Datadog Tumbles 15% as Q3 Revenue Growth Forecast Slows to 29%
DDOG has more than doubled off its 52-week low of $98.01.
Summary
Datadog's Q2 beat and raised full-year outlook were overshadowed by a sharp Q3 revenue growth deceleration to ~29% YoY, down from 36% in Q2. The stock plunged more than 15% in premarket trading, erasing a chunk of its year-to-date gains. While Q3 guidance of $1.14B-$1.15B still topped consensus, the slowing growth trajectory spooked investors who had priced in sustained momentum. This follows the earlier Q2 beat report, but the market's violent reaction signals that the growth slowdown is the dominant narrative now.
At the time of this announcement, DDOG was trading at $239.90 on NASDAQ in the Technology sector, with a market capitalization of approximately $100.8B. The 52-week trading range was $98.01 to $292.72. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.