• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Is Datadog stock a buy after impressive Q2 results? Strong earnings and growth prospects signal opportunity

by August 8, 2024
written by August 8, 2024

Datadog Inc. (NASDAQ: DDOG), the leading monitoring and security platform for cloud applications, has reported impressive second-quarter earnings that exceed market expectations, prompting investors to reassess the stock’s potential.

On Thursday, Datadog announced a Non-GAAP EPS of $0.43 for Q2 2024, surpassing analysts’ forecasts by $0.07.

Additionally, the company achieved revenue of $645 million, marking a robust 26.7% increase year-over-year and exceeding predictions by $19.9 million.

The company’s solid performance highlights its operational efficiency, with operating cash flow reaching $164 million and free cash flow at $144 million.

This strong financial showing led to a notable 9% increase in Datadog’s stock price at market open today.

Datadog’s financial stability is underscored by its liquidity, with cash, cash equivalents, and marketable securities totaling $3.0 billion as of June 30, 2024.

The company also saw its customer base with Annual Recurring Revenue (ARR) of $100,000 or more grow by 13% year-over-year to approximately 3,390 customers.

Ambitious targets

Looking ahead, Datadog has set ambitious targets for the upcoming quarters. For Q3 2024, the company projects revenues between $660 million and $664 million and expects a Non-GAAP net income per share between $0.38 and $0.40.

For the full year, Datadog anticipates revenues in the range of $2.62 billion to $2.63 billion, with non-GAAP operating income expected between $620 million and $630 million.

These projections surpass the company’s previous forecasts shared during the Q1 earnings release.

CEO Olivier Pomel credited the quarter’s success to exceptional execution and the expanding adoption of Datadog’s multi-product platform.

The company’s commitment to innovation was showcased at the DASH 2024 user conference, where new products like Agentless Scanning, Data Security, and Code Security were introduced.

These enhancements strengthen Datadog’s security offerings and reinforce its leadership in cloud monitoring.

The launch of the Live Debugger tool, along with the general availability of LLM Observability and Kubernetes Autoscaling solutions, has further solidified Datadog’s market position as a frontrunner in cloud monitoring.

key appointments in the leadership team

Datadog has also bolstered its leadership team with key appointments.

Yanbing Li has been appointed Chief Product Officer, bringing valuable experience from Google, while David Galloreese joins as Chief People Officer, bringing a wealth of expertise from Walmart.

Datadog’s integrated platform offers a comprehensive suite of monitoring and security solutions, differentiating it from competitors like New Relic and Dynatrace.

This unique positioning enables Datadog to capture a larger share of the growing demand for cloud-based monitoring.

However, the competitive landscape in the technology sector demands continuous innovation and adaptation.

Datadog’s ability to stay ahead of technological shifts and meet evolving customer expectations will be critical to sustaining its growth trajectory.

Valuation

In terms of valuation, Datadog’s forward price-to-earnings (P/E) ratio, based on the upper end of its EPS guidance ($1.66 for FY24), reflects a premium compared to the industry average, signaling strong investor confidence.

However, the company’s price-to-sales (P/S) ratio, considering current revenue forecasts, suggests a premium valuation relative to historical averages.

As we analyze Datadog’s stock performance, it will be crucial to monitor whether the current price trajectory aligns with its robust fundamentals.

Following a surge in stock price after its IPO in September 2020, Datadog’s stock peaked near $200 in November 2021 before a significant decline, reaching lows near $62 early last year.

The recent Q2 results could signal a potential turning point, making Datadog an intriguing stock to watch for both long-term and short-term investors.

Resistance above $138 is a big hurdle

Although the stock has doubled since then, it has faced significant resistance trading above $138 since the start of 2024. Another thing to note is that the stock’s 100-day moving average is on the verge of crossing below its 200-day moving average, which is a potential signal for a long-term downtrend.

DDOG chart by TradingView
Hence, investors, bullish on the stock but haven’t bought it yet, must tread with caution and not initiate a significant long position until the stock closes above $138 on the daily charts. They can accumulate the stock at current levels but must keep a strict loss below the short-term swing Low at $98.80.

Traders who are bearish on the stock may use today’s bounce for a fresh shorting opportunity.

If the stock gives up today’s gain in the coming days, that will indicate bearish momentum is going to persist in the medium term and the stock might once again fall back to below $100, where one can book profits on short positions.

The post Is Datadog stock a buy after impressive Q2 results? Strong earnings and growth prospects signal opportunity appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Long FRA40: bounces from strong 7,000 Support, signals potential upward momentum ahead
next post
Long GER40: set for bullish reversal, signal potential upswing from 17,000 support level

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Israel calls to evacuate Yemen airport amid fight with Houthis

    May 6, 2025
  • Energy groups celebrate Trump’s latest move to unleash Alaska drilling

    June 4, 2025
  • Trump isn’t the first president menaced by Derangement Syndrome

    October 26, 2024
  • Trump Cabinet picks increase odds Edward Snowden could see life of freedom in the US

    November 20, 2024
  • Trump returns to Europe for the 1st time following election win for Notre Dame’s reopening

    December 6, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,209)
  • Investing (634)
  • Stock (827)

Latest Posts

  • Spotify Q2 earnings preview: SPOT has gained over 55% YTD, is a profit turnaround coming?

    July 18, 2024
  • CrowdStrike IT outage: Delta Air Lines says it faced losses of up to 500 M, will seek damages

    July 31, 2024
  • Pope Francis and US presidents: A look back at his legacy with the nation’s leaders

    April 21, 2025

Recent Posts

  • House Dems threaten to block Trump’s big tariff plans: ‘Unacceptable’

    January 17, 2025
  • Israel releases conversations with Gaza residents amid criticisms of aid delivery system

    July 1, 2025
  • Texas Instruments faces investor scrutiny amid high capex spending: What to expect in Q2 earnings

    July 23, 2024

Editor’s Pick

  • With Trump all-in on crypto, bitcoin bulls bet America’s corporate balance sheets are next

    February 13, 2025
  • Rick Scott knocked out of Senate leader race on first ballot as Thune and Cornyn advance

    November 13, 2024
  • ‘Squad’ Dems to rally for Cori Bush as she fights for her political life

    August 5, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock