DDOG - Datadog: Approaching A Buy Point Wait Until Low $90s To Dive In
2024-06-07 15:41:02 ET
Summary
- Datadog's Q1 earnings beat expectations and showed accelerating growth, but the stock has dropped sharply anyway since the May earnings release.
- This is also in spite of the fact that Datadog boosted its full-year growth outlook by 2 points.
- The company is also tremendously growing its operating margin, and cementing its status well above the "Rule of 40" thresholds.
- Setting a buy price target of $94 for Datadog, based on 9.5x EV/FY25 revenue.
So far this earnings season, a lot of air has come out of highly prized growth stocks as investors de-risk their portfolios amid all-time market highs. Even strong quarters failed to resonate in the markets, including Datadog's ( DDOG ) Q1 earnings print, which not only was a beat-and-raise quarter, but also showed accelerating growth and positive commentary about normalizing macro conditions....
Datadog: Approaching A Buy Point, Wait Until Low $90s To Dive In