TSMC - TSMC plans to build 10 new facilities globally in 2025, primarily for advanced chip manufacturing, driving a projected 26% revenue increase and 29% earnings growth to $9.05 per share [1] - TSMC's revenue grew 34% in 2024, rebounding from a 4.5% decline in 2023, with Q4 revenue reaching $26.3 billion, a 39% YoY increase [9] - TSMC benefits from increased IT hardware spending, including cloud infrastructure, smartphones, and PCs, as it manufactures chips for companies like AMD, Qualcomm, and Apple [10] - TSMC is a key supplier for data center companies like Nvidia, Broadcom, Micron, and Marvell, with Nvidia's revenue expected to grow 52% in fiscal 2026 and Broadcom's AI chip market projected to reach $60-90 billion in three years [11][12] Datadog - Datadog's revenue grew 27% in the first nine months of 2024 to $1.95 billion, with Q4 guidance of $711 million, projecting full-year revenue of $2.66 billion, a 25% increase over 2023 [13][15] - Datadog's customer base grew 9% YoY to over 29,000 in Q3 2024, with an 11.5% increase in customers generating over $100,000 in annual recurring revenue [14] - The company saw a 4 percentage point increase in customers using eight or more products and a 5 percentage point increase in customers using six or more products in Q3 2024 [16] - Datadog introduced AI-powered observability products, with 3,000 customers using its AI integrations by the end of Q3 2024, positioning the company to capitalize on the growing AI cloud market [17] Industry Trends - Global IT spending is forecast to grow 9.3% in 2025 to $5.74 trillion, with software spending expected to increase 14% to $1.23 trillion due to AI-focused investments [6] - Data center spending is projected to grow 15.5% in 2025, while device spending is expected to accelerate to 9.5% from 6.2% in 2024, driven by AI server and device investments [7] - Public cloud spending is forecast to grow 21.5% in 2025, up from 19.2% in 2024, benefiting companies like Datadog [13] - The cloud observability market, estimated at $51 billion, is expected to grow at an 11% CAGR through 2027, while the cloud security market, valued at $21 billion, is projected to grow at a 16% CAGR [4]

Uber Technologies - Uber Technologies reported better-than-expected revenue and earnings for Q3 2024, though gross bookings fell short of expectations [2] - Analyst Lee expects FY25 gross bookings growth (forex neutral) in the high-teens, with the pace of deceleration moderating compared to H2 2024 [3] - Lee projects a 16% CAGR in core gross bookings from FY23 to FY26, in line with the company's analyst-day target of mid- to high-teens growth [13] - Uber's Delivery business is expected to maintain mid-teens gross bookings growth in FY25, supported by new verticals and solid grocery adoption in the US, Canada, and Mexico [14] - Mizuho analyst James Lee reiterated a buy rating with a $90 price target, seeing 2025 as a year of investment for Uber, which could impact near-term EBITDA but fuel long-term growth [7] Datadog - Datadog announced better-than-anticipated results for Q3 2024, with AI-native customers accounting for over 6% of ARR, up from 4% in Q2 2024 and 2.5% in Q3 2023 [5][8] - Analyst White highlighted Datadog's AI offerings, including LLM Observability and Bits AI, and believes the stock deserves a premium valuation due to its cloud-native platform and generative AI-led growth opportunities [16] - Monness analyst Brian White reiterated a buy rating with a $155 price target, noting Datadog's balanced approach to generative AI and its outperformance compared to peers in a challenging software backdrop [19] Nvidia - Nvidia is considered a major beneficiary of the generative AI wave, with strong demand for its advanced GPUs required for AI models [9] - JPMorgan analyst Harlan Sur reaffirmed a buy rating with a $170 price target, citing Nvidia's on-track production ramp-up for the Blackwell platform despite supply chain challenges [10] - Nvidia expects strong data center spending in 2025, supported by the Blackwell ramp-up and broad-based demand, with opportunities to capture a larger share of the $1 trillion datacenter infrastructure market [11] - Sur highlighted Nvidia's competitive advantage over ASIC solutions due to ease of adoption and comprehensive system solutions, with opportunities in enterprise, vertical markets, and sovereign customers [17]

Group 1 - Datadog (DDOG) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1][2] - The stock has rallied 23.7% over the past four weeks and currently holds a Zacks Rank 2 (Buy), suggesting potential for further upward movement [3] - There have been 14 upward revisions for DDOG's earnings estimates for the current fiscal year, with no downward revisions, reinforcing the bullish outlook [3] Group 2 - The 20-day simple moving average is a popular tool among traders as it smooths out price fluctuations and can indicate trend reversals [1] - A stock price above the 20-day moving average is considered a positive trend, while a price below it may signal a downward trend [1][2] - The combination of positive earnings estimate revisions and technical indicators suggests that investors should monitor DDOG for potential gains [3]

Datadog, Inc. (NASDAQ:DDOG) Barclays 22nd Annual Global Technology Conference December 11, 2024 12:50 PM ET Company Participants Yuka Broderick - VP, IR Conference Call Participants Raimo Lenschow - Barclays Raimo Lenschow Perfect. Thanks for joining us. We had one small change in the lineup. Yuka, thanks for still kind of doing this. David Obstler is sadly kind of ill at the moment. So, we kind of had like a last-minute change. Since Yuka and I have been going back for many years, I'm kind of very confiden ...

Core Viewpoint - Datadog (DDOG) has demonstrated strong momentum in 2024 with a year-to-date stock increase of 27.6%, although it has underperformed compared to the Zacks Computer and Technology sector's 32.4% return, prompting discussions on investment timing [1]. Year-to-date Performance - The stock has advanced 27.6% year to date, but this is below the sector average of 32.4% [1]. Product Innovation Drives Market Position - Datadog has enhanced its Database Monitoring capabilities to support MongoDB, completing coverage of the five most popular database types, which addresses a critical market need [4]. - The integration of database and application monitoring is expected to reduce troubleshooting time and operational costs for enterprises [4]. Cloud Infrastructure and AI Integration - Datadog provides comprehensive visibility across multi-cloud infrastructures, integrating with Amazon Web Services, Google Cloud, and Microsoft Azure [5]. - The company has over 100 unique service integrations with AWS, including monitoring for AWS Trainium and Inferentia ML chips, positioning it well in the AI/ML monitoring space [6]. - Datadog's integration with Google Cloud covers services like Compute Engine and Kubernetes Engine, enhancing customer control over their resources [7]. Security and Kubernetes Enhancement - Recent product launches, such as Kubernetes Active Remediation and a modern Cloud SIEM approach, reflect Datadog's responsiveness to market demands for simplified monitoring tools [8]. Financial Performance and Market Outlook - For Q4 2024, Datadog projects revenues between $709 million and $713 million, indicating a year-over-year growth of 20-21% [9]. - The full-year 2024 revenue outlook is between $2.656 billion and $2.660 billion, with non-GAAP earnings per share expected to be in the range of $1.75-$1.77 [9]. - The Zacks Consensus Estimate for 2024 revenues is $2.66 billion, reflecting a 24.9% year-over-year improvement, while earnings per share are estimated at $1.76, indicating a 33.3% increase [10]. Competitive Landscape and Valuation - Datadog faces competition from companies like New Relic, Dynatrace, and Splunk, as well as monitoring tools from tech giants like Microsoft and Amazon [11]. - The stock trades at a premium with a forward 12-month P/S ratio around 16.64, reflecting high growth expectations justified by strong revenue growth and expanding customer base [12]. Investment Perspective: Hold or Wait? - While Datadog's stock rally indicates strong market confidence, current valuations suggest that waiting for a better entry point may be beneficial for investors [15]. - The company's robust product development and market positioning make it a compelling long-term investment candidate, but monitoring for favorable valuation levels is advised [16].

Stock Performance - Datadog shares have surged 29 2% over the past month and hit a new 52-week high of $166 08 [1] - The stock has gained 36 7% since the start of the year outperforming the Zacks Computer and Technology sector (33 3%) but underperforming the Zacks Internet - Software industry (40 8%) [1] Earnings and Revenue - Datadog has consistently beaten earnings consensus estimates in the last four quarters with the latest EPS of $0 46 surpassing the estimate of $0 39 and revenue beating the consensus by 4 15% [2] - For the current fiscal year Datadog is expected to post earnings of $1 76 per share on $2 66 billion in revenues representing a 33 33% increase in EPS and a 24 9% increase in revenue [3] - For the next fiscal year earnings are projected to grow 9 89% to $1 94 per share with revenue expected to increase 20 08% to $3 19 billion [3] Valuation Metrics - Datadog trades at 94 1X current fiscal year EPS estimates significantly higher than the peer industry average of 33 7X [7] - The stock trades at 424 7X trailing cash flow compared to the peer group average of 29X and has a PEG ratio of 6 32 [7] - The company has a Value Score of F but strong Growth and Momentum Scores of A and A respectively resulting in a VGM Score of B [6] Zacks Rank and Style Scores - Datadog holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The stock meets the recommended criteria of Zacks Rank 1 or 2 and Style Scores of A or B suggesting potential for further gains [8] Industry Comparison - ODDITY Tech Ltd (ODD) a peer in the Internet - Software industry has a Zacks Rank of 1 (Strong Buy) with a Value Score of C Growth Score of B and Momentum Score of A [9] - ODDITY Tech Ltd beat consensus earnings estimates by 45 45% last quarter and is expected to post earnings of $1 75 per share on revenue of $639 27 million for the current fiscal year [10] - Shares of ODDITY Tech Ltd have gained 4 8% over the past month and trade at a forward P/E of 24 3X and a P/CF of 38 43X [11] - The Internet - Software industry is in the top 16% of all industries indicating favorable conditions for both Datadog and ODDITY Tech Ltd [11]

Company Overview - Datadog, Inc. is participating in the UBS Global Technology and AI Conference, indicating its relevance in the tech and AI sectors [1] - The company has garnered significant interest, being one of the top 10 most requested companies for one-on-one meetings at the conference [2] Market Environment - The CFO of Datadog, David Obstler, described the current spending environment as relatively stable, contrasting with a more optimistic perception from the broader software industry [4] - There has been a notable improvement in the software industry, with fewer significant disappointments in earnings reports and a slight uptick in performance metrics [4]

Datadog, Inc. (NASDAQ:DDOG) UBS Global Technology and AI Conference December 3, 2024 10:55 AM ET Company Participants David Obstler - CFO Conference Call Participants Karl Keirstead - UBS Karl Keirstead Karl Keirstead, covering the software space. This is actually my first time on stage to kick off this year's tech AI conference. So I want to take the occasion to thank all of you for coming. I was telling David earlier that attendance at this year's event is up 45%, 50%. I don't think my career I've ever s ...

Core Insights - Datadog continues to enhance its AWS monitoring product portfolio, focusing on AI/ML applications, serverless, and containerized environments, with over 100 unique integrations [1][2] - The demand for enterprise-scale observability is accelerating as companies seek to optimize resources and understand their infrastructure performance and cloud costs [2][3] Company Developments - Datadog's Chief Product Officer highlighted the growth driven by trends such as AI/ML, cloud migration, and the need for monitoring resources [2] - The company now offers integrations for AWS services like AWS Trainium, AWS Inferentia, Amazon Q, Amazon Bedrock, and Amazon SageMaker to enhance monitoring capabilities [2] Customer Use Cases - AppFolio utilizes Datadog's LLM Observability solution to monitor and improve the performance of their GenAI applications [3] - Cash App has found success with AWS SageMaker and Datadog's AI integrations, which have proven effective under stress testing [4] - andsafe relies on Datadog's container monitoring tools to optimize resource consumption and improve process efficiency [4] Product Features - Datadog's platform integrates various monitoring capabilities, including infrastructure monitoring, application performance monitoring, log management, and cloud security [5] - The platform aims to provide unified, real-time observability and security for customers' technology stacks, facilitating digital transformation and cloud migration [5]

Core Insights - Datadog has introduced a modern Cloud SIEM solution that simplifies security management without the need for dedicated teams, enhancing onboarding and democratizing security practices [1][3][6] Challenges in Traditional SIEM - Existing SIEM solutions face integration issues, leading to fragmented visibility and delayed threat detection, which can overwhelm security teams as data volumes grow [2] - High false-positive rates in traditional systems contribute to alert fatigue, risking the oversight of critical threats [2] Datadog's Cloud SIEM Features - The solution utilizes modern architectures and machine learning for agility, scalability, cost-efficiency, and real-time threat detection [3][6] - Key features include: - **Risk-Based Insights**: Correlates real-time signals to prioritize security investigations, incorporating various entity types for threat detection [5] - **15-Months Retention**: Offers a flexible economic model for threat detection capabilities, allowing organizations to scale security operations efficiently [5] - **Security Operational Metrics**: Provides insights into security team performance, helping optimize threat response strategies [5] - **Content Packs and Integrations**: Includes pre-built detection rules and over 30 integrations to accelerate threat detection and response [5] Customer Testimonials - Organizations like the University of Alabama at Birmingham have reported improved alert quality and security posture through the use of Datadog's Cloud SIEM [4] Company Overview - Datadog is a comprehensive observability and security platform for cloud applications, integrating various monitoring capabilities to support digital transformation and cloud migration [8]