DDOG
Datadog, Inc.

Datadog, Inc.DDOG

Technology · Software - Application
247.48USD
+0.99%
Sep 23, 2026
DDOG overview ready
Unified Observability and Security Platform Enabling Cloud-Security Operations Consolidation
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.
Strong narrative exposure
Exposed to the Enterprise Cybersecurity Modernization narrative through Security Operations and Endpoint Consolidation — enabling supplier.
An early price trend
Longer-term context reads early trend, with a near-term setup of daily advance.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / sales is weak.
Primary risk
Intense competition from large cloud providers and specialized monitoring/security vendors.
Market Sep 22Filing Jun 30Price action Sep 22Research Jul 22

Conviction Level

NarrativeHeat8.0ThemeHeat8.0PriceAction8.6Valuation2.6CompanyPosition9.3
Price
Loading price history…

Price Action

An early price trend
Longer-term context reads early trend, with a near-term setup of daily advance.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA100 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$76.9B
Avg Volume (60D)
4.4M
60 sessions
Revenue Growth YoY
+27.7%
FY2025 vs FY2024
Gross Margin
+79.5%
Trailing twelve months
Operating Margin
+0.4%
Trailing twelve months
Free Cash Flow Yield
+1.3%
Distance from 200DMA
+37.4%
Next Earnings
2026-11-05
P/E
513.2x
EV / EBITDA
1099.9x
EV / Sales
21.7x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Dec 31, 2025

Fundamentals & Valuation

All three valuation perspectives agree this company is expensive.
Datadog, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 1.3% free-cash-flow yield and 1099.9x EBITDA, which require 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 large cloud providers and specialized monitoring/security vendors.

Narrative & Theme

Enterprise Cybersecurity Modernization
Part of Security Operations and Endpoint Consolidation, with moderate fit.
DDOG genuinely participates in the active enterprise-cybersecurity-modernization narrative through Cloud Security, Cloud SIEM, threat management, code security, and AI-assisted security investigation.
Narrative HeatHeating up8.0 / 10
Theme HeatHeating up8.0 / 10

Business & Markets

Technology · Software - Application
What they do

Datadog, Inc. provides a cloud-based observability and security platform that helps organizations monitor, analyze, and secure their cloud applications and infrastructure globally.

How it earns

The company primarily generates revenue through subscription-based software licenses.

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
Enterprises using cloud applications
Technology and software companies
Market position

Datadog is a market leader in cloud observability and security platforms.

Demand drivers
Low cyclicality

Demand for cloud monitoring and security services is relatively stable and driven by ongoing digital transformation.