On Monday, Datadog (NASDAQ:DDOG) stock rose 3% in after-hours trading. The company released its first-quarter earnings results after the market closed. Datadog stock rose after the company beat the top and bottom-line estimates in the first quarter.
In the first-quarter press release, Datadog CEO Olivier Pomel said, “In response to the COVID-19 pandemic, we are focused on ensuring the safety of our employees, continuing to best serve our customers, and investing in our platform. This crisis has demonstrated the need to be digital-first and agile, has underscored the importance of observability into cloud environments, and reaffirmed the long-term opportunity for Datadog.”
First-quarter earnings results
Datadog generated revenue of $131.2 million—an increase of 87.4% from the first quarter of 2019. The company beat analysts’ consensus revenue expectation of $117.6 million. In the first quarter, Datadog reported an adjusted EPS of $0.06 compared to -$0.09 in the first quarter of 2019. The earnings beat analysts’ consensus estimate of -$0.02 per share.
In the second quarter, Datadog expects sales between $134 million and $136 million. For fiscal 2020, the company expects sales between $555 million and $565 million.
Wall Street analysts expect Datadog to report an EPS of -$0.02 on revenue of $131.68 million in the second quarter. Currently, analysts expect a 52.4% and 34.9% rise in the company’s 2020 and 2021 sales, respectively. Analysts also expect an EPS of -$0.06 and -$0.03 in 2020 and 2021, respectively.
What are analysts saying about Datadog stock?
Datadog is covered by 16 Wall Street analysts. Among the analysts, eight recommend a “buy” and eight recommend a “hold.” None of the analysts recommend a “sell.” Analysts’ mean target price on the stock is $61.18, which implies a 10% gain from the current level of $55.69. The consensus target price for the stock has risen from $48.60 in April—a rise of 26%.
Many analysts changed their target price for Datadog stock after its first-quarter financial results.
- Stifel increased its target price from $50 to $60.
- Mizuho increased its target price from $46 to $66.
- D.A. Davidson increased its target price from $38 to $52.
- Needham increased its target price from $58 to $70.
- Jefferies increased its target price from $39 to $59.
- RBC increased its target price from $50 to $55.
- Credit Suisse increased its target price from $45 to $55.
- J.P. Morgan increased its target price from $60 to $65.
- Barclays increased its target price from $42 to $70.
Datadog stock rose 7.7% on Monday and ended the day at $55.69. At this closing price, Datadog’s market cap is $16.6 billion. The stock is trading 2.6% below its 52-week high of $57.18 and 102.1% above its 52-week low of $27.55.
Based on Datadog’s closing price on Monday, the stock was trading 26.8% above its 20-day moving average of $43.93. Datadog is trading 41.1% above its 50-day moving average of $39.47 and 35.9% above its 100-day moving average of $40.98. The stock’s 14-day relative strength index score of 87 indicates that the stock is overbought.
Datadog’s lower, middle, and upper Bollinger Bands are $35.07, $43.93, and $52.78, respectively. The stock closed near its upper Bollinger Band level, which indicates that it’s overbought.
Datadog stock rose 9.5% in pre-market today at 7:51 AM ET. The S&P 500 futures rose 0.3%, while the Dow futures rose 0.4%. Read US Stock Markets: What Are Bears Up Against? to learn more.