DDOG Stock Analysis: Datadog | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 85.349m USD | 12M Return: 67.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.15B
EPS Trend: 57.0%
Qual. Beats: 3
Rev. Trend: 100.0%
Qual. Beats: 16
Warnings
Tailwinds
Seasonality 6.8 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: 135.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 0.66 > 1.0 |
| NWC/Revenue: 108.1% < 20% (prev 113.7%; Δ -5.56% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.11b > Net Income 135.7m |
| Net Debt (-3.17b) to EBITDA (228.6m): -13.88 < 3 |
| Current Ratio: 3.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (364.7m) vs 12m ago 0.46% < -2% |
| Gross Margin: 79.89% > 18% (prev 80.14%; Δ -0.25% > 0.5%) |
| Asset Turnover: 56.66% > 50% (prev 47.16%; Δ 9.50% > 0%) |
| Interest Coverage Ratio: 6.20 > 6 (EBIT TTM 166.1m / Interest Expense TTM 26.8m) |
| A: 0.57 (Total Current Assets 5.63b - Total Current Liabilities 1.66b) / Total Assets 6.95b |
| B: 0.03 (Retained Earnings 190.4m / Total Assets 6.95b) |
| C: 0.03 (EBIT TTM 166.1m / Avg Total Assets 6.48b) |
| D: 1.35 (Book Value of Equity 3.99b / Total Liabilities 2.96b) |
| Altman-Z'' = 5.42 = AAA |
| DSRI: 1.07 (Receivables 680.4m/490.2m, Revenue 3.67b/2.83b) |
| GMI: 1.00 (GM 80.14% / 79.89%) |
| AQI: 1.32 (AQ_t 0.11 / AQ_t-1 0.08) |
| SGI: 1.30 (Revenue 3.67b / 2.83b) |
| TATA: -0.14 (NI 135.7m - CFO 1.11b) / TA 6.95b) |
| Beneish M = -2.58 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at USD 260.36 with a total of 3,037,600 shares traded. Over the past week, the price has changed by +17.84%, over one month by +4.01%, over three months by +123.48% and over the past year by +67.81%.
Current recommended Stop Loss: 246.20 (which is 5.4% or 1.1 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 | 242.1 | -7% |
P/E Trailing = 630.9737
P/E Forward = 99.0099
P/S = 23.2429
P/B = 21.4002
P/EG = 1.4936
Revenue TTM = 3.67b USD
EBIT TTM = 166.1m USD
EBITDA TTM = 228.6m USD
Long Term Debt = 984.5m USD (from longTermDebt, last quarter)
Short Term Debt = 41.4m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter) + Leases 300.6m
Net Debt = -3.17b USD (calculated: Debt 1.59b - CCE 4.76b)
Enterprise Value = 82.2b USD (85.3b + Debt 1.59b - CCE 4.76b)
Interest Coverage Ratio = 6.20 (Ebit TTM 166.1m / Interest Expense TTM 26.8m)
EV/FCF = 76.13x (Enterprise Value 82.2b / FCF TTM 1.08b)
FCF Yield = 1.31% (FCF TTM 1.08b / Enterprise Value 82.2b)
FCF Margin = 29.40% (FCF TTM 1.08b / Revenue TTM 3.67b)
Net Margin = 3.69% (Net Income TTM 135.7m / Revenue TTM 3.67b)
Gross Margin = 79.89% ((Revenue TTM 3.67b - Cost of Revenue TTM 738.6m) / Revenue TTM)
Gross Margin QoQ = 79.21% (prev 80.39%)
Tobins Q-Ratio = 11.82 (Enterprise Value 82.2b / Total Assets 6.95b)
Interest Expense / Debt = 1.69% (Interest Expense 26.8m / Debt 1.59b)
Taxrate = 11.99% (18.5m / 154.2m)
NOPAT = 146.2m (EBIT 166.1m * (1 - 11.99%))
Current Ratio = 3.40 (Total Current Assets 5.63b / Total Current Liabilities 1.66b)
Debt / Equity = 0.40 (Debt 1.59b / totalStockholderEquity, last quarter 3.99b)
Debt / EBITDA = -13.88 (Net Debt -3.17b / EBITDA 228.6m)
Debt / FCF = -2.94 (Net Debt -3.17b / FCF TTM 1.08b)
Total Stockholder Equity = 3.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.09% (Net Income 135.7m / Total Assets 6.95b)
RoE = 3.78% (Net Income TTM 135.7m / Total Stockholder Equity 3.59b)
RoCE = 3.63% (EBIT 166.1m / Capital Employed (Equity 3.59b + L.T.Debt 984.5m))
RoIC = 2.84% (NOPAT 146.2m / Invested Capital 5.15b)
WACC = 11.57% (E(85.3b)/V(86.9b) * Re(11.76%) + D(1.59b)/V(86.9b) * Rd(1.69%) * (1-Tc(0.12)))
Discount Rate = 11.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.40 | Cagr: 1.88%
[DCF] Terminal Value 68.28% ; FCFF base≈1.01b ; Y1≈1.15b ; Y5≈1.70b
[DCF] Fair Price = 58.64 (EV 16.2b - Net Debt -3.17b = Equity 19.4b / Shares 330.8m; r=11.57% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 56.98 | EPS CAGR: 9.64% | SUE: 3.64 | # QB: 3
Revenue Correlation: 99.97 | Revenue CAGR: 26.78% | SUE: 4.0 | # QB: 16
EPS current Quarter (2026-06-30): EPS=0.58 | Chg30d=+0.02% | Revisions=+92% | Analysts=39
EPS next Quarter (2026-09-30): EPS=0.61 | Chg30d=+0.03% | Revisions=+92% | Analysts=37
EPS current Year (2026-12-31): EPS=2.42 | Chg30d=+0.02% | Revisions=+93% | GrowthEPS=+18.1% | GrowthRev=+26.9%
EPS next Year (2027-12-31): EPS=2.86 | Chg30d=+0.43% | Revisions=+93% | GrowthEPS=+18.0% | GrowthRev=+20.9%
[Analyst] Revisions Ratio: +98% (up=157, down=0)