Don't Be Fooled By Its Valuation: This Stock Could Be a Top Dog in 2023
The technology-heavy Nasdaq Composite Index got off to a hot start this year. However, even equities are not immune to Newton's "what goes up, must come down" law of physics. While several companies in the software industry have beaten guidance and surprised investors during this earnings season, a common denominator for them has been that their near-term outlooks remain underwhelming. As a result, tech stocks in particular have fallen in the wake of January's fleeting surges, and valuations are beginning to normalize.
Investors could argue that some of these companies have entered oversold territory, and that they may represent compelling long-term buys at their current valuations. One such company is the analytics platform Datadog (NASDAQ: DDOG).
Datadog's platform is interesting because it operates at the intersection of several growing end markets, among them cloud computing, data monitoring, and other information technology operations. While big tech companies like Amazon, Microsoft, and Alphabet all have strong presences in these markets, Datadog has been able to separate itself and compete with these behemoths.
Source Fool.com
