Unlike many other tech companies, Datadog's (NASDAQ: DDOG) stock hasn't seen a considerable rise from the start of 2023, as it's up only around 5%. This might leave investors wondering if the stock is due for a quick rise to catch up to its software-as-a-service (SaaS) peers.
Is Datadog primed for a greater upside? Or is there something else going on that's inhibiting its stock price? Let's find out.
Datadog's software helps IT teams monitor how their systems are working. Business systems are becoming more complex as data drives every decision. For example, there might be five data sources that flow into a data center to be stored, then that info is utilized by a data analytics program; after that, different end users like engineering, the sales team, or executives harness the results to drive decisions. If something goes wrong in that chain, it's hard to determine where the fault is without hours of troubleshooting.
Source Fool.com