Market SentimentThe combination of an increasingly complex macro environment and the market’s growing realization of the longer-term nature of the enterprise software industry’s ramp to material, gen AI monetization will weigh on richly valued software stocks.
Revenue GrowthDatadog’s 3Q:24 outlook calls for a sharp deceleration in YoY revenue growth.
ValuationDatadog trades at one of the richest valuations in the coverage on a CY25E EV/revenue basis at 12.0x, second only to ServiceNow, indicating shares are fairly valued at current levels.