Datadog, Inc. DDOG
Composite 48/100; the shares have moved about 76% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 15/100 — a strong mark against it.
Balance-sheet strength ranks 84/100 — a strong point in its favour. Momentum ranks 65/100 — a moderate point in its favour.
Valuation ranks 15/100 — a strong mark against it. Quality ranks 38/100 — a slight mark against it. Growth ranks 44/100 — a slight mark against it.
What the company does Datadog, Inc. (DDOG) provides an observability and security platform for cloud applications, covering infrastructure monitoring, log management, security, and AI-driven tools. Its offerings include real user monitoring, database monitoring, LLM observability, and cloud cost management, serving enterprises globally.
Key financials Revenue growth is strong at 27.7%, but net margins are thin at 4.5% and EPS declined -42.1%. Profitability metrics are weak: ROE 4.7%, ROA 0.2%, and operating margin 0.7%. The company carries low debt (Debt/Equity 0.29) but trades at extreme valuation multiples (P/E 476.57, EV/EBITDA 300.41).
Stock health Momentum is mixed: down -16.42% over 3 months but up 76.82% over 6 months. The stock is -28.52% below its 52-week high, with RSI(14) at 36.30, indicating oversold conditions. Sideravia scores the stock Weak quality (38.5) but strong Strength (83.6).
Price vs fair value The stock trades at a discount of 36.30% versus the analyst mean target of 285.18. - Recent headlines highlight volatility tied to peers like Snowflake and Palantir (2026-09-02, 2026-09-03). - Analysts note Datadog’s 64.6% year-to-date surge despite sector pullbacks (2026-09-02). - Sideravia’s valuation percentile (13.3/100) suggests rich pricing relative to fundamentals.
Looking forward Forward P/E of 100.00 and PEG of 0.27 imply high expectations for future growth. Execution on AI-driven observability and security products will be critical to justify current valuations. Margin expansion remains a key risk given current profitability levels.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.