Datadog (DDOG) closed at $260.36 on October 19 and has returned 97.7% over six months. Revenue rose 35.60% year on year, and operating cash flow reached $1.23 billion against $3.97 billion in revenue, but reported operating profit is only 0.67% of revenue, largely absorbed by costs including stock-based pay. The article argues the share price nearly doubled without a comparable change in reported results, so the move reflects expectations rather than delivered earnings. At 84.75 times expected next-year earnings, the stock needs growth to hold and the margin to widen. The article emphasizes that the reported margin, rather than revenue, is the figure to watch.
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