(NASDAQ: DDOG) has been a steady winner as observability becomes essential infrastructure in the cloud era. The monitoring-and-security platform specialist sells a broad suite that helps developers and security teams watch over applications, logs, infrastructure, and now artificial intelligence (AI) systems.

The business itself continues to execute. In early August, Datadog reported another quarter of double-digit top-line expansion and strong free cash flow, and it guided to continued growth in the back half of 2025. The question for investors now is not whether the company is good (it is), but whether the current price fairly reflects both the opportunity and the risks. That's where the case gets tougher.

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Source Fool.com