Datadog's FY24 Revenue Consensus Do Not Align With Management's Historical Guidance Trends - This Analyst Downgrades Stock
Portfolio Pulse from Anusuya Lahiri
Wells Fargo analyst Andrew Nowinski downgraded Datadog Inc (DDOG) from Overweight to Equal-Weight and lowered the price target from $120 to $95. The downgrade is based on cost optimization trends, FY24 consensus revenue estimates not aligning with management's historical guidance trends, Datadog's potential to gain share following Cisco Systems' acquisition of Splunk Inc, and Datadog's new AI-based solutions. Nowinski projects Q3 revenue of $523 million vs. consensus $524.16 million and EPS of $0.34.
October 30, 2023 | 5:09 pm
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NEUTRAL IMPACT
Google's comments align with the cost optimization trends that are impacting Datadog's revenue growth.
Google's comments align with the cost optimization trends that are impacting Datadog's revenue growth. This could potentially impact Google's own cloud services.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Alphabet's comments align with the cost optimization trends that are impacting Datadog's revenue growth.
Alphabet's comments align with the cost optimization trends that are impacting Datadog's revenue growth. This could potentially impact Alphabet's own cloud services.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Microsoft's comments align with the cost optimization trends that are impacting Datadog's revenue growth.
Microsoft's comments align with the cost optimization trends that are impacting Datadog's revenue growth. This could potentially impact Microsoft's own cloud services.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Cisco's acquisition of Splunk could lead to Datadog gaining market share, as customers migrate away from Cisco and Splunk to Datadog.
The acquisition of Splunk by Cisco could lead to customers migrating to Datadog, potentially negatively impacting Cisco's market share in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Datadog's stock was downgraded by Wells Fargo due to cost optimization trends and FY24 revenue estimates not aligning with management's guidance. However, potential market share gain and new AI solutions could drive growth.
The downgrade by Wells Fargo based on cost optimization trends and FY24 revenue estimates not aligning with management's guidance could negatively impact Datadog's stock in the short term. However, the potential for market share gain and new AI solutions could provide long-term growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Splunk's acquisition by Cisco could lead to Datadog gaining market share, as customers migrate away from Cisco and Splunk to Datadog.
The acquisition of Splunk by Cisco could lead to customers migrating to Datadog, potentially negatively impacting Splunk's market share in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60