Datadog Inc

Datadog Inc (DDOG) Stock Analysis

$236.980

-5.806 (-2.45%)At close

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High
247.875
Open
240.220
VWAP
240.19
Vol
2.52M
Mkt Cap
42.97B
Low
235.725
Amount
605.32M
EV/EBITDA, TTM
716.21

Datadog Inc provides an AI-powered observability and security platform for cloud applications. Its Software as a Service (SaaS) platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and service management. Its proprietary platform combines the power of metrics, traces, logs, user sessions, security signals, and other data from a single agent and over 1,000 integrations to provide a unified view of infrastructure, application performance and real-time events impacting performance. Its solutions include built for dynamic cloud and hybrid infrastructures, simple but not simplistic, integrated data platform, built for collaboration, cloud-agnostic, ubiquitous, and integrates with its customers complex environments. Its platform is used by industries to enable digital transformation and cloud migration, and drive collaboration among development, operations, security and business teams.

AI analysis of Datadog Inc (DDOG)

buy

Datadog Inc is a good buy right now due to its current price of $236.98 being significantly below the average analyst price target of $280, which suggests a potential upside of about 18%. Additionally, the company has shown strong revenue growth, with Q2 2026 revenue reported at $1.12 billion, reflecting a year-over-year increase. However, a risk to consider is the high forward P/E ratio of 92.59, indicating that the stock may be overvalued relative to its earnings expectations.

Valuation Metrics

The current forward P/E ratio for Datadog Inc (DDOG) is 92.59, compared to its 5-year average forward P/E of 102.95.

Forward P/E

Fair
5Y Average P/E
102.95
Current P/E
92.59
Overvalued
183.58
Undervalued
22.32

Forward EV/EBITDA

Strongly Overvalued
5Y Average EV/EBITDA
133.45
Current EV/EBITDA
716.21
Overvalued
296.27
Undervalued
-29.38

Forward P/S

Fair
5Y Average P/S
16.37
Current P/S
15.95
Overvalued
24.07
Undervalued
8.67

Alphio AI Price Scenarios for DDOG

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%DDOG

$179.55

Scenario price

B

Base

Base · 50%DDOG

$156.29

Scenario price

B

Bear

Bear · 25%DDOG

$133.12

Scenario price

Whales holding DDOG

V

Voya Investment Management LLC

+ HoldingDDOG

-3.15%

3M Return

Events Timeline

2026-08-27 (ET)

10:00:00

Notable Gainers in Liquid Options Include Veeva, Salesforce, CrowdStrike, Palo Alto, and Datadog

2026-08-26 (ET)

16:30:00

Major Averages Quiet as Investors Digest Inflation Data

12:30:00

Major Averages Trade Tepidly as Investors Await Nvidia Earnings

10:00:00

Williams and Others See Notable Stock Gains

News

DDOG FAQ — answered by Alphio AI

Datadog Inc provides an AI-powered observability and security platform for cloud applications. Its Software as a Service (SaaS) platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and service management. Its proprietary platform combines the power of metrics, traces, logs, user sessions, security signals, and other data from a single agent and over 1,000 integrations to provide a unified view of infrastructure, application performance and real-time events impacting performance. Its solutions include built for dynamic cloud and hybrid infrastructures, simple but not simplistic, integrated data platform, built for collaboration, cloud-agnostic, ubiquitous, and integrates with its customers complex environments. Its platform is used by industries to enable digital transformation and cloud migration, and drive collaboration among development, operations, security and business teams. It operates in the Technology sector (SERVICES-PREPACKAGED SOFTWARE industry).

Datadog Inc is a good buy right now due to its current price of $236.98 being significantly below the average analyst price target of $280, which suggests a potential upside of about 18%. Additionally, the company has shown strong revenue growth, with Q2 2026 revenue reported at $1.12 billion, reflecting a year-over-year increase. However, a risk to consider is the high forward P/E ratio of 92.59, indicating that the stock may be overvalued relative to its earnings expectations.

This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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