Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
How It Works 
News - Chart
- Upturn Summary
- Highlights
- Valuation
Upturn AI Summary - About
Datadog Inc(DDOG)
Top performer 
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DDOG
10/23/2026: DDOG (4-star) is a STRONG-BUY. BUY for 20 days. Simulated Profits (0.35%). Updated daily EoD!
Datadog Inc is a prominent provider of cloud-based observability and security tools designed to help organizations monitor their complex digital infrastructure. The company has a leading position in the observability market, driven by a unified platform that offers strong value for developers and IT teams. Its main growth story involves expanding from monitoring into cybersecurity and AI-powered automation. However, investors must consider risks like intense competition from hyperscalers, high valuation multiples, and sensitivity to broader cloud spending cycles. This stock may best suit growth-oriented investors looking for exposure to cloud infrastructure, provided they monitor ongoing trends in enterprise IT budgets and product retention.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Datadog consistently demonstrates high revenue growth and platform expansion that appeals to growth-oriented strategies. |
| Momentum investor | Strong fit while signal remains positive | The stock often exhibits strong price trends tied to cloud infrastructure expansion. |
| Value investor | Weak fit | The company's high valuation multiples and focus on growth over near-term profit make it unsuitable for traditional value metrics. |
| Dividend investor | Weak fit | Datadog does not pay dividends and reinvests all capital back into the business. |
| Low-risk investor | Weak fit | The stock's high volatility and sensitivity to market sentiment make it inappropriate for risk-averse portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock can experience significant price swings based on quarterly growth updates. |
| Valuation risk | High | High P/S multiples leave the stock vulnerable to corrections if growth slows even slightly. |
| Competition risk (Cloud/AI competition) | Medium / high | Increased competition from hyperscalers like AWS and Microsoft poses a long-term risk to pricing. |
| Business quality | Strong | Datadog operates a high-quality, subscription-based model with strong retention rates. |
| Dividend income | Low / none | Investors should not rely on this stock for yield. |
| Execution risk | Medium | Maintaining rapid product innovation while scaling globally is a significant operational challenge. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Extreme Price Shocks
The stock has experienced exceptionally large and disruptive price movements during the period.
Analysis of Past Performance
Type Stock | Historic Profit 133.01% | Avg. Invested days 41 | Today’s Advisory Regular Buy |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 96.82B USD | Price to earnings Ratio 518.56 | 1Y Target Price 293 |
Price to earnings Ratio 518.56 | 1Y Target Price 293 | ||
Volume (30-day avg) 3.0M shares | Beta 1.51 | 52 Weeks Range 98.01 - 300.68 | Updated Date 10/24/2026 |
52 Weeks Range 98.01 - 300.68 | Updated Date 10/24/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.52 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Revenue | Recurring fees for usage-based observability and security modules. | Revenue comes from customers paying monthly or yearly to use the platform, scaling based on data volume. |
| Geography (Global) | Operations in North America, Europe, and Asia-Pacific. | The company has a broad international footprint, though North America remains the primary revenue driver. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 518.56 | Forward PE 67.57 | Enterprise Value 50.21B | Price to Sales(TTM) 24.41 |
Enterprise Value 50.21B | Price to Sales(TTM) 24.41 | ||
Enterprise Value to Revenue 16.65 | Enterprise Value to EBITDA 239.08 | Shares Outstanding 334.90M | Shares Floating 333.02M |
Shares Outstanding 334.90M | Shares Floating 333.02M | ||
Percent Insiders 0.56 | Percent Institutions 93.19 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.
All company names, trademarks, logos, and brands are the property of their respective owners and are used for identification and informational purposes only. Use of these names, trademarks, and logos does not imply endorsement by their respective owners.