An Oversold Tech Stock Worth a Look: Datadog Inc (NASDAQ: DDOG)
Datadog is a cloud-native company that focuses on analyzing machine data. The firm’s product portfolio, delivered as software-as-a-service, allows a client to monitor and analyze its entire IT infrastructure. Datadog’s platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of different applications throughout their businesses.
Highlights:
- Datadog Inc. announced a global strategic partnership with Amazon Web Services, Inc. (AWS). As part of this collaboration, AWS and Datadog will work together to develop and deliver tighter product alignment in the future.
- Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%.
- Digging into valuation, Datadog currently has a Forward P/E ratio of 279.79. This valuation marks a premium compared to its industry’s average Forward P/E of 57.18.
- Shares of Datadog Inc (Symbol: DDOG) entered oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $135.03 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 46.6. A bullish investor could look at DDOG’s 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side
one year performance of DDOG shares:
Third Quarter 2021 Financial Highlights:
- Revenue was $270.5 million, an increase of 75% year-over-year.
- GAAP operating loss was $(4.9) million; GAAP operating margin was (2)%.
- Non-GAAP operating income was $44.0 million; non-GAAP operating margin was 16%.
- GAAP net loss per diluted share was $(0.02); non-GAAP net income per diluted share was $0.13.
- Operating cash flow was $67.4 million, with free cash flow of $57.1 million
- . Cash, cash equivalents, restricted cash, and marketable securities were $1.5 billion as of September 30, 2021
Quick Look at important numbers
Stock Recommendation: Company is expected to generate Revenue between $993 million and $995 million in 2022. Non-GAAP operating income between $133 million and $135 million. ◦ Non-GAAP net income per share between $0.39 and $0.40,
Looking at oversold status of the stock, MarketFacts anticipates a rally into the stock and can also be good investment for long term. MarketFacts gives a “Buy” rating on the stock at the closing Price of $128.05 as of January 26th, 2022.
| CMP (USD) (26th January 2022) | $128.05 |
| Target Price (CAD) | $160.50 |
| Recommendation | Buy |
