Why Datadog Plunged Over 15% This Week
Shares of (NASDAQ: DDOG) fell 15.6% this week through Thursday trading, according to data from S&P Global Market Intelligence. The cloud observability leader, which makes products to secure and monitor the health of cloud-based software applications for enterprises large and small, fell sharply when management reduced its outlook for the year.
But is this sell-off based on the next few quarters' growth outlook reason to sell the stock? Or pick up some discounted shares?
In the second quarter, Datadog reported revenue of $509 million, up 25.3% from the prior year, and adjusted (non-GAAP) earnings per share of $0.36. Both figures beat expectations, but the stock fell some 20% as management also lowered full-year guidance in conjunction with second-quarter results. Management now sees full-year revenue between $2.05 billion and $2.06 billion, relative to its prior guidance of $2.08 billion and the analyst consensus of 2.09 billion.
Source Fool.com
