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      Datadog (DDOG) Stock Tumbled Following An Analyst Review

      By Fahim Awan

      Published on

      October 10, 2023

      7:59 AM UTC

      Last Updated on

      October 12, 2023

      5:28 AM UTC

      Datadog (DDOG) Stock Tumbled Following An Analyst Review

      On Monday, Datadog Inc. (NASDAQ: DDOG) experienced a notable decline of 3.92%, ultimately concluding the trading session at a closing price of $90.73. This downward trajectory in Datadog’s stock value was primarily instigated by a revision in evaluation by Koji Ikeda, an analyst at Bank of America.

      Ikeda, representing BoA’s analytical perspective, has expressed reservations regarding the consensus among Wall Street analysts pertaining to Datadog’s anticipated revenue growth for the year 2024. While market analysts collectively project a robust 23% revenue expansion, expected to reach $2.53 billion in 2024 for Datadog, Ikeda holds a more conservative estimate.

      He anticipates a revenue figure of $2.4 billion for 2024, indicating a 5% reduction from the prevailing consensus. Furthermore, Ikeda’s projections for 2025 envision a revenue benchmark of $2.9 billion, reflecting his calculated assessment of the company’s financial outlook.

      In its annual State of Serverless report, Datadog (DDOG) has discerned an enduring trend of growth and evolution within the serverless ecosystem. This evolution is particularly pronounced as organizations increasingly integrate container-based applications into serverless environments. Notably, over 70% of Datadog’s AWS customers, 60% of Google Cloud users, and almost 50% of Azure clients have adopted serverless solutions.

      This widespread adoption extends across major cloud platforms and is expected to continue as organizations further embrace container-based frameworks, which are driving serverless ecosystem growth. Serverless technology is becoming versatile, capable of addressing a wider range of use cases.

      Moreover, Datadog’s recent launch of “Bits,” a generative AI assistant, aims to revolutionize real-time issue resolution for engineers. Bits AI extracts insights from observability data, collaboration platforms, and various sources to swiftly provide answers, recommendations, and automated remediation steps in conversational language. This significantly streamlines complex problem-solving that typically demands hours or days.

      Built with OpenAI’s technology, Bits AI offers engineers a potent tool to tackle intricate performance challenges. This innovation underscores Datadog’s commitment to enhancing observability and fostering efficient, AI-driven solutions in the evolving landscape of serverless technologies.

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