From Nasdaq: 2025-04-29 11:44:00

Datadog acquires Metaplane, enhancing its data observability platform with machine learning tools. This move addresses the growing need for full-stack data monitoring in the age of AI and data-driven products, strengthening Datadog’s position in the cloud monitoring space.

Financially, Datadog shows strong growth potential with projected revenues between $737 million and $741 million for Q1 2025 and yearly revenues between $3.175 billion and $3.195 billion. Despite a 28.8% YTD stock price decline, Datadog’s long-term prospects remain promising.

However, Datadog faces competition and cost escalations that impact its bottom line. Competitors like IBM, Microsoft, and cloud providers challenge its market share, while rising expenses in R&D and marketing pose short-term challenges. Despite this, Datadog’s potential for future growth remains strong.

Investors should consider holding Datadog stock given its growth prospects, customer base expansion, and solid revenue projections for 2025. With a Zacks Rank #3 (Hold), and a premium valuation, Datadog remains well-positioned for the future despite short-term challenges.



Read more at Nasdaq: Datadog Expands Into Data Observability: Buy, Sell or Hold the Stock?