Datadog shares fell sharply on Wednesday, dropping as much as 14.6% and still down 13.8% as of 11:11 a.m. ET, even though third-quarter results beat expectations. Revenue rose 35% year over year to $1.2 billion and adjusted EPS of $0.81 rose 47%, both well above analyst estimates, while customers spending $100,000 or more in ARR grew 20% to 4,060. Datadog raised its full-year 2026 outlook to $4.52 billion in revenue and $2.74 in adjusted EPS, but its fourth-quarter revenue guidance implies growth slowing to roughly 25%. With the stock trading at 76 times forward earnings, that slowdown weighed on sentiment, and the author argues the sell-off may not last because Datadog tends to under-promise and over-deliver.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Datadogearningssoftwarevaluation
Open a keyword to see other news on the same topic.
Related news
- Datadog, Inc. Q3 2026 Earnings Call Summary
- Datadog Beats Earnings Expectations. The Stock Is Acting as If It Didn’t.
Datadog stock fell as investors reacted as if the company had reported disastrous earnings.
- Datadog’s stock extends steep declines in the wake of earnings
Datadog's stock continued to fall steeply after its earnings report. The company's revenue forecast failed to top expectations.
- Datadog Stock Gets an Upgrade as OpenAI Setback May Be Fading
A Bernstein analyst says Datadog's artificial-intelligence customers are spending more than expected. The article also notes the upgrade comes as an OpenAI setback may be fading.
- Datadog Stock Fell Nearly 12% as AI Spending Fears Hit Cloud Stocks. Its Earnings Estimates Didn't Move
Datadog (DDOG) closed at $235.27 on October 30, down 11.50% with no company announcement behind the drop, a move the article links to AI spending fears after Amazon and Intel results, even though Amazon's cloud unit grew 39.3%. The stock fell 14.1% in October from $273.85 at the end of September, while the next-12-month EPS estimate stayed near $2.65 and the forward P/E dropped from about 103 times to about 89 times. The Street's mean target rose to about $294, and Wells Fargo raised its target to $325 from $295. TechCrunch reported that Upwind walked away from a reported near-$4 billion offer and raised $400 million instead, though neither company has confirmed the talks. Datadog reports third-quarter results on November 4, with revenue guidance of $1.135 billion to $1.145 billion, and the 2027 EPS estimate, now about $2.98, is the figure the article highlights to watch.
- What Is Going On With Zoom Stock?
Zoom Communications (ZM) trades at 8.3 times earnings, versus 22.8 times for the median S&P 500 company, even though the software maker expanded sales, margins and cash flow in the twelve months to July 2026. At the end of July 2026, Zoom held $7.25 billion in cash and short-term investments against about $60 million of debt, and repurchased about $352 million of stock in fiscal Q2 2027. However, the 8.3 multiple is based on $3.26 billion in net income over the twelve months to July 2026, almost three times the $1.19 billion in operating profit over the same period. Revenue growth was 5.0% in the latest twelve months versus 8.5% for the median S&P 500 company, Enterprise revenue rose 7.8% in fiscal Q2 2027, and management guides to 3.9% revenue growth at the midpoint for fiscal Q3 2027. The shares returned 5.4% in the year to November 2, 2026, trailing the S&P 500's 10.3%, and buyers are betting that Enterprise growth can lift total growth.
Related markets
Latest news
- 6-month currency swap: Supporting liquidity, easing interest rate pressure
Mr. Nguyễn Thế Minh, Director of Investment Banking at ABS Securities, views the State Bank of Vietnam's 6-month foreign currency–VND swap operation as a suitable measure to support VND funding for credit institutions as interbank rates have trended upward. Exchange rate pressure has eased significantly compared with last year, creating favorable conditions for the operation. The relatively favorable swap cost could help banks balance liquidity and ease short-term interest rate pressure, while household deposits have recently risen. However, the maximum size of USD 2 billion and the 6-month tenor mainly address temporary liquidity needs and do not solve long-term funding issues.
- Why are banks cutting staff en masse?
Staffing in the banking sector is diverging: many banks have cut jobs after restructuring, while others are still hiring. KienlongBank's headcount fell by 1,078 to 2,596 in just one quarter as of 30 September, tied to network reorganisation and a shift to multichannel service; Sacombank cut 3,738 staff in the first six months, and Eximbank's headcount fell by 783 from the start of the year to 5,358. By contrast, ACB added 236 staff to reach 12,691. Expert Nguyễn Quang Huy says the adjustments reflect business model transition and changing skill needs rather than a negative layoff wave, while Dr. Châu Đình Linh says digitalisation and automation are accelerating restructuring, with fewer but higher-quality staff.
- Why Horace Mann Educators stock soared today
Horace Mann Educators reported third-quarter results after the market close on Tuesday, and its stock rose nearly 6% the next day. Revenue was just over $439 million, marginally higher year over year, while core non-GAAP net income rose 50% to more than $85 million, or $2.06 per share, an all-time high. Both figures beat analyst estimates of $323 million in revenue and $1.08 per share. CEO Marita Zuraitis credited strong property and casualty underwriting, higher net investment income and growth across diversified businesses. The company raised its full-year core EPS guidance to $5.75–$5.95 from $4.60–$4.90, its second consecutive raise, and the author says the investor reaction was, if anything, understated.
- Bầu Hiển's wind power project in Laos reports profit of nearly VND 1,100 billion
T&T Group's Savan 1 phase 1 wind project in Laos recorded revenue of over VND 1,200 billion and gross profit of nearly VND 1,100 billion after nine months, with a gross margin of about 89%, according to its Q3/2026 report. The company says the project met its full-year revenue and profit plan after roughly 16 months of work, including 48 turbines and a nearly 70 km 220 kV line connecting to Vietnam's grid. Phase 2, at 195 MW, is expected to start construction late this year. T&T and Vinacom have also signed an MoU to develop the 495 MW Savan 2 project, with an estimated investment of about USD 768 million and commercial operation by 31/12/2028. Once completed, T&T's wind capacity in Laos is expected to reach 990 MW.
- Deposit rates on November 5 at Vietcombank, BIDV, VietinBank, Agribank, MB, VPBank, Techcombank, Sacombank, HDBank,...
Online deposit rates on November 5 varied widely across 35 banks, especially for terms of 6 months and longer. VPBank led the 18-month term at 7.4% a year, while five banks (MBV, PGBank, Sacombank, VCBNeo and VIB) listed 7% a year for 12 months. At the bottom, SCB offered just 0.6% a year for 18 months, 6.8 percentage points below VPBank. The article advises depositors to check the actual conditions at each bank and compare the same term and deposit method, noting that some bank staff may offer rates of 8–9% a year under certain conditions.
- Did IBM Just Tell the Truth About AI?
This Motley Fool Hidden Gems Investing podcast, recorded on October 22, 2026, covers Lam Research, a maker of semiconductor equipment whose stock was down about 9% and about 45% below its 2026 high, despite revenue rising 22% in the latest quarter. Its services business, which includes spares, upgrades and service contracts, posted $2.5 billion in sales, up 40%, and the company expects it to grow about 30% this year. The hosts explain advanced packaging, which stacks chips in layers for AI and high-bandwidth memory, and Lam expects related sales to grow about 70% this year. The episode also discusses IBM's view of AI spending and what could boost its business.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.