Datadog
DDOGMarket price data through November 12, 2026.
Performance
Nov 2021 – Nov 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- +71%
- How much this stock is up since Benson first picked it — measured from the price at the time of that first pick, not from today.
- First pick price
- ~$108
- Roughly what one share cost when Benson first picked this stock. This is the starting line for the Benson Return.
- Tracking since
- September 2024
- The month this stock first became a Benson pick.
- Tracking duration
- 26 months
- How long Benson has been tracking this pick.
About Datadog
Datadog is the company that watches every other company's software to make sure it works. Engineers use it to spot when apps are slow, broken, or under attack, and Datadog charges based on how much software is running. As businesses build and launch more AI, Datadog gets paid to keep an eye on all of it.
The case for and against
Both sides of the story, in plain English.
- Growth Keeps Rolling
Revenue grew 35% year over year to 1.2 billion dollars this quarter, and Datadog raised its full year forecast to about 4.52 billion dollars. Customers paying 100,000 dollars or more a year rose 20% to about 4,860, up from roughly 4,060 a year ago. When the biggest companies keep spending more, it shows Datadog has become part of how they run.
- Profits Picking Up
For every dollar of sales, Datadog now keeps about 28 cents as operating profit before stock pay, up from 23 cents last quarter. It brought in 251 million dollars of free cash in three months and holds 5.2 billion dollars in cash. Its new homegrown AI model, Scout 1.0, tracks down software problems as well as top outside models at a fraction of the cost, which should help keep profits climbing.
- Thin Reported Profit
On a strict accounting basis, Datadog earned 75 million dollars of operating profit on 1.2 billion dollars of sales, just a 6% margin. Most of the gap between that and its 334 million dollar adjusted figure is stock handed to employees, which shrinks each shareholder's slice over time. That is a big step up from last quarter's near zero, but the stock still carries a premium price for profits this thin.
- Cloud Giants Circling
Amazon, Microsoft, and Google all sell their own monitoring tools bundled into cloud bills, and they can discount hard. Datadog's own forecast for next quarter is 1.19 to 1.20 billion dollars, roughly flat with this quarter, and growth in big customers slowed to 20% from 23% last quarter. Newer AI monitoring startups are chasing the same budgets too.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-11-12. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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