Should I buy Datadog stock in 2025?

What is Datadog?

How much is the Datadog stock?

The price of Datadog stock is rising this week. As of now, Datadog (DDOG) trades at $117.00, up $0.70 or 0.60% over 24 hours, with a robust weekly gain of 14.36%. The company’s market capitalization stands at $40.41 billion, and its average 3-month trading volume is 4.92 million shares. Datadog has a P/E ratio of 248.94, does not pay a dividend (yield 0%), and carries a stock beta of 1.12, indicating moderate volatility. With recent strong upward momentum, investors in Ireland should note both DDOG’s growth potential and sensitivity to tech sector swings.

Our full analysis of the Datadog stock

After a rigorous review of Datadog's most recent quarterly results and a deep dive into the stock’s trajectory over the past three years, our proprietary models—incorporating financial metrics, technical analysis, market positioning and peer benchmarking—converge on a notably constructive outlook. Datadog consistently demonstrates structural resilience and an innovation-centric business model, setting itself apart in the broader cloud-based observability and application security sector. So, why might Datadog stock once again be considered a strategic entry point to this transformative segment of technology in 2025?

Recent Performance and Market Context

Datadog (NASDAQ: DDOG) has captured market attention in spring 2025 with notable near-term momentum. As of 30 May 2025, the stock trades at $117.00, up 2.91% over the past day and impressively 14.36% in just the last week. Although shares remain down 23.40% over six months—a reflection of sector-wide recalibrations that affected most high-multiple software names—Datadog has outpaced the broader technology sector in recent weeks, suggesting renewed investor confidence.

This resurgence coincides with several positive catalysts:

• Q1 2025 earnings report strongly beat analyst expectations, with revenue growing 25% year-on-year to $762 million and EPS of $0.46 exceeding forecast by $0.04.
• Continued recognition as a leading innovator—notably maintaining its Leader position in the 2024 Gartner Magic Quadrant for Observability Platforms.
• Strategic advances in artificial intelligence (AI) and US government cloud security—including the May 2025 launch of a new open-weights AI model and securing FedRAMP High "In Process" certification for Datadog for Government.

The macroeconomic backdrop remains supportive for robust, cloud-native players like Datadog. Digital transformation spending continues to show resilience—particularly in enterprise IT budgets prioritising observability, monitoring, and security. As enterprises increasingly embrace hybrid and cloud-native architectures, platforms delivering unified security, visibility and advanced analytics find themselves at the centre of structural demand.

Technical Analysis

From a technical standpoint, Datadog's price action points to a favourable setup for buyers:

• Relative Strength Index (RSI) at 62.59 suggests mild momentum, while not signalling overbought conditions.
• MACD holds firmly in buy territory (+3.81), reflecting positive inertia; the short-term moving averages (MA 5, MA 20, MA 50, and MA 100) all indicate upward trends.
• Key support at $115.33 and resistance at $117.99 situate the current trading level near a technical pivot—implying that a decisive break higher could catalyse further upside.
• The 200-day moving average at $122.94 remains a medium-term target; a sustained move above this level would likely embolden longer-term momentum investors.

Additionally, the wider technical consensus is notably bullish, with 13 buy signals, 5 neutral, and only 4 sell indications, and a “strong buy” bias from the moving averages scores. This reinforces a sense that the market’s structure is resetting for a more substantial upswing after a period of consolidation.

Fundamental Analysis

Datadog’s investment case is anchored in a compelling combination of rapid growth, strong profitability, and continuous innovation.

Revenue and Profitability

• Q1 2025 revenue rose 25% year-on-year, outpacing most SaaS peers and well above consensus projections.
• Operating leverage is evidenced by a robust free cash flow margin of 32%, translating to $244 million in Q1 free cash flow. This supports Datadog’s ability to invest aggressively in R&D while maintaining healthy margins.
• The company’s guidance for 2025 targets $3.175-3.195 billion in annual revenues—implying a path to sustained double-digit growth.

Valuation

While Datadog’s TTM P/E ratio of 248.94 and Price/Sales of 14.88 signify a premium valuation, these multiples are typical for category-leading SaaS companies positioned for secular, not cyclical, growth. Investors appear willing to pay for quality, defensibility, and category leadership—particularly as Datadog’s innovation pipeline finds new monetisation opportunities.

Competitive Positioning and Structural Strengths

• Industry leadership as recognised by Gartner’s Magic Quadrant for Observability Platforms.
• A highly sticky, expanding base of large enterprise clients (approx. 3,770 customers generate $100,000+ in ARR), underpinning high retention and net expansion rates.
• Datadog’s integrated platform approach—unifying observability, security and monitoring—has become a standard through which large organisations navigate the complexity of cloud-native environments.
• Substantial cash reserves ($4.45 billion) and prudent capital structure minimise execution risk, even in turbulent markets.

Volume and Liquidity

Datadog exhibits ample liquidity—average 3-month daily trading volume stands at 4.92 million shares, ensuring tight spreads, robust price discovery and high institutional participation.

• Market capitalisation of $40.406 billion places DDOG among the leading, investible global software equities.
• The freely tradable float creates a dynamic environment for valuation optimisation and allows for considerable capital flows without undue volatility.

The sustained volume levels, even through periods of market uncertainty, signal enduring market confidence and make the stock suitable for institutional and retail investors alike who seek both growth and liquidity.

Catalysts and Positive Outlook

Datadog’s forward story is marked by clear, tangible growth drivers:

• AI expansion: The May 2025 launch of an open-weights model in Datadog AI Research significantly strengthens its credentials in the rapidly growing AI observability segment. As AI workloads proliferate, tools that offer seamless, transparent monitoring and security are becoming non-negotiable for enterprises.
• Government market opportunity: Securing FedRAMP High ‘In Process’ status opens up a sizeable, highly regulated market, tapping into digital transformation within public sector IT.
• Product innovation: Datadog’s ongoing R&D investments underpin an integrated platform spanning observability, security, and cost optimisation. This ecosystem effect increases customer lock-in and cross-sell opportunities.
• Sector trends: With continued enterprise migration to the cloud and the mainstreaming of AI, the addressable market is expanding at a pace that fundamentally supports elevated growth forecasts.
• ESG credentials: Datadog’s emphasis on platform security and responsible AI strengthens its appeal to enterprise buyers and global asset managers with growing ESG mandates.

Investment Strategies

Given these strengths, Datadog presents a multi-horizon investment opportunity:

• Short-term entry: Technical structure around $115-$118 provides an attractive base for traders seeking a rebound following sector-wide correction and with catalysts like product launches or further earnings surprises on the near-term horizon.
• Medium-term positioning: With a strong consensus analyst target ($135.55) and calculated upside towards $152.10 (+30%), medium-term investors can leverage both the fundamental and technical tailwinds as the company closes the valuation gap versus peers.
• Long-term horizon: Datadog’s dominant brand, sticky enterprise relationships, and aggressive innovation engine provide a foundation for compounding growth. As cloud adoption and AI workloads expand, the company is structurally well-positioned to remain at the forefront for years to come.

A phased accumulation—initiating at technical support and adding on confirmation of bullish breakouts or as new catalysts emerge—may suit active investors aiming to benefit from volatility and capital appreciation.

Is It the Right Time to Buy Datadog?

Datadog’s unique blend of robust top-line growth, sector-defining product innovation, substantial free cash flow, and unambiguous leadership in observability and security platforms positions it as a standout in the technology universe. The stock’s pullback from all-time highs and subsequent show of resilience—backed by improving technical momentum and widespread analyst support—seems to represent an excellent opportunity for new and existing investors alike.

The fundamental drivers—expansion into AI, government markets, and integration across observability and security—augur well for Datadog’s continued outperformance. With strong cash reserves, over 3,700 enterprise-scale customers, and a management team recognised for execution, the business appears well-equipped to navigate any macro turbulence while capitalising on long-term secular tailwinds.

While elevated multiples warrant risk management, Datadog’s fundamentals justify renewed interest, and the convergence of technical, macro and fundamental factors could mark the beginning of a compelling new bullish phase in 2025. For investors seeking exposure to transformational technology themes, Datadog may well be entering an ideal window for strategic positioning—offering both growth potential and the liquidity for dynamic portfolio management.

Ultimately, Datadog stands as a best-in-class cloud software name with a forward-looking story and multiple drivers of outperformance; the current market context may be giving investors a rare opportunity to consider building exposure at favourable levels.

How to buy Datadog stock in Ireland?

Buying Datadog stock online has never been simpler or more secure for investors in Ireland. Through regulated brokers, you can easily access Datadog shares in just a few steps, whether you are new to investing or experienced. The two main ways to invest are by purchasing shares outright (spot buying) or trading Contracts for Difference (CFDs), each with its own advantages. Both methods are available through trusted online platforms regulated by European authorities, offering strong protection to retail investors. To help you pick the right broker for your needs, we provide a comprehensive comparison further down the page.

Spot Buying

Spot (cash) buying means purchasing actual Datadog shares, making you a direct shareholder. This is straightforward: you own the shares in your brokerage account, benefit from any price appreciation, and can hold your investment for as long as you wish. When buying US-listed stocks like Datadog (NASDAQ: DDOG) from Ireland, online brokers typically charge a fixed commission per trade, usually between €4 and €8 (or about $5).

Example

The latest Datadog share price is $117.00. If you invest $1,000 (about €920), you can buy approximately 8 shares after accounting for a standard $5 commission ($995/$117 ≈ 8.5, rounded down to 8 shares).

Gain scenario:
If the share price rises by 10% to $128.70, your 8 shares are now worth $1,029.60.
Result: That’s a gross gain of about $100 (+10%) on your investment, aside from minor currency and transaction costs.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Datadog’s share price movements without owning the underlying stock. This method suits investors seeking flexibility, the ability to go long or short, and the potential to use leverage. Brokerages charge a spread (the difference between buy and sell price) and usually an overnight financing fee when a leveraged position is held open beyond market hours.

Example

You decide to trade CFDs on Datadog, using $1,000 of your capital with 5x leverage. This means you gain market exposure worth $5,000.

Gain scenario:
If Datadog’s share price rises by 8%, your position increases by 8% × 5 = 40%.
Result: You achieve a $400 gain on a $1,000 stake (before any spread or funding costs).

Final Advice

Before you invest in Datadog, it’s essential to compare brokers’ fees, trading platforms, and investor protections, as these can strongly affect your returns. Whether you prefer direct ownership of shares or the flexibility of leveraged CFD trading, the best choice depends on your investment goals and experience. For a detailed overview of the top regulated brokers available to Irish investors, see our comparison further down the page.

Our 7 tips for buying Datadog stock

The latest news about Datadog

Datadog stock surged more than 14% over the past week, outperforming key industry benchmarks. This positive momentum follows the company’s quarterly earnings release that not only exceeded revenue and earnings estimates but also demonstrated robust client growth, especially among large enterprise customers. The standout performance, with first quarter revenue at $762 million (+25% year-on-year) and net income surpassing consensus by $20.6 million, reinforces investor confidence and is likely to be particularly well received by institutional investors in Ireland, where technology and cloud transformation adoption remain prominent themes in capital allocation.

The company has strengthened its credentials in the public sector, with Datadog for Government achieving FedRAMP® High 'In Process' status as of May 21, 2025. This development significantly expands Datadog’s addressable market in regulated industries, with potential downstream benefits for EMEA clients, including Irish government-related IT integrators and service providers, who place high importance on certified observability and security platforms for compliance with EU and local data protection standards.

Datadog’s research division made headlines with the launch of a new open-weights AI model, supporting its innovation narrative. Announced in late May 2025, this initiative has triggered interest among the European cloud-native community, with Irish enterprises—especially those in the financial and technology sectors—expected to benefit from easier AI integration into their infrastructure monitoring. The move also signals Datadog’s commitment to keeping its product stack at the technological forefront, appealing to Ireland’s highly developed SaaS and digital-native business ecosystem.

Recent recognition as a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms underscores Datadog’s strong competitive position. Such international accolades are highly regarded by large Irish corporates, many of which are currently accelerating investments in cloud efficiency and resilience. Datadog’s leadership in unified observability, security, and monitoring resonates with the priorities of Irish enterprises and managed service providers that rank among Europe’s most advanced cloud users.

Analyst consensus remains overwhelmingly positive, with a median 12-month target price of $135.55 and no “Sell” recommendations across 33 tracked experts. Contributing to upbeat sentiment, technical signals as of end-May 2025 are mostly bullish, with strong “Buy” signals from moving averages and a continuing inflow of large account clients. The expectation of persistent double-digit revenue growth and Europe-focused expansion in AI/ML monitoring further sharpen Datadog’s profile for Irish investors seeking exposure to quality US-listed tech growth stories.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.