Datadog Inc. shares were roaring 28% higher in morning action Tuesday after the software company, which makes tools for monitoring infrastructure and application performance, showed upside with its latest quarterly results and delivered a better-than-expected forecast. The stock was on track for its largest single-day percentage gain on record, which would require besting the 23.7% increase it saw on May 12, 2020.
Datadog’s
DDOG,
+29.59%
third-quarter revenue came in at $547.5 million, up from $436.5 million a year before and ahead of the $524.7 million that analysts tracked by FactSet were projecting. The top-line performance also met the elevated expectations that followed Amazon.com Inc.’s
AMZN,
+2.04%
latest report, according to Bernstein analyst Peter Weed. Don’t miss: Why Amazon skeptics may be looking at ‘crown jewel’ AWS business all wrong “Into the print there was a lot of anxiety about whether Datadog would follow AWS to improving [sequential] growth and stable [year-over-year growth], or demonstrate a worried disconnect and continue to decelerate on a [year-over-year] basis,” Weed wrote. “Datadog emphatically dispelled these worries, with a spot on print of $547.5 [million in] revenue, right in line with expectations implied by the AWS print.” Read: Amazon just taught Wall Street a new word — and it’s a good one for the bulls Datadog posted “an expanding beat” relative to its guidance for the first time since macroeconomic issues surfaced, and the largest beat sinc …
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