
Datadog (DDOG) Stock Forecast & Price Target
Datadog (DDOG) Analyst Ratings
Bulls say
Datadog demonstrated strong financial performance with total revenue growing 25% year-over-year to $738 million, surpassing consensus expectations by $23 million. Research and development expenditure increased significantly by 29% year-over-year, now constituting 29% of revenue, which reflects the company's commitment to innovation and product development. Additionally, the firm continues to experience momentum in its business, supported by an increasing demand for its service offerings and a trend among customers towards consolidation, suggesting a favorable outlook for sustained growth.
Bears say
Datadog's financial outlook is negatively impacted by disappointing revenue growth from AI-native customers and weak fiscal year 2025 guidance, which is below consensus estimates. Furthermore, the company anticipates a significant operating margin degradation of over 400 basis points year-over-year, contrary to its long-term goal of maintaining a 25% or higher margin. Despite generating $265 million in operating cash flow and a free cash flow margin of approximately 33%, these metrics are overshadowed by the anticipated slowdown in growth and declining profitability projections.
This aggregate rating is based on analysts' research of Datadog and is not a guaranteed prediction by Public.com or investment advice.
Datadog (DDOG) Analyst Forecast & Price Prediction
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