Datadog's $901 Million Trading Day Ranks 92nd Amid Uncertain Future

On July 14, 2025, Datadog (DDOG) closed with a trading volume of $901 million, ranking 92nd in the day's market activity. The stock price increased by 1.04%.

Datadog's upcoming earnings report on August 7, 2025, is shrouded in uncertainty. Despite a strong Q1 2025 performance with 25% revenue growth to $762 million, the stock's post-earnings volatility and slowing growth projections raise concerns about its long-term sustainability. The company's reliance on key customers like OpenAI, coupled with signs of in-house development by that critical client, poses a significant threat to Datadog's future trajectory.

Datadog's stock trades at a forward P/E of 300, reflecting high expectations for sustained growth. However, the company's 2025 revenue guidance of $3.175–3.195 billion implies a slowdown to just 18–19% growth, down from 26% in 2024. Additionally, non-GAAP EPS is projected to fall to $1.67–1.71, a sharp drop from 2024's $1.82. This slowdown is not merely cyclical; a key vulnerability lies in its reliance on OpenAI, its largest client. If OpenAI migrates away from Datadog's tools, it could slash Datadog's revenue by $150 million by 2026, significantly impacting its growth rate.

OpenAI's pivot to in-house infrastructure reflects a broader trend among AI-native firms prioritizing control over their technical stacks. This shift reduces reliance on third-party vendors like Datadog, posing immediate revenue pressure and structural challenges. As AI firms scale, they may replicate Datadog's core offerings, eroding the company's differentiation. Analysts question whether smaller customers can offset this loss, especially as businesses tighten cloud budgets. Even if Q2 2025 results meet expectations, the market's focus will shift to guidance for 2026.