Investment opportunity in Datadog shares
1. Nasdaq Composite Market Status:
- First half of 2024: 20% growth with almost no volatility.
- Since July: 6.5% decline due to weak economic data and currency shock in Japan.
2. Stock Development Datadog $DDOG+2.1% :
- Last Month: Down 9.5% during the broader stock market sell-off.
- Current price: 39% below 2021 all-time high.
3. Key Technologies Datadog $DDOG :
- Cloud monitoring platform: preventing technical errors in digital infrastructure.
- Artificial Intelligence: Bits AI tool and large language model (LLM) observation.
4. Financial results:
- Q2 2024: Revenue grew 27% to $645.2 million.
- AI revenue: up 4%, doubling from last year.
- Profit: Net profit of $43.8 million compared to a loss of $3.9 million last year.
5. Wall Street expectations:
- Recommendation: Most analysts rate the stock a "buy".
- Target Price: $144.89 average (27% upside), $160 high (40% upside).
Analyst Data:
- P/S ratio: Currently 17.8, 40% below historical average.
- Number of customers using AI: Approximately 2,500, representing 8.7% of all customers.
- Profitability: Operating cost growth of only 18.5% (YoY), improving financial performance.
Datadog shares, now 39% below their all-time high, represent an attractive investment opportunity. With their growing AI revenues and core technologies, they could deliver interesting valuations in the future.
Very nice growth. It finally managed to get into the green with margins. Looks like a solid opportunity. I'm going to explore more :)