DDOG
Datadog, Inc.

Datadog, Inc.DDOG

Technology · Software - Application
179.04USD
+2.54%
Nov 08, 2026
DDOG overview ready
Unified observability and security platform for cloud operations
Datadog is a unified observability-and-security platform enabler: it monetizes the same cloud-security-operations consolidation budgets as dedicated security vendors, but remains materially broader than a pure-play SOC or endpoint-security vendor.
Theme not measured
No economic group is assigned yet.
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Unremarkable fundamentals
Primary risk
Intense competition from specialized security and observability vendors.
Market Nov 6Filing Sep 30Price action Nov 7Research Jul 22

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction3.4BusinessPerformance7.0BusinessQuality6.7Valuation2.3ThemeMomentum—Improving — Revenue is growing at a steady pace (+35% year over year). Diluted EPS is up 220% year over year at $0.32. That earnings comparison is against a weak year-ago quarter. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$66.5B
Avg Volume (60D)
3.7M
60 sessions
Revenue Growth YoY
+27.7%
FY2025 vs FY2024
Gross Margin
+79.6%
Trailing twelve months
Operating Margin
+2.3%
Trailing twelve months
Free Cash Flow Yield
+1.8%
Distance from 200DMA
-10.6%
P/E
253.8x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+35% year over year). Diluted EPS is up 220% year over year at $0.32. That earnings comparison is against a weak year-ago quarter.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+35%
$1.20B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +29%
  2. +32%
  3. +36%
  4. +35%
Earnings growthGrowing
+220%
Diluted EPS $0.32 vs $0.10 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +114%
  3. n/a
  4. +220%
Operating marginExpanding
6.2%
+6.9 pp YoY · gross margin 80.2% (+0.1 pp)
The comparison is against a weak year-ago quarter

Business Quality

6.7 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says expensive; intrinsic is the dissenting view.
Datadog, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at a 1.8% free-cash-flow yield, which requires sustained delivery to be justified.

Company Research

Thesis
Datadog is a unified observability-and-security platform enabler: it monetizes the same cloud-security-operations consolidation budgets as dedicated security vendors, but remains materially broader than a pure-play SOC or endpoint-security vendor.
Opportunity
Moderate opportunity
Enterprise demand to consolidate cloud-security telemetry, detection, investigation, and response workflows as cloud estates and AI-enabled software delivery increase operational complexity and security-team workload.
Key risk
Intense competition from specialized security and observability vendors.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Application
What they do

Datadog operates a unified observability and security platform that monitors cloud applications and infrastructure globally, integrating performance, security, and operational data into a single solution.

How it earns

Datadog primarily generates revenue through subscription-based licensing of its cloud-native monitoring and security software.

Products & services
Infrastructure and application performance monitoring
Log management
Observability pipelines
Synthetics
Real user monitoring
Product analytics
Continuous profiler
Database monitoring
Data observability
LLM observability
Error tracking
Network monitoring
Incident response
Workflow automation and App builder
Event management
Bits AI SRE
Cloud cost management
Cloud security
Code security
Cloud SIEM
Threat management
Customers & end markets
Enterprise IT and security teams
Cloud-native application developers
Organizations managing complex cloud estates
Market position

Leader in unified observability and security platforms, competing broadly beyond pure-play security or SOC vendors.

Demand drivers
Medium cyclicality

Demand is tied to enterprise IT spending and cloud adoption, which can fluctuate with economic cycles but remains supported by digital transformation trends.