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Teach An Orca To Fish…
(To make sense of our marine theme, first read our recent note The Problem With Fundamentalism).
OK folks we have a ddoozy of a webinar today. DataDog DDOG 0.00%↑ reported earnings yesterday before the open, whereupon the following things happened:
The company printed so-so headline numbers
It also printed very strong underlying numbers, if you knew where to look
The stock dumped bigly (down about 18% on the day), spooking seals and sealions everywhere
Orcas knew to buy at the 200-day moving average, which just happened to be the same price zone as the .618 Fibonacci retracement of the Wave 1 up from the 2023 lows to the 2023 highs. What an amazing coincidence! It’s almost as if … stock prices aren’t random.
The stock may yet sell off further, but we are rather bullish on the name for the next year or two, not least because we see a determined game of seal-tossing afoot here.
Join our Pro-tier webinar today at 5pm Eastern. We’ll do the usual Nasdaq review, we’ll talk about Palantir earnings and a minnow called Matterport that we think can do things, but we’ll also spend some goodly time walking through the big ole game we think is going on at DataDog right now. Because it’s a game played over and over in single-stock high beta names and there are repeatable tricks to be learned from it.
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Cestrian Capital Research, Inc - 9 August 2023.
DISCLOSURE - Cestrian Capital Research, Inc staff personal accounts hold long positions in DDOG 0.00%↑