
Datadog (DDOG) Stock Forecast & Price Target
Datadog (DDOG) Analyst Ratings
Bulls say
Datadog demonstrated robust financial performance in its latest quarter, with total revenue increasing by 25% year-over-year to $738 million, surpassing consensus estimates by $23 million, which highlights strong demand for its cloud-native solutions. The company's commitment to growth was evident through a significant rise in research and development expenditure, increasing 29% year-over-year, alongside a 31% increase in sales and marketing spending, reflecting strategic investments to enhance its product portfolio. Furthermore, Datadog's ability to capitalize on industry trends, such as mergers and acquisitions and customers' consolidation efforts, positions it well for sustained growth, particularly in its annual recurring revenue (ARR).
Bears say
Datadog's recent financial performance has raised concerns, particularly due to disappointing revenue growth from AI-native clients and underwhelming guidance for fiscal year 2025, which falls short of consensus estimates. The company’s expected operating margin for the upcoming year is projected to decline significantly by over 400 basis points, contrasting with its long-term target of exceeding 25%. Additionally, Datadog is currently trading below its historical average premium relative to the Macquarie Growth Software Index, indicating potential challenges in maintaining investor confidence and growth momentum.
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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