Stock in Focus: Datadog, Inc. (DDOG)

Company Profile:

Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide real-time observability of its customers technology stack. Its platform also provides user experience monitoring, network performance monitoring, cloud security, developer-focused observability, and incident management, as well as a range of shared features, such as dashboards, analytics, collaboration tools, and alerting capabilities. The company was incorporated in 2010 and is headquartered in New York, New York.

Recent News:

The company will report its second quarter fiscal year 2022 financial results before the U.S. financial markets open on Thursday, August 4, 2022.

For its first quarter ended March 31, 2022, the company reported revenue of $363.0 million, an increase of 83% year-over-year. GAAP net income per diluted share was $0.03; non-GAAP net income per diluted share was $0.24.

On June 16, 2022, the company announced the launch of Datadog Observability Pipelines—a new product that enables organizations to take greater control of their data so they can reliably scale their observability practices.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

DDOG receives outperform rating in price to book value, price to earnings, discounted cash flow and debt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the both the MACD and the stochastic oscillator . The RSI stands at 54.5 with positive bias. We rate
Datadog, Inc. (DDOG) a STRONG BUY.