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Datadog Inc(DDOG)
Top performer •
Today’s top pick 
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
10/09/2026: DDOG (4-star) is a STRONG-BUY. BUY for 10 days. Simulated Profits (9.14%). Updated daily EoD!
Datadog is a high-growth cloud observability company that provides a unified platform for monitoring, security, and analysis. The company has a leading position in the DevOps market, known for its strong product-led growth and high customer retention rates. Its primary investment story revolves around its expansion into integrated cloud security and AI-powered troubleshooting, which continue to drive cross-selling opportunities. Key risks include intense competition from cloud hyperscalers and potential sensitivity to broader IT spending pullbacks. Datadog is best suited for growth-oriented investors, though potential buyers should monitor valuation multiples and the firm's ability to maintain its innovation pace against established security and infrastructure incumbents.
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 remains a high-growth SaaS leader with strong market expansion potential. |
| Momentum investor | Strong fit while signal remains positive | The stock often tracks with high-growth software momentum cycles. |
| Value investor | Weak fit | The company typically trades at a high valuation premium. |
| Dividend investor | Weak fit | Datadog does not pay dividends and retains all cash for growth. |
| Low-risk investor | Weak fit | High volatility associated with growth-stage tech stocks makes it unsuitable for low-risk portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock experiences significant price swings common in high-growth software sectors. |
| Valuation risk | Medium / high | High P/S ratios leave little room for error regarding quarterly growth targets. |
| Competition risk (Cloud Platforms) | High | Major hyperscalers bundling native monitoring tools represent a structural competitive threat. |
| Business quality | Strong | High recurring revenue and strong retention rates indicate high-quality software economics. |
| Dividend income | Low / none | Investors should not expect income generation from this holding. |
| Execution risk | Medium | Continued innovation is required to maintain a lead in a crowded and evolving market. |
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 153.77% | Avg. Invested days 39 | Today’s Advisory Strong Buy |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 10/09/2026 |
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 105.30B USD | Price to earnings Ratio 586.52 | 1Y Target Price 287.08 |
Price to earnings Ratio 586.52 | 1Y Target Price 287.08 | ||
Volume (30-day avg) 3.3M shares | Beta 1.51 | 52 Weeks Range 98.01 - 294.00 | Updated Date 10/10/2026 |
52 Weeks Range 98.01 - 294.00 | Updated Date 10/10/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.5 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Revenue | Platform usage fees for infrastructure monitoring, APM, log management, and security modules. | The company earns money through predictable, recurring monthly/annual subscriptions from corporate clients. |
| Geography | Revenue generated globally, with a significant presence in North America and expanding international footprint. | Most revenue comes from North America, but international growth remains a key expansion area. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 586.52 | Forward PE 84.75 | Enterprise Value 86.60B | Price to Sales(TTM) 26.55 |
Enterprise Value 86.60B | Price to Sales(TTM) 26.55 | ||
Enterprise Value to Revenue 21.83 | Enterprise Value to EBITDA 307.41 | Shares Outstanding 334.90M | Shares Floating 333.02M |
Shares Outstanding 334.90M | Shares Floating 333.02M | ||
Percent Insiders 0.56 | Percent Institutions 92.88 |
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.
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