
Datadog (DDOG) Stock Forecast & Price Target
Datadog (DDOG) Analyst Ratings
Bulls say
Datadog's financial performance in the fourth quarter showed strong revenue growth, with total revenue climbing 25% year-over-year to $738 million, surpassing analysts' expectations. The company's increased investment in research and development (R&D) and sales and marketing (S&M), with R&D spending rising to 29% of revenue and S&M to 23%, reflects a commitment to enhancing its product offerings and market presence. Additionally, Datadog is positioned to maintain its industry-leading growth trajectory, bolstered by the ramp-up of its product portfolio and ongoing momentum from customer consolidation efforts within the industry.
Bears say
Datadog's recent financial performance is characterized by disappointing revenue growth, particularly from AI-native companies, which has led to weakened fiscal guidance for 2025, projecting revenue considerably below consensus estimates. Operating cash flow and free cash flow metrics, while positive, are overshadowed by an anticipated decline in operating margins due to increased investments in sales and marketing as well as research and development. Moreover, the company's valuation has fallen below its historical premium compared to the Macquarie Growth Software Index, indicating potential concerns regarding its growth trajectory and profitability.
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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