Macro, consumer headwinds loom ahead of Datadog Q3 earnings
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Datadog (NASDAQ:DDOG) is scheduled to announce Q3 earnings results on Thursday, November 3rd, before market open.
The cloud computing company had a strong Q2 but issued a tepid outlook for the third-quarter and called out softer trends in some areas, including consumer discretionary.
In the immediate wake investment firm Monness, Crespi, Hardt warned the "cautious" guidance may be just the start of things to come and downgraded the stock.
More recently, however, Canaccord Genuity raised its rating on the networking security company following new investments in its technology platform.
Many of the new solutions within its unified tech platform are still in beta-test phase and not yet available, and management has noted there may be headwinds in the market.
Still, Wells Fargo analyst Andrew Nowinski gave high marks to the company with a new overweight rating, calling it "a unicorn in software" set to benefit from factors such as a growing total addressable market and pricing and product advantages over its competitors.
Credit Suisse too highlighted Datadog (DDOG) as a "Top Idea" for its monitoring and security products, and its efforts to expand into new areas such as application and cloud security.
Over the last 3 months, EPS estimates have seen 10 upward revisions and 5 downward. Revenue estimates have seen 12 upward revisions and 5 downward.
The consensus EPS Estimate is $0.16 (+23.1% Y/Y) and the consensus Revenue Estimate is $414.32M (+53.2% Y/Y).
Still, DataDog (DDOG) and its peer stocks have plummeted amid broader economic headwinds such as rising inflation and interest rates.

Over the last 2 years, DDOG has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.