DDOG Stock Analysis: Datadog | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 86.505m USD | 12M Return: 97.9% | US23804L1035 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.22B
EPS Trend: 48.6%
Qual. Beats: 4
Rev. Trend: 99.9%
Qual. Beats: 17
Warnings
Tailwinds
Seasonality 6.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Datadog, Inc. (NASDAQ: DDOG) is a software company that provides an observability and security platform for cloud-based applications, serving customers in the United States and internationally. The company is classified within the GICS Application Software sub-industry of the Information Technology sector, reflecting its position in the enterprise software market.
The platform offers a broad product suite that spans infrastructure and application performance monitoring, log management, real user monitoring, database monitoring, network monitoring, and LLM observability, along with security tools such as cloud security, cloud SIEM, threat management, and sensitive data scanning. Additional offerings include incident response, workflow automation, cloud cost management, and CI visibility, allowing customers to manage performance, reliability, and security from a single vendor.
Datadog was incorporated in 2010 and is headquartered in New York, New York. The company went public in September 2019 and is currently a large-cap stock with a market capitalization of roughly $83 billion USD, reflecting its scale within the application software market.
- Cloud cost optimization pressures usage-based revenue growth
- Security platform cross-sell accelerates annual recurring revenue
- Stock-based compensation continues weighing on GAAP operating margins
| Net Income: 177.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA -1.07 > 1.0 |
| NWC/Revenue: 104.2% < 20% (prev 109.1%; Δ -4.93% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.23b > Net Income 177.6m |
| Net Debt (-3.42b) to EBITDA (84.0m): -40.64 < 3 |
| Current Ratio: 3.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (368.3m) vs 12m ago 1.93% < -2% |
| Gross Margin: 79.51% > 18% (prev 79.92%; Δ -0.41% > 0.5%) |
| Asset Turnover: 59.34% > 50% (prev 51.80%; Δ 7.54% > 0%) |
| Interest Coverage Ratio: 0.55 > 6 (EBIT TTM 15.0m / Interest Expense TTM 27.0m) |
| A: 0.55 (Total Current Assets 6.01b - Total Current Liabilities 1.87b) / Total Assets 7.55b |
| B: 0.03 (Retained Earnings 234.9m / Total Assets 7.55b) |
| C: 0.00 (EBIT TTM 15.0m / Avg Total Assets 6.69b) |
| D: 1.37 (Book Value of Equity 4.37b / Total Liabilities 3.18b) |
| Altman-Z'' = 5.15 = AAA |
| DSRI: 1.04 (Receivables 827.3m/604.2m, Revenue 3.97b/3.02b) |
| GMI: 1.01 (GM 79.92% / 79.51%) |
| AQI: 1.05 (AQ_t 0.12 / AQ_t-1 0.12) |
| SGI: 1.32 (Revenue 3.97b / 3.02b) |
| TATA: -0.14 (NI 177.6m - CFO 1.23b) / TA 7.55b) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of August 17, 2026, the stock is trading at USD 255.46 with a total of 4,366,268 shares traded. Over the past week, the price has changed by +9.20%, over one month by -2.62%, over three months by +22.34% and over the past year by +97.92%.
Current recommended Stop Loss: 229.80 (which is 10% or 1.5 ATR below the current price).
Datadog has received a consensus analysts rating of 4.56. Therefore, it is recommended to buy DDOG.
- StrongBuy: 34
- Buy: 10
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 283.5 | 11% |
P/E Trailing = 501.8958
P/E Forward = 107.5269
P/S = 21.8076
P/B = 21.4418
P/EG = 1.6312
Revenue TTM = 3.97b USD
EBIT TTM = 15.0m USD
EBITDA TTM = 84.0m USD
Long Term Debt = 985.5m USD (from longTermDebt, last quarter)
Short Term Debt = 44.2m USD (from shortTermDebt, last quarter)
Debt = 1.57b USD (from shortLongTermDebtTotal, last quarter) + Leases 292.3m
Net Debt = -3.42b USD (calculated: Debt 1.57b - CCE 4.99b)
Enterprise Value = 83.1b USD (86.5b + Debt 1.57b - CCE 4.99b)
Interest Coverage Ratio = 0.55 (Ebit TTM 15.0m / Interest Expense TTM 27.0m)
EV/FCF = 71.95x (Enterprise Value 83.1b / FCF TTM 1.15b)
FCF Yield = 1.39% (FCF TTM 1.15b / Enterprise Value 83.1b)
FCF Margin = 29.11% (FCF TTM 1.15b / Revenue TTM 3.97b)
Net Margin = 4.48% (Net Income TTM 177.6m / Revenue TTM 3.97b)
Gross Margin = 79.51% ((Revenue TTM 3.97b - Cost of Revenue TTM 812.7m) / Revenue TTM)
Gross Margin QoQ = 78.59% (prev 79.21%)
Tobins Q-Ratio = 11.01 (Enterprise Value 83.1b / Total Assets 7.55b)
Interest Expense / Debt = 1.72% (Interest Expense 27.0m / Debt 1.57b)
Taxrate = 11.12% (22.2m / 199.8m)
NOPAT = 13.3m (EBIT 15.0m * (1 - 11.12%))
Current Ratio = 3.20 (Total Current Assets 6.01b / Total Current Liabilities 1.87b)
Debt / Equity = 0.36 (Debt 1.57b / totalStockholderEquity, last quarter 4.37b)
Debt / EBITDA = -40.64 (Net Debt -3.42b / EBITDA 84.0m)
Debt / FCF = -2.96 (Net Debt -3.42b / FCF TTM 1.15b)
Total Stockholder Equity = 3.88b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.66% (Net Income 177.6m / Total Assets 7.55b)
RoE = 4.57% (Net Income TTM 177.6m / Total Stockholder Equity 3.88b)
RoCE = 0.31% (EBIT 15.0m / Capital Employed (Equity 3.88b + L.T.Debt 985.5m))
RoIC = 0.24% (NOPAT 13.3m / Invested Capital 5.52b)
WACC = 11.59% (E(86.5b)/V(88.1b) * Re(11.77%) + D(1.57b)/V(88.1b) * Rd(1.72%) * (1-Tc(0.11)))
Discount Rate = 11.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.31 | Cagr: 1.52%
[DCF] Terminal Value 68.24% ; FCFF base≈1.07b ; Y1≈1.23b ; Y5≈1.81b
[DCF] Fair Price = 61.89 (EV 17.3b - Net Debt -3.42b = Equity 20.7b / Shares 334.9m; r=11.59% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 48.63 | EPS CAGR: 5.85% | SUE: 2.02 | # QB: 4
Revenue Correlation: 99.91 | Revenue CAGR: 27.48% | SUE: 4.0 | # QB: 17
EPS current Quarter (2026-09-30): EPS=0.64 | Chg30d=+4.74% | Revisions=+25% | Analysts=39
EPS current Year (2026-12-31): EPS=2.54 | Chg30d=+4.91% | Revisions=+40% | GrowthEPS=+24.0% | GrowthRev=+30.5%
EPS next Year (2027-12-31): EPS=2.97 | Chg30d=+2.99% | Revisions=+57% | GrowthEPS=+16.7% | GrowthRev=+22.2%
[Analyst] Revisions Ratio: +70% (up=7, down=0)