Is Datadog Stock a Buy?
Beyond its better-than-expected first-quarter results, Datadog (NASDAQ: DDOG) is poised to benefit from the secular shift to cloud computing. Yet because of the recent tech sell-off, the stock has dropped by more than 30% from its February all-time high. So should investors take this opportunity to consider buying Datadog stock?
Thanks to its unified and easy-to-use observability platform that provides deep monitoring of modern cloud infrastructures and applications, Datadog has been generating strong revenue growth over the last several years, and the first quarter was no exception.
Revenue increased by 51% year over year to $199 million, way above the guidance range of $185 million to $187 million. And given its confidence in the company's business, management raised its full-year revenue forecast to the range of $880 million to $890 million, which corresponds to impressive year-over-year growth of 47%.
Source Fool.com
