Datadog, Inc. DDOG
Strong Cloud & SaaS sector · Monitoring and observability for cloud apps — usage grows as customers' cloud grows.
Datadog, Inc. (DDOG) is an established Cloud & SaaS company, graded Strong on FrontierLab's evidence-based quality rubric (data as of 2026-10-05). Revenue grew 31.5% year-over-year at a 79.5% gross margin. Gross-profits-to-assets is 0.42; Rule of 40 is 31.9. Net share issuance 1.9% YoY (modest issuance). No risk flags are currently noted. Analyst mix: 51 buy / 4 hold / 1 sell. Track record: 55% of Strong-graded names beat the S&P over 63 sessions (95% CI 38–72%, N=29). Median excess vs the S&P was +2.2%.
These sentences are generated from the day's data by deterministic templates.
Key quality signals
| Revenue growth (YoY) | 31.5% |
|---|---|
| Gross margin | 79.5% |
| Gross profits / assets | 0.42 |
| Rule of 40 | 31.9 |
| Net margin | 0.4% |
| Cash runway (months) | — |
| PEG | 13.1 |
| Price / sales | 24.9 |
Quality checklist
Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.
- ~ Revenue growth — 31.5% (pass ≥ 20%)
- ✓ Gross profits / assets — 0.42 (pass ≥ 0.33)
- · Rule of 40 — 31.9 (context — graded for software only)
- ✓ Gross margin — 79.5% (pass ≥ 72% · Cloud & SaaS)
- ✓ Cash generation
- ~ Share dilution — 1.9%
- ~ Competitive moat — Narrow
- ✓ Market size (TAM) — Large
Grade history
- 2026-08-10 — Strong (from Promising (early))
- 2026-06-10 — Promising (early) (first graded)
Every grade change since FrontierLab began tracking this name — the receipts behind the current grade.
How have Strong-graded names performed?
The forward returns of all Strong-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.
| Window | Forward record vs the S&P | Median |
|---|---|---|
| ~1 month | 50% of Strong-graded names beat the S&P over 21 sessions (95% CI 33–67%, N=30). | Median excess vs the S&P was +0.9%. |
| ~3 months | 55% of Strong-graded names beat the S&P over 63 sessions (95% CI 38–72%, N=29). | Median excess vs the S&P was +2.2%. |
| ~6 months | building — 46 more sessions needed | |
Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →
How it compares
Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.
Fundamentals
| Market cap | $98.68B |
|---|---|
| Stage | Established |
| Share issuance (YoY) | 1.9% · modest issuance |
| Moat | Narrow |
| TAM | LARGE |
| P/E (trailing) | 561.6 |
| EPS (trailing) | $0.49 |
| Burn multiple | — |
| Gross-margin trend (pts) | -0.4 |
| Cash / assets | 0.66 |
| Accruals (%) | -15.7% |
| Net debt / EBITDA | 3.2 |
| Statements as of | Q2 FY2026 · filed 2026-08-06 |
Momentum context — describes the past, not a signal
Low reached Feb 23, 2026 · high reached Aug 4, 2026 — by daily close.
| Price | $277.22 (as of 2026-10-02) |
|---|---|
| Last session move | — |
| % off 52-wk high | -5.3% |
| RSI (14) | 71 |
| Relative volume | 0.6× |
Insider activity (90 days)
| Cluster buyers | 0 |
|---|---|
| Sellers | 12 |
Insider selling is routine diversification, not a bearish signal.
Analyst mix
| Strong buy | 15 |
|---|---|
| Buy | 36 |
| Hold | 4 |
| Sell | 1 |
| Strong sell | 0 |
Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.
From the headlines
Datadog stock performing strongly with positive analyst outlook and historical gains.
AI take — daily, AI-generated
AI leans cautious
Exceptional 31.5% growth and 79.5% margins are offset by a punishing 13.1 PEG ratio and rising dilution, making it expensive even for a compounder.
Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.
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Data as of 2026-10-05 08:19 (end-of-day). How grades are computed →