Long Position on DDOG @ $91.50 on 7/8/2020 (Fundamentals)

Datadog, Inc. (DDOG) provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally.

The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide real-time observability of customers technology stack.

Its platform also provides user experience and network performance monitoring, and various shared features, such as sophisticated dashboards, advanced analytics, collaboration tools, and alerting capabilities. 

Datadog Inc reported 1st Quarter March 2020 earnings of $0.03 per share on revenue of $131.2 million. The consensus estimate was a loss of $0.02 per share on revenue of $117.1 million.

The company said it expects second quarter non-GAAP results to range from breakeven to earnings of $0.01 per share on revenue of $134.0 million to $136.0 million. The current consensus estimate is a loss of $0.02 per share on revenue of $123.7 million for the quarter ending June 30, 2020. The company also said it now expects 2020 earnings of $0.02 to $0.06 per share on revenue of $555.0 million to $565.0 million. The company's previous guidance was loss of $0.07 to $0.03 per share on revenue of $535.0 million to $545.0 million and the current consensus estimate is a loss of $0.06 per share on revenue of $524.3 million for the year ending December 31, 2020.

This analytics platform acts as a securities software company. The technology sector is doing very well and Datadog's strong revenue and consistent profitability should push shares higher.

Entry point: $91.50

52-week trade range: $27.55 - $93.00

Stop/Loss: $87.00

Target Price: $102.00

Updates

9/28/2020 11:33:23 AM

DDOG closed at $94.50

Position closed on 9/28/2020 at price of $94.50 with a 3.28% gain in 82 days.

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