Why Datadog, MongoDB, and Atlassian Rallied Big Today
Shares of cloud-based enterprise software stocks Datadog (NASDAQ: DDOG), MongoDB (NASDAQ: MDB), and Atlassian (NASDAQ: TEAM), rallied big on Tuesday, up by 10.2%, 6.8%, and 6%, respectively, as of 2:51 p.m. ET.
Their moves higher were likely due to industrywide and macroeconomic forces -- specifically, Tuesday morning's release of the October Producer Price Index report, which showed inflation by that measure was lower than expected. Additionally, some high-profile hedge funds and family offices issued their third-quarter 13F filings this week, and those reports showed some prominent investors have been increasing their positions in software stocks, especially Datadog.
The Producer Price Index (PPI), which measures the wholesale prices that companies are paying for commodities, goods, and services, rose by just 0.2% month over month in October, lower than the 0.4% increase that analysts had expected. That result dovetails nicely with last week's Consumer Price Index (CPI) report, which also came in lower than expected and caused a similar surge in technology stocks following its release.
Source Fool.com
