SPLK - Datadog: Positioning For Growth Average Into Its High Valuation

• Datadog is serving an important and growing observability market with products that are easy to use and implement.
• The company is growing robustly and is showing no signs of slowing down with investments in R&D and S&M.
• Profitability is elusive on a GAAP basis, but something that I'm not worried about in this growth stage.
• Execution at a high valuation is a concern, but the company has a great founder-led management team that makes me confident in its longer-term prospects.
• I would put Datadog under the category of a stock to own despite its high valuation with plans to dollar-cost average into a more favorable valuation over time.

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