Datadog Stock Crosses Over Key Trendline Before Earnings

Datadog Inc (NASDAQ:DDOG) stock is 2% higher to trade at $143.30 this afternoon, earlier surging to its highest level since December. The equity has already tacked on 5.6% in 2025, and sports a even more impressive 36.4% year-over-year lead. The cloud name will announce first-quarter earnings before the market open on Thursday, May 7, and is flashing a historically bullish signal ahead of the event. 

More specifically, DDOG is crossing over its 80-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White, this has happened six times over the past 10 years, after which the equity was higher one month later 83% of the time to average an 17.5% pop. From its current perch, a move higher of this magnitude would put the shares just shy of $170 for the first time since November.

The security has a mostly upbeat history of post-earnings reactions, finishing higher after five of its last eight reports, including a 23.1% pop in November followed by a 13.7% win in February. The shares have averaged an 8% next-day move over the last eight reads, regardless of direction, but this time the options pits are pricing in a much larger 18% swing.

Options traders are chiming in ahead of earnings, with 10,000 puts traded so far today, which is double the amount typically seen at this point. The most active contract is the January 15, 2027 125-strike put, where new positions are currently being sold to open.

It's also worth noting the stock's Schaeffer's Volatility Scorecard (SVS) comes in at 93 out of 100. This means DDOG has consistently realized higher volatility than its options have priced in over the past 12 months.