Like Datadog, Dynatrace is also branching out into other areas of monitoring, including infrastructure monitoring (Datadog’s strength) and log management (Splunk’s strength). The company is best known for strength in application performance monitoring (APM), an area where a new state-of-the-art platform better meets customer needs across on-premise, private cloud, and public cloud solutions. The long-term trajectory and outlook for this stock remains very much up.ĭynatrace, which has a market cap of $11 billion, plays in the same general market as Datadog but comes at it from a different angle. The valuation is sky-high, but that hasn’t slowed DDOG down much in the past. Looking forward, analysts expect Datadog to grow revenues by another 62.5% this year, with earnings per share expected to nearly double. Since that bottom, shares have traded 33% higher.Ī good portion of that rally was fueled by both current and anticipated demand for monitoring solutions due to the work-from-home (WFH) movement and other factors driving users to cloud-based environments. Shares ran as high as 190 before topping with most growth stocks in November and retreating down to the low 80s in June. The company went public at 27 in September 2019, got off to a strong start and worked its way to 50 just prior to the pandemic. ![]() That said, Datadog is likely the best positioned to grab customers who want one vendor to cover their needs across all three monitoring markets. It hasn’t been as strong in the latter two markets, where Dynatrace, which I’ll discuss in a minute, and Splunk (SPLK) are the respective leaders. These include infrastructure monitoring (where it is the leader), application program monitoring (APM), and logging. Why?ĭatadog has what’s arguably the best platform across the three core markets in monitoring. The company’s supernormal growth rate – revenue was up 70% in 2021 – reflects that Datadog is signing customers left and right. It’s particularly strong in public cloud monitoring and is rapidly expanding into the private cloud and on-premise environments as well. Let’s take a look at these two cloud computing stocks and see which one looks better right now.ĭatadog, with a market cap of $34 billion, is one of the leaders in the cloud infrastructure monitoring market. Two of the emerging players are Datadog (DDOG) and Dynatrace (DT). ![]() The rise of cloud computing has led to a surge in demand for cloud infrastructure monitoring to make sure all is working as it should. If a core solution goes down for even a short spell that could mean disaster-or at the very least, very angry customers. As cloud infrastructure from Microsoft, Amazon and Google becomes the backbone of so many computing environments the margin for error on hosted applications has become razor thin.
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