Sep 27, 2022 (PressReach.com via COMTEX) -- The Datadog stock /zigman2/quotes/214127379/composite DDOG -0.62% has lately sparked analyst interest.
Credit Suisse began coverage of Datadog stock /zigman2/quotes/214127379/composite DDOG -0.62% with an “outperform” rating on Friday. Earlier this week, Sterling Auty of Moffett Nathanson initiated coverage with a “buy” rating and a price target of $143, suggesting a 51.31% potential upside. In addition, middle-market investment bank Robert W. Baird initiated coverage of the stock /zigman2/quotes/214127379/composite DDOG -0.62% with a target price of $120 and a “outperform” rating.
Market Evaluation of Datadog Stock
Since announcing its second-quarter results on August 4 , the Datadog stock /zigman2/quotes/214127379/composite DDOG -0.62% has lost momentum. Earnings per share were $0.24, a 167% increase over the previous quarter.
Revenue was $406.14 million, much above the average expectation of $381.28 million. This was a 74% rise year over year.
The company’s profits increased by 80% to 300% in the last five quarters . In the previous eight quarters, revenue increased at high double-digit rates.
Datadog highlighted many new service collaborations and advancements in its earnings announcement. It also said that it had around 2,420 clients with annual recurring revenue of $100,000 or more, a 54% increase over the previous quarter.
Wall Street predicts a profit of $0.80 per share for the whole year, a 67% rise. This is expected to rise 34% to $1.07 per share in 2023.
What caused the Datadog stock to fall?
Obviously, part of the rationale is the same for most stocks: concerns about interest rates, inflation, recession, and a general market downturn.
However, in the case of Datadog, there was some company-specific news that disappointed investors: the company’s outlook was only in line with expectations rather than exceeding them.
Revenue of $410 million to $414 million.
The non-GAAP operating income ranges from $51 million to $55 million.
Net income per share non-GAAP between $0.15 and $0.17
It anticipates the following for the whole year:
Revenue of $1.61 billion to $1.63 billion.
Non-GAAP operating income ranges from $255 to $275 million.