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DDOG

S&P 500
Weak · 39/100

Datadog

Information Technology
Application Software

$221.37

0.7%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 71.5% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$79.38B

P/E

Forward P/E (est.)

ROE

3.8%

Revenue Growth

29.5%

EPS Growth

-17.9%

Profit Margin

3.7%

FCF Yield

0.0%

Debt / Equity

0.26x

ROIC

-1.0%

Interest Coverage

Current Ratio

3.4x

Dividend Yield

Implied Growth (rev. DCF)

7.6%

Rating Score

39/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DDOG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DDOG trades near $221.37, above its 50-day average ($186.06) and 200-day average ($151.44). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 38 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. DDOG's is $14.52 (~6.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month DDOG found buyers near $209.56 (support) and sellers near $278.70 (resistance); its 52-week range is $98.01–$278.70. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.4× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Datadog (DDOG) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $79.38B.

In its latest reported year it generated about $3.43B in revenue and $107.74M in net profit.

Our model rates DDOG Weak (39/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

35.1%

Revenue moved from $1.03B in 2021 to $3.43B in 2025, a 35.1% compound annual growth rate. The most recent year grew a strong 29.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

80.0%

Operating Margin

-1.3%

Net Margin

3.1%

ROE

3.8%

Datadog keeps about 3.7% of each sales dollar as net profit, with a 80.0% gross margin and -1.3% operating margin. Return on equity is 3.8% and return on invested capital about -1.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.26x

Leverage: debt-to-equity is 0.3x, with a current ratio of 3.4x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research

Operating CF

$1.05B

Free Cash Flow

$1.00B

FCF Margin

29.2%

In the latest year Datadog produced about $1.05B of operating cash flow and $1.00B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

P/S

24.21x

P/B

12.33x

EV / EBITDA

DDOG trades at n/a trailing earnings, 24.2x sales, and 12.3x book value. Reverse-engineering today's price implies the market expects roughly 7.6% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
Forward P/E
P/S ratio
24.2xExpensive
Revenue growth
29.5%Strong
EPS growth
-17.9%Weak
Gross margin
80.0%Strong
Net margin
3.7%Weak
ROE
3.8%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How DDOG stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), DDOG ranks #67 of 72 by our overall rating.

P/E vs sector

median 35.6x

ROE vs sector

3.8%

median 25.6%

Growth vs sector

29.5%

median 17.4%

Sector rank

#67

of 72 by rating

CompanyP/ERev Gr.Rating
DDOGThis stock29.5%Weak· 39
ADBE10.9x11.5%Strong· 78
INTU15.9x15.1%Strong· 77
SNPS112.5x39.5%Weak· 38
CDNS91.9x13.4%Neutral· 50
ADSK28.2x18.3%Favorable· 70
APP40.3x40.0%Favorable· 68
WDAY34.1x13.3%Neutral· 53
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianADBEINTUSNPSCDNSADSKAPPWDAYP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

Bull Case

The case for DDOG:

  • Revenue is growing 29.5% a year, a sign of real demand.
  • A conservative balance sheet (debt/equity 0.3x) lowers risk.
Bear Case

The case against DDOG:

  • Thin net margins (3.7%) leave little room for error.
  • Limited free cash flow at today's price.
  • Our model's overall read is Weak (39/100).
Key Risks
Research

Margin risk — thin profitability (3.7%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Datadog is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at n/a earnings, which our model scores Weak (39/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.