Below is an important message from one of our highly valued sponsors. Please read it carefully as they have some special information to share with you.
Dear Reader,
James Altucher here.
2 critical things recently happened…
That could unleash a tidal wave of wealth for Americans so massive…
I believe it will turn a modest $900 investment…
Into a life-changing $108,000 windfall in just 12 months.
The 1st thing that happened…
And the 2nd thing that happened?
NOTE: The last time this 2nd thing happened more than 80,000 people became new millionaires!
But this time may be your LAST CHANCE to join them.
Click here to learn the critical facts NOW.
Best,
James Altucher
Best-selling author; hedge fund manager; entrepreneur
Why Datadog Is the AI Infrastructure Firm to Watch Out For
Written by Nathan Reiff. Published 8/18/2025.
Key Points
- Datadog's recent slump may be an opportunity to buy a firm poised for long-term growth.
- Despite a less-than-stellar market response, the company's recent earnings were quite strong and showed multiple reasons for optimism.
- A wave of new products and a surge in AI security demand could benefit Datadog.
Shares of cloud monitoring and security services firm Datadog Inc. (NASDAQ: DDOG) have had a rollercoaster year, declining sharply between February and April, rising through late July, and falling again in August, leaving DDOG with a year-to-date (YTD) return of -11.4%.
Investors may hesitate after the recent pullback, but with 24 out of 30 analysts rating DDOG a Buy, this dip could represent a compelling entry point. Despite the stock's volatility, the firm continues to innovate, reporting strong earnings and rolling out new products that reinforce its leadership in cloud and AI infrastructure.
As demand for cloud and AI solutions grows, so does the need for robust security monitoring—an area in which Datadog is thriving. With a consensus price target of $152.93, roughly 20% above current levels, the case for a rebound is strong.
Earnings Breakdown: Good News Despite "Soft" Figures
Datadog's early-August slump may reflect investor concerns over its second-quarter 2025 earnings report, which some termed "soft" on profits. In reality, the company topped Wall Street expectations on both top and bottom lines: revenue climbed 28% year over year (YOY) to nearly $827 million—$35 million above consensus—while EPS of $0.46 beat estimates by $0.05.
Key to this performance is Datadog's AI-native customer base, which now accounts for about 11% of total revenue and contributes roughly 10% of YOY growth, compared with just 4% a year earlier. The firm also expanded its roster of large customers—those generating annual recurring revenue (ARR) of at least $100,000—to approximately 3,850, up 14% YOY. While renewals in this cohort can introduce some volatility, they provide a sturdy foundation of recurring revenue.
Cash flow metrics were similarly robust: operating cash flow rose nearly 22% YOY to $200 million, and free cash flow increased about 15% to $165 million. Datadog further boosted investor confidence by raising its full-year 2025 revenue guidance to a range of $3.312 billion to $3.322 billion.
Wave of New Products, Particularly in AI, Fuels Security Growth
At its annual DASH conference in June, Datadog unveiled a suite of more than 125 new and upcoming products focused on AI. Highlights include autonomous AI agents for security monitoring, AI-based coding assistants for cloud applications, and enhanced data observability tools.
Particularly notable are the Bits AI SRE, Dev Agent, and Security Analyst products, which have driven both new customer acquisitions and expanded usage among existing clients. As of the end of the quarter, about 4,500 of Datadog's roughly 31,400 customers had adopted at least one AI tool.
With enterprises across industries increasingly deploying cloud AI infrastructure, the demand for comprehensive monitoring and security solutions is intensifying. Datadog's security ARR surpassed $100 million in Q2, representing mid-40% YOY growth. The new AI-driven offerings should further cement its role as a leading provider of cloud security and observability.
At a P/E ratio of 363.6, DDOG shares appear expensive today. However, if the company meets analysts' projections for roughly 67.8% earnings growth next year, the premium valuation becomes more palatable. Fresh off its inclusion in the S&P 500, Datadog could be primed for another leg up—making this dip a potential buying opportunity.
This email message is a sponsored email for Paradigm Press, a third-party advertiser of MarketBeat. Why was I sent this email message?.
This ad is sent on behalf of Paradigm Press, LLC, at 1001 Cathedral St., Baltimore, MD 21201. If you're not interested in this opportunity from Paradigm Press, LLC, please click here to remove your email from these offers.
If you have questions or concerns about your subscription, please feel free to email our U.S. based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2025 MarketBeat Media, LLC. All rights protected.
345 North Reid Place #620, Sioux Falls, South Dakota 57103. United States of America..
0 Response to "2 Events to Unleash a TIDAL WAVE of Wealth in 2025?"
Post a Comment