Datadog, Inc. shares were trading at $160.01 on November 28th with trailing and forward P/E ratios of 516.16 and 66.23 respectively. The company operates an observability and security platform for cloud applications, serving over 31,000 organizations. Datadog has shown exceptional financial performance, with revenue growing at a 41% CAGR since 2020 to a $3 billion+ run rate.

Q3 results for Datadog show revenue of $886 million, exceeding consensus and raising guidance. Billings rose 30% YoY, and RPO reached $2.79 billion, indicating strong long-term contracts. The company continues to drive usage growth, expand multi-module adoption, and introduce new modules in security and digital experience. Datadog maintains strong financials with robust gross margins and strategic investments in R&D and sales.

Investors have seen approximately 39.79% appreciation in Datadog’s stock price since coverage of a bullish thesis in May 2025. While the company is not among the 30 Most Popular Stocks Among Hedge Funds, 103 hedge fund portfolios held DDOG at the end of the second quarter. Despite the potential of Datadog as an investment, there are AI stocks that may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Datadog, Inc. (DDOG): A Bull Case Theory