
Datadog (DDOG) Stock Forecast & Price Target
Datadog (DDOG) Analyst Ratings
Bulls say
Datadog's total revenue experienced a robust growth of 25% year-over-year, reaching $738 million, which surpassed consensus estimates and demonstrated strong momentum across its product offerings. The company's strategic increase in research and development expenditures to 29% of revenue, alongside a 31% increase in sales and marketing spending, reflects its commitment to innovation and market expansion. Despite investor concerns surrounding its relationship with OpenAI, Datadog's ongoing momentum likely positions the company favorably within the industry, fueled by a growing demand for data analytics and IT infrastructure solutions.
Bears say
Datadog's recent performance indicated concerning trends, particularly with disappointing revenue growth from AI-native customers, and the company issued FY25 guidance that fell short of consensus expectations, suggesting growth of only 18%-19% year-over-year. The firm's operating cash flow stood at $265 million with a free cash flow margin of approximately 33%; however, projected investments in sales and marketing alongside research and development are expected to lead to a significant degradation in operating margins by over 400 basis points year-over-year. Furthermore, Datadog's current valuation appears low, trading below its 24-month average premium relative to the Macquarie Growth Software Index, contributing to a more cautious outlook for its stock.
This aggregate rating is based on analysts' research of Datadog and is not a guaranteed prediction by Public.com or investment advice.
Datadog (DDOG) Analyst Forecast & Price Prediction
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