Data Dog Stock Overview and Market Analysis

Author

Posted Oct 27, 2024

Reads 406

Smartphone Displaying Stock Market Chart
Credit: pexels.com, Smartphone Displaying Stock Market Chart

Data Dog is a popular data analytics platform used by businesses to track and analyze customer behavior. It's a publicly traded company, listed on the NASDAQ stock exchange under the ticker symbol DDOG.

Data Dog's revenue growth has been impressive, with a 47% year-over-year increase in Q1 2022. This rapid expansion has led to increased investor interest and a subsequent rise in stock price.

The company's strong financials are a major draw for investors, with a gross margin of 82% and a net income margin of 24%. These numbers demonstrate Data Dog's ability to maintain profitability while growing its business.

Data Dog's stock price has been steadily increasing over the past year, with a high of $143.90 and a low of $73.50. This volatility can be attributed to the company's rapid growth and changing investor sentiment.

Curious to learn more? Check out: Stock Dog Names

Financial Performance

Datadog's financial performance is a key area to focus on, and the company has been doing well in this regard. The company's total cash is a healthy $2.96 billion as of the most recent quarter.

Credit: youtube.com, Datadog Stock Analysis (DDOG Stock): Best in breed SaaS stock down 25%! Hyper growth but expensive!

Datadog's revenue growth has been impressive, with a 26% jump to $690 million in the most recent quarter, beating estimates. This is a testament to the company's strong spending patterns by enterprise customers.

The company's profitability is also noteworthy, with a profit margin of 6.81% and a return on equity (ROE) of 8.04%. These metrics indicate that Datadog is generating significant profits from its operations.

Here are some key financial metrics for Datadog:

  • Total Cash (mrq): $2.96 billion
  • Revenue (ttm): $2.39 billion
  • Profit Margin: 6.81%
  • Return on Equity (ROE): 8.04%

Datadog's levered free cash flow is also substantial, standing at $859.46 million as of the most recent quarter. This indicates that the company has a strong ability to generate cash from its operations.

Financial Statements

Datadog's financial performance is a key area to focus on. The company has a total cash of $2.96 billion as of the most recent quarter. This is a significant amount of liquidity that can be used to invest in the business, pay off debt, or return value to shareholders.

Credit: youtube.com, FINANCIAL STATEMENTS: all the basics in 8 MINS!

Datadog's debt-to-equity ratio is 39.98%, which indicates that the company has a relatively high level of debt compared to its equity. This could be a concern for some investors, but it's worth noting that the company has been generating strong free cash flow, which can be used to pay off debt.

Datadog's profitability is also worth examining. The company has a profit margin of 6.81%, which is a relatively healthy level of profitability. However, the return on assets (ROA) is only 0.78%, which suggests that the company's assets are not generating a lot of value.

Here's a summary of Datadog's key financial metrics:

The company's revenue growth has been strong, with a 26% increase in the most recent quarter. This is a good sign for investors, as it suggests that the company is continuing to grow and expand its customer base.

Datadog's earnings per share (EPS) are also worth noting. The company's EPS is $0.47, which is a relatively low level compared to other companies in the industry. However, the company's EPS is expected to grow in the coming years, with estimates suggesting that it will reach $3.49 by 2028.

The company's current share price is $124.45, which is a significant increase from its 52-week low of $98.80. However, the company's stock price has been volatile in recent months, with a 11-month change of -0.57%.

Key in USD

Credit: youtube.com, 5 Key Financial Ratios to Understand How Companies Operate

Let's take a closer look at the key financial data for the company, and I'll break it down in a way that's easy to understand.

The sales per share have been steadily increasing over the years, with a significant jump from $3.33 in 2021 to $6.08 in 2023.

In 2023, the P/E ratio is a whopping 875.76, which is a key indicator of the company's stock value. This is a stark contrast to the negative P/E ratios in previous years, which indicates a change in the company's financial performance.

The dividend yield is a critical aspect of a company's financial health, and in this case, it's 0.00% in 2023, which suggests that the company is not paying out any dividends to its shareholders.

Here's a breakdown of the company's equity and debt ratios:

The equity ratio has fluctuated over the years, with a significant drop in 2018 and 2017, but a notable increase in 2023.

Market Analysis

Credit: youtube.com, Is Datadog a Smart Buy? Complete Stock Analysis and Trading Tips for $DDOG

Software stocks are outperforming the chip sector this month. This is a significant trend to note, especially for investors considering a stake in Datadog.

Datadog has recently seen an upgrade, which has contributed to its rising stock value. This is a positive sign for the company and its investors.

Analysts see a buying opportunity in tech after recent volatility. This means that now could be a good time to invest in Datadog and other tech stocks.

In fact, experts recommend buying Datadog, along with other AI stocks like Amazon and Uber, right now.

Frequently Asked Questions

What is the stock forecast for 2025 for Datadog?

Datadog's stock forecast for 2025 is $159.10, representing a potential 38.47% increase. This prediction suggests a steady growth trajectory for the company.

Why is Datadog dropping?

Datadog's stock is dropping due to disappointing first-quarter results, including lower-than-expected billings and slower large contract wins. Investors are reacting negatively to these financial setbacks.

What is the dividend yield of Datadog?

As of June 03, 2024, Datadog's dividend yield is 0.00%. Currently, Datadog does not offer a dividend payout.

Sources

  1. Datadog, Inc. (DDOG) Stock Price, News, Quote & History (yahoo.com)
  2. Datadog raises annual forecast betting on AI-driven cybersecurity demand (reuters.com)
  3. Datadog Earnings Beat Expectations. Why the Stock Is Falling Anyway. (barrons.com)
  4. Datadog Rises on Upgrade. Why Software Stocks Are Edging Out Chips. (barrons.com)
  5. This Datadog Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday (benzinga.com)
  6. Datadog's AI and Growth Strategy: Why Analysts Are Bullish (benzinga.com)
  7. Datadog Announces the General Availability of Datadog Monitoring for Oracle Cloud Infrastructure (prnewswire.com)
  8. Amazon, Uber, Datadog, and 3 AI Stocks to Buy Right Now (barrons.com)
  9. Datadog Inc Registered Shs -A-Stock , DDOG - Markets Insider (businessinsider.com)
  10. Datadog Inc (datadoghq.com)
  11. open in EDGAR (sec.gov)
  12. open in google (google.com)
  13. open in marketwatch (marketwatch.com)
  14. open in reuters (reuters.com)
  15. Mar 06 05:18 PM (sec.gov)
  16. Mar 25 04:14 PM (sec.gov)
  17. Datadog Announces Second Quarter 2024 Financial Results (prnewswire.com)
  18. DDOG Alert: What's Pushing Up the Datadog Stock Price Today? (investorplace.com)
  19. Datadog Named a Leader in the 2024 Gartner Magic Quadrant For Observability Platforms (prnewswire.com)
  20. Datadog Announces the General Availability of Datadog Monitoring for Oracle Cloud Infrastructure (prnewswire.com)
  21. Datadog Announces Date of Third Quarter Fiscal Year 2024 Earnings Call (prnewswire.com)
  22. Datadog's State of Cloud Security 2024 Finds Room for Improvement in the Use of Long-Lived Credentials Across All Major Clouds (prnewswire.com)
  23. Datadog Named a Leader in the 2024 Gartner Magic Quadrant For Digital Experience Monitoring (prnewswire.com)
  24. Datadog Announces Third Quarter 2024 Financial Results (prnewswire.com)
  25. Datadog Boosts FY24 Outlook - Update (rttnews.com)
  26. www.datadoghq.com (datadoghq.com)

Ada Goodwin

Lead Writer

Ada Goodwin is a versatile writer with a passion for uncovering the hidden stories of our world. With a keen eye for detail and a love for the unusual, she has explored a wide range of topics, from the cultural history of Japan to the fascinating world of taxidermy exhibits. Her writing often delves into the lives of individual dogs, monuments, and statues, revealing the unique stories and histories behind each one.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.