Core Viewpoint - Datadog (DDOG) has been identified as a core holding, with a "Buy" rating given in 2023 due to its founder-led business model and revenue growth [1] Company Summary - The company has shown consistent revenue growth, which is a positive indicator for potential investors [1] Analyst Position - The analyst holds a beneficial long position in DDOG shares through various means such as stock ownership and options [1]

Core Viewpoint - Datadog (DDOG) has been identified as a core holding, with a "Buy" rating given in 2023 due to its founder-led business model and revenue growth [1] Company Summary - The company has shown consistent revenue growth, which is a positive indicator for potential investors [1] Analyst's Position - The analyst holds a beneficial long position in DDOG shares through various means such as stock ownership and options [1]

Group 1: AI Industry Outlook - The artificial intelligence boom is expected to continue into 2026, with AI stocks like Nvidia and Palantir Technologies outperforming the broader market in 2025 [1] - New opportunities in the AI industry may arise from less obvious areas, potentially leading to significant returns in 2026 [1] Group 2: SentinelOne Overview - SentinelOne has developed a cybersecurity platform that automates threat detection and incident response using AI, addressing the challenge of over 1,000 daily threat alerts faced by enterprise security teams [2][4] - The company's Singularity platform autonomously responds to critical incidents, easing the burden on human security teams [4] - SentinelOne's upgraded AI-powered virtual assistant, Purple AI Athena, enhances security operations by reasoning through problems and implementing solutions autonomously [5] Group 3: SentinelOne Financial Performance - SentinelOne generated $258.9 million in revenue during its fiscal 2026 third quarter, representing a year-over-year increase of 23% [6] - The company is on track to exceed $1 billion in annual revenue for the first time in fiscal year 2026 [6] - Analysts have a consensus price target of $21.41 for SentinelOne, indicating a potential upside of 42%, with a Street-high target of $30 suggesting a possible 100% increase [7][8] Group 4: Datadog Overview - Datadog has developed a cloud monitoring platform to help businesses manage their digital infrastructure and reduce downtime [12] - The company launched LLM Observability in 2024 to assist AI developers in identifying technical issues and monitoring expenditures related to large language models [13] - Datadog's advanced AI assistant, Bits AI, autonomously investigates alerts and diagnoses technical issues, further reducing downtime [14] Group 5: Datadog Financial Performance - Datadog had approximately 32,000 customers at the end of Q3 2025, with 5,000 using at least one AI product, marking a 67% increase year-over-year [15] - Revenue from AI-native customers doubled during the quarter, accounting for 12% of Datadog's total revenue of $886 million [15] - Analysts have an average price target of $214.67 for Datadog, suggesting a potential 57% increase, with a Street-high target of $260 indicating a possible 91% upside [16]

Core Viewpoint - MoffettNathanson maintains a Buy rating and a $255 price target on Datadog, citing the stock's recent decline as an attractive entry point for investors [1] Group 1: Company Performance - Datadog delivered one of the strongest quarters in its coverage universe during the 2025 earnings season, driven by accelerating AI-native workloads [1] - Despite strong fundamentals, Datadog is projected to finish 2025 with negative returns due to a swift and severe selloff [2] Group 2: Market Conditions - The recent stock pullback is viewed as overdone, presenting a compelling buying opportunity as the company heads into 2026 [2] - Datadog is well positioned to benefit from ongoing cloud adoption and the increasing complexity of IT environments driven by generative AI, although macroeconomic conditions remain challenging [2]

Core Insights - Datadog (DDOG) and Five9 (FIVN) are significant players in the enterprise cloud software sector, focusing on cloud monitoring and contact center solutions respectively, both essential for digital-first enterprises [1][2] Industry Overview - The global enterprise software market is expected to reach $517.26 billion by 2030, with a CAGR of 12.1% from 2025 to 2030, indicating substantial growth opportunities for companies like DDOG and FIVN as cloud adoption and AI integration accelerate [2] Datadog (DDOG) Analysis - Datadog provides a unified observability and monitoring platform, facilitating the management of cloud infrastructure as enterprises shift to hybrid and multi-cloud environments [4] - The Zacks Consensus Estimate for DDOG's fourth-quarter 2025 revenues is $914.55 million, reflecting a year-over-year growth of 23.9% [4] - Datadog's consumption-based revenue model aligns with customer cloud spending but introduces revenue volatility during economic uncertainty [4] - The company supports over 1,000 integrations and has a platform strategy that consolidates multiple monitoring tools, with 84% of customers using more than two products [5] - Datadog faces competition from hyperscaler-native monitoring tools and open-source alternatives, which exert pricing pressure [5] - The Zacks Consensus Estimate for DDOG's fourth-quarter EPS is 55 cents, indicating a year-over-year growth of 12.24% [7] Five9 (FIVN) Analysis - Five9 operates a cloud-based contact center platform that enables enterprises to manage customer interactions across various channels, benefiting from the shift towards AI-driven customer experience [8] - The Zacks Consensus Estimate for FIVN's fourth-quarter 2025 revenues is $297.7 million, indicating a year-over-year growth of 6.83% [8] - FIVN's subscription-based model provides predictable cash flows through multi-year contracts, enhancing revenue stability [8] - The platform approach allows for orchestrating interactions between AI and human agents, creating a competitive advantage through improved customer satisfaction [11] - Strategic partnerships, such as with ServiceNow, Salesforce, and Google Cloud, are significant growth catalysts for Five9 [12] - The Zacks Consensus Estimate for FIVN's fourth-quarter EPS is 79 cents, showing a year-over-year growth of 1.3% [13] Price Performance and Valuation - Over the past six months, Datadog shares have increased by 5.3%, while Five9 shares have decreased by 26.1%, reflecting differing investor sentiments [14] - Datadog trades at a forward sales multiple of 11.94x, significantly higher than FIVN's 1.23x, indicating a premium valuation for DDOG [17] Conclusion - Both Datadog and Five9 are well-positioned to benefit from long-term trends in enterprise software and AI adoption, but Five9 appears to offer a better risk-reward profile at current levels due to its predictable revenues and focused use case [19]

Core Viewpoint - The recent pullback in prices for certain AI stocks presents a potential buying opportunity, particularly for The Trade Desk and DataDog, which are down 73% and 30% from their recent highs respectively [1][2]. The Trade Desk - The Trade Desk's stock has significantly declined in 2025 due to internal and external challenges, including disappointing fourth-quarter revenue and earnings that fell short of expectations [4]. - Revenue growth for the first three quarters of 2025 is up 20%, but this is slower compared to 27% growth in the same period the previous year, with third-quarter revenue growth particularly concerning at just 18% [5]. - Competition from Amazon in the demand-side platform space poses a threat, as Amazon is reportedly undercutting prices and securing deals with major streaming platforms [5][7]. - The stock is down 73% from its late 2024 high, resulting in a forward P/E ratio under 21 and an enterprise value-to-sales ratio under 6, indicating potential value as the market continues to grow [8]. - Despite market share concerns, The Trade Desk is expected to achieve mid-teens revenue growth and improve operating margins as it scales [8]. DataDog - DataDog's stock experienced a significant drop of 30% following strong third-quarter earnings, attributed to insider selling and increased competitive pressure from Palo Alto Networks' acquisition of Chronosphere [9][10]. - The third-quarter earnings report showed a 28% increase in revenue and a 53% rise in remaining performance obligations, suggesting strong growth potential for 2026 [10]. - DataDog is gaining traction in the AI sector, with over 500 native AI customers and a recent nine-figure deal with a leading AI company, indicating robust demand for its services [12]. - The total addressable market for observability platforms like DataDog is expanding rapidly due to increased cloud computing usage, although the stock remains expensive with a forward P/E of 69 and a price-to-sales ratio of 14 [13].

Market Performance - The S&P 500 reached a new record, climbing past 6,920 points with a year-to-date gain of 17% [1] - Other major indices also saw modest gains, indicating a potential fifth consecutive session of increases as the year ends [2] - The CBOE Volatility Index (VIX) fell to 13.7, the lowest level since mid-December 2024, reflecting reduced market anxiety [2] Notable Stock Movements - Top gainers in the S&P 500 included Sandisk Corp. and Nike Inc., both rising approximately 5% [2] - Nike shares increased following Apple CEO Tim Cook's purchase of 50,000 shares at $58.97 each [3] - Micron Technology extended its post-earnings rally to 27% over the past five sessions, gaining an additional 4% [3] Banking Sector Highlights - Major banks like Citigroup, J.P. Morgan Chase, Wells Fargo, and Bank of America reached record levels, with Citigroup marking its sixteenth gain in the past seventeen sessions [3][4] Precious Metals and Crypto Markets - Precious metals experienced a pause in their rally, with gold slipping 0.4% after reaching an intraday high of $4,525 per ounce, and silver falling 0.8% after hitting $72.69 [4] - In the crypto market, Bitcoin decreased by 0.9% to around $87,000, marking a 7% decline year-to-date [5] ETF Performance - The Vanguard S&P 500 ETF rose 0.2% to $633.80, while the SPDR Dow Jones Industrial Average ETF gained 0.4% to $486.07 [7]

Core Viewpoint - Datadog has demonstrated strong fundamental growth with a recent earnings beat, but short-term technical indicators suggest potential softness as 2025 concludes [2][5][7]. Company Performance - Datadog reported a 28% year-over-year revenue growth in its latest quarter, reaching approximately $886 million, exceeding expectations and showcasing the strength of its cloud monitoring and security tools [5]. - Analysts maintain a positive outlook on Datadog, with Needham reiterating a Buy rating and a price target of $175, driven by strong usage trends, particularly among AI-native customers [5]. Technical Indicators - Recent momentum indicators, such as RSI and MACD, indicate a shift from overbought conditions towards neutral or slightly bearish territory, suggesting a potential retracement rather than a continuation of the rally [7]. - The AI price-prediction model forecasts a modest pullback for Datadog's stock by year-end, rather than a significant breakout or sell-off [4][8]. Market Outlook - Broader analyst coverage remains optimistic about Datadog's long-term prospects, with institutional forecasts suggesting potential upside over the next 12 months due to the company's ability to capture more workload telemetry across its expanding product offerings [6]. - The average predicted price for Datadog is set at $146.00, indicating a modest downward drift into year-end [8].

Core Insights - Datadog (DDOG) is focusing on platform consolidation to simplify complex observability environments for enterprises, positioning itself as a unified layer across cloud operations, security, and digital experience workflows [1][8] - The strategy is enhancing Datadog's enterprise base as large organizations standardize multiple teams and workloads on a single platform, with significant developments in support for Oracle Cloud Infrastructure and collaboration with Amazon Web Services [2][8] Enterprise Adoption Trends - In the third quarter, Datadog's total customers reached approximately 32,000, marking a 9.6% year-over-year increase, with larger accounts (those generating $100,000 or more in annual recurring revenue) growing by 16% year over year [3] - The Zacks Consensus Estimate for fourth-quarter 2025 customers is projected at 32,643, indicating a 2% year-over-year growth, suggesting a moderation in net additions as expansion within existing accounts becomes more prominent [3] Competitive Landscape - Datadog faces competition from companies like SentinelOne and Cloudflare as enterprises streamline their technology stacks, with all three companies vying for long-term enterprise adoption decisions tied to platform standardization [5] Price Performance and Valuation - Datadog's shares have appreciated by 7.7% over the past six months, outperforming the Zacks Internet-Software industry's decline of 5.1% but underperforming the Zacks Computer and Technology sector's return of 22.1% [6] - Datadog is currently trading at a forward 12-month price-to-sales ratio of 12.16X, significantly higher than the industry's 4.75X, and carries a Value Score of F [10] Earnings Estimates - The Zacks Consensus Estimate for Datadog's 2025 earnings is set at $2 per share, reflecting a 9.89% year-over-year increase [12]

Core Viewpoint - Datadog, Inc. (NASDAQ:DDOG) shares are currently oversold and at a potential support level, indicating a possible reversal in price movement, which has led to the designation of Datadog as the Stock of the Day [1]. Group 1: Stock Performance - Datadog shares have been trading lower since the earnings report in November [1]. - The stock is considered oversold, which typically attracts buyers anticipating a price increase [3][4]. - The shares are at a possible support level around $140.50, where previous sellers may look to buy back in [6]. Group 2: Trading Strategies - Many trading strategies rely on the concept of reversion to the mean, where stocks that are overextended in one direction are expected to move in the opposite direction [1]. - Emotional and aggressive buying can lead to stocks being overbought, while the opposite can occur with sellers, leading to oversold conditions [2][3]. - Tools like the Relative Strength Index (RSI) help traders identify overbought or oversold conditions, with current indicators suggesting Datadog is oversold [4]. Group 3: Market Sentiment - The combination of being oversold and at a support level increases the likelihood of a stock reversal and subsequent rally [6]. - Previous sellers at the $140.50 level may regret their decision and are likely placing buy orders now that the stock has returned to that price point [6].