Core Insights - Datadog has launched a new product, Storage Management, aimed at helping teams optimize cloud object storage costs and eliminate unnecessary spending [1][4] - The product is designed to provide granular visibility, proactive anomaly detection, and targeted recommendations for cloud storage management [1][4] Group 1: Product Features - Storage Management offers detailed insights into cloud object storage at the bucket and prefix levels, enabling teams to identify anomalies in storage growth and access patterns [4] - The product provides unified context by correlating cost, usage, and metadata across different buckets and prefixes, facilitating the enforcement of lifecycle and retention policies [7] - It includes proactive anomaly detection and alerts to quickly identify and respond to unexpected storage growth and cost spikes [7] Group 2: Market Context - The increasing usage of cloud object storage driven by data-intensive and AI workloads has led to rising cloud storage costs, making cost management a significant challenge for operations teams [2] - Companies developing AI products find that data storage and processing costs are often the third-highest expense, surpassing costs associated with AI model training and inference [5] Group 3: Optimization Opportunities - Datadog Storage Management helps organizations uncover specific savings opportunities, such as transitioning cold data to less expensive storage classes and deleting duplicate objects [3][5] - The product aims to accelerate savings by providing actionable recommendations on data re-tiering, archiving, or deletion [7]

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on hybrid operating environments and mobile device penetration, prompting businesses to invest in web-based infrastructure and security software [1] - The Internet Software industry is ranked in the top 28% of Zacks Industry Rank, indicating expected outperformance in the market over the next three to six months [2] Company Highlights Palantir Technologies Inc. (PLTR) - Palantir's AI strategy integrates its Foundry and Gotham platforms, focusing on AI adoption in government and commercial sectors, with an expected revenue growth rate of 41.1% and earnings growth rate of 43% for next year [6][10] - The company is involved in significant government projects, such as the Department of Defense's Open DAGIR initiative, enhancing military operations through AI [7] - Palantir's AIP boot camps have attracted over 1,000 companies, showcasing its platform's capabilities across various industries [8] Snowflake Inc. (SNOW) - Snowflake is set to benefit from rising demand for cloud-based data platforms, with an expected revenue growth rate of 22.3% and earnings growth rate of 33.9% for next year [11][15] - The cloud analytics market is projected to grow from $35.39 billion in 2024 to $130.63 billion by 2030, with a CAGR of 25.5%, supporting Snowflake's growth trajectory [12] - Snowflake's AI Data Cloud is gaining traction across multiple industries, enhancing enterprise capabilities in data management and analytics [14] Datadog Inc. (DDOG) - Datadog is experiencing growth from new customer acquisitions and increased adoption of its cloud-based monitoring platform, with an expected revenue growth rate of 19% and earnings growth rate of 15.4% for next year [16][20] - The company unveiled over 125 new products at DASH 2025, including AI observability tools, enhancing its competitive position [17][18] - Datadog's solutions are increasingly used to monitor AI-powered applications, driving broader product usage [19] Atlassian Corp. (TEAM) - Atlassian is benefiting from the demand for remote working tools, with a 25X year-over-year increase in AI interactions among over 1 million monthly active users [22] - The company's AI-powered Rovo platform and automation tools are driving growth in premium and enterprise editions [23] - Atlassian's collaboration with OpenAI to enhance its software with generative AI features is expected to boost revenue [24] Zoom Communications Inc. (ZM) - Zoom is capitalizing on the hybrid work trend, with its AI Companion achieving a fourfold increase in monthly active users year-over-year [26][27] - The platform's integration with third-party applications and custom AI functionalities is enhancing operational efficiencies for customers [28] - Zoom has an expected revenue growth rate of 3% and earnings growth rate of 0.1% for next year [29]

Core Insights - Rokt has appointed David Obstler, CFO of Datadog, to its board of directors and Matt Briers, former CFO of Wise, as a board advisor and observer, as the company prepares for a potential IPO [1][2][3] Group 1: Executive Appointments - David Obstler will chair the audit committee and has extensive experience in operational finance, particularly in technology companies [3][4] - Matt Briers brings experience from his tenure at Wise, where he oversaw significant global expansion and a successful direct listing [4] Group 2: Company Growth and Financial Performance - Rokt's revenue grew by over 40% year-over-year in 2024, reaching $600 million [5] - The company is projected to power more than 7.5 billion transactions in 2025 across various leading ecommerce businesses [5] Group 3: Strategic Partnerships and Acquisitions - Recent partnerships include collaborations with Ulta Beauty, Albertsons, and Macy's, alongside acquisitions of Canal, mParticle, and Aftersell [6][7]

Core Viewpoint - UBS raised the target price for Datadog from $189 to $225 while maintaining a "Buy" rating [1] Group 1 - The increase in target price reflects positive sentiment towards Datadog's growth potential and market position [1]

Core Insights - Datadog Inc. (NASDAQ:DDOG) experienced a significant share price increase of 17.46% week-on-week, driven by improved revenue growth expectations for full-year 2025 [1] - The company raised its full-year revenue guidance to a range of $3.386 billion to $3.39 billion, up from the previous estimate of $3.312 billion to $3.322 billion [1] - Earnings per share (EPS) expectations were also increased to a range of $2 to $2.02, compared to the earlier forecast of $1.80 to $1.83 [2] Revenue Performance - For the fourth quarter, Datadog projects revenues between $912 million and $916 million, with EPS estimated at $0.54 to $0.56, based on approximately 367 million weighted average diluted shares outstanding [3] - The company reported a strong revenue performance in the third quarter, achieving a 28% year-on-year increase in revenues to $885.6 million, up from $690 million [4] Net Income - Despite the revenue growth, Datadog's net income decreased by 34% to $33.88 million, down from $51.70 million in the same period last year [4]

Core Insights - Ten large-cap stocks showed significant performance gains last week, driven by better-than-expected financial results and raised guidance for fiscal year 2025 [1] Company Performance Summary - **Globus Medical, Inc. (NYSE:GMED)**: Gained 39.79% after reporting better-than-expected Q3 results and raising FY2025 guidance [1] - **Sandisk Corporation (NASDAQ:SNDK)**: Gained 13.77% following better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Lumentum Holdings Inc. (NASDAQ:LITE)**: Gained 15.30% after reporting better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Datadog, Inc. (NASDAQ:DDOG)**: Gained 16.91% after better-than-expected Q3 results and raising FY2025 guidance above estimates [1] - **Expedia Group, Inc. (NASDAQ:EXPE)**: Gained 18.14% after beating Q3 earnings estimates and raising FY2025 guidance [1] - **Coherent Corp. (NYSE:COHR)**: Gained 15.82% after better-than-expected Q1 results and issuing Q2 sales guidance above estimates [1] - **Penumbra, Inc. (NYSE:PEN)**: Gained 19.58% after better-than-expected Q3 results and raising FY25 sales guidance above estimates [1] - **Teva Pharmaceutical Industries Limited (NYSE:TEVA)**: Gained 15.13% after beating Q3 earnings and revenue estimates and raising full-year EPS guidance [1] - **Madrigal Pharmaceuticals, Inc. (MDGL)**: Gained 19.90% after reporting better-than-expected Q3 sales results [1] - **DuPont de Nemours, Inc. (NYSE:DD)**: Gained 15.80% after beating Q3 earnings and revenue estimates [1]

Core Insights - Datadog Inc. (NASDAQ: DDOG) has raised its revenue growth guidance for full-year 2025, leading to a significant increase in stock price, reaching a four-year high [1][2] - The stock experienced a notable intra-day jump to $194.87, ultimately closing at $190.82, reflecting a 23.13% increase [1] - The updated revenue forecast for Datadog is now between $3.386 billion and $3.39 billion, an increase from the previous estimate of $3.312 billion to $3.322 billion [2] Financial Performance - Datadog's earnings per share (EPS) target has been raised to a range of $2 to $2.02, up from the earlier expectation of $1.80 to $1.83 [3] - For the fourth quarter, Datadog projects revenues between $912 million and $916 million, with EPS estimated at $0.54 to $0.56, based on approximately 367 million weighted average diluted shares outstanding [3] - In the last quarter, Datadog reported a 34% decline in net income to $33.88 million, down from $51.70 million year-on-year, while revenues increased by 28% to $885 million from $690 million [4]

Core Insights - Datadog reported $885.65 million in revenue for Q3 2025, marking a year-over-year increase of 28.4% [1] - The EPS for the same period was $0.55, up from $0.46 a year ago, with a surprise of +22.22% compared to the consensus estimate of $0.45 [1] - The revenue exceeded the Zacks Consensus Estimate of $849.77 million by +4.22% [1] Performance Metrics - Datadog has 4,060 customers with over $100k in ARR, surpassing the four-analyst average estimate of 3,942 [4] - The total number of customers stands at 32,000, slightly below the three-analyst average estimate of 32,113 [4] - Remaining Performance Obligations are reported at $2.79 billion, exceeding the three-analyst average estimate of $2.55 billion [4] Stock Performance - Datadog shares have returned +16.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Datadog reported Q3 2025 non-GAAP EPS of 55 cents, a 19.6% increase year-over-year, exceeding Zacks Consensus Estimate by 22.22% [1] - The company's net revenues reached $885.7 million, reflecting a 28.4% year-over-year growth and surpassing the consensus estimate by 4.22% [1] Customer Metrics - Datadog ended Q3 with 32,000 customers, up from approximately 29,200 in the same period last year [2] - The number of customers with an annualized run rate (ARR) of $100,000 or more increased to 4,060, compared to about 3,490 in the prior year, contributing to 89% of total ARR [2] Product Usage - 84% of customers utilized two or more products, an increase from 83% year-over-year [3] - 54% of customers used four or more products, up from 49% in the previous year [3] - The trailing 12-month net revenue retention rate was approximately 120%, an increase from the mid-110% range in the prior year [3] Financial Performance - Non-GAAP gross profit for Q3 increased by 28.4% year-over-year to $718.9 million, with an adjusted gross margin of 81.2% [4] - Research & development expenses rose by 38.2% year-over-year to $269.5 million, accounting for 30.4% of revenues, an increase of 220 basis points [4] - Sales and marketing expenses increased by 25.5% year-over-year to $195.5 million, with a slight contraction in percentage of revenues to 22.1% [5] - General & administrative expenses grew by 28.7% year-over-year to $46.5 million, remaining flat as a percentage of revenues [5] - Non-GAAP operating income was reported at $207.4 million, a 19.8% increase year-over-year, although the non-GAAP operating margin declined by 170 basis points to 23.4% [6] Balance Sheet and Cash Flow - As of September 30, 2025, Datadog had cash, cash equivalents, and marketable securities totaling $4.1 billion, up from $3.9 billion as of June 30, 2025 [7] - Operating cash flow for the quarter was $251 million, an increase from $200 million in the previous quarter [7] - Free cash flow was reported at $214 million, compared to $165 million in the prior quarter [7] Guidance - For Q4 2025, Datadog anticipates revenues between $912 million and $916 million, with non-GAAP EPS expected in the range of 54-56 cents [10] - For the full year 2025, revenues are projected between $3.386 billion and $3.390 billion, with non-GAAP EPS expected to be between $2.00 and $2.02 [10]

Upgrades - Piper Sandler upgraded Expedia (EXPE) to Neutral from Underweight with a price target of $250, increased from $190, following "very strong" Q3 results and positive Q4 guidance [2] - Macquarie upgraded Unity (U) to Outperform from Neutral with a price target of $50, up from $33, after a Q3 earnings beat as Vector continues to improve [2] - Oppenheimer upgraded JFrog (FROG) to Outperform from Perform with a price target of $75, citing strong quarterly performance and accelerating Cloud growth [3] - Benchmark upgraded Trade Desk (TTD) to Buy from Hold with a price target of $65, noting revenue growth of about 22% year-over-year excluding political acceleration [3] - KeyBanc upgraded Datadog (DDOG) to Overweight from Sector Weight with a price target of $230 post Q3 report, highlighting revenue acceleration excluding OpenAI and sustained visibility into OpenAI spending [4] Downgrades - Williams Trading downgraded Canada Goose (GOOS) to Sell from Hold with a price target of C$12, down from C$20, indicating that the company will not be sold or go private [5] - Needham downgraded CarMax (KMX) to Hold from Buy, citing a choppy macro recovery and increased competition leading to negative unit growth [5] - RBC Capital also downgraded CarMax to Sector Perform from Outperform with a price target of $34, down from $59 [5] - Needham downgraded Penn Entertainment (PENN) to Hold from Buy, removing the previous $22 price target after the early termination of the partnership with Disney's ESPN [5] - Goldman Sachs downgraded Sweetgreen (SG) to Sell from Neutral with a price target of $5, down from $10, due to pressures on both revenue and profitability [5] - UBS downgraded Cogent (CCOI) to Neutral from Buy with a price target of $27, down from $50, following softer results and a dividend cut [5]