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Datadog Inc (DDOG)



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Upturn Advisory Summary
08/28/2025: DDOG (3-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $159.93
1 Year Target Price $159.93
26 | Strong Buy |
11 | Buy |
9 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 48.41% | Avg. Invested days 52 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 45.94B USD | Price to earnings Ratio 380.97 | 1Y Target Price 159.93 |
Price to earnings Ratio 380.97 | 1Y Target Price 159.93 | ||
Volume (30-day avg) 46 | Beta 1.02 | 52 Weeks Range 81.63 - 170.08 | Updated Date 08/28/2025 |
52 Weeks Range 81.63 - 170.08 | Updated Date 08/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.37 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-07 | When Before Market | Estimate 0.41 | Actual 0.46 |
Profitability
Profit Margin 4.13% | Operating Margin (TTM) -4.29% |
Management Effectiveness
Return on Assets (TTM) -0.22% | Return on Equity (TTM) 4.45% |
Valuation
Trailing PE 380.97 | Forward PE 71.94 | Enterprise Value 43293652447 | Price to Sales(TTM) 15.23 |
Enterprise Value 43293652447 | Price to Sales(TTM) 15.23 | ||
Enterprise Value to Revenue 14.35 | Enterprise Value to EBITDA 206.13 | Shares Outstanding 323271008 | Shares Floating 316454815 |
Shares Outstanding 323271008 | Shares Floating 316454815 | ||
Percent Insiders 2.35 | Percent Institutions 88.13 |
Upturn AI SWOT
Datadog Inc

Company Overview
History and Background
Datadog was founded in 2010 by Olivier Pomel and Alexis Lu00ea-Quu1ed1c. Initially a cloud infrastructure monitoring service, it has evolved into a comprehensive monitoring and security platform for cloud applications.
Core Business Areas
- Infrastructure Monitoring: Provides real-time monitoring and alerting of servers, virtual machines, containers, databases, and other infrastructure components.
- Application Performance Monitoring (APM): Enables tracing, profiling, and logging of application requests to identify performance bottlenecks and errors.
- Log Management: Collects, processes, and analyzes logs from various sources for troubleshooting, security analysis, and compliance.
- Security Monitoring: Provides threat detection, vulnerability management, and security analytics capabilities to protect cloud environments.
- Digital Experience Monitoring (DEM): Monitors the performance and availability of websites and applications from the end-user perspective.
Leadership and Structure
Olivier Pomel is the CEO and Alexis Lu00ea-Quu1ed1c is the CTO. Datadog has a functional organizational structure with departments focused on engineering, product, sales, marketing, and customer success.
Top Products and Market Share
Key Offerings
- Datadog APM: Provides end-to-end distributed tracing to visualize request flows across distributed systems, identify performance bottlenecks, and optimize application performance. Competitors include New Relic, Dynatrace, and AppDynamics. Market Share information is not available, however Datadog APM makes up a significant amount of revenue.
- Datadog Infrastructure Monitoring: Monitors the health and performance of servers, containers, and other infrastructure components. Competitors include Prometheus, Grafana, and Splunk. Market Share information is not available, however Datadog Infrastructure Monitoring makes up a significant amount of revenue.
- Datadog Log Management: Centralizes and analyzes logs from various sources to troubleshoot issues, detect security threats, and ensure compliance. Competitors include Splunk, Sumo Logic, and Elastic. Market Share information is not available, however Datadog Log Management makes up a significant amount of revenue.
Market Dynamics
Industry Overview
The cloud monitoring and observability market is experiencing rapid growth, driven by the increasing adoption of cloud computing, microservices architectures, and DevOps practices. Demand for comprehensive monitoring and security solutions is increasing.
Positioning
Datadog is a leading player in the cloud monitoring and observability market, known for its comprehensive platform, ease of use, and strong integrations with cloud platforms and other tools. It competes with both established players and newer entrants.
Total Addressable Market (TAM)
The TAM is estimated to be several tens of billions of dollars and expected to keep increasing. Datadog is positioned well to capture a large share of it given its product offerings and reputation.
Upturn SWOT Analysis
Strengths
- Comprehensive platform
- Strong brand recognition
- Ease of use
- Robust integrations
- Strong sales execution
Weaknesses
- High price point compared to some competitors
- Complexity of the platform can be overwhelming for new users
- Dependence on cloud adoption trends
- Product bloat as they offer many options
Opportunities
- Expanding into new markets
- Developing new products and services
- Acquiring complementary technologies
- Deepening partnerships with cloud providers
- Increased demand for security monitoring
Threats
- Increasing competition
- Economic downturn
- Security breaches
- Rapid technological changes
- Open-source alternatives
Competitors and Market Share
Key Competitors
- NOW
- DT
- SPLK
Competitive Landscape
Datadog's competitive advantages include its comprehensive platform, ease of use, and strong integrations. Disadvantages include its higher price point and the complexity of the platform for new users. The landscape is highly competitive with many viable companies vying for marketshare.
Major Acquisitions
Sqreen
- Year: 2021
- Acquisition Price (USD millions): 250
- Strategic Rationale: The acquisition of Sqreen enhanced Datadog's application security capabilities.
Growth Trajectory and Initiatives
Historical Growth: Datadog has experienced rapid growth in recent years, driven by strong demand for its cloud monitoring and observability platform.
Future Projections: Analysts project continued revenue growth for Datadog, driven by cloud adoption and the increasing need for monitoring and security solutions. Refer to analyst reports for details.
Recent Initiatives: Recent initiatives include expanding its security monitoring capabilities, investing in AI and machine learning, and deepening partnerships with cloud providers.
Summary
Datadog is a strong player in the cloud monitoring and observability market, driven by its comprehensive platform and ease of use. Its revenue growth is impressive, but competition is fierce. The company should focus on managing its platform complexity and maintaining its competitive edge through innovation and strategic partnerships. The absence of dividends may deter some investors, but it allows them to reinvest in the company's future and potential growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance are subject to change. Consult with a financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Datadog Inc
Exchange NASDAQ | Headquaters New York, NY, United States | ||
IPO Launch date 2019-09-19 | Co-Founder, CEO & Director Mr. Olivier Pomel | ||
Sector Technology | Industry Software - Application | Full time employees 6500 | Website https://www.datadoghq.com |
Full time employees 6500 | Website https://www.datadoghq.com |
Datadog, Inc. operates an observability and security platform for cloud applications in the United States and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data observability, universal service monitoring, network monitoring, error tracking, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, event management and CI and LLM visibility. Datadog, Inc. was incorporated in 2010 and is headquartered in New York, New York.

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