If you are wondering whether Datadog’s share price lines up with its business story, or if the stock is pricing in too much hope, you are not alone.
After a strong multi year run, the stock is now about 12.5% lower year to date, with a 16.7% decline over the last month and a 6.8% drop in the past week, on top of a 15.5% decline over the last year. This reshapes how some investors may be thinking about its risk and return trade off.
Recent headlines have focused on Datadog’s position in cloud based monitoring and observability, as the market reacts to changing expectations for growth across software companies. This context helps explain why the stock’s 3 year return of 58.8% and 5 year return of 13.0% now sit alongside more recent share…
