Datadog, Inc. (DDOG): one to watch?

Business is fine — it beat and raised guidance — but the stock was priced for perfection and is still not obviously cheap after the drop.

👀 WATCH Fundamentals57/100

Fell 20% in 3 trading day(s) — now $229.29

Why DDOG dropped

Datadog reported Q2 revenue up 36% and non-GAAP earnings beating estimates, and raised full-year guidance, yet the stock fell ~19-20% — a classic "sell the beat" reaction after the stock had nearly doubled over the prior year, as sequential guidance growth looked only modest relative to its lofty valuation.

Fwd P/E 77.7Op margin 0.5%Rev growth 35.6%Debt/equity 29.3%Analyst upside 21.9%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 4.5%

✅ Generates cash Free cash flow $978M

✅ Not drowning in debt Debt/equity 29.3% (limit 200%)

✅ Can pay its bills Current ratio 3.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 2/25

Operating margin 0.5% 0/9

Net profit margin 4.5% 2/8

Return on equity 4.7% 0/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 35.6% 9/9

Earnings growth 1469.4% 8/8

Expected profit change 489.9% 8/8

Value Is it cheap right now? 6/25

Forward P/E 77.7 0/10

PEG ratio 1.8 4/8

Analyst target upside 21.9% 3/7

Balance sheet Will it survive? 24/25

Debt / equity 29.3% 9/10

Current ratio 3.2 8/8

Free cash flow $978M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-07. Research only — not financial advice.