Datadog surged forward by 187%. What is experts’ estimate?

Datadog surged forward by 187%. What is experts’ estimate?

Stock markets fluctuated over the last few weeks. A sell-off wave followed positive sentiment as investors feared that the pandemic would surge again. However, some stocks stayed strong and even flourished during the lockdowns.

Datadog is a cloud software company. It enables its clients to monitor the performance of databases, servers, networks, apps, and more. The company’s cloud-based SaaS offerings have already attracted well-known clients, such as FedEx FDX, Pelton PTON, and Deloitte, and it continues to add larger customers.

The company closed the first quarter with 960 customers with annual recurring revenue of $100,000. Overall, the stock skyrocketed by 90% over the last year. Datadog easily surpassed its first-quarter fiscal 2020 earnings estimate on May 11, with revenues jumping by 87%.

Furthermore, the firm recently launched its Security Monitoring offering. CEO Olivier Pomel stated that the coronavirus crisis had demonstrated the need to be digital-first and agile. It has also underscored the importance of observability into cloud environments, thus reaffirming the long-term opportunity for Datadog.

It is projected to reach $562.3 million. Investors should also consider that this would include FY19’s 83% sales growth.

Analysts expect the company to rebound from an adjusted loss of -$0.01 per share to +$0.03 in fiscal 2020 and surge forward to +$0.05 a share in FY21. Datadog’s longer-term earnings revisions have trended heavily upward so far.

What are the stock’s other advantages?

Wall Street applauds Datadog’s ability to expand during the current market’s conditions. The company went public in September 2019. And its shares skyrocketed by 187% since mid-March, surpassing Zoom’s 120% and Netflix’s 50% gains. The stock hit another new high on Wednesday.

Analysts think that Datadog will continue gaining. They recommend this stock, giving it a strong-buy rating. Despite the current uncertainty on the markets, caused by new coronavirus cases and fears of novel outbreaks, Datadog has a sure footing.