Stocks to Watch: Datadog and The Trade Desk at Bargain Prices

Stocks to Watch: Investors find opportunities in Datadog and The Trade Desk due to recent price drops. Analysts see potential upside with current market conditions. With Datadog's strong revenue growth and The Trade Desk's strategic positioning, these stocks may become attractive buys.

Date: 15-02-2025

AI Rating: 6

Overview of Key Metrics
In the provided report, Datadog and The Trade Desk present important investment information through various key metrics. Key highlights include:

Datadog: Revenue growth of 25% to $738 million demonstrating strong performance. Non-GAAP net income increased 11% to $0.49 per share, showing profitability even amidst guidance concerns.
The Trade Desk: Revenue also increased 22% to $741 million, with a strong increase in non-GAAP net income rising 44% to $0.59 per share. However, the revenue fell short of guidance.

Earnings Per Share (EPS)
Datadog reported EPS of $0.49, a positive sign for earnings. Also, The Trade Desk's EPS rose to $0.59, reflecting its operational efficiency.

Revenue Growth
Both companies showcased substantial revenue growth. Datadog's revenue grew by 25%, while The Trade Desk experienced a growth of 22%. This growth reflects a healthy demand for their offerings.

Net Income
Datadog's non-GAAP net income saw an increase of 11%, and The Trade Desk’s net income surged by 44%, which are all positive indicators of their respective financial health.

Profit Margins
With the reported income increases, both Datadog and The Trade Desk appear to maintain good profitability despite market challenges.

Guidance Concerns
Notably, Datadog's guidance for 2025 disappointed investors; expected revenue growth of only 19% to $3.2 billion alongside a 6% drop in adjusted earnings could raise caution among investors.

Investment Outlook
Despite recent price declines, analysts are optimistic about buying opportunities in these stocks, especially considering their projected growth in AI and advertising technologies.

Stocks: DDOG TTD