Datadog Shares Climb 2.19% as AI-Driven Revenue Surpasses Estimates, Ranks 172nd in Trading Volume

On August 15, 2025, Datadog (DDOG) rose 2.19% with a trading volume of $580 million, a 28.12% decline from the previous day’s volume. The stock ranked 172nd in trading activity among equities. Recent results highlighted Datadog’s AI-driven growth, with second-quarter revenue rising 28% year-over-year to $827 million, surpassing Wall Street estimates. The company raised its full-year guidance, driven by strong adoption of AI-native tools and expanded customer spending.

Management reported that over 4,500 customers now use Datadog’s AI-powered solutions, contributing 11% of total revenue—up from 4% in the prior year. New product launches, including autonomous AI agents and security assistants, accelerated cross-selling opportunities. The customer base grew 9% year-over-year, and dollar-based net retention climbed to 120%, reflecting increased spending by existing clients. Remaining performance obligations (RPO) surged 35% to $2.4 billion, outpacing revenue growth and signaling robust future demand.

Despite a 37% rise in operating expenses due to R&D and marketing investments, Datadog’s management emphasized long-term benefits from AI innovation. While earnings per share are expected to remain flat in 2025, analysts anticipate stronger growth as AI adoption scales. The stock trades at 76 times forward earnings, reflecting high valuation but also potential for outperforming estimates amid sustained demand for cloud-based AI solutions.

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