Datadog (DDOG): analysis in plain words
Is Datadog cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Datadog (DDOG) is listed on the Nasdaq and we classify it in software and cloud. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Datadog according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Datadog (DDOG) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $188.72 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 377.4x | Price over earnings per share |
| Revenue growth | +35.6% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 4.5% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $67.8 billion | What the stock market values it at |
The Datadog figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any DDOG figure that is not available shows as N/A: we do not estimate it.
How Datadog makes money
Datadog sells subscriptions to a cloud platform that monitors servers, applications, logs and security across a company's tech stack. Customers ranging from startups to large enterprises pay based on usage and the number of products they adopt, such as Infrastructure Monitoring, APM and Log Management. North America is its largest market.
Over the last 12 months, Datadog brought in revenue of $4.0 billion. For every 100 it sells, Datadog keeps 79.5 after the direct cost of what it sells (gross margin) and 0.7 after all operating costs (operating margin). With 8,100 full-time employees, that is about $490,000 of revenue per employee.
Datadog against its sector
To know whether a Datadog figure is high or low you have to put it next to similar companies. This table compares Datadog with the median of the 19 software and cloud companies Fintols covers, with data as of November 4, 2026.
| Figure | Datadog | software and cloud median |
|---|---|---|
| P/E | 377.4x | 29.0x (19) |
| Revenue growth | +35.6% | +20.5% (25) |
| Net margin | 4.5% | 16.0% (25) |
| Dividend yield | 0.00% | 0.00% (25) |
| Net debt / EBITDA | -44.7x | 0.1x (23) |
In short, against the typical software and cloud company, Datadog trades on a higher P/E, grows faster and earns a thinner margin. By size, Datadog ranks number 17 of 22 software and cloud companies quoted in USD on Fintols.
The bull case for Datadog
What works in favour of Datadog, according to its figures as of November 4, 2026:
- Datadog grew sales +35.6% in its latest quarter against the same quarter a year earlier, while the median software and cloud company Fintols tracks grew +20.5%.
- Analysts expect Datadog earnings to rise: its P/E on the next 12 months of estimated earnings is 63.3x, below the current 377.4x.
- Datadog holds more cash than debt (net cash), so it does not depend on lenders to keep investing and is better placed to ride out a bad year.
The main risk for Datadog
The price already assumes a lot: Datadog trades at 377.4x its last 12 months of earnings, against 29.0x for the software and cloud median. If growth disappoints, the multiple can shrink and the share price with it.
On top of that: datadog stock sits 37% below its 52-week high ($300.68): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of software and cloud, Datadog is exposed to a competitor or AI making what it sells cheaper and forcing price cuts.
Frequently asked questions about Datadog
Is it a good time to buy Datadog stock?
Fintols does not tell you whether to buy or sell Datadog, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Datadog stock trades at $188.72, 37% below its 52-week high ($300.68) and 93% above its low ($98.01). Its P/E is 377.4x against a software and cloud median of 29.0x, and 63.3x on the earnings analysts expect over the next 12 months. With Datadog, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Datadog pay a dividend?
No. As of November 4, 2026, Datadog does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Datadog today is counting on the share price rising, not on income.
Is Datadog stock expensive?
It depends on what you compare it with. On P/E, Datadog trades at 377.4x its last 12 months of earnings: more expensive than the software and cloud median (29.0x). Including its debt, Datadog is valued at 910.5x its EBITDA (EV/EBITDA). A high P/E alone does not make Datadog expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Datadog's competitors?
On Fintols we compare Datadog with Snowflake, Cloudflare and Zscaler, which are also in software and cloud. As of November 4, 2026, Snowflake is worth $102.5 billion; Cloudflare is worth $94.9 billion; Zscaler is worth $36.6 billion. Each has a side-by-side comparison with Datadog below.
Datadog competitors
- Snowflake (SNOW) analysis · Datadog vs Snowflake comparison
- Cloudflare (NET) analysis · Datadog vs Cloudflare comparison
- Zscaler (ZS) analysis · Datadog vs Zscaler comparison
To understand Datadog better
- Economic Moats Explained: From Warren Buffett to AI
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Datadog: software and cloud stocks and S&P 500 companies. Open the full DDOG analysis with its valuation and scenarios. Educational content about Datadog, not investment advice.