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Is Trending Stock Datadog, Inc. (DDOG) a Buy Now?
DatadogDatadog(US:DDOG) ZACKSยท2025-03-14 14:01

Core Viewpoint - Datadog has experienced a significant decline in stock performance, with a return of -27.4% over the past month, compared to the S&P 500's -9.6% and the Zacks Internet - Software industry's -18.8% [2] Earnings Estimate Revisions - The current quarter's earnings estimate for Datadog is $0.42 per share, reflecting a decrease of -4.6% year-over-year, with a notable change of -23.4% in the consensus estimate over the last 30 days [5] - For the current fiscal year, the consensus earnings estimate is $1.69, indicating a decline of -7.1% from the previous year, with a significant change of -44.8% in the estimate over the last month [5] - The next fiscal year's consensus earnings estimate is $2.08, showing an increase of +23.4% year-over-year, although it has decreased by -12.8% recently [6] Revenue Growth - Datadog's consensus sales estimate for the current quarter is $739.51 million, representing a year-over-year growth of +21% [9] - The sales estimates for the current and next fiscal years are $3.19 billion and $3.79 billion, indicating growth rates of +18.9% and +18.8%, respectively [9] Last Reported Results and Surprise History - In the last reported quarter, Datadog achieved revenues of $737.73 million, a year-over-year increase of +25.1%, with an EPS of $0.49 compared to $0.44 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $711.65 million by +3.67%, and the EPS surprise was +13.95% [11] - Datadog has consistently beaten consensus EPS and revenue estimates in the last four quarters [11] Valuation - Datadog is currently graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14] Bottom Line - The current Zacks Rank of 3 suggests that Datadog may perform in line with the broader market in the near term, despite the recent market buzz [16]