From Nasdaq: 2025-02-19 15:00:00

Datadog (DDOG) exceeded Q4 2024 earnings estimates but shares dropped 9% due to conservative 2025 guidance. Despite competition, DDOG has seen a 12.5% stock increase in 6 months, emphasizing its cloud monitoring leadership.

Datadog’s cloud observability platform saw revenue of $738 million in Q4, surpassing expectations. Customer growth metrics remained strong, with 30,000 customers and 462 generating $1 million in ARR.

DDOG’s AI business contributes to revenue growth, with investments planned for future expansion. Strategic product developments like Datadog On-Call and security enhancements bolster its competitive position.

Investors face a decision on DDOG: hold through volatility or wait for an entry point. The stock’s high valuation and decelerating growth raise concerns. Long-term investors may benefit from patience, while new investors should monitor enterprise AI trends for potential growth acceleration.

Datadog’s 2025 outlook disappointed with projected revenue growth below previous quarters. Despite this, long-term investors may consider holding positions, while new investors should exercise caution. The company’s investments and growth strategy will determine its success in the coming years.



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