
Datadog (DDOG) Stock Forecast & Price Target
Datadog (DDOG) Analyst Ratings
Bulls say
Datadog experienced a robust financial performance in its recent quarter, with total revenue growing 25% year-over-year to $738 million, surpassing consensus estimates by $23 million. The company's commitment to growth is reflected in its significant investment in research and development, which increased by 29% year-over-year, now constituting 29% of its revenue, alongside a 31% year-over-year increase in sales and marketing expenses, indicating a proactive approach to capturing market share. Furthermore, the firm is well-positioned for sustained growth in annual recurring revenue (ARR) as it effectively leverages its expanding product portfolio amidst favorable industry trends and a strong demand for consolidated IT solutions.
Bears say
Datadog's financial outlook appears negative due to disappointing revenue growth from AI-native clients and conservative guidance for fiscal year 2025, which is below consensus estimates. The company's operating cash flow and free cash flow margins, while robust at approximately 33%, may be overshadowed by anticipated operating margin degradation of over 400 basis points year-over-year, diverging from long-term profitability goals. Additionally, Datadog is trading below its historical premium compared to the Macquarie Growth Software Index, further reflecting concerns about its growth trajectory and market competitiveness.
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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