- 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.
For further details see:
Datadog: Positioning For Growth, Average Into Its High Valuation