Good DDOG. Very Good DDOG.
Extra Scooby Snacks For You!
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DataDog DDOG 0.00%↑ Q3 FY12/23 Earnings Review
by Alex King
DataDog, we believe, will benefit from the sale of Splunk to Cisco. (Recall we cited SPLK 0.00%↑ as an M&A target for the last 18 months or so, payday came long, thankyou and goodnight to that one!). When point solution companies like SPLK get sold to major suite vendors, customers don't love it. The best developers leave, the most productive sales execs leave, it all goes much more corporate than it used to be. This is great news for competitors. In application performance monitoring (sorry: AI-driven opsec or whatever these companies say they do these days), two names have been taken out lately - NewRelic, sold to a financial buyer, and Splunk to Cisco. That leaves Dynatrace (DT) and DataDog (DDOG) as the leading independents. If those companies were laggards, shareholders should worry, because it would mean probably a lessening of M&A exit opportunities. But it was SPLK and NEWR, the old lags of the sector, that got sold. So this is a great time to be a DT or a DDOG shareholder we think. Because both names should be gaining market share and have access to a range of highly qualified developers and salesfolk to hire.
DDOG's Q3 was rock solid. Let’s take a look at the numbers, valuation, and our stock price rating and outlook.