Analysts remain optimistic despite volatility – Magic Post

Analysts remain optimistic despite volatility

 – Magic Post

Datadog today

Datadog logo, Inc.
129.07 dollars +1.82 (+1.43 %)

As of 04:00 pm

52 weeks
81.63 dollars

$ 170.08

P/E ratio.
368.78

The target price
153.10 dollars

Datadog Inc. shares Nasdak: a dog She was on the Rollercoasster trip this year. They decreased sharply between February and April before it rose again to late July. In August, the stock decreased again, with a full DDOG performance (YTD) to -11.4 %.

Investors may be concept concept in the introduction of a Datadog location now, due to its previous decline for months. However, as one of the most widely described stocks on the market, 24 out of 30 analysts seen as a purchaseThere is also a case that must be presented that this last DIP represents an opportunity for interested investors.

DDOG shares declined to a somewhat strong profit report. The company has a flood of new products in business that will enhance its specialized cloud mode and artificial intelligence spaces.

Growth in these spaces also means increasing demand for security, and security work in Datadog is flourishing. All of these reasons make these reasons a convincing argument for the consensus price target of $ 152.93, which is more than 20 % higher than the current levels.

Bords collapse: Good news despite the “soft” numbers

Datadog stagnation may reflect early in August in partially invested the profit report in the second quarter of 2025, which some analysts described as “soft” on profits. However, the company outperformed Wall Street revenues and arrow profits (EPS). Revenue increased by 28 % on an annual basis (YOY) to nearly $ 827 million, which exceeds 35 million dollars expectations, while the share profitability reached $ 0.46 and five cents above estimates.

One of the main engine of this growth is the original customer base in the company, which now represents about 11 % of the total revenue and about 10 % of Yoy growth, with a sharp increase of 4 % of revenues in the previous year.

Datadog stock expectations today

The stock price expectations for 12 months:
153.10 dollars
Moderate purchase
Based on 30 analyst classifications
The current price 129.07 dollars
High expectations 200.00 dollars
Average expectations 153.10 dollars
Low expectations 105.00 dollars

Datadog stocks details details

The novice recession in Datadog in early August may be partially due to the profit report in the second quarter of 2025, which analysts criticized as “soft” on profits. However, the company Overcoming the predictions of analysts For revenues and one arrow profits (EPS). Revenue increased by 28 % on an annual basis (YOY) to reach approximately $ 827 million and $ 35 million before predictions, while the share profitability of 46 cents per share was 5 cents of expectations.

The indigenous customers of artificial intelligence leads this growth, as this sector represents about 11 % of total revenues and about 10 % of YO’s revenue growth. This category of customers contributed only 4 % of revenues a year ago.

The company also sees an increasing share of adult customers with repeated annual revenues (ARR) of at least $ 100,000. As of the end of the quarter, there were about 3,850 Datadog client in this group, an increase of 14 % on an annual basis. Although the renovations between these big customers can sometimes lead to some revenue fluctuations, they give the company a strong basis of strong and repeated revenues that depend on it.

This also helped enhance operation and free cash flow. The cash flow of $ 200 million increased by approximately 22 % on an annual basis, while the free cash flow of $ 165 million increased by about 15 % during the same period.

Maybe more importantly, Datadog raised its directives At the time of release. You are now expecting the revenue of 2025 for the entire year to the limits of $ 3.312 billion and 3.322 billion dollars. Investors may take this as reassurance that the company’s artificial intelligence tools continue to pay attention among potential customers.

A wave of new products, especially in artificial intelligence, leads to increased security

When talking about artificial intelligence tools, at its annual conference in June, Datadog announced a set of new products that are close to 125, focusing on tools that focus on artificial intelligence to meet the increasing demand. These include independent artificial intelligence factors for safety monitoring, cloud coding assistants, artificial intelligence, tools, improved data monitoring and more.

Bits’s Bits Ai Sre, Dev agent, and security analyst are in particular. These tools help increase customer growth in general and increase revenues from existing customers.

The company explained that, starting from the end of the quarter, the adoption of the artificial intelligence tool reached about 4,500 of its client about 31,400 customers.

Since it is increasingly common for companies all over the sectors using the cloud infrastructure from artificial intelligence, these companies will also require more monitoring and in -depth safety solutions. ARR of security is $ 100 million in the second quarter, which represents YOY growth in the mid -40 % range.

The new AI tools of Datadog should help consolidate its location as the AI-TO AI provider.

DDOG shares are not cheap: P/E for the company is 363.6 high. However, if it can realize the growth expected by analysts, then increasing profits by 67.8 % in the next year, for example, this evaluation will be much easier. After inserting it in the last quarter of the S&P 500, the Ddog officially joined the Big Dogs. Buy the current decrease There may be justified.

Before you think about Datadog, you will want to hear this.

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