Datadog: Best-In-Class Efficiency And AI Tailwinds
- Datadog's growth remains stable despite challenging macro conditions, largely due to incremental demand from AI native customers.
- Datadog's customer acquisition continues to moderate rate though, and the company's net retention rate remains depressed.
- A range of alternative data also suggests that the demand environment has begun to soften. As a result, investors need to be prepared for a material growth slowdown in Q4.
- Looking further ahead, Datadog retains a strong competitive position and continues to generate efficient growth. This, along with a reasonable valuation should lead to solid returns.
Jonathan Kitchen
Datadog’s (NASDAQ:DDOG) business continues to perform reasonably well, despite the tough demand environment, with generative AI and an expanding product portfolio helping the company to generate stable growth.
I previously suggested that optimism regarding Datadog's stock may
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
