Hey, fabulous ladies! 💁♀️ Who’s ready to chat about making those dollars work smarter, not harder? Today, we’re diving into the world of AI and how it’s not just for tech wizards—it’s creating serious cash flow on Wall Street and beyond. So, let’s talk about a tech stock that’s catching everyone’s eye: Datadog (DDOG).
First up, why should you care about Datadog? Well, between 2019 and 2021, this stock was the talk of the town with a whopping 400% rise. But like a wild roller coaster ride, 2022 wasn’t so kind, and it took a dip. Fast forward, and sentiment is shifting again. Datadog offers cloud monitoring services for big-name enterprises, keeping their digital engines purring. With the rise of AI, their services are hotter than ever.
Here’s the scoop: 46 analysts are keeping tabs on Datadog, and the majority are giving it a thumbs up. Ten say it’s a strong buy, 28 call it a buy, and eight suggest holding—none recommend selling. The 12-month price target is buzzing around $139, which is a sweet 9% more than its current trading price. 😎
Now, why the AI buzz? Datadog’s bread and butter is keeping an eye on cloud assets—super important for any company that doesn’t want to face tech glitches, lost revenue, or unhappy customers. As AI tech like large language models (LLMs) spreads, Datadog finds itself monitoring these new tools, which means more revenue streams. Talk about being in the right place at the right time!
In the first quarter, Datadog reported that 8.5% of its revenue came from AI-native clients, up from just 3.5% a year before. Management even upped their annual revenue forecast by $40 million thanks to this growth. While these aren’t jaw-dropping numbers, they show that Datadog is benefiting from the AI wave. If they hit these targets—or beat them—we might see the stock climb higher.
Let’s talk numbers! 📊 Datadog’s valuation, judged by its price-to-sales (P/S) ratio, is much lower than its peak during the glory days of 2020 and 2021. Right now, it sits at around 16, compared to a sky-high 60 at its peak. Sure, 16 is still higher than many tech stocks, but it’s much more reasonable and could be a sweet spot for long-term investors looking to dive in.
The AI revolution is giving Datadog a boost, and analysts are fairly optimistic about its future. With its current valuation below its long-term average, this might be a golden opportunity for savvy investors.
Ladies, if you’re thinking about sprucing up your portfolio with a touch of tech glam, Datadog could be the one to watch. Want to chat more about making money moves and investing in style? Slide into my DMs or join my mailing list to keep the convo going. Let’s build that wealth, gorgeous! 💸✨
