Expensive yes. Justifiable? It depends. After understanding the business, you should be looking at its TTM Revenue and TTM FCF prospects. DDOG is a market leading cloud monitoring and security platform, securing good partnerships with AWS, Google Cloud and Azure. DDOG has a pretty good TTM FCF margin of over 28% for its fast growth, but its true that high volatility and risk suggest a very high WACC discount rate. Before making any preliminary conclusions about so called overpricing/underpricing, I suggest you show me a DCF and CCA valuation model to justify.
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woof woof
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Wow, up 17%. It's about time we got some good news.
J
80 maybe fv
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I finally initiated a position today DDOG. 125 shares. 100 for the wheel, and 25 for down the road.
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I am bullish on this stock, remember it has been as high as 199. It is a well run company with a great reputation .
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P/E of 36000, I see an undervalued security!
o
Do you guys follow (http://Themaxgains.tech)? It seems way better than all the spam on the DDOG board - The alerts have been great!
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$DDOG $AMD What do people think of the seeking alpha podcast that suggested these two stocks will be the next FAANG stocks? It's on YouTube. Pretty good presentation.
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probably going back to 2019 valuation at best....
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28% Free Cash Flow Margin. Why won't the market stop treating this like a punching bag? Massive growth trajectory and massive free cash TODAY NOT TOMORROW.
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As a person in the IT space I see many companies cutting their cloud monitoring expenses or switching to cheaper solutions like new relic. the recession fears will be very painful to datadog.