Stock Price & Analysis

Based on the recent data, here's a concise analysis of DDOG stock:

Recent Performance and Key Events

• Stock is down 19% following weaker-than-expected 2025 guidance
• Q4 2024 results showed revenue growth of 25% to $738M, beating expectations
• Operating margin guidance of 21% for 2025 disappointed analysts (below 25% consensus)

Growth Outlook

• 2025 revenue growth projected at 18-19% (below analyst expectations)
• Q1 2025 revenue guidance: $737-741M (21% growth)
• AI-native customers now represent 6% of ARR, up from 3% YoY

Sell Factors

• Trading at high forward P/S multiple of 12.8x despite slowing growth
• Higher spending planned for 2025, impacting margins
• Wells Fargo and Wolfe Research recently downgraded the stock

Buy Factors

• Strong customer metrics: Added 800 new customers (highest in 18 months)
• Solid position in cloud security and AI monitoring
• Conservative guidance history suggests potential upside

Recommendation: SELL at current levels. While Datadog maintains strong market position and customer growth, the combination of premium valuation, decelerating growth, and margin pressure suggests better entry points ahead. Consider revisiting when P/S multiple approaches 10x or when growth metrics show clear improvement.

Based on recent analyst reports and market data, Datadog (DDOG) stock is projected to reach $165-170 by end of 2025, driven by its expanding AI-native customer base which has doubled to 6% of ARR and strategic investments in sales and marketing. However, the company faces near-term headwinds with slower growth guidance of 18-19% for 2025 and compressed operating margins of 21% versus expected 25%. The stock could see volatility in the short term but maintains long-term growth potential through its transition from monitoring to automated problem resolution and increasing adoption of AI workload monitoring capabilities.

The S1 support level for DDOG Stock is $111.15 ,The R1 resistant level for DDOG Stock is $123.58.

As of the end of day on 2025-03-06, the price of DDOG Stock was $111.85.

The target price for DDOG Stock according to analyst rating is 161.01, with the highest price target at 200.00 and the lowest at 120.00. Analysts have a Strong Buy rating on DDOG Stock overall.

The market cap of DDOG is $38.2B.

Based on recent data, DDOG appears overvalued at current levels with a forward P/S multiple of 12.8x despite projected revenue growth slowdown to 18-19% in 2025. The company's Q4 2024 performance was solid with 25% revenue growth and strong customer metrics, but its 2025 guidance disappointed investors with lower-than-expected operating margins of 21% versus 25% analyst estimates. While Datadog maintains leadership in observability and security platforms with 462 million-dollar customers, the stock trades at an elevated P/E ratio of nearly 270x. The recent 19% stock decline following weak 2025 guidance suggests market concerns about growth deceleration and higher expenses, though management has historically been conservative in forecasts. The valuation appears stretched given moderating growth and rising competitive pressures in cloud monitoring, making the stock more attractive if it trades down to a P/S multiple of around 10x.

Datadog, Inc. is the observability and security platform for cloud applications. The Company's software as a service (SaaS) platform integrates and automates infrastructure monitoring, application performance monitoring, log management, real-user monitoring, and various other capabilities to provide unified, real-time observability and security for its customers entire technology stack. Its platform consists of products that can be used individually or as a unified solution and includes a marketplace where customers can access products built by its partners on top of the Datadog platform. The Company's products include Infrastructure Monitoring, Application Performance Monitoring (APM), Log Management, Digital Experience Monitoring, Continuous Profiler, Database Monitoring, Network Monitoring, Incident Management, Observability Pipelines, Cloud Cost Management, Universal Service Monitoring, Cloud Security Management, Application Security Management, CI Visibility and others.

Based on the provided data and recent market developments, here's a price prediction analysis for Datadog (DDOG) stock by 2030:

Datadog's stock is projected to reach approximately $225-250 by 2030, driven by its expanding cloud monitoring and security platform capabilities. The forecast is supported by the company's strong position in AI-native customer growth (which increased from 3% to 6% of ARR in 2024) and its strategic investments in sales, marketing, and R&D to capture larger market share.

The growth trajectory, while slower than historical rates, is expected to remain solid as Datadog transitions from a monitoring platform to an automated problem-solving solution provider. The company's infrastructure monitoring solution already generates $1.25 billion in ARR, with additional products each contributing over $750 million.

DDOG has a total of 5200 employees.