DDOG Datadog, Inc. - Fundamental Analysis
NEUTRAL
DDOG Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Software - Application
Current Price
$133.77
Analyst Target
$212.44
+58.8% Upside
52W High
$201.69
52W Low
$81.63
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
68%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed financial profile: the Piotroski F-Score of 4/9 indicates borderline stable financial health, while the Altman Z-Score of 59523305917.6 suggests an extremely low risk of distress. Despite strong revenue growth and consistent earnings beats, the stock trades at a steep valuation (P/E 431.52, Price/Sales 14.61) far above Graham’s defensive fair value of $8.27 and intrinsic value of $2.17, reflecting aggressive growth expectations. Negative operating margin, declining earnings growth (YoY -33.7%), and bearish insider activity offset strong top-line momentum and robust cash conversion. Analysts maintain a strong_buy consensus, but technical trend and recent price performance are weak.
Key Strengths
Exceptionally high Altman Z-Score (>59 billion) indicates near-zero bankruptcy risk and strong balance sheet resilience
Consistent earnings surprise record: 24 of 25 quarters beat estimates, with an average surprise of +20%+ in recent years
Strong revenue growth at 28.4% YoY, significantly above sector average of 19.85%
High gross margin of 79.96%, reflecting scalable software business model and pricing power
Strong liquidity position with current ratio of 3.66 and quick ratio of 3.55, indicating excellent short-term financial flexibility
Key Risks
Low Piotroski F-Score of 4/9 signals weak profitability, declining ROA (-0.50%), and negative operating margin (-0.66%)
Extremely high valuation: P/E of 431.52 is more than 4x the sector average and suggests significant overvaluation relative to earnings
Negative YoY earnings growth of -33.7% and declining Q/Q EPS growth raise sustainability concerns despite revenue momentum
Bearish insider sentiment: 9 sell transactions totaling $35.95M in the last 6 months with zero buys, indicating lack of confidence from executives
Technical trend score of 0/100 and 6-month price decline of -13.8% suggest weakening market sentiment and momentum
AI Fair Value Estimate
Based on comprehensive analysis
$8.27
-93.8% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare DDOG against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations