Why Datadog Stock Was Falling Today
Shares of Datadog (NASDAQ: DDOG) were down 5% as of 12:59 p.m. ET on Thursday. The software company reported slowing growth in the fourth quarter but still beat the consensus analyst estimate on revenue and earnings. The main issue was management's weak guidance.
The post-earnings drop brings the stock's year-to-date return to just under 15%. Investors clearly had high expectations for continued momentum in 2023, but they are having to readjust their forecasts.
Datadog is executing well, particularly in winning over large customers. The number of customers spending over $1 million with Datadog grew 47% year over year. Total revenue increased by 44% year over year in the quarter. But it's the trajectory of quarterly growth that has the market concerned.
Source Fool.com
