Datadog: Expensive, But Possibly Resilient In A Worsening Economy

Aug. 05, 2022 7:00 AM ETDatadog, Inc. (DDOG)DT4 Comments
Yves Sukhu profile picture
Yves Sukhu
1.97K Followers

Summary

  • Investors looking for a solid growth story in tech need look no further than Datadog, which posted another strong quarter Thursday with $406.1M in sales.
  • But, management presented a tepid outlook for 2H FY ‘22 against a backdrop of a sluggish economy.
  • However, DDOG’s APM business may prove resilient within a poor macroeconomic environment, and management may have offered the market a conservative assessment of the 2nd-half.
  • Long DDOG investors might be rewarded to hold the stock through the end of FY ‘22, noting that Q4 is often the strongest quarter for many enterprise software firms.
it"s a paddle board time!

Anastasiia Shavshyna

Lack of Vision

When my last article about Datadog (NASDAQ:DDOG) was published on October 30, 2019, the stock finished the day at $34.81. I wrote bullishly about the company back then. But, I must concede: despite having worked in the application monitoring space myself for

This article was written by

Yves Sukhu profile picture
1.97K Followers
I have a background in enterprise software. From time to time, I stray from the technology sector to write about companies that I think are worthy long-term investments.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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