Why Datadog Shares Crashed on Wednesday
Shares of Datadog (NASDAQ: DDOG) cratered on Wednesday, following the company's third-quarter earnings report. The maker of monitoring tools for cloud computing systems crushed Wall Street's estimates, but some investors felt that the surprise just wasn't big enough. Share prices fell as much as 13.9% on Wednesday morning, recovering somewhat to a drop of 11% by 11:30 a.m. EST.
Datadog's sales rose 62% year over year to $155 million. The bottom line moved from breakeven to adjusted earnings of $0.05 per share. Your average analyst would have settled for earnings near $0.01 per share on roughly $144 million in revenue. The company also offered fourth-quarter earnings guidance in line with the current Street view, and management's revenue target for the next quarter exceeded the analyst consensus by $8 million.
Here's what's next for Datadog's shareholders. Image source: Getty Images.
Source Fool.com
