Datadog: The Ultimate GARP Play

Oct. 20, 2023 5:09 AM ETDatadog, Inc. (DDOG) StockDDOG4 Comments
PropNotes
7.32K Followers

Summary

  • Datadog is an excellent opportunity for GARP-minded investors.
  • The company boasts strong revenue growth, stable profits, and a reasonable valuation, and it has beaten estimates every single quarter since IPO.
  • Datadog's product suite and market opportunity position it for continued success, with high switching costs and a growing demand for observability and monitoring solutions.
  • The valuation is reasonable.
  • We rate DDOG a 'Strong Buy'.

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If you would, close your eyes for a moment and think about what the ideal investment looks like.

This, of course, will depend on your investing style and market philosophy, but if you're like us, you're probably thinking about

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Analyst’s 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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