashed, it typically means the market isn't confident in its future prospects. However, MercadoLibre's future is bright and investors should take advantage of the sale price.
Datadog
Many cloud software solutions give companies greater business insight and increase employee productivity. However, understanding how each piece of technology interacts with the other can be difficult. Datadog's software lets IT teams understand how these programs are functioning together and automate some of the troubleshooting processes using artificial intelligence (AI).
With countless companies adopting tech solutions during 2020 to facilitate working from home, Datadog had a huge boost in 2021 when IT teams realized they needed a solution to manage everything. In 2021, revenue was up 70% to $1.03 billion and converted 24% of its revenue into free cash flow. While 2021 was strong, 2022 is looking just as good. Management guided 48% sales growth to $1.52 billion with about the same operating margin as 2021 because of business reinvestment.
Datadog only has 216 customers spending $1 million or more per year, leaving plenty of expansion room across its 2,010 customers spending $100,000 or more. These tech solutions aren't going away and Datadog will be needed to oversee how each one works together. Wall Street analysts believe Datadog's stock has 33% upside, investors who hold on to the stock for longer will likely see higher returns.
Image source: Getty Images.
Procore
Procore's construction management software links all project stakeholders together. It creates a single point of truth where engineers, contractors, and project owners can access the most updated information. By facilitating better interaction, Procore can help reduce some of the $500 billion in construction rework caused by poor data and communication worldwide.
About half the size of Datadog, Procore brought in $146 million during the quarter and $515 million during 2021. It grew at a 29% clip for the full year, which is basically the same as management's 2022 guidance at 28% to 29% growth.
Procore's software is best in class and JBKnowledge named it 2021's top project management software. Additonally, G2 found 97% of users rated it four or five stars out of five and 92% recommend Procore. With great user enthusiasm, Procore's software does a good job of selling itself.
Of the three companies, Wall Street sees the most upside with Procore's stock 45% away from its average price target. Procore has vital software in an important industry, investors should take note before the stock takes off.
Each company has great expansion opportunities ahead that the stock prices aren't factoring in. With current market sentiment against tech stocks, these companies have been heavily sold off. Growth investors with an appetite for risk should consider purchasing this trio for the next three to five years. By getting in now, you can lock in a low price for rapidly growing businesses that should produce solid returns over a long holding period.
10 stocks we like better than MercadoLibre
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 MercadoLibre wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Keithen Drury owns Datadog, MercadoLibre, and Procore Technologies, Inc. The Motley Fool owns and recommends Datadog, MercadoLibre, and Procore Technologies, 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.
|
Three stocks with fantastic 2021 earnings and strong 2022 potential are MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Procore (NYSE: PCOR). Datadog Many cloud software solutions give companies greater business insight and increase employee productivity. Datadog's software lets IT teams understand how these programs are functioning together and automate some of the troubleshooting processes using artificial intelligence (AI).
|
Three stocks with fantastic 2021 earnings and strong 2022 potential are MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Procore (NYSE: PCOR). Wall Street analysts believe Datadog's stock has 33% upside, investors who hold on to the stock for longer will likely see higher returns. Of the three companies, Wall Street sees the most upside with Procore's stock 45% away from its average price target.
|
Three stocks with fantastic 2021 earnings and strong 2022 potential are MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Procore (NYSE: PCOR). Wall Street analysts believe Datadog's stock has 33% upside, investors who hold on to the stock for longer will likely see higher returns. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Keithen Drury owns Datadog, MercadoLibre, and Procore Technologies, Inc.
|
Three stocks with fantastic 2021 earnings and strong 2022 potential are MercadoLibre (NASDAQ: MELI), Datadog (NASDAQ: DDOG), and Procore (NYSE: PCOR). Overall, the business grew revenue at 74% with a net loss margin of 2.2%. Wall Street analysts believe Datadog's stock has 33% upside, investors who hold on to the stock for longer will likely see higher returns.
|
a2e3ca59-b618-44d1-b9df-557536122240
|
718712.0
|
2022-03-07 00:00:00 UTC
|
4 Hypergrowth Tech Stocks to Buy in 2022 and Beyond
|
DDOG
|
https://www.nasdaq.com/articles/4-hypergrowth-tech-stocks-to-buy-in-2022-and-beyond
|
nan
|
nan
|
Many "hypergrowth" tech stocks hit all-time highs last year, driven by the market's bullish optimism in a post-pandemic recovery, stimulus checks, the growth of free trading platforms like Robinhood Markets, and discussions on Reddit's WallStreetBets (WSB) subreddit. Bullish fund managers like Cathie Wood also fanned those flames with highly publicized purchases.
But in recent months, many of those frothy stocks were crushed as inflation, rate hike fears, and Russia's invasion of Ukraine sparked a rotation toward more conservative investments. Wood's Ark Innovation ETF -- arguably the flagship fund of hypergrowth stocks -- has declined nearly 40% this year.
Image source: Getty images.
However, that sell-off has also created promising buying opportunities for investors who can stomach the near-term volatility. Here are four hypergrowth stocks I'd buy in this challenging market: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and Adyen (OTC: ADYE.Y). Let's find out a bit more about these four hypergrowth tech stocks to buy in 2022.
1. Airbnb
Airbnb's revenue declined 30% in 2020 as the COVID-19 pandemic caused global travel to grind to a halt. But in 2021, its revenue soared 77% as those lockdown measures were relaxed. In 2022, analysts expect its revenue to rise 32% and break its streak of losses with a full-year profit.
Airbnb's business model is naturally insulated from inflation, for two reasons: Tighter budgets will drive guests toward cheaper accommodations, while a need for extra income will encourage hosts to rent out their properties.
Airbnb's stock isn't cheap at 12 times this year's sales, but its ongoing disruption of traditional hotels, its growing brand recognition, and its resilience against macroeconomic headwinds all justify that slight premium.
2. Datadog
Datadog's cloud-based platform monitors an organization's databases, servers, and applications in real time, then aggregates all that data on unified dashboards for IT professionals. This streamlined approach makes it much easier to spot and diagnose tech issues.
Datadog's revenue surged 66% in 2020, then grew 70% in 2021 as its total number of customers with over $1 million in annual recurring revenue more than doubled. It also kept its dollar-based net retention rate above 130% for 18 straight quarters. Its gross margins are holding steady and its net losses are narrowing.
Analysts expect Datadog's revenue to rise 49% to $1.5 billion this year, and the stock trades at about 30 times that estimate. That's a premium valuation, but it should be easily supported by Datadog's stellar growth rates.
3. Cloudflare
As the Russian-Ukrainian conflict escalates, fears of cyberattacks and internet disruptions are rising. Cloudflare's platform addresses those fears with a content delivery network (CDN), which accelerates the delivery of digital media on apps and websites, and cybersecurity tools that shield websites from distributed denial-of-service (DDoS) attacks.
Cloudflare was already growing like a weed prior to the conflict. Its revenue rose 50% in 2020 and 52% in 2021, and analysts expect its revenue to grow 42% to $931 million this year as it ekes out a very slim profit. Cloudflare's stock trades at over 40 times that estimate, but the company could still have plenty of room to grow as companies aggressively secure their websites and accelerate the delivery of their digital content to visitors.
4. Adyen
Adyen, which is based in Amsterdam, develops backend software that helps merchants accept over 250 payment methods, including credit cards, debit cards, mobile wallets, and payment apps. It isn't a consumer-facing company like PayPal Holdings or Block, and it doesn't dabble in cryptocurrency, stock trades, or linked debit cards.
Instead, Adyen merely provides code that can be integrated into existing payment systems. Plenty of big retailers, including PayPal's old partner eBay, were drawn to that flexible model.
Adyen's revenue rose 28% in 2020, even as many retailers shut down during the pandemic, and grew 46% in 2021 as those headwinds faded. Analysts expect its revenue and earnings to grow 38% and 39%, respectively, this year. The stock definitely isn't cheap at 76 times forward earnings and 36 times this year's sales -- but investors shouldn't overlook its low-key approach in a sector filled with hyped-up platforms.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of March 3, 2022
Leo Sun owns Adyen N.V. The Motley Fool owns and recommends Adyen N.V., Airbnb, Inc., Block, Inc., Cloudflare, Inc., Datadog, and PayPal Holdings. The Motley Fool recommends Adyen and eBay and recommends the following options: short April 2022 $62.50 calls on eBay. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here are four hypergrowth stocks I'd buy in this challenging market: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and Adyen (OTC: ADYE.Y). But in recent months, many of those frothy stocks were crushed as inflation, rate hike fears, and Russia's invasion of Ukraine sparked a rotation toward more conservative investments. Airbnb's business model is naturally insulated from inflation, for two reasons: Tighter budgets will drive guests toward cheaper accommodations, while a need for extra income will encourage hosts to rent out their properties.
|
Here are four hypergrowth stocks I'd buy in this challenging market: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and Adyen (OTC: ADYE.Y). The stock definitely isn't cheap at 76 times forward earnings and 36 times this year's sales -- but investors shouldn't overlook its low-key approach in a sector filled with hyped-up platforms. The Motley Fool owns and recommends Adyen N.V., Airbnb, Inc., Block, Inc., Cloudflare, Inc., Datadog, and PayPal Holdings.
|
Here are four hypergrowth stocks I'd buy in this challenging market: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and Adyen (OTC: ADYE.Y). Analysts expect Datadog's revenue to rise 49% to $1.5 billion this year, and the stock trades at about 30 times that estimate. The stock definitely isn't cheap at 76 times forward earnings and 36 times this year's sales -- but investors shouldn't overlook its low-key approach in a sector filled with hyped-up platforms.
|
Here are four hypergrowth stocks I'd buy in this challenging market: Airbnb (NASDAQ: ABNB), Datadog (NASDAQ: DDOG), Cloudflare (NYSE: NET), and Adyen (OTC: ADYE.Y). Let's find out a bit more about these four hypergrowth tech stocks to buy in 2022. Analysts expect Datadog's revenue to rise 49% to $1.5 billion this year, and the stock trades at about 30 times that estimate.
|
d3d90c64-7661-413b-a9d3-ea24ac09ee56
|
718713.0
|
2022-03-07 00:00:00 UTC
|
Why Did Datadog Stock Climb 10% in February?
|
DDOG
|
https://www.nasdaq.com/articles/why-did-datadog-stock-climb-10-in-february
|
nan
|
nan
|
What happened
Shares of Datadog (NASDAQ: DDOG) rose 10.3% in February, according to data from S&P Global Market Intelligence. The tech stock rose sharply after a strong earnings report early in the month before giving back some of those gains in the market sell-off.
So what
Datadog continues to impress with its operational results. The company reported earnings on Feb. 10, and the news was basically all positive. It boasted 84% revenue growth, positive net profit, and $250 million of free cash flow. This exceeded analyst estimates for both sales and earnings by a wide margin. Datadog also reported great traction with larger customers. It more than doubled the number of subscribers that produce at least $1 million in annual recurring revenue.
Image source: Getty Images.
Datadog continues to add new products to a strong suite that's already recognized as a leader in the application performance monitoring industry. That's creating an economic moat as the company's products play an increasingly important role for customers.
Despite all that, volatility still played a massive role here. Since the big bounce on positive earnings, the stock has dropped nearly 20% from its February high. The market downturn is hitting high-valuation tech stocks. Investors can see that even strongly performing businesses won't be spared.
Now what
First-quarter results are a couple of months away, so Datadog stock will be at the mercy of market forces for a while. It's expensive, with a price-to-sales ratio of 45 and forward price-to-earnings ratio near 300. That will most likely fuel high volatility in the near term, especially as the stock market reacts to the conflict in Ukraine and the Federal Reserve continuing to tighten its monetary policy.
That's not necessarily a reason for investors to shy away. This is a classic growth stock with massive potential and an aggressive valuation. Risk and reward are both high relative to other types of stocks. Investors just need to feel comfortable with some potential short-term drops in exchange for the long-term opportunity. It might also be smart to keep some cash on the sidelines in case more shares can be bought at a lower price in the future.
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
Ryan Downie 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.
|
What happened Shares of Datadog (NASDAQ: DDOG) rose 10.3% in February, according to data from S&P Global Market Intelligence. The tech stock rose sharply after a strong earnings report early in the month before giving back some of those gains in the market sell-off. Datadog continues to add new products to a strong suite that's already recognized as a leader in the application performance monitoring industry.
|
What happened Shares of Datadog (NASDAQ: DDOG) rose 10.3% in February, according to data from S&P Global Market Intelligence. The tech stock rose sharply after a strong earnings report early in the month before giving back some of those gains in the market sell-off. Since the big bounce on positive earnings, the stock has dropped nearly 20% from its February high.
|
What happened Shares of Datadog (NASDAQ: DDOG) rose 10.3% in February, according to data from S&P Global Market Intelligence. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them!
|
What happened Shares of Datadog (NASDAQ: DDOG) rose 10.3% in February, according to data from S&P Global Market Intelligence. The tech stock rose sharply after a strong earnings report early in the month before giving back some of those gains in the market sell-off. Since the big bounce on positive earnings, the stock has dropped nearly 20% from its February high.
|
dbc88093-3d43-48e3-9aaa-d5996bbdd253
|
718714.0
|
2022-03-04 00:00:00 UTC
|
Interesting DDOG Put And Call Options For April 22nd
|
DDOG
|
https://www.nasdaq.com/articles/interesting-ddog-put-and-call-options-for-april-22nd
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 22nd contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $12.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $127.85 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $143.75/share today.
Because the $140.00 strike represents an approximate 3% 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 59%. 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 8.68% return on the cash commitment, or 64.70% 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 $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $13.35. If an investor was to purchase shares of DDOG stock at the current price level of $143.75/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.16% if the stock gets called away at the April 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 $145.00 strike highlighted in red:
Considering the fact that the $145.00 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 9.29% boost of extra return to the investor, or 69.24% 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 69%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $143.75) to be 56%. 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.
|
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 $145.00 strike highlighted in red: Considering the fact that the $145.00 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 April 22nd expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 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 April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 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 $145.00 strike highlighted in red: Considering the fact that the $145.00 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 April 22nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 22nd contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 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 $145.00 strike highlighted in red: Considering the fact that the $145.00 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 April 22nd expiration.
|
38f2c777-c11d-432c-a400-9f0c89742e58
|
718715.0
|
2022-03-04 00:00:00 UTC
|
Is Datadog Stock Overhyped and Overpriced?
|
DDOG
|
https://www.nasdaq.com/articles/is-datadog-stock-overhyped-and-overpriced
|
nan
|
nan
|
Datadog (NASDAQ: DDOG) is a high-quality business and seeing tremendous growth but currently, the stock appears to be an expensive buy. In this segment of "The Morning Show" on Motley Fool Live, recorded on Feb. 15, Fool.com analyst Tim Beyers and Director of Small Cap Research Bill Mann discuss the company's appeal to investors.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Tim Beyers: On the basis of narrative. There are like somebody asked, I don't remember who it was and the questions asked about Datadog in this. Datadog is trading, I think somebody pointed out at price-to-sales like 49, that is really expensive.
Bill Mann: Price to EBE.
Beyers: Yeah. Price to EBE of 49. [laughs] Yeah, which is very expensive.
Mann: Yeah, yeah.
Beyers: I would not try to tell you that that is cheap. Making a big bet on Datadog, to me personally, without giving any personalized advice here, to me, I would not feel comfortable making a huge bet on it.
But where I look at the overall narrative here, like when I pull in everything else, Datadog's growing much faster than that 49. They're growing much faster than say, like a Cloudflare (NYSE: NET). Also proving out its optionality very well. This gets to the other side of the equation, which is you look at the number, you look at the pricing model, and then how do you test the narrative?
The way you test the narrative, for me, is I started looking at the things that the company is talking about, and are they actually delivering, and are customers using them for more things? Is it clear to me that this revenue growth rate can persist at a much higher rate than you would normally consider for a long period of time because of the things that it's doing? I think in the case of Datadog, the answer for me right now is yes. I do believe that the answer to that is yes.
I believe that Datadog's narrative is pretty solid, but I think you're crazy to make an all-in bet on a company that trades for a price to EBE of 49, I would not make an all-in bet, but would I buy a share or two at current prices? Yeah, of course, I would. I think it's a high-quality business where the narrative makes sense to me. I like them much better when I have to pay a little for the narrative. I like to get bonus narrative.
Bill Mann owns Cloudflare, Inc. and Datadog. Tim Beyers has no position in any of the stocks mentioned. The Motley Fool owns and recommends Cloudflare, Inc. and Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) is a high-quality business and seeing tremendous growth but currently, the stock appears to be an expensive buy. In this segment of "The Morning Show" on Motley Fool Live, recorded on Feb. 15, Fool.com analyst Tim Beyers and Director of Small Cap Research Bill Mann discuss the company's appeal to investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Datadog (NASDAQ: DDOG) is a high-quality business and seeing tremendous growth but currently, the stock appears to be an expensive buy. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. I believe that Datadog's narrative is pretty solid, but I think you're crazy to make an all-in bet on a company that trades for a price to EBE of 49, I would not make an all-in bet, but would I buy a share or two at current prices?
|
Datadog (NASDAQ: DDOG) is a high-quality business and seeing tremendous growth but currently, the stock appears to be an expensive buy. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Tim Beyers: On the basis of narrative. I believe that Datadog's narrative is pretty solid, but I think you're crazy to make an all-in bet on a company that trades for a price to EBE of 49, I would not make an all-in bet, but would I buy a share or two at current prices?
|
Datadog (NASDAQ: DDOG) is a high-quality business and seeing tremendous growth but currently, the stock appears to be an expensive buy. See the 10 stocks *Stock Advisor returns as of January 20, 2022 Tim Beyers: On the basis of narrative. Beyers: Yeah.
|
18781417-bc4b-41a3-b770-0d217cece3ce
|
718716.0
|
2022-03-02 00:00:00 UTC
|
Will Datadog Be a Trillion-Dollar Stock by 2040?
|
DDOG
|
https://www.nasdaq.com/articles/will-datadog-be-a-trillion-dollar-stock-by-2040
|
nan
|
nan
|
Datadog (NASDAQ: DDOG) has generated massive gains since its initial public offering in September 2019. The cloud-based software company went public at $27, started trading at $40.50, and now trades above $160 per share.
That rally boosted Datadog's market capitalization from $11 billion on its first trading day to just over $50 billion as of this writing. That's a promising start, but could Datadog's valuation possibly rise another 20 times to more than $1 trillion within the next two decades?
Image source: Getty Images.
Why did Datadog dazzle the investors?
Datadog's cloud-based platform monitors the performance of an organization's servers, databases, cloud services, and apps in real-time. It then organizes all of that data onto unified dashboards for IT professionals. This streamlined system breaks down "data silos" and makes it much easier for IT professionals to spot and diagnose potential problems.
Datadog was founded 12 years ago, and its growth in large customers and revenue since its public debut has been very impressive:
PERIOD
FY 2019
FY 2020*
FY 2021
Customers with an ARR above $100,000
858
1,228
2,010
Growth (YOY)
89%
46%
63%
Customers with an ARR above $1 million
50
101
216
Growth (YOY)
72%
94%
114%
Total revenue
$362.8 million
$603.5 million
$1.0 billion
Growth (YOY)
83%
66%
70%
Data source: Datadog. ARR = annual recurring revenue. YOY = year over year. *Customer account readjusted in 2021 to reflect acquisitions.
Datadog has also kept its dollar-based net retention rate, which gauges its average year-over-year revenue growth per customer, above 130% for 18 consecutive quarters. Its customers are also using more of its products each year, which indicates its "land and expand" strategy is working:
PERCENT OF CUSTOMERS USING:
FY 2019
FY 2020
FY 2021
2 or more products
58%
72%
78%
4 or more products
10%
22%
33%
Data source: Datadog.
But can Datadog maintain that momentum?
The company's growth has been spectacular, and investors are still willing to pay a premium for the stock at 33 times this year's sales. But will that last over the following two decades?
Here's what we know so far. Datadog expects its revenue to grow 47% to 49% in 2022, while analysts anticipate 49% growth in 2022 and 37% growth in 2023. Those estimates don't factor in any potential acquisitions.
Meanwhile, the global cloud analytics market could expand at a compound annual growth rate (CAGR) of 20.7% between 2021 and 2028. Datadog's net retention rate suggests it can grow at a much faster clip than the broader market, even if its growth in customers gradually cools off.
If Datadog can grow its revenue at a CAGR of 25% between 2021 and 2028, its annual revenue could jump from $1 billion to over $5 billion. If its revenue continues to rise at a more moderate CAGR of 20% from 2028 to 2040, it could potentially generate $45 billion in revenue in the final year.
Let's say Datadog still trades at 30 times sales by then, the company could be worth $1.4 trillion by 2040. However, that's not a terribly realistic price-to-sales ratio for a company that generates about 20% revenue growth per year.
For reference, Salesforce.com (NYSE: CRM), which believes it can grow its annual revenue at a CAGR of 19% between fiscal 2021 to 2026 to $50 billion, currently trades at just six times its fiscal 2023 sales. Twilio (NYSE: TWLO), which aims to generate at least 30% organic revenue growth annually for the "next several years," trades at eight times this year's sales.
Therefore, a more realistic market cap for Datadog by 2040 would be about $450 billion, based on $45 billion in annual sales and a price-to-sales ratio of 10. That would still be a nine-bagger gain from its current levels -- but its cooling valuations will likely prevent it from joining the 12-zero club.
Look beyond Datadog's market cap
Datadog might become a cloud software giant over the next twenty years, but it still faces plenty of unpredictable challenges. It could face fresh competition, lose its momentum, or get gobbled up by a much larger company.
So instead of focusing on its potential to become a trillion-dollar company, investors should focus on its ability to maintain stable growth margins, expand its operating margins, and stay profitable on the basis of generally accepted accounting principles (GAAP). They should also see if it can maintain its high net retention rate while gaining more customers.
If Datadog can continue to impress investors with those metrics, as it did over the past three years, then its stock will continue to generate big long-term gains. It just probably won't be a trillion-dollar company by 2040.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Leo Sun owns Salesforce.com. The Motley Fool owns and recommends Datadog, Salesforce.com, 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.
|
Datadog (NASDAQ: DDOG) has generated massive gains since its initial public offering in September 2019. Datadog's cloud-based platform monitors the performance of an organization's servers, databases, cloud services, and apps in real-time. Datadog has also kept its dollar-based net retention rate, which gauges its average year-over-year revenue growth per customer, above 130% for 18 consecutive quarters.
|
Datadog (NASDAQ: DDOG) has generated massive gains since its initial public offering in September 2019. Customers with an ARR above $100,000 858 1,228 2,010 Growth (YOY) 89% 46% 63% Customers with an ARR above $1 million 50 101 216 Growth (YOY) 72% 94% 114% Total revenue $362.8 million $603.5 million $1.0 billion Growth (YOY) 83% 66% 70% Data source: Datadog. However, that's not a terribly realistic price-to-sales ratio for a company that generates about 20% revenue growth per year.
|
Datadog (NASDAQ: DDOG) has generated massive gains since its initial public offering in September 2019. Customers with an ARR above $100,000 858 1,228 2,010 Growth (YOY) 89% 46% 63% Customers with an ARR above $1 million 50 101 216 Growth (YOY) 72% 94% 114% Total revenue $362.8 million $603.5 million $1.0 billion Growth (YOY) 83% 66% 70% Data source: Datadog. If Datadog can grow its revenue at a CAGR of 25% between 2021 and 2028, its annual revenue could jump from $1 billion to over $5 billion.
|
Datadog (NASDAQ: DDOG) has generated massive gains since its initial public offering in September 2019. The company's growth has been spectacular, and investors are still willing to pay a premium for the stock at 33 times this year's sales. If its revenue continues to rise at a more moderate CAGR of 20% from 2028 to 2040, it could potentially generate $45 billion in revenue in the final year.
|
c7a7e84b-14c1-4d83-a33c-12164ef00efa
|
718717.0
|
2022-03-01 00:00:00 UTC
|
2 Monster Growth Stocks Billionaires Can't Stop Buying
|
DDOG
|
https://www.nasdaq.com/articles/2-monster-growth-stocks-billionaires-cant-stop-buying
|
nan
|
nan
|
Each quarter, retail investors get to see what the big money managers of Wall Street are buying and selling. Institutions with at least $100 million in assets under management are required to disclose their equity holdings by filing a Form 13F with the Securities and Exchange Commission. And the deadline for fourth-quarter filings passed on Feb. 14.
What were the big dogs buying? James Simons of Renaissance Technologies added over 813,000 shares of Airbnb (NASDAQ: ABNB) to his hedge fund, bringing the total shares held to 3.5 million. And billionaire Chase Coleman III of Tiger Global Management bought 62,300 shares of Datadog (NASDAQ: DDOG) for his hedge fund, bringing the total shares held to 5.3 million.
Before adding these stocks to your own portfolio, let's take a closer look at both. Here's what you should know.
Image source: Getty Images.
1. Airbnb
Travel and tourism is one of the world's largest industries, accounting for over 10% of global economic output prior to the pandemic. Unfortunately, the coronavirus cut that percentage figure in half in 2020. Of course, the industry will recover in time, but it may look a little different than it has in the past. Specifically, remote work is now commonplace, which means more people have the flexibility to travel whenever and wherever they want, and Airbnb is leaning into that trend.
Its platform crowdsources lodgings from over 4 million hosts, making its inventory far more flexible than traditional hotels. In fact, Airbnb can onboard a new host in minutes, and without spending much money. By comparison, it takes months and costs millions to build many new hotel properties. That means if consumer travel preferences change, Airbnb can adapt far more quickly than rivals like Marriott. For instance, trips to small towns and rural destinations are more popular now than they were before the pandemic, and Airbnb saw a 20% increase in non-urban listings last year, evidencing the agility of its business model.
That competitive advantage helped Airbnb deliver a monster financial performance in 2021. Revenue skyrocketed 77% to $6 billion, and the company generated positive free cash flow of $2.2 billion, up from a loss of $667 million in the previous year. Better yet, gross booking volume jumped 96% to $46.9 billion, implying strong future sales growth.
Looking ahead, Airbnb has plenty of room to run. The company puts its addressable market at $3.4 trillion, a figure that includes short-term stays, long-term stays, and experiences. And management is making smart moves to execute on that opportunity. In 2021, Airbnb launched a host recruitment campaign, which included a simplified sign-up process and free top-to-bottom insurance for people who list properties on the platform, including $1 million in damage protection. In addition, Airbnb introduced flexible search parameters for dates and locations, helping guests plan the perfect trip when they are less concerned with where and when they travel.
Given Airbnb's agile business model and stellar execution, I'm not surprised to see Renaissance Technologies adding to its position. And with the stock trading at 17 times sales -- far cheaper than its two-year average of 23.6 times sales -- now looks like a good time to buy a few shares.
2. Datadog
Datadog specializes in IT observability. Its easy-to-deploy platform features over 500 built-in integrations, helping clients monitor performance across their ecosystems of applications, networks, and infrastructures. And because its software is cloud-agnostic -- meaning it can be deployed in private data centers and public clouds -- Datadog has achieved significant scale, capturing 10 trillion digital signals each day.
Its platform leans on artificial intelligence to analyze those data points and identify performance problems, surface actionable insights, and accelerate time to resolution. In doing so, Datadog helps its clients keep their digital systems performant and secure, preventing costly downtime and attacks. And each new customer brings more data to the platform, creating a network effect that enhances its ability to predict performance problems.
Digital transformation has made that value proposition increasingly relevant, and Datadog has executed very effectively on its land-and-expand growth strategy. In 2021, its customer base grew 32% to 18,800, and net retention stayed above 130%, meaning the average customer spent over 30% more. As a result, revenue rose 70% to $1 billion, and free cash flow soared 201% to $205.5 million.
Going forward, the company puts its addressable market at $53 billion by 2025, and the management team, led by co-founder and CEO Olivier Pomel, has already demonstrated its ability to grow the business. In 2012, Datadog started with infrastructure monitoring, but has since expanded its observability platform to include applications, networks, user experience, and security. And the company sees future opportunities in areas like developer workflow and real-time business intelligence.
Here's the bottom line: System outages can be costly, both in terms of lost revenue and broken consumer trust. To that end, Datadog creates value for its clients by optimizing the performance of applications and ensuring a good user experience. With a sales pitch like that, I'm not surprised to see Tiger Global adding to its position. Despite its pricey valuation of 49 times sales, this stock looks like a smart long-term investment.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 20, 2022
Trevor Jennewine owns Airbnb, Inc. The Motley Fool owns and recommends Airbnb, Inc. and Datadog. The Motley Fool recommends Marriott International and recommends the following options: long January 2023 $115 calls on Marriott International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
And billionaire Chase Coleman III of Tiger Global Management bought 62,300 shares of Datadog (NASDAQ: DDOG) for his hedge fund, bringing the total shares held to 5.3 million. For instance, trips to small towns and rural destinations are more popular now than they were before the pandemic, and Airbnb saw a 20% increase in non-urban listings last year, evidencing the agility of its business model. And because its software is cloud-agnostic -- meaning it can be deployed in private data centers and public clouds -- Datadog has achieved significant scale, capturing 10 trillion digital signals each day.
|
And billionaire Chase Coleman III of Tiger Global Management bought 62,300 shares of Datadog (NASDAQ: DDOG) for his hedge fund, bringing the total shares held to 5.3 million. James Simons of Renaissance Technologies added over 813,000 shares of Airbnb (NASDAQ: ABNB) to his hedge fund, bringing the total shares held to 3.5 million. The company puts its addressable market at $3.4 trillion, a figure that includes short-term stays, long-term stays, and experiences.
|
And billionaire Chase Coleman III of Tiger Global Management bought 62,300 shares of Datadog (NASDAQ: DDOG) for his hedge fund, bringing the total shares held to 5.3 million. James Simons of Renaissance Technologies added over 813,000 shares of Airbnb (NASDAQ: ABNB) to his hedge fund, bringing the total shares held to 3.5 million. In 2021, Airbnb launched a host recruitment campaign, which included a simplified sign-up process and free top-to-bottom insurance for people who list properties on the platform, including $1 million in damage protection.
|
And billionaire Chase Coleman III of Tiger Global Management bought 62,300 shares of Datadog (NASDAQ: DDOG) for his hedge fund, bringing the total shares held to 5.3 million. Given Airbnb's agile business model and stellar execution, I'm not surprised to see Renaissance Technologies adding to its position. In doing so, Datadog helps its clients keep their digital systems performant and secure, preventing costly downtime and attacks.
|
3996d48c-93a7-4fa7-8f45-a843140e30cb
|
718718.0
|
2022-03-01 00:00:00 UTC
|
Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?
|
DDOG
|
https://www.nasdaq.com/articles/should-jpmorgan-betabuilders-u.s.-mid-cap-equity-etf-bbmc-be-on-your-investing-radar-0
|
nan
|
nan
|
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 $1.44 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 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. Thus they have a nice balance of growth potential and stability.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.95%.
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 20.10% 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 -8.49% so far this year and is up about 0.50% in the last one year (as of 03/01/2022). In the past 52-week period, it has traded between $79.87 and $97.36.
The ETF has a beta of 0.99 and standard deviation of 21.81% 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 $53.29 billion in assets, iShares Core S&P MidCap ETF has $64.84 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.
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.
|
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.
|
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
|
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.
|
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.
|
333c23cb-576a-41f0-a02b-959fbd3a70a5
|
718719.0
|
2022-02-27 00:00:00 UTC
|
DataDog Stuns Investors With 541% Free Cash Flow Growth
|
DDOG
|
https://www.nasdaq.com/articles/datadog-stuns-investors-with-541-free-cash-flow-growth
|
nan
|
nan
|
The fourth-quarter report for DataDog (NASDAQ: DDOG) was quite remarkable. In this video clip from "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Jamie Louko and Brian Withers pore over the big numbers and are excited about where the company is headed in the next few years.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Jamie Louko: The hat trick was really a hat trick of amazing reports. Because like Chipotle (NYSE: CMG), like Twilio (NYSE: TWLO), DataDog killed it. They crushed estimates on both the top and bottom line. That's the third time I've said it, I'm pretty sure. But DataDog really stood out because we see here they were estimating for $291 million and they posted 326. That is crazy. That's almost a 10% beat. Actually, I think that's a little more than a 10% beat doing some quick math.
Their non-GAAP EPS was also almost a 10% beat. They were only estimating for $0.11 cents and they hit $0.20 cents. Really strong and we see that DataDog has just a consistent beat and raise type culture. We see on every single earnings report right here a huge jump when they reported obviously another huge jump. They're really developing this culture where they consistently beat and raise expectations. I personally as an investor, I love to see that.
But these strong results were really brought by big customers. Their customers over one million, spending over $1 million dollars a year, grew 114% to 216, 216 customers may not sound like a lot until you realize they're spending over a million dollars. Their customers over $100,000 reached 2,000 customers and that grew 63% year-over-year. Really strong there and they are expecting their growth to keep going almost 70% year-over-year revenue growth, they're guiding for the first quarter.
Moving a little bit down toward profitability, I had to redo this calculation three times because I thought I messed up somewhere, 541% year-over-year growth is outstanding. That puts it at about a 10% free cash flow margin because this is for the quarter, that's about a 30% free cash flow margin, which is very impressive.
Their dollar-based net retention rate, which is basically existing customers from the year-ago period, if they spent a $100 then, they're now spending on average and including churning customers who are no longer there are spending about $130 now, that's really strong. We can see that, if we see big-name customers growing and spending a lot of money, we would naturally think that the dollar-based net retention rate is also going up if they're expanding their relationships.
That's really the growth strategy for DataDog, they want to land customers and expand their relationships with them. Again, we see this year 33% of customers using four products compared to 22% using four products last year and 10% are using six products compared to 3% last year. All of this shows that DataDog is really succeeding at getting customers in the door and then expanding their relationship.
I don't think I said it off the top, DataDog is an observability platform that focuses on infrastructure monitoring, security, app development, things like that. They want to be like an eye in the sky for developers and infrastructure to make sure everything is running smoothly, performance is going good, and customers are getting a good experience on whatever application they're on.
Brian Withers: Hey, Jamie, let me jump in here. You make a point about those large customers and they're just continuing to add products. There's one more stat that I want to share with members that it just blows me away. The 2010 customers that spend more than $100,000 a year, those customers generate 83% of their annual recurring revenue.
This land and expand strategy of land with one module and then as customers see the power of DataDog just expand over time and the fact that they can support 200 $1 million customers who probably have critical cloud infrastructure needs and really high customer expectations is just amazing and they're really just getting started. I think you mentioned the innovation there and the Fed ramp thing, which gives them even more runway for growth in the coming years.
Louko: Yeah, 100%. When we talk about customers hitting a million dollars in ARR, there's got to be a cap somewhere. That's where there continuous innovation and creation of new products comes in. They're just raising the roof every single time so more customers can keep increasing their spending.
I put continued innovation because if I try to say every single thing that they did in the quarter that was classified as innovation, I would have three slides. They made an acquisition of CoScreen, which allows developers to monitor security, basically, do what DataDog wants to do simultaneously, and they can all do it collaboratively. They also created a new product, which is slipping my mind right now. I will come back to that in just a second.
But they also got Fed ramp authorization, which basically means they can sell to U.S. government agencies and public sector customers, which really opens up their customer base to a whole place that they haven't been able to access yet and get customers from. Government agencies are typically pretty big customers willing to spend a lot of millions of dollars if they really need it. That really has the opportunity to add some of those $1 million dollar customers and grow DataDog a whole bunch.
Brian Withers: Awesome, really exciting quarter for the company. If you're interested in reading more about those innovations, you can check out the DataDog earnings transcript on fool.com, put in the ticker up in the search bar, and will come up is one of the articles.
Brian Withers owns Datadog and Twilio. Jamie Louko owns Chipotle Mexican Grill, Datadog, and Twilio. The Motley Fool owns and recommends Chipotle Mexican Grill, Datadog, 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.
|
The fourth-quarter report for DataDog (NASDAQ: DDOG) was quite remarkable. We can see that, if we see big-name customers growing and spending a lot of money, we would naturally think that the dollar-based net retention rate is also going up if they're expanding their relationships. I don't think I said it off the top, DataDog is an observability platform that focuses on infrastructure monitoring, security, app development, things like that.
|
The fourth-quarter report for DataDog (NASDAQ: DDOG) was quite remarkable. In this video clip from "The Earnings Show" on Motley Fool Live, recorded on Feb. 11, Fool contributors Jamie Louko and Brian Withers pore over the big numbers and are excited about where the company is headed in the next few years. Jamie Louko owns Chipotle Mexican Grill, Datadog, and Twilio.
|
The fourth-quarter report for DataDog (NASDAQ: DDOG) was quite remarkable. Their customers over one million, spending over $1 million dollars a year, grew 114% to 216, 216 customers may not sound like a lot until you realize they're spending over a million dollars. This land and expand strategy of land with one module and then as customers see the power of DataDog just expand over time and the fact that they can support 200 $1 million customers who probably have critical cloud infrastructure needs and really high customer expectations is just amazing and they're really just getting started.
|
The fourth-quarter report for DataDog (NASDAQ: DDOG) was quite remarkable. Their customers over one million, spending over $1 million dollars a year, grew 114% to 216, 216 customers may not sound like a lot until you realize they're spending over a million dollars. Really strong there and they are expecting their growth to keep going almost 70% year-over-year revenue growth, they're guiding for the first quarter.
|
ae478910-c633-4a65-b1d3-a025d497de56
|
718720.0
|
2022-02-24 00:00:00 UTC
|
These 2 Stocks Are All-Stars in the Making
|
DDOG
|
https://www.nasdaq.com/articles/these-2-stocks-are-all-stars-in-the-making-0
|
nan
|
nan
|
Market volatility is high right now, and the stocks of several great companies have been caught up in the big price swings, creating bargain opportunities for savvy investors. Prices for some stocks are falling 30% to 50%, even though the long-term prospects of the companies haven't changed at all.
Let's take a closer look at two potential all-star companies that have been caught up in the broader sell-off. These are stocks that investors can purchase at a discount for even bigger long-term gains.
Image source: Getty Images.
1. Datadog
Datadog (NASDAQ: DDOG) provides monitoring and security software for cloud applications. It combines analytics and cybersecurity functions, and Datadog customers are able to use their own technology more efficiently. On its surface, that's a great start. Assuming that this company has a strong suite of products, they can be really valuable for businesses. It's also a high-growth industry, so there's potential for fundamental improvement.
All the evidence indicates that Datadog is a strong candidate to take advantage of the opportunity. It's ranked highly in Gartner's latest Magic Quadrant for Application Performance Monitoring report, falling into its leadership quadrant. The ranking suggests high product quality.
Datadog's customers are voting with their wallets, too. The company is expanding its relationships with existing customers, and it's performing well among larger clients. Its net retention rate is above 130%, which is strong evidence of customer satisfaction. It's also attracting new customers, which drove 84% revenue growth in its most recent quarter. Those are all bullish signals.
That customer satisfaction and growth contribute to Datadog's expanding economic moat. More than 18,000 companies subscribe to the company's services, and that scale creates a massive advantage over potential competitors that might enter the market in the coming years. Meanwhile, the company is adding new capabilities to an already well-regarded product suite. As it becomes deeply rooted in the day-to-day functions of its customers, it increases switching costs and builds an important barrier against the competition. Wide economic moats are essential for long-term staying power and cash flow stability.
The stock price is still somewhat expensive despite falling about 23.6% from its 2021 all-time high. Its price-to-sales (P/S) ratio is 45, and the forward price-to-earnings (P/E) ratio is around 294. Quality growth stocks with great prospects usually are expensive.
Obviously, that creates risks for investors. If Datadog falters or runs into unforeseen obstacles over the next five years, then investors can expect further volatility. They should also expect to pay a premium to buy tomorrow's all-stars. Datadog might be expensive but can still deliver huge returns if it continues along its business path.
2. CrowdStrike
CrowdStrike Holdings (NASDAQ: CRWD) is a cybersecurity stock that's focused on endpoint protection. Its products prevent employees' devices from falling victim to hacks and malware, which in turn helps secure the network in general.
Cybersecurity has received a lot of attention in recent years. Software and connectivity are touching nearly every aspect of business activity and personal lives. That creates more opportunities for criminals to access valuable data, as we saw with multiple high-profile cyberattacks in recent years. That's encouraging news for companies that offer threat protection, and attention on the topic should ensure that the top cybersecurity stocks enjoy sustained momentum when market conditions allow.
CrowdStrike is considered the leader in endpoint security. It receives stellar marks from Gartner in its Magic Quadrant for Endpoint Protection Platforms report, which places it on the same footing as heavy hitters like Microsoft. Other credible industry publications echo this rating. CrowdStrike rode that quality to a 12% market share, making it the largest vendor in its particular cybersecurity niche.
CrowdStrike reported 125% net revenue retention for its full fiscal year 2021, up from 124% the prior year. It's most recent report, a corporate overview in August, showed a net retention rate of 124.8%.
CrowdStrike added more than 1,600 new subscription customers in Q3 of Fiscal 2022 (ending Oct. 31), a 75% year-over-year increase that brings the total to nearly 15,000. That fueled 63% revenue growth and 67% subscription growth. This expansion is being accomplished with a stable gross margin above 75%, and the business produced more than $123 million in free cash flow in its most recent quarter. That's all great evidence of relative stability in a highly competitive environment.
CrowdStrike is a technology leader in a growth industry, it's growing rapidly, and it's building a wide economic moat. The stock isn't cheap by any means, with a P/S of 28.3 and forward P/E of 182. But the stock is down nearly 41% from its all-time high. It might slide further in the next few months, but we're still looking at a more reasonable entry point today for potential long-term upside.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Ryan Downie owns Microsoft. The Motley Fool owns and recommends 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.
|
Datadog Datadog (NASDAQ: DDOG) provides monitoring and security software for cloud applications. Market volatility is high right now, and the stocks of several great companies have been caught up in the big price swings, creating bargain opportunities for savvy investors. That's encouraging news for companies that offer threat protection, and attention on the topic should ensure that the top cybersecurity stocks enjoy sustained momentum when market conditions allow.
|
Datadog Datadog (NASDAQ: DDOG) provides monitoring and security software for cloud applications. It's ranked highly in Gartner's latest Magic Quadrant for Application Performance Monitoring report, falling into its leadership quadrant. That customer satisfaction and growth contribute to Datadog's expanding economic moat.
|
Datadog Datadog (NASDAQ: DDOG) provides monitoring and security software for cloud applications. Market volatility is high right now, and the stocks of several great companies have been caught up in the big price swings, creating bargain opportunities for savvy investors. CrowdStrike CrowdStrike Holdings (NASDAQ: CRWD) is a cybersecurity stock that's focused on endpoint protection.
|
Datadog Datadog (NASDAQ: DDOG) provides monitoring and security software for cloud applications. Market volatility is high right now, and the stocks of several great companies have been caught up in the big price swings, creating bargain opportunities for savvy investors. That customer satisfaction and growth contribute to Datadog's expanding economic moat.
|
a0c4dfa8-147f-4049-97ee-41dc2c334d8b
|
718721.0
|
2022-02-24 00:00:00 UTC
|
3 Top Tech Stocks to Buy Right Now
|
DDOG
|
https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-right-now-1
|
nan
|
nan
|
Investors looking to invest in the tech sector have hundreds of companies to choose from. While there are many niche players in the space with "nice-to-have" offerings, investors should be focused on stocks where the use cases affirm the company is vital to its customers.
Three stocks that fit that description are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and The Trade Desk (NASDAQ: TTD). Each stock is also trading well off its all-time highs, giving investors an opportunity to own these dominant companies at a discounted price.
Let's find out a bit more about these three tech stocks you should consider buying right now.
Image source: Getty Images.
1. Datadog
With companies utilizing more cloud solutions than ever before, it has become harder for the companies' tech support staff to monitor how each one is functioning. Datadog allows information technology (IT) teams and developers to more easily monitor information flows and app performance to make sure everything is running smoothly. Additionally, Datadog utilizes artificial intelligence (AI) to automate many of these processes, further reducing a company's dependence on software engineers to troubleshoot issues and freeing them up to do actual developmental work.
The services Datadog offers are seeing rapid adoption, showcased by Datadog's 84% year-over-year quarterly revenue growth to $326 million and a 114% increase in high-level customers who spend at least $1 million annually on Datadog services. For the full year, revenue grew 70% to $1.03 billion, but what should excite investors for 2022 is Datadog's accelerating revenue growth that has been demonstrated for multiple quarters in a row.
Q1 2021 Q2 2021 Q3 2021 Q4 2021
Revenue growth (YOY) 51% 67% 75% 84%
Data source: Datadog. YOY = year over year.
Business sped up during 2021 and management will look to capitalize on the success during 2022. Management gave a first-quarter 2022 outlook of 70% revenue growth at the midpoint, which is still much faster than it was growing at the same period during 2021.
Another positive point for Datadog is its 24% full-year free cash flow margin. With positive cash flow, Datadog can add to its already large $1.6 billion cash stockpile each quarter, allowing it to capture market share and purchase other businesses as it sees fit. With 18,800 customers, Datadog has a long way to go before fully penetrating the available market.
2. Snowflake
Raw data can contain powerful information businesses can utilize to make decisions. However, storing and processing it can be difficult without huge dedicated software engineering teams -- something many businesses don't have the financial resources to develop. Snowflake solves this issue by offering companies access to its data storage and processing applications. With Snowflake, businesses can create pipelines to feed other programs from nearly any data source -- even unstructured data.
Snowflake is growing even faster than Datadog, with third-quarter (ending Oct. 31) year-over-year revenue growth of 110% to $313 million. A key metric for Snowflake is its net revenue retention rate, which was 173% for the quarter, meaning customers spent $1.73 this quarter for every $1 they spent during the same time frame last year.
Additionally, Snowflake is seeing rapid growth outside of the U.S. with year-over-year quarterly revenue in the Europe, the Middle East, and Africa region and the Asia-Pacific and Japan region up 174% and 219%, respectively.
With only 5,416 customers utilizing Snowflake and a mere 148 spending more than $1 million annually, Snowflake has plenty of room to expand its reach.
3. The Trade Desk
Websites, podcasts, and connected TV can sell advertising space to companies with The Trade Desk acting as a demand-side broker. The businesses buying the space often generate fantastic returns on advertisement spending because The Trade Desk can provide detailed information about the ad viewers. With The Trade Desk's platform, businesses can set a budget, target an audience, and analyze how their ad spending affects product sales.
While not generating nearly as explosive growth as Snowflake or Datadog, The Trade Desk's fourth-quarter revenue grew year over year at a healthy 24% while full-year revenue growth was 43%. The Trade Desk had a tough Q4 comparison with the huge 2020 U.S. political ad campaign spend. After subtracting this once-every-four-years revenue boost, The Trade Desk improved its Q4 revenue growth rate to 36%. Management also gave positive Q1 guidance, projecting quarterly sales to rise 38% year over year.
With huge partnerships with companies like Walmart and Walgreens Boots Alliance taking full effect during 2022, The Trade Desk is showing its usefulness and I'd expect more partnerships to form throughout the year.
Relative valuation
Because of strong execution and a huge market opportunity, all three stocks have high valuations from a price-to-sales standpoint.
DDOG PS Ratio data by YCharts
When buying the best of the best, investors must be prepared to pay a high price as best-in-class doesn't come cheap. On the flip side, if any of these companies slips up with a bad quarterly earnings report, the stock could experience a volatile price drop.
However, I believe the upside far outweighs the downside for each of these businesses. Technology stacks (Datadog), data streams (Snowflake), and advertising (The Trade Desk) aren't going away and, in many cases, the solutions are just getting started. With each stock down in price at least 20% or more, I believe now is a great opportunity for investors to purchase these businesses on sale. Consider picking them up or adding to an initial position with a minimum three- to five-year holding period.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Keithen Drury owns Datadog, Snowflake Inc., and The Trade Desk. The Motley Fool owns and recommends Datadog, Snowflake Inc., 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.
|
Three stocks that fit that description are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and The Trade Desk (NASDAQ: TTD). DDOG PS Ratio data by YCharts When buying the best of the best, investors must be prepared to pay a high price as best-in-class doesn't come cheap. While there are many niche players in the space with "nice-to-have" offerings, investors should be focused on stocks where the use cases affirm the company is vital to its customers.
|
Three stocks that fit that description are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and The Trade Desk (NASDAQ: TTD). DDOG PS Ratio data by YCharts When buying the best of the best, investors must be prepared to pay a high price as best-in-class doesn't come cheap. The services Datadog offers are seeing rapid adoption, showcased by Datadog's 84% year-over-year quarterly revenue growth to $326 million and a 114% increase in high-level customers who spend at least $1 million annually on Datadog services.
|
Three stocks that fit that description are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and The Trade Desk (NASDAQ: TTD). DDOG PS Ratio data by YCharts When buying the best of the best, investors must be prepared to pay a high price as best-in-class doesn't come cheap. The services Datadog offers are seeing rapid adoption, showcased by Datadog's 84% year-over-year quarterly revenue growth to $326 million and a 114% increase in high-level customers who spend at least $1 million annually on Datadog services.
|
Three stocks that fit that description are Datadog (NASDAQ: DDOG), Snowflake (NYSE: SNOW), and The Trade Desk (NASDAQ: TTD). DDOG PS Ratio data by YCharts When buying the best of the best, investors must be prepared to pay a high price as best-in-class doesn't come cheap. Revenue growth (YOY) 51% 67% 75% 84% Data source: Datadog.
|
608b3d01-fe7a-4cb1-84ce-71c14eab9197
|
718722.0
|
2022-02-23 00:00:00 UTC
|
Should Invesco NASDAQ Next Gen 100 ETF (QQQJ) Be on Your Investing Radar?
|
DDOG
|
https://www.nasdaq.com/articles/should-invesco-nasdaq-next-gen-100-etf-qqqj-be-on-your-investing-radar-0
|
nan
|
nan
|
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $1 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
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. 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
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.08%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 47.50% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Fortinet Inc (FTNT) accounts for about 3.17% of total assets, followed by Zscaler Inc (ZS) and Datadog Inc (DDOG).
The top 10 holdings account for about 21.41% of total assets under management.
Performance and Risk
QQQJ seeks to match the performance of the NASDAQ NEXT GENERATION 100 INDEX before fees and expenses. The NASDAQ Next Generation 100 Index comprises of securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index.
The ETF has lost about -15.28% so far this year and is down about -14.51% in the last one year (as of 02/23/2022). In the past 52-week period, it has traded between $27.74 and $36.23.
The ETF has a beta of 1.28 and standard deviation of 21.29% for the trailing three-year period. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ Next Gen 100 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, QQQJ is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $76.26 billion in assets, Invesco QQQ has $178.12 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.
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
Invesco NASDAQ Next Gen 100 ETF (QQQJ): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Vanguard Growth ETF (VUG): ETF Research Reports
Zscaler, Inc. (ZS): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Fortinet Inc (FTNT) accounts for about 3.17% of total assets, followed by Zscaler Inc (ZS) and Datadog Inc (DDOG). Datadog, Inc. (DDOG): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on 10/13/2020.
|
Looking at individual holdings, Fortinet Inc (FTNT) accounts for about 3.17% of total assets, followed by Zscaler Inc (ZS) and Datadog Inc (DDOG). Datadog, Inc. (DDOG): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on 10/13/2020.
|
Looking at individual holdings, Fortinet Inc (FTNT) accounts for about 3.17% of total assets, followed by Zscaler Inc (ZS) and Datadog Inc (DDOG). Datadog, Inc. (DDOG): Free Stock Analysis Report Alternatives Invesco NASDAQ Next Gen 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Fortinet Inc (FTNT) accounts for about 3.17% of total assets, followed by Zscaler Inc (ZS) and Datadog Inc (DDOG). Datadog, Inc. (DDOG): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco NASDAQ Next Gen 100 ETF (QQQJ), a passively managed exchange traded fund launched on 10/13/2020.
|
3bd36bfa-7e32-48a4-ac96-3a226af700df
|
718723.0
|
2022-02-19 00:00:00 UTC
|
Shiba Inu Has Soared 63% From Its 2022 Low, but Here Are 3 Stocks We Still Like Better
|
DDOG
|
https://www.nasdaq.com/articles/shiba-inu-has-soared-63-from-its-2022-low-but-here-are-3-stocks-we-still-like-better
|
nan
|
nan
|
Controversial meme token Shiba Inu (CRYPTO: SHIB) hit a 2022 low of $0.000019 per token in January, but it has since rocketed back up by 63% to a price of $0.000031 as of Friday morning. While that's a big return in a short time, it's nothing compared to Shiba Inu's 43,800,000% rise in 2021. An initial investment of just $2.29 in the token on Jan. 1 would've made you a millionaire, had you held on until the end of the year.
It's basically impossible to achieve a return of anything approaching that magnitude again from Shiba Inu's current price, and the risks of attempting it might outweigh any potential rewards. Consider as well that the meme token is still down year to date, and down by about 65% from its October peak. That's why three Motley Fool contributors think growth stocks C3.ai (NYSE: AI), DigitalOcean (NYSE: DOCN), and Datadog (NASDAQ: DDOG) are far better investments for your money now.
Image source: Getty Images.
Artificial intelligence for all industries
Anthony Di Pizio (C3.ai): This first-of-its-kind enterprise artificial intelligence (AI) company offers a suite of ready-made applications that can be rapidly customized to meet the needs of businesses in any industry.
Right now, for example, the oil and gas industry provides 35% of C3.ai's revenue. Companies in that sector have found that using its technology allows them to deploy applications 18 to 100 times faster than building them from scratch, which spares them the cost burden of having bloated teams of highly specialized talent in-house. It's increasingly important because those companies are using C3.ai's applications to predict potentially catastrophic system failures and to reduce their carbon emissions, among other things.
The company also has the backing of tech behemoths like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), which collaborate with C3.ai through their cloud services divisions to streamline the development of AI applications to better serve a swath of different industries.
Since its fiscal 2019 (which ended April 30, 2019), C3.ai has grown its customer base by 395%, from 21 to 104. And over the last 12 months alone, it has doubled the number of industries it serves, from seven to 14. The result of that growth is expected to be revenue of $249 million for fiscal 2022, according to analysts' estimates.
If Shiba Inu reclaims its all-time high price of $0.000089 per token from here, that would be a gain of 187%. However, one analyst thinks C3.ai stock could soar by more than 300% in the next 12 months, so in my view, it's a much better pick.
Image source: Getty Images.
Riding the waves of transformation
Jamie Louko (DigitalOcean): DigitalOcean is benefiting from the tailwinds of two major trends today: the transition to the cloud and the rise of small and medium-sized businesses (SMBs). There are 100 million SMBs globally today, and this figure is expected to rise by 14 million annually. Having a presence in the cloud is becoming not just a nice-to-have, but a need-to-have for businesses of all sizes, and DigitalOcean is helping SMBs easily move their digital footprints away from on-premises systems and into the cloud.
DigitalOcean's platform makes intricate cloud solutions easy to understand even for non-expert developers who might drown in the complexity of Amazon's (NASDAQ: AMZN) AWS offering. The company also has a community of developers who provide tutorials on the basic skills needed to deploy cloud applications. Other cloud services providers don't put as much focus on catering to the needs of non-cloud experts -- most of the revenue that AWS and the other behemoths in the industry bring in comes from large enterprises that already have cloud experts on staff. So DigitalOcean has quickly become the place that SMBs go to develop and run cloud applications.
With this role, it has seen impressive adoption. The company has nearly 600,000 SMB customers and $455 million in annual recurring revenue -- up 36% year over year. Established customers are also increasing their use of DigialOcean's offerings: For every $100 that the average client spent on its services in Q3 2020, they spent $116 in Q3 2021. That impressive revenue retention rate has helped it edge toward profitability. The company's net loss in Q3 was just $1.8 million -- equal to 1.6% of revenue -- but its free cash flow of $29 million can easily subsidize this.
DigitalOcean is unrivaled in its efforts to cater to the cloud needs of SMBs, and with major tailwinds propelling it forward, it looks like it could be wildly successful for the next decade. Potential competitors like AWS could try to compete in its niche, but the risk-reward ratio for Amazon would be too high. AWS often deals with multibillion-dollar customers; developing personalized, simple tools for SMBs that could outcompete DigitalOcean's would be an expensive -- and potentially unsuccessful -- effort. So, for now, DigitalOcean dominates its niche, and has an unhindered path forward in an industry growing 27% annually.
Image source: Getty Images.
AI-powered performance monitoring
Trevor Jennewine (Datadog): Time is money in the business world, and when critical systems go down, it can have a material impact on an organization's finances. Datadog helps its clients prevent those types of problems. Its observability platform integrates with more than 500 different technologies, ingesting data from across the IT ecosystem and helping clients ensure their applications, networks, and infrastructure are secure and performing properly.
Datadog's platform is cloud agnostic, meaning it can be deployed across private data centers, public clouds, and hybrid cloud environments. That breadth allows it to capture over 10 trillion data points each day, and it leans on artificial intelligence to surface insights, identify problems, and reduce the time it takes to resolve them. Thanks to all of this, Datadog has become a key enabler of businesses' digital transformations, which has fueled impressive financial results.
Over the past year, the company continued to execute on its land-and-expand growth strategy. Its customer count rose by 35% to 14,170, and as of the end of 2021, 33% of those customers were using four or more of its products, up from 22% at the end of 2020. As a result, revenue soared 70% to $1.03 billion in 2021, and while the company is still losing money on a GAAP basis, free cash flow skyrocketed 201% to $250.5 million. More importantly, Datadog has plenty of room for growth.
The company puts its addressable market at $42 billion in 2022, but believes that figure will rise to $53 billion by 2025 as enterprises continue to invest in digital transformation. On that note, management has consistently demonstrated its ability to execute and expand the business, most recently with its successful push into cloud security. And with established customers using more products over time, their switching costs are rising, making it more difficult for them to cut ties with Datadog. That's why this stock looks like a smart long-term investment, especially when compared to a meme token like Shiba Inu.
10 stocks we like better than Shiba Inu
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 Shiba Inu wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 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. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko owns Amazon and Datadog. Trevor Jennewine owns Amazon. The Motley Fool owns and recommends Alphabet (A shares), Amazon, C3.ai, Inc., Datadog, DigitalOcean Holdings, Inc., 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.
|
That's why three Motley Fool contributors think growth stocks C3.ai (NYSE: AI), DigitalOcean (NYSE: DOCN), and Datadog (NASDAQ: DDOG) are far better investments for your money now. Companies in that sector have found that using its technology allows them to deploy applications 18 to 100 times faster than building them from scratch, which spares them the cost burden of having bloated teams of highly specialized talent in-house. DigitalOcean's platform makes intricate cloud solutions easy to understand even for non-expert developers who might drown in the complexity of Amazon's (NASDAQ: AMZN) AWS offering.
|
That's why three Motley Fool contributors think growth stocks C3.ai (NYSE: AI), DigitalOcean (NYSE: DOCN), and Datadog (NASDAQ: DDOG) are far better investments for your money now. Artificial intelligence for all industries Anthony Di Pizio (C3.ai): This first-of-its-kind enterprise artificial intelligence (AI) company offers a suite of ready-made applications that can be rapidly customized to meet the needs of businesses in any industry. The Motley Fool owns and recommends Alphabet (A shares), Amazon, C3.ai, Inc., Datadog, DigitalOcean Holdings, Inc., and Microsoft.
|
That's why three Motley Fool contributors think growth stocks C3.ai (NYSE: AI), DigitalOcean (NYSE: DOCN), and Datadog (NASDAQ: DDOG) are far better investments for your money now. Artificial intelligence for all industries Anthony Di Pizio (C3.ai): This first-of-its-kind enterprise artificial intelligence (AI) company offers a suite of ready-made applications that can be rapidly customized to meet the needs of businesses in any industry. The company also has the backing of tech behemoths like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), which collaborate with C3.ai through their cloud services divisions to streamline the development of AI applications to better serve a swath of different industries.
|
That's why three Motley Fool contributors think growth stocks C3.ai (NYSE: AI), DigitalOcean (NYSE: DOCN), and Datadog (NASDAQ: DDOG) are far better investments for your money now. The company also has the backing of tech behemoths like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), which collaborate with C3.ai through their cloud services divisions to streamline the development of AI applications to better serve a swath of different industries. DigitalOcean is unrivaled in its efforts to cater to the cloud needs of SMBs, and with major tailwinds propelling it forward, it looks like it could be wildly successful for the next decade.
|
d4ba2b23-20e5-4dc0-9b0f-8e5585b4d6dc
|
718724.0
|
2022-02-18 00:00:00 UTC
|
S&P 500: Fed Risks Market Plunge With Aggressive Rate Hikes
|
DDOG
|
https://www.nasdaq.com/articles/sp-500%3A-fed-risks-market-plunge-with-aggressive-rate-hikes
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Over the past few days, traders have focused intently on the Russia and Ukraine situation. It seems, every jump in indexes and exchange-traded funds (ETFs) such as the SPDR S&P 500 ETF (NYSEARCA:SPY) stock is related to Putin’s latest military movements.
Source: Eviart / Shutterstock.com
And, to be sure, it’s of crucial importance what ends up happening with that geopolitical situation. Here are seven stocks with Russia and Ukraine exposure to steer clear of as long as the crisis persists. However, that’s not the actual key issue that has the most weight over the intermediate outlook for SPY stock and the other major American market indexes. Rather, the crux of the matter is interest rates.
Interest Rates Are A Major Problem
Interest rates have been spiking for a little while now. And I’d argue that this is precisely why certain areas of the market such as speculative growth stocks, meme names, and Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) have fared particularly poorly. As capital starts to come out of the system, the assets with the least fundamental underpinning tend to suffer the most.
7 Hot Stocks That Show No Signs of Cooling Off
Why would this be? Because tech stocks have inherently become a bet on lower interest rates. Over the past few years, investors have taken up the mindset that with interest rates at zero, they should buy as much duration as possible. Duration, in this sense, meaning future cash flows as opposed to profits or dividends today.
As Rates Rise, Near-Term Fundamentals Matter Again
In a world where interest rates are zero, the value of a future dollar earned by Datadog (NASDAQ:DDOG), Snowflake (NYSE:SNOW), or Shopify (NYSE:SHOP) in 2035 is not too much less than a dollar earned by Chevron (NYSE:CVX) today. People are willing to pay exponentially more for a growth security when interest rates are close to zero.
If you run a financial model on a stock, the discount rate is a huge factor in the fair value of a security. Up until not too long ago, we typically used a 10% discount rate, meaning future cash flows were depreciated by 10% per year as you go out into the future. A company with no current profits or cash flows has not too much value in this sort of scenario, because by the time it (hopefully) starts generating profits, the future value on that profit is minimal.
However, in a zero interest rate world, people have cut their discount rates dramatically. After all, if capital is free, you just want to own the biggest fastest-growing tech companies out there, regardless of valuation. And that was very much reflected in valuations until around November of 2021.
The Rate Rally Turns Into A Frenzy
However, this spike switched into overdrive over the past few weeks. Also, and this of of central importance — the spike is in short-term interest rates. Long-term interest rates are moving more slowly, which might give you a false sense of security.
But no, we’re seeing some wild moves — think five standard deviation sort of stuff — over the past couple of weeks.
It started with the Federal Reserve’s most recent interest rate decision. They elected not to raise rates. However, the post-decision press conference left the door open to a surprise 50 basis point rate hike, instead of the expected 25 pointer, in March.
That’s why the market rallied initially but then sold off sharply following the Fed decision. Since then, Fed members such as James Bullard have added fuel to the fire, suggesting that the bank will act aggressively and imminently to stamp out inflation.
And the interest rates drama was just getting started. Europe has added to the panic. The Brits raised interest rates, despite mixed underlying economic conditions. Analysts pointed to out-of-control inflation due to Britain’s electricity crisis as forcing their hand.
Following that up, the European Central Bank’s Christine Lagarde did a terrible job of communicating with the public. While the ECB didn’t hike rates immediately, Lagarde clumsily signaled toward much more hawkish policy going forward. This caught the market off-guard and caused the single biggest spike in European short-term interest rates in the past decade.
Volatility Is Near for SPY Stock
The American credit markets are now pricing in approximately seven rate hikes over the next two years. It seems unlikely that the stock market will be able to withstand that sort of bold rate-hiking campaign without substantial collateral damage. Just removing further stimulus in recent months has helped trigger a brutal sell-off in the technology sector.
It’s also worth remembering that the credit markets are substantially larger than the equity markets in terms of the total amount of assets at there. When you start seeing wild activity in bonds, look out, since volatility is surely on the way. When credit markets broke in 2007, for example, we all know what happened to the stock market not long after.
Bottom Line on SPY Stock
Is the Fed going to hike the economy straight into a recession and cause a big market decline? Not intentionally. But don’t forget that Mr. Powell pushed through a controversial rate hike in late 2018 that helped cause a 20% drop in the S&P 500 before he finally stopped that rate increase cycle.
Like in late 2018, the Fed may push too far, and only let up after the stock market indexes drop dramatically. For now, traders in SPY stock and other such market ETFs must pay close attention to the bond markets. Until they settle down, stocks will be at risk of a sudden decline.
On the date of publication, Ian Bezek 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.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a sizable New York City-based hedge fund. You can reach him on Twitter at @irbezek.
The post S&P 500: Fed Risks Market Plunge With Aggressive Rate Hikes 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.
|
As Rates Rise, Near-Term Fundamentals Matter Again In a world where interest rates are zero, the value of a future dollar earned by Datadog (NASDAQ:DDOG), Snowflake (NYSE:SNOW), or Shopify (NYSE:SHOP) in 2035 is not too much less than a dollar earned by Chevron (NYSE:CVX) today. And I’d argue that this is precisely why certain areas of the market such as speculative growth stocks, meme names, and Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK) have fared particularly poorly. However, the post-decision press conference left the door open to a surprise 50 basis point rate hike, instead of the expected 25 pointer, in March.
|
As Rates Rise, Near-Term Fundamentals Matter Again In a world where interest rates are zero, the value of a future dollar earned by Datadog (NASDAQ:DDOG), Snowflake (NYSE:SNOW), or Shopify (NYSE:SHOP) in 2035 is not too much less than a dollar earned by Chevron (NYSE:CVX) today. Up until not too long ago, we typically used a 10% discount rate, meaning future cash flows were depreciated by 10% per year as you go out into the future. However, in a zero interest rate world, people have cut their discount rates dramatically.
|
As Rates Rise, Near-Term Fundamentals Matter Again In a world where interest rates are zero, the value of a future dollar earned by Datadog (NASDAQ:DDOG), Snowflake (NYSE:SNOW), or Shopify (NYSE:SHOP) in 2035 is not too much less than a dollar earned by Chevron (NYSE:CVX) today. Interest Rates Are A Major Problem Interest rates have been spiking for a little while now. Volatility Is Near for SPY Stock The American credit markets are now pricing in approximately seven rate hikes over the next two years.
|
As Rates Rise, Near-Term Fundamentals Matter Again In a world where interest rates are zero, the value of a future dollar earned by Datadog (NASDAQ:DDOG), Snowflake (NYSE:SNOW), or Shopify (NYSE:SHOP) in 2035 is not too much less than a dollar earned by Chevron (NYSE:CVX) today. Interest Rates Are A Major Problem Interest rates have been spiking for a little while now. However, in a zero interest rate world, people have cut their discount rates dramatically.
|
7767f9e1-9ba1-434a-b366-c39e2dbb1da9
|
718725.0
|
2022-02-18 00:00:00 UTC
|
Is A 30% Fall In New Relic's Stock A Buying Opportunity?
|
DDOG
|
https://www.nasdaq.com/articles/is-a-30-fall-in-new-relics-stock-a-buying-opportunity
|
nan
|
nan
|
New Relic’s stock (NYSE: NEWR) declined by 30% in the last twenty-one trading days. In comparison, the broader S&P500 index fell by 4% over the same period. New Relic develops cloud-based software to help website and application owners track the performances of their services. The company saw its stock fall deeply after Q3 FY 2022 earnings (ended December 2021). Now, is NEWR stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last seven years, there is a 79% chance of a rise in NEWR stock over the next month (twenty-one trading days). See our analysis on New Relic’s Stock Chance Of Rise for more details.
Five Days: NEWR -33%, vs. S&P500 -1.1%; Underperformed market
(<1% event probability)
New Relic’s stock declined 33% over a five day trading period, compared to the broader market (S&P500) fall of 1.1%
A change of -33% or more over five trading days has less than 1% event probability, which has occurred 2 times out of 1800 in the last seven years
Ten Days: NEWR -31%, vs. S&P500 -1.5%; Underperformed market
(<1% event probability)
New Relic’s stock declined 31% over the last ten trading days (two weeks), compared to the broader market (S&P500) fall of 1.5%
A change of -31% or more over ten trading days has less than 1% event probability, which has occurred 14 times out of 1795 in the last seven years
Twenty-One Days: NEWR -30%, vs. S&P500 -4%; Underperformed market
(2% event probability)
New Relic’s stock declined 30% over the last twenty-one trading days (one month), compared to the broader market (S&P500) fall of 4%
A change of -30% or more over twenty-one trading days has a 2% event probability, which has occurred 33 times out of 1784 in the last seven years
Check out how New Relic Peers fare on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Feb 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
NEWR Return -30% -34% 159%
S&P 500 Return -1% -6% 97%
Trefis MS Portfolio Return 3% -7% 265%
[1] Month-to-date and year-to-date as of 2/16/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
New Relic’s stock (NYSE: NEWR) declined by 30% in the last twenty-one trading days. New Relic develops cloud-based software to help website and application owners track the performances of their services. The company saw its stock fall deeply after Q3 FY 2022 earnings (ended December 2021).
|
Based on our machine learning analysis of trends in the stock price over the last seven years, there is a 79% chance of a rise in NEWR stock over the next month (twenty-one trading days). Five Days: NEWR -33%, vs. S&P500 -1.1%; Underperformed market (<1% event probability) New Relic’s stock declined 33% over a five day trading period, compared to the broader market (S&P500) fall of 1.1% A change of -33% or more over five trading days has less than 1% event probability, which has occurred 2 times out of 1800 in the last seven years Ten Days: NEWR -31%, vs. S&P500 -1.5%; Underperformed market (<1% event probability) New Relic’s stock declined 31% over the last ten trading days (two weeks), compared to the broader market (S&P500) fall of 1.5% A change of -31% or more over ten trading days has less than 1% event probability, which has occurred 14 times out of 1795 in the last seven years Twenty-One Days: NEWR -30%, vs. S&P500 -4%; Underperformed market (2% event probability) New Relic’s stock declined 30% over the last twenty-one trading days (one month), compared to the broader market (S&P500) fall of 4% A change of -30% or more over twenty-one trading days has a 2% event probability, which has occurred 33 times out of 1784 in the last seven years Check out how New Relic Peers fare on metrics that matter. Total [2] NEWR Return -30% -34% 159% S&P 500 Return -1% -6% 97% Trefis MS Portfolio Return 3% -7% 265% [1] Month-to-date and year-to-date as of 2/16/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Based on our machine learning analysis of trends in the stock price over the last seven years, there is a 79% chance of a rise in NEWR stock over the next month (twenty-one trading days). Five Days: NEWR -33%, vs. S&P500 -1.1%; Underperformed market (<1% event probability) New Relic’s stock declined 33% over a five day trading period, compared to the broader market (S&P500) fall of 1.1% A change of -33% or more over five trading days has less than 1% event probability, which has occurred 2 times out of 1800 in the last seven years Ten Days: NEWR -31%, vs. S&P500 -1.5%; Underperformed market (<1% event probability) New Relic’s stock declined 31% over the last ten trading days (two weeks), compared to the broader market (S&P500) fall of 1.5% A change of -31% or more over ten trading days has less than 1% event probability, which has occurred 14 times out of 1795 in the last seven years Twenty-One Days: NEWR -30%, vs. S&P500 -4%; Underperformed market (2% event probability) New Relic’s stock declined 30% over the last twenty-one trading days (one month), compared to the broader market (S&P500) fall of 4% A change of -30% or more over twenty-one trading days has a 2% event probability, which has occurred 33 times out of 1784 in the last seven years Check out how New Relic Peers fare on metrics that matter. Total [2] NEWR Return -30% -34% 159% S&P 500 Return -1% -6% 97% Trefis MS Portfolio Return 3% -7% 265% [1] Month-to-date and year-to-date as of 2/16/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
New Relic’s stock (NYSE: NEWR) declined by 30% in the last twenty-one trading days. You will find other useful comparisons for companies across industries at Peer Comparisons. Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
|
50744c6b-9caf-4381-a22a-63786b311bdd
|
718726.0
|
2022-02-17 00:00:00 UTC
|
Aggressive Investors Could Like SoFi Stock While Its ETFs Offer Alternative
|
DDOG
|
https://www.nasdaq.com/articles/aggressive-investors-could-like-sofi-stock-while-its-etfs-offer-alternative
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I recently wrote about 10 exchange-traded funds to buy. In doing my research, I took a closer look at the ETF offerings from SoFi Technologies (NASDAQ:SOFI). While I’ve been a fan of SOFI stock for some time, I’d never really considered any of its funds for inclusion in any of my ETF-related articles.
Source: rafapress / Shutterstock.com
That changed on Feb. 11 when I included the SoFi Next 500 ETF (NYSEARCA:SFYX) in my article 10 ETFs to Buy During the Current Market Correction.
As SoFi continues to grow its product offerings, it only makes sense for many of its 2.9 million members to invest in some of the company’s ETFs.
However, it got me thinking about the adage that investors should buy a mutual fund provider’s stock rather than its mutual funds. That was because active management historically hasn’t been able to match the returns of passive investing.
So, the question is whether the same adage applies to SoFi’s ETFs. Should investors buy one or more of SoFi’s ETFs, own SoFi stock, or a combination of both?
SOFI Stock Is for Aggressive Investors Only
As I said in my last article about SoFi stock, I believe that the company will ultimately make money. That makes SoFi an excellent buy for aggressive investors willing to put up with high volatility due to its current lack of profits.
7 Housing Stocks To Sell if You Think the Boom Is Going To Bust
“To many investors right now, a stock like SoFi is the financial services industry’s version of kryptonite,” I wrote on Jan. 28. “That said, I think it’s important to understand the difference between a business throwing ideas at the wall to see if they stick and one with a plan to become a consumer go-to for financial solutions.”
I see SOFI developing into a much better version of Primerica (NYSE:PRI), an insurance company selling financial products and consolidation loans to middle-income America.
One of the advantages SoFi has over Primerica is that it is more technology-driven. The 2020 acquisition of Galileo for $1.2 billion allowed Sofi to accelerate its move into mobile financial services.
Now that it has a national bank charter, it will leverage back-end technology expertise to quickly launch new products that its millions of members need and want.
As for Galileo’s shareholders, they received SOFI stock for almost three-quarters of the sale price. So you can be darn sure they believe SOFI stock ought to be in the aggressive investor’s portfolio.
What About the SoFi ETFs?
As I said in the intro, I recommended SFYX, in part because it was down 8.3% on the year. Buy-on-the-dip investing makes a lot more sense with ETFs than it does with individual stocks.
As for SFYX’s focus on mid-cap growth stocks, they might be out of favor at the moment, but over the long haul, they’ll do just fine. Three top holdings among its more than 480 stocks include Datadog (NASDAQ:DDOG), Medical Properties Trust (NYSE:MPW), and Apollo Global Management (NYSE:APO). It currently charges zero fees and has $48.3 million in total assets. So if you want a growth component in your portfolio, the fees alone should make you consider it.
Another interesting ETF is the SoFi Social 50 (NYSEARCA:SFYF). It, too, is a growth-focused ETF. It invests in the 50 most-widely held stocks by SoFi Invest clients. The ETF charges 0.29%. Its top three holdings are Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA) and Microsoft (NASDAQ:MSFT).
It also holds popular meme stocks such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC). I’m not a fan of either of those stocks. However, with 50 others, the diversification reduces the company-specific risk associated with those two.
In total, SoFi offers six ETFs. It wouldn’t surprise me if it acquired a thematic-based ETF provider in the future.
The Bottom Line
If you’re toying with the idea of buying SOFI stock, but you’re not an aggressive investor, perhaps you might split the investment in half, buying 50% in SOFI shares through SoFi Invest (they offer fractional shares) and 50% in the no-fee SoFi Next 500 ETF. That lowers your risk profile considerably.
For those that are aggressive, I continue to believe SOFI stock is an excellent long-term buy.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post Aggressive Investors Could Like SoFi Stock While Its ETFs Offer Alternative 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.
|
Three top holdings among its more than 480 stocks include Datadog (NASDAQ:DDOG), Medical Properties Trust (NYSE:MPW), and Apollo Global Management (NYSE:APO). As SoFi continues to grow its product offerings, it only makes sense for many of its 2.9 million members to invest in some of the company’s ETFs. That makes SoFi an excellent buy for aggressive investors willing to put up with high volatility due to its current lack of profits.
|
Three top holdings among its more than 480 stocks include Datadog (NASDAQ:DDOG), Medical Properties Trust (NYSE:MPW), and Apollo Global Management (NYSE:APO). In doing my research, I took a closer look at the ETF offerings from SoFi Technologies (NASDAQ:SOFI). Source: rafapress / Shutterstock.com That changed on Feb. 11 when I included the SoFi Next 500 ETF (NYSEARCA:SFYX) in my article 10 ETFs to Buy During the Current Market Correction.
|
Three top holdings among its more than 480 stocks include Datadog (NASDAQ:DDOG), Medical Properties Trust (NYSE:MPW), and Apollo Global Management (NYSE:APO). Should investors buy one or more of SoFi’s ETFs, own SoFi stock, or a combination of both? SOFI Stock Is for Aggressive Investors Only As I said in my last article about SoFi stock, I believe that the company will ultimately make money.
|
Three top holdings among its more than 480 stocks include Datadog (NASDAQ:DDOG), Medical Properties Trust (NYSE:MPW), and Apollo Global Management (NYSE:APO). As SoFi continues to grow its product offerings, it only makes sense for many of its 2.9 million members to invest in some of the company’s ETFs. What About the SoFi ETFs?
|
7a490bd9-babb-43c0-b24c-73f8b0144161
|
718727.0
|
2022-02-16 00:00:00 UTC
|
My Top Tech Stock to Buy Right Now (and It's Not Even Close)
|
DDOG
|
https://www.nasdaq.com/articles/my-top-tech-stock-to-buy-right-now-and-its-not-even-close
|
nan
|
nan
|
Datadog's (NASDAQ: DDOG) observability and security platforms have seen widespread adoption as the company rapidly gains users of all sizes. Its platform gives businesses the ability to effectively manage their cloud applications and ensure they are running smoothly, and the need for this functionality has only been growing as more consumers adopt cloud-based applications. With this tailwind at its back, Datadog has been able to increase its revenue from $100 million in 2017 to $1 billion in 2021.
The bull case for Datadog was clear in its fourth quarter results -- revenue and net income knocked the socks off analysts' estimates. The company also posted its first GAAP profitable quarter since 2020, along with a major improvement in its customer relationships. All this, combined with continued product innovation, makes me confident Datadog will be able to capitalize on its fast-growing market, which is why it's one of my favorite tech stocks right now by a long shot.
Image source: Getty Images.
Customers love Datadog
Datadog reported $326 million of revenue in its fourth quarter -- up 84% year over year -- driven by large customers expanding their relationships and adopting more of Datadog's offerings. In the year-ago period, only 22% of customers used four or more products, but that figure jumped to 33% most recently.
This has resulted in customers spending more with Datadog too. The number of customers with annual recurring revenue of at least $100,000 grew 63% year over year to 2,010, while customers spending $1 million or more jumped 114% to 216. This highlights how sticky Datadog's platform is to its customers.
This customer relationship expansion has been incredibly profitable for the company. Increases in user engagement represent almost pure profit, so when revenue growth is driven this way, Datadog's profitability improves. The company reported its first GAAP-profitable quarter since Q2 2020, and while it was unprofitable for the year, this should not be a major concern. Datadog is a free-cash-flow machine, generating $251 million in 2021 compared to $83 million the previous year.
Rapid innovation and product expansion
Datadog is a leader in this space, according to Gartner's Magic Quadrant, and with 18,800 customers, it certainly has the opportunity to continue growing its customer relationships. Datadog's land-and-expand strategy relies on continuous innovation and new product rollouts, but that is common for the company.
Last quarter, Datadog introduced a new product, Sensitive Data Scanner, which allows customers to easily identify, classify, and protect any sensitive data they might have. When handling such data, meeting regulatory requirements is key, and Datadog's tool helps its customers remain compliant.
The company also made a small acquisition to add to its product portfolio. CoScreen allows developers to collaborate in real time to respond to security incidents, find bugs in software, and program. In other words, CoScreen can allow engineers and developers to work on projects simultaneously -- something that can't always be done in the programming world. Datadog did not disclose how much it paid for this acquisition, but it could become a core tool in Datadog's product lineup that helps attract more customers and brings them deeper into the product ecosystem.
The company also announced it was granted Federal Risk and Authorization Management Program (FedRAMP) authorization, meaning it can now sell its products to U.S. government agencies and the public sector at large. Very often, government contracts can be large and long-standing, which opens a massive (and profitable) new customer base for Datadog.
Where the company is going
Datadog does face competition in the space from companies like Dynatrace and Splunk, but it has one trait that the competition doesn't: It's cloud-native. While competitors have historically focused on on-premise services, Datadog has been a cloud-focused company, and this has allowed customers to easily access and adopt products faster than competitors have seen.
Its addressable market is large and growing quickly. Management estimates its opportunity will be worth $53 billion by 2025, and if the company continues expanding its product offering in security and work collaboration, it will likely be much bigger than that. Datadog's major competitive advantages and large market opportunity naturally command a high premium, but I think it is worth paying up for. The company is currently valued at 52 times sales -- a nosebleed valuation -- but no competitor is seeing the same top-line growth and customer expansion that Datadog enjoys. As the leader in its industry, this company is one of the best tech stocks to buy today, despite its high valuation.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Jamie Louko owns Datadog. The Motley Fool owns and recommends Datadog 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.
|
Datadog's (NASDAQ: DDOG) observability and security platforms have seen widespread adoption as the company rapidly gains users of all sizes. The bull case for Datadog was clear in its fourth quarter results -- revenue and net income knocked the socks off analysts' estimates. All this, combined with continued product innovation, makes me confident Datadog will be able to capitalize on its fast-growing market, which is why it's one of my favorite tech stocks right now by a long shot.
|
Datadog's (NASDAQ: DDOG) observability and security platforms have seen widespread adoption as the company rapidly gains users of all sizes. Customers love Datadog Datadog reported $326 million of revenue in its fourth quarter -- up 84% year over year -- driven by large customers expanding their relationships and adopting more of Datadog's offerings. Management estimates its opportunity will be worth $53 billion by 2025, and if the company continues expanding its product offering in security and work collaboration, it will likely be much bigger than that.
|
Datadog's (NASDAQ: DDOG) observability and security platforms have seen widespread adoption as the company rapidly gains users of all sizes. Customers love Datadog Datadog reported $326 million of revenue in its fourth quarter -- up 84% year over year -- driven by large customers expanding their relationships and adopting more of Datadog's offerings. Rapid innovation and product expansion Datadog is a leader in this space, according to Gartner's Magic Quadrant, and with 18,800 customers, it certainly has the opportunity to continue growing its customer relationships.
|
Datadog's (NASDAQ: DDOG) observability and security platforms have seen widespread adoption as the company rapidly gains users of all sizes. Customers love Datadog Datadog reported $326 million of revenue in its fourth quarter -- up 84% year over year -- driven by large customers expanding their relationships and adopting more of Datadog's offerings. The number of customers with annual recurring revenue of at least $100,000 grew 63% year over year to 2,010, while customers spending $1 million or more jumped 114% to 216.
|
69d04009-7c26-4884-ac4e-d6086c5975e3
|
718728.0
|
2022-02-16 00:00:00 UTC
|
Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
|
DDOG
|
https://www.nasdaq.com/articles/should-you-invest-in-the-wisdomtree-cloud-computing-etf-wcld
|
nan
|
nan
|
Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Wisdomtree. It has amassed assets over $919.55 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses.
The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.45%, making it one of the cheaper products in the space.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 95.60% of the portfolio.
Looking at individual holdings, Mimecast Ltd (MIME) accounts for about 3.02% of total assets, followed by Datadog Inc - Class A (DDOG) and Tenable Holdings Inc (TENB).
The top 10 holdings account for about 25.51% of total assets under management.
Performance and Risk
So far this year, WCLD has lost about -12.48%, and is down about -25.66% in the last one year (as of 02/16/2022). During this past 52-week period, the fund has traded between $40.13 and $65.33.
The ETF has a beta of 1.19 and standard deviation of 36.44% for the trailing three-year period. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Cloud Computing 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, WCLD is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $941.37 million in assets, First Trust Cloud Computing ETF has $5.61 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%.
Bottom Line
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
WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
Mimecast Limited (MIME): Free Stock Analysis Report
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
Tenable Holdings, Inc. (TENB): Free Stock Analysis Report
Global X Cloud Computing ETF (CLOU): 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.
|
Looking at individual holdings, Mimecast Ltd (MIME) accounts for about 3.02% of total assets, followed by Datadog Inc - Class A (DDOG) and Tenable Holdings Inc (TENB). Datadog, Inc. (DDOG): Free Stock Analysis Report It has amassed assets over $919.55 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market.
|
Looking at individual holdings, Mimecast Ltd (MIME) accounts for about 3.02% of total assets, followed by Datadog Inc - Class A (DDOG) and Tenable Holdings Inc (TENB). Datadog, Inc. (DDOG): Free Stock Analysis Report Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.
|
Looking at individual holdings, Mimecast Ltd (MIME) accounts for about 3.02% of total assets, followed by Datadog Inc - Class A (DDOG) and Tenable Holdings Inc (TENB). Datadog, Inc. (DDOG): Free Stock Analysis Report Alternatives WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Mimecast Ltd (MIME) accounts for about 3.02% of total assets, followed by Datadog Inc - Class A (DDOG) and Tenable Holdings Inc (TENB). Datadog, Inc. (DDOG): Free Stock Analysis Report Launched on 09/06/2019, the WisdomTree Cloud Computing ETF (WCLD) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Cloud Computing segment of the equity market.
|
4a4c7337-0d18-4f46-926b-43519fa42677
|
718729.0
|
2022-02-16 00:00:00 UTC
|
Sitting on Cash? These 2 Stocks Are Great Buys
|
DDOG
|
https://www.nasdaq.com/articles/sitting-on-cash-these-2-stocks-are-great-buys-0
|
nan
|
nan
|
Earnings season is in full swing, with many tech stocks reporting earnings in the past few weeks. With so many companies announcing their latest financial results, it might be hard to decide which companies are the best ones to buy right now. If you are suffering from analysis paralysis and don't know where to deploy cash right now, you might want to consider Twilio (NYSE: TWLO) and Datadog (NASDAQ: DDOG).
Both companies shattered analyst estimates, and they also made announcements that could make the coming decade fruitful for investors. However, both stocks are substantially off their all-time highs, with Twilio being down 57%. At these lowered prices, it could be a good time to invest.
Image source: Getty Images.
Bringing businesses and consumers closer together
Twilio's messaging services to help businesses engage more with their customers have been adopted by more companies than you might think. If a political organization or nominee has encouraged you to vote, or a delivery driver has texted you about your food, you have likely used Twilio. Its messaging services work to create the ultimate customer experience for businesses, but it also helps them aggregate data to personalize a customer's experience.
These operations are critical for any business that has a toe in the digital space -- so almost every business -- and that shines through the company's fourth quarter. Twilio's revenue grew 54% year over year to $843 million, which is especially impressive given the tough comparables the business had. Twilio gets lots of business from political organizations that want to reach voters, and the U.S. presidential election took place in Q3 and Q4 of 2020, so Twilio had a bump in the year-ago period from peaked activity. The company also grew its customer base 16% from this period to 256,000, which is also impressive considering the tough year-over-year comparisons.
That wasn't all that investors liked, however. The company has historically focused on growth at all costs, rather than profitability, which has resulted in net losses. In 2021, the company lost $950 million and its free cash flow was negative $102 million. The company has over $5.3 billion in cash and securities on the balance sheet, so these losses are not a viable concern for the company, but it announced in its fourth quarter that it plans to become profitable on a non-GAAP (adjusted) basis in 2023. The company's growth is finally going to start paying off, and long-term investors should be excited about that.
Twilio's valuation has been crushed in line with its share price, but that does not mean this business is down and out. Rather, the future of this business seems to look strong. Management noted that it expects organic revenue growth -- which is growth excluding acquisitions it may make -- to be above 30% for the next three years. With shares trading at less than 12 times sales -- a low valuation compared to most tech and software-as-a-service companies -- 30% organic growth and higher total growth for the foreseeable future could mean that shares are wildly undervalued today.
An innovation extraordinaire
Datadog serves as an eye in the sky for over 18,800 developers, helping them monitor application uptime, security, and performance. It is one of the leading platforms in the application management space according to Gartner's (NYSE: IT) Magic Quadrant, and to maintain this lead the company announced numerous product roll-outs in Q4.
Datadog is known for its continuous innovation and implementation of new products, and that did not stop this quarter after it announced one new product and an appealing acquisition. The acquisition of CoScreen will allow developers to troubleshoot and monitor applications collaboratively, and Data Scanner -- Datadog's new product – can allow customers to search for, detect, and protect sensitive data in application logs.
This nonstop innovation is resulting in rapid expansion of customer relationships. Naturally, with more products on offer, customers are adopting more of them and becoming more integrated into the Datadog ecosystem. Thirty-three percent of customers use four or more products and 10% use more than six, compared to 22% and 3%, respectively, in the year-ago quarter. With increased adoption, the company has continued to grow revenue at breakneck paces. This quarter, revenue grew 84% year over year, and that is after it grew 56% year over year in Q4 2020.
The company isn't planning on stopping this trend of innovation. It brought in over $250 million in free cash flow, which will likely go toward investing in its research and development to create new products, partnerships to expand the utility of the platform, and its artificial intelligence engine, Watchdog. At 34 times forward sales, the company's valuation is not cheap. However, Datadog looks poised to continue seeing customer expansion and growth, which is why I love Datadog today.
10 stocks we like better than Twilio
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 Twilio wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Jamie Louko owns Datadog and Twilio. The Motley Fool owns and recommends Datadog and Twilio. 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.
|
If you are suffering from analysis paralysis and don't know where to deploy cash right now, you might want to consider Twilio (NYSE: TWLO) and Datadog (NASDAQ: DDOG). An innovation extraordinaire Datadog serves as an eye in the sky for over 18,800 developers, helping them monitor application uptime, security, and performance. It brought in over $250 million in free cash flow, which will likely go toward investing in its research and development to create new products, partnerships to expand the utility of the platform, and its artificial intelligence engine, Watchdog.
|
If you are suffering from analysis paralysis and don't know where to deploy cash right now, you might want to consider Twilio (NYSE: TWLO) and Datadog (NASDAQ: DDOG). Twilio's revenue grew 54% year over year to $843 million, which is especially impressive given the tough comparables the business had. With shares trading at less than 12 times sales -- a low valuation compared to most tech and software-as-a-service companies -- 30% organic growth and higher total growth for the foreseeable future could mean that shares are wildly undervalued today.
|
If you are suffering from analysis paralysis and don't know where to deploy cash right now, you might want to consider Twilio (NYSE: TWLO) and Datadog (NASDAQ: DDOG). Bringing businesses and consumers closer together Twilio's messaging services to help businesses engage more with their customers have been adopted by more companies than you might think. The company has over $5.3 billion in cash and securities on the balance sheet, so these losses are not a viable concern for the company, but it announced in its fourth quarter that it plans to become profitable on a non-GAAP (adjusted) basis in 2023.
|
If you are suffering from analysis paralysis and don't know where to deploy cash right now, you might want to consider Twilio (NYSE: TWLO) and Datadog (NASDAQ: DDOG). Bringing businesses and consumers closer together Twilio's messaging services to help businesses engage more with their customers have been adopted by more companies than you might think. Twilio's revenue grew 54% year over year to $843 million, which is especially impressive given the tough comparables the business had.
|
de7fa337-5501-4e08-8132-e30bd02d738b
|
718730.0
|
2022-02-13 00:00:00 UTC
|
Datadog Barking Up the Right Tree; Outlook Healthy
|
DDOG
|
https://www.nasdaq.com/articles/datadog-barking-up-the-right-tree-outlook-healthy
|
nan
|
nan
|
Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. With the pandemic accelerating digital and cloud trends, the SaaS cloud observability company multiplied its valuation in a relatively short period. The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again.
Updating his hypothesis and raising his price target was Brian White of Monness, who elaborated that Datadog posted revenues up 84% year-over-year, an impressive metric considering last year’s pandemic-driven profits. Additionally, the company bested Wall Street consensus estimates on its earnings per share, and provided a record operating margin.
While the near-term may prove uncertain for DDOG and its tech peers, its outlook appears strong.
White rated the stock a Buy, and raised his price target to $228 from $220. This new target now suggests a 12-month upside of 36.20%.
Noting that theearnings call“bubbled with optimism, and was justified given the company’s performance,” the five-star analyst added that Datadog saw increases in product use by existing customers, as well as an expanding product offering in general.
All of this robust growth, and White does not see it slowing down any time soon. He believes that “the combination of an improving global economy and accelerated digital transformation initiatives, driven by the pandemic, bodes well for demand around next-gen observability solutions, benefitting Datadog.”
He went on to assert that the stock may “command a premium valuation relative to other next-gen software vendors.” Even better, White is not alone in his sentiment. On TipRanks, DDOG has an analyst rating consensus of Strong Buy, based on 14 Buy, two Hold, and one Sell rating. The average Datadog price target is $214.63, indicating a possible 12-month upside of 28.21%.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again. Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. While the near-term may prove uncertain for DDOG and its tech peers, its outlook appears strong.
|
On TipRanks, DDOG has an analyst rating consensus of Strong Buy, based on 14 Buy, two Hold, and one Sell rating. Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again.
|
On TipRanks, DDOG has an analyst rating consensus of Strong Buy, based on 14 Buy, two Hold, and one Sell rating. Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again.
|
On TipRanks, DDOG has an analyst rating consensus of Strong Buy, based on 14 Buy, two Hold, and one Sell rating. Going public in September 2019, Datadog, Inc. (DDOG) was in the right place at the right time. The tech-wide sell-off over the last quarter knocked DDOG off of its perch temporarily, although the company nonetheless managed to pull off phenomenal earnings last week, and investors are interested yet again.
|
6ba2890f-fc18-43c5-99a3-2f2456dcdfbd
|
718731.0
|
2022-02-11 00:00:00 UTC
|
Datadog (DDOG) Q4 Earnings Beat Estimates, Revenues Up Y/Y
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-q4-earnings-beat-estimates-revenues-up-y-y
|
nan
|
nan
|
Datadog DDOG reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. The bottom line also improved from non-GAAP earnings of 6 cents reported in the year-ago quarter.
The company’s net revenues of $326 million surpassed the consensus mark by 12.03%. The figure increased 84.2% year over year.
Quarter Details
Steady customer additions drove the top line in the fourth quarter. Datadog had more than 18,800 customers at the end of the fourth quarter, up from 14,200 in the year-ago quarter.
Of these customers, 2,010 have an annual run rate (ARR) of $100K or more, up from 1,228 in the year-ago quarter. These customers generate about 83% of total ARR.
As of the end of the fourth quarter, 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.
Datadog’s dollar-based retention rate was above 130% in the fourth quarter, driven by increased usage and adoption of existing and new products.
During the fourth quarter, APM suite and log management products contributed significantly to the top line. Newer products launched since 2019 have been adopted by customers quite well as they contributed $100 million in ARR in fiscal 2021.
Datadog announced a global strategic partnership with Amazon Web Services to integrate further into the Amazon marketplace to accelerate growth. In 2021, Datadog launched 80 new integrations covering cloud, CDN, web platforms and automation platforms, which have strengthened the company’s presence in the market.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Operating Details
In the fourth quarter, Datadog’s adjusted gross margin increased 320 basis points (bps) on a year-over-year basis to 80.4%.
Research & development, as a percentage of revenues, expanded 260 bps to 40.8%, driven by increased investments in Datadog’s platform.
Sales and marketing expenses, as a percentage of revenues, declined 660 bps to 27.3%. General & administrative expenses, as a percentage of revenues, contracted 130 bps to 8.8%.
Datadog reported non-GAAP operating income of $71 million compared with $18 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Datadog had cash, cash equivalents and marketable securities of $1.6 billion compared with $1.5 billion as of Sep 30, 2021.
Operating cash flow was $116 million in the reported quarter, up from $67.4 million reported in the previous quarter.
Free cash flow during the quarter was $107 million compared with $57.1 million in the prior quarter.
Guidance
For the first quarter of 2021, Datadog anticipates revenues between $334 million and $339 million. Non-GAAP earnings are expected to be 11-12 cents per share.
Non-GAAP operating income is expected in the range of $36 million to $41 million.
For full-year 2022, Datadog anticipates revenues between $1.51 billion and $1.53 billion. Non-GAAP earnings are expected between 45 cents and 51 cents.
Non-GAAP operating income is expected in the range of $160 million to $180 million.
Zacks Rank & Stocks to Consider
Currently, Datadog carries a Zacks Rank #4 (Sell).
Datadog’s shares have rallied 48.5% compared with the Zacks Computer and Technology sector’s return of 3.6% in the past year.
Some better-ranked stocks in the same sector are Analog Devices ADI, Veeco Instruments VECO and Agilent Technologies A.
Analog Devices, Agilent Devices and Veeco Instruments sport Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeco Instruments shares have rallied 30.5% in the past year.
VECO is slated to report fourth-quarter 2021 results on Feb 16.
Agilent Technologies’ shares have surged 11.6% in the past year.
Agilent is scheduled to report first-quarter 2022 results on Feb 22.
Analog shares have returned 1.8% compared with the Zacks Computer and Technology sector’s growth of 3.6% in the past year.
ADI is slated to report first-quarter 2021 results on Feb 16.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI): Free Stock Analysis Report
Agilent Technologies, Inc. (A): Free Stock Analysis Report
Veeco Instruments Inc. (VECO): 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.
|
Datadog DDOG reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. Datadog, Inc. (DDOG): Free Stock Analysis Report The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free.
|
Datadog DDOG reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog reported non-GAAP operating income of $71 million compared with $18 million in the year-ago quarter.
|
Datadog DDOG reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. 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 fourth quarter, Datadog’s adjusted gross margin increased 320 basis points (bps) on a year-over-year basis to 80.4%.
|
Datadog DDOG reported fourth-quarter 2021 non-GAAP earnings of 20 cents per share, which beat the Zacks Consensus Estimate by 81.82%. Datadog, Inc. (DDOG): Free Stock Analysis Report Research & development, as a percentage of revenues, expanded 260 bps to 40.8%, driven by increased investments in Datadog’s platform.
|
83cc1234-3cce-413a-9ee5-233ae2c03785
|
718732.0
|
2022-02-11 00:00:00 UTC
|
First Week of DDOG April 1st Options Trading
|
DDOG
|
https://www.nasdaq.com/articles/first-week-of-ddog-april-1st-options-trading
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options become available this week, for the April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $175.00 strike price has a current bid of $12.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $175.00, but will also collect the premium, putting the cost basis of the shares at $162.35 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $177.65/share today.
Because the $175.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. 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 7.23% return on the cash commitment, or 53.89% 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 $175.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $180.00 strike price has a current bid of $12.85. If an investor was to purchase shares of DDOG stock at the current price level of $177.65/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $180.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.56% if the stock gets called away at the April 1st 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 $180.00 strike highlighted in red:
Considering the fact that the $180.00 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 49%. 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 7.23% boost of extra return to the investor, or 53.93% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 59%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $177.65) to be 55%. 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.
|
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 $180.00 strike highlighted in red: Considering the fact that the $180.00 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 April 1st expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $180.00 strike highlighted in red: Considering the fact that the $180.00 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 April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 1st 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 $180.00 strike highlighted in red: Considering the fact that the $180.00 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 April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new April 1st 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 $180.00 strike highlighted in red: Considering the fact that the $180.00 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 April 1st expiration.
|
8dac9798-41c6-482d-a988-939b257bb516
|
718733.0
|
2022-02-10 00:00:00 UTC
|
Datadog (DDOG) Q4 2021 Earnings Call Transcript
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-q4-2021-earnings-call-transcript
|
nan
|
nan
|
Image source: The Motley Fool.
Datadog (NASDAQ: DDOG)
Q4 2021 Earnings Call
Feb 10, 2022, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Q4 2021 Datadogearnings conference call My name is John, and I'll be your operator for today's call. [Operator instructions] And I will now turn the call over to Yuka Broderick, head of investor relations.
Yuka Broderick -- Head of Investor Relations
Thank you, John. Good morning and thank you for joining us to review Datadog's fourth quarter and fiscal year 2021 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 first quarter and the fiscal year 2022, our gross margins and operating margins, including investments in R&D and go-to-market, our strategy, our product capabilities, and our ability to capitalize on market opportunities.
The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and are subject to a variety of risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our Form 10-Q for the quarter ended September 30, 2021. Additional information will be made available in our upcoming Form 10-K for the year ended December 31, 2021 and other filings and reports that we may file with the SEC.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
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. We are very pleased with our performance in Q4 where we showed high growth at scale as well as strong business efficiencies. Looking back at 2021, not only do we continue to see a very strong demand environment, we also kept innovating at a rapid pace. And our team executed extremely well to help our customers manage complexity in the cloud area.
Let's start with a quick summary of Q4. Revenue was $326 million, an increase of 84% year over year and above the high end of our guidance range. We had about 18,800 customers, up from about 14,200 at the end of last year. We ended the quarter with about 2,010 customers with ARR of $100,000 or more, up from 1,228 at the end of last year.
These customers generated about 83% of our ARR. We had 216 customers with ARR of $1 million or more, which is more than double the 101 we had at the end of last year. The leverage and efficiency of our business model is coming through with free cash flow of $107 million. And our dollar-based net retention rate continued to be over 130% as customers increase their usage and adopted our newer product.
At a high level, positive business trends from recent quarters continued in Q4. Business growth from existing customers exceeded our expectations this quarter. And we saw strong growth across all the products in our platform in all business segments. We had record new logo ARR in Q4, including some large new enterprise wins.
And churn remains low and in line with historical rates. All these factors together led to another record quarter of ARR added. Next, our platform strategy continues to resonate in the market. As of the end of Q4, 78% of customers were using two or more product, up from 72% a year ago.
33% of customers were using four or more products, up from 22% a year ago. And as a sign of further adoption of our platform, we saw that 10% of our customers were using six or more product, which is up from 3% last year. We saw strong growth across our platform in Q4. Year-over-year growth of infrastructure monitoring ARR has accelerated in Q4 compared to Q3.
In addition to that, APM suite and log management products continue to be in hyper-growth mode. And we're very pleased to report that our newer products added about $100 million in ARR in 2021. These are the newer products we launched in 2019, which excludes core infrastructure, core APM, and log management. Now let's move on to product and R&D, where our teams have not been slowing down and delivered another strong quarter of innovation.
We announced the general availability of Sensitive Data Scanner in December. Sensitive Data Scanner gives customers an easy and cost-effective method to discover, classify, and protect sensitive information. With modern applications, data moves across many important teams, making it difficult to know when services are storing sensitive data. This is particularly important for enterprises in regulated industries like healthcare or financial services.
Sensitive Data Scanner is available today for log management, and we'll be working to extend it into other areas of the platform in 2022. We also announced this morning the acquisition of CoScreen, a screen-sharing platform that allows participants to interact with a joint work space in real time. Engineering is a team sport. CoScreen lets us bring individual work into a shared team environment.
And unlike general purpose video conferencing tools, which are one too many and focus on presentation and conversation, CoScreen is many to many, allowing multiple participants to share and collaborate in each other's windows as if they were local applications. We believe this will help our customers in a number of use cases such as incident response and aligns with our founding goal of breaking down silos between teams. Now let's take a moment to review our accomplishments in 2021. We ended the year with 13 generally available products, up from nine at the end of 2020.
We significantly extended our visibility capabilities in 2021. In infrastructure monitoring, we made it even easier to instrument and monitor. We launched over 80 new integrations covering cloud, CDN, web platforms, automation platforms, and more. We now have over 500 integrations and continue to go deeper into cloud platforms, including AWS, Azure, and GCP.
We launched network device monitoring for physical network devices and appliances. We created new container-centric views as our customers continue adopting Kubernetes at massive scale. On the serverless front, we have expanded our coverage to include visibility into not only the functions customers develop, but also the ecosystem of data, security, and routing services that surround them. And we launched a beta of universal service monitoring, which captures service level health and performance without needing to modify any application code.
Our APM suite was named a leader in the Gartner Magic Quadrant in 2021, and we doubled down on innovation in APM. We expanded Real User Monitoring meaningfully, particularly for Android and iOS mobile devices. we launched Session Replay, database monitoring and automated tracking of faulty deployment. We expanded Synthetic Monitoring with support of numerous new browsers and locations.
In Continuous Profiler, we added support to profile many new languages such as .NET, Ruby, PHP, CC++, and Node.js. And we invested to get close with developers day-to-day experience with synthetic testing in CI pipelines detecting problems before they happen in production. They are tracking now covering front-end devices and back-end services and source code integration enabling developers to tie production to the right line of code. In log management, we continue to aggressively invest, providing more sophisticated analytical and governance capabilities, and giving our customers more flexibility with data storage and retention.
Our improvements unlock many sophisticated use cases, for example, in cybersecurity and business analysis. We also announced Online Archives, a new long-term data store for extremely large data volumes. Now further expanding observability to development workflows, we launched CI Visibility to help developers ship faster and more safely. And going beyond observability, we launched our Cloud Security Platform, including Cloud SIEM, Cloud Security Posture Management, and Cloud Workload Security.
In addition to those, our application security product is currently in beta. And we're now very pleased with our early momentum in security as we have thousands of customers using our cloud security products today. We also kept opening up Datadog as a platform with the release of Datadog apps. And finally, we'll continue to invest and innovate with Watchdog, Datadog's AI engine.
Watchdog can automatically detect and correct anomalies. And we've been busy extending Watchdog to provide information in context throughout our platform. I want to thank our engineering and product teams for their hard work and their relentless focus on our customers. Now moving on to sales and marketing.
Earlier this month, we announced the promotion of Sean Walters to chief revenue officer. This is a well-deserved promotion for Sean, who has been an enterprise sales leader at Datadog for four years now and have shown excellence in building strong teams and delivering high productivity. We've all been impressed with his performance over the past few quarters as well. Sean has a deep experience in the field with over 20 years of increasing responsibilities in software sales, and we are excited to see him build on his successes as CRO.
In addition to this, we are pleased to have received a FedRAMP moderate authorization. As a result, we can now sell to U.S. Federal Government agencies as well as the other public sector customers who use FedRAMP as an indicator of compliance and security. We have been working to build our go-to-market teams for the public sector, and we intend to expand on those efforts aggressively.
We also announced a global strategic partnership with AWS. This is a recognition of our success and growth with AWS and our commitment to further invest to accelerate our joint opportunities. Among the areas of further partnership, we have already integrated Datadog more tightly into the AWS marketplace. We are also working with AWS to build deeper integrations not only for observability, but also for security use cases, and we are also planning to extend our joint go-to-market activities.
Meanwhile, our sales teams continue to execute at a very high level. So let's discuss some wins for Q4. First, we had a six-year land deal with a major U.S. airline.
This customer has chosen Datadog as the de facto monitoring solution for all new IT projects and applications. They plan to start with six products in the Datadog platform with an expectation to expand significantly with more teams and applications over time. Next, we had a seven-figure up-sell with a major European car company. Prior to using Datadog, this customer has five disparate monitoring tools, which created focus alerts while leaving gaps in coverage.
With Datadog, they were able to break down silos between teams and reduce the frequency and duration of outages. Next, we had an up-sell to add figures of ARR with a major financial infrastructure company. This customer has consolidated multiple monitoring tools in Datadog, helping them ensure stability and support growth. This customer estimate savings of 45% by migrating to Datadog.
And the up-sell also includes new products such as Cloud SIEM, Cloud Workload Security, and Cloud Security Posture Management. And this customer now uses 10 Datadog products. Next, we had a seven-figure up-sell with a multinational beverage conglomerate. This expansion makes Datadog their global observability standards with enterprise adoption across six international zones.
Thanks to Datadog log correlation, what used to take three people an hour of log data gathering, now it takes one person less than 10 minutes. And finally, we wanted to spend some time discussing our largest-ever multimillion dollar land deal with a major media company. This media conglomerate sees massive amounts of traffic with this customer-facing content. And the most critical content such as live sports and entertainment requires highly optimized observability.
This customer also decided to embark upon a significant digital transformation project, eliminating these data centers over time in favor of cloud. This operational overhaul hinged on proper end-to-end observability. But the customers' existing monitoring solutions failed to innovate quickly enough to support his growth and increasing complexity. In addition, reliance in open-source tooling was a strain on engineering resources.
Datadog provided a single integrated cloud solution, and the customer plans to replace eight different commercial open source tools with the Datadog platform, starting with five of our products. So as you can see, our go-to-market teams are successfully helping both new and existing customers get value out of Datadog. And I want to congratulate them for their incredible work this quarter. Now looking ahead to 2022 and beyond.
We continue to see digital transformation and cloud migration as critical for our existing and prospective customers. The cloud and other next-gen technologies are creating complexity that customers need to understand and manage. Meanwhile, security threats can occur anywhere in this broad and dynamic set of infrastructure and applications, making identifying vulnerability and attacks absolutely crucial. So there's a lot of demand out there for observability and security for modern stack.
As a result, we continue to feel that we are still very early with respect to our products and our market opportunity. And looking forward to 2022, we will make further progress in expanding the Datadog platform. We have a lot to do, and we're excited about what's in front of us. On a final note, we feel that 2021 was a very successful year for Datadog, which we recognize, and it's been a tough time for many others.
This is why we're happy to report that together with our employees, Datadog donated over $3 million to nonprofit global organizations at the end of the year, and we look forward to giving back more to our communities in 2022. With that, I will turn the call over to our CFO for a review of financial performance and guidance. David?
David Obstler -- Chief Financial Officer
Thanks, Olivier. In summary, we had a very strong Q4 and fiscal year 2021. Revenue was $326 million, up 84% year over year and up 21% quarter over quarter. Usage growth with our existing customers exceeded our expectations.
Customers are finding value from adopting more products on our platform. And new logo ARR grew robustly in Q4. Let's go into some more of the details. First, growth of existing customers was strong in Q4.
And our dollar-based net retention rate remained above 130% for the 18th consecutive quarter. Usage growth was very strong. Our customers expanded the usage of our largest products meaningfully. Infrastructure monitoring year-over-year ARR growth accelerated from Q3 levels.
And the APM suite and log management products remain in hyper-growth mode. And our newer products are all growing very rapidly. We also saw strong ARR growth in each geographical region. North America, EMEA, and APAC all accelerated on a year-over-year basis compared to Q3.
Our go-to-market teams delivered a strong quarter in new logos and new logo ARR. We added 1,300 customers sequentially, a new record for us. And new logo ARR was also a record and included our largest ARR land ever, as Olivier discussed earlier. Remember that given our usage-based revenue model, new logo wins generally do not immediately translate into meaningful revenue.
Our platform strategy continues to resonate with customers with 78% of our customers using two or more products, 33% using four or more products and 10% using six or more Datadog products as of the end of Q4. Finally, churn has remained low. Our dollar-based gross retention rate has gradually improved over the years and is now in the mid to high 90s, and it's similar across customer segments and major products. Turning to billings.
Billings were $408 million, up 86% year over year. Billings duration in Q4 were similar to the year ago quarter and within the range we've seen historically. Remaining performance obligations, or RPO, was $815 million, up 88% year over year. And contract duration was similar to the year ago quarter.
Current RPO growth was over 80% year over year. We continue to believe revenue is a better indicator of our business trends than billings and RPO as those can fluctuate relative to revenue based on the timing of invoicing and the duration of customer contracts. Now let's review the income statement. As a reminder, 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 $262 million, representing a gross margin of 80%. This compares to a gross margin of 78% last quarter and also 78% in the year ago quarter. As we discussed on last quarter's call, we saw efficiencies in cloud costs reflected in our cost of goods sold in the quarter.
In the medium to long term, we continue to expect gross margin to remain in the high 70s range. Operating income was $71 million or a 22% operating margin compared to an operating income of $18 million with a 10% margin in the year ago quarter. We are experiencing significant business efficiencies on strong revenue growth. This is occurring despite continued aggressive investments in our long-term opportunities, particularly in R&D and go-to-market.
Finally, in Q4, we hosted our Dash user conference virtually and a strong presence at AWS re:Invent. Turning to the balance sheet and cash flow statements. We ended the quarter with $1.6 billion in cash, cash equivalents, restricted cash, and marketable securities. And cash flow from operations was a strong $116 million in the quarter.
After taking into account, taking into consideration capex and capitalized software, free cash flow was $107 million with a free cash flow margin of 33%. I want to briefly summarize our fiscal 2021 results. Revenue was $1.03 billion, up 70% year over year. We generated $165 million positive in operating income for a 16% operating margin compared to $64 billion with an 11% operating margin in 2020.
And we generated $251 million in free cash flow at a 24% margin in 2021 compared to $83 million at a 14% margin in 2020. I want to thank all Datadog employees for their hard work and strong execution throughout 2021. Now for our outlook for the first quarter and fiscal year 2022. We continue to believe we are in early days of our opportunity in observability.
And we are at the very beginning of our potential in-cloud security and developer-focused observability. At 18,800 customers, we believe we are still very early in our penetration of potential customers worldwide. And we see opportunities broadly across industries and customer sizes. As we look on to 2022, we believe companies have learned to manage around the potential business disruptions and remote work life over the past couple of years.
And we believe that the need for companies to embark upon digital transformation and cloud migration projects is higher than ever in our strategic imperative to drive competitive advantage. So we are initiating our fiscal 2022 guidance, which includes continued high growth. With our usual conservatism applied, our outlook is as follows. For the first quarter, we expect revenues to be in the range of $334 million to $339 million, which represents 70% year-over-year growth at the midpoint.
Non-GAAP operating income is expected to be in the range of $36 million to $41 million. And non-GAAP net income per share is expected to be in the $0.10 to $0.12 range per share based on approximately 348 million weighted average diluted shares. For the full year fiscal 2022, we expect revenues to be in the range of $1.51 billion to $1.53 billion, which represents 48% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be in the range of $160 million to $180 million.
And non-GAAP net income per share is expected to be in the range of $0.45 to $0.51 per share at approximately 350 million weighted average diluted shares outstanding. And now some notes on the guidance. As usual, when providing guidance, we use more conservative assumptions than we have seen in our historical results. Our strategic focus remains to invest aggressively in R&D and go-to-market to optimize for our long-term growth.
Next, our model assumes greater expenses related to travel and in-person events going forward, but we remain flexible depending on further COVID developments. And our highest priority is protecting the health of our employees. Finally, as it relates to our capital expenditures, we are catching up on office build-outs and expect capex as a percent of sales to roughly double compared to 2021. In conclusion, we are very pleased with our results in Q4 and 2021.
We continue to innovate rapidly and broaden our platform capabilities with many more products planned to be launched in 2022. We have grown our go-to-market opportunities, including in the public sector with our FedRAMP moderate authorization and deepening our relationships with our cloud partners. And across the company, we are working hard to execute against our opportunities in 2022 and beyond. And with that, we will open the call for questions.
Operator, let's begin the Q&A.
Questions & Answers:
Operator
Thank you. [Operator instructions] And our first question is from Raimo Lenschow from Barclays.
Raimo Lenschow -- Barclays -- Analyst
Congratulations. This was an amazing quarter. Olivier, you mentioned a higher usage in this quarter. What's driving that? Is that just kind of people standardizing? Is it just traffic as the clients getting better? So -- because that's kind of a very, very strong number.
What are the factors there? Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
I don't think there's one specific factor that's driving it. I think it's a combination of everyone's digital transformation, cloud migration still happening and happening with the, I would say, the historical rate we've seen through the history of the company. It's that plus us covering more and more surface with those customers, having more product that they can adopt and they can grow into. And so that's what we saw through the quarter.
We did see -- like this is Q4, right? So we did see the same compression at the end of the quarter as we see every year. It was also a bit more pronounced like it was last year. We've seen them to be a bit more pronounced in a post-COVID world. But overall, the quarter was very, very strong and definitely stronger than last year.
Raimo Lenschow -- Barclays -- Analyst
OK. And then one follow-up on that one. You talked about some of the very big wins and how they are consolidating on you. Do you see that consolidation about more in-house build tooling and open source tools? Or is it also consolidating like some of the kind of more established competitors in the space, in the kind of upper APM log areas, etc.?
Olivier Pomel -- Co-Founder and Chief Executive Officer
It's a mix of both. Really, it follows the distribution of tooling out there. Like whatever customers have is what they end up consolidating on us. And this movement, we're still early in this consolidation movement.
We see it happen, I would say, maybe a bit more often than we used to. I mean we're mentioning a couple in everyearnings callat this point, with the large ones fairly notable. But we expect to see more of that in the future, but not necessarily right away.
Raimo Lenschow -- Barclays -- Analyst
OK. Perfect. Congratulations. Well done.
Thank you.
Operator
Our next question is from Kash Rangan from Goldman Sachs.
Kash Rangan -- Goldman Sachs -- Analyst
Thank you so much. What a superb quarter, Olivier. I'm curious to get your thoughts on a couple of things. One is as the product suite broadens out, how are you thinking about distribution? Are you going to have more specialized distribution attacking, say, the DevOps market or the AppSec market in your core markets in APM and monitoring? And I have a follow-up question.
Thank you so much.
Olivier Pomel -- Co-Founder and Chief Executive Officer
So we're open to whatever we work. We still haven't made any changes to the way we distribute. We still have one sales force that sells everything. We still land largely with infrastructure and then expand from there.
And we actually see some proof points that we can get some very good wins that way. I mean I think we mentioned on the call the fact that one of our very large customers in finance adopted our security suites. And that was done with our standard land-and-expand motion. So we see that working in at least some cases.
That being said, as we fully mature our newer product, especially the security product, we might have to have -- to get some as we go to market, but we're not there yet.
Kash Rangan -- Goldman Sachs -- Analyst
Got it. And second and final, as you look at the consumption model, when trends are improving, obviously, those revenue outcomes can be as impressive as the ones that you have. As you've become a larger company, are you contemplating things to minimize the volatility of these results and have a little bit more predictability on the other positive side? And that would mean like a Snowflake gives concessions to its customers as they keep making technology improvements, they pass back some of these savings to alleviate any potential pushback as you become a more strategic vendor? Oh my god, I'm spending those so much. It is of great value.
But at the same time, can you elaborate a little bit on how you can think ahead and anticipate some of the things that can get underway? That's it for me. Thank you so much and congrats.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So the way we deal with that is -- and again, the backdrop there is the explosion of data volumes. So if data volumes at our customers grow a lot faster than the top line, at some point, you can't grow what you charge for that linearly with the data volumes. The way we deal with that is we give them more and more options.
And those options are differentiated technologically so that we can keep developing new ways of storing the data, different types of data in different ways for different periods of time and that customers, they can choose what they want to use out of that. So that's what we're doing with Online Archives, for example, which is -- which we announced last year and which is going great this year. That's also why we invested in -- we're investing in the observability pipeline. So there's a number of things we're doing to help put customers in control and make sure that what we deliver always, always aligns with the -- what we charge always aligns with the value customers get.
Operator
Our next question is from Sanjit Singh from Morgan Stanley.
Sanjit Singh -- Morgan Stanley -- Analyst
Thank you for taking the questions and my congrats on an exceptional 2021. Olivier, I wanted to talk a little bit about your comment about the early days of the opportunity on sort of two dimensions. If I look at some of the big software companies that we've seen, whether it's Salesforce or VMware or other large companies, they have north of hundreds of thousands of customers, right? And you're sort of sitting at 18,000. I was wondering in terms of your guys' vision, do you envision Datadog getting to this sort of customer count levels? That's sort of part one of the question.
On the other hand, it seems like you guys are doing better and better upmarket at this -- by this largest stuff or land win with this media company. Do you start to feel that the large enterprise market is now moving more and more toward the sort of Datadog platform versus kind of this sort of hybrid cloud approach that they've been -- that sort of modality that they been in for the last couple of years. Any sort of views on traction in enterprise and what sort of customer counts we can get to longer term?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So on the first question, we definitely -- we build a product and a company that serves the whole market, like the whole gamut of potential customers. We think that developers at small companies behave, especially in the cloud, they have to behave very much the same way as developers in very large enterprises. They have the same toolbox.
They work the same way largely. And so we built a product that serves everyone. We do expect to have very large counts of customers in the end. But to your second question, we also see, right now, a lot of the demand, a lot of the growth is coming from mid-market and large enterprises and also the higher end of the market.
And we feel good about that part of the market, like we see it successfully standardizing Datadog. We see it successfully land and expand with us. I think we're growing faster. Well, I would say we're an equivalent size and growing faster than anybody else in the market for that specific part of the market.
So I think we feel good about it. That's a big part of what we're doing.
Sanjit Singh -- Morgan Stanley -- Analyst
That makes a ton of sense. And I guess my follow-up question relates to security. I understand that's still early days in the move into this area. I wondered if you could talk about it in sort of two pieces.
One, selling security solutions to your core set of users, how confident are you that you're going to see traction in that motion sooner versus maybe selling security solutions to the security operations team, which might require more of an investment, more of a specialized go-to-market motion? If you can sort of -- how do we think through traction on sort of part one of that selling to like DevOps versus the security operations teams?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So the traction is here. We see the traction, right? So we mentioned on the call, we have thousands of customers on security products. And so the adoption is there. It's happening.
It's happening across our products. We have a number of products we started charging for in Q4, such as cloud workload protection, for example. And those actually are off to a strong start. So we are pretty impressed with the numbers we see there.
So again, it's too early to pass judgment. We have to see them perform for a couple of quarters. We have to see what's working, what's not working as customers get multiple quarters into the adoption of the product. But the signs we see today are very positive in terms of the adoption, in terms of the fit of those products, in terms of the way our story makes sense for our customers.
It's still possible we have to make changes to the go-to-market motion and specialize the teams and do a number of other things. I would say it might come in a bit later when customers are -- start embarking on the same standardization motion for security as they do right now with us for observability. But today, we're very pleased with what we see in terms of the fit and the adoption of those product. This is happening according to plan, I would say.
So we're very happy.
Operator
Our next question is from Sterling Auty from J. P. Morgan.
Sterling Auty -- J.P. Morgan -- Analyst
Yeah. Thanks, guys. Maybe we'll switch over to the margin side. So David, in particular, I was impressed by your sales and marketing spend increased less this year quarter over quarter than it did last year, but the revenue incremental dollars that you added was much higher.
Can you kind of go through -- is that all just because of the usage base and existing customer contribution in the quarter?
David Obstler -- Chief Financial Officer
Yes. That's because of the usage and the cross-sell and the efficiency of it in our frictionless adoption. So it's an indication of both the robustness of the end market as well as the ability for clients to adopt more of the platform.
Sterling Auty -- J.P. Morgan -- Analyst
Got it. And then maybe one quick follow-up. Same thing on gross margins, it was a very big sequential bump. What's contributing to it? And is it durable at these levels? Or what should we be contemplating in terms of that trend?
David Obstler -- Chief Financial Officer
Yes. And as we said since we went public that we are focusing on gross margins in the mid-70s to touching 80%. And that there will be periods of time that due to investment, they will tend toward to the middle or lower part of that range and then go up. And in this case, in this period of time, we were able to harvest efficiencies in our cloud costs.
And like in other periods of this fluctuation of the gross margin, we've hit 80%. As we're investing, that we may dip below that. But as we said in my prepared remarks, we feel confident that that will remain in the mid- to upper parts of the 70% range.
Olivier Pomel -- Co-Founder and Chief Executive Officer
As a reminder, we're shipping our Cloud Cost Management product next year, and we hope to be the first case study for that.
Sterling Auty -- J.P. Morgan -- Analyst
Understood. Thank you.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Welcome.
Operator
Our next question is from Fatima Boolani from Citi.
Fatima Boolani -- Citi -- Analyst
Good morning. Thank you for taking my questions. Olivier, maybe I'll start with you. You've been very conservative with respect to some of your commentary around the traction you're seeing outside of your core wheelhouse of observability in the realm of CI/CD and really catering to the developer audience.
So maybe just to take a step back with 13 generally available products, what are some of the efforts that are being put in place to package certain modules that are in a similar family or address a similar buyer persona? And sort of where are you on that journey to be able to attract more and more of these different groups within the enterprise organization? And then I have a follow-up for David, if I may.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So we're actually very happy with those products. So they're getting to market nicely. So we -- the CI/CD product we also started charging for fairly recently, and we're very happy with the adoption we see there, similarly to what we said about security.
At some point, we'll also comment on the numbers for that. I would say the numbers are still small compared to the rest of the business. But that's more due to the fact that the rest of the business is well north of $1 billion in ARR and growing close to 100% or 100% of it focused on positive year over year. So it's going to take more time for it to be meaningful compared to all that.
But we do see a lot of potential in those products. We are very happy with the adoption. In terms of the packaging, we always ask ourselves the right ways to price and package those products. We're big fans of unbundling for -- because it does align the -- very precisely what customers pay with the value they get, and it gives us very strong signal on what works and what doesn't work at the product level.
So we always start with unbundled. And then over time, we might find that there are some things that might need to be packaged differently or customers that want to buy together, that's when we start bundling things. But that's -- we always start with unbundled. That's the default motion for us.
Fatima Boolani -- Citi -- Analyst
I appreciate that detail, Olivier. David, for you, I think you were pretty categorical in your prepared remarks vis-a-vis your guidance philosophy. But taking a step back and in the context of the million-dollar deal volume that you saw double this year, how are you contemplating the incidence, frequency and maybe volume of larger deals as you do start seeing some more repeatability and patterns in the way customers are moving to the seven, eight-figure deal mark? Any help or context as to how you're thinking about those attributing factors would be great.
David Obstler -- Chief Financial Officer
Yes. Thank you. It's still the similar motion to what we've been experiencing, which means, for the most part, our $100,000-plus customers were started out lower than the $100,000 and our $1 million customers started lower than $1 million. We're still largely the land and expand.
So we see that motion continuing. And in addition to that, I think as said in our prepared remarks, we're seeing, in some cases, where a client has a significant cloud presence and consolidates or outsources or goes to a system rather than open source, we would land and get to a large amount earlier, which we've talked about in some of our prepared comments. But for the most part, it still is that land and expand and evolve, from lower deal sizes to the $100,000 and $1 million as we've been discussing.
Fatima Boolani -- Citi -- Analyst
Thank you.
Operator
Our next question is from Brent Thill from Jefferies.
Brent Thill -- Jefferies -- Analyst
Olivier, on 2022 cloud migrations, there's been some concern given the consumption that we've seen in the last two years that there could be some slowdown or digestion. It doesn't appear that that's what you're seeing right now. But curious if you could just share your thoughts on what happens this year. And it seems like there's some really new pockets of movement even in financial services and other sub sectors that we haven't seen.
What are you expecting? And David, if I can follow up with you, just on a quick question about Sean's new role. Historically, we've seen changes in the sales team. In other software companies, we've seen a little bit of an air pocket. It seems like you expect this to proceed smoothly, and it's more of a tweaking of the go-to-market versus a major change.
Can you comment on that as well? Thanks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Sure. Yes. So in terms of the sort of the trends we've seen when we're forecasting, from what we can tell, there's no -- like what we see is continuity. Like what we see in 2021, if you look at it including 2021, it looked to us -- it looks a lot like 2019, which itself looks a lot like 2018.
And what this tells you is we're still early in digital transformation and cloud migration. And this is happening -- it seems to be happening with a certain rate within enterprises that we can convert workloads and move them to the cloud. And we've seen that to be more or less true throughout the history of the company. So from where we stand, we don't see any particular acceleration in 2021, that is it would be a pull-forward of '22 or anything like that.
So we see continuity. That's what we see. So we see a strong demand environment. Obviously, we can't forecast what's going to happen next year.
It's possible that we're still in troubled times, and it's possible weird things happen. But we're very confident that if that's the case, the setbacks will be temporary. And that we're still very early in a very, very broad transformation. The magnitude of which is still difficult to reason about.
So that's on your first question. So we're very confident on the environment and very confident in our place in it. In terms of the sales team, we actually didn't make a very large changes to the sales team. We acted with continuity and we promoted from within for our CRO spot.
We promoted Sean, who I think is the best person for the job, really. And we don't expect any big changes as part of that. We expect to keep building. We expect to keep scaling.
We expect to maybe do a little bit of go-to-market in some areas with the new products to the fold. But mostly, we're here to scale what we have today.
Brent Thill -- Jefferies -- Analyst
Thank you.
Operator
Our next question is from Brad Reback from Stifel.
Brad Reback -- Stifel Financial Corp. -- Analyst
Great. Thank you very much. Olivier, last quarter, you talked about some recent product releases that could be easily consumed by non-IT employees. So I'm just wondering how that's trending.
And then as we look forward, should we think about that as a driver to '22 or more '23 and beyond? Thanks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So we have a few of those products, and we mentioned some of the new products that reach more into the business areas of support area, like Session Replay, analysis, things like that, Cloud Cost Management. There are some that are still not in GA. The others are still very early.
We shipped them late last year. So I would say it's definitely too early to share any data about them. 2022, they're still probably going to be too small to have a major impact on the numbers, but that's definitely a big area for growth for us in the future. So we invest now with those products and then they make a meaningful contribution in the future.
And by the way, that's what we've seen happen with our other products today. I think we mentioned on the call that the "smaller product" that we released since 2019 collectively added more than $100 million in ARR last year, which is very meaningful. And so we expect the same to happen with the products we released last year.
Brad Reback -- Stifel Financial Corp. -- Analyst
That's great. Thanks very much.
Operator
Our next question is from Michael Turits with KeyBanc.
Michael Turits -- KeyBanc Capital Markets -- Analyst
Hey, Olivier and everybody. Congrats on the quarter. I want to ask the competitive question, particularly important given that you had two public comps that have less than impressive results. So very specifically, where are you winning upmarket? And how are you winning upmarket competitively in enterprise and also maybe downmarket where you may be seeing more price competition on ingest?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So first of all, we don't actually see the competition all that much. So I don't wake up every morning asking myself how are we going to win or whether we are winning. We mostly compete against customers building it themselves or building on their tool then starting in the cloud without a clear idea what's going on. We do see a few big replacements in every quarter.
We've mentioned a few on the call. When that's the case, I mean the ones we mentioned are typically the ones that are upmarket. The reason why we're winning those situations is we offer an integrated platforms where others don't. We're cloud-native where others aren't.
And most importantly, we have a lot more usage and adoption from the teams on the ground around our product. So that's the deployed everywhere, used by everyone saying that I repeat at every call, that really is what makes us win in the end with customers. And that applies upmarket, that applies downmarket, it applies everywhere.
David Obstler -- Chief Financial Officer
And let me just add that, of course, we didn't have the APM and logs. We didn't have the breadth of the platform five years ago. So as we talked about there, a number of customers where we had landed with infrastructure and as they are consolidating on the platform, they're buying our products, whether it be enhancement, whether it be movement from open source or whether it be replacement of the company's products that you're talking about.
Michael Turits -- KeyBanc Capital Markets -- Analyst
And David, on the packaging of different products or different personas, what about from a sales and go-to-market perspective? Any moves to either create specialized or overlay sales forces given the breadth and scope of what you're now offering?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Right now, we're experimenting with a few things, obviously, like we're trying to see if it can makes sense in some areas, the prime candidate being security. But we haven't made any big changes to the way we sell. And we also see some interesting proof points that we can be successful with keeping the way the -- keeping our sales team the way it is right now. So we are keen on that.
We expect it to be an area of focus at some point during the next year. But so far, no changes. And so far, looking good.
Michael Turits -- KeyBanc Capital Markets -- Analyst
Great. Thanks.
Operator
Our next question is from Matt Hedberg from RBC Capital Markets.
Matt Hedberg -- RBC Capital Markets -- Analyst
Oh, great. Hey. Thanks, guys. Oli, it was great to see you achieving FedRAMP moderate status.
Could you remind us about the success you've had thus far on the federal side? And could that drive additional success there in 2022?
Olivier Pomel -- Co-Founder and Chief Executive Officer
The goal is really to be able to sell to fully go to market on the federal side. With the FedRAMP low we had before, we were limited in the number of agencies we could target, and we also are limited a number of use cases. We basically could only target in faster monitoring use cases. We couldn't send logs, APM, things like that.
With FedRAMP medium, what we can do is we can sell all of our products, and we can pretty much sell to every single civilian agency in the Federal Government as well as a number of other government agencies that are local agencies, but that take the same or use FedRAMP as the same guidelines for security and compliance. So it really opens up the market. We've seen some -- already some success to date. We already have, as of last quarter, $1 million-plus customer on the federal side on our FedRAMP on our cloud offer.
So we're optimistic, but we still have a lot of building to do on the go-to-market there, like it's not necessarily exactly the same go-to-market that we're used to.
Matt Hedberg -- RBC Capital Markets -- Analyst
Got it. And then maybe just a quick one on the product side. I was really excited to see Sensitive Data Scanner launched. It really feels like data governance as a whole is just becoming more important in a post-COVID world.
It sounds like it's working today with application logs. Could that product go further? I'm just sort of curious on sort of what the scope of what Datadog could provide from a governance -- data governance perspective.
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. So that product is actually a great example of the power of our platform and all the various use cases we can derive from it. We started the Sensitive Data Scanner with log data, which is very straightforward and something customers love because it tells them immediately whether they are manipulating sensitive data or they should not, which is a hard problem for them to solve. But we can extend it to look at all of the data that ends up on the front end of an application where we use our monitoring.
We can extend it to look at all of the data that go through the various services in the back end of the application through the APM. We can extend it to look at all of the data that go through the network through network monitoring. So it's a great example of how we can use the data collection we already have to help our customers solve hard problems that they couldn't solve otherwise. It's also interesting because it's a product that sits pretty much halfway between observability and security.
And you could make a good case for attaching to one or the other. So it really shows like the unified future observability and security platform that we're building.
Matt Hedberg -- RBC Capital Markets -- Analyst
Super helpful. Congrats on the results, guys. Thank you.
Operator
Our next question is from Adam Tindle from Raymond James.
Adam Tindle -- Raymond James -- Analyst
OK. Thanks. Good morning. Olivier, I just wanted to start with a big picture question.
You crossed the $1 billion in ARR threshold this year, a very strong year. That tends to be a milestone where software companies can start thinking about updates to either internal infrastructure or team to take them beyond that $1 billion level. So maybe you could just talk conceptually about how you're thinking about what to put in place to scale Datadog to a multibillion-dollar company?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, that's what we do every week. We ask ourselves how we're going to keep scaling the company, what we're missing, what we need to add. So in general, we are scaling company. We're hiring a lot.
We're hiring at all levels. We're bringing outside experience where we don't have it. But I would say, in addition to that, we're also very, very, very careful to make sure we can keep delivering and keep innovating. I mean we have worked at much larger companies before.
I've seen how hard it can be to get things done in a very large organization. And I want to make sure that we keep our teams extremely productive. We minimize the number of red tape that prevent them for getting work done while putting -- building enough roles and enough controls, so we make sure that nothing weird happens. So that's the concern every single week for us at Datadog, and that's pretty much what my job is.
Adam Tindle -- Raymond James -- Analyst
Understand. Maybe a more near-term follow-up for David on guidance. This time last year, you were guiding to high 30s year-over-year growth for 2021. You obviously overachieved that, but now we're sitting here guiding to high 40s year over year in 2022 on a bigger base number.
Just wondering how you thought about the process to putting a target out now versus this time last year in 2021. It seems bold, but you talked about usual conservatism. So maybe take us through that.
David Obstler -- Chief Financial Officer
Yes, yes. I think -- yes, thanks. I think overall, it's sort of the same ideology, which is to take what we've seen in the usage and numbers and discount it. I will say last year being in COVID, we took, and we said this on the call, a bit more of a conservative approach.
We had less -- we had more uncertainty last year. So I mean I think we adopted the same approach but applied a little more conservatism last year when we gave our original guidance.
Adam Tindle -- Raymond James -- Analyst
Thanks and congrats again.
Operator
Our next question is from Gregg Moskowitz from Mizuho.
Gregg Moskowitz -- Mizuho Securities -- Analyst
OK. Thank you, and my congratulations. Olivier, you released Cloud SIEM about 18 months ago, and it seemed to get off to a slower start than the typical new Datadog product. But as you mentioned, you now have thousands of customers that have deployed your security products.
So what I'm wondering is what's the primary driver of this? Is it a function of having more breadth in security, such as Sensitive Data Scanner, Cloud Workload Protection, etc.? Is it because your sales force and channel has become more adept at selling security? Or is it something else you would point to?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So first of all, actually, it's off to a very strong start. So we mentioned thousands of customers using it. That's a lot of customers, especially for a product that is an expansion product. That's not something that we lead with typically.
So we're very happy with that. There's still quite a bit of product work happening on it. Like we're broadening it so we can support more use cases, so it can be more end-to-end for everything our customers need to do with the Cloud SIEM so there's quite a bit of investment on that product that remains. So we're still early in the product development cycle there.
We expect at some point maybe this year to share some numbers on the revenues by those products, but we're also very happy with the growth there. And those products are growing very, very quickly, obviously, from a much smaller base than the rest of our products. But we mentioned $100 million of added revenue from the -- added ARR from the newer product. And the two bigger buckets in there are user experience monitoring and security.
So we see that growing, and we see that being a potential driver of future growth for us.
Gregg Moskowitz -- Mizuho Securities -- Analyst
OK. That's very helpful. And then regarding the new global partnership with AWS or expanded partnership, can you elaborate on how much tighter the product integration may become? And then also how actively are the two companies planning to engage in collaborative go-to-market?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Well, so it's very much a continuation of what we're doing with AWS. I think we've written down a few things that were more implicit before in terms of what we're going to do from an integration perspective. What's exciting to us is that we've written down things that are -- that don't just concern observability, but also reach into security use cases. So we're going to see broader integrations there between the two products.
And we've also decided to get a little bit closer on some of the go to market. There's not much more I can say on that. We're still working on a number of those things. But this is, I would say, in line with what we're doing with other partners to really fully go to market with the cloud providers customers.
Gregg Moskowitz -- Mizuho Securities -- Analyst
Very helpful. Thank you.
Operator
Our next question is from Yun Kim from Loop Capital Markets.
Yun Kim -- Loop Capital Markets -- Analyst
First, super congrats on a strong quarter. Olivier, your growth is accelerating and you're already at a scale that's much larger than your competition. Obviously, you can keep hiring at the current rate to support growth. Can you just talk about what you are seeing in regards to sales productivity improvement? And is it natural for you to just focus on larger deals to just keep driving higher sales productivity gains?
Olivier Pomel -- Co-Founder and Chief Executive Officer
So first of all, our growth is not completely predicated on sales productivity because we have a largely frictionless model. So part of our growth is, but part is not, which is why you see the revenue growth outpace the sales and marketing growth or expenses growth by quite a wide margin. Our focus for the year is more on scaling the team than on increasing productivity because productivity is very, very high. If you look at the cost of sale, like we're probably the best, if not close to the best in the market.
So our goal is to keep scaling the team and keep getting the product set, so we can keep getting more of the same economies of scope that we already see with our customers.
Yun Kim -- Loop Capital Markets -- Analyst
Great. And then just a quick question for David. Can we just, at a high level, talk about level of visibility you have and how that has trended over the past year? You mentioned that revenue recognition could lag the actual signing of the deals. As you sign larger deals, are you seeing increasing revenue visibility? Or some of the new deals and expansion deals take a bit longer to ramp as the deployment size gets larger?
David Obstler -- Chief Financial Officer
We have very consistent performance on our cohorts across the different types of customers, the way they adopt the product and ramp. And that applies to larger deals as well as smaller. So we have pretty good visibility, pretty good time series. There hasn't been a change in that pattern of adoption.
And we monitor that all the time as we look at increasing our ability to predict the revenue. We also, I think, are in some cases looking at developing a functionality in account management to help our clients adopt faster. And that is sort of around the edges, but we have a pretty good idea of how our clients are adopting.
Yun Kim -- Loop Capital Markets -- Analyst
Great. Thank you so much.
Operator
Our next question is from Mike Cikos from Needham & Company.
Mike Cikos -- Needham and Company -- Analyst
Hi, guys. Thanks for taking the questions here. The first, just coming back to the profitability guidance that we have for Q1 and for fiscal '22 now. For David, I know that you had discussed, I guess, the expectation that we would see some of these travel and in-person events kind of feather back in. I have to imagine that there's some incremental cost with these acquisitions that you guys have announced.
Can you help, I guess, fine-tooth that a little bit for us as far as what's expected and how that's expected to come into the year?
David Obstler -- Chief Financial Officer
Yes. In our guidance, we have assumed a resumption of normal T&E and marketing events. We said previously that sort of in the 3% to 4% range we estimate we've had cost savings due to lower than average T&E and marketing events. So we've incorporated that in the guidance.
We'll have to see how quickly that resumes. As we said, first priority is safety of our employees. But we've incorporated that. We've also, as we said, have very aggressive hiring plans and we've incorporated that in.
But as we said previously, we think the number is sort of on average around three plus in terms of COVID savings relative to T&E and marketing events as a percentage of revenues.
Mike Cikos -- Needham and Company -- Analyst
Great. And then just, I guess, a two-part question here, but more housekeeping. The first, I know in previous quarters, and maybe I missed it on this call here, but you guys have discussed how new logo lands are typically coming in with two-plus products 70% to 75% of the time. So first question would be, is that still the case? And then the second question, I know that you're talking about gross retention now improving to the mid to high 90s range.
It had been mid-90s. I think before that, it was mid to low 90s. So can you just help us think of what are the investments or what is it you guys are doing to drive those gross retention rates up over time? And congratulations on that effort as well.
David Obstler -- Chief Financial Officer
Thank you. On the first question, yes, the land percentage of more than one product remains similar to what we said previously, in the 70s. No change in that motion. In terms of the gross retention, with the platform expanding and the standardization, one, we see some more stickiness.
And as we always have, we're focusing on both account management, technical account management, working with our clients over a long term, which we've done and continue to do. Oli?
Olivier Pomel -- Co-Founder and Chief Executive Officer
Yes. And to close on that, I mean, we deliver a great product that's a must have for our customers, that has extremely high adoption and usage across our customer base, that delivers great value for them. And we know it delivers great value. We're not surprised by anything because we have this unbundling approach that lets us really quickly understand that what customers pay for is basically part of our platform and will be expected out of it.
So that's what makes the gross retention stay up and go up over time.
Mike Cikos -- Needham and Company -- Analyst
Great. Thank you for that.
Operator
I'd now like to turn the call back over to Olivier Pomel for closing remarks.
Olivier Pomel -- Co-Founder and Chief Executive Officer
All right. Thank you. Thank you all. In closing, I'll just repeat that we are very, very pleased with our performance this quarter.
And I also want to thank all Datadogs around the world for their hard work in 2021. I know they're excited for what's in store for 2022 and so am I. So thank you, all.
Operator
[Operator signoff]
Duration: 64 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
Sanjit Singh -- Morgan Stanley -- Analyst
Sterling Auty -- J.P. Morgan -- Analyst
Fatima Boolani -- Citi -- Analyst
Brent Thill -- Jefferies -- Analyst
Brad Reback -- Stifel Financial Corp. -- Analyst
Michael Turits -- KeyBanc Capital Markets -- Analyst
Matt Hedberg -- RBC Capital Markets -- Analyst
Adam Tindle -- Raymond James -- Analyst
Gregg Moskowitz -- Mizuho Securities -- Analyst
Yun Kim -- Loop Capital Markets -- Analyst
Mike Cikos -- Needham and Company -- Analyst
More DDOG analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool 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.
|
Datadog (NASDAQ: DDOG) Q4 2021 Earnings Call Feb 10, 2022, 8:00 a.m. Operator [Operator signoff] Duration: 64 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 Sanjit Singh -- Morgan Stanley -- Analyst Sterling Auty -- J.P. Morgan -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Adam Tindle -- Raymond James -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Yun Kim -- Loop Capital Markets -- Analyst Mike Cikos -- Needham and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. And unlike general purpose video conferencing tools, which are one too many and focus on presentation and conversation, CoScreen is many to many, allowing multiple participants to share and collaborate in each other's windows as if they were local applications.
|
Operator [Operator signoff] Duration: 64 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 Sanjit Singh -- Morgan Stanley -- Analyst Sterling Auty -- J.P. Morgan -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Adam Tindle -- Raymond James -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Yun Kim -- Loop Capital Markets -- Analyst Mike Cikos -- Needham and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q4 2021 Earnings Call Feb 10, 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 first quarter and the fiscal year 2022, our gross margins and operating margins, including investments in R&D and go-to-market, our strategy, our product capabilities, and our ability to capitalize on market opportunities.
|
Operator [Operator signoff] Duration: 64 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 Sanjit Singh -- Morgan Stanley -- Analyst Sterling Auty -- J.P. Morgan -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Adam Tindle -- Raymond James -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Yun Kim -- Loop Capital Markets -- Analyst Mike Cikos -- Needham and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q4 2021 Earnings Call Feb 10, 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 first quarter and the fiscal year 2022, our gross margins and operating margins, including investments in R&D and go-to-market, our strategy, our product capabilities, and our ability to capitalize on market opportunities.
|
Operator [Operator signoff] Duration: 64 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 Sanjit Singh -- Morgan Stanley -- Analyst Sterling Auty -- J.P. Morgan -- Analyst Fatima Boolani -- Citi -- Analyst Brent Thill -- Jefferies -- Analyst Brad Reback -- Stifel Financial Corp. -- Analyst Michael Turits -- KeyBanc Capital Markets -- Analyst Matt Hedberg -- RBC Capital Markets -- Analyst Adam Tindle -- Raymond James -- Analyst Gregg Moskowitz -- Mizuho Securities -- Analyst Yun Kim -- Loop Capital Markets -- Analyst Mike Cikos -- Needham and Company -- Analyst More DDOG analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Datadog (NASDAQ: DDOG) Q4 2021 Earnings Call Feb 10, 2022, 8:00 a.m. And this customer now uses 10 Datadog products.
|
89c0f956-a262-4446-bce7-4a0029d11b54
|
718734.0
|
2022-02-10 00:00:00 UTC
|
Technology Sector Update for 02/10/2022: LUMN,DIDI,DDOG
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-02-10-2022%3A-lumndididdog
|
nan
|
nan
|
Technology stocks were quickly drifting lower, with the SPDR Technology Select Sector ETF (XLK) Thursday slipping 1.5% while the Philadelphia Semiconductor Index was falling 0.9% this afternoon.
In company news, Lumen Technologies (LUMN) slid almost 14% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share. Revenue declined 5.5% year-over-year, also missing the $4.86 billion Street view.
DiDi Global (DIDI) rose more than 11% after a regulatory filing Thursday showed Tencent Holdings had acquired a 7.4% equity stake in the Chinese mobility and ride-hailing company, acquiring nearly 75.8 million DiDi class A ordinary shares through Dec. 31.
Datadog (DDOG) climbed over 15% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. Excluding one-time items, it earned $0.20 per share during the three months ended Dec. 31 on $326.2 million in revenue compared with the Capital IQ consensus expecting $0.11 per share and $291.4 million, respectively.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) climbed over 15% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. Technology stocks were quickly drifting lower, with the SPDR Technology Select Sector ETF (XLK) Thursday slipping 1.5% while the Philadelphia Semiconductor Index was falling 0.9% this afternoon. In company news, Lumen Technologies (LUMN) slid almost 14% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share.
|
Datadog (DDOG) climbed over 15% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. In company news, Lumen Technologies (LUMN) slid almost 14% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share. DiDi Global (DIDI) rose more than 11% after a regulatory filing Thursday showed Tencent Holdings had acquired a 7.4% equity stake in the Chinese mobility and ride-hailing company, acquiring nearly 75.8 million DiDi class A ordinary shares through Dec. 31.
|
Datadog (DDOG) climbed over 15% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. In company news, Lumen Technologies (LUMN) slid almost 14% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share. DiDi Global (DIDI) rose more than 11% after a regulatory filing Thursday showed Tencent Holdings had acquired a 7.4% equity stake in the Chinese mobility and ride-hailing company, acquiring nearly 75.8 million DiDi class A ordinary shares through Dec. 31.
|
Datadog (DDOG) climbed over 15% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. Technology stocks were quickly drifting lower, with the SPDR Technology Select Sector ETF (XLK) Thursday slipping 1.5% while the Philadelphia Semiconductor Index was falling 0.9% this afternoon. In company news, Lumen Technologies (LUMN) slid almost 14% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share.
|
e3f494d1-f607-4572-a8d2-eb7c90fe660e
|
718735.0
|
2022-02-10 00:00:00 UTC
|
Technology Sector Update for 02/10/2022: ZBRA,LUMN,DIDI,DDOG
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-02-10-2022%3A-zbralumndididdog
|
nan
|
nan
|
Technology stocks continued to sink this afternoon, with the SPDR Technology Select Sector ETF (XLK) Thursday slipping 2.9% while the Philadelphia Semiconductor Index was falling 3.3%.
In company news, Zebra Technologies (ZBRA) declined 8.1% after projecting Q1 net income trailing Wall Street estimates. The data capture and identification firm is expecting between $3.70 to $4.00 per share in adjusted earnings for the three months ending March 31 with revenue seen rising 1% to 3%. Analysts, on average, are looking for Zebra to earn $4.41 per share, excluding one-time items.
Lumen Technologies (LUMN) slid more than 15% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share. Revenue declined 5.5% year-over-year, also missing the $4.86 billion Street view.
To the upside, DiDi Global (DIDI) rose 8.6% after a regulatory filing Thursday showed Tencent Holdings had acquired a 7.4% equity stake in the Chinese mobility and ride-hailing company, acquiring nearly 75.8 million DiDi class A ordinary shares through Dec. 31.
Datadog (DDOG) climbed over 11% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. Excluding one-time items, it earned $0.20 per share during the three months ended Dec. 31 on $326.2 million in revenue compared with the Capital IQ consensus expecting $0.11 per share and $291.4 million, respectively.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) climbed over 11% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. In company news, Zebra Technologies (ZBRA) declined 8.1% after projecting Q1 net income trailing Wall Street estimates. The data capture and identification firm is expecting between $3.70 to $4.00 per share in adjusted earnings for the three months ending March 31 with revenue seen rising 1% to 3%.
|
Datadog (DDOG) climbed over 11% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. In company news, Zebra Technologies (ZBRA) declined 8.1% after projecting Q1 net income trailing Wall Street estimates. Excluding one-time items, it earned $0.20 per share during the three months ended Dec. 31 on $326.2 million in revenue compared with the Capital IQ consensus expecting $0.11 per share and $291.4 million, respectively.
|
Datadog (DDOG) climbed over 11% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. Lumen Technologies (LUMN) slid more than 15% after the networking infrastructure company overnight reported Q4 non-GAAP net income of $0.51, improving on a $0.42 per share adjusted profit during the same quarter in 2020 but still lagging the Capital IQ consensus by $0.03 per share. To the upside, DiDi Global (DIDI) rose 8.6% after a regulatory filing Thursday showed Tencent Holdings had acquired a 7.4% equity stake in the Chinese mobility and ride-hailing company, acquiring nearly 75.8 million DiDi class A ordinary shares through Dec. 31.
|
Datadog (DDOG) climbed over 11% after the data analytics company reported Q4 results topping Wall Street expectations and forecast Q1 and FY22 revenue also exceeding analyst estimates. In company news, Zebra Technologies (ZBRA) declined 8.1% after projecting Q1 net income trailing Wall Street estimates. Revenue declined 5.5% year-over-year, also missing the $4.86 billion Street view.
|
7f216c62-a012-422c-a144-14183c986329
|
718736.0
|
2022-02-10 00:00:00 UTC
|
Affirm Hurt the Nasdaq Thursday, but This Tech Disruptor Was an Investor's Best Friend
|
DDOG
|
https://www.nasdaq.com/articles/affirm-hurt-the-nasdaq-thursday-but-this-tech-disruptor-was-an-investors-best-friend
|
nan
|
nan
|
Investors in the Nasdaq Composite (NASDAQINDEX: ^IXIC) have been worried about inflation lately, and the latest reading from the Bureau of Labor Statistics on Thursday morning sent shock waves through the stock market. News that the Consumer Price Index rose 0.6% in January to post a 7.5% year-over-year gain fanned the flames for those who believe the Federal Reserve will have to take drastic action to get inflationary pressures under control. That was a leading factor in sending the Nasdaq down more than 2% on the day.
One of the worst performers in the Nasdaq on Thursday was Affirm Holdings (NASDAQ: AFRM), which prematurely released its quarterly earnings and disappointed shareholders in the process. But some Nasdaq stocks still managed to post gains even in a down market, and a big winner on the day was software-as-a-service company Datadog (NASDAQ: DDOG). We'll look more closely at both stocks below.
Image source: Getty Images.
Affirm's growth was not enough
Shares of Affirm Holdings were down more than 21% on Thursday. The decline came largely in the last hour of trading, as the buy now, pay later specialist released its fiscal second-quarter financial report in the midafternoon rather than waiting until after the market had closed, as expected.
Affirm's numbers looked strong on their face. Gross merchandise volume jumped 115% year over year to $4.5 billion. Active merchants were up by 8,000 to 168,000, with active-consumer counts soaring 150% to 11.2 million. In terms of financials, revenue of $361 million was up 77% from year-ago levels, and revenue net of transaction costs almost doubled.
However, there were some troubling figures in Affirm's report. The company boosted its provision for credit losses by $40 million, citing a more-normal credit environment in the last three months of calendar 2021. In addition, net losses widened to nearly $160 million for the quarter.
Investors also seemed unconvinced by Affirm's guidance for the fiscal third quarter and the remainder of fiscal 2022. In particular, the company sees full-year gross merchandise volume of $14.58 billion to $14.78 billion and revenue of $1.29 billion to $1.31 billion. That doesn't offer much in the way of acceleration for the remainder of the year, and for growth-hungry investors, the news was far from ideal.
Datadog fetches stock gains
Shares of Datadog, on the other hand, rose 12% despite the downward movement in the broader stock market. The cloud-monitoring and security platform specialist reported fourth-quarter financial results that showed the company's continued success in growing its business.
Datadog's numbers looked strong. Revenue of $326 million jumped 84% year over year. The company was profitable even under normal accounting rules, and adjusted net income came in at $0.20 per share, more than triple its year-ago profit. The company counted 216 customers generating annual recurring revenue of $1 million, well over double the 101 customers it had in that category 12 months ago. Datadog now has more than 2,000 customers generating at least $100,000 in annual recurring revenue, up 63% year over year.
Moreover, it sees more growth ahead. First-quarter sales of $334 million to $339 million and adjusted earnings of $0.10 to $0.12 per share would keep up the company's momentum, and full-year 2022 projections for $1.51 billion to $1.53 billion in revenue and adjusted earnings of $0.45 to $0.51 per share were well received by investors.
It's easy for market participants to make the mistake of thinking that a down market is bad for every company. That's not the case, and even though Affirm struggled today, Datadog's gains show it's worth looking for great businesses.
10 stocks we like better than Affirm 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 Affirm 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 January 20, 2022
Dan Caplinger owns Datadog. The Motley Fool owns and recommends Affirm Holdings, 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.
|
But some Nasdaq stocks still managed to post gains even in a down market, and a big winner on the day was software-as-a-service company Datadog (NASDAQ: DDOG). Investors in the Nasdaq Composite (NASDAQINDEX: ^IXIC) have been worried about inflation lately, and the latest reading from the Bureau of Labor Statistics on Thursday morning sent shock waves through the stock market. News that the Consumer Price Index rose 0.6% in January to post a 7.5% year-over-year gain fanned the flames for those who believe the Federal Reserve will have to take drastic action to get inflationary pressures under control.
|
But some Nasdaq stocks still managed to post gains even in a down market, and a big winner on the day was software-as-a-service company Datadog (NASDAQ: DDOG). Gross merchandise volume jumped 115% year over year to $4.5 billion. In particular, the company sees full-year gross merchandise volume of $14.58 billion to $14.78 billion and revenue of $1.29 billion to $1.31 billion.
|
But some Nasdaq stocks still managed to post gains even in a down market, and a big winner on the day was software-as-a-service company Datadog (NASDAQ: DDOG). Datadog fetches stock gains Shares of Datadog, on the other hand, rose 12% despite the downward movement in the broader stock market. First-quarter sales of $334 million to $339 million and adjusted earnings of $0.10 to $0.12 per share would keep up the company's momentum, and full-year 2022 projections for $1.51 billion to $1.53 billion in revenue and adjusted earnings of $0.45 to $0.51 per share were well received by investors.
|
But some Nasdaq stocks still managed to post gains even in a down market, and a big winner on the day was software-as-a-service company Datadog (NASDAQ: DDOG). Affirm's growth was not enough Shares of Affirm Holdings were down more than 21% on Thursday. Datadog fetches stock gains Shares of Datadog, on the other hand, rose 12% despite the downward movement in the broader stock market.
|
4fa95cce-ef37-4deb-8d98-cd528f0b308e
|
718737.0
|
2022-02-10 00:00:00 UTC
|
Why Datadog Stock Soared Today
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-stock-soared-today
|
nan
|
nan
|
What happened
Shares of Datadog (NASDAQ: DDOG) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics.
So what
Datadog's revenue rocketed 84% year over year to $326.2 million, fueled by strong customer gains. The cybersecurity company had over 2,000 customers set to spend at least $100,000 on its platform annually as of the end of 2021, a 63% increase from the year-ago period.
Moreover, Datadog's operating income improved to $8.5 million, up from a loss of $8.9 million in the prior-year quarter. Its net income, in turn, checked in at $7.2 million, or $0.02 per share, compared to a loss of $16.2 million, or $0.05 per share.
Image source: Getty Images.
Better still, Datadog's cash generation skyrocketed. Its operating and free cash flow increased 385% and 541%, respectively, to $115.8 million and $106.7 million.
"We are pleased with our fourth-quarter performance, as we demonstrated excellent revenue growth and continued business efficiencies," CEO Olivier Pomel said in a press release.
Now what
Due to these solid results and favorable ongoing sales trends, Datadog issued an upbeat financial forecast for fiscal 2022, including:
Revenue of $1.51 billion to $1.53 billion, representing year-over-year growth of roughly 48%.
Adjusted operating income of $160 million to $180 million.
Adjusted earnings per share of $0.45 to $0.51.
Datadog also announced that it acquired collaboration platform CoScreen. The deal will help to strengthen Datadog's real-time communication capabilities.
"Bringing teams together has always been Datadog's core mission," senior vice president Ilan Rabinovitch said in a press release.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 20, 2022
Joe Tenebruso 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.
|
What happened Shares of Datadog (NASDAQ: DDOG) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics. "We are pleased with our fourth-quarter performance, as we demonstrated excellent revenue growth and continued business efficiencies," CEO Olivier Pomel said in a press release. "Bringing teams together has always been Datadog's core mission," senior vice president Ilan Rabinovitch said in a press release.
|
What happened Shares of Datadog (NASDAQ: DDOG) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics. So what Datadog's revenue rocketed 84% year over year to $326.2 million, fueled by strong customer gains. Adjusted operating income of $160 million to $180 million.
|
What happened Shares of Datadog (NASDAQ: DDOG) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics. Moreover, Datadog's operating income improved to $8.5 million, up from a loss of $8.9 million in the prior-year quarter. Its net income, in turn, checked in at $7.2 million, or $0.02 per share, compared to a loss of $16.2 million, or $0.05 per share.
|
What happened Shares of Datadog (NASDAQ: DDOG) leaped 12.2% on Thursday after the monitoring platform for cloud applications reported impressive fourth-quarter growth metrics. Its operating and free cash flow increased 385% and 541%, respectively, to $115.8 million and $106.7 million. Adjusted operating income of $160 million to $180 million.
|
b6ae19e1-d68e-44f1-9988-9e169b763a42
|
718738.0
|
2022-02-10 00:00:00 UTC
|
Technology Sector Update for 02/10/2022: DDOG, TWTR, ZBRA, XLK, SOXX
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-02-10-2022%3A-ddog-twtr-zbra-xlk-soxx
|
nan
|
nan
|
Technology stocks declined premarket Thursday. The Technology Select Sector SPDR ETF (XLK) was recently down more than 1% and the Semiconductor Sector Index Fund (SOXX) was over 2% lower.
Datadog (DDOG) was gaining over 15% in value as it reported Q4 adjusted diluted earnings of $0.20, compared with $0.06 a year earlier. Analysts polled by Capital IQ estimated $0.11.
Twitter (TWTR) reported Q4 non-GAAP earnings of $0.33 per share, down from $0.38 a year ago. Analysts polled by Capital IQ expected $0.34. Twitter was recently up more than 0.1%.
Zebra Technologies (ZBRA) reported Q4 adjusted earnings of $4.54 per diluted share, up from $4.46 a year earlier. Analysts polled by Capital IQ projected $4.40. Zebra Technologies was slipping past 1% recently.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) was gaining over 15% in value as it reported Q4 adjusted diluted earnings of $0.20, compared with $0.06 a year earlier. Twitter (TWTR) reported Q4 non-GAAP earnings of $0.33 per share, down from $0.38 a year ago. Zebra Technologies (ZBRA) reported Q4 adjusted earnings of $4.54 per diluted share, up from $4.46 a year earlier.
|
Datadog (DDOG) was gaining over 15% in value as it reported Q4 adjusted diluted earnings of $0.20, compared with $0.06 a year earlier. Analysts polled by Capital IQ estimated $0.11. Zebra Technologies (ZBRA) reported Q4 adjusted earnings of $4.54 per diluted share, up from $4.46 a year earlier.
|
Datadog (DDOG) was gaining over 15% in value as it reported Q4 adjusted diluted earnings of $0.20, compared with $0.06 a year earlier. The Technology Select Sector SPDR ETF (XLK) was recently down more than 1% and the Semiconductor Sector Index Fund (SOXX) was over 2% lower. Zebra Technologies (ZBRA) reported Q4 adjusted earnings of $4.54 per diluted share, up from $4.46 a year earlier.
|
Datadog (DDOG) was gaining over 15% in value as it reported Q4 adjusted diluted earnings of $0.20, compared with $0.06 a year earlier. Technology stocks declined premarket Thursday. Twitter (TWTR) reported Q4 non-GAAP earnings of $0.33 per share, down from $0.38 a year ago.
|
9fcd2e4a-d7aa-4578-844d-9e4c85e74339
|
718739.0
|
2022-02-10 00:00:00 UTC
|
Nasdaq 100 Movers: SGEN, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-sgen-ddog
|
nan
|
nan
|
In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.6%. Year to date, Datadog registers a 0.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 15.3%. Seagen is lower by about 22.5% looking at the year to date performance.
Two other components making moves today are Verisk Analytics, trading down 2.4%, and Micron Technology, trading up 6.2% on the day.
VIDEO: Nasdaq 100 Movers: SGEN, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Nasdaq 100 Movers: SGEN, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.6%. And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 15.3%.
|
VIDEO: Nasdaq 100 Movers: SGEN, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.6%. Year to date, Datadog registers a 0.9% gain.
|
VIDEO: Nasdaq 100 Movers: SGEN, DDOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 15.6%. And the worst performing Nasdaq 100 component thus far on the day is Seagen, trading down 15.3%.
|
VIDEO: Nasdaq 100 Movers: SGEN, 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 Seagen, trading down 15.3%. Seagen is lower by about 22.5% looking at the year to date performance.
|
7da84a80-099a-428c-a7ef-e84c15b8411c
|
718740.0
|
2022-02-10 00:00:00 UTC
|
Datadog (DDOG) Surpasses Q4 Earnings and Revenue Estimates
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-surpasses-q4-earnings-and-revenue-estimates
|
nan
|
nan
|
Datadog (DDOG) came out with quarterly earnings of $0.20 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 81.82%. A quarter ago, it was expected that this data analytics and cloud monitoring company would post earnings of $0.06 per share when it actually produced earnings of $0.13, delivering a surprise of 116.67%.
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 $326.2 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 12.03%. This compares to year-ago revenues of $177.53 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 12.7% since the beginning of the year versus the S&P 500's decline of -3.8%.
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: unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $0.12 on $305.9 million in revenues for the coming quarter and $0.52 on $1.39 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 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Zuora (ZUO), is yet to report results for the quarter ended January 2022. The results are expected to be released on March 2.
This enterprise software company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Zuora's revenues are expected to be $90.5 million, up 14.1% from the year-ago quarter.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
Zuora, Inc. (ZUO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) came out with quarterly earnings of $0.20 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.
|
Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog (DDOG) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.11 per share. Datadog, which belongs to the Zacks Internet - Software industry, posted revenues of $326.2 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 12.03%.
|
Datadog (DDOG) came out with quarterly earnings of $0.20 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 $326.2 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 12.03%.
|
Datadog (DDOG) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.11 per share. Datadog, Inc. (DDOG): Free Stock Analysis Report While Datadog has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
|
6c9c8120-4d43-42f5-b4fc-c2732d50259a
|
718741.0
|
2022-02-10 00:00:00 UTC
|
Stock Market Today: Dow Jones, S&P 500 Down On Inflation Data; Twilio, Datadog Surges On Earnings Beat
|
DDOG
|
https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-down-on-inflation-data-twilio-datadog-surges-on
|
nan
|
nan
|
Stock Market Today Mid-Morning Updates
On Thursday, the Dow Jones Industrial Average is down 100 points. This comes after key data showed a stronger-than-expected increase in consumer inflation. In recent weeks, investors have so far found relief in strong earnings. This is especially after the Federal Reserve has taken a more aggressive stance on combating rising inflation. Could today’s inflation data put a stop to that relief? Today, Twitter (NYSE: TWTR) announced its latest financials. Fourth-quarter revenue reached $1.57 billion, up by 22% year-over-year, driven by an increase in advertiser demand and solid sales execution. The company also announced a new $4 billion stock buyback program.
Disney (NYSE: DIS) also reported a strong quarter, beating Wall Street estimates on both top and bottom lines. The company posted an adjusted earnings per share of $1.06, above the $0.63 per share estimates. Disney added 11.8 million new Disney+ subscribers last quarter, also beating expectations. It also reported a record profit from its theme parks this quarter. DIS stock is now up by 5% on today’s opening bell.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down 1.04% today while Microsoft(NASDAQ: MSFT) is also down by 1.87%. 3M (NYSE: MMM) and Nike (NYSE: NKE) are trading lower on Thursday. Among the Dow financial leaders, Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading lower as well at 1.16% and 0.064% respectively.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 1.49% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are down by 2.37% and 1.40% respectively today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened lower at 1.88% and 3.27% respectively.
Dow Jones Today: 10-Year Treasury Yields and CPI Rises To New Pandemic Era Highs
Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading 0.88%, 0.37%, and 1.45% lower. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 1.25% on Thursday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also ticking lower by 0.69%.
Today, the U.S. Treasury yields climbed after key inflation data showing that prices across a wide range of goods and services had soared in January. The yield on the 10-year Treasury yield jumped 6 basis points to 1.99%, the highest since August 2019. The yield on the 2-year Treasury bond, the most sensitive duration to interest rates, surged 10 basis points to 1.45%. This would likely put more pressure on the markets, with tech stocks, in particular, feeling a lot of pressure since the start of the year.
U.S. inflation accelerated in January, with the Consumer Price Index (CPI) registering a 7.5% jump in January. Consensus economists were expecting a 7.3% rise, according to data from Bloomberg. This would be the fastest rise since 1982, as well as an acceleration from the 7.0% year-over-year increase observed in December 2021. Core CPI, excluding food and energy rose 6% in January year-over-year, also slightly higher than estimates. The CPI would also be a key metric for markets since inflation is normally seen as a direct trigger for the Fed’s first pandemic-era interest rate hike. Officials say that they expect the first rate hike to be in March.
[Read More] Top Stock Market News For Today February 10, 2022
Twilio (TWLO) Stock On The Rise Following Notable Earnings Beat And Optimistic Guidance
Twilio (NYSE: TWLO) appears to be among the top gainers in the stock market at today’s open. Notably, this seems to be the result of the cloud tech company posting solid numbers in its latest quarterly. After yesterday’s closing bell, Twilio saw a loss per share of $0.20, better than Wall Street projections of $0.22. Moreover, the company also raked in a total revenue of $842.7 million for the quarter. To highlight, this is well above analyst expectations of $767.8 million. Through a combination of narrower-than-predicted losses and strong revenue, TWLO stock is now gaining by more than 10% today. The question now is whether or not investors should be jumping on the company’s shares amidst the current hype.
To put things into perspective, we could refer to the company’s full-year performance. Throughout the fiscal year, Twilio is looking at a total annual revenu of $2.8 billion. Chiefly, this translates to a year-over-year leap of 61%. According to CEO Jeff Lawson, continued momentum across Twilio’s two core platforms is to thank for this. This would be the company’s cloud communications platform alongside its customer data platform. Both of which “gives Twilio an unparalleled view into the customer journey,” while empowering Twilio’s clients. As businesses interact with consumers in the digital space more than ever, TWLO stock could be worth watching.
Source: TradingView
[Read More]Best Stocks To Buy For 2022? 4 Semiconductor Stocks For Your Watchlist
Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition
In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. For the most part, this is likely thanks to the company’s latest announcements. Firstly, Datadog posted an earnings per share of $0.20 on revenue of $326.2 million for the quarter. These two figures would top consensus estimates of $0.11 and $291.42 million respectively. In particular, Datadog is currently looking at a massive year-over-year increase of 83.7% in total revenue.
To provide some context for these figures, it is important to know what Datadog does exactly. In essence, the company operates via a monitoring and security platform for cloud applications. Simply put, it is a cybersecurity firm with a focus on cloud environments. Through Datadog’s software-as-a-service solutions, organizations of varying sizes can engage in safe and efficient digital transformation and cloud migration. While all this is impressive, CEO Olivier Pomel believes that Datadog still has room to grow moving forward. He notes, “We continue to believe we’re in early days with our opportunities in observability. And we are just starting our efforts in cloud security and developer-focused products. We have much to do, and we’re excited about what we’re working on for 2022 and beyond.”
Not to mention, the company also completed its acquisition of CoScreen earlier today. In brief, CoScreen is a collaboration platform for technical teams. Through this play, Datadog now brings real-time collaboration capabilities to its clients. In practice, this adds seamless communication, incident response, and pair programming to engineers on the Datadog platform. After considering all this, it makes sense that investors are eyeing DDOG stock today.
Source: TradingView
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
4 Semiconductor Stocks For Your Watchlist Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. After considering all this, it makes sense that investors are eyeing DDOG stock today.
|
4 Semiconductor Stocks For Your Watchlist Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. After considering all this, it makes sense that investors are eyeing DDOG stock today.
|
4 Semiconductor Stocks For Your Watchlist Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. After considering all this, it makes sense that investors are eyeing DDOG stock today.
|
4 Semiconductor Stocks For Your Watchlist Datadog (DDOG) Stock Jumps On Solid Earnings Figures And CoScreen Acquisition In other news, Datadog (NASDAQ: DDOG), a cloud software firm is gaining at today’s opening bell as well. Evidently, DDOG stock is currently up by a solid 13.66% now. After considering all this, it makes sense that investors are eyeing DDOG stock today.
|
668cd6ed-d2a6-4a93-a9f3-b8bf99ebb796
|
718742.0
|
2022-02-10 00:00:00 UTC
|
Pre-Market Most Active for Feb 10, 2022 : IRNT, TWTR, BBD, WFC, JPM, C, AMD, SQQQ, TQQQ, DDOG, HBAN, DCFC
|
DDOG
|
https://www.nasdaq.com/articles/pre-market-most-active-for-feb-10-2022-%3A-irnt-twtr-bbd-wfc-jpm-c-amd-sqqq-tqqq-ddog-hban
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is down -171.78 to 14,885.18. The total Pre-Market volume is currently 18,478,344 shares traded.
The following are the most active stocks for the pre-market session:
IronNet, Inc. (IRNT) is +0.99 at $4.50, with 5,125,899 shares traded. IRNT's current last sale is 75% of the target price of $6.
Twitter, Inc. (TWTR) is +1.9501 at $39.78, with 3,693,966 shares traded. Smarter Analyst Reports: Musk Sells Additional Tesla Shares; Stock Falls 6%
Banco Bradesco Sa (BBD) is +0.02 at $3.95, with 2,710,947 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
Wells Fargo & Company (WFC) is -0.07 at $58.99, with 2,011,461 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $0.83. , following a 52-week high recorded in prior regular session.
J P Morgan Chase & Co (JPM) is -0.2501 at $156.35, with 1,490,187 shares traded. As reported by Zacks, the current mean recommendation for JPM is in the "buy range".
Citigroup Inc. (C) is -0.06 at $67.78, with 1,003,869 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.86. As reported by Zacks, the current mean recommendation for C is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is -1.38 at $131.47, with 995,041 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $0.84. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.13 at $35.79, with 967,967 shares traded. This represents a 27.14% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.2 at $62.80, with 942,943 shares traded. This represents a 67.4% increase from its 52 Week Low.
Datadog, Inc. (DDOG) is +21.18 at $176.68, with 743,922 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range".
Huntington Bancshares Incorporated (HBAN) is unchanged at $16.14, with 727,115 shares traded. HBAN's current last sale is 90.93% of the target price of $17.75.
Tritium DCFC Limited (DCFC) is -0.1 at $15.60, with 662,041 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog, Inc. (DDOG) is +21.18 at $176.68, with 743,922 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". Smarter Analyst Reports: Musk Sells Additional Tesla Shares; Stock Falls 6%
|
Datadog, Inc. (DDOG) is +21.18 at $176.68, with 743,922 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022.
|
Datadog, Inc. (DDOG) is +21.18 at $176.68, with 743,922 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". The total Pre-Market volume is currently 18,478,344 shares traded.
|
Datadog, Inc. (DDOG) is +21.18 at $176.68, with 743,922 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range". The following are the most active stocks for the pre-market session:
|
733c4a0a-f85d-47c6-b338-cc4d03231d38
|
718743.0
|
2022-02-09 00:00:00 UTC
|
Pre-Market Earnings Report for February 10, 2022 : KO, PEP, PM, LIN, AZN, DUK, MCO, GPN, DDOG, TU, TWTR, LH
|
DDOG
|
https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-10-2022-%3A-ko-pep-pm-lin-azn-duk-mco-gpn-ddog-tu
|
nan
|
nan
|
The following companies are expected to report earnings prior to market open on 02/10/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Coca-Cola Company (KO)is reporting for the quarter ending December 31, 2021. The beverages company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.40. This value represents a 14.89% decrease compared to the same quarter last year. In the past year KO has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 12.07%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for KO is 27.19 vs. an industry ratio of 8.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Pepsico, Inc. (PEP)is reporting for the quarter ending December 31, 2021. The beverages company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.53. This value represents a 4.08% increase compared to the same quarter last year. In the past year PEP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.47%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PEP is 27.52 vs. an industry ratio of 8.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Philip Morris International Inc (PM)is reporting for the quarter ending December 31, 2021. The tobacco company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.30. This value represents a 3.17% increase compared to the same quarter last year. In the past year PM has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.6%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PM is 17.22 vs. an industry ratio of 7.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Linde plc (LIN)is reporting for the quarter ending December 31, 2021. The oil (field services) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.68. This value represents a 16.52% increase compared to the same quarter last year. In the past year LIN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.87%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LIN is 28.18 vs. an industry ratio of -1.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Astrazeneca PLC (AZN)is reporting for the quarter ending December 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.77. This value represents a 42.59% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -14.29%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AZN is 21.96 vs. an industry ratio of 15.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Duke Energy Corporation (DUK)is reporting for the quarter ending December 31, 2021. The electric power utilities company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.95. This value represents a 7.77% decrease compared to the same quarter last year. In the past year DUK has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 3.87%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DUK is 19.96 vs. an industry ratio of 23.90.
Moody's Corporation (MCO)is reporting for the quarter ending December 31, 2021. The financial services company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.38. This value represents a 24.61% increase compared to the same quarter last year. MCO missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.05%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MCO is 27.41 vs. an industry ratio of 10.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Global Payments Inc. (GPN)is reporting for the quarter ending December 31, 2021. The financial transactions company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.04. This value represents a 20.71% increase compared to the same quarter last year. GPN missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -2.44%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for GPN is 18.54 vs. an industry ratio of 21.50.
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2021. The internet software company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-0.03. This value represents a 200.00% 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 2021 Price to Earnings ratio for DDOG is -2528.83 vs. an industry ratio of -42.90.
TELUS Corporation (TU)is reporting for the quarter ending December 31, 2021. The diversified company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.20. This value represents a 17.65% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TU is 28.07 vs. an industry ratio of 37.70.
Twitter, Inc. (TWTR)is reporting for the quarter ending December 31, 2021. The internet software company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.16. This value represents a 42.86% decrease compared to the same quarter last year. TWTR missed the consensus earnings per share in the 3rd calendar quarter of 2021 by -3600%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TWTR is -66.63 vs. an industry ratio of -42.90.
Laboratory Corporation of America Holdings (LH)is reporting for the quarter ending December 31, 2021. The medical/dental supplies company's consensus earnings per share forecast from the 7 analysts that follow the stock is $5.90. This value represents a 44.13% decrease compared to the same quarter last year. In the past year LH has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 42.98%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LH is 10.02 vs. an industry ratio of 24.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2021. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DDOG is -2528.83 vs. an industry ratio of -42.90.
|
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2021. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DDOG is -2528.83 vs. an industry ratio of -42.90.
|
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2021. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DDOG is -2528.83 vs. an industry ratio of -42.90.
|
Datadog, Inc. (DDOG)is reporting for the quarter ending December 31, 2021. DDOG missed the consensus earnings per share in the 1st calendar quarter of 2021 by -50%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DDOG is -2528.83 vs. an industry ratio of -42.90.
|
2b5ebb5d-d562-4a87-b4e6-a2ad41e2ebc6
|
718744.0
|
2022-02-08 00:00:00 UTC
|
Datadog (DDOG) to Post Q4 Earnings: What's in the Offing?
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-to-post-q4-earnings%3A-whats-in-the-offing
|
nan
|
nan
|
Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10.
For the fourth quarter, the company expects revenues between $290 million and $292 million. Non-GAAP earnings are anticipated between 11 cents and 12 cents per share.
The Zacks Consensus Estimate for revenues stands at $291.17 million, suggesting an improvement of 64.01% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 11 cents per share, unchanged over the past 30 days and indicating growth of 83.33% from the year-ago quarter.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 154.17%.
Datadog, Inc. Price and EPS Surprise
Datadog, Inc. price-eps-surprise | Datadog, Inc. Quote
Factors to Note
Datadog’s fourth-quarter performance is likely to have benefited from digital transformation and cloud migration.
Solid adoption of newer products including Real User Monitoring, Synthetic Monitoring and Application Performance Monitoring is expected to have aided customer wins in the to-be-reported quarter.
Contributions from a strong cloud partner base has been a key growth driver.
Datadog’s expanding portfolio of integrated solutions has been acting as a major catalyst in expanding its customer base. The company ended third-quarter 2021 with 1,800 customers with ARR of more than $100K, up 66% year over year. The firm’s dollar-based net retention rate was more than 130% in the last-reported quarter.
However, increasing expenses on research & development, marketing and headcount expansion amid stiff competition in the on-premises infrastructure monitoring space might have limited margin expansion in the fourth quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Datadog has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
Onto Innovation ONTO has an Earnings ESP of +0.90% and a Zacks Rank #2. The company is scheduled to release fourth-quarter 2021 results on Feb 8. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Onto’s shares have gained 53% in the past year against the Zacks Nanotechnology industry fall of 67.7% and the Zacks Computer and Technology Sector’s rise of 2.4%, respectively.
Mandiant MNDT has an Earnings ESP of +2.50% and a Zacks Rank #1. The company is slated to release fourth-quarter 2021 results on Feb 8.
Mandiant’s shares have tumbled 29.8% in the past year against the Zacks Security and the Zacks Computer and Technology Sector’s rise of 31% and 2.4%, respectively.
ACM Research ACMR has an Earnings ESP of +8.62% and a Zacks Rank #1. The company is scheduled to release fourth-quarter 2021 results on Feb 24.
ACM Research’s shares have declined 24.5% in the past year against the Zacks Semiconductor Equipment - Material Services return of 2.5% and the Zacks Computer and Technology sector’s return of 2.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ACM Research, Inc. (ACMR): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
Onto Innovation Inc. (ONTO): Free Stock Analysis Report
Mandiant, Inc. (MNDT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10. Datadog, Inc. (DDOG): Free Stock Analysis Report The Zacks Consensus Estimate for revenues stands at $291.17 million, suggesting an improvement of 64.01% from the year-ago quarter’s reported figure.
|
Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10. What Our Model Says Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
|
Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10. Datadog, Inc. (DDOG): Free Stock Analysis Report What Our Model Says Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
|
Datadog DDOG is slated to release fourth-quarter 2021 results on Feb 10. Datadog, Inc. (DDOG): Free Stock Analysis Report The consensus mark for earnings is pegged at 11 cents per share, unchanged over the past 30 days and indicating growth of 83.33% from the year-ago quarter.
|
609354ac-bb79-4a6a-9f16-e173b93d7b83
|
718745.0
|
2022-02-07 00:00:00 UTC
|
Here's What Investors Need to Know About SEMrush Stock
|
DDOG
|
https://www.nasdaq.com/articles/heres-what-investors-need-to-know-about-semrush-stock
|
nan
|
nan
|
SEMrush (NYSE: SEMR) hasn't even been publicly traded for a full year yet, but already it's caught the attention of investors looking to capitalize on the lucrative and historically high-growth world of software-as-a-service (SaaS) companies. In this segment of Backstage Pass, recorded on Jan. 10, Fool.com contributor Jamie Louko digs into the company's business model and the key points that investors need to know before taking the leap on the recent initial public offering (IPO) stock.
10 stocks we like better than SEMrush 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 SEMrush 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 January 10, 2022
Jamie Louko: Up until about six months ago, I'd never heard of it either. This was one company that I have never heard about until Brian Feroldi and Brian Stoffel talked about it and they really liked it.
I'm like, OK, I might as well give it a look. It is a super interesting company and one that I own shares of myself. What it is, it's a leading marketing technology platform. We have these fintech, everything tech, insurtech. I'm adding another one. We're going to go with martech here.
That stands for marketing technology. What SEMrush does is it provides an all-in-one solution for marketing strategies of all types, whether it's search engine optimization, or social media, or any other marketing strategy that a company wants to take.
SEMrush offers tools to not only research and monitor different marketing strategies for the business but also watch them after they use them to figure out which ones most effectively reach companies' target audience.
This has attracted really big name customers. Jaw-dropping customers like Apple, Walmart, and Tesla. I'm sure if you guys haven't heard SEMrush, you've heard of those three companies. They have tons of customers. They have over 79,000 customers which grew 23% year-over-year.
One company that it really reminds me of is Datadog. Datadog has dozens of tools for observability of infrastructure for businesses. In SEMrush, I see it as a something that's very similar to Datadog only for the marketing side of business.
It offers 50 marketing technology tools and what's really interesting is it is a market leader in 19 of those tools, meaning it has the best tool in 19 of those 50 tools that it offers.
Really, what I like about SEMrush is that it's an all-in-one solution and that's really unheard of in this marketing technology space. There are a lot of companies like Similarweb, Similarweb is a really good competitor for SEMrush.
But Similarweb is a market leader in two, three maybe four of these marketing strategies and tools. But no other competitor comes close to the all-in-one solution with having an all encompassing solution that SEMrush has. This has resulted in a lot of success for the business.
In Q3 alone, they had $49 million in revenue and that grew 53% year-over-year. As you can see over here, SEMrush has been one of the few companies that have crushed the market since it came public in late March of last year. Another really surprising thing, you don't see profitable companies with IPOs nowadays. But these companies just about break even.
In the first nine months of 2021, they had $579,000 in net income and $18 million in free cash flow. The profitability on this company is really surprising and it's mostly because they are such a leader in the industry with such high switching costs. It allows them to not have to spend that much in marketing for their own business.
Just like Datadog, once you get that one customer that joins for one marketing strategy, it's really easy for SEMrush to expand the relationship and get them to take on multiple tools and really expand that relationship with them.
One risk that I saw before investing in the company was, they could be facing competition from Google and Facebook or Meta in terms of marketing on those two platforms, because those two platforms are really strong and really popular. But the one thing that SEMrush has over those players is their neutralities.
SEMrush doesn't care where an advertiser markets. They really only care about what is most efficient for that marketer and therefore, they're willing to offer a lot of places where it might be most efficient to reach their target audience.
Instead of, "Oh, I'm Google. I want you to advertise on Google, so I'm going to tell you to advertise on Google and market on Google." SEMrush really provides that unbiased view that some of those bigger companies can't replicate.
Suzanne Frey, an executive at Alphabet, 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. Jamie Louko owns Apple, Datadog, SEMrush Holdings, Inc., and Tesla. Rachel Warren owns Alphabet (A shares) and Apple. The Motley Fool owns and recommends Alphabet (A shares), Apple, Datadog, Meta Platforms, Inc., and Tesla. The Motley Fool recommends Alphabet (C shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SEMrush (NYSE: SEMR) hasn't even been publicly traded for a full year yet, but already it's caught the attention of investors looking to capitalize on the lucrative and historically high-growth world of software-as-a-service (SaaS) companies. In this segment of Backstage Pass, recorded on Jan. 10, Fool.com contributor Jamie Louko digs into the company's business model and the key points that investors need to know before taking the leap on the recent initial public offering (IPO) stock. SEMrush offers tools to not only research and monitor different marketing strategies for the business but also watch them after they use them to figure out which ones most effectively reach companies' target audience.
|
Jamie Louko owns Apple, Datadog, SEMrush Holdings, Inc., and Tesla. The Motley Fool owns and recommends Alphabet (A shares), Apple, Datadog, Meta Platforms, Inc., and Tesla. The Motley Fool recommends Alphabet (C shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
What SEMrush does is it provides an all-in-one solution for marketing strategies of all types, whether it's search engine optimization, or social media, or any other marketing strategy that a company wants to take. SEMrush offers tools to not only research and monitor different marketing strategies for the business but also watch them after they use them to figure out which ones most effectively reach companies' target audience. It offers 50 marketing technology tools and what's really interesting is it is a market leader in 19 of those tools, meaning it has the best tool in 19 of those 50 tools that it offers.
|
But Similarweb is a market leader in two, three maybe four of these marketing strategies and tools. Another really surprising thing, you don't see profitable companies with IPOs nowadays. The Motley Fool owns and recommends Alphabet (A shares), Apple, Datadog, Meta Platforms, Inc., and Tesla.
|
69b4e1de-5e56-4035-ad18-f3db1a7a5e05
|
718746.0
|
2022-02-07 00:00:00 UTC
|
Nasdaq 100 Movers: MRNA, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-mrna-ddog
|
nan
|
nan
|
In early trading on Monday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.8%. Year to date, Datadog has lost about 9.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 2.3%. Moderna is lower by about 37.3% looking at the year to date performance.
Two other components making moves today are Meta Platforms, trading down 2.0%, and Zscaler, trading up 3.6% on the day.
VIDEO: Nasdaq 100 Movers: MRNA, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Nasdaq 100 Movers: MRNA, 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 Monday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.8%. And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 2.3%.
|
VIDEO: Nasdaq 100 Movers: MRNA, 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 Monday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.8%. Year to date, Datadog has lost about 9.9% of its value.
|
VIDEO: Nasdaq 100 Movers: MRNA, 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 Monday, shares of Datadog topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.8%. And the worst performing Nasdaq 100 component thus far on the day is Moderna, trading down 2.3%.
|
VIDEO: Nasdaq 100 Movers: MRNA, 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 Moderna, trading down 2.3%. Moderna is lower by about 37.3% looking at the year to date performance.
|
dc771b73-2543-4918-b808-3c7fabb76183
|
718747.0
|
2022-02-07 00:00:00 UTC
|
Why Growth Stocks Like Datadog, Trade Desk, and Monolithic Power Crashed Last Month
|
DDOG
|
https://www.nasdaq.com/articles/why-growth-stocks-like-datadog-trade-desk-and-monolithic-power-crashed-last-month
|
nan
|
nan
|
What happened
Many high-flying growth stocks took a beating in January 2022. For example, shares of Datadog (NASDAQ: DDOG) fell 18% last month while Monolithic Power Systems (NASDAQ: MPWR) took an 18.3% haircut, according to data from S&P Global Market Intelligence. The Trade Desk (NASDAQ: TTD) fell even further, posting a 24.1% price drop.
So what
None of these companies earned their discounts from bad news or disappointing results. All three are set to report quarterly results over the next two weeks.
Image source: Getty Images.
We are looking at a diverse group of technology companies here. Datadog offers cloud-based monitoring tools for servers and databases. Monolithic Power specializes in power management tools for the physical data center. The Trade Desk runs online marketplaces that connect digital advertising spaces with ad buyers. One might argue that the trio relies on similar market dynamics from different angles, as their fortunes arguably rise and fall with the general health of global demand for enterprise-scale technology services.
They do have some significant data points in common, though. The three stocks under my microscope posted market-crushing returns in the two years leading up to the painful corrections of January:
TTD data by YCharts
On the last market day of 2021, Monolithic Power Systems was the least expensive ticker on this list, trading at 58 times forward earnings estimates and 83 times trailing free cash flows. The Trade Desk's stock commanded valuation ratios of 101 times forward earnings and 144 times free cash flows. And Datadog's ratios stood above 300 on both counts.
In other words, these three stocks had skyrocketed over the past two years and their shares were trading at nosebleed-inducing valuations. That's why their charts turned negative in a hurry when the market backed away from risky growth stocks last month.
Now what
Market makers are treating growth stocks like a hot potato these days. Historically high inflation rates are pushing lawmakers toward a more conservative fiscal policy with rising interest rates and lower market-boosting efforts. My chosen set of tech companies are barely profitable as they focus on maximizing top-line growth above all else.
All that being said, they are very good at delivering impressive revenue growth. Monolithic and The Trade Desk both boosted their sales by roughly 70% over the past two years, while Datadog's revenue surged more than 140% higher. Furthermore, we're talking about high-quality stocks that have earned five-star ratings (out of five) in our CAPS system.
And don't forget that all three have some meaningful business catalysts on their side.
The digital advertising market is navigating an era of rising restrictions to the user data that companies can use for planning their marketing campaigns, but The Trade Desk has already worked up a promising solution known as Unified ID 2.0.
Datadog is a market leader in a very specific niche of the cybersecurity sector, facing few rivals to its mission-critical tools.
Monolithic Power is shrugging off supply chain challenges as we speak, positioning the company to deliver wider profit margins and accelerated revenue growth over the next few quarters. "We have a lot more [demand] we can chew off now," CEO Michael Hsing said on October's third-quarter earnings call. "As of today, we have blue skies."
While it's true that some growth stocks raced a bit higher than they should have in 2020 and 2021, some of the recent corrections also seem overly harsh. Keep an eye on these companies as they report results over the next couple of weeks. I wouldn't be surprised to see positive surprises lighting fresh fires under some of these high-quality names.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Anders Bylund owns The Trade Desk. The Motley Fool owns 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.
|
For example, shares of Datadog (NASDAQ: DDOG) fell 18% last month while Monolithic Power Systems (NASDAQ: MPWR) took an 18.3% haircut, according to data from S&P Global Market Intelligence. One might argue that the trio relies on similar market dynamics from different angles, as their fortunes arguably rise and fall with the general health of global demand for enterprise-scale technology services. Monolithic and The Trade Desk both boosted their sales by roughly 70% over the past two years, while Datadog's revenue surged more than 140% higher.
|
For example, shares of Datadog (NASDAQ: DDOG) fell 18% last month while Monolithic Power Systems (NASDAQ: MPWR) took an 18.3% haircut, according to data from S&P Global Market Intelligence. The three stocks under my microscope posted market-crushing returns in the two years leading up to the painful corrections of January: TTD data by YCharts On the last market day of 2021, Monolithic Power Systems was the least expensive ticker on this list, trading at 58 times forward earnings estimates and 83 times trailing free cash flows. The Trade Desk's stock commanded valuation ratios of 101 times forward earnings and 144 times free cash flows.
|
For example, shares of Datadog (NASDAQ: DDOG) fell 18% last month while Monolithic Power Systems (NASDAQ: MPWR) took an 18.3% haircut, according to data from S&P Global Market Intelligence. The three stocks under my microscope posted market-crushing returns in the two years leading up to the painful corrections of January: TTD data by YCharts On the last market day of 2021, Monolithic Power Systems was the least expensive ticker on this list, trading at 58 times forward earnings estimates and 83 times trailing free cash flows. The digital advertising market is navigating an era of rising restrictions to the user data that companies can use for planning their marketing campaigns, but The Trade Desk has already worked up a promising solution known as Unified ID 2.0.
|
For example, shares of Datadog (NASDAQ: DDOG) fell 18% last month while Monolithic Power Systems (NASDAQ: MPWR) took an 18.3% haircut, according to data from S&P Global Market Intelligence. All three are set to report quarterly results over the next two weeks. The Trade Desk's stock commanded valuation ratios of 101 times forward earnings and 144 times free cash flows.
|
277f6b3a-7cc8-4480-b154-70bbce0d26f9
|
718748.0
|
2022-02-06 00:00:00 UTC
|
It's Time to Load Up on These 3 Stocks
|
DDOG
|
https://www.nasdaq.com/articles/its-time-to-load-up-on-these-3-stocks
|
nan
|
nan
|
In the realm of high-growth tech stocks, separating quality companies from average ones can be difficult. Many fantastic businesses have sold off recently due to their association with high-growth, unprofitable stocks with unrealistic expectations. Three deserving more respect than what they are receiving are Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Datadog (NASDAQ: DDOG).
While these businesses don't consistently make a profit, each is close to breaking that barrier. Additionally, all three reported great results during the third quarter and are primed to disclose more of the same in the fourth.
Image source: Getty Images.
1. Shopify
A longtime small-business enabler, Shopify has begun shifting its focus to capturing larger customers. Consumers expect slower delivery times and a mediocre product-return system when dealing with small businesses, as they understand these retailers don't have the resources of larger entities. But businesses like Fitbit or Red Bull must deliver a top-tier experience for their customers. Shopify is satisfying this need by expanding its warehouse network so it can provide two-day shipping and easy returns.
Shopify derives 70% of revenue from its merchant solutions segment, which takes a slice of every transaction processed through its software. It makes sense for it to focus on larger retailers because bigger brands equal more sales, and thus more revenue for Shopify.
But it isn't leaving small businesses behind. During the third quarter, it launched Shopify Markets, a tool helping businesses expand across borders by tailoring solutions to fit each country's culture. This allows operations of all sizes to expand their footprint across borders.
Only once in Shopify's history on the public markets has it retracted this much from its all-time high.
SHOP data by YCharts.
With its stock down nearly 50% from its high, it shows how fearful investors are, but as Warren Buffett likes to say, "Be fearful when others are greedy and be greedy when others are fearful." E-commerce isn't going anywhere, and Shopify is poised to report a great fourth quarter, previewed by its great Black Friday and Cyber Monday sales, which were up 23% year over year on the platform.
By attracting larger customers, Shopify will be able to keep growing and maybe match or exceed its 46% third-quarter revenue growth when it reports earnings on Feb. 16. (Corporate Event Data provided by Wall Street Horizon.)
2. MercadoLibre
Latin American e-commerce is dominated by one company, MercadoLibre. Through its commerce site, payments ecosystem, and logistics division, it is providing the luxury of online shopping in a region with more than 635 million people.
On its e-commerce site, MercadoLibre processed 30% more gross merchandise volume (GMV) year over year in the third quarter (period ending Sep. 30) and its Mercado Pago payment platform was used in 96% of those transactions. Of the items sold, its Mercado Envios shipping division played some part in delivering 86% of items shipped to customers, and 80% of all volume was delivered in two days.
MercadoLibre is the undisputed Latin American e-commerce king, and its 73% year-over-year revenue growth in Q3 reflects that. But the market is valuing it like its growth is over.
MELI P/S ratio. Data by YCharts.
Valued at less than nine times sales (price to sales ratio), MercadoLibre has only reached this threshold a few times over the past five years. With the growing middle class across Latin America, MercadoLibre will benefit from increased discretionary spending. Having several tailwinds blowing in its favor, it is poised to outperform the market over the next few years.
3. Datadog
Businesses can choose from hundreds of cloud solutions, if not thousands, to boost employee productivity and provide great customer experiences. But monitoring how the software is functioning as well as maintaining servers and other applications can be a hassle for IT teams.
Datadog's offering lets companies oversee how all their systems are interacting, and it can spot anomalies as they occur. A distinguishing factor from other software-as-a-service companies is that Datadog is industry agnostic and serves customers in multiple fields.
Many companies are adopting Datadog's software, demonstrated by its 75% year-over-year revenue growth. While management didn't give an exact dollar-based net retention rate, it did say the figure remained above 130%, meaning customers spent at least $0.30 more for every dollar this quarter versus last. Much of this growth is driven by customers using more products.
PERCENTAGE OF CUSTOMERS USING MULTIPLE PRODUCTS
PRODUCT USAGE Q3 2021 Q2 2020
Two or more products 77% 71%
Four or more products 31% 20%
Source: Datadog.
With Datadog announcing more than 10 new products at its annual user conference, it has plenty of room to expand with its customers.
The stock trades at an expensive 53 times sales even after dropping nearly 25% from its all-time high. But it trades at such a high level because of its execution and strong business outlook. Investors must understand this risk when investing in Datadog, but if the company achieves its mission, its shareholders will benefit along the way.
The outlook
After a tumultuous month in the market, fourth-quarter earnings have the potential to shake it up even more. While I'm positive each of these three companies will have strong results to share, I have no clue how the market will react after each company reports.
Still, each one has a bright future. Buying the stocks now with the mindset of holding them for three to five years should allow investors to ride out any market-induced volatility. Shopify, MercadoLibre, and Datadog all look like strong buys right now, and their shares are conveniently on sale.
Find out why Shopify is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 10, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keithen Drury owns Alphabet (C shares), MercadoLibre, and Shopify. The Motley Fool owns and recommends Alphabet (A shares), Datadog, MercadoLibre, and Shopify. The Motley Fool recommends Alphabet (C shares) and 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.
|
Three deserving more respect than what they are receiving are Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Datadog (NASDAQ: DDOG). Consumers expect slower delivery times and a mediocre product-return system when dealing with small businesses, as they understand these retailers don't have the resources of larger entities. Datadog Businesses can choose from hundreds of cloud solutions, if not thousands, to boost employee productivity and provide great customer experiences.
|
Three deserving more respect than what they are receiving are Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Datadog (NASDAQ: DDOG). The Motley Fool owns and recommends Alphabet (A shares), Datadog, MercadoLibre, and Shopify. The Motley Fool recommends Alphabet (C shares) and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
|
Three deserving more respect than what they are receiving are Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Datadog (NASDAQ: DDOG). E-commerce isn't going anywhere, and Shopify is poised to report a great fourth quarter, previewed by its great Black Friday and Cyber Monday sales, which were up 23% year over year on the platform. The Motley Fool owns and recommends Alphabet (A shares), Datadog, MercadoLibre, and Shopify.
|
Three deserving more respect than what they are receiving are Shopify (NYSE: SHOP), MercadoLibre (NASDAQ: MELI), and Datadog (NASDAQ: DDOG). By attracting larger customers, Shopify will be able to keep growing and maybe match or exceed its 46% third-quarter revenue growth when it reports earnings on Feb. 16. Many companies are adopting Datadog's software, demonstrated by its 75% year-over-year revenue growth.
|
a7c18c04-169d-4986-8286-8fa4b425f93e
|
718749.0
|
2022-02-04 00:00:00 UTC
|
Nasdaq 100 Movers: ALGN, AMZN
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-algn-amzn
|
nan
|
nan
|
In early trading on Friday, shares of Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.1%. Year to date, Amazon.com has lost about 7.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Align Technology, trading down 4.2%. Align Technology is lower by about 26.6% looking at the year to date performance.
Two other components making moves today are Old Dominion Freight Line, trading down 3.3%, and Datadog, trading up 5.9% on the day.
VIDEO: Nasdaq 100 Movers: ALGN, AMZN
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 Align Technology, trading down 4.2%. Align Technology is lower by about 26.6% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ALGN, AMZN 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 Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.1%. And the worst performing Nasdaq 100 component thus far on the day is Align Technology, trading down 4.2%. Align Technology is lower by about 26.6% looking at the year to date performance.
|
In early trading on Friday, shares of Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.1%. And the worst performing Nasdaq 100 component thus far on the day is Align Technology, trading down 4.2%. Two other components making moves today are Old Dominion Freight Line, trading down 3.3%, and Datadog, trading up 5.9% on the day.
|
And the worst performing Nasdaq 100 component thus far on the day is Align Technology, trading down 4.2%. Align Technology is lower by about 26.6% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ALGN, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
6a070553-8e35-45da-bf22-939867c4314f
|
718750.0
|
2022-02-04 00:00:00 UTC
|
ANALYSIS-Despite client shift to 'multicloud', Amazon notches up sunny sales
|
DDOG
|
https://www.nasdaq.com/articles/analysis-despite-client-shift-to-multicloud-amazon-notches-up-sunny-sales
|
nan
|
nan
|
By Paresh Dave
Feb 4 (Reuters) - Amazon.com Inc AMZN.O has racked up four straight quarters of cloud computing sales growth, a streak analysts are calling impressive and easing concerns that a customer shift toward multiple cloud vendors would hurt its leading market share.
Warnings from industry regulators of the need to cut risk as well as some high-profile cloud outages have increasingly pushed some corporate tech teams to adopt an approach called multicloud. Diversification can also offer better prices and backup options.
But Amazon's strong cloud performance, a large part of its forecast-beating quarterly results on Thursday, underscores robust growth for much of the cloud industry, especially for the biggest players.
Overall spending on cloud infrastructure services jumped 37% to $178 billion in 2021, outpacing 34% growth the year before, according to Synergy Research Group estimates.
The top three clouds, Amazon Web Services (AWS), Microsoft Corp's MSFT.O Azure and Google Cloud, also each grew market share by a percentage point during the last three months of 2021 compared with the prior quarter at the expense of smaller vendors, research company Canalys said on Thursday.
Canalys pegged their shares at 33% for AWS, 22% for Azure and 9% for Google.
"Multicloud doesn't mean spreading your wealth across multiple clouds," said Sid Nag, a vice president at tech advisory firm Gartner. "There's still a primary cloud you're doing most of your business with."
Capital One, which has said it was the first major U.S. bank to fully ditch data centers for the cloud and struck an early deal with AWS, is a case in point.
While it has adopted Google and Azure for some needs, it has expanded with AWS to become one of its larger users, according to two people familiar with the matter. They declined to be identified due to confidentiality agreements.
AWS said that a multicloud approach ultimately generates headaches for customers. "AWS has proven its reliability," it said in a statement.
MULTICLOUD LIMITATIONS
Clouds have become big drivers of growth at the big tech companies. AWS accounted for 13% of Amazon's revenue last year and 74% of its operating income. Cloud made up 7.5% of Alphabet's revenue. The Intelligent Cloud unit, of which Azure is a big chunk, brought in 37% of Microsoft’s overall sales.
Amazon attributed its cloud growth last year to expanding its sales team, adding data centers in new regions and clients moving faster to the cloud in the face of the pandemic.
Its cloud results were one of several factors sending Amazon's stock as much as 17% higher in extended trade on Thursday. Other cloud companies gained as Amazon's results highlighted the industry's prospects. Hashicorp Inc HCP.O and Datadog Inc DDOG.O, firms which aim to make multicloud systems easier to manage, gained 5% and 4% respectively.
The complexities of a multicloud approach may also be currently working in Amazon's favor.
Wells Fargo & Co WFC.N last September announced it would move into the multicloud with Azure and Google.
"Concentration risk is something that is talked about internally, talked about in the regulatory community as a concern," Christopher Marsh-Bourdon, its head of hybrid environments, told Reuters. "Putting all your eggs in one basket isn’t always the best approach."
But he added that the bank is taking time to develop its expertise and will need at least five years before maintaining a significant presence in the cloud.
And some companies that are smaller or newer to the cloud prefer one vendor, said Sigal Zarmi, a board member at Hashicorp.
Some multicloud deals have also been relatively small.
Verint Systems Inc VRNT.O agreed to use Google Cloud as part of a deal to bring on Google as a client, according to a video last year on Verint's website. But Google Cloud is only one of several providers the business software company uses.
"Certain regions and industry sectors have preferences for specific cloud options," Verint Chief Product Officer Jaime Meritt told Reuters. "And we find that a multicloud strategy is the best path for Verint and our customers."
GRAPHIC-Amazon cloud sales growth accelerates in 2021https://tmsnrt.rs/3onPa96
(Reporting by Paresh Dave and Jeffrey Dastin; Editing by Peter Henderson and Edwina Gibbs)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Hashicorp Inc HCP.O and Datadog Inc DDOG.O, firms which aim to make multicloud systems easier to manage, gained 5% and 4% respectively. Warnings from industry regulators of the need to cut risk as well as some high-profile cloud outages have increasingly pushed some corporate tech teams to adopt an approach called multicloud. Capital One, which has said it was the first major U.S. bank to fully ditch data centers for the cloud and struck an early deal with AWS, is a case in point.
|
Hashicorp Inc HCP.O and Datadog Inc DDOG.O, firms which aim to make multicloud systems easier to manage, gained 5% and 4% respectively. Warnings from industry regulators of the need to cut risk as well as some high-profile cloud outages have increasingly pushed some corporate tech teams to adopt an approach called multicloud. The top three clouds, Amazon Web Services (AWS), Microsoft Corp's MSFT.O Azure and Google Cloud, also each grew market share by a percentage point during the last three months of 2021 compared with the prior quarter at the expense of smaller vendors, research company Canalys said on Thursday.
|
Hashicorp Inc HCP.O and Datadog Inc DDOG.O, firms which aim to make multicloud systems easier to manage, gained 5% and 4% respectively. By Paresh Dave Feb 4 (Reuters) - Amazon.com Inc AMZN.O has racked up four straight quarters of cloud computing sales growth, a streak analysts are calling impressive and easing concerns that a customer shift toward multiple cloud vendors would hurt its leading market share. The top three clouds, Amazon Web Services (AWS), Microsoft Corp's MSFT.O Azure and Google Cloud, also each grew market share by a percentage point during the last three months of 2021 compared with the prior quarter at the expense of smaller vendors, research company Canalys said on Thursday.
|
Hashicorp Inc HCP.O and Datadog Inc DDOG.O, firms which aim to make multicloud systems easier to manage, gained 5% and 4% respectively. The top three clouds, Amazon Web Services (AWS), Microsoft Corp's MSFT.O Azure and Google Cloud, also each grew market share by a percentage point during the last three months of 2021 compared with the prior quarter at the expense of smaller vendors, research company Canalys said on Thursday. Other cloud companies gained as Amazon's results highlighted the industry's prospects.
|
9ba1e6dc-1bd9-45da-a507-8f7c7a64aade
|
718751.0
|
2022-01-28 00:00:00 UTC
|
Notable Friday Option Activity: CWH, SC, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/notable-friday-option-activity%3A-cwh-sc-ddog
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Camping World Holdings Inc (Symbol: CWH), where a total of 9,400 contracts have traded so far, representing approximately 940,000 underlying shares. That amounts to about 63.8% of CWH's average daily trading volume over the past month of 1.5 million shares. Especially high volume was seen for the $32 strike put option expiring February 04, 2022, with 1,523 contracts trading so far today, representing approximately 152,300 underlying shares of CWH. Below is a chart showing CWH's trailing twelve month trading history, with the $32 strike highlighted in orange:
Santander Consumer USA Holdings Inc (Symbol: SC) saw options trading volume of 1,391 contracts, representing approximately 139,100 underlying shares or approximately 61.8% of SC's average daily trading volume over the past month, of 225,205 shares. Particularly high volume was seen for the $45 strike call option expiring December 16, 2022, with 626 contracts trading so far today, representing approximately 62,600 underlying shares of SC. Below is a chart showing SC's trailing twelve month trading history, with the $45 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) saw options trading volume of 26,495 contracts, representing approximately 2.6 million underlying shares or approximately 61.6% of DDOG's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 6,825 contracts trading so far today, representing approximately 682,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for CWH options, SC 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.
|
Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 6,825 contracts trading so far today, representing approximately 682,500 underlying shares of DDOG. Below is a chart showing SC's trailing twelve month trading history, with the $45 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 26,495 contracts, representing approximately 2.6 million underlying shares or approximately 61.6% of DDOG's average daily trading volume over the past month, of 4.3 million shares. Below is a chart showing DDOG's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for CWH options, SC options, or DDOG options, visit StockOptionsChannel.com.
|
Below is a chart showing SC's trailing twelve month trading history, with the $45 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 26,495 contracts, representing approximately 2.6 million underlying shares or approximately 61.6% of DDOG's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 6,825 contracts trading so far today, representing approximately 682,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for CWH options, SC options, or DDOG options, visit StockOptionsChannel.com.
|
Below is a chart showing SC's trailing twelve month trading history, with the $45 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 26,495 contracts, representing approximately 2.6 million underlying shares or approximately 61.6% of DDOG's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 6,825 contracts trading so far today, representing approximately 682,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for CWH options, SC options, or DDOG options, visit StockOptionsChannel.com.
|
Below is a chart showing SC's trailing twelve month trading history, with the $45 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) saw options trading volume of 26,495 contracts, representing approximately 2.6 million underlying shares or approximately 61.6% of DDOG's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $150 strike call option expiring February 18, 2022, with 6,825 contracts trading so far today, representing approximately 682,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for CWH options, SC options, or DDOG options, visit StockOptionsChannel.com.
|
e9c3f43f-b8ca-435e-8cfb-e0bfa6d27896
|
718752.0
|
2022-01-27 00:00:00 UTC
|
Datadog (DDOG) Gains As Market Dips: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-gains-as-market-dips%3A-what-you-should-know
|
nan
|
nan
|
Datadog (DDOG) closed at $128.15 in the latest trading session, marking a +0.09% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 28.75% in the past month. In that same time, the Computer and Technology sector lost 13.86%, while the S&P 500 lost 7.87%.
Datadog will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. 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 $291.17 million, up 64.01% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 18.33% lower. Datadog is currently a Zacks Rank #4 (Sell).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 246.76. For comparison, its industry has an average Forward P/E of 43.96, 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 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.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) closed at $128.15 in the latest trading session, marking a +0.09% move from the prior day. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com. Datadog, Inc. (DDOG): Free Stock Analysis Report
|
Datadog, Inc. (DDOG): Free Stock Analysis Report Datadog (DDOG) closed at $128.15 in the latest trading session, marking a +0.09% move from the prior day. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
|
Datadog (DDOG) closed at $128.15 in the latest trading session, marking a +0.09% move from the prior day. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com. Datadog, Inc. (DDOG): Free Stock Analysis Report
|
Datadog (DDOG) closed at $128.15 in the latest trading session, marking a +0.09% move from the prior day. To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com. Datadog, Inc. (DDOG): Free Stock Analysis Report
|
f90daa76-f0c7-499f-a273-3c56101fc99f
|
718753.0
|
2022-01-26 00:00:00 UTC
|
Nasdaq 100 Movers: ADP, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-adp-ddog
|
nan
|
nan
|
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 8.7%. Year to date, Datadog has lost about 23.6% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Automatic Data Processing, trading down 7.7%. Automatic Data Processing is lower by about 18.8% looking at the year to date performance.
Two other components making moves today are Gilead Sciences, trading down 1.6%, and Marvell Technology, trading up 6.9% on the day.
VIDEO: Nasdaq 100 Movers: ADP, DDOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Nasdaq 100 Movers: ADP, 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 Automatic Data Processing, trading down 7.7%. Automatic Data Processing is lower by about 18.8% looking at the year to date performance.
|
VIDEO: Nasdaq 100 Movers: ADP, 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 8.7%. And the worst performing Nasdaq 100 component thus far on the day is Automatic Data Processing, trading down 7.7%.
|
VIDEO: Nasdaq 100 Movers: ADP, 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 8.7%. And the worst performing Nasdaq 100 component thus far on the day is Automatic Data Processing, trading down 7.7%.
|
VIDEO: Nasdaq 100 Movers: ADP, 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 Automatic Data Processing, trading down 7.7%. Automatic Data Processing is lower by about 18.8% looking at the year to date performance.
|
71c45c19-c909-40d8-b67e-1d1680559149
|
718754.0
|
2022-01-25 00:00:00 UTC
|
What Are the Three Most Quoted U.S. Stock Indexes?
|
DDOG
|
https://www.nasdaq.com/articles/what-are-the-three-most-quoted-u.s.-stock-indexes
|
nan
|
nan
|
N
ews about the daily movement of the stock market is an integral part of business newspapers. However, with hundreds of listed companies having their own daily ups and downs, it is sometimes hard to gauge the pulse of the broader market. This is where an index comes into play. Stock market indexes are a measure of the broader stock market movement. Over time, these indexes have become quintessential market benchmarks. And there are various kinds of indexes, representing different market segments.
Here’s a look at the three most quoted and tracked large-cap indexes in the U.S, as well as the exchange traded funds (ETFs) that provide an opportunity to invest in them.
Performance Chart
1. The Dow
Dow Jones Industrial Average (DJIA), or simply The Dow, is the oldest continuing U.S. market index. Launched in 1896, the 126-year-old index is still among the most quoted indexes. The Dow is a composition of 30 U.S. blue-chip companies based on a price-weighted methodology. The selection of stocks is not governed by quantitative rules but more by qualitative criteria. A stock typically is added if the company has an excellent reputation, demonstrates sustained growth, and is of interest to a large investor base. As a price-weighted index, the stock price is the main criteria for inclusion. The Index Committee monitors whether the highest-priced stock in the index has a price that is more than 10 times that of the lowest.
The changes to the index are made on an as-needed basis, usually governed by changes in response to corporate actions and market developments that can be made at any time. The top five sectors—information technology, healthcare, financials, consumer discretionary, and industrials—presently dominate approximately 85% of the index. The index excludes transportation and utilities. The current top ten constituents add up to 53.4%.
UnitedHealth Group (UNH)
Home Depot (HD)
Goldman Sachs Group (GS)
Microsoft (MSFT)
Amgen (AMGN)
Salesforce (CRM)
Caterpillar (CAT)
Visa (V)
Boeing (BA)
Honeywell (HON)
The only way to track the Dow is by investing in the SPDR Dow Jones Industrial Average ETF (DIA). Launched in 1998, the ETF has $29.45 billion as assets under management with an expense ratio of 0.16%.
2. Nasdaq-100
Nasdaq-100 is a representation of companies that are symbolic of innovation, transformation and future growth. These companies directly and indirectly define the modern-day economy. NDX is a comparatively younger index, which was launched in 1985. It is a modified capitalization-weighted index that tracks the largest non-financial companies listed on the Nasdaq Stock Exchange.
With more than 50% allocation to technology stocks, the index gives an opportunity to invest in transformative, long-term themes such as augmented reality (AR), cloud computing, big data, mobile payments, electric vehicles (EVs), streaming services and more. In addition to technology, the index represents sectors such as consumer services, consumer goods, industrials and healthcare. In fact, companies such as Amgen (AMGN), Starbucks (SBUX) and Tesla (TSLA) have been at the forefront of innovation in industries other than technology. The value of NDX-related products currently exceeds $1 trillion. The top ten stocks of Nasdaq-100 currently add to around 52%.
Apple (AAPL)
Microsoft (MSFT)
Alphabet A (GOOGL)
Alphabet (GOOG)
Amazon (AMZN)
Tesla (TSLA)
Meta Platforms (FB)
NVIDIA (NVDA)
ASML Holdings (ASML)
NetEase (NETTF)
During the annual reconstitution in December, six new companies—Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS)—were added.
The most popular way to invest in Nasdaq-100 is through the 22-year-old Invesco QQQ Trust, Series 1 ETF (QQQ). Invesco QQQ is the second-most traded and one of the most liquid ETFs in the United States. It is the fifth-largest U.S. ETF with $188.18 billion as assets under management and has an expense ratio of 0.20%. Investors need to remember that QQQ is cap-weighted like its underlying index NDX, which means that companies with higher market capitalization enjoy a higher weightage in the index.
3. S&P 500
Created in 1957, S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities representing 500 companies. The S&P 500 was the first U.S. market cap-weighted stock market index. The index has companies from around 11 sectors with five sectors currently having double-digit allocations, namely information technology, healthcare, consumer discretionary, financials and communication services, which together add up to around 76% of the index. Overall, S&P 500 covers approximately 80% of available market capitalization in the U.S. and follows a float-adjusted market cap-weighted methodology.
The top ten constituents currently make up 28.4% of the portfolio.
Apple (AAPL)
Microsoft (MSFT)
Amazon (AMZN)
Alphabet A (GOOGL)
Tesla (TSLA)
Alphabet (GOOG)
Meta Platforms (FB)
NVIDIA (NVDA)
Berkshire Hathaway (B)
UnitedHealth Group (UNH)
With $411.55 billion as assets under management, the SPDR S&P 500 ETF (SPY) is not just the largest ETF tracking the S&P 500 index but the largest U.S. ETF. Launched in January 1993, SPY was the very first exchange-traded fund listed in the United States. The iShares Core S&P 500 ETF (IVV) is the second-largest U.S. ETF as well as the second-largest ETF tracking S&P 500 with $307.56 billion as assets under management.
Disclaimer: The author has no position in any stocks mentioned. Investors should consider the above information not as a de facto recommendation, but as an idea for further consideration. The report has been carefully prepared, and any exclusions or errors in it are totally unintentional. All facts and figures (such as assets under management, expense ratio, constituents) as on January 24, 2022, based on fact sheets. *YTD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
ASML Holdings (ASML) NetEase (NETTF) During the annual reconstitution in December, six new companies—Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS)—were added. A stock typically is added if the company has an excellent reputation, demonstrates sustained growth, and is of interest to a large investor base. UnitedHealth Group (UNH) Home Depot (HD) Goldman Sachs Group (GS) Microsoft (MSFT) Amgen (AMGN) Salesforce (CRM) Caterpillar (CAT) Visa (V) Boeing (BA) Honeywell (HON) The only way to track the Dow is by investing in the SPDR Dow Jones Industrial Average ETF (DIA).
|
ASML Holdings (ASML) NetEase (NETTF) During the annual reconstitution in December, six new companies—Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS)—were added. Apple (AAPL) Microsoft (MSFT) Alphabet A (GOOGL) Alphabet (GOOG) Amazon (AMZN) Tesla (TSLA) Meta Platforms (FB) The index has companies from around 11 sectors with five sectors currently having double-digit allocations, namely information technology, healthcare, consumer discretionary, financials and communication services, which together add up to around 76% of the index.
|
ASML Holdings (ASML) NetEase (NETTF) During the annual reconstitution in December, six new companies—Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS)—were added. Stock market indexes are a measure of the broader stock market movement. Investors need to remember that QQQ is cap-weighted like its underlying index NDX, which means that companies with higher market capitalization enjoy a higher weightage in the index.
|
ASML Holdings (ASML) NetEase (NETTF) During the annual reconstitution in December, six new companies—Airbnb (ABNB), Datadog (DDOG), Fortinet (FTNT), Lucid Group (LCID), Palo Alto Networks (PANW), and Zscaler (ZS)—were added. Here’s a look at the three most quoted and tracked large-cap indexes in the U.S, as well as the exchange traded funds (ETFs) that provide an opportunity to invest in them. In fact, companies such as Amgen (AMGN), Starbucks (SBUX) and Tesla (TSLA) have been at the forefront of innovation in industries other than technology.
|
bfa8acb9-9e63-40f9-ac1e-5fe84d77abfc
|
718755.0
|
2022-01-24 00:00:00 UTC
|
4 Investors Pick Their Top Stocks for 2022
|
DDOG
|
https://www.nasdaq.com/articles/4-investors-pick-their-top-stocks-for-2022
|
nan
|
nan
|
While some investors are worried about the next market crash, others are taking advantage of this fact: if you have the cash on hand, it's a great time to add more high-conviction stocks to your portfolio right now, and often at discounted valuations.
In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 10, 2022
Rachel Warren: I don't think any of us can predict where the bottom is. I think we're going to be seeing a lot of ups and downs in the market. You also have a lot more investors that are retail investors that are prone toward more speculative assets now than they had been in times past, and that is also driving some of that volatility.
One other question from Vihaan touches about what we're talking before, "Five team, what are three gold stocks from each of you, you would add or take a position in as you see 5% dip every day, especially tech portfolios?"
So top stocks to pick this year. I know for me personally, Airbnb (NASDAQ: ABNB) is a stock I talked about the other day on our Jan. 3 special. That's one that's definitely one I want to add to my portfolio this year. Shopify (NYSE: SHOP) is one I already own and would like to buy more of and Apple (NASDAQ: AAPL). You guys have anything you want to add to that?
Jason Hall: I going to do it a little differently and I'm going to give out two stocks that are very different stocks that I think are worth taking a look at. I would start, if you're looking for, I think just a great tech stock that's actually not as an insurance company, but just a stock that we associate with tech, that to me just looks incredibly cheap, and that's Lemonade (NYSE: LMND).
It's trading for less than 2.5 times book value right now. When you think about insurance companies, that's how you want to value them, is book value. The insurance assets that they own. This is a company that's, they're just now getting into auto insurance.
Their book value per share is going to skyrocket over the next two years. I'd say start with Lemonade is one that I love.
Then I would say if you're looking for some balance, but you're also looking for a stock that can crush the market, look at Store Capital (NYSE: STOR), ticker STOR, dividend yields well over 4%.
They own tons of stand-alone real estate for like, think about restaurants, think about experiential retail, some brick-and-mortar like regular retail, but a lot of experiential stuff too.
It's just a really great business, great assets. They have a long history growing that dividend and the market is just really undervaluing it right now, so there's two.
Warren: Awesome. Trevor.
Trevor Jennewine: I like both of those picks, I think especially Lemonade there. I think ProShopGuy mentioned the Jan. 3 special, so there's a lot more picks there.
I'm going to go with, like Rachel said, Shopify and MercadoLibre (NASDAQ: MELI). I think they both have a strong competitive position, big market opportunity. Those are two at the top of my list right now.
Warren: Great. Jamie, you have any thoughts?
Jamie Louko: I think we got the same portfolio or something, man [laughs] because I was just looking through my top 10 holdings and I saw Shopify, I saw MercadoLibre and I was like, that's it. Two, and that's it, so you're putting me on my feet here.
But if you want to stick in tech, two holdings that I really, really like are Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET). Datadog is an observability platform that allows companies to monitor performance of their applications and software. Both have massive total addressable markets.
Both have really visionary leaders that are doing a lot and both are really well-loved in the Fool universe.
But if you're looking for more, a stable company, when I look for stable companies, I really look for some nice, strong consumer goods companies with really robust pricing power and brand recognition, and two that stand out to me are Costco (NASDAQ: COST) and Domino's (NYSE: DPZ). Those are my first and third biggest holdings. That's it. Those two.
Warren: Thank you, guys.
Jamie Louko owns Airbnb, Inc., Apple, Cloudflare, Inc., Costco Wholesale, Datadog, Domino's Pizza, Lemonade, Inc., MercadoLibre, and Shopify. Jason Hall owns Airbnb, Inc., Cloudflare, Inc., Datadog, Lemonade, Inc., MercadoLibre, STORE Capital, and Shopify. Rachel Warren owns Apple and Shopify. Trevor Jennewine owns Airbnb, Inc., Lemonade, Inc., MercadoLibre, and Shopify. The Motley Fool owns and recommends Airbnb, Inc., Apple, Cloudflare, Inc., Costco Wholesale, Datadog, Domino's Pizza, Lemonade, Inc., MercadoLibre, and Shopify. The Motley Fool recommends STORE Capital and recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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.
|
But if you want to stick in tech, two holdings that I really, really like are Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET). While some investors are worried about the next market crash, others are taking advantage of this fact: if you have the cash on hand, it's a great time to add more high-conviction stocks to your portfolio right now, and often at discounted valuations. In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond.
|
But if you want to stick in tech, two holdings that I really, really like are Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET). Jamie Louko owns Airbnb, Inc., Apple, Cloudflare, Inc., Costco Wholesale, Datadog, Domino's Pizza, Lemonade, Inc., MercadoLibre, and Shopify. The Motley Fool owns and recommends Airbnb, Inc., Apple, Cloudflare, Inc., Costco Wholesale, Datadog, Domino's Pizza, Lemonade, Inc., MercadoLibre, and Shopify.
|
But if you want to stick in tech, two holdings that I really, really like are Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET). In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond. I would start, if you're looking for, I think just a great tech stock that's actually not as an insurance company, but just a stock that we associate with tech, that to me just looks incredibly cheap, and that's Lemonade (NYSE: LMND).
|
But if you want to stick in tech, two holdings that I really, really like are Datadog (NASDAQ: DDOG) and Cloudflare (NYSE: NET). In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond. One other question from Vihaan touches about what we're talking before, "Five team, what are three gold stocks from each of you, you would add or take a position in as you see 5% dip every day, especially tech portfolios?"
|
ab40e345-57bf-48bd-a716-3936d419b0e1
|
718756.0
|
2022-01-20 00:00:00 UTC
|
Is Datadog (NASDAQ:DDOG) Using Debt Sensibly?
|
DDOG
|
https://www.nasdaq.com/articles/is-datadog-nasdaq%3Addog-using-debt-sensibly
|
nan
|
nan
|
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Datadog, Inc. (NASDAQ:DDOG) makes use of debt. But the more important question is: how much risk is that debt creating?
When Is Debt Dangerous?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
What Is Datadog's Net Debt?
As you can see below, at the end of September 2021, Datadog had US$734.6m of debt, up from US$567.7m a year ago. Click the image for more detail. However, it does have US$1.47b in cash offsetting this, leading to net cash of US$732.5m.
NasdaqGS:DDOG Debt to Equity History January 20th 2022
How Healthy Is Datadog's Balance Sheet?
We can see from the most recent balance sheet that Datadog had liabilities of US$440.2m falling due within a year, and liabilities of US$796.6m due beyond that. Offsetting these obligations, it had cash of US$1.47b as well as receivables valued at US$224.6m due within 12 months. So it actually has US$455.0m more liquid assets than total liabilities.
Having regard to Datadog's size, it seems that its liquid assets are well balanced with its total liabilities. So it's very unlikely that the US$40.8b company is short on cash, but still worth keeping an eye on the balance sheet. Succinctly put, Datadog boasts net cash, so it's fair to say it does not have a heavy debt load! There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Datadog can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Over 12 months, Datadog reported revenue of US$880m, which is a gain of 63%, although it did not report any earnings before interest and tax. With any luck the company will be able to grow its way to profitability.
So How Risky Is Datadog?
Although Datadog had an earnings before interest and tax (EBIT) loss over the last twelve months, it generated positive free cash flow of US$160m. So taking that on face value, and considering the net cash situation, we don't think that the stock is too risky in the near term. Keeping in mind its 63% revenue growth over the last year, we think there's a decent chance the company is on track. We'd see further strong growth as an optimistic indication. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 3 warning signs for Datadog you should be aware of.
If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As with many other companies Datadog, Inc. (NASDAQ:DDOG) makes use of debt. NasdaqGS:DDOG Debt to Equity History January 20th 2022 How Healthy Is Datadog's Balance Sheet? The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'
|
As with many other companies Datadog, Inc. (NASDAQ:DDOG) makes use of debt. NasdaqGS:DDOG Debt to Equity History January 20th 2022 How Healthy Is Datadog's Balance Sheet? So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
|
As with many other companies Datadog, Inc. (NASDAQ:DDOG) makes use of debt. NasdaqGS:DDOG Debt to Equity History January 20th 2022 How Healthy Is Datadog's Balance Sheet? When we think about a company's use of debt, we first look at cash and debt together.
|
As with many other companies Datadog, Inc. (NASDAQ:DDOG) makes use of debt. NasdaqGS:DDOG Debt to Equity History January 20th 2022 How Healthy Is Datadog's Balance Sheet? When we think about a company's use of debt, we first look at cash and debt together.
|
fc54bc47-64b0-4bae-a985-04735aa39999
|
718757.0
|
2022-01-19 00:00:00 UTC
|
Datadog (DDOG) Stock Moves -0.73%: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-stock-moves-0.73%3A-what-you-should-know
|
nan
|
nan
|
In the latest trading session, Datadog (DDOG) closed at $130.91, marking a -0.73% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 25.7% over the past month. This has lagged the Computer and Technology sector's loss of 4.93% and the S&P 500's loss of 0.78% 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, our latest consensus estimate is calling for revenue of $291.17 million, up 64.01% from the prior-year quarter.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 248.29. This valuation marks a premium compared to its industry's average Forward P/E of 47.03.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In the latest trading session, Datadog (DDOG) closed at $130.91, marking a -0.73% 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 25.7% over the past month.
|
In the latest trading session, Datadog (DDOG) closed at $130.91, marking a -0.73% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys.
|
In the latest trading session, Datadog (DDOG) closed at $130.91, marking a -0.73% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report 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.
|
In the latest trading session, Datadog (DDOG) closed at $130.91, marking a -0.73% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report Research indicates that these estimate revisions are directly correlated with near-term share price momentum.
|
44b949fb-6b96-48ed-a7ca-388ffeaf4801
|
718758.0
|
2022-01-13 00:00:00 UTC
|
Here's Why CrowdStrike, Datadog, and MongoDB Were Under Pressure on Thursday
|
DDOG
|
https://www.nasdaq.com/articles/heres-why-crowdstrike-datadog-and-mongodb-were-under-pressure-on-thursday
|
nan
|
nan
|
What happened
It was a modestly negative day in the stock market for much of Thursday. As of about 2:30 p.m. ET, the Dow Jones Industrial Average was flat, while both the S&P 500 and Nasdaq Composite were firmly in the red. The Nasdaq was by far the worst performer of the three major indexes, down by 1.7%.
However, some of the fastest-growing companies in the market continued their recent slump and were dramatically underperforming the broader market. Cybersecurity giant CrowdStrike Holdings (NASDAQ: CRWD) was down by nearly 5%, while database software companies Datadog (NASDAQ: DDOG) and MongoDB (NASDAQ: MDB) were down by 5% and 8%, respectively.
Image source: Getty Images.
So what
There isn't any company-specific news weighing these stocks down today. Instead, the move seems to be a continuation of the slump in high-growth stocks that has been going on for weeks.
In a nutshell, high inflation and rising interest rates are generally negative catalysts for high-growth stocks, and for a few reasons. For one thing, rising rates make lower-risk assets (Treasury bonds, for example) more attractive, so it tends to cause a rotation out of riskier high-growth names like these.
Additionally, rising rates can dramatically increase the cost of capital for businesses like these, and inflation can generally slow down economic activity and can cause businesses and consumers to pump the brakes on technology spending.
Recently, investor expectations for interest rates have dramatically increased. We recently learned that the consumer price index, which is widely considered the best gauge of inflation, grew by 7% year over year in December -- that's the fastest inflation since 1982. What's more, Federal Reserve Chairman Jerome Powell recently indicated that the central bank was prepared to act aggressively with rate hikes to help bring inflation under control. Most voting policymakers see at least three 25-basis-point (0.25%) interest rate hikes in 2022, and it wouldn't be surprising if even that isn't enough.
Now what
One important takeaway is that none of this has anything to do with the underlying businesses of these three companies. There's still a growing need for cybersecurity, analytics, and database solutions, and rising interest rates aren't likely to change this.
To be sure, these stocks may remain under pressure until there's more clarity surrounding interest rates and inflation, and if elevated inflation causes a meaningful pullback in corporate spending, we could even see their growth rates slow temporarily. However, there's no indication of any slowdown in their businesses at this point, and with earnings season right around the corner, we'll soon get a look at each company's latest numbers.
From a long-term perspective, however, nothing has happened that changes the investment thesis. Therefore, now could be a smart time for patient, long-term investors to take a closer look at these and other beaten-down growth stocks.
Find out why CrowdStrike Holdings, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. CrowdStrike Holdings, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 10, 2022
Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool owns 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.
|
Cybersecurity giant CrowdStrike Holdings (NASDAQ: CRWD) was down by nearly 5%, while database software companies Datadog (NASDAQ: DDOG) and MongoDB (NASDAQ: MDB) were down by 5% and 8%, respectively. For one thing, rising rates make lower-risk assets (Treasury bonds, for example) more attractive, so it tends to cause a rotation out of riskier high-growth names like these. What's more, Federal Reserve Chairman Jerome Powell recently indicated that the central bank was prepared to act aggressively with rate hikes to help bring inflation under control.
|
Cybersecurity giant CrowdStrike Holdings (NASDAQ: CRWD) was down by nearly 5%, while database software companies Datadog (NASDAQ: DDOG) and MongoDB (NASDAQ: MDB) were down by 5% and 8%, respectively. In a nutshell, high inflation and rising interest rates are generally negative catalysts for high-growth stocks, and for a few reasons. Recently, investor expectations for interest rates have dramatically increased.
|
Cybersecurity giant CrowdStrike Holdings (NASDAQ: CRWD) was down by nearly 5%, while database software companies Datadog (NASDAQ: DDOG) and MongoDB (NASDAQ: MDB) were down by 5% and 8%, respectively. In a nutshell, high inflation and rising interest rates are generally negative catalysts for high-growth stocks, and for a few reasons. To be sure, these stocks may remain under pressure until there's more clarity surrounding interest rates and inflation, and if elevated inflation causes a meaningful pullback in corporate spending, we could even see their growth rates slow temporarily.
|
Cybersecurity giant CrowdStrike Holdings (NASDAQ: CRWD) was down by nearly 5%, while database software companies Datadog (NASDAQ: DDOG) and MongoDB (NASDAQ: MDB) were down by 5% and 8%, respectively. In a nutshell, high inflation and rising interest rates are generally negative catalysts for high-growth stocks, and for a few reasons. Recently, investor expectations for interest rates have dramatically increased.
|
6ed9f7b2-8f8a-4a40-ac74-740aa2d3bbf1
|
718759.0
|
2022-01-12 00:00:00 UTC
|
Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
|
DDOG
|
https://www.nasdaq.com/articles/datadog-ddog-stock-sinks-as-market-gains%3A-what-you-should-know
|
nan
|
nan
|
In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 7.58% over the past month, lagging the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.
Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $291.17 million, up 64.01% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 279.79. This valuation marks a premium compared to its industry's average Forward P/E of 57.18.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough 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
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.
|
In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report Heading into today, shares of the data analytics and cloud monitoring company had lost 7.58% over the past month, lagging the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.
|
Datadog, Inc. (DDOG): Free Stock Analysis Report In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. Heading into today, shares of the data analytics and cloud monitoring company had lost 7.58% over the past month, lagging the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.
|
In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report 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.
|
In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. Datadog, Inc. (DDOG): Free Stock Analysis Report Heading into today, shares of the data analytics and cloud monitoring company had lost 7.58% over the past month, lagging the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.
|
c9de136e-6032-475b-92cd-570f1c6f383b
|
718760.0
|
2022-01-12 00:00:00 UTC
|
Got $5,000? 3 Stocks To Hold for the Next 20 Years
|
DDOG
|
https://www.nasdaq.com/articles/got-%245000-3-stocks-to-hold-for-the-next-20-years-0
|
nan
|
nan
|
The rate at which data is being produced in the world is staggering. Over the past two years, 90% of the world's data has been produced, and by 2025, the annual amount of data created, captured, copied, and consumed worldwide is expected to more than double from today, according to Statista. With this much data creation in the world, many businesses have been built to help store, monitor, and analyze the massive influx.
As an investor, I look for industries that are expected to grow rapidly over the next decade or more. Companies built on managing data seem to fit that definition. Three companies in particular that work with data could give investors incredible returns over the long term. Here's why Snowflake (NYSE: SNOW), Confluent (NASDAQ: CFLT), and Datadog (NASDAQ: DDOG) are all growing tech stocks worth buying and holding for the next two decades.
Image source: Getty Images.
1. Snowflake
Businesses receive data from almost every part of their business. With an increasing cloud-based presence, the amount of data being produced from software and other sources will keep increasing, and companies will want to look at and analyze this data at some point. However, not all data being produced today will be valuable to companies when initially created. Companies will want to store this data for later use, and Snowflake helps them to do this.
Snowflake is a data warehouse that allows businesses to store their data so they can analyze it in the future. The company makes it free to store data and only charges companies when they want to query and look at it. Snowflake customers find it easy to join, but hard to leave.
Revenue in the third quarter of fiscal 2022 (ending Oct. 31. 2021) hit $334 million, growing 110% year over year. With businesses receiving more data every day, it will result in more analysis, more queries, and more revenue in the future. The company already receives roughly 1.3 million queries each day, but with more data to analyze in the future, companies will likely end up paying more often. This can already be seen in Snowflake's net retention rate, which is 173%.
At 86 times sales, this company is by no means cheap. The stock price could drop 50% to 43 times sales and still be considered expensive, so potential investors should expect some volatility over the next few years. However, its business model allows for incredible usage-based growth over the next few decades, and as businesses obtain more data and seek to analyze it more, Snowflake could reap incredible benefits. Almost half of the Fortune 500 are customers, so Snowflake has become a big name in the data storage space, and I think the company could use that to its advantage to grow rapidly over the next 20 years.
2. Confluent
Even if they send all of their data to Snowflake, many businesses also need to analyze data in real-time. For instance, if you're a bank moving data around, you would want to know about fraud immediately rather than the next morning, and Confluent helps in that process. It integrates data from multiple sources into one data stream where it utilizes some open-source software called Apache Kafka to analyze the data in real-time.
Apache Kafka is an incredibly valuable analysis system that 80% of the Fortune 100 use for some part of their business, but it is incredibly complex to scale and integrate into an entire business. Confluent acts as an expert source, integrating Kafka into an entire enterprise and handling the complex parts that in-house staff aren't able to manage. Considering the value of Kafka, Confluent has seen major adoption from large enterprises: 664 customers spend over $100,000 with Confluent, which helped revenue grow 67% year over year to $103 million in the third quarter of fiscal 2021 (ending Sept. 30).
Confluent is the leading managed Kafka platform today, and that is likely helped by the people running the company. The developers of Kafka are also the founders of Confluent, so nobody knows the ins and outs of Apache Kafka like Confluent's founders. This gives them an unparalleled advantage over other managed Kafka services. As a result of this intangible advantage, the company has a high valuation of 41 times sales -- very high, just like Snowflake. However, with an addressable market that is expected to nearly double to $91 billion by 2024, I think Confluent is worth the premium valuation.
3. Datadog
If a company wants to obtain all of this data and analyze it in real-time, it needs to monitor its software to ensure it is operational and performing well. Companies need to ensure that their infrastructure, applications, and other systems are working properly and securely, and Datadog is the leading platform to help businesses do so.
Datadog has dozens of software tools and integrations that make it the one-stop shop for everything a business may need to monitor and optimize its cloud presence, and this major product optionality has allowed the business to grow immensely. In the company's fiscal 2021 third-quarter earnings (ended Sept. 30), management reported that 31% of its customers are using four or more of its software products or services, which was up from 20% in the year-ago quarter. This shows Datadog's success in its land-and-expand marketing strategy, and with the addition of 10 new products and integrations at its latest user conference, this strategy could continue growing.
All three companies featured here are operating at a loss today, but that is because all three businesses are investing heavily to grow their businesses and eventually reap the benefits of the major growth in data and their respective industries over the next decade. Datadog, for instance, posted a $5.5 million loss in Q3. The loss is improving year over year as Datadog has become the far-and-away leader in the space, and this leadership and unrivaled product offering are the things that could allow this business to continue its rapid growth for years to come.
Find out why Snowflake Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Snowflake Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 16, 2021
Jamie Louko owns Confluent, Inc., Datadog, and Snowflake Inc. The Motley Fool owns and recommends Confluent, Inc., Datadog, and Snowflake Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Here's why Snowflake (NYSE: SNOW), Confluent (NASDAQ: CFLT), and Datadog (NASDAQ: DDOG) are all growing tech stocks worth buying and holding for the next two decades. Almost half of the Fortune 500 are customers, so Snowflake has become a big name in the data storage space, and I think the company could use that to its advantage to grow rapidly over the next 20 years. Confluent acts as an expert source, integrating Kafka into an entire enterprise and handling the complex parts that in-house staff aren't able to manage.
|
Here's why Snowflake (NYSE: SNOW), Confluent (NASDAQ: CFLT), and Datadog (NASDAQ: DDOG) are all growing tech stocks worth buying and holding for the next two decades. Apache Kafka is an incredibly valuable analysis system that 80% of the Fortune 100 use for some part of their business, but it is incredibly complex to scale and integrate into an entire business. Considering the value of Kafka, Confluent has seen major adoption from large enterprises: 664 customers spend over $100,000 with Confluent, which helped revenue grow 67% year over year to $103 million in the third quarter of fiscal 2021 (ending Sept. 30).
|
Here's why Snowflake (NYSE: SNOW), Confluent (NASDAQ: CFLT), and Datadog (NASDAQ: DDOG) are all growing tech stocks worth buying and holding for the next two decades. Snowflake is a data warehouse that allows businesses to store their data so they can analyze it in the future. Confluent Even if they send all of their data to Snowflake, many businesses also need to analyze data in real-time.
|
Here's why Snowflake (NYSE: SNOW), Confluent (NASDAQ: CFLT), and Datadog (NASDAQ: DDOG) are all growing tech stocks worth buying and holding for the next two decades. The company already receives roughly 1.3 million queries each day, but with more data to analyze in the future, companies will likely end up paying more often. Considering the value of Kafka, Confluent has seen major adoption from large enterprises: 664 customers spend over $100,000 with Confluent, which helped revenue grow 67% year over year to $103 million in the third quarter of fiscal 2021 (ending Sept. 30).
|
4695e03b-27ab-40ac-96b7-a0b1b5e1c4f2
|
718761.0
|
2022-01-10 00:00:00 UTC
|
3 No-Brainer Stocks I'd Buy Right Now Without Hesitation
|
DDOG
|
https://www.nasdaq.com/articles/3-no-brainer-stocks-id-buy-right-now-without-hesitation-0
|
nan
|
nan
|
In broad sell-offs, like we have seen in the tech sector over the past few months, it is important for long-term investors to focus more on the business performance, not the stock performance of the companies they are interested in. Finding high-quality companies that are operationally strong while the stock is sinking can sometimes lead to nice buying opportunities.
There are tech stocks on the market right now that fit this description: Shopify (NYSE: SHOP), Datadog (NASDAQ: DDOG), and Roku (NASDAQ: ROKU).
All three of these stocks are down at least 30% from their 52-week highs and more than 20% from their closing prices on Dec. 31. And yet all three businesses are established companies seeing success in their business operations. They've just gotten caught up in a broader market sell-off. These three stocks are each worth a closer look are might even be no-brainer buys today.
Image source: Getty Images.
1. Shopify
Shopify is aiding the rise of small businesses by providing software and an operating system for small- and medium-sized businesses (SMBs) to start, manage, and grow their retail businesses (especially online). With over 1.7 million merchants on the platform, Shopify has become a core platform for SMBs. Shopify helps merchants manage their business across both digital and physical storefronts, and that includes social media and advertising on platforms like TikTok.
Shopify can power almost anything for SMBs. It has services for payment processing, it can offer loans, and it recently launched a service that helps SMBs expand internationally. This consistent innovation and its focus on customer growth are not stopping anytime soon: The company has half a dozen services being built for the future, including a delivery fulfillment service across the U.S.
As a result of the company's efforts, Shopify is seeing strong growth. In the third quarter of 2021, the company hit $400 billion in cumulative gross merchandise volume, and it took just 16 months to go from $200 billion to $400 billion (after taking almost 15 years to reach $200 billion GMV), which shows how rapidly Shopify's services are being adopted today.
As Shopify's customers add more Shopify services, it becomes harder to switch away. Not that they would want to. Other services, like Amazon, tend to promote in-house products on their site ahead of an SMB's product, which hurts growth. Shopify doesn't have its own retail products to compete with and instead focuses on helping its merchants grow (which in turn helps Shopify grow).
Despite this strong business and its past success, Shopify stock has been hammered lately. Shares are down almost 38% from their 52-week highs. Such a disparity between the stock price and the business performance makes this a buying opportunity.
2. Datadog
Datadog is another stock to admire, mainly because its services are so critical to its customers. The company offers observability and security tools to monitor the uptime and performance of cloud applications. This service is invaluable to many companies because uptime and security are mission-critical to any cloud-native business. With dozens of tools that help monitor performance, Datadog makes it easy for companies to keep an eye on thins and be ready when something goes wrong. Unsurprisingly, consumers are willing to pay up for these products: 1,800 customers spent over $100,000 with Datadog in its most recently reported quarter.
Like Shopify, Datadog makes it easy for consumers to become more entrenched in its product ecosystem by continuously developing more mission-critical services and products. As a result, Datadog sees customers becoming more integrated into the product ecosystem. In the third quarter (ending Sept. 30), Datadog reported that 31% of its customers use four or more products, which was up from 20% of customers in the year-ago quarter. The more entrenched they become. the lower the customer churn rate falls (it was in the mid-single digits in Q3).
The stock is trading near 48 times sales -- an extremely expensive multiple for any company -- but it has been running around that rate for more than 18 months now. Since early 2020, Datadog has not traded below 30 times sales, likely because of how strong the business has consistently performed over the past two years. Sometimes expensive companies are worth paying up for because of how bright their future looks, and with an estimated total addressable market of $53 billion by 2025, I think Datadog and its current annual revenue of just under $1 billion has a sizeable opportunity for growth that is worth paying up for.
3. Roku
As of this writing, Roku stock is trading at about 10 times sales -- a valuation that the company has not traded at since mid-2019. The stock is also trading about 63.7% below its 52-week highs set in mid-July. With such a drop, you would think that Roku's business must be in trouble, but the streaming platform has seen plenty of success recently.
The company has performed especially well with its Roku Channel, which was among the top five most-popular services on its platform in the third quarter. Roku's in-house channel (as opposed to outside streaming services that partner with Roku to offer access to their channels) has been lucrative because it doesn't have to share as much of the revenue it generates with partner companies like Netflix. Ad revenue earned on the Roku Channel stays in-house, and that has helped ad revenue has become the company's biggest source of income. Streaming hours on the Roku Channel doubled year over year in Q3, and with major ramp-ups in both acquired and original content, viewership on the Roku Channel could continue growing.
With stable hardware and software-licensing business segments and appealing growth avenues like the Roku Channel, the stock is a steal at 52-week lows, making it an opportunistic bargain for long-term investors. I wouldn't be surprised to see Roku massively outperform the market this year and be a great stock to own in 2022 and beyond.
Find out why Shopify is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 16, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jamie Louko owns Amazon, Datadog, Roku, and Shopify. The Motley Fool owns and recommends Amazon, Datadog, Netflix, Roku, and Shopify. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, 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.
|
There are tech stocks on the market right now that fit this description: Shopify (NYSE: SHOP), Datadog (NASDAQ: DDOG), and Roku (NASDAQ: ROKU). Shopify helps merchants manage their business across both digital and physical storefronts, and that includes social media and advertising on platforms like TikTok. With stable hardware and software-licensing business segments and appealing growth avenues like the Roku Channel, the stock is a steal at 52-week lows, making it an opportunistic bargain for long-term investors.
|
There are tech stocks on the market right now that fit this description: Shopify (NYSE: SHOP), Datadog (NASDAQ: DDOG), and Roku (NASDAQ: ROKU). Like Shopify, Datadog makes it easy for consumers to become more entrenched in its product ecosystem by continuously developing more mission-critical services and products. The Motley Fool owns and recommends Amazon, Datadog, Netflix, Roku, and Shopify.
|
There are tech stocks on the market right now that fit this description: Shopify (NYSE: SHOP), Datadog (NASDAQ: DDOG), and Roku (NASDAQ: ROKU). Shopify Shopify is aiding the rise of small businesses by providing software and an operating system for small- and medium-sized businesses (SMBs) to start, manage, and grow their retail businesses (especially online). This consistent innovation and its focus on customer growth are not stopping anytime soon: The company has half a dozen services being built for the future, including a delivery fulfillment service across the U.S. As a result of the company's efforts, Shopify is seeing strong growth.
|
There are tech stocks on the market right now that fit this description: Shopify (NYSE: SHOP), Datadog (NASDAQ: DDOG), and Roku (NASDAQ: ROKU). In broad sell-offs, like we have seen in the tech sector over the past few months, it is important for long-term investors to focus more on the business performance, not the stock performance of the companies they are interested in. Such a disparity between the stock price and the business performance makes this a buying opportunity.
|
48631d7e-dfc5-40a0-aa77-e04e8ff2f5cf
|
718762.0
|
2022-01-10 00:00:00 UTC
|
Investing in This ETF Right Now Could Make You a Millionaire Retiree
|
DDOG
|
https://www.nasdaq.com/articles/investing-in-this-etf-right-now-could-make-you-a-millionaire-retiree-1
|
nan
|
nan
|
So you want to amass a million dollars by retirement, and you'd like to get there by investing in an exchange-traded fund (ETF) -- a fund that trades like a stock. That's a fine plan (though some people might want to aim for more than a million dollars).
There are more than 2,500 ETFs out there, so it's fair to find the thought of picking the best one, or a very good one, daunting. Here's a look at a solid contender for your long-term investing dollars, along with a bonus ETF.
Image source: Getty Images.
Meet the Vanguard Total Stock Market ETF
When choosing an ETF, many people opt for the SPDR S&P 500 ETF (NYSEMKT: SPY), which is evident from the fund's No. 1 ranking among the biggest ETFs. It's a solid choice, offering roughly the same return as the S&P 500 index of about 500 of America's biggest companies, while charging a tiny annual fee of 0.0945%.
Consider investing those long-term dollars in the Vanguard Total Stock Market ETF (NYSEMKT: VTI) instead, though. While the S&P 500 index focuses on large companies, with its constituents making up around 80% of the overall U.S. stock market's value, this ETF tracks the entire stock market. This means you'll be invested not only in all of the largest publicly traded companies in the U.S., but you'll also have your money distributed across medium-sized and small companies on the U.S. markets, too. Better still, the ETF's expense ratio (its annual fee) is a minuscule 0.03%.
Here's a look at how these two ETFs have performed over the past five, 10, and 15 years:
AVERAGE ANNUAL RETURN OVER:
SPDR S&P 500 ETF
VANGUARD TOTAL STOCK MARKET ETF
5 years
18.14%
10.72%
10 years
16.3%
16.17%
15 years
10.6%
17.70%
Data source: Morningstar.com.
You can't quite compare these returns to the overall market, because each of the ETFs, in its way, is the market. Thanks to their very low fees, their returns will closely mirror the returns of the S&P 500 or the total U.S. stock market.
To see how the Vanguard ETF (or the S&P 500-focused ETF, for that matter) would grow your money to a million dollars, check out the table below, which uses a somewhat conservative growth rate of 8%:
GROWING AT 8% FOR:
$5,000 INVESTED ANNUALLY
$10,000 INVESTED ANNUALLY
$15,000 INVESTED ANNUALLY
5 years
$31,680
$63,359
$95,039
10 years
$78,227
$156,455
$234,682
15 years
$146,621
$293,243
$439,864
20 years
$247,115
$494,229
$741,344
25 years
$394,772
$789,544
$1.2 million
30 years
$611,729
$1.2 million
$1.8 million
35 years
$930,511
$1.9 million
$2.8 million
40 years
$1.4 million
$2.8 million
$4.2 million
Data source: calculations by author.
A bonus ETF to consider
If you'd like to aim even higher than average stock market returns, take a look at the Invesco QQQ Trust (NASDAQ: QQQ), which is made up of the 100 largest non-financial companies listed on the Nasdaq stock market, as measured by market capitalization. Among them you'll find many well-known names that have soared in recent years, such as:
Alphabet
Amazon.com
Apple
Meta Platforms
Microsoft
Nvidia
Tesla
And it also has plenty of other well-regarded smaller (but still quite big) companies, such as:
Activision Blizzard
Airbnb
Costco
Crowdstrike
Datadog
DocuSign
Intuitive Surgical
Palo Alto Networks
Starbucks
Zoom Video Communications
Not surprisingly, then, the ETF sports an impressive track record:
AVERAGE ANNUAL RETURN OVER:
INVESCO QQQ TRUST
5 years
27%
10 years
22.1%
15 years
16.6%
Data source: Morningstar.com.
Indeed, according to the fund, it's "rated the best-performing large-cap growth fund (1 of 313) based on total return over the past 15 years by Lipper, as of Sept. 30, 2021." Its annual fee is also quite reasonable, at 0.20%.
You would probably do quite well investing in any of the three ETFs mentioned above, and you don't have to pick just one. You might spread your dollars across two or three of them, or all of them. Just be sure to have a plan for how you'll amass the money you'll need by retirement, and act on that plan, whether it involves investing in ETFs over the long run or not.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 6/15/21
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Selena Maranjian owns Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, Datadog, DocuSign, Intuitive Surgical, Meta Platforms, Inc., Microsoft, and Starbucks. The Motley Fool owns and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, DocuSign, Intuitive Surgical, Meta Platforms, Inc., Microsoft, Nvidia, Palo Alto Networks, Starbucks, Tesla, Vanguard Total Stock Market ETF, and Zoom Video Communications. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $193.33 calls on Intuitive Surgical, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2022 $115 calls on Starbucks, short January 2022 $200 calls on Intuitive Surgical, 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.
|
It's a solid choice, offering roughly the same return as the S&P 500 index of about 500 of America's biggest companies, while charging a tiny annual fee of 0.0945%. Among them you'll find many well-known names that have soared in recent years, such as: Alphabet Amazon.com Apple Meta Platforms Microsoft Nvidia Tesla And it also has plenty of other well-regarded smaller (but still quite big) companies, such as: Activision Blizzard Airbnb Costco Crowdstrike Datadog DocuSign Intuitive Surgical Palo Alto Networks Starbucks Zoom Video Communications Not surprisingly, then, the ETF sports an impressive track record: The Motley Fool owns and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, DocuSign, Intuitive Surgical, Meta Platforms, Inc., Microsoft, Nvidia, Palo Alto Networks, Starbucks, Tesla, Vanguard Total Stock Market ETF, and Zoom Video Communications.
|
5 years $31,680 $63,359 $95,039 10 years $78,227 $156,455 $234,682 15 years $146,621 $293,243 $439,864 20 years $247,115 $494,229 $741,344 25 years $394,772 $789,544 $1.2 million 30 years $611,729 $1.2 million $1.8 million 35 years $930,511 $1.9 million $2.8 million 40 years $1.4 million $2.8 million $4.2 million Data source: calculations by author. The Motley Fool owns and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, DocuSign, Intuitive Surgical, Meta Platforms, Inc., Microsoft, Nvidia, Palo Alto Networks, Starbucks, Tesla, Vanguard Total Stock Market ETF, and Zoom Video Communications. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $193.33 calls on Intuitive Surgical, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2022 $115 calls on Starbucks, short January 2022 $200 calls on Intuitive Surgical, and short March 2023 $130 calls on Apple.
|
5 years $31,680 $63,359 $95,039 10 years $78,227 $156,455 $234,682 15 years $146,621 $293,243 $439,864 20 years $247,115 $494,229 $741,344 25 years $394,772 $789,544 $1.2 million 30 years $611,729 $1.2 million $1.8 million 35 years $930,511 $1.9 million $2.8 million 40 years $1.4 million $2.8 million $4.2 million Data source: calculations by author. A bonus ETF to consider If you'd like to aim even higher than average stock market returns, take a look at the Invesco QQQ Trust (NASDAQ: QQQ), which is made up of the 100 largest non-financial companies listed on the Nasdaq stock market, as measured by market capitalization. The Motley Fool owns and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, CrowdStrike Holdings, Inc., Datadog, DocuSign, Intuitive Surgical, Meta Platforms, Inc., Microsoft, Nvidia, Palo Alto Networks, Starbucks, Tesla, Vanguard Total Stock Market ETF, and Zoom Video Communications.
|
So you want to amass a million dollars by retirement, and you'd like to get there by investing in an exchange-traded fund (ETF) -- a fund that trades like a stock. It's a solid choice, offering roughly the same return as the S&P 500 index of about 500 of America's biggest companies, while charging a tiny annual fee of 0.0945%. See the 10 stocks Stock Advisor returns as of 6/15/21 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
|
078fe1ca-1ae5-484b-89b5-28279875bd03
|
718763.0
|
2022-01-06 00:00:00 UTC
|
Technology Sector Update for 01/06/2022: CALX,FIVN,CRSR,DDOG,AMZN
|
DDOG
|
https://www.nasdaq.com/articles/technology-sector-update-for-01-06-2022%3A-calxfivncrsrddogamzn
|
nan
|
nan
|
Technology stocks were edging lower again, with the SPDR Technology Select Sector ETF (XLK) Thursday dropping 0.4% and the Philadelphia Semiconductor Index sliding 0.1 % Thursday afternoon.
In company news, Calix (CALX) turned 4.8% lower in late trade, giving back a 1.2% advance soon after Thursday's opening bell that followed the cloud and software firm saying subscriber adoption of its Revenue EDGE Suites has grown more than 800% among broadband service providers over the past 11 months.
Corsair Gaming (CRSR) slid 3.2% after the gaming and streaming peripherals company announced its acquisition of a 51% stake in Taiwan-based consumer electronics company iDisplay Technology. Corsair previously partnered with iDisplay in 2015 to develop the Stream Deck studio control platform.
Datadog (DDOG) fell 1.3%, reversing a 4% midday gain that followed the analytics company disclosing a partnership with Amazon (AMZN) Web Services for observability and security.
To the upside, Five9 (FIVN) added 1.5% after Jefferies raised its investment recommendation for the cloud software firm to buy from hold previously while keeping its $180 price target on the company's stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) fell 1.3%, reversing a 4% midday gain that followed the analytics company disclosing a partnership with Amazon (AMZN) Web Services for observability and security. In company news, Calix (CALX) turned 4.8% lower in late trade, giving back a 1.2% advance soon after Thursday's opening bell that followed the cloud and software firm saying subscriber adoption of its Revenue EDGE Suites has grown more than 800% among broadband service providers over the past 11 months. To the upside, Five9 (FIVN) added 1.5% after Jefferies raised its investment recommendation for the cloud software firm to buy from hold previously while keeping its $180 price target on the company's stock.
|
Datadog (DDOG) fell 1.3%, reversing a 4% midday gain that followed the analytics company disclosing a partnership with Amazon (AMZN) Web Services for observability and security. Technology stocks were edging lower again, with the SPDR Technology Select Sector ETF (XLK) Thursday dropping 0.4% and the Philadelphia Semiconductor Index sliding 0.1 % Thursday afternoon. Corsair Gaming (CRSR) slid 3.2% after the gaming and streaming peripherals company announced its acquisition of a 51% stake in Taiwan-based consumer electronics company iDisplay Technology.
|
Datadog (DDOG) fell 1.3%, reversing a 4% midday gain that followed the analytics company disclosing a partnership with Amazon (AMZN) Web Services for observability and security. In company news, Calix (CALX) turned 4.8% lower in late trade, giving back a 1.2% advance soon after Thursday's opening bell that followed the cloud and software firm saying subscriber adoption of its Revenue EDGE Suites has grown more than 800% among broadband service providers over the past 11 months. Corsair Gaming (CRSR) slid 3.2% after the gaming and streaming peripherals company announced its acquisition of a 51% stake in Taiwan-based consumer electronics company iDisplay Technology.
|
Datadog (DDOG) fell 1.3%, reversing a 4% midday gain that followed the analytics company disclosing a partnership with Amazon (AMZN) Web Services for observability and security. Technology stocks were edging lower again, with the SPDR Technology Select Sector ETF (XLK) Thursday dropping 0.4% and the Philadelphia Semiconductor Index sliding 0.1 % Thursday afternoon. In company news, Calix (CALX) turned 4.8% lower in late trade, giving back a 1.2% advance soon after Thursday's opening bell that followed the cloud and software firm saying subscriber adoption of its Revenue EDGE Suites has grown more than 800% among broadband service providers over the past 11 months.
|
d2982bc2-3a74-404b-a8b8-8815436309f7
|
718764.0
|
2022-01-06 00:00:00 UTC
|
Notable Thursday Option Activity: EVLO, ALNY, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-evlo-alny-ddog
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Evelo Biosciences Inc (Symbol: EVLO), where a total volume of 1,145 contracts has been traded thus far today, a contract volume which is representative of approximately 114,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.9% of EVLO's average daily trading volume over the past month, of 239,170 shares. Especially high volume was seen for the $2.50 strike call option expiring May 20, 2022, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of EVLO. Below is a chart showing EVLO's trailing twelve month trading history, with the $2.50 strike highlighted in orange:
Alnylam Pharmaceuticals Inc (Symbol: ALNY) saw options trading volume of 4,824 contracts, representing approximately 482,400 underlying shares or approximately 47% of ALNY's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $155 strike put option expiring January 21, 2022, with 2,946 contracts trading so far today, representing approximately 294,600 underlying shares of ALNY. Below is a chart showing ALNY's trailing twelve month trading history, with the $155 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) options are showing a volume of 18,747 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 46% of DDOG's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $125 strike put option expiring June 17, 2022, with 1,500 contracts trading so far today, representing approximately 150,000 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 EVLO options, ALNY 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.
|
Particularly high volume was seen for the $125 strike put option expiring June 17, 2022, with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of DDOG. Below is a chart showing ALNY's trailing twelve month trading history, with the $155 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 18,747 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 46% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
|
Below is a chart showing ALNY's trailing twelve month trading history, with the $155 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 18,747 contracts thus far today. 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 EVLO options, ALNY options, or DDOG options, visit StockOptionsChannel.com. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 46% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
|
Particularly high volume was seen for the $125 strike put option expiring June 17, 2022, with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of DDOG. Below is a chart showing ALNY's trailing twelve month trading history, with the $155 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 18,747 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 46% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
|
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 EVLO options, ALNY options, or DDOG options, visit StockOptionsChannel.com. Below is a chart showing ALNY's trailing twelve month trading history, with the $155 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 18,747 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 46% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
|
b87e3c50-ea60-4eba-b79c-7eec695ee386
|
718765.0
|
2022-01-06 00:00:00 UTC
|
The 3 Best Software Stocks to Buy in 2022 and Beyond
|
DDOG
|
https://www.nasdaq.com/articles/the-3-best-software-stocks-to-buy-in-2022-and-beyond
|
nan
|
nan
|
Software companies are some of the fastest-growing stocks in the tech sector for three simple reasons: Software is easier to distribute than hardware, it locks in customers with sticky subscriptions, and it's on the front line of secular growth trends like artificial intelligence (AI), analytics, and automation.
However, software stocks can also be expensive, volatile, difficult to understand, and highly exposed to inflation and interest rate headwinds. So today, I'll highlight three high-growth software stocks that are still worth buying even as many investors rotate toward safer blue-chip stalwarts.
Image source: Getty Images.
1. Palantir
Palantir (NYSE: PLTR) provides data mining and analytics services for large government and enterprise clients. Its Gotham platform mainly serves U.S. government agencies, while its Foundry platform leverages that technology to help large companies streamline their operations and make data-driven decisions.
Palantir's revenue rose 25% in 2019 and grew 47% in 2020. It expects its revenue to increase 40% in 2021 and grow at least 30% annually from 2021 to 2025. That bullish long-term forecast implies its annual revenue will more than triple from $1.53 billion in 2021 to over $4 billion by 2025.
Palantir isn't profitable on a generally accepted accounting principles (GAAP) basis yet, but its adjusted gross and operating margins have been steadily expanding as its free cash flow (FCF) turned positive in 2021. Analysts expect it to remain unprofitable for at least the next two years.
Palantir's stock trades at 17 times next year's sales. It certainly isn't a value stock yet, but it has a reasonable valuation compared to other high-growth tech stocks. Cloudflare, for example, is only growing slightly faster than Palantir but trades at over 50 times next year's sales.
If you believe Palantir can achieve its goal of becoming the "default operating system for data across the U.S. government" while leveraging that hardened reputation to gain more enterprise customers, then it might be a great time to accumulate more shares of this high-growth stock.
2. Zendesk
Zendesk (NYSE: ZEN) provides cloud-based customer relationship management (CRM) tools to approximately 111,800 customers worldwide.
Unlike Salesforce (NYSE: CRM), which provides a full suite of CRM tools for large enterprises, Zendesk provides simpler chat-based customer support and ticketing services catered for use by smaller companies. Growing companies can also integrate Zendesk's services into Salesforce's platform.
Zendesk's revenue grew 26% in fiscal 2020, and it expects 29%-30% growth this year. It ended last quarter with a dollar-based net expansion rate of 122%, which exceeded its own long-term target of 110%-120%.
Zendesk isn't profitable on a GAAP basis yet, but its adjusted gross margins have been expanding. Its non-GAAP earnings also grew 68% in 2020, and analysts anticipate another 25% earnings growth this year.
Zendesk's stock stumbled over the past three months as investors fretted over its planned acquisition of Momentive (NASDAQ: MNTV), which owns Survey Monkey. That all-stock takeover will likely dilute Zendesk's shares and squeeze its margins, but it should also significantly expand its ecosystem.
Zendesk's stock trades at just seven times next year's sales after its latest pullback. Salesforce trades at the same price-to-sales ratio despite growing at a slower rate. That valuation gap suggests that Zendesk's stock might rebound once it allays investors' concerns about the Momentive deal.
3. Datadog
Datadog's (NASDAQ: DDOG) platform enables IT professionals to monitor the performance of various servers, databases, cloud services, and mobile apps in real-time on its unified dashboards. That approach breaks down silos, saves a lot of time, and makes it much easier to spot potential problems.
Datadog's growth reflects its disruptive potential. Its revenue rose 83% in 2019 and grew 66% in 2020. It expects its revenue to rise approximately 65% this year. Its net retention rate has comfortably remained above 130% over the past year, and its number of customers that generated over $100,000 in annual recurring revenue (ARR) grew 66% year over year last quarter.
Like Palantir and Zendesk, Datadog is still unprofitable by GAAP measures. Its gross margins are also being squeezed by higher cloud hosting costs. However, Datadog turned profitable on a non-GAAP basis in 2020, and it expects its non-GAAP earnings to grow roughly 80% this year as it reins in its cloud spending.
Datadog's stock isn't cheap at 32 times next year's sales. However, its impressive growth rates and disruptive "silo-busting" potential could justify that higher valuation and make it a promising long-term investment.
10 stocks we like better than Palantir Technologies 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 Palantir Technologies 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 December 16, 2021
Leo Sun owns Palantir Technologies Inc. and Salesforce.com. The Motley Fool owns and recommends Cloudflare, Inc., Datadog, Palantir Technologies Inc., Salesforce.com, and Zendesk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog Datadog's (NASDAQ: DDOG) platform enables IT professionals to monitor the performance of various servers, databases, cloud services, and mobile apps in real-time on its unified dashboards. Palantir isn't profitable on a generally accepted accounting principles (GAAP) basis yet, but its adjusted gross and operating margins have been steadily expanding as its free cash flow (FCF) turned positive in 2021. If you believe Palantir can achieve its goal of becoming the "default operating system for data across the U.S. government" while leveraging that hardened reputation to gain more enterprise customers, then it might be a great time to accumulate more shares of this high-growth stock.
|
Datadog Datadog's (NASDAQ: DDOG) platform enables IT professionals to monitor the performance of various servers, databases, cloud services, and mobile apps in real-time on its unified dashboards. Palantir Palantir (NYSE: PLTR) provides data mining and analytics services for large government and enterprise clients. However, Datadog turned profitable on a non-GAAP basis in 2020, and it expects its non-GAAP earnings to grow roughly 80% this year as it reins in its cloud spending.
|
Datadog Datadog's (NASDAQ: DDOG) platform enables IT professionals to monitor the performance of various servers, databases, cloud services, and mobile apps in real-time on its unified dashboards. Palantir's stock trades at 17 times next year's sales. Its net retention rate has comfortably remained above 130% over the past year, and its number of customers that generated over $100,000 in annual recurring revenue (ARR) grew 66% year over year last quarter.
|
Datadog Datadog's (NASDAQ: DDOG) platform enables IT professionals to monitor the performance of various servers, databases, cloud services, and mobile apps in real-time on its unified dashboards. It expects its revenue to increase 40% in 2021 and grow at least 30% annually from 2021 to 2025. It certainly isn't a value stock yet, but it has a reasonable valuation compared to other high-growth tech stocks.
|
9515a53b-91c7-4dbb-b989-64ef6d269126
|
718766.0
|
2022-01-06 00:00:00 UTC
|
Datadog, AWS Join Hands to Offer Security Solutions
|
DDOG
|
https://www.nasdaq.com/articles/datadog-aws-join-hands-to-offer-security-solutions
|
nan
|
nan
|
Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ:DDOG) recently announced that it has entered into a global strategic partnership agreement with Amazon Web Services, Inc. (AWS) to provide observability and security solutions to its customers.
Following the news, shares of the company jumped 4.1% to close at $151.50 in Wednesday’s extended trading session.
Datadog is slated to report its upcoming earnings on February 17, 2022.
Strategic Impact
Through this partnership, users can benefit from Datadog’s full-stack security across all layers of their cloud environment and enhance security signals with Datadog-managed threat intelligence feeds.
Management Commentary
The Senior Vice-President of Product & Community at Datadog, Ilan Rabinovitch, said, "This extended partnership with AWS will help speed the pace of innovation for customers using AWS and Datadog, and we are excited to provide deeper product alignment and go-to-market initiatives to ultimately benefit our customers."
Price Target
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 12 Buys, 3 Holds and 1 Sell. The average Datadog stock prediction of $213.92 implies that the stock has upside potential of 47% from current levels. Shares have gained about 59.3% over the past year.
Positive Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on DDOG with 1.1% of investors on TipRanks increasing their exposure to DDOG stock over the past 30 days.
Download the TipRanks mobile app now
Related News:
Voyager Digital Announces Estimated Revenue for Q2
Pfizer to Supply U.S. Government with 10M Additional Courses of PAXLOVID
Ford to Ramp Up Electric F-150 Lightning Pickup Production; Shares Jump
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ:DDOG) recently announced that it has entered into a global strategic partnership agreement with Amazon Web Services, Inc. (AWS) to provide observability and security solutions to its customers. Positive Sentiment TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on DDOG with 1.1% of investors on TipRanks increasing their exposure to DDOG stock over the past 30 days. Management Commentary The Senior Vice-President of Product & Community at Datadog, Ilan Rabinovitch, said, "This extended partnership with AWS will help speed the pace of innovation for customers using AWS and Datadog, and we are excited to provide deeper product alignment and go-to-market initiatives to ultimately benefit our customers."
|
Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ:DDOG) recently announced that it has entered into a global strategic partnership agreement with Amazon Web Services, Inc. (AWS) to provide observability and security solutions to its customers. Positive Sentiment TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on DDOG with 1.1% of investors on TipRanks increasing their exposure to DDOG stock over the past 30 days. Download the TipRanks mobile app now Related News: Voyager Digital Announces Estimated Revenue for Q2 Pfizer to Supply U.S. Government with 10M Additional Courses of PAXLOVID Ford to Ramp Up Electric F-150 Lightning Pickup Production; Shares Jump The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Positive Sentiment TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on DDOG with 1.1% of investors on TipRanks increasing their exposure to DDOG stock over the past 30 days. Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ:DDOG) recently announced that it has entered into a global strategic partnership agreement with Amazon Web Services, Inc. (AWS) to provide observability and security solutions to its customers. Management Commentary The Senior Vice-President of Product & Community at Datadog, Ilan Rabinovitch, said, "This extended partnership with AWS will help speed the pace of innovation for customers using AWS and Datadog, and we are excited to provide deeper product alignment and go-to-market initiatives to ultimately benefit our customers."
|
Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ:DDOG) recently announced that it has entered into a global strategic partnership agreement with Amazon Web Services, Inc. (AWS) to provide observability and security solutions to its customers. Positive Sentiment TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on DDOG with 1.1% of investors on TipRanks increasing their exposure to DDOG stock over the past 30 days. Following the news, shares of the company jumped 4.1% to close at $151.50 in Wednesday’s extended trading session.
|
cbf763f3-3abd-4604-8e1e-d96ff43e1ece
|
718767.0
|
2022-01-05 00:00:00 UTC
|
Why Datadog, Appian, and MongoDB Crashed and Burned Today
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-appian-and-mongodb-crashed-and-burned-today
|
nan
|
nan
|
What happened
Shares of software darlings Datadog (NASDAQ: DDOG), Appian (NASDAQ: APPN), and MongoDB (NASDAQ: MDB) were down 7.8%, 7.7%, and 7.9%, respectively, on Wednesday.
The severe sell-off, in nearly equal proportions, indicates the drawdowns didn't have anything to do with these top tech names specifically. Rather, the likely culprit was the release of minutes from the Federal Reserve's December meeting, which indicated tighter financial conditions could be ahead.
Image source: Getty Images.
So what
Fed officials had already announced in December that the Federal Reserve would be tapering its purchases of Treasury bonds and mortgage-backed securities, and officials had already increased estimates for interest rate hikes this year. However, the minutes released on Wednesday revealed the possibility for even more aggressive moves, including letting the Fed's balance sheet shrink in short order.
Markets have been helped along by the injection of liquidity from the Federal Reserve for really the last decade, with very few periods of tightening. Datadog, MongoDB, and Appian are all somewhat disruptive software products posting impressive revenue growth rates, and high revenue growth combined with zero interest rates has helped technology growth stocks like these trade to very frothy valuations. Even after big drawdowns in each of these stocks, they still trade at price-to-sales (P/S) ratios of 51, 35, and 12, respectively. And for all their growth, none of these stocks currently make profits.
DDOG PS Ratio data by YCharts
Not making any profits in the present is fine, but all stocks do trade with the expectation that one day, profits will come. The problem with these names is that when interest rates rise and financial conditions tighten, investors have more of a present need for earnings and dividends, so earnings far, far off in the future become much less attractive -- even if nothing has changed within these businesses.
Furthermore, each of these three stocks has grown in size recently, and it may be more difficult to keep up their pace of growth as they get bigger. So decelerating growth combined with higher discount rates is a scary combination. No wonder investors are taking profits amid this tightening cycle.
Now what
MongoDB and Datadog are about 17.5% off their all-time highs, but Appian is down a much uglier 75%. But does this mean these stocks are now "on sale?"
It's still very hard to say. If you are young and own these growth stocks with an eye toward holding for the very long term based on their high-quality businesses, then you will have to endure drawdowns periodically. That is obviously much harder to do in practice, especially on ugly days like these.
All three stocks have also been big winners since their respective initial public offerings (IPOs) in the last few years, so anyone who bought in then won't be complaining. Still, the fact that these stocks have run so far so fast makes them vulnerable to even more profit-taking. And given that the market hasn't really seen the Fed tighten for a sustained period of time during their public lives, these software stocks remain at risk for further drawdowns even if their businesses continue to perform well.
Believers in these names for the long haul may wish to hold on but prepare for sub-standard returns this year. Meanwhile, older investors near retirement may want to think about rotating with the market into cheaper, dividend-paying stocks, which may be at a lower risk of declines as the Fed raises rates.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Billy Duberstein owns MongoDB. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Appian, 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.
|
What happened Shares of software darlings Datadog (NASDAQ: DDOG), Appian (NASDAQ: APPN), and MongoDB (NASDAQ: MDB) were down 7.8%, 7.7%, and 7.9%, respectively, on Wednesday. DDOG PS Ratio data by YCharts Not making any profits in the present is fine, but all stocks do trade with the expectation that one day, profits will come. However, the minutes released on Wednesday revealed the possibility for even more aggressive moves, including letting the Fed's balance sheet shrink in short order.
|
What happened Shares of software darlings Datadog (NASDAQ: DDOG), Appian (NASDAQ: APPN), and MongoDB (NASDAQ: MDB) were down 7.8%, 7.7%, and 7.9%, respectively, on Wednesday. DDOG PS Ratio data by YCharts Not making any profits in the present is fine, but all stocks do trade with the expectation that one day, profits will come. Datadog, MongoDB, and Appian are all somewhat disruptive software products posting impressive revenue growth rates, and high revenue growth combined with zero interest rates has helped technology growth stocks like these trade to very frothy valuations.
|
What happened Shares of software darlings Datadog (NASDAQ: DDOG), Appian (NASDAQ: APPN), and MongoDB (NASDAQ: MDB) were down 7.8%, 7.7%, and 7.9%, respectively, on Wednesday. DDOG PS Ratio data by YCharts Not making any profits in the present is fine, but all stocks do trade with the expectation that one day, profits will come. Datadog, MongoDB, and Appian are all somewhat disruptive software products posting impressive revenue growth rates, and high revenue growth combined with zero interest rates has helped technology growth stocks like these trade to very frothy valuations.
|
What happened Shares of software darlings Datadog (NASDAQ: DDOG), Appian (NASDAQ: APPN), and MongoDB (NASDAQ: MDB) were down 7.8%, 7.7%, and 7.9%, respectively, on Wednesday. DDOG PS Ratio data by YCharts Not making any profits in the present is fine, but all stocks do trade with the expectation that one day, profits will come. And for all their growth, none of these stocks currently make profits.
|
8de4eed4-8a53-466e-97e4-845eddf8b889
|
718768.0
|
2022-01-04 00:00:00 UTC
|
Is Snowflake a Good Buy for 2022?
|
DDOG
|
https://www.nasdaq.com/articles/is-snowflake-a-good-buy-for-2022
|
nan
|
nan
|
Winter may have arrived, but data warehouse provider Snowflake (NYSE: SNOW) remains a red-hot name on Wall Street. Snowflake, which boasts Salesforce.com and Warren Buffet's Berkshire Hathaway as investors, went public in September 2020 and recorded the largest software IPO in history. Since its public offering, revenue growth has exploded and Snowflake's market capitalization has climbed 41% to $99 billion. As growth stocks continue to battle market volatility, let's dig in and see if Snowflake is a good buy as we head into the new year.
Data is the new oil
Snowflake provides cloud-based data warehouse solutions to large enterprises such as Capital One, Anthem, and Twilio. The impacts of the COVID-19 pandemic underscored the importance for businesses to embrace flexible cloud computing solutions. Data warehouses serve as a critical component of systems management by providing short-term stability within an enterprise, while scaling for the long-term as businesses collect, store, and analyze more data.
According to Research And Markets, the global data warehouse-as-a-service market is expected to grow at a 22% compound annual growth rate and reach $13 billion by 2026. Moreover, Snowflake's latest investor presentation suggests that its total addressable market, capturing both data warehousing and cloud data platforms, is $90 billion. Snowflake has been a beneficiary of a large and growing addressable market and its financial results prove it.
Image Source: Getty Images
Robust financial profile or market euphoria?
For the fiscal quarter ended Oct. 31, 2021, the company boasted over 5,400 customers and 173% net revenue retention. What may be even more impressive is that Snowflake's revenue of $334.4 million represented 110% year-over-year growth. Moreover, the company's guidance for total revenue in 2021 was $1.1 billion, representing 103% growth over calendar 2020.
Although its large addressable market provides Snowflake with a greenfield opportunity, it also empowers new competitors to enter the market. As enterprises invest in digital transformation, Snowflake has doubled down on its product development and marketing efforts to beat the competition. For the nine months ended Oct. 31, 2021 Snowflake's sales and marketing costs were $540.7 million, representing 65% of total revenue and an increase of 66% over the same period in 2020. Additionally, research and development expenses were $343.8 million, which represented 41% of total revenue and a 139% year-over-year increase.
Investors could argue that these investments have generated superior, tripe-digit revenue growth. However, the company's financials show that as revenues have increased, so have its losses. Although the company generated $835.6 million in total revenue through the first nine months of 2021, Snowflake spent over $1.0 billion in operating expenses leading to an operating loss of $563 million. What could be even more concerning is that this loss is significantly higher than the same period in the prior year, in which the loss was $343.5 million. Despite sticking in the red, the stock still increased 20% in 2021 and as of this writing is trading at 107 times its trailing-12-month revenue.
Is the valuation premium justified?
At face value, it may appear that there is a disconnect in Snowflake's underlying fundamentals and its valuation. Perhaps investors view the current investments as a near-term sacrifice on profitability in order to achieve management's long-term vision of $10 billion in annual product revenue.
Even so, with a market capitalization hovering around $100 billion, it is reasonable for investors to exercise some caution when considering investing in Snowflake. For context, public competitors such as Datadog (NASDAQ: DDOG) and C3.ai (NYSE: AI) trade for 60 times and 17 times trailing-12-month revenue, respectively. .
Despite recent compression in valuation multiples, especially in high-growth software stocks, Snowflake still appears to be trading at a premium compared to some of its peers. Furthermore, the company's aggressive spending in product development and marketing may need to be adjusted as we head into a year poised for rate hikes.
All eyes on the Federal Reserve
The Federal Reserve recently announced that it will begin tapering its bond buying activity and that 2022 will come with at least three interest rate hikes. A rising interest rate environment means that the cost to borrow money will become more expensive for companies.
For growth-oriented businesses like Snowflake, this dynamic could have a significant impact on free cash flow. Although the exact timing of these rate hikes are variable, investors already know that Snowflake is currently operating at a loss, and that rising rates could hurt its ability to invest aggressively and follow its growth roadmap.
Now what?
Snowflake is expected to release fiscal Q4 and full year 2021 results in March. At this time, investors should learn how close the company performed against its prior guidance, and perhaps more importantly, what it expects for 2022 in terms of revenue growth and operating profits.
Although the future prospects of the business look bright given its increasing addressable market and triple-digit revenue growth, the company continues to operate at a loss. With interest rate hikes on the horizon, it may be most prudent for investors to assess how Snowflake stock performs once the Federal Reserve institutes its new policies before initiating or adding to an existing position in 2022.
Find out why Snowflake Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Snowflake Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 16, 2021
Adam Spatacco does not own shares of any of the companies mentioned. The Motley Fool owns and recommends Berkshire Hathaway (B shares), C3.ai, Inc., Datadog, Salesforce.com, Snowflake Inc., and Twilio. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B 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.
|
For context, public competitors such as Datadog (NASDAQ: DDOG) and C3.ai (NYSE: AI) trade for 60 times and 17 times trailing-12-month revenue, respectively. Perhaps investors view the current investments as a near-term sacrifice on profitability in order to achieve management's long-term vision of $10 billion in annual product revenue. At this time, investors should learn how close the company performed against its prior guidance, and perhaps more importantly, what it expects for 2022 in terms of revenue growth and operating profits.
|
For context, public competitors such as Datadog (NASDAQ: DDOG) and C3.ai (NYSE: AI) trade for 60 times and 17 times trailing-12-month revenue, respectively. For the nine months ended Oct. 31, 2021 Snowflake's sales and marketing costs were $540.7 million, representing 65% of total revenue and an increase of 66% over the same period in 2020. The Motley Fool owns and recommends Berkshire Hathaway (B shares), C3.ai, Inc., Datadog, Salesforce.com, Snowflake Inc., and Twilio.
|
For context, public competitors such as Datadog (NASDAQ: DDOG) and C3.ai (NYSE: AI) trade for 60 times and 17 times trailing-12-month revenue, respectively. Moreover, Snowflake's latest investor presentation suggests that its total addressable market, capturing both data warehousing and cloud data platforms, is $90 billion. For the nine months ended Oct. 31, 2021 Snowflake's sales and marketing costs were $540.7 million, representing 65% of total revenue and an increase of 66% over the same period in 2020.
|
For context, public competitors such as Datadog (NASDAQ: DDOG) and C3.ai (NYSE: AI) trade for 60 times and 17 times trailing-12-month revenue, respectively. For the nine months ended Oct. 31, 2021 Snowflake's sales and marketing costs were $540.7 million, representing 65% of total revenue and an increase of 66% over the same period in 2020. Although the company generated $835.6 million in total revenue through the first nine months of 2021, Snowflake spent over $1.0 billion in operating expenses leading to an operating loss of $563 million.
|
d2913e77-43ec-4a30-b45d-969b4268236f
|
718769.0
|
2022-01-03 00:00:00 UTC
|
Why CrowdStrike, Datadog, HubSpot, and MongoDB Fell Today
|
DDOG
|
https://www.nasdaq.com/articles/why-crowdstrike-datadog-hubspot-and-mongodb-fell-today
|
nan
|
nan
|
What happened
On the first trading day of 2022, stock market indexes were sporting respectable gains. The S&P 500 was up 0.19% as of 1:05 p.m. ET, and the Nasdaq-100 was up 0.71%. However, not all stocks started the new year on the right foot. High-growth but richly valued names took a tumble, continuing the volatility they experienced last year. A sampling of top tech companies tells the story.
COMPANY
DAILY PERFORMANCE (AS OF 1:05 P.M. ET)
CrowdStrike Holdings (NASDAQ: CRWD)
(4.4%)
Datadog (NASDAQ: DDOG)
(7.9%)
HubSpot (NYSE: HUBS)
(8.3%)
MongoDB (NASDAQ: MDB)
(10%)
Data source: YCharts.
Image source: Getty Images.
So what
Though the new year has started and many high-growth-oriented investors are looking to turn over a new leaf after a brutal 2021, there was no news from any of the above mentioned companies. Thus, some of the volatility that affected these stocks in late November and December is continuing, including the expectation for higher interest rates (which lowers the value of expected future cash flows, and can put downward pressure on stock price).
Now what
Investing in the fastest growing businesses on the market doesn't equate to higher stock prices in the short term. On the contrary, with high expectations already cooked into the company's valuation, above-average volatility should be expected.
However, it's undeniable that CrowdStrike, Datadog, HubSpot, and MongoDB are expanding at a rapid pace and still have plenty of opportunity ahead of them. And excluding CrowdStrike, each of these particular stocks outperformed the S&P 500 last year, so a little sell-off isn't out of the ordinary.
Stay focused on this long-term potential, and invest in a measured way (like regularly purchasing more of your favorites on a monthly or quarterly basis). Sooner or later, market sentiment will change for these richly valued shares, perhaps during the next quarterly earnings season, which begins in late January.
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 December 16, 2021
Nicholas Rossolillo and his clients own CrowdStrike Holdings, Inc. The Motley Fool owns and recommends CrowdStrike Holdings, Inc., 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.
|
CrowdStrike Holdings (NASDAQ: CRWD) (4.4%) Datadog (NASDAQ: DDOG) (7.9%) HubSpot (NYSE: HUBS) (8.3%) MongoDB (NASDAQ: MDB) (10%) Data source: YCharts. Now what Investing in the fastest growing businesses on the market doesn't equate to higher stock prices in the short term. Stay focused on this long-term potential, and invest in a measured way (like regularly purchasing more of your favorites on a monthly or quarterly basis).
|
CrowdStrike Holdings (NASDAQ: CRWD) (4.4%) Datadog (NASDAQ: DDOG) (7.9%) HubSpot (NYSE: HUBS) (8.3%) MongoDB (NASDAQ: MDB) (10%) Data source: YCharts. However, it's undeniable that CrowdStrike, Datadog, HubSpot, and MongoDB are expanding at a rapid pace and still have plenty of opportunity ahead of them. The Motley Fool owns and recommends CrowdStrike Holdings, Inc., Datadog, HubSpot, and MongoDB.
|
CrowdStrike Holdings (NASDAQ: CRWD) (4.4%) Datadog (NASDAQ: DDOG) (7.9%) HubSpot (NYSE: HUBS) (8.3%) MongoDB (NASDAQ: MDB) (10%) Data source: YCharts. Thus, some of the volatility that affected these stocks in late November and December is continuing, including the expectation for higher interest rates (which lowers the value of expected future cash flows, and can put downward pressure on stock price). See the 10 stocks *Stock Advisor returns as of December 16, 2021 Nicholas Rossolillo and his clients own CrowdStrike Holdings, Inc.
|
CrowdStrike Holdings (NASDAQ: CRWD) (4.4%) Datadog (NASDAQ: DDOG) (7.9%) HubSpot (NYSE: HUBS) (8.3%) MongoDB (NASDAQ: MDB) (10%) Data source: YCharts. Thus, some of the volatility that affected these stocks in late November and December is continuing, including the expectation for higher interest rates (which lowers the value of expected future cash flows, and can put downward pressure on stock price). * 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!
|
72954c5b-d22e-462f-a83a-9ae05d06cf07
|
718770.0
|
2022-01-03 00:00:00 UTC
|
Got $1,000? 2 Growth Stocks to Buy in 2022 and Hold Forever
|
DDOG
|
https://www.nasdaq.com/articles/got-%241000-2-growth-stocks-to-buy-in-2022-and-hold-forever
|
nan
|
nan
|
Technology stocks have been hammered in 2021, and some of the riskier (but higher-reward) stocks have been hit especially hard. If dealing with 50%-70% drawdowns is especially tricky, investing in some lower-risk stocks that still have high growth potential could be right for you.
The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG) are both established companies and leaders in their space, making them safer bets. In 2021, both companies rose while many tech stocks were crushed. If you only have a limited amount of money and are looking to invest it, these two stocks would be great places to park that cash until your retirement. Here's why.
Image source: Getty Images
1. The Trade Desk
The Trade Desk has risen to prominence in the advertising technology space because of its software that allows advertisers to automatically bid on ad space. The company focuses on the "buy-side" of the adtech space -- it works with advertisers rather than publishers. With over $4.2 billion in ad spending running through its platform in 2020 and customers spread worldwide, The Trade Desk has become the leading software on the buy-side.
This leadership role is especially important because of the company's use of artificial intelligence (AI) and the industry's network effects. On every single transaction, along with every piece of information it receives from its leading cookieless advertising solution UID2, the company obtains data about customer engagement and advertising success. The company then uses artificial intelligence to analyze this data, making predictions about where companies should advertise in the future. As the company gets more data from its transaction volumes, its AI gets more accurate, making The Trade Desk's suggestions more valuable to advertisers.
As the leader, its AI has the most data and should be the most accurate, so maintaining this leadership role is critical. Additionally, if it maintains the best AI, it will attract more customers, which will continue to strengthen the AI and the value of its services.
The lucrative combination of these competitive advantages is why The Trade Desk can produce $300 million in revenue in one quarter while bringing almost 20% of that to the bottom line. As if that wasn't enough, the company has produced $167 million in free cash flow this year.
The company trades at a high valuation of 41 times sales, but with its dominance in the industry, its share price remains relatively stable. The company estimates that over $1 trillion will be spent on advertising in a few years, indicating that the opportunity for The Trade Desk is still wide open. Considering its competitive advantages, I would expect The Trade Desk to make the most of this opportunity.
2. Datadog
Cloud-based enterprises have a lot going on for them operationally. Almost all companies have software and apps that they have to manage, and monitoring the customer experience has become crucial. The problem is that doing this can be extremely hard. While there are often specific tools for some applications, there hasn't been a singular observability platform that allows for monitoring and security on one easy-to-understand dashboard -- that is until Datadog created its platform.
With over 25 tools to help monitor and secure cloud platforms, Datadog is rapidly growing in a massive market -- one that is expected to be worth $53 billion by 2025. The company relies on its wide, optionable offering and its all-in-one platform to become the leading observability platform, and it has been wildly successful. The company was recognized as a leader in the performance monitoring industry by Gartner's Magic Quadrant, and with 75% top-line growth in its third quarter, I expect that this leadership will continue.
The company's real success has been through its effective land-and-expand approach. Datadog can get consumers to begin using one tool, but its simplicity and competitive advantages convince users to add on more tools and become bigger customers. In Q3, Datadog had 1,800 customers spending over $100,000, which grew 66% year over year.
The company is nearing break-even profitability, losing just $5 million in Q3. This is peanuts compared to its $270.5 million in revenue and its free cash flow generation of $57 million in Q3. However, this strong performance comes at a cost. The company is valued at 62 times sales, but its leadership, fast growth, and robust financials make this company worth paying up for.
Find out why The Trade Desk is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. The Trade Desk is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 16, 2021
Jamie Louko owns Datadog and The Trade Desk. The Motley Fool owns and recommends Datadog and The Trade Desk. 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.
|
The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG) are both established companies and leaders in their space, making them safer bets. With over $4.2 billion in ad spending running through its platform in 2020 and customers spread worldwide, The Trade Desk has become the leading software on the buy-side. With over 25 tools to help monitor and secure cloud platforms, Datadog is rapidly growing in a massive market -- one that is expected to be worth $53 billion by 2025.
|
The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG) are both established companies and leaders in their space, making them safer bets. With over $4.2 billion in ad spending running through its platform in 2020 and customers spread worldwide, The Trade Desk has become the leading software on the buy-side. As if that wasn't enough, the company has produced $167 million in free cash flow this year.
|
The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG) are both established companies and leaders in their space, making them safer bets. The Trade Desk The Trade Desk has risen to prominence in the advertising technology space because of its software that allows advertisers to automatically bid on ad space. As the company gets more data from its transaction volumes, its AI gets more accurate, making The Trade Desk's suggestions more valuable to advertisers.
|
The Trade Desk (NASDAQ: TTD) and Datadog (NASDAQ: DDOG) are both established companies and leaders in their space, making them safer bets. With over $4.2 billion in ad spending running through its platform in 2020 and customers spread worldwide, The Trade Desk has become the leading software on the buy-side. The company was recognized as a leader in the performance monitoring industry by Gartner's Magic Quadrant, and with 75% top-line growth in its third quarter, I expect that this leadership will continue.
|
84d983de-76db-4060-9e38-e8f21b6465ce
|
718771.0
|
2022-01-02 00:00:00 UTC
|
Here's My Favorite SaaS Stock to Buy Right Now for 2022
|
DDOG
|
https://www.nasdaq.com/articles/heres-my-favorite-saas-stock-to-buy-right-now-for-2022
|
nan
|
nan
|
The past couple of months have not been kind to the software-as-a-service sector, as inflation and interest rate fears have caused a quick and violent sell-off in these exciting yet highly priced stocks.
Yet could the sell-off have opened up bargain opportunities? The acceleration of digital transformation amid COVID-19 is still in full swing. Rosenblatt analyst Blair Abernathy recently wrote that digital transformation stocks should continue to see strong growth for at least the next few years, in a recent bullish note.
That's why my favorite SaaS stock for 2022 is a key player in enabling and protecting those large-scale cloud transformations for big companies. Yet because of some misperceptions around the stock, it trades at a bargain-basement valuation when compared with the rest of its pricey peers.
Image source: Getty Images.
Splunk got dunked in 2021
Splunk (NASDAQ: SPLK) is a competitively advantaged sticky software suite that collects data from IT infrastructure and software applications, allowing enterprises to operationalize, search, and analyze data produced by any digital device or system. Splunk divides its offerings into three general categories: Splunk Cybersecurity, Slunk IT Systems, and Splunk Observability cloud.
Despite category leadership, the company currently trades at a massive discount to the sector, because of uncertainty around not one but several transitions the company is making simultaneously.
A busy two years
The most important transition is the company's move from an on-premise software company to a cloud-first-company. However, there are actually several changes going on under the hood in addition to the cloud transition, including:
Perpetual licenses to subscriptions, which affects revenue in the near term as up-front payments are replaced by monthly or annual subscriptions.
Complete term billing to annual invoicing, which affects not only revenue but also cash collection and operating cash flow.
On-prem to cloud, including the development of its observability suite with the help of several tuck-in acquisitions.
Fixed subscription to workload-based pricing.
A recent CEO resignation (announced Nov. 15), with no successor yet selected.
The transition from perpetual licenses to subscriptions has caused a pause in Splunk's revenue growth trajectory, which actually went negative in fiscal 2021 (Splunk's fiscal year ends in January). However, revenue has begun returning to growth this year. Operating cash flow also went negative, but it bottomed out around the middle of last year and is steadily recovering:
SPLK Revenue (TTM) data by YCharts
Even though financial results have turned a corner and heading toward a normalization, Splunk's trailing revenue of $2.51 billion is still tracking below its annualized recurring revenue (ARR) of $2.83 billion, which is really how investors should think about the company's top-line trajectory until the transition is complete.
Trading at a massive discount
Splunk trades at a massive discount to its peers and is nearly 50% off its all-time highs from mid-2020, when revenue growth went negative and management pulled guidance amid uncertainties. Here's how Splunk stacks up against its closer peers, based on revenue growth and EV-to-sales ratios:
SPLK Revenue (Quarterly YoY Growth) data by YCharts
Cheap as it is, the above numbers even overrate Splunk's valuation based on ARR (it currently trades at an EV-to-ARR of around 7 even, vs. 7.9 times revenue), while they underrate ARR growth (37% versus 19% revenue growth in the most recent quarter).
These competitors are not, of course, perfect comps, as they have slightly different though overlapping product portfolios and customer bases; however, since they are further along in their cloud transition, or are cloud-native, each has revenue and ARR that are more or less in-line with each other. EV-to-sales ratios seems to correlate with revenue growth.
Very crudely, if Splunk were to be valued in the same ballpark as Dynatrance (NYSE: DT) or Elastic (NYSE: ESTC) -- whose revenue growth most closely resembles Splunk's 37% ARR growth, its EV-to-revenue should also be in the same ballpark of 15-22. That would mean a two- to threefold increase in the stock price.
Amid confusing financials, Splunk may be suffering from a perception that cloud-native competitors are eating into its market share. The recent resignation of CEO Doug Merritt after six years on the job has also added uncertainty around the company's leadership.
Rebuttals to these concerns
Still, there is little evidence to suggest that Splunk is losing market share to competitors. Yes, Datadog (NASDAQ: DDOG) is growing much faster and is a "cloud-first" competitor. However, Datadog, for all its success, is mostly geared toward small and medium-sized businesses, whereas Splunk is really geared for large enterprises. Splunk has claimed over 90 of the Fortune 100 companies and that has not changed, even during the bumpy transition.
Moreover, Splunk has continued to post dollar-based net retention (DBNRR) metrics on its cloud subscriptions of 130%, and this number has been quite consistent over the past two years. That means, on average, existing Splunk cloud customers are spending 30% more this year than they did last year. In the third quarter of fiscal 2020, DBNRR was 133%; two years later, in 3Q FY 2022, that figure stood at 130%, only a slight deceleration from two years ago off a much bigger base, and actually an acceleration from 129% in the prior quarter. That appears to indicate Splunk's customers continue to purchase more services and aren't flocking to competitors.
It's also likely large enterprises will be reluctant to switch away from Splunk, because most large enterprises will always retain some on-premises IT infrastructure and will require Splunk's hybrid offerings. Management has said its business will eventually top out at 80%-90% cloud, with the rest being deployed on-prem.
Finally, the mission-critical nature of Splunk's software, deployed at scale in large enterprises with diverse data sources and infrastructure, stands to make it a very "sticky" product.
Recent financial metrics seem to back this up
Last quarter, cloud ARR growth accelerated to a 75% rate to just over $1.1 billion, making up 39% of total ARR. Cloud should soon overtake non-cloud ARR in a matter of quarters. Cloud bookings already exceeded 50% of total bookings in the year-ago Q4 for the first time, and jumped strongly from 54% to 68% in a single quarter in Q3.
The faster-than-expected cloud growth has likely been helped along by two key new cloud hires from Amazon (NASDAQ: AMZN) earlier this year. In April, Splunk hired Amazon Web Services (AWS) veteran Teresa Carlson as chief growth officer. In June, Splunk hired Shawn Bice, also from AWS, as president of products and technology. The two hires show Splunk has the ability to attract top senior talent away from a place like AWS -- not exactly the struggles of a legacy company losing out to quicker, more agile competitors.
Shortly after these hires, Splunk attracted a $1 billion investment from Silver Lake Partners, in the form of 0.75% convertible notes that are convertible at $160 per share, up from today's price around $116. At the recent December UBS conference, CFO Jason Child elaborated on the Silver Lake investment.
[W]e first had the discussion with them I think in late June. They got involved on a, I don't know, Saturday or Sunday; did five days of diligence and then you know basically wired money a week later or something like that, but it was really a very, very accelerated process. And you know the reason it was accelerated is I think they went under NDA and they went deep on all the numbers. They looked at all the customer cohorts, the churn, the LTV [lifetime value], the CAC [customer acquisition cost], the mix adjusted revenue, billings, margins and all that and basically said you know, wow! This is like – while there's a lot of scary narratives on whatever may be going around with Splunk, the numbers are very, very strong, and so you know that's why they were willing to invest so quickly.
CEO Transition
Some may attribute the recent resignation of CEO Doug Merritt to Silver Lake's influence, but that's not necessarily the case. The reason given by management was that Doug had been CEO for six years, has more of an entrepreneurial bent, and there was some question as to how long he wanted to be CEO. After Merritt oversaw has this massive transition, Splunk now has a $3 billion ARR cloud-centered company -- much different from the $300 million or so run-rate on-premise company he inherited when he took the job.
In light of the company achieving breakaway momentum on its cloud transition, the board thought that it was time for a CEO with experience running cloud software businesses at large scale. Chairman Graham Smith, the former CFO of Salesforce (NYSE: CRM), the first cloud-centric SaaS company, has stepped in as interim CEO and is likely a candidate for the job, And certainly, the two new AWS hires may also be internal candidates in addition to external ones.
Upcoming Catalysts for 2022
With this many open questions between a business model change, billing process change, and management change, the resolution of these issues could be catalysts for 2022. Since we are past the halfway point of the transition and revenue is growing again, revenue should begin to track closer to ARR overtime.
Given that cloud ARR growth is much faster and is now making up a larger percentage of ARR, ARR and revenue should maintain its current trajectory or perhaps even accelerate as cloud overtakes non-cloud as a percentage of the business.
It's also possible the new workload-based pricing model implemented over the past year will lead to greater use of data and Splunk. Investors have seen high growth rates posted by data warehouse company Snowflake (NYSE: SNOW), which has been wildly successful with that workload-based billing model. At the same UBS conference, CFO Jason Child noted that when clients move to workload-based pricing, data volume in the cloud goes up between 1.5 and 2 times, as customers aren't worried about overprovisioning.
Conclusion
Given the "perfect storm" over the past year and even the past two months, a very pessimistic scenario is being priced into Splunk that has derisked the stock in an otherwise highly priced sector. At the same time, the growth of data and the digitization of the enterprise gives Splunk very favorable long-term growth prospects. While there is a void at the CEO level, the company has made several impressive hires in important roles, which should impart some confidence in Splunk's ability to execute.
I don't see any reason the company can't return to its all-time highs of $225 per share, last reached in mid-2020. That would be a terrific feat in an otherwise fully priced market.
10 stocks we like better than Splunk
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 Splunk wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Billy Duberstein owns Amazon and Splunk and has the following options: short January 2022 $100 puts on Splunk, short January 2022 $110 puts on Splunk, and short January 2022 $85 puts on Splunk. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Amazon, Datadog, Elastic, Salesforce.com, Snowflake Inc., and Splunk. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.
|
Yes, Datadog (NASDAQ: DDOG) is growing much faster and is a "cloud-first" competitor. The past couple of months have not been kind to the software-as-a-service sector, as inflation and interest rate fears have caused a quick and violent sell-off in these exciting yet highly priced stocks. The two hires show Splunk has the ability to attract top senior talent away from a place like AWS -- not exactly the struggles of a legacy company losing out to quicker, more agile competitors.
|
Yes, Datadog (NASDAQ: DDOG) is growing much faster and is a "cloud-first" competitor. Here's how Splunk stacks up against its closer peers, based on revenue growth and EV-to-sales ratios: SPLK Revenue (Quarterly YoY Growth) data by YCharts Cheap as it is, the above numbers even overrate Splunk's valuation based on ARR (it currently trades at an EV-to-ARR of around 7 even, vs. 7.9 times revenue), while they underrate ARR growth (37% versus 19% revenue growth in the most recent quarter). Billy Duberstein owns Amazon and Splunk and has the following options: short January 2022 $100 puts on Splunk, short January 2022 $110 puts on Splunk, and short January 2022 $85 puts on Splunk.
|
Yes, Datadog (NASDAQ: DDOG) is growing much faster and is a "cloud-first" competitor. Operating cash flow also went negative, but it bottomed out around the middle of last year and is steadily recovering: SPLK Revenue (TTM) data by YCharts Even though financial results have turned a corner and heading toward a normalization, Splunk's trailing revenue of $2.51 billion is still tracking below its annualized recurring revenue (ARR) of $2.83 billion, which is really how investors should think about the company's top-line trajectory until the transition is complete. Here's how Splunk stacks up against its closer peers, based on revenue growth and EV-to-sales ratios: SPLK Revenue (Quarterly YoY Growth) data by YCharts Cheap as it is, the above numbers even overrate Splunk's valuation based on ARR (it currently trades at an EV-to-ARR of around 7 even, vs. 7.9 times revenue), while they underrate ARR growth (37% versus 19% revenue growth in the most recent quarter).
|
Yes, Datadog (NASDAQ: DDOG) is growing much faster and is a "cloud-first" competitor. Here's how Splunk stacks up against its closer peers, based on revenue growth and EV-to-sales ratios: SPLK Revenue (Quarterly YoY Growth) data by YCharts Cheap as it is, the above numbers even overrate Splunk's valuation based on ARR (it currently trades at an EV-to-ARR of around 7 even, vs. 7.9 times revenue), while they underrate ARR growth (37% versus 19% revenue growth in the most recent quarter). At the same time, the growth of data and the digitization of the enterprise gives Splunk very favorable long-term growth prospects.
|
ccab6e29-5aa7-49fe-abfb-5f5a4690e6e8
|
718772.0
|
2021-12-29 00:00:00 UTC
|
Noteworthy ETF Outflows: FDN, SNOW, ABNB, DDOG
|
DDOG
|
https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-fdn-snow-abnb-ddog
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $593.7 million dollar outflow -- that's a 5.6% decrease week over week (from 46,700,002 to 44,100,002). Among the largest underlying components of FDN, in trading today Snowflake Inc (Symbol: SNOW) is off about 0.8%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is up by about 0.7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average:
Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $227.05. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of FDN, in trading today Snowflake Inc (Symbol: SNOW) is off about 0.8%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is up by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $593.7 million dollar outflow -- that's a 5.6% decrease week over week (from 46,700,002 to 44,100,002). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of FDN, in trading today Snowflake Inc (Symbol: SNOW) is off about 0.8%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is up by about 0.7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $227.05. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
Among the largest underlying components of FDN, in trading today Snowflake Inc (Symbol: SNOW) is off about 0.8%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is up by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $593.7 million dollar outflow -- that's a 5.6% decrease week over week (from 46,700,002 to 44,100,002). For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $227.05.
|
Among the largest underlying components of FDN, in trading today Snowflake Inc (Symbol: SNOW) is off about 0.8%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is up by about 0.7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $227.05. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
624f5114-cdad-44ee-8ec4-09ed14b3ffec
|
718773.0
|
2021-12-28 00:00:00 UTC
|
Time for Another Edition of the Market Cap Game Show
|
DDOG
|
https://www.nasdaq.com/articles/time-for-another-edition-of-the-market-cap-game-show
|
nan
|
nan
|
Today we have a rematch on the Market Cap Game Show.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walker & Dunlop
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 Walker & Dunlop wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
This video was recorded on Dec. 22, 2021.
David Gardner: A lot of people, when they first think about stocks, tend to lock in on the share price. Maybe this was you or maybe this is a friend of yours. They will say, well, Amazon (NASDAQ: AMZN) is at $3,355, that's expensive. By contrast, the same mentality when looking at penny-stocks can get a lot more excited. Some penny-stock they're seeing promoted by someone, perhaps some ne'er-do-well, and they'll think, wow, the stock is at $0.33, not 3,300, like Amazon, $0.33. They'll think that's the one to buy, the one at $0.33, because if it just reaches a dollar, you triple your money. If from the earliest days of the Motley Fool, we've tried to get people focused not on the price per share of the company, but rather on the market cap of the company. The price per share of a stock tells you almost nothing. It's the price to buy one share of the stock.
But how many shares does the company have outstanding? In math, we multiply to multiplicands together, I hope to have my term right to reach a product, but the price per share is only one multiplicand. If you don't know the other one, you can't do any meaningful math or figure out much of the world around you. Fools with a capital F know that you need to know the shares outstanding and then multiply that by the price per share, and now you know the actual full value of the company, its full price tag, its market capitalization, market cap. Well, to teach this lesson inexorably and unforgettable, we invented a game, that's what I do. The date was August ninth, 2017. We've been playing every quarter since. You're playing too. You know this. We previewed it last week. It's that time of the year again. That time of the quarter, again, welcoming back Brian and Brian. You only on this week's Rule Breaker Investing.
Welcome back to Rule Breaker Investing. What a wonderful experience. It was last week, the very rare, in fact, the one-of-a-kind two hour plus Rule Breaker Investing podcast. If we're going to go that long, something special must be happening, and to have the cameo appearances we had from our guest stars taking you through some of the best voices on this podcast in the year that has been. That was really awesome, and I want to thank Rick in particular for yeoman's work. He is going all-out anytime we do a one-hour podcast. If we're doing a two-hour podcast with 10 different guests and all kinds of transitions and some music too, you bet he is working extra hard. So thank you again, Rick Engdahl. That hardwork continues this week and of course, into next week when we have our year-end Mailbag. I will mention, I did wonder a lot on Twitter whether Frank Reich appearance on this podcast last week, when we talked about the phrase winners win. Whether that had anything potentially to do with the Indianapolis Colts, upsetting the AFC football conference leader, New England Patriots on Saturday night, just a few days ago on national television. Congratulations to Frank and Mike Colts. I'm excited, of course, to be playing our game this week. Brian Feroldi and Brian Stoffel were on this show three months ago, the Brians. For those who remember, for those who may have been playing along #DidYouBeatBrian? #DidYouLoseToBrian? I've always loved the ambiguity. They tied five to five. On last week's Besties Show, I had them back. We briefly played a teaser, one question of the Market Cap Game Show. Those who were paying attention will remember, the Brian Stoffel made the right call. Of course, we selected Etsy (NASDAQ: ETSY), Brian Feroldi guessed outside the range.
It guessed below the range given, but it was in the range. In a sense, we created tie breaker if needed for this week's show. We'll talk about that a little later if it comes back up. But mainly what I wanted to do last week in the middle of our Besties was give you just a taste and a reminder of what is always four of my favorite podcasts to do each year, the Market Cap Game Show. Yes, that's what's happening this week. This being a holiday tradition, especially the fourth one of the year. I'm imagining, even if this isn't true, don't disabuse me of my allusion. I'm imagining that you're near a cozy fire. That you have multi-generations around you and your family, and rather than have all visions of sugar plums dancing in your heads together, nope, you're listening to this very podcast. You are playing the Market Cap Game Show together by the fire with cider, as I've said before, hard cider, hard or not, and all are welcome, all can play. This game was designed from the ground up to make it so that you can play along and learn and have fun with us.
Anytime I have two Motley Fool guest stars, we're always going to have fun and we're certainly going to have fun with Brian Feroldi and Brian Stoffel as they return the battle of the Brians two. They tied last time. Let's see what happens this time. Now before we get started, I want to mention next week is, your mailbag and we have already recorded the mailbag. We had a lot of fun with your items. I think there were nine of them, some great Twitter Hot-takes. I think it's going to be a really fun end of the year show next week, the final week of 2021. Of course, our December Mailbag for Rule Breaker Investing. Our email address is rbi@fool.com. Do avail yourself of it. Drop us a note. You don't have to do it near the end of the month. We started looking in January emails we received in December for the January mailbag. But if you're hoping to be on next week show, bad news, we've already fully recorded it yesterday. But I hasten to add, it is a fresh show never before heard. Rick Engdahl and I continue our undefeated streak of always putting up a new fresh podcast every single week without repeats. Well, the top of the show, I hope I did the math already for you and explained market cap. I hope a lot of my fellow Fools at this point know exactly what market cap is and why we care about it.
But let me make sure we all know how this game works because we do have a lot of new listeners near the end here of 2021. You should know that I will turn to one of my contestants and ask him, he doesn't know what's coming, he doesn't know what stock we're talking about, the ticker symbol or the market cap. I haven't given them anything to study on. It's just a general knowledge game. But I will turn to them and ask them a question. The question is ultimately, what is the range of market cap that you want to specify for this company? let's take an example.
How about Etsy? Etsy these days is at $222 a share as I quoted on the Internet live Tuesday, December 21. Etsy the stock is at 222. It's got about 125 million shares outstanding. If you do the math, the market cap of Etsy multiplying 222 times a 125 million or so. You don't have to do that in your head. The market cap is 27 and a quarter billion. If I were asking you the market cap of Etsy as I will be Brian, very shortly. You don't have to answer exactly 27 and a quarter billion. You can give a range. You can say somewhere between 20 and 30 billion and then your opponent, your fellow contestant simply has to decide, is it inside that range, you gave up 20-30 billion or is it outside that range? So the fun choice, when I ask you to specify the range, you have a choice how tight or wide you want to make that market cap range. You might make it easier or harder for your contestant. The person who says inside or outside the range is ultimately the one who drives the game.
Because if they are right, they get a plus one. If they're wrong, you get a plus one. We go through 10 companies, 10 stocks, 10 market caps. However Brian or Brian do against each other, you are playing along too. Every time you can say inside or outside the range at the right moment, hold yourself accountable. Good news. You can get 10 out of 10. If you do, I sure hope you will tweet that out where @RBIPodcast on Twitter. We've had fun with this over the years. #IBeBrian, #ILostBrian, #10OutOf10. Whatever you score, let the world know if you're proud of it, even if you're not. It's even funnier when you're not. But that's how we roll on social media with the Market Cap Game Show. I hope the intent of the game is clear. I hope the content of the game is clear, and I say without further ado, let's welcome in our guest star contestants. Hi, guys. Great to have you back. Happy holidays. I'm looking forward to the Market Cap Game Show.
Brian Stoffel: Happy holidays, David.
Brian Feroldi: Pleasure to be back.
David Gardner: Brian Feroldi, I'm going to turn to you first alphabetically. Brian, could you briefly remind us, what have you done for the Motley Fool? How are you spending your time these days? What is a holiday tradition that the Feroldi's keep that others might want to try?
Brian Feroldi: At the fool, my primary contributions are Fool Live. I'm a regular guest on the Industry Focus podcast and I do some writing for the premium services behind the scenes. As for the holiday tradition, we do most of the normal Christmas stuff that you would expect. However, one thing that my wife does have to give her full credit for this is throughout the year. She writes down some of the family adventures or things that happened throughout the year. She puts them into a little jar, and then typically at the end of the year, Christmas time, we go through and pick them out. It's a nice reminder of all the things that the family did that year. We also always try and look one year ahead, and we sit down and we say, what vacations do we want to take this year? Who do we want to spend time with? What local activities that we want to do? We do a brief overview of the year ahead planning, and that's something that I look forward to every year.
David Gardner: That is awesome. Brian, how old are the kids these days?
Brian Feroldi: Trick question I know, 11, 9, and 7.
David Gardner: Well, what a wonderful conversation for them to partake of both the reflection back on the year that was and then thinking ahead to what we could be excited about the year ahead, maybe I will try that. Thank you, Brian. Brian Stoffel, a delight to have you back. What do you do in and around the Motley Fool, and what does the holiday tradition that you keep that others might want to try?
Brian Stoffel: Well, my contributions to the Fool are very similar to Brian Feroldi's. Motley Fool Live is a big chunk of it. Then working on premium services, sometimes you might see my name on something, sometimes you might not, and it's been a while since I published on fool.com, but I still enjoy doing that when I get a chance. As for a family tradition, like Brian, I have to give credit to my wife Alley because she's the force about around making sure that happens. Is every year we get a thankful tree and it can be anything. One year it was a cardboard tree. Last year it drove me crazy, but it was sticks collected from outside, put in a pot. This year I got to choose and I chose holly like the plant. What you do is we make leaves as a family and between Thanksgiving and sometime around the end of the year, we fill out things we're thankful for and then you just hang them on the tree. It's right by our dinner table, and so when dinner time comes around, we remember to do that. Then by the end of the year, your tree is full of extra leaves. One little tip I will give people, if you use holly, you've got to keep watering that thing a lot because right now it's pretty close to a leaf list holly tree of real leaves. It's just our leaves that are on it.
David Gardner: That's great Brian. How old are Stoffel kids these days?
Brian Stoffel: They are eight and three.
David Gardner: Wow. You guys have a lot of overlapping. You have a wonderful YouTube channel. You guys are developing some stuff outside the Fool as well. Do you ever do parenting conversations or talk or tips?
Brian Stoffel: We should, but I feel like it wouldn't be in terms of tips, would be like, "Hey, people give us tips."
Brian Feroldi: Here's what didn't work at our house.
David Gardner: Well, a hint, if you guys want to develop it, go with a mail bag because people right in and give you great ideas. That's something that will happen next week on this show, the final week of the year. Well, without further ado, let's get started, gentlemen, the Market Cap Game Show. I've already set out the rules and why we do this. Let's go to stock number 1, I'm going to turn to Brian Feroldi, first. Brian, do you guys have a pet around the house?
Brian Feroldi: We have a pet fish. We are a house devoid of pets. We love animals, but we like it when our neighbors have the animals and we get the experience all the outside with none of the work.
David Gardner: Who named the fish?
Brian Feroldi: My youngest daughter named the fish. She asked us for a fish for a year and we let her do it.
David Gardner: Is it a big or a small fish?
Brian Feroldi: Just the betta fish. It was the lowest maintenance requirement and all that we could possibly guess.
David Gardner: I remember when our kids were the same age, we also got a betta fish. Those little suckers are popular. Well, I was hoping you'd say a dog, because the ticker symbol of stock number 1 is DDOG really doesn't have much to do with pets in the end. But since this Cloud services monitoring company, which is a longtime Rule Breaker pick, since it took on the name Datadog (NASDAQ: DDOG) and they're in the logo. I thought we would maybe open up with the dog but forget about pets. Brian Feroldi. What does data mean to you in your life?
Brian Feroldi: It's been said that data is the new oil and take what you will have that phrase. But there's no doubt that the rise of data capturing data, storing data, analyzing data is going to play an enormous and increasingly important role in the way that business functions and companies that provide tools that helped back to happen are just going to thrive.
David Gardner: Well that of course, naturally leads us to discuss the market capitalization of Datadog. Now this is a stock that's been in our services for several years, hasn't been public for that long, I should say maybe just a couple of years because guys, I think Datadog came public in the fall of 2019. It's been on the public markets for a couple of years. Definitely been a winner. But without specifying too much before we get to the market capitalization. Turning now again to Brian Feroldi. Brian, what is the range of market cap that you'd like to give Datadog ticker symbol DDOG?
Brian Feroldi: Well, I know that Brian and I both own this stock. Both really like this company's competitive position and it has been a fantastic performer. Very high revenue growth, high margins, founder-led, so much to like about this business, even though it was a company that when I first read the S1, I was like, "I hate the name Datadog." It doesn't sound that good [laughs] Boy, was that initial impression wrong? I'm going to say, I know that this company trades at a sky high valuation and that lots of high growth stocks have been hurt badly over the last couple of months. But I think that Datadog has held up pretty well. I'm going to say that this company has roughly a billion dollars in revenue. I'm going to put a 45 price-to-sales ratio on that and say it somewhere between $42 and $53 billion.
David Gardner: Somewhere Brian Stoffel between $42 billion and $53 billion. Senyor Stoffel and all of us playing at home inside that range or outside that range.
Brian Stoffel: Well, I wrote down what I thought it was as soon as you said Datadog and my guess right in the middle of Brian's range 48 billion was my guess. I'm going inside.
David Gardner: You are right. In fact, the market cap of Datadog is $49.45 billion. You guys both on the stock, you are both doing pretty well because Datadog, in the three months since we last spend time together on this podcast, last quarter's Market Cap Game show up from a 140 to 166 or so as we record on Tuesday, December 21st. It strikes me guys, that not a lot of peers in Datadog's industry or even among a lot of the innovative companies that we're following as shareholders and observers, not a lot of them are up over the last three months. This is one of them.
Brian Feroldi: It's been one of the few bright spots. One of the things that they published that I think is really interesting, is every quarter they'll give you the total number of customers, and usually they'll tell you how many customers are using 2-plus or 4-plus tools, but they'll give it to you as a percentage. Now, this is a little bit wonky with math, but if you take that percentage and multiply it times the customers in that quarter, you can see how fast the number of customers that have four of their tools is growing. To me, that's the needle in the haystack, that's my metric that I like to watch.
David Gardner: This is one of those companies that has a very high dollar base net retention rate. This is a company where if you started paying them 100 bucks two years ago, you're probably paying 179 bucks now, and you're not the only one. This is a company that consistently rates among the very highest there. That's why I think all three of us have favored the stock so much over the last couple of years. A lot of happy Motley Fool members are listening to us right now. There haven't been a lot of happy stocks last month or so, a lot of us have seen some of our favorites, have maybe a third of their value lopped off. That's been true over the last month or so for the stock market, but Datadog ain't one of them. I'm going to score one for Brian Stoffel. That was stock Number 1 Datadog, well done guys. Let's move on to stock Number 2. I'm going to turn back to Brian S and ask you Brian, do you have any friends who are realtors?
Brian Stoffel: I don't have any friends who are realtors, but I do have an aunt who is a very accomplished realtor.
David Gardner: By what measure in your mind is she accomplished?
Brian Stoffel: She does a really great job. She's cornered the small market that she's in. Everybody knows her. If they want to sell a house, they go to her.
David Gardner: That's a great way to become prominent within real estate. There is no question about that being there and having done that and having been around to be associated with the zip-code or a neighborhood, I'm not a realtor myself, but seems a great strategy. Now, some companies enable realtors to become better known than others. One of them is Zillow Group (NASDAQ: ZG), and the ticker symbol is ZG. This has been a dynamic company to follow, to say the least guys, I see you both looking heaven word, putting your hand on your Chin thinking about where Zillow Group could be trading these days, because Zillow Group began as the site everybody used on the Internet to check the estimate of the house across the street or in the new neighborhood you're moving into.
Zestimate was the key phrase that was the buzz, and that's how Zillow started, and it was an ad-based model. But in recent times, we saw the company begin to use it's data to buy real estate. It wasn't just for realtors to advertise themselves, Zillow was in the game itself, and in a pretty tough announcement, not so long ago this year, the company announced it was exiting that business altogether. Not-great optics, probably. When you say we're going to do this dramatic, daring, I would say, rule-breaking thing, and then inside of two years, pull out of it all together with some losses to show. I know we all know that Zillow is not at 52-week highs. But we're not all about 52-week highs and lows, we're just about the market cap. Let me turn back to Brian and ask you, Brian, what does the range of market cap for Zillow Group these days? Ticker symbol ZG.
Brian Stoffel: I'm going to go between 13 billion and 19 billion.
David Gardner: Seems like a pretty good guess to me. I hope your aunt is listening. If not, you'll need to point her to this podcast. Did she ever used Zillow, to your knowledge?
Brian Stoffel: I have no idea. I really don't. She sees on the cusp of retirement, so I'm not sure if it was anything she ever really got into.
David Gardner: That strikes me as something. If you do happen to see her around the holidays or maybe you make a call to your aunt, uncle or checking with family, you could find that out and she'll have something to listen to as a consequence. I hope she will be proud of her nephew, but we need to turn to Brian Feroldi to find out. Brian, the range that Brian specified was 13 to 19 billion. Brian Feroldi, everyone playing at home, inside or outside that range.
Brian Feroldi: This is a stock that I own, have owned for many years. While I believe it's up from the IPO price, I know that when Zillow made the announcement that we're getting rid of the eye buying business, the market did not like that, it's been a dramatic sell-off. When you said Zillow, I wrote down eight billion, and my gut tells me it's 10 or maybe under, so I'm going to say outside the range.
David Gardner: It was inside that range. I also feel is if Zillow having lost so much value, this is a stock that was at $200 a share in February of this year. It's at 60 right now, gentlemen. That is an absolute blood letting for one of the better known Internet companies, a stock that we have recommended and held, I do myself for years. Still happy overall, we still have a pretty low cost basis if you've been in and around Motley Fool Rule Breakers for a long time. But wow, that's volatility, Volatility Thy name, the ticker is ZG. The market cap of Zillow Group is 14.3 billion. It was in Brian's range of 13 to 19 players at home. If you said inside that range, give yourself a plus 1. I'm going to give Brian Stoffel a plus 1. Brian Stoffel, you have taken two nothing lead. Well done, sir. 3-2-1. Go. How about a quick line for your aunt?
Brian Stoffel: Happy holidays, Mary.
David Gardner: Beautiful. Let's move on. Stock Number 3. Turning now to Brian. F. Brian, was there a kid at your school who did good, most likely to succeed? Was that you?
Brian Feroldi: No. I've always been at the top, say, 10 percent academically. But we had a kid in my school that just was brilliant. He was an engineer, he was a doer, he barely paid attention in class and eased all of these tests. [LAUGHTER] He went on to Goldon Engineering School. He founded a company when he was in there, got sold. We said he was going to be the most successful and we were right.
David Gardner: That is pretty amazing. It does seem like we take a vote of who is most likely to succeed in our high school classes before we graduate or maybe it was the valedictorian. But sometimes it can be shocking, sometimes it's not who we were thinking, and sometimes those people, by the way, drop out of school. For example, Bill Gates or Steve Jobs, people who don't even tolerate the academic environment for much longer. But it's fun to reflect back on now that we're all in our 30s, 40s or 50s or so these days, and think back to those high school classes, and who do we think was going to start. At least in my experience, often the people I thought would start actually have gone on to start. Just the story you told Brian is true of my experience as well.
Like you, I had the pleasure of going to school with some talented people, and one of them was Willy Walker. Willy Walker was one year behind me at St. Alban School in Washington DC. Willy Walker, since 2003, has been the CEO of Walker & Dunlop (NYSE: WD), the ticker symbol is WD. Now, this is a stock that I've never actually picked. This is more of a Tom Gardner stock. It's a company that is Washington DC-based. Willy was right there in our school, right in between classes with us, but he's done just a spectacular job with his family's company. In fact, this is a multi-generational family company. Walker and Dunlop basically finances commercial real estate owners. If you own commercial real estate, Walker and Dunlop is there to provide services for you to finance and grow your business, and they've been doing that pretty well. The ticker symbol is WD. I don't know if Willy was voted kid most likely to succeed in his class at St. Alban School, but he certainly has. Let me now turn to you, Brian, and ask you, this is a company I'm thinking you don't study everyday, am I right about that?
Brian Feroldi: I've read the write-ups on the Fool on it. I know that some of the particular does think the world of really, just like it seems like you do. I also know this stock has done pretty damn well. I have not looked at it in a few years though, so this is going to be a guest for me for sure.
David Gardner: Maybe you'll be inspired to look at it after the show. But I also mentioned, Willy has the Walker webcast. It's something that he took up maybe a year or two ago, and has grown a nice audience, and has people in and around the business and real estate world on. You can Google it and find it on YouTube, you can see his work on a regular basis. Really good guy. I was in class with his older brother Taylor, and a shout-out to Taylor Walker, and congratulations to the Walker family for this company. Brian Feroldi, what is your range for market cap for Walker and Dunlop, ticker symbol WD?
Brian Feroldi: I have a strong feeling. It's got to be between 5.6 and 13.7 billion.
David Gardner: All right. 5.6-13.7 billion. Brian Stoffel, have you ever looked at Walker and Dunlop?
Brian Stoffel: No. When opportunities come up to write about different Motley Fool picks that we help out with, I always avoid Walker and Dunlop.
David Gardner: [laughs] Is there a specific reason Walker and Dunlop or is this just an industry thing?
Brian Stoffel: It's an industry thing.
David Gardner: I admit this is not an industry, I know very well as well, which is in part why I have missed this successful stock pick of the last several years. Well, Brian Feroldi said 5.6 to 13.7 billion. Always love the specificity there, Brian. Brian Stoffel and players at home, is Walker and Dunlop inside that range or outside that range?
Brian Stoffel: I think it might be below that range, but I'm going to say inside.
David Gardner: You were right that it was [laughs] below that range.
Brian Stoffel: If it's between four and 5.6 billion, I'm going to be really upset because I wrote down four billion as my low-end.
David Gardner: Some people say, go with your God in life, Brian Stoffel, and it is $4.53 billion. [laughs] This is a stock at about $142 a share as we're recording and gWiz two years ago it was about 60, so it's more than doubled. In fact, for a more predictable business, I don't want to say this is an easy business to run about financing a big business like commercial real estate doesn't necessarily take a lot of daring do a crazy talk on the part of the CEO to run things well. Stock touched 80 at the start of 2020, I think we all remember that COVID was announced somewhere around March at least in the United States. It was already around the world before then, but the stock dropped from 80-20 then, so it's up seven times in value from its COVID lows last summer 2020. It's been a remarkable performer, but more broadly, 5, 10 years ago the stock was at 10, so it's about 140 today. Yet, gentlemen, still at a pretty low market cap and one of the insights we have had that the Market Cap Game Show over the years is, if you thought the market cap was, 13.7 billion and you find out it's only four and a half, maybe that is one to put on your watch list. Well, let's keep moving. Makes it a little bit more fun because it's now 2-1. Stoffel was threatening a blowout if he gets three leads. Brian Stoffel two, Brian Feroldi one. Let's move on to stock number 4. Brian Stoffel would you say you're good at learning from your mistakes?
Brian Stoffel: When they hit me over the head hard enough, yes.
David Gardner: [laughs] Can you think of an example, let's say from stock picking history or research where you got one wrong, either you underestimated or overestimated?
Brian Stoffel: Overestimated and I think that not understanding the importance of the moat. This goes back a number of years, but even the Whole Foods I go there and I think it still is a great business, but I completely underappreciated how easily players like Costco (NASDAQ: COST), Walmart (NYSE: WMT), Kroger (NYSE: KR), Safeway could give into natural and organic goods and reflected in what happened to the stock once they did.
David Gardner: That's a good example. All of us are learning machines, that's what humans do. We observe and we hope our heads not in the sand and we adapt, we try new things. You guys have learned a ton over the years as have I simply by studying innovative companies. There lessons on their own, so I think you are probably really good at learning from your mistakes, although we're about to find out because three months ago we covered this very company, so we have a return and Brian Stoffel, you blew it that day. We're going to see with this one, I don't want to put you on the spot. I did randomize the stock, so it's back.
NextEra Energy (NYSE: NEE), the ticker symbol is NEE. I'm not going to say where you thought the market cap was three months ago right now, we'll certainly talk about that shortly. But I think a lot of us will remember this is a long time Rule Breaker stock pick, but this is a company that's based in Florida, but really it's not just Americas, but the world's one of the largest producers of wind power and solar power in the world. It also owns Florida Power and Light. That was the cash cow that really sprung this business. But very innovative management team, good stock, good company, good performer, long-term. Turning right back to you, Brian, I think it's hilarious that I randomize this stock and you just speak to it. How could I not lead off with a question I did? Are you ready to put some range on the market cap for NextEra Energy ticker symbol NEE.
Brian Stoffel: I'm going to improve my point here because I said If I could hit over the head hard enough, [laughs] and when Brian I tied last time, I lost my motivation to go learn. If you would have won, it would have been a different story. But, if I remember correctly, I underestimated by an order of magnitude, I think. I'm going to give a wide range here. I'm going to say between 130 and 170 billion.
David Gardner: Between $130 and $170 billion. Brian Feroldi, do you remember talking about the stock three months ago?
Brian Feroldi: I do. I remember Brian, I think he estimated between 30 and 50 billion and my gut thought was around a 100 or 120. If memory serves correctly, I remember both of us were surprised at just how big this company really was. I've wrote down when you said NextEra Energy 180 billion, and this company might even be in the $200 billion range, although I have not looked at it stock price at all. I guess just for fun, I'll say outside because I think it's bigger than 170.
David Gardner: That ties the game indeed, and you guys both put much better numbers on it this time and congratulations. I would say Brian Stoffel, you do learn from your mistakes and you really didn't make much of a mistake this time. The range of market cap for this company that you specified was 130 billion to 170 billion. It's market cap, as we speak is 178.94 billion [laughs] just above that range. In fact, the stocks done pretty well this past quarter since we last talked about it three months ago this week, it's gone from 79-90. Let history show that the initial call you made on it last time, Brian Stoffel was 43-74, and then Brian Feroldi said that your gut feel was it's $100 billion company. You said outside it was 164, then it's now 179 today. This is a very substantial company.
Brian Feroldi: Yeah, that's what it was. It was 164 it must be what my brain remembered.
David Gardner: [laughs] Well, those were really good calls. Part of the fun of the Market Cap Game Shows, even when you to make an amazing call, you're gaming the range a little [laughs] bit, or you're getting gamed by the other guy, the range. It's really not fair. In some ways, it adds a gamer dynamic to what should just be straight numbers game, but that's what makes it fun and we're tied it to. Onto number 5. Speaking of tie breakers for 22, a tie is about to be broken, turning back to Brian Feroldi. Brian, do you have any friends?
Brian Feroldi: Yes. [laughs]
David Gardner: I needed to finish that line. Brian Feroldi, do you have any friends who are realtors?
Brian Feroldi: I have a friend that's a realtor. In fact, I was just texting with her this morning because another friend said they were interested in real estate in Rhode Island. They live out of state and she's saying, "Do you know any realtor, so I sent along my friend's name."
David Gardner: I think almost all of us once you've been in the professional world for maybe 10 or so years, so maybe you're at least mid-30s, you probably know a realtor I would think even if you're not related to a very talented one, as our friend Brian Stoffel is. Brian F levels last time you moved.
Brian Feroldi: 2011, sheer luck we happened to buy our house at the exact bottom of the market. Happy where we are and over here for now 10 years.
David Gardner: That's awesome. Do you think you're going to be there another 10 years?
Brian Feroldi: If the right opportunity came up, I think we'd be willing to move, but we're not leaving our town.
David Gardner: Wonderful. Having visited you in your neighborhood, hanging out a couple of years ago playing a board game when we came through Rhode Island in the summer, a very fond memory and I think a lot of us hope to find a place we can stay and not feel like we're balanced in our families around all the time. But there are lots of different demands in life and lots of unpredictable curves. I'll hope that you can stay where you are. But that would make Redfin Corporation (NASDAQ: RDFN) maybe a little bit disappointed ticker symbol, RDFN, because let's face it at its hard, consumer-focused real estate businesses want you move. The more you and I move or want to rent or open up something or change it up, the more transactions happen, the more transaction fees happening. If you're Redfin, you're trying to do it a little bit different than the industry traditionally has done it. Brian Feroldi, have you ever looked at Redfin stock?
Brian Feroldi: Not only have I looked at Redfin stock, Brian Stoffel and I take stocks that we've never researched before and we do so live for about an hour. Was it a month ago we did Redfin? [laughs]
David Gardner: Perfect. Again, I randomize this stock list, but we always get to some interesting companies and a lot of us have connections in different ways to these companies. I'm delighted to ask you then Brian Feroldi, what does the market cap range you have for Redfin Corporation ticker symbol RDFN?
Brian Feroldi: This is where it gets the game within the game because I'm guessing that both of us are going to be right in the same range [laughs] for what we think this company is worth. I also know that Redfin is a growth company and it stock did nothing for a couple of years after it came out and then at 2020 it just went bananas and like five bags. But I'm pretty sure this company has been sold off hard in the last couple of months, just like many other growth companies in its phase. My gut feel is I have to go in a pretty tight range here that I normally would, so I'm going to say 2.9 billion to 4.4 billion.
David Gardner: 2.9 billion to 4.4 billion. Brian Stoffel, I can read body language. We're all seeing each other using Zencastr actually to do this podcast. I see you seems like you're pretty impressed by what Brian just put out there.
Brian Stoffel: I went with the percentages instead of my gut last time and I just missed, so I wrote down 4.7 billion. Brian, just being a pain in my butt by going to 4.4. But I'm going to follow my gut and say outside.
David Gardner: Wow, that's three in a row for Feroldi, it was inside the range 3.88 billion. The stock, by the way, trending down since three months ago from 50-39. Certainly has been a Rule Breaker darling for many of us. The stock came public guys in 2017, I think, and it ran up to about a four-bagger by early this year but it has lost so much value to the point now where it's about dead even with the S&P 500 from its IPO. It's about doubled from its IPO but that means this is a stock well down from its 2021 highs, is basically dropped from 100 to about 40. It feels like Zillow, even though it didn't do what Zillow did to earn what Zillow has done. It's a really interesting company to keep looking at.
Brian Feroldi: One thing that really impressed I think both Brian and I when we were researching Redfin was just how consumer-friendly they were. So much that both of us essentially said, "And we're done." Investing in the business is one thing, there are some big risks here, but at the consumer level, the next time I buy or sell, Redfin is going to be my first call.
David Gardner: Well, let's move on to stock number 6, I turn to Brian Stoffel. Brian, what's shoes are you wearing right now, and are they your go-to?
Brian Stoffel: Well, since we work from home now, I'm wearing my slippers because [laughs] it's cold here in Wisconsin. When I'm inside they are definitely my go-to.
David Gardner: I see our friend Brian Feroldi holding up something that look like moccasins or something slipper-like himself in Rhode Island.
Brian Feroldi: You got that right, I wear slippers non-stop in the wintertime.
David Gardner: Okay. That probably wouldn't be true if we were going to offices. Is it safe to assume that you guys would not be in slippers at the office?
Brian Feroldi: The Motley Fool was a pretty generous place.
David Gardner: It's true. In fact, our first Chief Technology Officer surprised some external guests like Biz-Dev people when he had no shoes on at all. We've done that, we're open to that at The Fool, we're open to a lot of things at The Fool. Maybe we could go to work at Fool HQ in slippers and then it would become the in thing. Comfortable shoes I think matter a lot to us as humans. We probably don't recognize as frequently as we should how important our feet are to our health, our long-term health. Sometimes something that feels really comfortable isn't necessarily great for your foot, sometimes it's that firmer, harder thing. I'm not a podiatrist, I'm not going to be somebody who speaks authoritatively here, but I did once pick a stock that's done OK. Ticker symbol is SKX, the company is Skechers (NYSE: SKX). I picked it for Motley Fool Rule Breakers, it was September of 2015. I'm really sorry to say if anybody goes back and looks at a stock market chart in the last six years you'll see a massive spike in the months leading up to our cost basis for Rule Breakers and then a huge drop and the stock really didn't return to 50 where we got it in 2015 until recently. But I don't want to say too much more because I might be giving away some of the facts to my very bright contestants, and I'm not just talking about the Brians, I'm talking to all of us listening to me right now. I'm going to leave it there and not talk too much more about the stock but I will return to Brian Stoffel and ask you, Brian, do you own any Skechers yourself, not stock here I'm talking shoes?
Brian Stoffel: I don't, but my daughter does.
David Gardner: Why do you think she owns Skechers?
Brian Stoffel: Because, honestly, when you go to the shoe store they are the ones that caught her eye and they fit and she liked how they were in. For me on my side, they were affordable so I think all those things combined.
David Gardner: This is ironic, definitely not planned, but I am wearing my pair of Skechers right now as we do this podcast. I didn't think about that this morning before I randomized the stocks that we'll talk about but, yeah, I think they are really comfortable, they are very affordable, they're also very light. They're like shoes that are surprisingly non-dense. It almost feels like is this a shoe that I'm holding or is this just air in front of me? I'm not talking about Nike Air. Yeah, Skechers, I'm a fan even though the stock has definitely been an underperformer for Rule Breaker members. Although if you'd picked this up a few years ago, you might be sitting pretty happy with your cost basis. I'm not going to say anything more though about the stock because I want to turn back to Brian and say, Brian, I see Feroldi up three, two over you so let me turn and to ask you your market cap range for Skechers, ticker symbol SKX.
Brian Stoffel: My range is going to be 5.3 billion to 11.2 billion.
David Gardner: 5.3 billion to 11.2 billion. Brian Feroldi, before you come up with your answer, do you have any quick thoughts or opinion about Skechers or shoes in general?
Brian Feroldi: I'm not much of a shoe guy myself and I'm pretty sure there are Skechers in my house and like Mr. Stoffel over there, they belong to my kids and I'm pretty sure they were chosen because they were the right color. That's pretty high up in my kid's choice when it comes to clothing and footwear. I have not followed this company at all. I do know for a brief period of time it was a red hot stock, it had everything going for it. I'm really glad you said it was not going well recently.
David Gardner: That helps you a little bit. If it helps you anymore, the stock from 2012 went from about five to its peak of 50 in 2015. It did briefly retouch that recently although it's fallen back down with a lot of the market. Anyway, yeah, you're right it was a tenbagger in a three-year period.
Brian Feroldi: My gut wants to say that this was a company that will be measured in the hundreds of millions of dollars. The fact that the lower range here is 5.3 billion, I was thinking two, three billion so I'll go under and say outside.
David Gardner: We're tied again. Brian Stoffel makes another good call in his market cap range. Skechers tips the scales as we speak at six and a quarter billion, $6.26 billion well within that 5.3-11.2 range. Brian Stoffel, maybe you should buy yourself a pair of Skechers to celebrate.
Brian Stoffel: I agree. I might need to go out and get one.
David Gardner: If you did, what color?
Brian Stoffel: Blue. I like Blue.
David Gardner: Awesome. I was going to go with sparkly pews. Although admittedly guys, showing you just over the air here, I wear blue Skechers so I'm with you. [laughs]
Brian Feroldi: I'm I the only one that don't know what color pews is? [laughs]
David Gardner: I'm glad you asked. It's a word I just remember, I thought it was such a funny word when I was a kid. It is a color and I'm looking it up real quick and my friend dictionary.com has this as they dark red or purple-brown in color. I think the reason pews is funny is because it's like three different colors and you can call almost anything in a certain wide range of the spectrum pews, so there you go sparkly pews. You know every company featured today is listening to our market cap game you know the Skechers people are hearing us right now, sparkly pews people. All right, well we're tied three all let's move on now to stock number 7. Brian Feroldi, have you ever been to Minnesota?
Brian Feroldi: I never have and it is on my to-go-to list. All the lakes out there, the Twin Cities, and a good friend of mine from college just relocated to the Twin Cities from Colorado. It is a place I really want to go but I do have a hard time convincing my wife to vacation North of where we live.
David Gardner: I appreciate that. Now both of you guys, since I know you're coming to us this week from Wisconsin and Rhode Island, you were comfortable with cold. Maybe Brian Stoffel in Wisconsin a little bit more, cheese heads a little bit more than the Rhode Islanders. I won't say, but Minnesota is a beautiful state and I will admit that I visited a number of times and it was always in the summer. [laughs] Because it's a beautiful place to play golf in the summer or watch a Minnesota Twins baseball game, but I really haven't ever gone in and braved the true cold North in Minnesota. But it is a great state, one of the 50 proud to have them in the union. The name of that state is, of course, implicit in the historical name of company number 7.
That's 3M Company (NYSE: MMM), Minnesota Mining, and Manufacturing, I'm pretty sure that's what the 3M stand for, the ticker symbol is MMM. One thing you have to like about 3M stock, we're about to find out what the market cap is very shortly, but one thing you have to love about 3M stock is the dividend yield of these shares today. With inflation tipping the scales over five percent for the first time in a few decades, it's nice to think you're getting a 3.43 percent dividend yield from the stock keeping you pace with inflation right now. I sure hope that inflation is more of a flash in the pan we shall see, but 3M of all the companies we're sharing, I think this is the big dividend payer of these 10 this week. We've got the three, three tie, it's about to be untied again, I'm going to turn to Brian Feroldi and Brian, what is your market cap range for 3M Company? That is its official corporate name, 3M Company, ticker symbol MMM.
Brian Feroldi: This is not a company I've looked at recently. I put this in that category of like a Johnson and Johnson, a General Mills, very big, dependable, slow-moving, high-quality, low growth business that's a play on total return. I know it's huge, I know it's enormously diversified, I know it's very well-run, I know that it grows at a modest rate. I think it's over 100 billion, I don't think it's over 200 billion. I'll say 112 billion to 142 billion.
David Gardner: One hundred twelve billion to 142 billion for the 3M Company. I'm just going to give a quick fact here as Brian Stoffel scratches his head on this one and all of our listeners around the family hearth thinking about whether they're going to go inside or outside that range. This company has formed as a mining venture in the year 1902 in Two Harbors, Minnesota, I've never been there. The goal was to mine corundum but this failed because the mine was anorthosite, whatever that is, and anorthosite is basically worthless. I love the stories, I'm a total sucker for corporate histories, I think they should be taught in the schools. Academia should have chairs in every university teaching corporate histories, I think it's a great unexplored part of our education today. But I love finding out how companies started especially hearing how they just did something crazy or silly and then morphed and morphed again and 3M Company is obviously an example of that. The maker of the post-it notes started by a failed mining enterprise in Two Harbors, Minnesota. Brian Stoffel, everybody at home, is the market cap of 3M Company inside or outside the range of $112-$142 billion?
Brian Stoffel: I'm going to say outside, I think it's bigger.
David Gardner: You are right, and yet you kind of were wrong. It's actually smaller. [laughs] But you were right. That's part of the beauty of the Market Cap Game Show. You don't always have to be right to be a winner. That was a pretty darn good call by both of you. But Brian Feroldi, the market cap of 3M Company today is 101.51, [laughs] basically 102 billion or so. The call of 112-142, pretty solid, and yet it was outside that range just a little bit lower. Once again, guys, this is a company where you thought it was bigger than it actually is. Now, the stock has been sleepy. It's over the last three months, since we last played the Market Cap Game Show, we did not do this one together three months ago. But three months ago it was at 177. It's drifted down to 173 today. It's as Brian Feroldi described it is a mainstay of American business. I like it. It's been a stock pick of mine in the past, because I like the innovation that this company has been capable up for decades, and it's not that easy to innovate at a big scale. They tend not to have the one big widget, the iPhone that's going to come along and transform the whole business.
They just do tons of little innovations, and they add up to $100 billion or so about a century later, and yet not the most dramatic or exciting company. But that's why I was talking up the dividend yield. Before we move onto stock Number 8 with Brian Stoffel ahead 4-3, I do want to note because I looked this up, a north of site, which was that the nothing they weren't hoping to find in their mind that they probably overpaid for at the start of this company in North of site. Prominently represented rock samples brought back from the moon, and it's important in investigations of Mars, Venus, and the meteorites. We all learned a little something extra this week on the Market Cap Game Show. Well again, still full for Feroldi 3, let's move to company number 8. Turning to Brian Stoffel, who was just right by being wrong but was right. [laughs] Let me ask you, Brian, I know a big part of your frameworks and your thinking are around anti-fragility.
A lot of us will know that concept if you've read Nicholas Nassim Taleb, and you've made a lot about that. You connected his ideas into how to think about businesses that are themselves anti-fragile, that can do really well even in down periods, let's say. I'm not trying to put words into your mouth, but having actually not read Taleb's book, I know you're all over it. You know much more about this than I do, but my school-boy understanding of books I haven't read, and that's one thing I took away. But I'm curious, Brian Stoffel, could you give us maybe a shortlist of, let's say, three of the most anti-fragile stocks in your mind. Doesn't even have to be the top 3, but just on the Mount Rushmore are the top 10 of anti-fragile stocks, what are a few that come to mind for you?
Brian Stoffel: Well, Amazon is definitely number 1. They try things. If you want to go back and read Jeff Bezos's letter about one and two way doors and how you make decisions is a brilliant representation of anti-fragility to me. Another one I would throw on there is Axon enterprise, maker of body cameras and tasers. I think that they are the perfect marriage of wide moat and optionality. In other words, the wide moat can prevent the negative black swan, and the optionality gives you exposure to a positive black swan. If I had to choose one more, I'd have to go with the company that scores the highest in the framework, which is Mercado Libre. Because it has become much like 3M, much more than what it started out as.
David Gardner: Well, those are great companies and all companies I admire, and in fact had picked and own myself. Maybe I understood anti-fragility before Taleb even did it yet you guys know much more about it than I do. I do like the concept though and certainly, if we're going to buy stocks, gentlemen and hold them for long periods of time, we need to have competitive advantages that are sustainable. We need to be pretty amazing. Whether it's through every business climate like this company that we're about to talk about, I think is or just good enough in good times that we can swim through the bad ones. Well, Stock Number 8 is one of those companies that changed its corporate name, but the ticker symbol persists. At some point I think they should probably rectify that. But Alphabet (NASDAQ: GOOG), which didn't make your shortlist just put out here, Brian, but I easily could have heard you say this company's name because I know it has to conform to a lot of the things that you look for in investing and for me as well. Alphabet of course, still rocks the Google ticker symbol GOOG. I know you are starting to ask yourself, what does the market cap range? I'm going to give for Alphabet ticker symbol, GOOG. If you are asking yourself, it's about time to answer that.
Brian Stoffel: It's funny you say that because Alphabet was the one company that was on the tip of my tongue that I didn't say. When we had our check-in last week about the highlights of last year, we talked about the gamification of this. Here we go. Brian Feroldi, I wrote a report this morning that asked for the market cap of Alphabet. But what am I going to do? I am going to go from between 1.42 billion to 1.85 trillion. [laughs].
David Gardner: This was the rare time where I had my ref's whistle out and I was about to throw a flag.
Brian Stoffel: Oh my goodness.
David Gardner: In honor of the game, we're going to ask you just to restate that before any of us can make a guess.
Brian Stoffel: 1.45 trillion.
David Gardner: At 1.45 trillion.
Brian Stoffel: To 1.85 trillion.
David Gardner: To 1.85 trillion. The human mind has a hard time even distinguishing between billion and trillion for lots of important reasons. But there are a thousand billions in a trillion, and it's hard to wrap our minds around that. Yet, as you gentlemen know there are a number of public companies today that now have trillion plus dollar market caps. Without giving any big spoiler here this is one of them, but of course I'm not going to speak to the actual range given. I think we can all appreciate. Let me see if there are 10 figures in a billion. I guess there are 13 figures in a trillion. This is a 13 figure market cap. We like to abbreviate you scientific notation, just taking a couple of decimals. Thank you for doing that for us Brian Stoffel. Brian Feroldi, and all of my players at home the stated range of market cap for Alphabet today, ticker symbol GOOG is 1.45-1.85 trillion. Brian, players at home, is it inside or outside that range?
Brian Feroldi: Well, my gut was going to say that the market cap was two trillion. I know that Brian is playing mega mine games with me on that upper bound range there of 1.85 trillion because that's going to get down to how far below its all-time high is it? If he looked at it this morning, depends on what the stock is doing today, which I don't know, I think the market is up today. Based on that, I'm going to say outside, and I think it's 1.9 trillion.
David Gardner: You nailed it. I hasten to add of course, that we are recording this now the afternoon of Tuesday, December 21st, when you get this fine-tooth comb combing through gigantic numbers of market cap, and these gentlemen are that on-point taking out to a decimal, we have to remember our listeners are hearing this well at the earliest, probably Wednesday evening and then Thursday the market will trade, etc. Players at home give yourself a gold star or a plus one if you're anywhere near here because this is a stock that we can't know where it's going to trade Wednesday, Thursday, or Friday. With that said we've reached a dramatic juncture because we're once again tied. The market cap for Alphabet is 1.955 trillion [laughs] as we record over the past quarter.
By the way, the stock is up from 2,700-2,846. But who's counting? It's one of those stocks that's up over the last few months. Many of our innovators, as we've already talked about, are not up over the last three months Alphabet is though, and Alphabet does feel pretty anti-fragile to me. Part of it is that ironically, it's innovating and failing as much as any company out there at scale, probably, maybe more than any company out there. But Biogen being so well diversified and having that huge cash cow of the basic Google business that will not fail anytime soon, it's allowed itself to fail and become more anti-fragile. I see you agreeing, Brian, is there anything you'd like to add before we move on to stock number 9?
Brian Stoffel: Just that they're moonshot projects. That is, they just need one to hit for it to make a difference to shareholders. None has really, we keep hearing about Waymo, but nothing has hit yet, I'm curious to see what the next 10 years bring.
David Gardner: Maybe they will find an incredible use, speaking of moonshots, for a north of site, maybe they will start to mine it from our moon and Mars and it'll all lead to the future, and it's all brought to you by Alphabet, [laughs] we'll see. Well gentlemen, this is an interesting moment because you're tied four to four. Ironically, perhaps and anybody who is listening last week already knows this, we decided that the Etsy teaser from last week's show which you guys played, would serve as a potential a pre-ending tie breaker for this week show. I regret to say if you're a Feroldi fan that Brian Stoffel won that Etsy tie breaker, which means this, if you guys tie this week, and it very well could happen finished five, five three months ago, we're at four four right now, we've already decided ahead of time that Brian Stoffel will win. Therefore, my friend Brian Feroldi, you will need to win these next two in order to win this Market Cap game-show.
Brian Feroldi: But David, that's using GAAP accounting. If we use non-GAAP, [laughs] Brian Stoffel really only gets a half point for the 3M answers.
David Gardner: That whole idea of a tiebreaker is an anathema to this game really, but we didn't think it was going to happen. We were having fun last week. We said why not do this in case for some reason this ended up five to five. While just keep playing, keep your eye on the ball and keep playing to the best of your ability. Anyway, I hope it goes six, four or four, six on its own, but it could very well go five five. Let's get the stock number nine. Turning to Brian Feroldi. Brian, let's play word association really quickly. You ready?
Brian Feroldi: I'm terrified.
David Gardner: I'll give you a word or phrase and you're going to give the first thing that pops into your head. Here we go. Robinhood (NASDAQ: HOOD).
Brian Feroldi: The app.
David Gardner: Interesting. Now, giving yourself a little bit more time, going another direction. What else much you've said about Robinhood?
Brian Feroldi: Rob the rich, feed the poor.
David Gardner: Good one, merry men, etc. It's a phrase, it's actually a board game that I'm putting under the tree of one of my friends this year. The adventures of Robinhood turned into a story-based campaign board game. Robinhood has been a bad movie a number of times in theaters, occasionally a good movie. I thought the Russell Crowe version was pretty good. But I mean, Robinhood for investors is an app on your phone where you trade stocks, where you open up a brokerage account, especially for younger people. It's big go-to for a new generation of people who are just getting started investing. Robinhood has been loved and vilified at different points over the last few years for making investing fun or easy or trading gamified, if you like. There are positives that we three conceded that and there are some downsides that we can see that as well.
Robinhood is not stock number nine, but it is a reminder that in order to become an investor, you're going to need to open the account somewhere. Sometimes when people ask me, Dave, how do you get started investing, I start saying, well, you start looking at this for this coming this. They would say, "But how do you actually start investing?" You need to open an account and a brokerage for Fidelity (NYSE: FNF), Schwab (NYSE: SCHW) or whatever, or maybe Interactive Brokers (NASDAQ: IBKR). Ticker symbol IBKR, this is not only a Motley Fool stock pick of some vintage, but it's also a common destination for many of our members who might have opened up accounts at Interactive Brokers. So whether you're at Fidelity, Interactive Brokers or Robinhood in the end, we're all putting our money somewhere and then trying to figure out how to allocate it. What companies do you want to be a part-owner of? I hope, for a meaningful period of time as opposed to trade. With that said, Interactive Brokers Group, the Ticker symbols I mentioned, IBKR, Brian Feroldi. What is your market cap range for Interactive Brokers?
Brian Feroldi: This is my broker and it's Mr. Stoffel. No, he has a different broker than me, so I'm very familiar with the company's product.
David Gardner: Excellent. Little bit home team play here.
Brian Feroldi: True. One reason I like it is it's far more complicated and hard-to-use than other ones. It's such a pain to log into that it prevents me from [laughs] trading more often. But that's a big positive. I like about this company.
David Gardner: Brilliant.
Brian Feroldi: I do know that the founder of Interactive Brokers, his name as Thomas Peterffy or something along those lines. I remember that he owns a huge amount of this company, like maybe half of it. He is a multi-billionaire that lives in Connecticut. I know the company itself has been stealing market share for many years. But I don't think it's all that huge. I'm going to say I'm going to give the market cap range of 8 billion to 14.5 billion.
David Gardner: 8 billion to 14.5 billion for a company that doesn't advertise that much. A lot of us know Fidelity or Schwab. We know Robinhood, even though it's an upstart, not as many people, probably know Interactive Brokers. Players at home, Brian Stoffel, 8 billion to 14.5 billion ticker symbol IBKR, inside that range or outside that range?
Brian Stoffel: I had written down 5-12. He didn't help me very much. I'm going to say outside, it's smaller than 8 billion, which means that it's probably bigger than 14. [laughs] But let's see how it all plays out. [NOISE]
David Gardner: Indeed it is. It's actually quite a bit larger than that. It's again, not a stock I picked before. A lot of Motley Fool members know this company, use this company. I didn't know that its market cap is $32.45 billion.
Brian Stoffel: Oh my goodness.
David Gardner: This is a big financial services player and you can see why a lot of people feel safe having their money there. I've always felt better thinking that my money, whatever banker brokerage it's in, if it has a much bigger market cap, then a banker broker with a tiny little market cap, I feel like my money is probably safer. Some people, in addition to a complicated user interface, Brian, some people maybe just appreciate the solidity of this company and I'm happy and sad at the same time to announce that we're still going to play stock number 10. But this match, in one sense is over because Brian Stoffel you just put up a fifth point and you already have the tiebreaker. With that said, Brian Feroldi. If you were to tie 5, 5, a lot of people are going to say it's disputed and that [laughs] tie breaker was just that movie trailer. A podcasts earlier last week. It wasn't part of the game. We'll see.
Brian Feroldi: Brian was wrong again, but you got the point.
Brian Stoffel: Not to mention that two of my five points have come in the wrong direction but I've still gotten it correct.
David Gardner: But who's counting?
Brian Feroldi: Me, I'm counting.
David Gardner: Well, the final stock of this market cap game show of this year Ticker symbol. I'll go right to it. It's TRUP. Brian Stoffel. Do you have a pet around the house?
Brian Stoffel: I do not. I like to say my three-year-old is the closest thing I have.
David Gardner: [laughs] Did you grow up with pets?
Brian Stoffel: I didn't. We had our home that had three boys, and we were always doing sports and things. It wouldn't have been good for a pet.
David Gardner: Brian Stoffel, why do you hate animals so much?
Brian Stoffel: I don't know, but I do.
David Gardner: Well, if you did have a pet around the house, even a beta fish, you might consider getting pet insurance, which when I first heard about it sounded like this crazy thing, like who would actually get that ten years ago. Then over the last ten years, pets have become family members. We all want to have our health insurance for each other and grabs and yeah, our fish these days it seems like, Trupanion (NASDAQ: TRUP) Ticker symbol T-R-U-P is a company that, well, they had a lot of foresight and positioned themselves well to be a leader within this field. Again as stock, I don't know much about, but I randomize this list. I don't need to know every company. You guys just need to know the market caps of every company. Let me turn back to the animal-hating Brian Stoffel. I'm sorry, Brian. [laughs]
Brian Stoffel: That's OK.
David Gardner: You're still basking in the glow victory so we can have a little fun with you. Brian Stoffel, what is your market cap range for Trupanion?
Brian Stoffel: Maybe go 3.3-6.6 billion.
David Gardner: 3.3-6.6 billion. I will mention this stock has been really good over the last quarter. We'll talk briefly about why in just the last few weeks. But Brian Feroldi and players at home, let's not going to home here. Stock number 10, the range is 3.3-6.6 billion. Brian inside or outside that range, Trupanion?
Brian Feroldi: I'm going to say I think that that range is really good. Prior to its recent run-up, I remember that this company is about a $3 billion business, and like you said, it's been good recently. That range is thumbs up.
David Gardner: You are correct, which leaves us at arguably a tie, arguably. Five to five asterisk with, you have to give a head nod to Brian Stoffel for his remarkable. [laughs] You weren't even expecting me to launch this on you in the middle of the Besties absolute last week. [laughs] But we are going to play the game tie breaker. But you guys both once again did wonderfully and your great sports and taught us a lot through this hour together as well. You do finish five to five. We're going to give it to Stoffel because of the tiebreaker because I try to be a personal by word. But I do want to say it's been a remarkable performance for Trupanion stock up 80-125 in just the last three months. It sounds like at least one of us, besides me, knows why this stock has run up very recently. Do you want to say why?
Brian Feroldi: I actually don't know why, although I know is that roughly with the market capitalists.
Brian Stoffel: That they have a partnership with Chewy (NYSE: CHWY).
David Gardner: That's it. Chewy, obviously the pet food company. Another good Rule Breakers Stock announced Trupanion as it's preferred partner within this space, the stock shot up and then actually gave a lot of it back in just the last ten days or so. It's been interesting to follow this company, but yeah, at a market cap of 4.76 billion, solidly within that 3.3-6.6. Well, I want to thank you both again for both your good nature and your good stock-picking smarts, and yeah, your market cap savvy as well. We'll start with our winner. Brian Stoffel. Brian, thank you so much for being with us this week on the Market Cap Game Show.
Brian Stoffel: Thank you, David, and I look forward to a time in 2022 when we can try and have an outright winner.
David Gardner: Brian Feroldi, a lot of us, our hearts are still with you. We feel like you at least tied this one.
Brian Feroldi: Yeah.
David Gardner: Those two, thank you very much once again for joining me on the Market Cap Game Show and happy holidays to you, sir.
Brian Feroldi: Thank you very much. It was a pleasure to be here and I promise I'll be a good sport while I'm being recorded.
David Gardner: Well, in conclusion, from the Stoffel family, from the Feroldi family, from the Engdahl family, and from the Gardner family. We wish you the very best of holidays. Stay safe out there. Wash your darn hands. Maybe have that conversation if there's anyone that you would feel regretful if you didn't have that conversation, have that one and have a wonderful holiday, which sometimes for some of this means time away as well. Next week, it is your Rule Breaker Investing mailbag, the final one of the year, some great stories, some new music, other treats to come. In the meantime, Merry Christmas and a happy New Year.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brian Feroldi owns Alphabet (A shares), Alphabet (C shares), Amazon, Datadog, Etsy, Zillow Group (A shares), and Zillow Group (C shares). Brian Stoffel owns Alphabet (A shares), Alphabet (C shares), Amazon, and Datadog. David Gardner owns Alphabet (A shares), Alphabet (C shares), Amazon, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Chewy, Inc., Costco Wholesale, Datadog, Etsy, Redfin, Trupanion, Walker & Dunlop, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends 3M, Charles Schwab, Interactive Brokers, NextEra Energy, and Walker & Dunlop, Inc. and recommends the following options: long January 2022 $1,920 calls on Amazon, short December 2021 $70 puts on Interactive Brokers, short February 2022 $65 puts on Redfin, and short January 2022 $1,940 calls on Amazon. 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.
|
Well, I was hoping you'd say a dog, because the ticker symbol of stock number 1 is DDOG really doesn't have much to do with pets in the end. But since this Cloud services monitoring company, which is a longtime Rule Breaker pick, since it took on the name Datadog (NASDAQ: DDOG) and they're in the logo. Brian, what is the range of market cap that you'd like to give Datadog ticker symbol DDOG?
|
Well, I was hoping you'd say a dog, because the ticker symbol of stock number 1 is DDOG really doesn't have much to do with pets in the end. But since this Cloud services monitoring company, which is a longtime Rule Breaker pick, since it took on the name Datadog (NASDAQ: DDOG) and they're in the logo. Brian, what is the range of market cap that you'd like to give Datadog ticker symbol DDOG?
|
Well, I was hoping you'd say a dog, because the ticker symbol of stock number 1 is DDOG really doesn't have much to do with pets in the end. But since this Cloud services monitoring company, which is a longtime Rule Breaker pick, since it took on the name Datadog (NASDAQ: DDOG) and they're in the logo. Brian, what is the range of market cap that you'd like to give Datadog ticker symbol DDOG?
|
Well, I was hoping you'd say a dog, because the ticker symbol of stock number 1 is DDOG really doesn't have much to do with pets in the end. But since this Cloud services monitoring company, which is a longtime Rule Breaker pick, since it took on the name Datadog (NASDAQ: DDOG) and they're in the logo. Brian, what is the range of market cap that you'd like to give Datadog ticker symbol DDOG?
|
3888c610-bcc3-419c-ac48-475ddc8f24fd
|
718774.0
|
2021-12-28 00:00:00 UTC
|
Datadog: Exciting Growth Story at a Steep Price
|
DDOG
|
https://www.nasdaq.com/articles/datadog%3A-exciting-growth-story-at-a-steep-price
|
nan
|
nan
|
Datadog (DDOG) provides a leading monitoring and analytics platform for developers, IT operations teams, and business users in the modern cloud age.
The company's SaaS platform incorporates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide unified, real-time observability of its customers’ entire technology stack.
With organizations of all sizes and across most industries striving for digital transformation and cloud migration, Datadog's platform is extremely useful in terms of driving collaboration among development, operations, and business teams, which reduces time to problem resolution and understanding user behavior through its critical business metrics. Consequently, the company has been experiencing robust demand for its platform, growing its revenues sequentially at a rapid pace.
I believe Datadog is set to continue reporting solid growth across the board in the medium term. That said, investors need to be wary of the stock's expanded valuation, which could result in headwinds when it comes to investors' total return prospects. For this reason, I am neutral on the stock.
Latest Results
Datadog's latest results came in quite strong, with the company delivering robust revenue growth of 74.9% year-over-year to $270 million. Revenues also grew by 15.8% sequentially. What's most impressive to note is that revenue growth has actually been accelerating. In Q1-2021 and Q2-2021, it grew by 51.3% and 66.8%, respectively, clearly forming an upwards trend following the company's Q3 results.
Powered by enterprise customers growing by 62.6% year-over-year and by 11.8% sequentially, Datadog's total customer base grew 33.6%. Combined with a consistently solid net revenue retention rate of 130%, Datadog's highly scalable platform features robust customer validation.
Datadog believes that it's still in the early phases of its market opportunity, with companies continuously shifting their workloads to the cloud. It's also worth noting that Datadog's platform is cloud-agnostic, which means it can scale in multi/hybrid cloud infrastructures frictionlessly.
In its Q3 results, Datadog's gross margins stood at 77%, which is quite a rich level and should allow for quite high net income margins once the company matures. Still, Datadog remains unprofitable, with its GAAP operating margin at a negative 2%. The company's R&D comprises around 30%+ of total sales due to the company allocating its growing top line to reinvest heavily in building and improving its platform. However, with scale, this percentage should decline, allowing for a richer bottom line.
The Valuation
As I just mentioned, Datadog remains unprofitable. For this reason, it's more meaningful to value the company based on its sales. The company expects to deliver revenues between $290 million and $292 million in its upcoming earnings and FY-2021 revenues between $993 million and $995 million.
The stock is essentially trading at around 56 times its sales at its current market cap, which is a very steep valuation multiple. On the one hand, the company is growing rapidly and accelerating sales growth. Further, its rich gross margins could justify a premium on sales.
That said, this is a remarkably rich valuation that provides a zero margin of safety, assuming Datadog's growth was to decelerate from here. In my view, the stock would be more reasonably valued at a P/S closer to 40.
Wall Street’s Take
Turning to Wall Street, Datadog has a Moderate Buy consensus rating, based on 12 Buys and three Holds assigned in the past three months.
At $211.14, Datadog stock projections suggest a 15.08% upside potential.
Disclosure: At the time of publication, Nikolaos Sismanis did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) provides a leading monitoring and analytics platform for developers, IT operations teams, and business users in the modern cloud age. With organizations of all sizes and across most industries striving for digital transformation and cloud migration, Datadog's platform is extremely useful in terms of driving collaboration among development, operations, and business teams, which reduces time to problem resolution and understanding user behavior through its critical business metrics. Combined with a consistently solid net revenue retention rate of 130%, Datadog's highly scalable platform features robust customer validation.
|
Datadog (DDOG) provides a leading monitoring and analytics platform for developers, IT operations teams, and business users in the modern cloud age. Latest Results Datadog's latest results came in quite strong, with the company delivering robust revenue growth of 74.9% year-over-year to $270 million. Powered by enterprise customers growing by 62.6% year-over-year and by 11.8% sequentially, Datadog's total customer base grew 33.6%.
|
Datadog (DDOG) provides a leading monitoring and analytics platform for developers, IT operations teams, and business users in the modern cloud age. Latest Results Datadog's latest results came in quite strong, with the company delivering robust revenue growth of 74.9% year-over-year to $270 million. In its Q3 results, Datadog's gross margins stood at 77%, which is quite a rich level and should allow for quite high net income margins once the company matures.
|
Datadog (DDOG) provides a leading monitoring and analytics platform for developers, IT operations teams, and business users in the modern cloud age. Latest Results Datadog's latest results came in quite strong, with the company delivering robust revenue growth of 74.9% year-over-year to $270 million. Revenues also grew by 15.8% sequentially.
|
ccd9a70e-401e-43c8-9936-1f9c225c87ae
|
718775.0
|
2021-12-21 00:00:00 UTC
|
2 Reasons to Sell Docebo Stock
|
DDOG
|
https://www.nasdaq.com/articles/2-reasons-to-sell-docebo-stock
|
nan
|
nan
|
Docebo (NASDAQ: DCBO) is the latest artificial intelligence stock to catch my eye. The company is bringing a different strategy to the enterprise learning management system (LMS) space by focusing on "social learning" -- a method that shies away from the traditional content delivery system and focuses on learning on the job and communal training. This can take place in many forms, whether it's through sharing ideas, workgroups, or modeling. In fact, nearly 70% of workplace learning is through informal, social learning, according to the company.
As an artificial intelligence company, Docebo has created an LMS based on social learning that offers modules and short training sessions designed to pop up on the job rather than having employees sit through hours of videos. While this business sounds great in theory, I have doubts as to whether the company will be able to succeed over the next five years. This is why I am staying away from the stock today and, if I owned shares, I would be dumping them.
Image source: Getty Images
Is it a "want to have" product?
I'm not sure whether this business is a "want to have" product or a "need to have" product. In other words, I question how hard businesses will search for tools that specifically focus on social learning rather than simply obtaining a traditional LMS product. For instance, a platform like DigitalOcean (NYSE: DOCN) might be a "need to have" product for its customers because it delivers assets (a strong community, simplicity, and transparency) that its customers find extremely important. Therefore, its customers will go out of their way to work with DigitalOcean rather than Amazon Web Services.
Docebo has spent over 50% of its gross profit on sales and marketing so far in 2021. This shows me that Docebo has to spend an exorbitant amount of its profit to convince customers that its products are necessities.
Another way of thinking about this would be using the "Snap Test." This is a hypothetical scenario that asks: If the company disappeared, would society truly miss it? One company that passes this test could be Zoom Video Communications (NASDAQ: ZM) because it would be hard to effectively do business without Zoom in our hybrid work environment. If Docebo disappeared, I question how many businesses would be missing it.
The company's Net Promoter Score (NPS) gives me an indication of this. NPS rates customer happiness from -100 to 100, with anything above 50 being considered good. Docebo's NPS is 31, meaning that 27% of customers surveyed gave it a negative score, which tells me that its customers might not be very excited about the product.
Additionally, I wonder how stable Docebo's business would be in an economic downturn. If customers had to choose between Docebo or Zoom during a recession, I don't think Docebo's services are essential enough. While Docebo might be a product that its customers would like to have, I think it fails to be a core software in any of its customers' daily operations.
Poor customer relationship expansion
The company has also done a poor job expanding its customer relationships. This might be a side effect from the factors above, but the company has failed to convince its customers to spend more money on its platform. Docebo's net retention rate is 108%, meaning that customers spending $100 one year ago are spending just $108 today. This pales in comparison to other software companies like Datadog -- an observability platform that allows companies to monitor the performance of their software -- which has had a net retention rate of over 130% for 17 straight quarters.
This low retention rate is also indicative of the switching costs Docebo's products have. The company says that its average contract value (ACV) increased 23% year over year in Q3. If the ACV increased by that much yet its net retention only indicates 8% more spending from existing customers, that could mean the company has high customer churn. While the company does not break out how much customer churn it has, this dichotomy between these two figures could put it in the double-digit range.
When I have worries like these, I tend to be much more concerned with the company's valuation. If a company is looking strong in terms of its finances and customer retention, I am OK with paying a high valuation. But when there are potential cracks in the business foundation, I won't pay any price. Docebo trades at 22 times sales, which is a very expensive valuation, especially for a company with these flaws. Other highly regarded AI stocks like UiPath (NYSE: PATH) trade for similar valuations, but the problems that Docebo faces are more existential than UiPath's.
What the business is doing is definitely disruptive, but my concerns about the company's performance mixed with a high valuation are enough to keep me away from the stock today and sell if I owned shares. Docebo seems to have run out of steam after it has attracted a few loyal customers, but because it isn't a necessary product, I see future struggles continuing to grow. This is why I'm keeping Docebo away from my portfolio.
10 stocks we like better than Docebo 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 Docebo 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 December 16, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jamie Louko owns Amazon and Datadog. The Motley Fool owns and recommends Amazon, Datadog, Digitalocean Holdings, Inc., Docebo Inc., UiPath Inc., and Zoom Video Communications. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.
|
As an artificial intelligence company, Docebo has created an LMS based on social learning that offers modules and short training sessions designed to pop up on the job rather than having employees sit through hours of videos. In other words, I question how hard businesses will search for tools that specifically focus on social learning rather than simply obtaining a traditional LMS product. What the business is doing is definitely disruptive, but my concerns about the company's performance mixed with a high valuation are enough to keep me away from the stock today and sell if I owned shares.
|
Docebo's net retention rate is 108%, meaning that customers spending $100 one year ago are spending just $108 today. If the ACV increased by that much yet its net retention only indicates 8% more spending from existing customers, that could mean the company has high customer churn. The Motley Fool owns and recommends Amazon, Datadog, Digitalocean Holdings, Inc., Docebo Inc., UiPath Inc., and Zoom Video Communications.
|
Docebo's NPS is 31, meaning that 27% of customers surveyed gave it a negative score, which tells me that its customers might not be very excited about the product. While Docebo might be a product that its customers would like to have, I think it fails to be a core software in any of its customers' daily operations. If the ACV increased by that much yet its net retention only indicates 8% more spending from existing customers, that could mean the company has high customer churn.
|
I'm not sure whether this business is a "want to have" product or a "need to have" product. If the ACV increased by that much yet its net retention only indicates 8% more spending from existing customers, that could mean the company has high customer churn. 10 stocks we like better than Docebo Inc.
|
facf307a-c222-4bc3-ae58-94946213c218
|
718776.0
|
2021-12-18 00:00:00 UTC
|
Better Cloud Stock: Snowflake vs. Datadog
|
DDOG
|
https://www.nasdaq.com/articles/better-cloud-stock%3A-snowflake-vs.-datadog
|
nan
|
nan
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) both break down "data silos" for companies with their cloud-based services.
Snowflake's platform pulls data from multiple computing platforms and centralizes those results for third-party apps and data visualization services. Datadog's platform helps IT professionals monitor the performance of different servers, databases, cloud services, and apps on its unified dashboards, which makes it much easier to spot potential problems.
Snowflake and Datadog operate in different markets, but they both simplify expensive and complex tasks for large companies. Back in January, I compared these two companies and claimed Datadog's profitability and lower valuation made it a better buy than Snowflake. Datadog's stock has rallied 56% since I made that call, while Snowflake's stock has only risen about 14%.
Image source: Getty Images.
Will Datadog continue to outperform Snowflake next year? Let's take a fresh look at both silo-busting software companies to find out.
Snowflake continues to generate dazzling growth
Snowflake's growth rates are stunning: Its revenue soared 174% in fiscal 2020, rose 124% in fiscal 2021, and grew another 108% year over year to $835.6 million in the first nine months of fiscal 2022.
Snowflake expects its product revenue, which accounts for most of its top line, to grow 103% to 104% for the full year. Analysts expect its total revenue to rise 104% this year, then climb 66% to $2.01 billion in fiscal 2023.
Snowflake's number of customers rose 52% year over year to 5,416 in the third quarter. Within that total, 148 customers generated over $1 million in trailing-12-month product revenue, representing 128% growth from a year earlier. It also ended the quarter with a net revenue retention rate of 173%, up from 169% in the second quarter and 162% in the prior-year quarter.
Snowflake's strengths are easy to spot, but so are its weaknesses. It isn't profitable by either generally accepted accounting principles (GAAP) or non-GAAP measures, and its net losses are widening. Its market cap of $99.5 billion also values the company at 50 times next year's sales, making it one of the priciest tech stocks on the market today.
On the bright side, Snowflake expects its non-GAAP product gross margin to rise from 69% in fiscal 2021 to 74% in fiscal 2022. That ongoing expansion indicates it still has plenty of pricing power in its high-growth niche market.
Datadog's growth is slower but more stable
Datadog's revenue rose 83% in 2019, grew 66% in 2020, and climbed 65% year over year to $702.6 million in the first nine months of 2021. It expects its revenue to increase 65% for the full year. Analysts expect its revenue to increase another 42% to $1.41 billion in 2022.
Datadog ended its third quarter with 1,800 customers that generated more than $100,000 in annual recurring revenue, which represented 66% growth from a year earlier. Datadog doesn't disclose its net retention rate every quarter, but it said that metric stayed above 130% over the past year.
At the end of the third quarter, 77% of Datadog's customers were using two or more of its products, up from 71% a year ago. Thirty-one percent of its customers were also using four or more products, compared to 20% last year.
Datadog's non-GAAP gross margin dipped from 79% in 2020 to 77% in the first nine months of 2021, mainly due to elevated cloud hosting costs. But Datadog expects to rein in those costs in the fourth quarter, and for its near- and mid-term gross margins to remain in the "high 70s."
Datadog remains unprofitable on a GAAP basis, but it turned profitable on a non-GAAP basis with a net profit of $71.6 million in 2020. It expects its non-GAAP earnings per share to improve about 80% for the full year.
Datadog's stock still isn't cheap. Its market cap of $51.2 billion values it at 36 times next year's sales, and it trades at nearly 360 times its forward earnings.
The winner: Datadog
Snowflake and Datadog are both promising growth stocks. But once again, Datadog's lower valuation, non-GAAP profitability, and milder deceleration make it the more compelling investment in this inflation-rattled market.
Find out why Snowflake Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Snowflake Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 16, 2021
Leo Sun has no position in any of the stocks mentioned. The Motley Fool owns and recommends Datadog and Snowflake Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) both break down "data silos" for companies with their cloud-based services. Datadog's platform helps IT professionals monitor the performance of different servers, databases, cloud services, and apps on its unified dashboards, which makes it much easier to spot potential problems. Back in January, I compared these two companies and claimed Datadog's profitability and lower valuation made it a better buy than Snowflake.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) both break down "data silos" for companies with their cloud-based services. Snowflake continues to generate dazzling growth Snowflake's growth rates are stunning: Its revenue soared 174% in fiscal 2020, rose 124% in fiscal 2021, and grew another 108% year over year to $835.6 million in the first nine months of fiscal 2022. Within that total, 148 customers generated over $1 million in trailing-12-month product revenue, representing 128% growth from a year earlier.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) both break down "data silos" for companies with their cloud-based services. Snowflake continues to generate dazzling growth Snowflake's growth rates are stunning: Its revenue soared 174% in fiscal 2020, rose 124% in fiscal 2021, and grew another 108% year over year to $835.6 million in the first nine months of fiscal 2022. Datadog's growth is slower but more stable Datadog's revenue rose 83% in 2019, grew 66% in 2020, and climbed 65% year over year to $702.6 million in the first nine months of 2021.
|
Snowflake (NYSE: SNOW) and Datadog (NASDAQ: DDOG) both break down "data silos" for companies with their cloud-based services. Snowflake expects its product revenue, which accounts for most of its top line, to grow 103% to 104% for the full year. Its market cap of $99.5 billion also values the company at 50 times next year's sales, making it one of the priciest tech stocks on the market today.
|
343326c4-9e97-4ba4-a5bb-9836a22740a5
|
718777.0
|
2021-12-18 00:00:00 UTC
|
3 Reasons to Invest in Datadog
|
DDOG
|
https://www.nasdaq.com/articles/3-reasons-to-invest-in-datadog
|
nan
|
nan
|
In today's increasingly digital world, businesses need reliable technology infrastructure to succeed. Customers don't want interruptions or hangups in their streaming videos, online purchases, or investing transactions. Datadog (NASDAQ: DDOG) can't entirely prevent technology problems from happening, but its monitoring platform is really good at giving the people who run those systems proactive insights and early warnings to prevent such problems before they happen. Here are three reasons why that operational expertise could lead to healthy returns for Datadog investors.
1. Datadog makes an increasingly complex job simpler and easier for its customers
Information technology platforms have gotten increasingly difficult to monitor, operate, and keep running smoothly, owing partly to the sheer number of different ways that businesses use them.
According to identity management specialist Okta, enterprises with 2,000 or more employees use an average of 175 applications, while smaller businesses with 1,999 or less employees use an average of 73 applications. Some are powered by physical data centers, while others rely on one of several different cloud computing services.
Image source: Getty Images.
Datadog helps organizations build reliable technology infrastructure by detecting, preventing and repairing technology failures faster. It works with every kind of technology businesses might use, collects information those businesses need to make sure their computer systems stay up and running, and presents that information in ways that the people running those systems can easily understand.
2. Datadog's excellence in product innovation is expanding its market opportunity
Consistent innovation helps Datadog stand out from the pack. After the company built its core infrastructure monitoring platform, it has continued to add important capabilities that cover more and more aspects of monitoring, as this graphic from a recent investor presentation demonstrates:
Image source: Datadog earnings presentation.
In October 2021, Datadog announced 10 more new products and features. And as recently as last week, the company announced a new product to help detect and protect their users' sensitive personal data, and avoid running afoul of regulations designed to protect users' privacy.
Making new products helps Datadog sell more of those offerings to new and existing customers:
KEY CUSTOMER METRICS
SEP 30, 2021
SEPT 30, 2020
GROWTH (%)
Total customers
17,500
13,100
34%
Customers generating $100,000+ in annual recurring revenue
1,800
1,082
66%
Using 2 or more products
77%
71%
11%
Using 4 or more products
31%
20%
15%
Source: Company earnings releases and transcripts.
The company also stated that its net dollar retention rate – how much more the average existing client spends from one year to the next – has topped 130% for the 17th consecutive quarter. Generally, a net retention rate over 120% is considered excellent. This rising popularity is helping Datadog increase its total addressable market opportunity from an estimated $38 billion in 2021 to $53 billion in 2025 – a 40% jump.
Once customers start using Datadog, it becomes very difficult for them to get away. It takes time, effort, and expense for companies to adopt its platform, and even more for them to replace it with a rival product. And in many cases, no competitor can easily meet all the customer needs that Datadog can; switching would require customers to adopt multiple other solutions. This one-stop-shop simplicity helps Datadog keep rivals at arm's length.
Datadog has built a resilient and scalable business model
The company's third-quarter results underscore the scalability and efficiency of Datadog's business model. Datadog's Q3 revenue grew 75% year over year to $270 million, accelerating from 67% year-over-year growth in Q2 and 51% growth in Q1 – and suggesting that Datadog's business is gaining momentum.
Incredibly, the company accomplished that growth on top of its customers' already higher COVID-19-fueled digital transformation spend in 2020. That's impressive for any company, but especially rare for one with annual recurring revenue over $1 billion. Datadog was able to achieve this high growth while spending less on sales and marketing as a percentage of revenue, down from 37% a year ago to 28% in Q3 2021.
Additionally, the company reduced its third-quarter net loss from $15 million a year ago to $5.5 million, just 2% of its quarterly revenue. Free cash flow, which measures how much cash a company has left over after paying its crucial bills, almost doubled to $57 million from $29 million a year ago.
Furthermore, the company's plowing more of that cash into research and development to continue its dominance in product innovation. R&D investment is up by almost 100% over the third quarter of 2020, reaching 41% of revenue, and giving Datadog's streak of lucrative new innovations plenty of fuel to continue.
Excellent long-term investment for patient investors
Datadog investors have priced huge future growth expectations into its shares. Any misstep in execution, or even a one-off miss in quarterly results, could send short-term prices plunging. Additionally, although Datadog has established a strong lead in the monitoring and observability race, competitors are not going to stay static. It is important to keep a close eye on competitors such as New Relic, Dynatrace, Elastic, and Splunk, and continue to review whether and how they may challenge Datadog's strong position.
Its customer-focused approach and culture of innovation let Datadog offer solutions its rivals can't touch. Investors interested in cloud computing with long time horizons should consider a small position as part of a diversified portfolio. If the company can continue its outstanding execution, it could be a big winner in the long term.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 16, 2021
Kaustubh Deshmukh (KD) owns Datadog and Okta. The Motley Fool owns and recommends Datadog, Elastic, Okta, and Splunk. The Motley Fool recommends New Relic. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) can't entirely prevent technology problems from happening, but its monitoring platform is really good at giving the people who run those systems proactive insights and early warnings to prevent such problems before they happen. The company also stated that its net dollar retention rate – how much more the average existing client spends from one year to the next – has topped 130% for the 17th consecutive quarter. It is important to keep a close eye on competitors such as New Relic, Dynatrace, Elastic, and Splunk, and continue to review whether and how they may challenge Datadog's strong position.
|
Datadog (NASDAQ: DDOG) can't entirely prevent technology problems from happening, but its monitoring platform is really good at giving the people who run those systems proactive insights and early warnings to prevent such problems before they happen. It works with every kind of technology businesses might use, collects information those businesses need to make sure their computer systems stay up and running, and presents that information in ways that the people running those systems can easily understand. After the company built its core infrastructure monitoring platform, it has continued to add important capabilities that cover more and more aspects of monitoring, as this graphic from a recent investor presentation demonstrates: Image source: Datadog earnings presentation.
|
Datadog (NASDAQ: DDOG) can't entirely prevent technology problems from happening, but its monitoring platform is really good at giving the people who run those systems proactive insights and early warnings to prevent such problems before they happen. Datadog's excellence in product innovation is expanding its market opportunity Consistent innovation helps Datadog stand out from the pack. Datadog has built a resilient and scalable business model The company's third-quarter results underscore the scalability and efficiency of Datadog's business model.
|
Datadog (NASDAQ: DDOG) can't entirely prevent technology problems from happening, but its monitoring platform is really good at giving the people who run those systems proactive insights and early warnings to prevent such problems before they happen. Making new products helps Datadog sell more of those offerings to new and existing customers: Total customers 17,500 13,100 34% Customers generating $100,000+ in annual recurring revenue 1,800 1,082 66% Using 2 or more products 77% 71% 11% Using 4 or more products 31% 20% 15% Source: Company earnings releases and transcripts.
|
f7f9f3f7-aad8-47b5-b6c1-d66fa8291db0
|
718778.0
|
2021-12-15 00:00:00 UTC
|
The Best Stocks to Invest $50,000 in Right Now
|
DDOG
|
https://www.nasdaq.com/articles/the-best-stocks-to-invest-%2450000-in-right-now
|
nan
|
nan
|
Over the past decade, the S&P 500 has risen in price by nearly 275%, not adjusting for inflation. It's a solid benchmark for stocks to be measured against, and this benchmark is even outpacing the normal performance of the S&P 500.
But two stocks have what it takes to crush this impressive benchmark over the next decade, and if you invest in these stocks you have the potential to see amazing returns. Here's why I think Upstart Holdings (NASDAQ: UPST) and Datadog (NASDAQ: DDOG) are two of the best places I see for money to go today.
Image source: Getty Images.
1. Upstart
Shares of Upstart have been on a roller-coaster ride recently. The company -- which is bringing a different approach to loan determination -- is up nearly 260% year to date, yet shares at one point were up over 750% year to date.
This is for good reason. The company is pairing machine learning and artificial intelligence with the loan determination process. The company evaluates 1,000 variables and over 10 million repayments to determine creditworthiness, and its variables range from employment to application interaction. This process is unique compared to traditional processes that have a few dozen variables and rely mainly on the FICO score.
Because of its new approach, many smaller banks that are trying to offer credit to a wider population have rapidly adopted Upstart. The company's customer count nearly tripled year to date, and the company's trailing-12-month volume on loan decisions increased 120% from the year-ago period to $8.8 billion.
With less than $9 billion in volume, Upstart's growth runway is extremely large. The company is targeting a $5 trillion market, and its investments in engineering & development and sales expenses will likely allow it to gain market share. What's better is that even after spending over $130 million on these two expense categories in the third quarter, the company was able to bring nearly $29 million to the bottom line.
The company is not cheap. Upstart is valued at 21 times sales, but when I find a profitable company that is seeing adoption at the rate Upstart is, I tend to be more willing to pay up. Mainly because the investment is likely to be worthwhile for future returns. The investments it is making, along with its rule-breaking solution, make me incredibly excited to hold Upstart for the next decade and beyond.
2. Datadog
Datadog's specialty is in monitoring and visibility. It allows its customers to monitor their entire cloud presence for performance, engagement, and security. This complete monitoring platform uses data from over 10 trillion events daily to recognize patterns and allow businesses to take actionable insights when something might be wrong with their cloud platforms.
As the company gets more customers and they use more products -- which gives Datadog more data -- Datadog can give more accurate insight into the problems its customers might have. This means that the more customers use Datadog, the more effective and useful it is to everyone.
Datadog has done an excellent job of attracting new users and bringing existing users deeper into its ecosystem. The company has roughly 17,500 customers, which grew 34% year over year, and the number of products per customer has substantially increased. Seventy-seven percent of customers used two or more products, and 31% used four or more in Q3, compared to 71% and 20% respectively in the year-ago quarter.
Where the company shines is its product stickiness. The company added 10 new products and features to its platform in Q3 alone, and the strong customer adoption has benefited Datadog. Its net retention rate is over 130%, and the number of customers spending over $100,000 grew 66% year over year in Q3 to 1,800. With this kind of relationship expansion, it would be incredibly hard for a customer to switch away from using Datadog because so much of its business is already entrenched in the platform.
The company sees a current market opportunity of $38 billion, but that is expected to grow to $53 billion by 2025. It wouldn't be surprising to see Datadog grow that even further. The company has launched 19 products since 2019, and that probably won't stop. All of those products it launched undoubtedly increased its addressable market, and if this continues, the company's opportunity could be much larger than $53 billion by 2025.
If Datadog can continue adding products and gain increased adoption from existing customers, I think this company could continue to explode over the next five years. Shares have already increased over 360% over the past five years, but if the company can maintain expanding its market and capitalizing on its competitive advantages, I believe that shares could increase another 360% or more over the next five years.
Find out why Upstart Holdings, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Upstart Holdings, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of November 10, 2021
Jamie Louko owns Datadog and Upstart Holdings, Inc. The Motley Fool owns and recommends Datadog and Upstart Holdings, 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.
|
Here's why I think Upstart Holdings (NASDAQ: UPST) and Datadog (NASDAQ: DDOG) are two of the best places I see for money to go today. With this kind of relationship expansion, it would be incredibly hard for a customer to switch away from using Datadog because so much of its business is already entrenched in the platform. All of those products it launched undoubtedly increased its addressable market, and if this continues, the company's opportunity could be much larger than $53 billion by 2025.
|
Here's why I think Upstart Holdings (NASDAQ: UPST) and Datadog (NASDAQ: DDOG) are two of the best places I see for money to go today. The company's customer count nearly tripled year to date, and the company's trailing-12-month volume on loan decisions increased 120% from the year-ago period to $8.8 billion. If Datadog can continue adding products and gain increased adoption from existing customers, I think this company could continue to explode over the next five years.
|
Here's why I think Upstart Holdings (NASDAQ: UPST) and Datadog (NASDAQ: DDOG) are two of the best places I see for money to go today. As the company gets more customers and they use more products -- which gives Datadog more data -- Datadog can give more accurate insight into the problems its customers might have. The company has roughly 17,500 customers, which grew 34% year over year, and the number of products per customer has substantially increased.
|
Here's why I think Upstart Holdings (NASDAQ: UPST) and Datadog (NASDAQ: DDOG) are two of the best places I see for money to go today. But two stocks have what it takes to crush this impressive benchmark over the next decade, and if you invest in these stocks you have the potential to see amazing returns. The company's customer count nearly tripled year to date, and the company's trailing-12-month volume on loan decisions increased 120% from the year-ago period to $8.8 billion.
|
f5447f19-904e-4ec5-9160-7a8eb08487db
|
718779.0
|
2021-12-14 00:00:00 UTC
|
Here’s What Advisors Need to Know About the Nasdaq 100 Changes
|
DDOG
|
https://www.nasdaq.com/articles/heres-what-advisors-need-to-know-about-the-nasdaq-100-changes
|
nan
|
nan
|
The Nasdaq 100 will be ushering in six new companies next Monday as six companies depart the top ranks, reported CNBC. Here’s a brief look at each of the newcomers and a list of the companies leaving.
Palo Alto Networks (PANW) is a cybersecurity company that offers both platform and cloud-based services and is the addition that investors are most excited about. The stock has risen more than 50% this year, outperforming the broader market and showing promise of continued growth.
“The network security side of the business, the cloud security side of the business, and the security operations side of the business, all those segments hadn’t had less than ten new major product releases over the last three fiscal years,” said Delano Saporu, founder of New Street Advisors. “That tells me that the company is doing a great job of keeping up with infrastructure and IT demands.”
Airbnb (ABNB), the company that made vacation rentals in existing homes more than just a trend, is also being added to the Nasdaq 100. The company hosts an online marketplace where users can find lodging and other tourist-related activities globally and is within an industry that is expected to grow alongside pandemic recovery.
Fortinet (FTNT) is another cybersecurity company joining the ranks of the tech-heavy index; the company both creates and sells cybersecurity solutions, including antivirus software, physical firewalls, intrusion prevention systems, and more.
Lucid Group (LCID) is a U.S. electric vehicle manufacturer that offers luxury EV options for consumers with its flagship car, the Lucid Air. Lucid also works in energy storage with batteries and original equipment manufacturing.
Zscaler (ZS) is a security cloud company that offers the Zero Trust Exchange platform and boasts over 150 data centers and customers in 185 countries. It provides companies a way to run their businesses securely via its cloud platform that offers security protocols specific to the company without requiring costly infrastructure.
Datadog (DDOG) is a company that offers cloud monitoring of servers and databases and any related apps and programs through its data analytics platform. It enables IT teams to calculate performance metrics and monitor their infrastructure and cloud services all through one tool.
Companies departing the Nasdaq 100 include Cerner, Fox, CDW, Check Point Software, Trip.com, and Incyte.
“Probably the industry pair that I think ultimately ends up helping the index’s performance is the addition of Palo Alto and the removal of Check Point Software. I think Palo Alto ends up doing better relative to the market, breaking to the upside,” said Ari Wald, head of technical analysis at Oppenheimer.
For more news, information, and strategy, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (DDOG) is a company that offers cloud monitoring of servers and databases and any related apps and programs through its data analytics platform. The company hosts an online marketplace where users can find lodging and other tourist-related activities globally and is within an industry that is expected to grow alongside pandemic recovery. Zscaler (ZS) is a security cloud company that offers the Zero Trust Exchange platform and boasts over 150 data centers and customers in 185 countries.
|
Datadog (DDOG) is a company that offers cloud monitoring of servers and databases and any related apps and programs through its data analytics platform. Palo Alto Networks (PANW) is a cybersecurity company that offers both platform and cloud-based services and is the addition that investors are most excited about. “The network security side of the business, the cloud security side of the business, and the security operations side of the business, all those segments hadn’t had less than ten new major product releases over the last three fiscal years,” said Delano Saporu, founder of New Street Advisors.
|
Datadog (DDOG) is a company that offers cloud monitoring of servers and databases and any related apps and programs through its data analytics platform. “The network security side of the business, the cloud security side of the business, and the security operations side of the business, all those segments hadn’t had less than ten new major product releases over the last three fiscal years,” said Delano Saporu, founder of New Street Advisors. Fortinet (FTNT) is another cybersecurity company joining the ranks of the tech-heavy index; the company both creates and sells cybersecurity solutions, including antivirus software, physical firewalls, intrusion prevention systems, and more.
|
Datadog (DDOG) is a company that offers cloud monitoring of servers and databases and any related apps and programs through its data analytics platform. It provides companies a way to run their businesses securely via its cloud platform that offers security protocols specific to the company without requiring costly infrastructure. Companies departing the Nasdaq 100 include Cerner, Fox, CDW, Check Point Software, Trip.com, and Incyte.
|
fdd1a422-672b-43ae-a3b2-0db25832cdda
|
718780.0
|
2021-12-14 00:00:00 UTC
|
Stock Market Today: Tech Tumbles on Another Weak Day for Stocks
|
DDOG
|
https://www.nasdaq.com/articles/stock-market-today%3A-tech-tumbles-on-another-weak-day-for-stocks
|
nan
|
nan
|
The market sagged again Tuesday ahead of tomorrow's conclusion of the latest Federal Open Market Committee meeting, with technology stocks showing the greatest weakness.
The Labor Department delivered another sign of surging inflation today, announcing that wholesale prices jumped 9.6% year-over-year in November. That number was ahead of economist expectations for 9.2% and marked the fastest rate since the department started keeping tabs in November 2010.
SEE MORE The 22 Best Stocks to Buy for 2022
Several experts believe that all but guarantees the Fed will announce a faster tapering of asset purchases, which in turn is raising fears that interest-rate hikes could follow soon.
"Our base case is that the Fed doubles its pace of QE tapering which would, in theory, put the March meeting in play for policy rate liftoff," says Lauren Goodwin, economist and portfolio strategist at New York Life Investments. "We also expect the Fed's median 'dots' to show rate hikes earlier in 2022, with likely two hikes next year."
"Yet, bond yields don't seem to be worried about inflation sticking around as the 10-year [Treasury] sits 20 basis points below pre-Thanksgiving levels," notes Lindsey Bell, chief money and markets strategist at Ally Invest. "While the Fed is more heavily leaning on inflation readings for cues on pace and timing of its monetary unwind, I believe the greater predictor of both inflation and Fed policy will be the job market."
Still, the news weighed on the rate-sensitive tech sector (-1.6%), as did a note from JPMorgan analyst Sterling Auty, who lowered his ratings on Adobe (ADBE, -6.6%), Zscaler (ZS, -7.8%) and Datadog (DDOG, -6.5%), among other software stocks. Microsoft (MSFT, -3.3%) and Intuit (INTU, -4.4%) also weighed on the sector.
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
All that put the greatest burden on the Nasdaq Composite, which was off 1.1% to 15,237. The S&P 500 dropped a more modest 0.8% to 4,634, and the Dow Jones Industrial Average escaped with a mere 0.3% decline to 35,544.
Other news in thestock market today
The small-cap Russell 2000 sank again, off 1.0% to 2,159.
U.S. crude oil futures fell 0.8% to finish at $70.73 per barrel.
Gold futures shed 0.9% to settle at $1,772.30 an ounce.
Bitcoin prices rebounded, however, gaining 2.4% to $47,805.73. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Beyond Meat (BYND) jumped 9.3% after Piper Sandler analyst Michael Lavery upgraded the stock to Neutral from Underweight, the equivalents of Hold and Sell, respectively. The move amid Lavery's expectations that the plant-based protein-maker could launch its McPlant burger – currently being tested in eight McDonald's (MCD) locations across the U.S. – nationwide beginning in March, which is earlier than previously expected. Neither Beyond Meat nor McDonald's has commented.
MGM Resorts International (MGM) gained 2.2% after the casino operator said it is selling the operations of its Mirage casino on the Las Vegas Strip to Hard Rock International for roughly $1.1 billion. The sale is forecast to close in the second half of next year, pending regulatory approval.
Diverisfied Portfolios for Dirt-Cheap Prices
Coming up is a holiday tradition that people from all walks of life across this great nation participate in every year: getting their investment lives in order.
The end of the year is a popular time for people to re-evaluate their portfolios, especially 401(k)'ers who tend to check in once a year – hence our 401(k) fund series, which looks at major fund families such as Fidelity and Vanguard that boast oodles of products that are popular retirement-plan funds.
But other fund families deserve watching, too, especially if you're investing in a brokerage, IRA or another vehicle where you can access mutual funds and exchange-traded funds (ETFs) alike.
Today, we take a look at some top funds from Charles Schwab – a provider that has built itself a name in recent years for its ultra-competitive low costs. Read on as we highlight 10 names that seem built to handle what 2022 has to offer.
SEE MORE Best Online Brokers, 2021
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Still, the news weighed on the rate-sensitive tech sector (-1.6%), as did a note from JPMorgan analyst Sterling Auty, who lowered his ratings on Adobe (ADBE, -6.6%), Zscaler (ZS, -7.8%) and Datadog (DDOG, -6.5%), among other software stocks. "Our base case is that the Fed doubles its pace of QE tapering which would, in theory, put the March meeting in play for policy rate liftoff," says Lauren Goodwin, economist and portfolio strategist at New York Life Investments. "Yet, bond yields don't seem to be worried about inflation sticking around as the 10-year [Treasury] sits 20 basis points below pre-Thanksgiving levels," notes Lindsey Bell, chief money and markets strategist at Ally Invest.
|
Still, the news weighed on the rate-sensitive tech sector (-1.6%), as did a note from JPMorgan analyst Sterling Auty, who lowered his ratings on Adobe (ADBE, -6.6%), Zscaler (ZS, -7.8%) and Datadog (DDOG, -6.5%), among other software stocks. The Labor Department delivered another sign of surging inflation today, announcing that wholesale prices jumped 9.6% year-over-year in November. "We also expect the Fed's median 'dots' to show rate hikes earlier in 2022, with likely two hikes next year."
|
Still, the news weighed on the rate-sensitive tech sector (-1.6%), as did a note from JPMorgan analyst Sterling Auty, who lowered his ratings on Adobe (ADBE, -6.6%), Zscaler (ZS, -7.8%) and Datadog (DDOG, -6.5%), among other software stocks. "Our base case is that the Fed doubles its pace of QE tapering which would, in theory, put the March meeting in play for policy rate liftoff," says Lauren Goodwin, economist and portfolio strategist at New York Life Investments. "While the Fed is more heavily leaning on inflation readings for cues on pace and timing of its monetary unwind, I believe the greater predictor of both inflation and Fed policy will be the job market."
|
Still, the news weighed on the rate-sensitive tech sector (-1.6%), as did a note from JPMorgan analyst Sterling Auty, who lowered his ratings on Adobe (ADBE, -6.6%), Zscaler (ZS, -7.8%) and Datadog (DDOG, -6.5%), among other software stocks. "Our base case is that the Fed doubles its pace of QE tapering which would, in theory, put the March meeting in play for policy rate liftoff," says Lauren Goodwin, economist and portfolio strategist at New York Life Investments. "We also expect the Fed's median 'dots' to show rate hikes earlier in 2022, with likely two hikes next year."
|
e76db96a-205b-42fd-bee5-929ab8de52b1
|
718781.0
|
2021-12-14 00:00:00 UTC
|
Why Datadog, Zscaler, and Cloudflare Sank by Double-Digits Today
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-zscaler-and-cloudflare-sank-by-double-digits-today
|
nan
|
nan
|
What happened
Shares of cloud software companies Datadog (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and Cloudflare (NYSE: NET) were falling on Tuesday in another rough day for tech stocks. As of 2 p.m. ET, these three were down 10.2%, 11.5%, and 12%, respectively.
Tuesday was a bad day for high-multiple software-as-a-service stocks more broadly, as investors feared rising interest rates. Yet it was especially bad for these three, as they were unfortunately part of a sector-wide analyst downgrade at J.P. Morgan.
Image source: Getty Images.
So what
In a wide-ranging note at the bank, J.P. Morgan software analyst Sterling Auty made new calls across the sector. Based on concerns over high valuations and the prospect for slowing growth as these companies lap the pandemic-year boom, Auty cut ratings and lowered price targets across the space. A deluge of new software IPOs over the past year has also increased the supply of investor options, he noted, which could lead to fewer investor dollars chasing each individual name.
While he maintained some stocks at buy, others he downgraded to neutral, such as large-cap favorite Adobe, which is also having a rough day.
Unfortunately for Datadog, Zscaler, and Cloudflare, they were demoted to the dreaded underweight rating. Likely, valuation plays a big part; Datadog trades at 61 times sales, Zscaler trades at 55 times sales, and Cloudflare trades at a whopping 73 times sales. These are enormously high valuations, and we seem to be entering an environment in which investors are starting to focus on intrinsic value as rising inflation and interest rates eat into perceived value of future profits, hurting profitless growth stocks.
These stocks also saw tremendous revenue growth during the pandemic that may be hard to match going forward. The deadly combination of slowing growth and higher discounting of future cash flows is leading to a big de-rating, even though each company's business fundamentals look quite strong today. Auty noted he is cautious on these types of stocks following the tremendous 40% plunge in pandemic-era darling DocuSign (NASDAQ: DOCU) following its recent earnings report that disclosed slowing billings growth and underwhelming guidance.
Now what
All hope may not be lost. Even though each stock received an underweight rating today, all three of Auty's new price targets are still above where these stocks trade after their rough day. He lowered his Datadog price target to $195 versus a price of $155 today, lowered his target on Zscaler to $320 versus a price of $273, and lowered his target on Cloudflare to $144 versus a current price of $127.50.
Analysts usually give price targets for a year out, but these buoyant targets suggest Auty still likes all three companies' business fundamentals. However, it's normally the tone and direction of analyst notes that capture investor attention, especially in a downbeat environment like the one we're in today. Hence, all are trading lower.
Given the big slide all three stocks have had, long-term holders and believers should probably continue to hold through this difficult period; after all, Auty's price targets do offer some hope. However, it's a trickier proposition for those who are looking to enter these types of stocks. All three are still expensive, and it's unclear how quickly interest rates will rise in the next year. I'm not sure what will change sentiment in the weeks ahead, so this malaise in high-growth stocks could last for some time.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein owns JPMorgan Chase. His clients may own shares of the companies mentioned. The Motley Fool owns and recommends Cloudflare, Inc., Datadog, DocuSign, and Zscaler. The Motley Fool recommends 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.
|
What happened Shares of cloud software companies Datadog (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and Cloudflare (NYSE: NET) were falling on Tuesday in another rough day for tech stocks. Based on concerns over high valuations and the prospect for slowing growth as these companies lap the pandemic-year boom, Auty cut ratings and lowered price targets across the space. These are enormously high valuations, and we seem to be entering an environment in which investors are starting to focus on intrinsic value as rising inflation and interest rates eat into perceived value of future profits, hurting profitless growth stocks.
|
What happened Shares of cloud software companies Datadog (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and Cloudflare (NYSE: NET) were falling on Tuesday in another rough day for tech stocks. Likely, valuation plays a big part; Datadog trades at 61 times sales, Zscaler trades at 55 times sales, and Cloudflare trades at a whopping 73 times sales. He lowered his Datadog price target to $195 versus a price of $155 today, lowered his target on Zscaler to $320 versus a price of $273, and lowered his target on Cloudflare to $144 versus a current price of $127.50.
|
What happened Shares of cloud software companies Datadog (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and Cloudflare (NYSE: NET) were falling on Tuesday in another rough day for tech stocks. Even though each stock received an underweight rating today, all three of Auty's new price targets are still above where these stocks trade after their rough day. He lowered his Datadog price target to $195 versus a price of $155 today, lowered his target on Zscaler to $320 versus a price of $273, and lowered his target on Cloudflare to $144 versus a current price of $127.50.
|
What happened Shares of cloud software companies Datadog (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and Cloudflare (NYSE: NET) were falling on Tuesday in another rough day for tech stocks. These are enormously high valuations, and we seem to be entering an environment in which investors are starting to focus on intrinsic value as rising inflation and interest rates eat into perceived value of future profits, hurting profitless growth stocks. Even though each stock received an underweight rating today, all three of Auty's new price targets are still above where these stocks trade after their rough day.
|
9749f275-bb46-4a86-8e7f-42dea92aa398
|
718782.0
|
2021-12-14 00:00:00 UTC
|
Why I'm Selling Splunk Stock and Buying Dynatrace and Elastic Instead
|
DDOG
|
https://www.nasdaq.com/articles/why-im-selling-splunk-stock-and-buying-dynatrace-and-elastic-instead
|
nan
|
nan
|
Things just took another turn for the worse for Splunk (NASDAQ: SPLK) stock. Already struggling as the company tries to manage its software platform's transition to the cloud, Doug Merritt -- the CEO since 2015 and who oversaw the company's growth from $450 million a year to nearly $3 billion today -- suddenly resigned in November. The stock price is now down nearly 35% in 2021 and has fallen all the way back to where it was in 2018 and 2019.
The recent executive leadership shake-up has pushed me to put my Splunk stock on the chopping block. It's been a profitable journey overall, as I've been a shareholder for years, but Splunk has fallen behind some of its peers in the data analytics and cloud observability space. Here's why I'm adding Elastic (NYSE: ESTC) stock to my holdings and buying more Dynatrace (NYSE: DT) to replace my Splunk holdings.
Image source: Getty Images.
Where did this drama begin?
Splunk's "big data" software, which helps organizations sort and make sense of their operations and data, has been around since the early 2000s. As such, it predates the cloud computing era -- and as more companies make the switch to a more modern IT approach, Splunk has needed to follow suit and adjust the way it delivers its software, improve on its capabilities, and update the way it bills customers. It took a while for Splunk to finally make the jump, but this transition from legacy to cloud software is underway.
However, the transition has created a disconnect between the company's actual reported revenue and underlying cloud momentum. In Q3 fiscal 2022 (the three months ended Oct. 31, 2021), total revenue was up only 19% year over year to $665 million, even though cloud revenue was up 68% to $243 million. Basically, lots of customers are simply switching from old to new Splunk software, and with just over one-third of revenue cloud-based, this journey will still take some time to unfold.
Don't get me wrong, I think there's serious value in Splunk stock for investors that can patiently wait it out for a couple more years. But the departure of Merritt (which comes just months after Splunk accepted a $1 billion investment from private equity firm Silver Lake over the summer of 2021) is just one extra thread to this drama I'm not interested in following. Additionally, the initial outlook for next year's annualized recurring revenue (ARR, a combination of cloud and legacy revenue) implies 25% year-over-year growth -- not bad, but a slowdown from the recent pace of closer to 40% ARR growth.
Thus I've decided to watch from the sidelines for now, even though Splunk could be a long-term bargain at just seven times trailing 12-month revenue.
Two newer promising cloud observability stocks
In contrast to Splunk stock's dysfunctional behavior over the last few years, Elastic and Dynatrace have continued to grow -- both the businesses themselves and their share prices. Elastic is much further along in building its cloud-first software suite. And Dynatrace, after undergoing a total overhaul of its own under the purview of a private equity firm, is a cloud computing observability suite pure-play.
Because cloud software is a more significant portion of Elastic and Dynatrace revenue, both are growing much faster than Splunk (Elastic revenue was up 42% year over year in its last quarter, while Dynatrace grew 34%). Of course, neither company is perfect. Elastic isn't profitable yet, although that's mostly by design as it spends to promote growth. And Dynatrace's longtime CEO John Van Siclen just retired -- although Van Siclen will remain at Dynatrace in an advisory role until May 2022.
Elastic and Dynatrace's higher pace of growth and more focused attention on the cloud have also earned them a higher premium than Splunk stock. But I also view Elastic as something of a value considering its far higher pace of expansion, and Dynatrace is a leader in modern cloud infrastructure software for large enterprises.
Data by YCharts.
Investor takeaway
This is a tough decision for me. I tend to give my stocks ample room to run and allow plenty of time for them to fix issues. But Splunk still has a long way to go on this front, and its peers in data management and cloud observability (Datadog (NASDAQ: DDOG) is another one in this space I'm passing on for the time being) are quickly catching up to it. I plan on selling Splunk and reallocating to Elastic, and adding to my Dynatrace holdings before 2021 comes to a close.
10 stocks we like better than Splunk
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 Splunk wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Nicholas Rossolillo and his clients own Dynatrace, Inc. and Splunk. The Motley Fool owns and recommends 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.
|
But Splunk still has a long way to go on this front, and its peers in data management and cloud observability (Datadog (NASDAQ: DDOG) is another one in this space I'm passing on for the time being) are quickly catching up to it. As such, it predates the cloud computing era -- and as more companies make the switch to a more modern IT approach, Splunk has needed to follow suit and adjust the way it delivers its software, improve on its capabilities, and update the way it bills customers. But the departure of Merritt (which comes just months after Splunk accepted a $1 billion investment from private equity firm Silver Lake over the summer of 2021) is just one extra thread to this drama I'm not interested in following.
|
But Splunk still has a long way to go on this front, and its peers in data management and cloud observability (Datadog (NASDAQ: DDOG) is another one in this space I'm passing on for the time being) are quickly catching up to it. Here's why I'm adding Elastic (NYSE: ESTC) stock to my holdings and buying more Dynatrace (NYSE: DT) to replace my Splunk holdings. And Dynatrace, after undergoing a total overhaul of its own under the purview of a private equity firm, is a cloud computing observability suite pure-play.
|
But Splunk still has a long way to go on this front, and its peers in data management and cloud observability (Datadog (NASDAQ: DDOG) is another one in this space I'm passing on for the time being) are quickly catching up to it. Two newer promising cloud observability stocks In contrast to Splunk stock's dysfunctional behavior over the last few years, Elastic and Dynatrace have continued to grow -- both the businesses themselves and their share prices. Because cloud software is a more significant portion of Elastic and Dynatrace revenue, both are growing much faster than Splunk (Elastic revenue was up 42% year over year in its last quarter, while Dynatrace grew 34%).
|
But Splunk still has a long way to go on this front, and its peers in data management and cloud observability (Datadog (NASDAQ: DDOG) is another one in this space I'm passing on for the time being) are quickly catching up to it. It's been a profitable journey overall, as I've been a shareholder for years, but Splunk has fallen behind some of its peers in the data analytics and cloud observability space. Because cloud software is a more significant portion of Elastic and Dynatrace revenue, both are growing much faster than Splunk (Elastic revenue was up 42% year over year in its last quarter, while Dynatrace grew 34%).
|
9f9c6466-6824-4959-9eaf-623665458e8e
|
718783.0
|
2021-12-14 00:00:00 UTC
|
FDN, NFLX, ABNB, DDOG: ETF Outflow Alert
|
DDOG
|
https://www.nasdaq.com/articles/fdn-nflx-abnb-ddog%3A-etf-outflow-alert
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $67.6 million dollar outflow -- that's a 0.7% decrease week over week (from 44,800,002 to 44,500,002). Among the largest underlying components of FDN, in trading today Netflix Inc (Symbol: NFLX) is off about 1.6%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is lower by about 7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average:
Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $222.56. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of FDN, in trading today Netflix Inc (Symbol: NFLX) is off about 1.6%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is lower by about 7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $67.6 million dollar outflow -- that's a 0.7% decrease week over week (from 44,800,002 to 44,500,002). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of FDN, in trading today Netflix Inc (Symbol: NFLX) is off about 1.6%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is lower by about 7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $222.56. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
Among the largest underlying components of FDN, in trading today Netflix Inc (Symbol: NFLX) is off about 1.6%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is lower by about 7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the First Trust Dow Jones Internet Index Fund (Symbol: FDN) where we have detected an approximate $67.6 million dollar outflow -- that's a 0.7% decrease week over week (from 44,800,002 to 44,500,002). For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $222.56.
|
Among the largest underlying components of FDN, in trading today Netflix Inc (Symbol: NFLX) is off about 1.6%, Airbnb Inc (Symbol: ABNB) is off about 1.9%, and Datadog Inc (Symbol: DDOG) is lower by about 7%. For a complete list of holdings, visit the FDN Holdings page » The chart below shows the one year price performance of FDN, versus its 200 day moving average: Looking at the chart above, FDN's low point in its 52 week range is $202.4999 per share, with $252.86 as the 52 week high point — that compares with a last trade of $222.56. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
53acc585-0c64-4684-8b55-5bfeb2d75976
|
718784.0
|
2021-12-14 00:00:00 UTC
|
US STOCKS-Futures fall after PPI data as Fed meet looms
|
DDOG
|
https://www.nasdaq.com/articles/us-stocks-futures-fall-after-ppi-data-as-fed-meet-looms
|
nan
|
nan
|
By Shreyashi Sanyal and Anisha Sircar
Dec 14 (Reuters) - U.S. stock index futures fell on Tuesday after data showed producer prices increased more than expected in November and ahead of a potential decision on faster tapering from the Federal Reserve this week.
The fast-spreading Omicron coronavirus variant also tamped down the mood after the S&P 500 index .SPX hit an all-time closing high late last week.
Megacap technology and communications stocks, including Meta Platforms FB.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O, fell between 0.6% and 2% in premarket trading.
"People are trying to create an environment ... to slow the spread or the severity (of Omicron), but also people who are well and want to participate in the economy. So there's a push and a pull at play here," said Tom Martin, senior portfolio manager at Globalt.
"Investors want to be positioned neutrally till the end of the year. They don't want to do a lot of trading between now and then as long as there's nothing jarring happening."
Apple Inc AAPL.O edged 0.2% lower, falling the least among its heavyweight peers, as it stayed on track to become the world's first $3 trillion company in market value.
Data from the Labor Department showed the producer price index (PPI) for final demand in the 12 months through November shot up 9.6%, clocking its largest gain since November 2010 and followed an 8.8% increase in October.
Market participants are expecting a hawkish tone from the Fed at the end of its two-day meeting on Wednesday. The U.S. central bank will likely signal a faster wind-down of asset purchases, and thus, a quicker start to interest rate hikes in order to contain the rapid rise in prices.
A Reuters poll of economists sees the central bank hiking interest rates from near zero to 0.25%-0.50% in the third quarter of next year, followed by another in the fourth quarter.
"The central bank is set to announce an acceleration of tapering from January 2022, with consensus expecting the pace to double in speed, in order to counter inflation," Lukman Otunuga, senior research analyst at FXTM, wrote in a client note.
"Traders are currently pricing in a 73% probability of at least one rate hike by early May 2022 and fully pricing a 25-basis point hike by mid-June 2022."
At 8:39 a.m. ET, Dow e-minis 1YMcv1 were down 66 points, or 0.19%, S&P 500 e-minis EScv1 were down 23 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were down 149.25 points, or 0.93%.
Software tech firms Datadog DDOG.O, Akamai Tech AKAM.O, and Cloudflare NET.N dropped between 3.0% and 6.0% after J.P.Morgan downgraded the stocks.
(Reporting by Shreyashi Sanyal and Anisha Sircar in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Software tech firms Datadog DDOG.O, Akamai Tech AKAM.O, and Cloudflare NET.N dropped between 3.0% and 6.0% after J.P.Morgan downgraded the stocks. By Shreyashi Sanyal and Anisha Sircar Dec 14 (Reuters) - U.S. stock index futures fell on Tuesday after data showed producer prices increased more than expected in November and ahead of a potential decision on faster tapering from the Federal Reserve this week. The U.S. central bank will likely signal a faster wind-down of asset purchases, and thus, a quicker start to interest rate hikes in order to contain the rapid rise in prices.
|
Software tech firms Datadog DDOG.O, Akamai Tech AKAM.O, and Cloudflare NET.N dropped between 3.0% and 6.0% after J.P.Morgan downgraded the stocks. By Shreyashi Sanyal and Anisha Sircar Dec 14 (Reuters) - U.S. stock index futures fell on Tuesday after data showed producer prices increased more than expected in November and ahead of a potential decision on faster tapering from the Federal Reserve this week. Data from the Labor Department showed the producer price index (PPI) for final demand in the 12 months through November shot up 9.6%, clocking its largest gain since November 2010 and followed an 8.8% increase in October.
|
Software tech firms Datadog DDOG.O, Akamai Tech AKAM.O, and Cloudflare NET.N dropped between 3.0% and 6.0% after J.P.Morgan downgraded the stocks. By Shreyashi Sanyal and Anisha Sircar Dec 14 (Reuters) - U.S. stock index futures fell on Tuesday after data showed producer prices increased more than expected in November and ahead of a potential decision on faster tapering from the Federal Reserve this week. "The central bank is set to announce an acceleration of tapering from January 2022, with consensus expecting the pace to double in speed, in order to counter inflation," Lukman Otunuga, senior research analyst at FXTM, wrote in a client note.
|
Software tech firms Datadog DDOG.O, Akamai Tech AKAM.O, and Cloudflare NET.N dropped between 3.0% and 6.0% after J.P.Morgan downgraded the stocks. By Shreyashi Sanyal and Anisha Sircar Dec 14 (Reuters) - U.S. stock index futures fell on Tuesday after data showed producer prices increased more than expected in November and ahead of a potential decision on faster tapering from the Federal Reserve this week. The fast-spreading Omicron coronavirus variant also tamped down the mood after the S&P 500 index .SPX hit an all-time closing high late last week.
|
a5ed8dc1-4ce3-4092-a95a-8c16ab7b9fe5
|
718785.0
|
2021-12-13 00:00:00 UTC
|
Watch These 12 Nasdaq Stocks in 2022
|
DDOG
|
https://www.nasdaq.com/articles/watch-these-12-nasdaq-stocks-in-2022
|
nan
|
nan
|
The stock market moved lower at midday on Monday, pulling back from some of its gains over the past week. As of 12:45 p.m. ET, the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 146 points, or almost 1%.
Passive investing is a big part of what drives the stock market, and when it comes to Nasdaq stocks, the Nasdaq-100 index is among the most widely followed. Nasdaq made its announcement regarding the annual changes to the Nasdaq-100 over the weekend, and the implications for the stocks it added and the ones that it replaced are huge heading into 2022.
Image source: Getty Images.
The Nasdaq-100's annual reconstitution is based entirely on the market capitalization of the companies involved. Therefore, with some notable exceptions, stocks that have done well tend to replace stocks that haven't been able to keep pace. Below, we'll look at what happened and what to expect from the 12 Nasdaq stocks that got affected by the changes to the index.
Who's in
As you'd expect with the Nasdaq, tech stocks were well represented among the additions. Fortinet (NASDAQ: FTNT), Datadog (NASDAQ: DDOG), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) all got invitations to join the Nasdaq-100, with market caps between $40 billion and $60 billion. It was particularly interesting to see three companies so closely tied to cybersecurity and threat protection get the nod all at the same time, but that highlights just how important those services have become in light of the acceleration in digital adoption in the past year. Datadog's data monitoring and analytics have also played a key role in helping businesses adapt to the changing environment.
By far the largest of the stocks to join the index was Airbnb (NASDAQ: ABNB), which went public right around the time last year's reconstitution happened. With a market cap above $110 billion, the disruptive accommodations provider has held up reasonably well even amid ongoing challenges from the COVID-19 pandemic.
Finally, electric vehicle start-up Lucid Group (NASDAQ: LCID) also made the cut. Lucid boasts a $60 billion market cap and has also gone public recently, leading a group of companies looking to stake their claim in the fast-growing EV market.
Who's out
Making room for these newcomers were six stocks that had seen mixed performance over the past year. In tech, perhaps the most surprising company headed out the door is IT services provider CDW (NASDAQ: CDW), whose stock has risen nearly 50% over the past 12 months. Nevertheless, with a market cap of just $26 billion, that just wasn't enough to keep the company in. Check Point Software Technologies (NASDAQ: CHKP), meanwhile, had seen its stock fall 8%, failing to keep pace with its fellow cybersecurity peers.
The other four companies getting the boot were diversely spaced across industries. Cerner (NASDAQ: CERN) is technically a healthcare company, although its information management systems show its tech-heavy nature. Media giant Fox (NASDAQ: FOXA) (NASDAQ: FOX) was removed, as was online travel services provider Trip.com Group (NASDAQ: TCOM) and biotech company Incyte (NASDAQ: INCY).
What to watch
The interesting thing to consider about these 12 stocks is the extent to which the Nasdaq's decision reflects past wins rather than future promise. For instance, the Dow Jones Industrial Average (DJINDICES: ^DJI) is notorious for dropping companies that go on to outperform the stocks that they choose. This is often because the companies that get kicked out of the Dow tend to be solid value plays, with depressed share prices but blue-chip status to provide a foundation for a recovery. Meanwhile, companies that get added to the Dow are on high notes that leave them open for disappointment later.
In 2022, the Nasdaq-100 will look a lot different, and it'll be counting on its six new additions to outperform the stocks it left behind. Shareholders might have a different perspective, though, and that should have you watching all 12 of these stocks over the next year.
10 stocks we like better than Fortinet
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 Fortinet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Dan Caplinger owns Datadog. The Motley Fool owns and recommends Airbnb, Inc., Datadog, Incyte, Palo Alto Networks, and Zscaler. The Motley Fool recommends Cerner, Fortinet, and Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fortinet (NASDAQ: FTNT), Datadog (NASDAQ: DDOG), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) all got invitations to join the Nasdaq-100, with market caps between $40 billion and $60 billion. It was particularly interesting to see three companies so closely tied to cybersecurity and threat protection get the nod all at the same time, but that highlights just how important those services have become in light of the acceleration in digital adoption in the past year. Check Point Software Technologies (NASDAQ: CHKP), meanwhile, had seen its stock fall 8%, failing to keep pace with its fellow cybersecurity peers.
|
Fortinet (NASDAQ: FTNT), Datadog (NASDAQ: DDOG), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) all got invitations to join the Nasdaq-100, with market caps between $40 billion and $60 billion. In tech, perhaps the most surprising company headed out the door is IT services provider CDW (NASDAQ: CDW), whose stock has risen nearly 50% over the past 12 months. The Motley Fool owns and recommends Airbnb, Inc., Datadog, Incyte, Palo Alto Networks, and Zscaler.
|
Fortinet (NASDAQ: FTNT), Datadog (NASDAQ: DDOG), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) all got invitations to join the Nasdaq-100, with market caps between $40 billion and $60 billion. Passive investing is a big part of what drives the stock market, and when it comes to Nasdaq stocks, the Nasdaq-100 index is among the most widely followed. Media giant Fox (NASDAQ: FOXA) (NASDAQ: FOX) was removed, as was online travel services provider Trip.com Group (NASDAQ: TCOM) and biotech company Incyte (NASDAQ: INCY).
|
Fortinet (NASDAQ: FTNT), Datadog (NASDAQ: DDOG), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) all got invitations to join the Nasdaq-100, with market caps between $40 billion and $60 billion. Nasdaq made its announcement regarding the annual changes to the Nasdaq-100 over the weekend, and the implications for the stocks it added and the ones that it replaced are huge heading into 2022. By far the largest of the stocks to join the index was Airbnb (NASDAQ: ABNB), which went public right around the time last year's reconstitution happened.
|
ab78ec9a-5fd2-4d7e-bf0d-f4657f758343
|
718786.0
|
2021-12-10 00:00:00 UTC
|
Want to Get Richer? 2 Innovative Growth Stocks to Buy and Hold
|
DDOG
|
https://www.nasdaq.com/articles/want-to-get-richer-2-innovative-growth-stocks-to-buy-and-hold
|
nan
|
nan
|
You only need two things to build life-changing wealth: a diversified portfolio of high-quality stocks, and a long-term mindset. The easiest way to accomplish that is with an exchange traded fund (ETF), especially one that tracks the S&P 500. You benefit from instant diversification, and you don't have to spend time doing research.
That being said, if you enjoy learning about individual companies and you're willing to put in the work, you could generate market-beating returns. And beating the market, even by a percentage point or two, could add thousands or even tens of thousands of dollars to your portfolio in the long run.
Datadog (NASDAQ: DDOG) and Axon Enterprise (NASDAQ: AXON) have beat the S&P 500 over the last two years, and both are well positioned to maintain that trend over the coming decade. Here's what you should know.
Image source: Getty Images.
1. Datadog
Datadog specializes in monitoring and analytics. Its platform integrates data from applications, networks, and infrastructure across private data centers and pubic clouds to help clients identify performance and security issues. Datadog processes over 10 trillion events each day, and leans on artificial intelligence to make sense of that data and deliver actionable insights in real time.
Diving deeper, Datadog breaks down silos between development, security, and operations teams, helping them collaborate more effectively. That enables organizations to prevent (or quickly resolve) technology problems, while accelerating their ability to execute on digital transformation initiatives. In turn, each new system (and each new client) creates more data, sharpening Datadog's AI models over time.
That virtuous cycle has helped the company keep its retention rate above 130% for the last 16 quarters. In other words, its software platform is very sticky, because the average customer spends at least 30% more each year.
Not surprisingly, that loyalty has translated into solid financial results.
METRIC
Q3 2020 (TTM)
Q3 2021 (TTM)
CHANGE
Revenue
$539.6 million
$880.1 million
63%
Free cash flow
$77.4 million
$160.5 million
107%
Source: YCharts. TTM = trailing-12-months.
Looking ahead, Datadog is well positioned to grow its business. Currently, management puts its market opportunity at $38 billion, but that figure should rise to $53 billion by 2025 as enterprises continue to spend aggressively on digital transformation. More importantly, the breadth of Datadog's product portfolio and the depth of its data sets differentiate it from rivals, and the company's clockwork delivery of innovative new products should keep it ahead of the competition. That's why this growth stock is a smart buy right now.
2. Axon Enterprise
Axon's mission is to protect life. The company's portfolio includes a range of hardware, software, and sensors designed to help law enforcement and public safety personnel work more productively. In 1993, the company started with TASER devices, and it's still the market leader in that industry -- but its business has expanded substantially since then.
Today, Axon sells body cameras, in-car fleet cameras, and drone-mounted aerial cameras, all of which feed data to Axon Respond, a real-time situational awareness platform that allows dispatchers, first responders, and police commanders to coordinate and monitor personnel in the field. Axon also provides cloud-based digital evidence management (DEM) software to simplify data storage, and records management software (RMS) that integrates video to accelerate report writing. Collectively, those solutions mean officers spend less time on administrative tasks, and more time protecting their communities.
Due to its success in the TASER industry, Axon works with 94% of law enforcement agencies in the U.S., and it's gaining traction in a growing number of adjacent markets: international law enforcement, domestic government and military, and departments of correction. Collectively, those relationships have helped Axon extend its leadership to software and sensors, and that strong competitive position has translated into impressive financial results.
METRIC
Q3 2020 (TTM)
Q3 2021 (TTM)
CHANGE
Revenue
$626.7 million
$871.9 million
39%
Free cash flow
($20.1 million)
$102.6 million
N/A
Source: YCharts. TTM = trailing-12-months.
During the third quarter, Axon posted a software revenue retention rate of 119%, which means the average customer spent 19% more over the past year, evidencing the stickiness of its products. The company also noted several customers wins during the quarter, including the Gujarat State Police in India, the Toronto Police Service, and the Scottish government, as well as a number of upsells with police departments in the U.S.
Going forward, shareholders should look for Axon to maintain that momentum. The company puts its market opportunity at $52 billion, and management is clearly capable of growing the business. That's why this stock looks like a smart long-term investment.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Trevor Jennewine owns Axon Enterprise. The Motley Fool owns and recommends Axon Enterprise 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.
|
Datadog (NASDAQ: DDOG) and Axon Enterprise (NASDAQ: AXON) have beat the S&P 500 over the last two years, and both are well positioned to maintain that trend over the coming decade. Datadog processes over 10 trillion events each day, and leans on artificial intelligence to make sense of that data and deliver actionable insights in real time. The company's portfolio includes a range of hardware, software, and sensors designed to help law enforcement and public safety personnel work more productively.
|
Datadog (NASDAQ: DDOG) and Axon Enterprise (NASDAQ: AXON) have beat the S&P 500 over the last two years, and both are well positioned to maintain that trend over the coming decade. Revenue $539.6 million $880.1 million 63% Free cash flow $77.4 million $160.5 million 107% Source: YCharts. Revenue $626.7 million $871.9 million 39% Free cash flow ($20.1 million) $102.6 million
|
Datadog (NASDAQ: DDOG) and Axon Enterprise (NASDAQ: AXON) have beat the S&P 500 over the last two years, and both are well positioned to maintain that trend over the coming decade. Today, Axon sells body cameras, in-car fleet cameras, and drone-mounted aerial cameras, all of which feed data to Axon Respond, a real-time situational awareness platform that allows dispatchers, first responders, and police commanders to coordinate and monitor personnel in the field. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Trevor Jennewine owns Axon Enterprise.
|
Datadog (NASDAQ: DDOG) and Axon Enterprise (NASDAQ: AXON) have beat the S&P 500 over the last two years, and both are well positioned to maintain that trend over the coming decade. In turn, each new system (and each new client) creates more data, sharpening Datadog's AI models over time. Looking ahead, Datadog is well positioned to grow its business.
|
b68b7a93-5560-46a0-8533-33e82a73c2ea
|
718787.0
|
2021-12-07 00:00:00 UTC
|
Why High-Growth Tech Stocks Like Datadog Rose Today
|
DDOG
|
https://www.nasdaq.com/articles/why-high-growth-tech-stocks-like-datadog-rose-today
|
nan
|
nan
|
What happened
It was good to be a tech stock investor on Tuesday, as shares of a great many companies in the sector rose notably on the day.
Thumping the broader market were, among others, Datadog (NASDAQ: DDOG) with a nearly 10% increase, Snowflake (NYSE: SNOW), up 6.5%, and Okta (NASDAQ: OKTA), which posted an almost 6% gain. Meanwhile, HubSpot (NYSE: HUBS) added nearly 7%, and Adobe (NASDAQ: ADBE) was up by over 4%.
Image source: Getty Images.
So what
Those moves were part of a large, sweeping, overall rally in tech titles. Such stocks had been punished in recent days as investors bailed out of potential high-growth companies considered to be relatively risky plays. Now, with recent news that the omicron variant of the coronavirus might be less severe than its delta predecessor, the appetite for risk seems to be rising again.
None of the five mentioned stocks were featured in headlines Tuesday that would have individually swung their share prices so dramatically.
A slight exception is Snowflake, which on Monday saw its price target raised modestly by analyst Phil Winslow of Credit Suisse.
Winslow upped said target by $10 to $465 per share while keeping his outperform (read: buy) recommendation on the stock. He pointed out in a new research note that the company's third-quarter results were vastly better than expectations, and it remains an innovator as a business that effectively ties together disparate IT information sources for clients.
Now what
Like Snowflake, Datadog, Okta, HubSpot, and -- to a lesser extent -- veteran operator Adobe occupy tech sector niches full of promise for significant growth. But the downside to that is that such titles can be very volatile, and what shoots higher can then plummet earthward if the circumstances turn sour. Buyer, beware.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Datadog, HubSpot, Okta, and Snowflake Inc. The Motley Fool recommends 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.
|
Thumping the broader market were, among others, Datadog (NASDAQ: DDOG) with a nearly 10% increase, Snowflake (NYSE: SNOW), up 6.5%, and Okta (NASDAQ: OKTA), which posted an almost 6% gain. What happened It was good to be a tech stock investor on Tuesday, as shares of a great many companies in the sector rose notably on the day. He pointed out in a new research note that the company's third-quarter results were vastly better than expectations, and it remains an innovator as a business that effectively ties together disparate IT information sources for clients.
|
Thumping the broader market were, among others, Datadog (NASDAQ: DDOG) with a nearly 10% increase, Snowflake (NYSE: SNOW), up 6.5%, and Okta (NASDAQ: OKTA), which posted an almost 6% gain. Now what Like Snowflake, Datadog, Okta, HubSpot, and -- to a lesser extent -- veteran operator Adobe occupy tech sector niches full of promise for significant growth. The Motley Fool owns shares of and recommends Datadog, HubSpot, Okta, and Snowflake Inc.
|
Thumping the broader market were, among others, Datadog (NASDAQ: DDOG) with a nearly 10% increase, Snowflake (NYSE: SNOW), up 6.5%, and Okta (NASDAQ: OKTA), which posted an almost 6% gain. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Eric Volkman has no position in any of the stocks mentioned.
|
Thumping the broader market were, among others, Datadog (NASDAQ: DDOG) with a nearly 10% increase, Snowflake (NYSE: SNOW), up 6.5%, and Okta (NASDAQ: OKTA), which posted an almost 6% gain. Winslow upped said target by $10 to $465 per share while keeping his outperform (read: buy) recommendation on the stock. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Eric Volkman has no position in any of the stocks mentioned.
|
dc337317-c3e4-4578-9675-52bb250883e3
|
718788.0
|
2021-12-06 00:00:00 UTC
|
Could These 2 Unbeatable Stocks Help You Retire Early?
|
DDOG
|
https://www.nasdaq.com/articles/could-these-2-unbeatable-stocks-help-you-retire-early
|
nan
|
nan
|
Over the past five years, Sea Limited (NYSE: SE) shares jumped over 800%, and shares of Datadog (NASDAQ: DDOG) have risen 374%. Even considering these amazing run-ups in the past, each company has gained dominance that could continue to push these high-quality businesses further over the next five years.
Sea Limited's immense optionality and go-to-market success in all of its businesses segments give me confidence that the company can succeed in its new markets. Datadog's observability platform is becoming mission-critical to a business for platform monitoring as it has consistently expanded its offering. Despite their past success, both companies are continuing to innovate, which is why I think they could continue growing rapidly over the next five years.
Image source: Getty Images.
1. Sea Limited: Broadening its reach
Sea's past success has primarily come from one of its three business segments: Its gaming segment, Garena. With this mobile game development tool, Sea developed the hit game FreeFire -- a mobile battle royal game -- which propelled the company into massive fortunes. When FreeFire launched in December 2017, the company's quarterly gaming revenue was just $142 million, but its recent quarter shows the effects of Sea's successful game, posting gaming revenue of $1.1 billion.
Now, after FreeFire has amassed 729 million quarterly active users and become one of the most popular video games in the world, FreeFire popularity is starting to wane. User growth is starting to decelerate along with revenue in the segment. To counter this, Sea has done two things. First, it has invested in updates to drive higher engagement and monetization of FreeFire like Lone Wolf Mode -- a new mode with exclusive skins and gameplay options.
While these investments are not permanent fixes for FreeFire but just temporary efforts to prolong its life, they are monetizing users successfully, bringing the number of paying users up 43% year over year to 93 million.
The second thing that Sea is doing to counteract FreeFire is ramping up its two other businesses -- Shopee and SeaMoney. Shopee, which has already become one of the biggest e-commerce platforms in Southeast Asia, is now being brought across the world into Brazil and Europe. In Brazil, Shopee faces competition from MercadoLibre (NASDAQ: MELI), but after just two years, some reports say that Shopee has already beat MercadoLibre as the largest e-commerce app.
SeaMoney -- Sea's third business segment -- is the smallest segment, but it is seeing strong adoption in Southeast Asia. The financial platform could become the all-in-one payments app with the potential launch of buy now pay later and insurtech solutions. Because of SeaMoney's innovation, it is seeing rapid adoption from users. Users grew 121% from almost 18 million users in the third quarter of 2020 to almost 40 million today. According to Statista, the digital payments volume in Singapore is expected to nearly triple to $28 billion by 2025. Considering that Sea has under $5 billion in payment volume, Sea's growth opportunity in this area is extreme.
Sea has been drastically spending more on sales and marketing expenses, likely due to the company's efforts to expand Shopee internationally. If the company's investments today in getting Shopee established in its new geographies prove to be successful, the company has the potential to bring in much more money than it paid for in expenses. This potential benefit from its new geographies massively outweighs the current costs of expansion, so as the company settles into these new markets, Sea's profitability will likely improve.
What really makes this company special is its immense optionality and non-reliance on any one business segment. Although Sea Limited has relied on FreeFire in past, the company has been able to expand Shopee to the point where it recently overtook the digital entertainment business as the largest segment in terms of revenue. This came after growing the top line 134% year over year to $1.5 billion in Q3, showing that this three-headed dragon can see continuous success from three independent businesses at once.
2. Datadog: The need-to-have monitoring platform
The 370% appreciation that Datadog shares have seen over the past five years is just the tip of the iceberg of the next five years. Datadog serves as the core observability platform for businesses, and it is quickly becoming the primary cloud monitoring platform. With Datadog, businesses can monitor their network, infrastructure, app performance, and a host of other key parts of their cloud presence to ensure it is running smoothly.
Companies are becoming more integrated into the cloud, which means they need to rely more on Datadog's tools to ensure that everything is operational and secure. As more companies transition to a heavier cloud presence, their infrastructure can get more complicated, resulting in the need for more complex tools. Datadog has noticed this and has been developing new tools like enhanced visibility into code databases and iOS error tracking.
Dozens of these new tools have been recently announced and have been quickly adopted by customers. The number of large customers spending over $100,000 increased 66% year over year to over 1,800 customers. In Q3, this acceptance of its newest products continued to push the company toward profitability. Its net loss represented less than 3% of gross profit compared to 12% in the year-ago quarter.
There has been rapid growth in the company's R&D budget which is causing the company to be unprofitable, but this could be seen as more of an investment. The company sees a $53 billion market opportunity by 2025 -- which is 40% growth from today -- and Datadog's heavy investment in research and development indicates that it is trying to capitalize on the fast-growing market.
For both companies, the stock prices have followed very consistently with their stellar business performances, and I expect that to continue as operations move forward. The name of the game for them is optionality, and both are proving their ability to do so every quarter. Because of Datadgo's ability to execute so well, its price-to-sales ratio has hovered in the high 50s for the year, but Sea's valuation has dropped despite its performance. It is currently valued at 16 times sales.
For Sea Limited, continued expansion of Shopee and SeaMoney could lead to sustained performance, and Datadog should continue bringing innovative products to its customers. If Sea and Datadog keep doing these things, I think that both companies could assist in early retirement if held in a diversified portfolio.
10 stocks we like better than Sea Limited
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Sea Limited wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Jamie Louko owns shares of Datadog, MercadoLibre, and Sea Limited. The Motley Fool owns shares of and recommends Datadog, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Over the past five years, Sea Limited (NYSE: SE) shares jumped over 800%, and shares of Datadog (NASDAQ: DDOG) have risen 374%. This potential benefit from its new geographies massively outweighs the current costs of expansion, so as the company settles into these new markets, Sea's profitability will likely improve. Although Sea Limited has relied on FreeFire in past, the company has been able to expand Shopee to the point where it recently overtook the digital entertainment business as the largest segment in terms of revenue.
|
Over the past five years, Sea Limited (NYSE: SE) shares jumped over 800%, and shares of Datadog (NASDAQ: DDOG) have risen 374%. With this mobile game development tool, Sea developed the hit game FreeFire -- a mobile battle royal game -- which propelled the company into massive fortunes. When FreeFire launched in December 2017, the company's quarterly gaming revenue was just $142 million, but its recent quarter shows the effects of Sea's successful game, posting gaming revenue of $1.1 billion.
|
Over the past five years, Sea Limited (NYSE: SE) shares jumped over 800%, and shares of Datadog (NASDAQ: DDOG) have risen 374%. Sea Limited: Broadening its reach Sea's past success has primarily come from one of its three business segments: Its gaming segment, Garena. When FreeFire launched in December 2017, the company's quarterly gaming revenue was just $142 million, but its recent quarter shows the effects of Sea's successful game, posting gaming revenue of $1.1 billion.
|
Over the past five years, Sea Limited (NYSE: SE) shares jumped over 800%, and shares of Datadog (NASDAQ: DDOG) have risen 374%. While these investments are not permanent fixes for FreeFire but just temporary efforts to prolong its life, they are monetizing users successfully, bringing the number of paying users up 43% year over year to 93 million. Datadog: The need-to-have monitoring platform The 370% appreciation that Datadog shares have seen over the past five years is just the tip of the iceberg of the next five years.
|
1c861a6a-c410-442b-abb6-eff62f66f0fa
|
718789.0
|
2021-12-03 00:00:00 UTC
|
First Week of January 2022 Options Trading For Datadog (DDOG)
|
DDOG
|
https://www.nasdaq.com/articles/first-week-of-january-2022-options-trading-for-datadog-ddog
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading this week, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new January 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $155.00 strike price has a current bid of $11.25. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $155.00, but will also collect the premium, putting the cost basis of the shares at $143.75 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $155.87/share today.
Because the $155.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 55%. 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 7.26% return on the cash commitment, or 63.08% 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 $155.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $160.00 strike price has a current bid of $10.60. If an investor was to purchase shares of DDOG stock at the current price level of $155.87/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $160.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.45% if the stock gets called away at the January 2022 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 $160.00 strike highlighted in red:
Considering the fact that the $160.00 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 53%. 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 6.80% boost of extra return to the investor, or 59.10% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 69%, while the implied volatility in the call contract example is 73%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $155.87) to be 50%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls 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.
|
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 $160.00 strike highlighted in red: Considering the fact that the $160.00 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 begin trading this week, for the January 2022 expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $160.00 strike highlighted in red: Considering the fact that the $160.00 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 begin trading this week, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new January 2022 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 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 begin trading this week, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new January 2022 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new January 2022 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 $160.00 strike highlighted in red: Considering the fact that the $160.00 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 begin trading this week, for the January 2022 expiration.
|
b9b41c4a-be72-449d-b344-375a3e5bff88
|
718790.0
|
2021-12-03 00:00:00 UTC
|
Implied DWPP Analyst Target Price: $38
|
DDOG
|
https://www.nasdaq.com/articles/implied-dwpp-analyst-target-price%3A-%2438
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Dorsey Wright People's Portfolio ETF (Symbol: DWPP), we found that the implied analyst target price for the ETF based upon its underlying holdings is $38.11 per unit.
With DWPP trading at a recent price near $34.01 per unit, that means that analysts see 12.05% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DWPP's underlying holdings with notable upside to their analyst target prices are Rollins, Inc. (Symbol: ROL), Palantir Technologies Inc (Symbol: PLTR), and Datadog Inc (Symbol: DDOG). Although ROL has traded at a recent price of $32.27/share, the average analyst target is 19.82% higher at $38.67/share. Similarly, PLTR has 14.78% upside from the recent share price of $19.69 if the average analyst target price of $22.60/share is reached, and analysts on average are expecting DDOG to reach a target price of $194.07/share, which is 14.54% above the recent price of $169.44. Below is a twelve month price history chart comparing the stock performance of ROL, PLTR, and DDOG:
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
First Trust Dorsey Wright People's Portfolio ETF DWPP $34.01 $38.11 12.05%
Rollins, Inc. ROL $32.27 $38.67 19.82%
Palantir Technologies Inc PLTR $19.69 $22.60 14.78%
Datadog Inc DDOG $169.44 $194.07 14.54%
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.
|
First Trust Dorsey Wright People's Portfolio ETF DWPP $34.01 $38.11 12.05% Rollins, Inc. ROL $32.27 $38.67 19.82% Palantir Technologies Inc PLTR $19.69 $22.60 14.78% Datadog Inc DDOG $169.44 $194.07 14.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DWPP's underlying holdings with notable upside to their analyst target prices are Rollins, Inc. (Symbol: ROL), Palantir Technologies Inc (Symbol: PLTR), and Datadog Inc (Symbol: DDOG). Similarly, PLTR has 14.78% upside from the recent share price of $19.69 if the average analyst target price of $22.60/share is reached, and analysts on average are expecting DDOG to reach a target price of $194.07/share, which is 14.54% above the recent price of $169.44.
|
Three of DWPP's underlying holdings with notable upside to their analyst target prices are Rollins, Inc. (Symbol: ROL), Palantir Technologies Inc (Symbol: PLTR), and Datadog Inc (Symbol: DDOG). First Trust Dorsey Wright People's Portfolio ETF DWPP $34.01 $38.11 12.05% Rollins, Inc. ROL $32.27 $38.67 19.82% Palantir Technologies Inc PLTR $19.69 $22.60 14.78% Datadog Inc DDOG $169.44 $194.07 14.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, PLTR has 14.78% upside from the recent share price of $19.69 if the average analyst target price of $22.60/share is reached, and analysts on average are expecting DDOG to reach a target price of $194.07/share, which is 14.54% above the recent price of $169.44.
|
Similarly, PLTR has 14.78% upside from the recent share price of $19.69 if the average analyst target price of $22.60/share is reached, and analysts on average are expecting DDOG to reach a target price of $194.07/share, which is 14.54% above the recent price of $169.44. Three of DWPP's underlying holdings with notable upside to their analyst target prices are Rollins, Inc. (Symbol: ROL), Palantir Technologies Inc (Symbol: PLTR), and Datadog Inc (Symbol: DDOG). Below is a twelve month price history chart comparing the stock performance of ROL, PLTR, and DDOG: Below is a summary table of the current analyst target prices discussed above:
|
First Trust Dorsey Wright People's Portfolio ETF DWPP $34.01 $38.11 12.05% Rollins, Inc. ROL $32.27 $38.67 19.82% Palantir Technologies Inc PLTR $19.69 $22.60 14.78% Datadog Inc DDOG $169.44 $194.07 14.54% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DWPP's underlying holdings with notable upside to their analyst target prices are Rollins, Inc. (Symbol: ROL), Palantir Technologies Inc (Symbol: PLTR), and Datadog Inc (Symbol: DDOG). Similarly, PLTR has 14.78% upside from the recent share price of $19.69 if the average analyst target price of $22.60/share is reached, and analysts on average are expecting DDOG to reach a target price of $194.07/share, which is 14.54% above the recent price of $169.44.
|
9ed65c60-a431-42c0-bf16-d80abde9c4f6
|
718791.0
|
2021-11-26 00:00:00 UTC
|
Invesco Launches New ESG ETFs Tracking the Nasdaq-100 ESG and Nasdaq Next Generation 100 ESG Indexes
|
DDOG
|
https://www.nasdaq.com/articles/invesco-launches-new-esg-etfs-tracking-the-nasdaq-100-esg-and-nasdaq-next-generation-100
|
nan
|
nan
|
E
nvironmental, Social and Governance (ESG) investing has reached unprecedented heights. ESG assets are on track to reach $53 trillion by 2025, representing more than one-third of the US$140.5 trillion in projected total assets under management. Moreover, ESG assets are forecasted to reach $37.8 trillion by year-end 2021, rising from $30.6 trillion in 2018 and $22.8 trillion in 2016. Europe accounts for half of global ESG assets, but the U.S. has the strongest expansion in 2021 and may dominate the category starting in 2022.1
ETFs are a popular way for investors to gain exposure to several individual stocks without having to take positions on an individual basis. They are convenient because they trade throughout the day, like stocks, and they are often more cost effective compared to mutual funds. Many investors are now leaning toward ETFs with an ESG overlay. The total global assets in ETFs and ETPs reached US$9.3 trillion as of September 30, 2021, compared to US$426 billion in 2005.2 Further, as of the end of October 2021, there was US$231 billion in global ESG ETF assets.3
Responding to this trend, Invesco just listed new ESG ETFs based on the Nasdaq-100 ESG Index™ and Nasdaq Next Generation 100 ESG Index™. For the first time, investors can access many of the top Nasdaq-listed companies from the Nasdaq-100® and the Nasdaq Next Generation 100 Index™ with a tilt in exposure toward personal values.
Two new ETFs launched on October 27, 2021: the Invesco ESG Nasdaq-100 ETF (Nasdaq: QQMG) and the Invesco ESG Nasdaq Next Gen 100 ETF (Nasdaq: QQJG). These investment products expanded the Invesco QQQ Innovation Suite to include a total of six products in the U.S. On the same date, Invesco launched the Nasdaq-100 ESG UCITS ETF on three exchanges in Europe.
“At Nasdaq, we have been working closely with clients such as Invesco to develop a range of index offerings in the ESG investing landscape,” says Cameron Lilja, Global Head of Index Research and Development at Nasdaq. “As a result of these new global launches, Invesco now offers additional ways for investors to diversify their portfolios while still investing in the large- and mid-cap equity spaces.”
A more ESG-friendly index
Although the Nasdaq-100 is most closely connected with technology, about half of the index constituents come from other industries. Many of the companies consistently have a higher dollar spend on research and development. For this reason, they are often well-positioned to capitalize on transformative, long-term themes in the market, such as the technology driving clean energy and sustainable resources.
The Nasdaq Next Generation 100 Index measures the performance of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 securities outside of the Nasdaq-100. They are the next generation of innovators on the world stage.
The constituents of both parent indexes are filtered through a set of criteria utilizing Sustainalytics’ ESG data, excluding those companies that do not pass the rules laid out in the index methodologies. The indexes modify eligible company weights from their respective benchmarks based on how effectively they are managing ESG risk, rewarding those with a lower risk.
“Through this framework, six companies in the Nasdaq-100 Index and 10 companies in the Nasdaq Next Generation 100 Index have been removed,” Efram Slen, Global Head of Index Research at Nasdaq, explains. “All of the remaining companies have been reweighted, resulting in an even stronger ESG-tilted composition than the parent indexes.”
It is also worth noting that the core indexes and the ESG indexes have different reconstitution schedules. The Nasdaq-100 and Nasdaq Next Generation 100 Indexes are reconstituted annually each December. The Nasdaq-100 ESG Index and Nasdaq Next Generation 100 ESG Index are reconstituted quarterly in March, June, September and December, at which time the ESG characteristics of all issuers are reviewed. Securities removed from the parent indexes outside of a reconstitution are removed from the ESG versions of their indexes and are not replaced.
Investors are increasingly drawn toward thematic ETFs, which target stocks positioned to benefit from potential shifts in technology, society, the environment and demographics over time. ESG has been a hot area for the last several years, and interest is only growing given the focus on promoting clean energy and climate goals. Ultimately, these new Invesco ESG ETFs provide investors with an opportunity to invest in large- and mid-cap companies that place a high priority on sustainability to preserve our planet and achieve social good.
Some securities in QQMG include: Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU)
Some of the securities in QQJG include: Fortinet (FTNT), Zscaler (ZS), Zebra Technologies (ZBRA), Old Dominion (ODFL), Datadog (DDOG), Etsy (ETSY)
Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
© 2021. Nasdaq, Inc. All Rights Reserved.
1. Source: Bloomberg, https://www.bloomberg.com/professional/blog/esg-assets-may-hit-53-trillion-by-2025-a-third-of-global-aum/
2. Source: EFTGI
3. Source: FactSet
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some securities in QQMG include: Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU) Some of the securities in QQJG include: Fortinet (FTNT), Zscaler (ZS), Zebra Technologies (ZBRA), Old Dominion (ODFL), Datadog (DDOG), Etsy (ETSY) Nasdaq® is a registered trademark of Nasdaq, Inc. Investors are increasingly drawn toward thematic ETFs, which target stocks positioned to benefit from potential shifts in technology, society, the environment and demographics over time. Ultimately, these new Invesco ESG ETFs provide investors with an opportunity to invest in large- and mid-cap companies that place a high priority on sustainability to preserve our planet and achieve social good.
|
Some securities in QQMG include: Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU) Some of the securities in QQJG include: Fortinet (FTNT), Zscaler (ZS), Zebra Technologies (ZBRA), Old Dominion (ODFL), Datadog (DDOG), Etsy (ETSY) Nasdaq® is a registered trademark of Nasdaq, Inc. Two new ETFs launched on October 27, 2021: the Invesco ESG Nasdaq-100 ETF (Nasdaq: QQMG) and the Invesco ESG Nasdaq Next Gen 100 ETF (Nasdaq: QQJG). “Through this framework, six companies in the Nasdaq-100 Index and 10 companies in the Nasdaq Next Generation 100 Index have been removed,” Efram Slen, Global Head of Index Research at Nasdaq, explains.
|
Some securities in QQMG include: Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU) Some of the securities in QQJG include: Fortinet (FTNT), Zscaler (ZS), Zebra Technologies (ZBRA), Old Dominion (ODFL), Datadog (DDOG), Etsy (ETSY) Nasdaq® is a registered trademark of Nasdaq, Inc. The total global assets in ETFs and ETPs reached US$9.3 trillion as of September 30, 2021, compared to US$426 billion in 2005.2 Further, as of the end of October 2021, there was US$231 billion in global ESG ETF assets.3 Responding to this trend, Invesco just listed new ESG ETFs based on the Nasdaq-100 ESG Index™ and Nasdaq Next Generation 100 ESG Index™. Two new ETFs launched on October 27, 2021: the Invesco ESG Nasdaq-100 ETF (Nasdaq: QQMG) and the Invesco ESG Nasdaq Next Gen 100 ETF (Nasdaq: QQJG).
|
Some securities in QQMG include: Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU) Some of the securities in QQJG include: Fortinet (FTNT), Zscaler (ZS), Zebra Technologies (ZBRA), Old Dominion (ODFL), Datadog (DDOG), Etsy (ETSY) Nasdaq® is a registered trademark of Nasdaq, Inc. The total global assets in ETFs and ETPs reached US$9.3 trillion as of September 30, 2021, compared to US$426 billion in 2005.2 Further, as of the end of October 2021, there was US$231 billion in global ESG ETF assets.3 Responding to this trend, Invesco just listed new ESG ETFs based on the Nasdaq-100 ESG Index™ and Nasdaq Next Generation 100 ESG Index™. Two new ETFs launched on October 27, 2021: the Invesco ESG Nasdaq-100 ETF (Nasdaq: QQMG) and the Invesco ESG Nasdaq Next Gen 100 ETF (Nasdaq: QQJG).
|
bde10019-85cd-4829-9a6f-bcf0e41143f5
|
718792.0
|
2021-11-23 00:00:00 UTC
|
Is the Bull Market in High-Growth Nasdaq Stocks Over?
|
DDOG
|
https://www.nasdaq.com/articles/is-the-bull-market-in-high-growth-nasdaq-stocks-over
|
nan
|
nan
|
Stock markets have turned volatile during the Thanksgiving holiday week, and that's created a rift on Wall Street. Although some major benchmarks are holding up well, the Nasdaq Composite (NASDAQINDEX: ^IXIC) has been down fairly sharply for two days in a row. Just before noon ET on Tuesday, the Nasdaq was down more than 1%, bringing its two-day drop to more than 350 points.
Looking more closely within the Nasdaq, many of the up-and-coming high-growth companies that have performed so well over the past couple of years are coming under substantial pressure, with outsized declines that seem out of proportion to any fundamental news. Yet investors in those stocks have seen firsthand just how volatile they can be in producing massive returns, so it's only natural that the inevitable pullbacks these stocks experience will also be gut-wrenching in their magnitude.
Yet it's also human nature to wonder if perhaps the bull market in these high-growth Nasdaq stocks might finally have come to an end.
Image source: Getty Images.
A tough day for big growth
Many promising companies on the Nasdaq saw their shares hit an air pocket Tuesday. Monday afternoon's earnings results from Zoom Video Communications (NASDAQ: ZM) sent that stock down 18%, falling below the $200 per-share mark for the first time since the first half of 2020. Zoom shares are now off more than 60% from their all-time highs.
Even without news directly affecting companies, many of Zoom's high-growth peers took considerable hits, as well. Among them:
Cybersecurity-specialist CrowdStrike Holdings (NASDAQ: CRWD) was down more than 5% Tuesday morning, bringing its losses over the past month to nearly 20%.
Fintech-disruptor Upstart Holdings (NASDAQ: UPST) was down about 8%, sending its stock down 43% since late October.
Delivery-specialist DoorDash (NYSE: DASH) gave up 9%, giving back all of its gains from the past couple of weeks and then some.
Interactive fitness company Peloton Interactive (NASDAQ: PTON) fell another 6%, hitting a new 18-month low, down more than 75% from its highest levels less than a year ago.
Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%.
Why it's premature to call the end of the bull market
The challenge in investing in high-growth stocks is that investors always face difficulties deciding when a bull market has come to an end. When a stock generates 100%, 200%, or even 500% returns in a short period of time, even a pullback of 30%, 40%, or 50% can represent merely a correction in a longer-term upward trajectory. Selling out after those pullbacks because you think greater declines are coming has often proved to be the worst possible move you could make.
Moreover, the current level of volatility in high-growth stocks should not take anyone by surprise. By their nature, high-growth stocks are more susceptible to big market swings because most of their potential is in the future and therefore subject to greater uncertainty. This can lead to painful losses, but it's also the source of the outsized gains seen over the past 18 months for many of these stocks.
Focus on fundamentals
The smart move for long-term investors is to keep your eyes squarely on the business prospects for the companies whose stock you own. Some companies do see fundamental challenges that change the investing proposition and make them less attractive. In that case, considering a sale can be the right move.
More often than not, though, share-price moves are noise with little relation to the fundamental factors that make them promising businesses. The more you can tune out distractions and stay focused on business success, the more likely it is that you'll boost your long-term investment performance.
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 November 10, 2021
Dan Caplinger owns shares of Datadog, Peloton Interactive, and Zoom Video Communications. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc., Datadog, Digitalocean Holdings, Inc., Peloton Interactive, Upstart Holdings, Inc., 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.
|
Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%. Looking more closely within the Nasdaq, many of the up-and-coming high-growth companies that have performed so well over the past couple of years are coming under substantial pressure, with outsized declines that seem out of proportion to any fundamental news. Monday afternoon's earnings results from Zoom Video Communications (NASDAQ: ZM) sent that stock down 18%, falling below the $200 per-share mark for the first time since the first half of 2020.
|
Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Dan Caplinger owns shares of Datadog, Peloton Interactive, and Zoom Video Communications. The Motley Fool owns shares of and recommends CrowdStrike Holdings, Inc., Datadog, Digitalocean Holdings, Inc., Peloton Interactive, Upstart Holdings, Inc., and Zoom Video Communications.
|
Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%. 10 stocks we like better than Zoom Video Communications When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Dan Caplinger owns shares of Datadog, Peloton Interactive, and Zoom Video Communications.
|
Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%. This can lead to painful losses, but it's also the source of the outsized gains seen over the past 18 months for many of these stocks. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Dan Caplinger owns shares of Datadog, Peloton Interactive, and Zoom Video Communications.
|
93406b59-cca3-46bc-9889-6a108033d6de
|
718793.0
|
2021-11-22 00:00:00 UTC
|
Most Active Stocks Today? 4 Tech Stocks To Know
|
DDOG
|
https://www.nasdaq.com/articles/most-active-stocks-today-4-tech-stocks-to-know
|
nan
|
nan
|
Here Are 4 Trending Tech Stocks For Your Late November Watchlist
With the start of this short trading week, tech stocks appear to be gaining attention in the stock market. For the most part, this is understandable given the growing reliance on tech across global markets today. Thanks to the vast reach of the tech industry, investors have plenty of entry points into this ever-evolving space. For example, we could look at the likes of Astra Space (NASDAQ: ASTR). Through its tech, Astra aims to eventually provide low-cost space logistics services. Over the weekend, the company reportedly delivered a test payload into orbit for the first time. Because of this, it would not surprise me to see investors flocking to ASTR stock today.
At the same time, tech giants like Apple (NASDAQ: AAPL) are hard at work expanding their portfolios. Just last week, news broke of the company’s plans to build an autonomous vehicle (AV) by 2025. Perhaps because of that, AAPL stock is making new highs today. Meanwhile, Vonage (NASDAQ: VG), a global cloud communications firm, appears to be in focus now as well. This would be thanks to news of the company being acquired by telecom company Ericsson (NASDAQ: ERIC) for a whopping $6.2 billion. It seems like Ericsson is keen on expanding its wireless portfolio on a global scale. All in all, the tech world appears to be as busy as ever. On that note, here are four tech stocks making plays in the stock market today.
Top Tech Stocks To Buy [Or Sell] This Week
GlobalFoundries Inc. (NASDAQ: GFS)
Nvidia Corporation (NASDAQ: NVDA)
PayPal Holdings Inc. (NASDAQ: PYPL)
Datadog Inc. (NASDAQ: DDOG)
GlobalFoundries Inc.
First up, we have GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. In fact, it is one of the world’s leading semiconductor manufacturers. The company offers a unique mix of design, development, and fabrication services. Given its talented and diverse workforce, it has an at-scale manufacturing footprint spanning across the globe. GFS stock is up by over 30% year-to-date.
Today, multiple analysts initiated coverage on the company. Credit Suisse (NYSE: CS) analyst John Pitzer initiated coverage with an Outperform rating and a price target of $75. The analyst says that the benefits of the company’s 2018 strategic pivot from “bleeding edge” to “pervasive” are just now inflecting and sees semi-cyclical and foundry secular tailwinds for GlobalFoundries. Meanwhile, Citi (NYSE: C) initiated coverage with a Buy rating and also a $75 price target for GlobalFoundries. All things considered, is GFS stock a buy?
Source: TD Ameritrade TOS
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Nvidia Corporation
Nvidia Corporation is a tech company that manufactures graphics processing units. The company has essentially redefined modern computer graphics and its products are used by billions all over the world. Its products have allowed for high-performance computing and also artificial intelligence (AI) to be widely available to all. This would include industries like health care, manufacturing, and transportation. NVDA stock has been up by over 150% in the past year alone. On Friday, CEO Jensen Huang was reported saying something that could get investors excited.
In detail, he said that the metaverse can save companies billions of dollars in the real world. In an interview on Mad Money, Huang believes that businesses can lean on the metaverse or omniverse as Nvidia prefers to call it, to reduce wastefulness and increase operational efficiency. Through the omniverse, companies will be able to simulate factories, power grids, and a wide number of other industry scenarios to predict efficiency and profitability. With that, companies will be able to buy into this artificial intelligence capability with a small investment and could ultimately save hundreds of billions of dollars. This could help further propel the demand for Nvidia’s AI products and services. With that being said, is NVDA stock worth buying right now?
Source: TD Ameritrade TOS
PayPal Holdings Inc.
Following that, we have PayPal Holdings, a multinational financial technology company that owns one of the largest online payments systems in the world. Its platform is used by a majority of countries that support online money transfers. By leveraging technology to make financial services more affordable and secure, the company allows its 400 million consumers and merchants to thrive in a global economy. On November 8, 2021, the company reported its third-quarter financials.
Diving in, total payment volume for the quarter reached a whopping $310 billion, growing by 26% year-over-year. Net revenue for the quarter was $6.18 billion, increasing by 13% compared to a year earlier. PayPal also posted a GAAP earnings per share of $0.92. The company also expects its revenue to grow by approximately 18% for its full-year 2021 and it hopes to end the year with more than 430 million active accounts. Given this strong quarter, should you consider adding PYPL stock to your portfolio today?
Source: TD Ameritrade TOS
[Read More] 5 Metaverse Stocks To Watch In November 2021
Datadog Inc.
Next up, we will be taking a look at Datadog. By and large, the company provides observability services for cloud-scale applications. Simply put, Datadog helps organizations monitor and secure their servers via its proprietary Software-as-a-Service (SaaS) platform. Through this platform, Datadog integrates and automates infrastructure monitoring, app performance monitoring, and log management to provide “total real-time observability”. Given the rise in cyberattacks amidst the wave of digital acceleration, SaaS firms like Datadog would be relevant. Evidently, investors appear to be aware of this, with DDOG stock looking at year-to-date gains of over 110%.
Despite its current momentum, Datadog does not appear to be slowing down anytime soon on the operational front. As of last week, the company is now working with Confluent (NASDAQ: CFLT), a cloud-based big data streaming platform. Through this partnership, Datadog will help Confluent by providing “deep visibility into the health and performance” of its Confluent Cloud platform. According to Datadog’s Senior Director of Product Management, Michael Gerstenhaber, this provides joint clients with a more comprehensive view of their tech stacks. Also, he notes that all this gives customers the “monitoring capabilities they need to deliver superior digital experiences”. As such, will you be investing in DDOG stock anytime soon?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Top Tech Stocks To Buy [Or Sell] This Week GlobalFoundries Inc. (NASDAQ: GFS) Nvidia Corporation (NASDAQ: NVDA) PayPal Holdings Inc. (NASDAQ: PYPL) Datadog Inc. (NASDAQ: DDOG) GlobalFoundries Inc. First up, we have GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. Evidently, investors appear to be aware of this, with DDOG stock looking at year-to-date gains of over 110%. As such, will you be investing in DDOG stock anytime soon?
|
Top Tech Stocks To Buy [Or Sell] This Week GlobalFoundries Inc. (NASDAQ: GFS) Nvidia Corporation (NASDAQ: NVDA) PayPal Holdings Inc. (NASDAQ: PYPL) Datadog Inc. (NASDAQ: DDOG) GlobalFoundries Inc. First up, we have GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. Evidently, investors appear to be aware of this, with DDOG stock looking at year-to-date gains of over 110%. As such, will you be investing in DDOG stock anytime soon?
|
Top Tech Stocks To Buy [Or Sell] This Week GlobalFoundries Inc. (NASDAQ: GFS) Nvidia Corporation (NASDAQ: NVDA) PayPal Holdings Inc. (NASDAQ: PYPL) Datadog Inc. (NASDAQ: DDOG) GlobalFoundries Inc. First up, we have GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. Evidently, investors appear to be aware of this, with DDOG stock looking at year-to-date gains of over 110%. As such, will you be investing in DDOG stock anytime soon?
|
Top Tech Stocks To Buy [Or Sell] This Week GlobalFoundries Inc. (NASDAQ: GFS) Nvidia Corporation (NASDAQ: NVDA) PayPal Holdings Inc. (NASDAQ: PYPL) Datadog Inc. (NASDAQ: DDOG) GlobalFoundries Inc. First up, we have GlobalFoundries, a multinational semiconductor contract manufacturing, and design company. Evidently, investors appear to be aware of this, with DDOG stock looking at year-to-date gains of over 110%. As such, will you be investing in DDOG stock anytime soon?
|
0ac8100e-660c-439c-a490-a6b1b9a8529f
|
718794.0
|
2021-11-21 00:00:00 UTC
|
3 Disruptive Tech Stocks That Can Supercharge Your Portfolio
|
DDOG
|
https://www.nasdaq.com/articles/3-disruptive-tech-stocks-that-can-supercharge-your-portfolio-2021-11-21
|
nan
|
nan
|
Companies that are disrupting the status quo can sometimes be stellar investments. Well-known disruptors like Netflix and Amazon totally changed the way consumers watch movies in their homes and shop for everyday goods. If you had invested in this duo a decade ago (and held), you'd have more than 40 times your original purchase today.
But picking the winners from a host of mediocre players can be tough. We asked three Motley Fool contributors to recommend one disruptive company that could provide long-term market-trouncing performance. They came up with DataDog (NASDAQ: DDOG), Lemonade (NYSE: LMND), and Roku (NASDAQ: ROKU).
Image source: Getty Images.
DataDog: This stock could be an investor's best friend
Brian Withers (DataDog): Datadog stock has been on a rocket ride, more than doubling over the past 12 months. You might think you've missed this fast-growing stock, but this dog's disruption story is still not over. The company specializes in monitoring the ecosystem of applications, networks, and security businesses use to execute their day-to-day operations and win over customers. Let's look at why you might want to add this observability expert to your portfolio.
First, let's dive into the most recent results. The top line grew an astounding 75% year over year. You might think that the Q3 of the previous year was a quarter with a weak result, but it is lapping solid growth of 61%, which makes the number even more impressive. But this isn't the only thing that investors were excited about in the quarter. The company's largest customers continue to grow at a massive rate. This is further emphasized with the more than doubling of its remaining performance obligations (RPO). RPO is a key metric for software-as-a-service companies and is the total value of all its contracts that have yet to be paid out.
METRIC
Q3 2020
Q2 2021
Q3 2021
CHANGE (QOQ)
CHANGE (YOY)
Revenue
$155 million
$234 million
$270 million
15%
75%
>$100K ARR customers
1,082
1,610
1,800
12%
66%
Remaining performance obligations
$316 million
$583 million
$719 million
23%
127%
Data source: Company earnings release and earnings call. QOQ = quarter over quarter. YOY = year over year.
But last quarter's results aren't all investors are excited about. The company announced numerous upgrades and additional tools in its DASH user and developer conference at the end of October. These enhancements will help the company bring more value to customers and encourage them to use more of the ecosystem of products. Today, 31% of customers use four or more products, up from 20% the same quarter last year.
With more companies adopting more cloud services, it's making their information technology infrastructure more complex. DataDog becomes a must-have critical enabler for businesses to keep tabs on all their digital assets. Despite the stock's high valuation (a price-to-sales ratio of 66), this disruptor is well positioned to beat the market over the next decade. You would be smart to pick up a few shares today.
Image source: Getty Images.
Lemonade: The tech-driven insurer that could bring comprehensive gains
Will Healy (Lemonade): Lemonade utilizes tech to bring disruption to the insurance industry. Its renters, homeowners, auto, pet, and life insurance policies use artificial intelligence (AI) and behavioral economics to make coverage decisions. Through this process, it strives for zero paperwork and "instant everything."
It also attempts to appeal to customers on a personalized level through the Lemonade Giveback program. If the company does not spend all the money set aside for claims, Lemonade donates funds to the charity of the customer's choice. The program likely contributed to its Net Promoter Score of 70, far above the industry average of less than 20.
Lemonade's information edge also gives it a competitive advantage, with Lemonade Car emerging as its latest AI innovation. It is a technology tied to car-mounted sensors that tracks driver behavior, giving the company more information to evaluate the insured, meaning safer drivers will likely pay lower premiums.
Its approach continues to attract customers, taking revenue for the third quarter of 2021 to $36 million, up just over 100% compared with Q3 2020. Revenue rose because Lemonade increased its customer count 45% year over year to just under 1.4 million. Also, in Q3, it raised its premium per customer to $254, 26% higher than 12 months ago, as the company sold more higher-value policies.
Still, the company continues to burn cash. Losses surged 115% over the same period to $66 million as expense growth slightly surpassed that of revenue. Moreover, losses are not the only challenge. The loss ratio, or cash spent to present claims, came in at 77%, above the industry average of 64%, according to Ernst & Young. Also, Lemonade stock has struggled as it fell by almost 70% from its February high as short-sellers saw vulnerability in the beaten-down stock. Despite the drop, the current 32 P/S ratio is far more expensive than other insurance stocks.
Nonetheless, growth remains massive. Additionally, as it continues to draw customers with an approach driven by technology and social good, the stock could head higher over time as it transforms how insurers sell policies.
Image source: Getty Images.
Roku: A disruptor at a discount
Danny Vena (Roku): It's been a tough few months for Roku stock. The company was hit by a one-two punch of difficult pandemic-era comps and the ongoing supply chain disruption. As a result, the stock has been crushed, falling 49% from its recent highs. However, investors who can see past these short-term problems have the chance to own or add to one of the most disruptive companies of our time at a bargain-basement price.
The disruption of cable and broadcast television is continuing at an unprecedented rate. Pay-TV services lost more than 5 million subscribers in 2020 alone, and are on track for even greater losses this year, having shed more than 3 million paying customers for the first six months of 2021.
Streaming services are the biggest beneficiary of these trends and no single platform provides access to more paid and ad-supported video services than Roku. The platform offers more than 10,000 streaming channels, providing niche programming options for every viewer.
Perhaps more importantly, the company makes the majority of its money from advertising, getting a 30% cut of the ad space from channels that appear on its platform. That allows Roku to use its treasure trove of viewer data to ensure targeted ads are placed in front of the right consumer.
I'd be remiss if I didn't address the 800-pound gorilla in the room. In the third quarter, Roku's active accounts grew by just 23% year over year, while its streaming hours climbed 21% -- but both of those number require context.
Roku's active account grew by 39% in 2020, while streaming hours surged 55% fueled by the lockdowns and stay-at-home orders. Yet, even against its record-high performance last year, Roku continues to reach new heights, albeit at a (temporarily) slower rate.
Management chalked up some of the company's slowing growth on the impact of the ongoing global supply chain disruption on U.S. TV sales. The Roku Operating System (OS) is found in 1 in 3 smart TVs sold in the country. Once the bottlenecks have been addressed, account growth should resume.
Additionally, during the second and third quarters -- which include the traditional summer vacation period -- growth in streaming hours slowed to a crawl. This shouldn't be too surprising considering that many viewers dropped their remotes and got out of the house for the first time since the pandemic began.
Every disruptive company hits a roadblock on its way to greatness, and Roku is no different. It won't be long before the company's stellar growth resumes, and investors who buy now will enjoy supercharged results.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brian Withers owns shares of Datadog and Lemonade, Inc. Danny Vena owns shares of Amazon, Datadog, Netflix, and Roku. Will Healy has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Datadog, Lemonade, Inc., Netflix, and Roku. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.
|
They came up with DataDog (NASDAQ: DDOG), Lemonade (NYSE: LMND), and Roku (NASDAQ: ROKU). Its renters, homeowners, auto, pet, and life insurance policies use artificial intelligence (AI) and behavioral economics to make coverage decisions. Additionally, as it continues to draw customers with an approach driven by technology and social good, the stock could head higher over time as it transforms how insurers sell policies.
|
They came up with DataDog (NASDAQ: DDOG), Lemonade (NYSE: LMND), and Roku (NASDAQ: ROKU). Revenue $155 million $234 million $270 million 15% 75% >$100K ARR customers 1,082 1,610 1,800 12% 66% Remaining performance obligations $316 million $583 million $719 million 23% 127% Data source: Company earnings release and earnings call. Brian Withers owns shares of Datadog and Lemonade, Inc. Danny Vena owns shares of Amazon, Datadog, Netflix, and Roku.
|
They came up with DataDog (NASDAQ: DDOG), Lemonade (NYSE: LMND), and Roku (NASDAQ: ROKU). DataDog: This stock could be an investor's best friend Brian Withers (DataDog): Datadog stock has been on a rocket ride, more than doubling over the past 12 months. Revenue $155 million $234 million $270 million 15% 75% >$100K ARR customers 1,082 1,610 1,800 12% 66% Remaining performance obligations $316 million $583 million $719 million 23% 127% Data source: Company earnings release and earnings call.
|
They came up with DataDog (NASDAQ: DDOG), Lemonade (NYSE: LMND), and Roku (NASDAQ: ROKU). Roku: A disruptor at a discount Danny Vena (Roku): It's been a tough few months for Roku stock. That's right -- they think these 10 stocks are even better buys.
|
41c6a69f-c886-43a5-a59a-4fa461b791f0
|
718795.0
|
2021-11-19 00:00:00 UTC
|
SPY, DAT: Big ETF Outflows
|
DDOG
|
https://www.nasdaq.com/articles/spy-dat%3A-big-etf-outflows
|
nan
|
nan
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 8,150,000 units were destroyed, or a 0.9% decrease week over week. Among the largest underlying components of SPY, in morning trading today Microsoft is up about 0.5%, and Apple is higher by about 0.2%.
And on a percentage change basis, the ETF with the biggest outflow was the ProShares ProShares Big Data Refiners ETF, which lost 25,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior. Among the largest underlying components of DAT, in morning trading today Datadog is up about 3.2%, and Mongodb is higher by about 1.4%.
VIDEO: SPY, DAT: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of SPY, in morning trading today Microsoft is up about 0.5%, and Apple is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares ProShares Big Data Refiners ETF, which lost 25,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior. Among the largest underlying components of DAT, in morning trading today Datadog is up about 3.2%, and Mongodb is higher by about 1.4%.
|
Among the largest underlying components of SPY, in morning trading today Microsoft is up about 0.5%, and Apple is higher by about 0.2%. Among the largest underlying components of DAT, in morning trading today Datadog is up about 3.2%, and Mongodb is higher by about 1.4%. VIDEO: SPY, DAT: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 8,150,000 units were destroyed, or a 0.9% decrease week over week. Among the largest underlying components of SPY, in morning trading today Microsoft is up about 0.5%, and Apple is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares ProShares Big Data Refiners ETF, which lost 25,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior.
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 8,150,000 units were destroyed, or a 0.9% decrease week over week. Among the largest underlying components of SPY, in morning trading today Microsoft is up about 0.5%, and Apple is higher by about 0.2%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares ProShares Big Data Refiners ETF, which lost 25,000 of its units, representing a 25.0% decline in outstanding units compared to the week prior.
|
0c95b8d8-4538-46ed-b616-7b725428f3eb
|
718796.0
|
2021-11-17 00:00:00 UTC
|
Tech Earnings Roundup: Palantir, DataDog, The Trade Desk
|
DDOG
|
https://www.nasdaq.com/articles/tech-earnings-roundup%3A-palantir-datadog-the-trade-desk
|
nan
|
nan
|
Tune in for a breakdown on how commercial revenue is poised to become a bigger part of the pie for Palantir (NYSE: PLTR), how DataDog (NASDAQ: DDOG) keeps cruising along, and why ad tracking concerns shouldn't faze The Trade Desk (NASDAQ: TTD) shareholders.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Palantir Technologies 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 Palantir Technologies Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
This video was recorded on Nov. 12, 2021.
Dylan Lewis: It's Friday, November 12th, and we're talking about a bunch of tech earnings. I'm your host, Dylan Lewis. I'm joined by fool.com's shifty show man of stock selection, Brian Feroldi. Brian, how is it going, man?
Brian Feroldi: Dylan, it's going great, and we got another action-packed earnings show here. Unlike last week, spoiler alert, we have some good earnings to talk about.
Dylan Lewis: [laughs] We have some good earnings. I think a lot of stuff to be excited about, and we're going to get into it, but I think generally we're looking at strong results from all the companies we've talked about. The market reaction for some of these businesses did not mirror what we saw in the results for these companies. That happens sometimes.
Brian Feroldi: This is why we always say watch the business, not the stock. If you just look at the stock reaction, especially around earnings times, there's always so many factors that go into moving the stock price up or down. But if you focus on the business, that's what matters in the long term.
Dylan Lewis: We've got results from Datadog, we've got results from Palantir, and we've got results from The Trade Desk. Three businesses that I think a lot of folks are probably pretty familiar with in the Fool universe. But we'll run through, give a quick update on what's going on with businesses and of course what they do. Just make sure we're not leaving anybody behind. Brian, let's kick things off with Datadog. This is a business that if you haven't been paying attention to, wow, up into the right absolutely ridiculous performers since coming public. I remember doing that S-1 show with you. It feels like it was eight years ago because of the pandemic, but it wasn't that long ago. This has just been a fantastic stock to own a lot of great results in what we saw at this quarter.
Brian Feroldi: This is a classic recap for me of I don't judge a book by its cover because I still don't like the name Datadog. But if you look at the company, the actual business underneath, wow, is there a lot to like about this company. They provide cloud-based software tools that are really aimed at IT professionals and they help them with observability. It allows IT professional to look at their tech stack, their servers, their databases, their cloud operations, etc. The third-quarter results for this company were just great, pretty much across-the-board. Revenue growth was 75 percent, the $270 million. That exceeded Wall Street's estimate by more than $23 million, and for the first time, this company's annualized run rate is now over one billion dollars. Gross margin was very strong, came in at 78 percent. Believe it or not, that was down slightly when compared to the year-ago period. Combine those two together and gross profit was just through the roof. Even though this company spending really accelerated, especially on R&D, adjusted earnings a year actually grew 160 percent to 13 cents. That was more than almost double what Wall Street expected, and free cash flow very strong at 57 million, it's hard to find any flow in those numbers.
Dylan Lewis: Just to add some context, this business, it was up double-digit percentages after reporting earnings. Wall Street really like the results. It is almost a $60 billion business growing at 75 percent year-over-year, which is absolutely incredible. A large part of that is the growth story is expected to continue, and so this is a little bit of a frothy growth company. When you talk about things like gross margin dipping sometimes, Brian, I think people zoom in on that and think there might be something problematic there. We know that occasionally as businesses scale, you have those quarters where there are a little bit more expenses being pulled in and it's the price of being a bigger business down the road.
Brian Feroldi: That's why I like to look at the absolute results. Gross margin being down, not-great, still 78 percent, which is a number that pretty much every business on Earth would kill for. What's equally exciting is those strong growth numbers were driven by the two things that really drive these numbers. Strong customer growth and increasing spending for their existing customers. This company now has over 17,500 paying customers. That figure was up 33 percent year-over-year. Importantly, their large customers, which they did defined as a customer that will spend at least $100,000, that figure was up 66 percent year-over-year to about 1,800 and they signed their largest ever deal in the quarter. A $60 million deal over five-years were signed during the quarter, and the metric that we love to look at, dollar-based net revenue retention, which yes, includes churn. While we don't get an exact figure for Datadog, management said this number remains over 130 percent. So they're doing a great job about bringing new customers in and upselling existing ones.
Dylan Lewis: Brian, every now and then, we will find a company where I feel like we can distill the thesis down to a very specific number to help immediately communicate how good the business is, or what the opportunity is. We've talked about it with Pinterest in the past where it's like it's as simple as average revenue per user is here, Facebook's is here. That seems like it's an easy 5X or 10X. I think in the case of Datadog, the thesis, the entire time we've been following this company is the DBNR says so much about how useful customers find the product.
Brian Feroldi: It really does. Any SaaS company, that is usually a key metric to look at. It's not universally applicable to all companies, you have to keep in mind who the end-user is. In Datadog's case, it is selling to enterprises, so the DBNR is naturally going to be ability to be higher than if they were selling to small businesses which go out of business often. You do have to keep that in mind. But yeah, the fact this number has been over a 130 percent, essentially since this company came public speaks volumes about its quality.
Dylan Lewis: I mean, it's basically saying, hey, we're going to grow at this rate, even if we don't bring more people in. That's a pretty good flow to be able to set for yourself, Brian.
Brian Feroldi: It makes sense why the stock is always traded at a nosebleed valuation and why it still continues to go up. Now, one thing that management did note is that they made an acquisition during the quarter, a company called Ozcode, which is a "live debugging solution for .NET applications." They think this is going to complement their existing product stack and they also launched 10 new products and features during the quarter. That's one thing I like about this company. They really spend heavily on R&D, and that R&D spending does result in new products and features. Equally as important, those new products are clearly being adopted by the company's existing customer base, hence why the company's financials look so good.
Dylan Lewis: Based on guidance, we'll continue to look good. The party is going to continue based on what we've gotten from management. Strong, top-line guidance, 64 percent growth for Q4, the full-year picture looks pretty good. It does illustrate throughout there, Brian, that 60 billion market cap figure. We're looking at a full-year revenue figure of just under a billion-dollars, hefty price to sales. But because it's such a quality business, people are willing to support that valuation.
Brian Feroldi: To make that valuation continue to hold up, management really has to continually exceed expectations on basically all fronts, and for at least another earnings report, they certainly did.
Dylan Lewis: Quality businesses are worth paying for. This is one of those businesses where if there's ever [laughs] any interruption of the growth story, the market reaction is going to be swift. It's just the reality of owning a company like this.
Brian Feroldi: Very much so, but man, has it paid to bet on this company doing so well. This stock is now up more than 400 percent since investors could have got their first hands on the stock. Again, this company came public in late 2019, just hats off to this management team for executing so well.
Dylan Lewis: My only regret, Brian, is that it's not sitting in my portfolio. I have a whiteboard immediately next to my computer with my new money list and it is on that list. It has been on that list for a while and I just haven't gotten around to buying it. I've seen the opportunity costs go up and up on that lack of action on my part.
Brian Feroldi: Shame on your, Dylan, shame on you. [laughs]
Dylan Lewis: Second company we're going to be talking about is Palantir, ticker PLTR. As a reminder, this is a company that specializes in data analytics for government and commercial customers. I think probably the easiest way to think about this business, Brian, is it's a tech defense contractor. It's a business that we don't see a lot of, but it's worth adding that caveat, not a tech business in the conventional sense.
Brian Feroldi: They've really got their stock by providing their data stack to governments and what the company has been shifting. They've been highly successful in that area, really landing basically all of the three-letter agencies that deal with security in United States and they've been expanding abroad. One reason I think this company actually came public, we should just bring more awareness to the company name and their brands so that could moves successfully into the commercial space, which is something that investors had a lot of questions about, but the numbers clearly prove that they are doing just that.
Dylan Lewis: I think that was probably one of the positive notes for this quarter if you look overall. Revenue grew 36 percent year-over-year, just under 400 million. They posted a GAAP loss of five cents a share. That government revenue up 34 percent year-over-year, commercial revenue of 37 percent year-over-year. But if you look at the US commercial segment up over 100 percent year-over-year, is a lot of growth there. They added over 30 net new customers and they break down the deals within that. Over 50 deals of one million or more, over 30 deals of five million or more, and 18 deals over 10 million, which is more or less in line with what they've been doing over previous quarters. The number I love to pay attention to with this business, Brian, is their total remaining deal value, and that was up 50 percent year-over-year to 3.6 million. Basically, an inventory number that helps you get a sense of what's coming down the pipe in terms of revenue down the road.
Brian Feroldi: Yeah, clearly, great to see that number growing in the right direction and what's equally as exciting to me is, again, government revenue was essentially 100 percent of this company's revenue early on and their push into the commercial sector has really intensified in the last couple of years. In this quarter, government revenue, while it's still continuing to grow, is down to about 56 percent of total revenue. That is clearly a sign that this company is succeeding at diversifying its customer base.
Dylan Lewis: Yeah, and if you look at that breakdown of their remaining deal value, commercial remaining deal value was up 100 percent year-over-year, 60 percent of that 3.6 billion figure I threw out there before is commercial, so it seems like that is where the business is heading. That is the thesis that we've been watching for a while and trying to see exactly how it plays out, just because they obviously serve their government customers very well. But we know that getting into commercial dramatically opens up TAM for them.
Brian Feroldi: It really does. One thing that we noted about this company, selling a software product like this is incredibly challenging. Multi-month, if not multi-quarter, if not multi-year process to really get the key stake opinion leaders onboard. However, once they are onboard switching away from this becomes unbelievably challenging. But getting those deals in the first place requires a lot of upfront investment by the company especially in sales and marketing, and this company has been paying for those things and increasing their spending on those categories. As long as the top continues to drive higher and there are signs that that company's customer count is growing, that expense is worth it, so it's good to see that we are seeing that happen.
Dylan Lewis: Yeah. I think because of that exact dynamic, Brian, this is a business that two people could look at the same results and takeaway something totally differently from it. If you look at the quarterly results and you say, well, actually, sequentially, we're seeing that government revenue isn't as relevant as it was a quarter ago, that might be cause for concern. I would say with this business, it's really tough to grade it on a single quarter because of that customer acquisition cycle that you mentioned. Despite what seemed like an overall pretty strong report, stock was down 15 percent since reporting. Reaction has been negative, in part because of the focus on their government segment and the concerns that the revenue is stalling out there.
Brian Feroldi: That is one thing that Palantir investors just have to be aware of upfront. As you teed up, this company signed 18 deals in the quarter that are worth $10 million, so they are targeting non-governments or enormous enterprises with their tech stock. That means that whether a deal lands in one quarter or another really impacts the top-line and can make that growth look lumpy. If you look at this company on an annual basis and just zoom out and look at the big picture, there's no doubt that they're succeeding.
Dylan Lewis: Yeah. That's why I like to focus on some of that remaining deal value. I think it helps normalize for some of the quarterly movements that we see. The thing that I like to zoom in on as well, and this is unique with Palantir, is they offer guidance, but they also offer guidance in a way that a lot of companies don't and I'm just going to pull directly from their earnings press release. "Per long-term guidance policy as provided by our CEO Alex Karp, we continue to expect annual revenue growth of 30 percent or greater from 2021 through 2025." That statement was unchanged from the previous quarter. They have that on there and it's something that obviously management cares about and they have the visibility into the business to see if they feel good about that. I don't see much in these results to think that that's going to get interrupted.
Brian Feroldi: If that's your yardstick then this quarter revenue grew at 36 percent, so they're exceeding their guidance. Like you, I do like that this company has stuck its neck out and basically said, for the next five years we're committed to growing 30 percent. Obviously, in the out-years that growth becomes harder and harder to come by as the denominator gets bigger and bigger. But so far, they are doing just that.
Dylan Lewis: Brian, the third company we're going to be talking about today is The Trade Desk a Fool favorite and I'm sure there were a lot of people pretty delighted to check their portfolios after this company reported earnings because wow, stellar movement. [laughs] You don't really see those types of single-day hikes too often.
Brian Feroldi: Yeah. As a long-term shareholder of this company, I was certainly pleasantly surprised to see that. For those that need a quick refresher, The Trade Desk is a leading platform that brands and advertisers can use to optimize their advertising spend, so The Trade Desk works with brands and ad agencies not against them. This company has been in high-growth mode ever since it come public and we saw more of the same in the third quarter. During the quarter, revenue was up 39 percent to 301 million, that exceeded Wall Street's estimate by 17 million. Margins were up basically across the board. As a result, adjusted net income grew 43 percent to $89 million or 18 cents per share. That exceeded Wall Street's estimates and the numbers would have been even more impressive, in the year-ago period, they had a very, very low tax bill. This year, they had a more normalized tax bill, so headline numbers here, great.
Dylan Lewis: Yeah. In addition to the tax elements, they were also lapping a period where they were going up against the US election spending. We know there's a seasonality that comes with the holiday quarter Brian, but there's [laughs] also the much broader seasonality that comes with the election cycle with advertising spend, and so these are impressive numbers, just knowing they were going up against some pretty tough comps.
Brian Feroldi: Yeah. Management pointed out that if you exclude the impact of the US election on spending last year, normalized or growth would have been 47 percent. Equally as exciting to me, management here noted that their international growth was even faster than their domestic growth. If you are a long-term investor in this company, that should bring a smile to your face because the international opportunity for this company is huge and it's great to see that they are exceeding there.
Dylan Lewis: Yeah, and the reaction to these results was incredibly strong. I think shares are up about 35-40 percent since the company reported. I think a big reason for that Brian is there were a lot of concerns swirling around ad-based businesses. There have been a lot of shifts in the market right now and would relate it to data, related to privacy, and I think a lot of people were concerned about that having an impact on how effective ads are and what that does for ad-based businesses, marketing ROI, all that kind of stuff. So nice to see these results, but I think management's comments were also maybe relieving for investors.
Brian Feroldi: Yeah. Investors have been worried essentially ever since Apple said that it was doing away with cookies and Google followed suits saying that those changes are coming in 2023. But how is this for a quote, "iOS changes had no material impact on our business and we expect that to continue to be the case." That's actually not new commentary from CEO Jeff Green. He has essentially been saying that for years and the company has been planning for that change out for many years with the rollout of a product that they've created called a unified ID, which is the company's own answer to cookies. They have been signing up brands and partners that have gotten on board with that standard change for a long time. Just in the recent quarter, they had wins with Interpublic Group, Omnicom Group, two of which are massive advertisers and companies like Snowflake. So CEO Green has been very clear this entire time, this isn't going to impact us and these numbers, I think the market finally said, OK, we believe you.
Dylan Lewis: Yeah. I would say few CEOs are as dialed in to their industry as Jeff Green at The Trade Desk. Incredibly visionary [laughs] leader, really knows his space well. I think what people have to remind themselves when it comes to some of these data fidelity type concerns is the other decision is non-digital ads. The marketer spend is something that is zero-sum. If money goes in one place, it's probably not going to go to another place, and Brian, I think even if you have less tracking in digital ad spend, you still have more tracking than if you were advertising on a billboard or advertising on a TV program.
Brian Feroldi: Way more. That is one big reason why I believe that all advertising spend will essentially go digital. The analytics you get, the feedback you get, it's just so much superior than essentially putting it on TV and saying boy we hope. Now on that front the company actually had a really big win earlier this year when it signed up Walmart. It partnered with Walmart to launch its own Walmart demand side platform. This new tool give suppliers to Walmart first-party data that allows them to connect how they're spending on The Trade Desk with actual sales data in Walmart. Management also said that other major retailers are showing interest in exactly this thing panning out, so talk about making advertising spend even more effective. If they can get other big retailers onboard, that would do wonderful things for analytics for advertisers.
Dylan Lewis: Yeah, that's the dream. Is to be as connected as possible and to have as much insight as possible into what you're spending, but also then the activity that it's driving. Brian, The Trade Desk has been probably one of the best performers of Fool stocks in the last five years. I think it's probably pretty safe to say that the returns are staggering if you were someone who bought in early. They are staggering even if you only bought in the last year or so. It's just been one of those performers that has continued to put up great results. The story looks like it will continue based on what we've gotten in terms of guidance. We have to moderate our expectations just a smidge, I think.
Brian Feroldi: I would say so. But for the upcoming quarter, management is guiding for revenue growth of "At least 21 percent to about $388 million." I think it's fair to say they're going to exceed that number and also, it's worth keeping in mind that might not sound great in absolute terms. It also includes the period when the election actually happens, so that just gives this company a really tough comp to go off of. I think, like we've said with many companies that we've talked about in earnings season, 2022 is when we're going to see "Normalized" [laughs] earnings and normalized growth rates for the company. But as a shareholder, I'll accept 21 percent growth all day.
Dylan Lewis: Yeah. That's fantastic. I think the business has reached a point where it is so clearly the leader in its space. As the industry moves, I think it will move with it. It's not really at a spot where it will be supplanted by somebody else. It's established itself and I think it's got the moat. These partnerships that we are seeing it developed only I think further instill that.
Brian Feroldi: Yeah, and the more Unified ID gets rolled out, the more this company becomes the leader. Of course, there's social proof that comes from lending Walmart to say nothing if they can lend, Target, Costco, etc.
Dylan Lewis: Brian, we didn't prepare this in notes, but I want to ask this question. Do you think Unified ID allows for them to develop a network effect like data collection and actually could be a strength for them? They could emerge as a stronger business after all of the Apple-Google data-tracking kerfuffle than they were before?
Brian Feroldi: I definitely think so. That to me is an answer. It's a industrywide answer to cookies. I think it elevates their brand name within the industry, but I don't think it's just them that's got to win for that. I think basically all advertisers are going to win.
Dylan Lewis: There you go. Well, Brian, as always, love talking tech stocks with you, love talking earnings, and loved that. I missed the boat on Datadog and we both get to enjoy the stronger results of The Trade Desk.
Brian Feroldi: Just shows I shouldn't make for them any company name when they come public ever again.
Dylan Lewis: Listeners that's going to do it for this episode of industry focus. If you have any questions or you want to reach out and say, hey, shoot us an email at industryfocus@fool.com. Or you can tweet us at MFIndustryFocus. If you're looking for more of our stuff, subscribe on iTunes, Spotify, or wherever you get your podcasts. As always, people on the program may own companies discussed on the show. The Motley Fool may have formal recommendations for or against stocks mentioned. Don't buy or sell anything based solely on what you hear. Thanks to Tim Sparks for his work behind glass today, and thank you for listening. Until next time, fool on.
Dylan Lewis: That's a wrap.
Brian Feroldi: We have seven minutes left.
Dylan Lewis: We have seven minutes.
Brian Feroldi: That's not bad.
Dylan Lewis: That's pretty good. We didn't give a specific target in our guidance for Q&A. [laughs]. We just said less than we normally do and we exceeded. I want to hit the second question here. This is from Aaron because I have an immediate and good answer to it. I feel like I should prioritize that one. "If you didn't have a full position in Pinterest, would you be adding at these levels?" Aaron, I do not yet have my full position in Pinterest. I have probably about a third of what I want. I'm down on that position. I'm in the red. My plan is to add, I need to stop talking about it so that I can actually add to the position. But my plan is to continue to build that out. I will say I am still bullish. I am a little bit less bullish than when I first bought, but I see such a massive opportunity like we talked about in the show, with the average revenue per user growth that's available. Just what they're able to do in terms of scaling their ad business. There's so much there and I think there's some optionality with e-commerce. There's clearly interest from the likes of PayPal. I think other people are recognizing opportunity there, which is helping me stay bullish on the stock.
Dylan Lewis: Brian, are you at a full position with Pinterest, or are you still building it out?
Brian Feroldi: Well, I guess I can't talk about it for today, [laughs] so no, I'm not at a full position on Pinterest. The fact that it was trading at essentially 30 times forward earnings the last I looked really had me go, "Hmm." Like you, my enthusiasm for Pinterest took a little bit of a gut punch given what's happened with user growth, but it's hard to say, is that permanent or is that just what's happening right now? Look at all of the major streaming services. Netflix, Disney plus, Paramount, Peacock, all of them. HBO reported massive slowdowns in growth, and investors are throwing up their hand. But basically, that's a macro factor that these companies have no control over. It's going to be something that investors need to watch long-term. But my excitement level for Pinterest is been declined. But getting at the valuation that it is at today, I think it compensates investors for that.
Dylan Lewis: I want to hit the top question here, "Hey, Dylan and Brian," this is from Darrin BFOF. "Nice start for market for Nextdoor post-SPAC merger up another seven percent today. Have you been following?" Brian, is this a business you're familiar with at all?
Brian Feroldi: The only reason I'm familiar with it is because I became a user somehow one, and I know that Sarah Friar, the former CFO at Square, is the CEO here. I was just actually listening to a podcast she did with Patrick O'Shaughnessy yesterday. She is a sharp Executive. I haven't looked closely at the business at all. But maybe we should do a show on them.
Dylan Lewis: Yeah. I will say there are some pretty interesting elements and for folks that are not familiar, it's social media. But I would say like hyper-local social media. It's basically connecting people that live in the same neighborhood, creating that sense of digital community. Sarah Friar is an incredible executive. Square was ridiculously well-run and was an incredible performer while she was at the company. I was actually a little worried about my Square holdings when she left because I realize I don't know if she is running the show or if Jack Dorsey is running the show. Square's been fine since then. But I think she is a great executive to invest alongside. I think there's good opportunity here. We've seen that social media ad monetization is a successful business model. I haven't dug into the S1 for this business yet. I can't say anything too intelligent beyond that though.
Brian Feroldi: Is it? What's the ticker symbol?
Dylan Lewis: I think it's KIND, K-I-N-D, but I think just debuted this week or last week.
Brian Feroldi: Okay.
Dylan Lewis: Yeah. Let's see what else we got here, Brian.
Brian Feroldi: I look forward to digging in.
Dylan Lewis: Question here. "Brian, SEMrush scored highly on your checklist. Are you planning to buy any shares? Does the fact that they are a Russian company give you any pause?" Brian, am I asking you a question about a company you can't talk about?
Brian Feroldi: I guess I can't buy shares for two more days now. Dylan, thanks so much. We have not coordinated this ahead of time.
Dylan Lewis: I'm sorry.
Brian Feroldi: I did an interview with SEMrush's CFO, Brian Stoffel and I had interviewed their CFO earlier this week. Have you looked at them at all, Dylan?
Dylan Lewis: I know the user side of it. I haven't looked at the business yet.
Brian Feroldi: Okay.
Dylan Lewis: Yeah.
Brian Feroldi: I have a feeling you don't like what you see.
Dylan Lewis: Yeah. What I will say, not having looked at the financials for this business is there are some kind of Salesforce-like elements to this business or Autodesk-like elements to this business where if you work in search engine optimization, SEMrush is the tool. It is what people use. It is industry standard. That has proven to be a very successful investing strategy in software-as-a-service businesses is to identify those must-have providers and just know until a better tool comes wrong, that's what people are going to use.
Brian Feroldi: Let me go through it over and under here. What blew me away about SEMrush. The company did $49 million in revenue last quarter. Ballpark, what do you think there's stock-based compensation would be for the quarter?
Dylan Lewis: Do they just come public?
Brian Feroldi: They just came public.
Dylan Lewis: Was it like 500 million?
Brian Feroldi: Six hundred thousand. [laughs] Correct.
Dylan Lewis: How does that work?
Brian Feroldi: Correct. [laughs] Their year-to-date stock-based compensation expense is 1.8 million. Correct. You heard that reaction, it's correct. [laughs]
Dylan Lewis: I'd have to look and see what their equity program looks like for employees.
Brian Feroldi: It must be terrible. [laughs]
Dylan Lewis: It makes me wonder how much skin in the game the people that work there have.
Brian Feroldi: I would guess that's actually pretty low. The co-founders own so much stock. Tons of stocks, but their salaries seem to be the way that they're compensated. But when I was looking at it, I was just like, is that a typo? Is there a zero missing, at least one?
Dylan Lewis: Yeah.
Brian Feroldi: If you don't like an illusion.
Dylan Lewis: Five hundred million is a ludicrous guess.
Brian Feroldi: Yes.
Dylan Lewis: But I still can't believe it's denominated in thousands.
Brian Feroldi: Correct. If you look year-to-date, including their IPO, 1.8 million.
Dylan Lewis: Brian, we are at noon, so I think we are going to have to turn things over to the next hour in programming. But as always, so awesome to head into the weekend getting to talk stocks with you on Friday.
Brian Feroldi: I always enjoy it, Dylan.
Dylan Lewis: [laughs] Folks, that is going to do if our Industry Focus taping. Up next, we have a Backstage Pass original Upgrade or Top Grade, Monetizing Users on the Internet. That's got to pick it up nicely from what we were just talking about, Brian. Hope you all enjoy that and I hope you guys enjoy your weekend. Until we see you again next time, Fool on.
Suzanne Frey, an executive at Alphabet, 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. Brian Feroldi owns shares of Alphabet (A shares), Datadog, Meta Platforms, Inc., Netflix, PayPal Holdings, Pinterest, Square, The Trade Desk, and Walt Disney. Dylan Lewis owns shares of Alphabet (A shares), Apple, PayPal Holdings, Pinterest, Spotify Technology, Square, The Trade Desk, and Walt Disney. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Costco Wholesale, Datadog, Meta Platforms, Inc., Netflix, Palantir Technologies Inc., PayPal Holdings, Pinterest, Spotify Technology, Square, The Trade Desk, and Walt Disney. The Motley Fool recommends the following options: long January 2022 $75 calls on PayPal Holdings, 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.
|
Tune in for a breakdown on how commercial revenue is poised to become a bigger part of the pie for Palantir (NYSE: PLTR), how DataDog (NASDAQ: DDOG) keeps cruising along, and why ad tracking concerns shouldn't faze The Trade Desk (NASDAQ: TTD) shareholders. A $60 million deal over five-years were signed during the quarter, and the metric that we love to look at, dollar-based net revenue retention, which yes, includes churn. Dylan Lewis: Brian, every now and then, we will find a company where I feel like we can distill the thesis down to a very specific number to help immediately communicate how good the business is, or what the opportunity is.
|
Tune in for a breakdown on how commercial revenue is poised to become a bigger part of the pie for Palantir (NYSE: PLTR), how DataDog (NASDAQ: DDOG) keeps cruising along, and why ad tracking concerns shouldn't faze The Trade Desk (NASDAQ: TTD) shareholders. Brian Feroldi owns shares of Alphabet (A shares), Datadog, Meta Platforms, Inc., Netflix, PayPal Holdings, Pinterest, Square, The Trade Desk, and Walt Disney. Dylan Lewis owns shares of Alphabet (A shares), Apple, PayPal Holdings, Pinterest, Spotify Technology, Square, The Trade Desk, and Walt Disney.
|
Tune in for a breakdown on how commercial revenue is poised to become a bigger part of the pie for Palantir (NYSE: PLTR), how DataDog (NASDAQ: DDOG) keeps cruising along, and why ad tracking concerns shouldn't faze The Trade Desk (NASDAQ: TTD) shareholders. Dylan Lewis: Brian, every now and then, we will find a company where I feel like we can distill the thesis down to a very specific number to help immediately communicate how good the business is, or what the opportunity is. Brian Feroldi: Yeah, clearly, great to see that number growing in the right direction and what's equally as exciting to me is, again, government revenue was essentially 100 percent of this company's revenue early on and their push into the commercial sector has really intensified in the last couple of years.
|
Tune in for a breakdown on how commercial revenue is poised to become a bigger part of the pie for Palantir (NYSE: PLTR), how DataDog (NASDAQ: DDOG) keeps cruising along, and why ad tracking concerns shouldn't faze The Trade Desk (NASDAQ: TTD) shareholders. Brian Feroldi: This is why we always say watch the business, not the stock. That's one thing I like about this company.
|
ab83b9ff-99fc-4204-904a-5cb5b778e267
|
718797.0
|
2021-11-17 00:00:00 UTC
|
Is C3.ai Stock a Buy?
|
DDOG
|
https://www.nasdaq.com/articles/is-c3.ai-stock-a-buy
|
nan
|
nan
|
C3.ai (NYSE: AI) has burned a lot of investors since its initial public offering (IPO) last December. The artificial intelligence software company went public at $42 per share, started trading at $100, and hit an all-time high of $183.90 right before Christmas.
However, C3.ai's stock price subsequently dropped back to the high $40s as its revenue growth stalled out. But should investors consider buying this former Wall Street darling ahead of its next earnings report on Dec. 1?
Image source: Getty Images.
What happened to C3.ai?
C3.ai develops AI algorithms, which can either be plugged into a company's existing software applications or accessed as pre-built cloud services. These algorithms can help large companies streamline their supply chains, improve their safety, cut costs, detect fraud, and make other data-driven decisions.
C3.ai initially gained a lot of attention for two reasons. First, it was founded by Thomas Siebel, who previously co-founded Siebel Systems and oversaw its $5.85 billion sale to Oracle in 2006.
Second, C3.ai was growing like a weed. Its revenue surged 88% in 2018, 48% in 2019, and 71% to $157 million in fiscal 2020, which ended last April.
Why did C3.ai lose its luster?
C3.ai initially dazzled investors with its explosive growth rates, but it generated most of its revenue from large industrial and energy companies. Pandemic-related disruptions to those sectors throttled its growth in fiscal 2021, and its revenue rose just 17% to $183 million.
C3.ai's number of customers increased 82% to 89 in 2021, but its average contract value dropped from $12.1 million to $7.2 million. The company claims that reduction is intentional, since it wants to reduce its dependence on large "elephant" clients, but that decline is throttling its top-line growth.
Its gross margin rose by a percentage point to 76% in fiscal 2021, but its net loss only narrowed slightly, from $69 million to $56 million. Its slowing growth, red ink, and frothy valuation -- which surpassed 80 times its fiscal 2020 revenue last December -- caused the stock to lose some luster.
But is C3.ai's business stabilizing?
In the first quarter of fiscal 2022, C3.ai's revenue rose 29% year over year to $52 million. Its number of customers rose 85% to 98, but its average contract value declined again to just $4.5 million.
Its gross margin increased from 74% to 75%, but it remained unprofitable with a net loss of $37 million -- compared to a slim profit a year earlier.
For the full year, C3.ai expects its revenue to increase 33%-35% as the pandemic-related headwinds fade. It also expects new partnerships -- including a co-selling agreement with Alphabet's Google Cloud and an AI development partnership with Snowflake -- to boost its sales.
However, C3.ai still expects its adjusted operating loss to roughly triple to $107-$119 million this year as it ramps up its investments again.
Is C3.ai's stock still overvalued?
C3.ai's stock still isn't cheap at 20 times this year's sales, but that price-to-sales ratio looks a lot healthier than its nosebleed valuations last December. It could also be justified if C3.ai exceeds analysts' expectations for 34% sales growth in both fiscal 2022 and 2023.
By comparison, Palantir (NYSE: PLTR), which collects and analyzes data for government agencies and large companies, still trades at 30 times this year's sales. It expects its revenue to rise 40% this year.
Datadog (NASDAQ: DDOG), which helps IT professionals oversee a company's infrastructure on unified dashboards, expects its revenue to rise 65% this year. Its stock trades at about 60 times that estimate.
Therefore, C3.ai's stock isn't terribly overvalued anymore -- but there's still a lot of optimism baked into its valuations.
Should you buy C3.ai before its second-quarter earnings?
C3.ai might surprise investors with a big earnings beat in December, but any sign of weakness could spark an ugly sell-off in this wobbly market.
I'd wait for C3.ai to post its earnings report in early December and see if its gross margins are still expanding, if its contract values are stabilizing, and if it maintains or boosts its full-year guidance before buying the stock. Until then, I'd prefer to stick with other high-growth stocks to profit from the booming AI market.
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 November 10, 2021
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Palantir Technologies Inc. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), C3.ai, Inc., Datadog, Palantir Technologies Inc., 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.
|
Datadog (NASDAQ: DDOG), which helps IT professionals oversee a company's infrastructure on unified dashboards, expects its revenue to rise 65% this year. These algorithms can help large companies streamline their supply chains, improve their safety, cut costs, detect fraud, and make other data-driven decisions. Its slowing growth, red ink, and frothy valuation -- which surpassed 80 times its fiscal 2020 revenue last December -- caused the stock to lose some luster.
|
Datadog (NASDAQ: DDOG), which helps IT professionals oversee a company's infrastructure on unified dashboards, expects its revenue to rise 65% this year. In the first quarter of fiscal 2022, C3.ai's revenue rose 29% year over year to $52 million. It also expects new partnerships -- including a co-selling agreement with Alphabet's Google Cloud and an AI development partnership with Snowflake -- to boost its sales.
|
Datadog (NASDAQ: DDOG), which helps IT professionals oversee a company's infrastructure on unified dashboards, expects its revenue to rise 65% this year. Its slowing growth, red ink, and frothy valuation -- which surpassed 80 times its fiscal 2020 revenue last December -- caused the stock to lose some luster. C3.ai's stock still isn't cheap at 20 times this year's sales, but that price-to-sales ratio looks a lot healthier than its nosebleed valuations last December.
|
Datadog (NASDAQ: DDOG), which helps IT professionals oversee a company's infrastructure on unified dashboards, expects its revenue to rise 65% this year. In the first quarter of fiscal 2022, C3.ai's revenue rose 29% year over year to $52 million. 10 stocks we like better than C3.ai, Inc.
|
c2e013db-8bdd-4de5-ba83-ef5ca5a0e826
|
718798.0
|
2021-11-17 00:00:00 UTC
|
February 2022 Options Now Available For Datadog (DDOG)
|
DDOG
|
https://www.nasdaq.com/articles/february-2022-options-now-available-for-datadog-ddog
|
nan
|
nan
|
Investors in Datadog Inc (Symbol: DDOG) saw new options begin trading today, for the February 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 93 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new February 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $190.00 strike price has a current bid of $17.35. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $190.00, but will also collect the premium, putting the cost basis of the shares at $172.65 (before broker commissions). To an investor already interested in purchasing shares of DDOG, that could represent an attractive alternative to paying $191.01/share today.
Because the $190.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. 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 9.13% return on the cash commitment, or 35.84% 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 $190.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $195.00 strike price has a current bid of $15.90. If an investor was to purchase shares of DDOG stock at the current price level of $191.01/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $195.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.41% if the stock gets called away at the February 2022 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 $195.00 strike highlighted in red:
Considering the fact that the $195.00 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 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 8.32% boost of extra return to the investor, or 32.67% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 52%, while the implied volatility in the call contract example is 53%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $191.01) to be 49%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls 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.
|
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 $195.00 strike highlighted in red: Considering the fact that the $195.00 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 February 2022 expiration.
|
Below is a chart showing DDOG's trailing twelve month trading history, with the $195.00 strike highlighted in red: Considering the fact that the $195.00 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 February 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new February 2022 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 $195.00 strike highlighted in red: Considering the fact that the $195.00 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 February 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new February 2022 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the DDOG options chain for the new February 2022 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 $195.00 strike highlighted in red: Considering the fact that the $195.00 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 February 2022 expiration.
|
25dc2208-cc13-4027-81cf-a18534e5d705
|
718799.0
|
2021-11-16 00:00:00 UTC
|
Why Datadog Stock Is Still a Smart Buy
|
DDOG
|
https://www.nasdaq.com/articles/why-datadog-stock-is-still-a-smart-buy
|
nan
|
nan
|
Datadog (NASDAQ: DDOG) specializes in monitoring and analytics. Specifically, its software platform leans on artificial intelligence to identify performance and security issues across infrastructure, applications, and networks, helping clients accelerate the investigation and resolution of problems in their digital ecosystem.
In this Backstage Pass video, which was recorded on Nov. 5, 2021, Motley Fool contributor Brian Withers and Fool analyst Tim Beyers discuss Datadog's third-quarter financial results, while also highlighting the company's prospects for future growth.
10 stocks we like better than Datadog
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Brian Withers: I'm going to start with Datadog. Let me share the screen first. They had a blowout quarter. Oh, my gosh. Beat and raise -- $270 million, up 75% year-over-year. I don't particularly like non-GAAP earnings per share, but they doubled analyst expectations there and then blew away by about $30 million, I think, the outlook from what analysts were saying for the quarter.
I had to cut back on the highlights year. The $100,000 customers, the ARR, annual recurring revenue, up 66%. So their biggest customers, these customers here make up 80% of their annual recurring revenue. This free cash flow -- man, you can't ask for a better one -- doubling year-over-year. Dollar base net revenue retention; this was 130%. We'll do it on the fly, 130, pretty solid number all around.
They have tons of customers using four or more products. That's up from 20%. Then what's exciting to me, Tim, is that the new logos are coming in and not just landing with one platform or one product, but coming in with two. Then their dash conference, they just announced a ton of products. Just adding to their ecosystem of things that can land and expand with customers. It's been a little bit of a rocky ride this year, but they've soundly beat the S&P 500 over the last year. And almost any period you look at with Datadog since it went public, it's been tremendous.
Tim Beyers: The dogs got bite. We've been saying that for a while. There's a couple of things just to add some color on this, principally from the call. This is not from the call, but this is just what we know using it internally at The Motley Fool. The way that Datadog or Datadog depending upon you say tomato I say tomato, whatever. The way that they sell product is they turn on a service and they expose it to their customers and say, "what do you think of this?" They just turn it on, and you're not paying for it yet. You're just trying it out. And as they get feedback on those features, those become the products that find their way into beta programs that become a little more official. Which is how you scale with minimal investment and rising gross margins to a billion dollars -- with a "B" -- a billion dollars in annual recurring revenue, because that's where they are now. That's where they entered in this quarter.
A couple of other things that they are looking at right now, and why you should believe that Datadog is going to keep growing, the number of products that are in beta but not yet fully baked. Cloud cost management, which is something we know is an issue. Like you have a series of relationships with cloud providers. How much are you actually paying those cloud providers? Could you get away with paying a little bit less? How would you optimize that? As a service that observes everything you're doing in your network, Datadog has some insights about that. They have some insights about security. They have insights about all things. Each one of those insights, Brian, can become a product that leads to that very high -- and by the way, that 130%, they don't give a specific number. They've just done that repeatedly for I don't even know how many quarters in a row now. It's a minimum of eight that they've done this. It's quite a few. They are getting customers to spend more. The way that they get the spend more is by providing more value. Verifying that value at the point where the customer is and not charging for it. Then once they prove value, then they make it something that you can pay for. It's insidious and brilliant, but it's also customer-friendly, which I really like. Yeah, I'm going to get the chance to interview the CEO, Olivier Pomel, at some point here soon. I'm looking forward to it because, like I said, dogs got bite.
Brian Withers: Yeah. It was really excited about the quarter and been excited about the company for a long time. They spent a lot of time at their dash conference for their investor and product releases talking about how the information technology world is just getting more complex and Datadog fits right in there and helps you look at all of that complexity and one pane of glass. And I think they've got a long runway ahead.
Tim Beyers: Yeah, agreed. I mean, they are generating cash flow. They have a very strong balance sheet. They have a high hit rate with, I think, their R&D dollars. That's what it looks like, which you like to see, because R&D dollars can go into a black hole. It's not that their dollars are better, it's their process does appear to be a little bit better and that's worth paying up for. You asked before on somebody else whether or not it's too late to buy X. I don't think it's too late to start a small position in Datadog. It's up. It's not cheap. Recognize it's going to be a volatile stock over a long period of time. But getting a share or two, it's not a bad idea and then maybe build it out over a long period of time. Just slow build, slow build. Keep it going because this is a very good company.
Brian Withers owns shares of Datadog. Tim Beyers has no position in any of the stocks mentioned. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Datadog (NASDAQ: DDOG) specializes in monitoring and analytics. Specifically, its software platform leans on artificial intelligence to identify performance and security issues across infrastructure, applications, and networks, helping clients accelerate the investigation and resolution of problems in their digital ecosystem. In this Backstage Pass video, which was recorded on Nov. 5, 2021, Motley Fool contributor Brian Withers and Fool analyst Tim Beyers discuss Datadog's third-quarter financial results, while also highlighting the company's prospects for future growth.
|
Datadog (NASDAQ: DDOG) specializes in monitoring and analytics. In this Backstage Pass video, which was recorded on Nov. 5, 2021, Motley Fool contributor Brian Withers and Fool analyst Tim Beyers discuss Datadog's third-quarter financial results, while also highlighting the company's prospects for future growth. Which is how you scale with minimal investment and rising gross margins to a billion dollars -- with a "B" -- a billion dollars in annual recurring revenue, because that's where they are now.
|
Datadog (NASDAQ: DDOG) specializes in monitoring and analytics. In this Backstage Pass video, which was recorded on Nov. 5, 2021, Motley Fool contributor Brian Withers and Fool analyst Tim Beyers discuss Datadog's third-quarter financial results, while also highlighting the company's prospects for future growth. 10 stocks we like better than Datadog When our award-winning analyst team has a stock tip, it can pay to listen.
|
Datadog (NASDAQ: DDOG) specializes in monitoring and analytics. In this Backstage Pass video, which was recorded on Nov. 5, 2021, Motley Fool contributor Brian Withers and Fool analyst Tim Beyers discuss Datadog's third-quarter financial results, while also highlighting the company's prospects for future growth. Each one of those insights, Brian, can become a product that leads to that very high -- and by the way, that 130%, they don't give a specific number.
|
d8272035-0762-44eb-b4e9-34bf873db47f
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.