Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

The proliferation of artificial intelligence (AI) is having a positive effect on multiple industries, and cloud computing is one of the markets where the adoption of this technology is helping companies mint a lot of money.From hardware suppliers such as Nvidia, whose chips are being used by cloud service providers (CSPs) to train AI models, to Oracle, whose infrastructure is being rented by companies to train models and deploy AI applications, several tech companies have seen a nice lift in their revenue b ...

Datadog (DDOG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this data analytics and cloud monitoring company, should get reflected in its stock price. After all, empirical research shows a stro ...

Datadog (DDOG) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DDOG broke through the 20-day moving average, which suggests a short-term bullish trend.A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.Like ot ...

Summary of Datadog, Inc. (NASDAQ:DDOG) Conference Call Company Overview - **Company**: Datadog, Inc. - **Industry**: Cloud Monitoring and Analytics - **Event**: RBC Capital Markets Global TIMT Conference - **Date**: November 19, 2024 Key Points Q3 Performance and Market Trends - Datadog reported strong Q3 results with stability in end markets, particularly in the enterprise segment where larger enterprises resumed digital projects, leading to significant deals and improved net retention rates [3][4] - The small and medium-sized business (SMB) segment showed stable growth, with net retention rates remaining positive but not accelerating due to economic concerns in the venture capital environment [4][6] - Cross-selling and multi-product sales efforts have been successful, with over $2.5 billion in Annual Recurring Revenue (ARR) from three key product pillars [5] Customer Segmentation - Approximately one-third to 35% of Datadog's business comes from SMBs, with the largest segment being enterprise customers at around 35% to 40% [6] - The mid-market segment, defined as companies with 1,000 to 5,000 employees, has also been a focus for Datadog [6] Cloud Optimization and ROI - The conversation around cloud optimization has evolved, with customers increasingly focused on ROI and cost management in a cautious economic environment [8][9] - Datadog's customers go through cycles of investment, deployment, and optimization, which impacts their purchasing behavior [8] Billings and Revenue Correlation - Billings can fluctuate and may not always correlate directly with revenue growth due to the timing of billing cycles [11][12] - Long-term, billings are expected to align with revenue growth, but short-term variations are common [12] AI and Cloud-Native Customers - The proportion of AI-native customers increased from 4% to 6% of ARR, driven by demand for cloud-native solutions and increased workloads [15][18] - Datadog has around 30,000 customers, with approximately 3,000 using operations data and a few hundred utilizing LLM monitoring [22][25] Competitive Landscape - Datadog is gaining market share in the cloud logs and cloud SIEM segments, competing against established players like Splunk and Dynatrace [33][36] - The acquisition of Splunk has raised questions about competitive dynamics, but Datadog remains optimistic about its innovation and market position [35] Future Product Development - Datadog is focusing on expanding its product offerings, including service management, security products, and business analytics, to drive future growth [39][41] - The company is also exploring AI-related functionalities to enhance its platform [42] Capital Allocation and M&A Strategy - Datadog has approximately $3.2 billion in cash and does not feel over-capitalized, allowing for flexibility in investments and potential acquisitions [43] - Future acquisitions would need to align with Datadog's product roadmap and ensure compatibility with its existing platform [44] Growth and Profitability Balance - The company aims for long-term growth with a target of 25%+ margins, balancing investments in product development and go-to-market strategies [49] - Datadog is focused on expanding its quota capacity and investing in R&D to capitalize on market opportunities [48] Economic Environment and Future Outlook - The impact of AI on production environments and enterprise cloud migration is a key area of focus for Datadog moving forward [56][57] - Key performance indicators to watch include net retention rates, new logo acquisition, and geographical distribution of enterprise customers [59] Additional Insights - Datadog has a minimal exposure to government spending, which is not expected to significantly impact its growth [53] - The SMB segment is characterized by stable growth, primarily targeting larger SMBs rather than small mom-and-pop businesses [54]

Datadog, Inc. (NASDAQ:DDOG) RBC Capital Markets Global TIMT Conference November 19, 2024 10:00 AM ET Company Participants David Obstler - CFO Conference Call Participants Matthew Hedberg - RBC Capital Markets Matthew Hedberg My name is Matt Hedberg. Thank you. By the way, I got a pause for a second. You guys make this -- this conference is fantastic. Like I was talking to Matt Finigan who runs sales, like you can't even hardly walk in the hallways, it's just it's great attendance. And so you guys make this ...

After 43+ years working for one investment research company or another, I finally retired. So now, I’m completely independent. And for the first time on Seeking Alpha, I won’t be working based on anybody else’s product agenda. I have only one goal now… to give you the best actionable investment insights I can.I have long specialized in rules/factor-based equity investing strategies. But I’m different from others who share such backgrounds. I don’t serve the numbers. Instead, the numbers serve me… to inspire ...

A growing amount of Datadog's revenue is coming from artificial intelligence.The technology sector is on a tear in 2024, led by some of the largest companies in the world. As of this writing, the Nasdaq-100 index is up 22% year to date, with Nvidia stock soaring 182% and Meta Platforms stock up 57%.The smaller end of the tech sector isn't performing quite as well, however, and many stocks are still trading below their record levels from 2021. Datadog (DDOG -0.10%) stock, for example, is up just 4%, and it's ...

Industry Overview - Cybersecurity is experiencing significant growth, with attacks increasing at a double-digit pace and expected to accelerate in 2024, further driven by advancements in AI in 2025 [1] - The demand for cybersecurity products from leading firms like Fortinet and Datadog is anticipated to rise as threats evolve [1] Fortinet Analysis - Fortinet is expanding its business with a sustained double-digit growth rate, outperforming analysts' expectations and raising guidance for 2024, indicating continued strength into 2025 [1] - The forecast for Fortinet in 2025 includes a revenue growth of 12% and an expansion of profit margins [1] - The company's cash flow and balance sheet health have improved, allowing for share repurchases, with a new authorization of $2 billion, representing about 2.6% of its market cap [3] - Analysts have a 12-month price forecast for Fortinet at $79.52, indicating a potential downside of 15.59%, with a high forecast of $111.00 and a low of $64.00 [2] Datadog Analysis - Datadog is positioned as a comprehensive cloud-based monitoring solution, appealing to small and medium-sized businesses transitioning to the cloud [5] - The company is expected to achieve sustained revenue growth in the mid-20% range for 2024, driven by increased adoption from larger clients and strategic partnerships, such as with Oracle [6] - Datadog's 12-month stock price forecast is $150.96, suggesting a 19.73% upside, with a high forecast of $165.00 and a low of $133.00 [6] - The company's balance sheet has improved significantly, with a 30% increase in equity over the last year and total liabilities being less than 1X equity [7] Analyst Sentiment - Analysts have responded positively to both Fortinet and Datadog's recent results, with upgrades and price target increases for both companies [4][8] - Despite Datadog's current "Moderate Buy" rating, some top analysts believe there are better investment opportunities available [10]

Core Insights - Datadog reported third-quarter revenues of $690 million, a 26% year-over-year increase, exceeding guidance and Zacks Consensus Estimate by 4.15% [1] - Non-GAAP earnings for the third quarter were 46 cents, up 27.8% year-over-year, beating the Zacks Consensus Estimate by 17.95% [1] Customer Growth and Financial Performance - The company has approximately 29,200 customers, an increase from 26,800 a year ago, and generated $204 million in free cash flow with a 30% margin [2] - Datadog's net revenue retention rate is in the mid-110s, and gross revenue retention is in the mid-to-high 90s, indicating strong customer loyalty and expansion potential [9] Product Adoption and AI Integration - 83% of customers use two or more products, with 49% using four or more, and 26% adopting six or more products, showing strong platform stickiness [3] - About 3,000 customers are using Datadog's AI integrations, with early adopters reporting significant efficiency gains [4][11] Strategic Wins and Market Position - Datadog secured major deals in Q3, including a seven-figure contract with a leading Indian e-commerce company and expansions with a European airline and an AI model provider [5] - The company has been recognized as a leader in the Gartner Magic Quadrant for Observability Platforms for four consecutive years, highlighting its technological superiority [10] Competitive Landscape and Valuation - Datadog faces competition from companies like New Relic, Dynatrace, and Splunk, as well as tech giants like Microsoft and Amazon [6] - The stock trades at a forward 12-month P/S ratio of approximately 13.89, reflecting high growth expectations, justified by strong revenue growth and expanding customer base [7] Future Outlook - For Q4 2024, Datadog projects revenues between $709-$713 million, representing 20-21% year-over-year growth, with full-year 2024 revenue guidance of $2.656 billion to $2.660 billion [12] - The Zacks Consensus Estimate for 2024 revenues is $2.66 billion, indicating a 24.9% year-over-year improvement [13]