Forget New Relic, Datadog Is a Better Silo-Busting Growth Stock

Datadog's (NASDAQ: DDOG) stock recently dropped after the data visualization company posted its third-quarter earnings. Its revenue rose 61% year over year to $155 million, beating estimates by $10 million. Its adjusted net income surged from $783,000 to $16 million, or $0.05 per share, which also beat estimates by a nickel.

Datadog expects its revenue to rise 62%-63% for the full year, compared to expectations for 57% growth, with adjusted earnings of $0.17-$0.18 per share -- which was well above the consensus forecast of $0.12 per share.

Those numbers were impressive, but investors seemed concerned about two things: The company's revenue growth had gradually decelerated from its 83% growth rate in 2019, and the stock looked frothy at 44 times this year's sales.

Source Fool.com