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Datadog shares drop 14% despite strong earnings and raised outlook due to cautious Q4 guidance.

Company Fundamentals
04 Nov 2026, 21:47 WIB
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Bearish
Datadog shares drop 14% despite strong earnings and raised outlook due to cautious Q4 guidance.

Datadog reported better-than-expected Q3 earnings with 35% revenue growth and raised its full-year outlook for the third consecutive quarter. However, its stock fell 14% as the Q4 revenue guidance suggested slower growth of 25-26%, partly due to conservative assumptions about its largest customer's spending and early renewals at lower prices from AI clients. Despite the sell-off, the core business shows accelerating growth, and investors are advised to watch Q4 customer spending, billings, and free cash flow margin for clearer signals. The stock remains highly valued, trading near 70 times expected fiscal 2026 earnings, indicating the need for near-perfect execution going forward.

Datadog's stock is down 15.09% on Pluang, trading at USD 187.24 as of Nov 05, 2026 03:01 WIB. The stock shows strong buying interest with 71% of orders as buys and a typical hold time of 77 days on the platform.

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