Why Is Datadog (DDOG) Up 12.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Datadog (DDOG). Shares have added about 12.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Datadog due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted -20.31% due to these changes.

VGM Scores

At this time, Datadog has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Datadog has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Datadog belongs to the Zacks Internet - Software industry. Another stock from the same industry, Meta Platforms (META), has gained 15.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2025.

Meta Platforms reported revenues of $42.31 billion in the last reported quarter, representing a year-over-year change of +16.1%. EPS of $6.43 for the same period compares with $4.71 a year ago.

Meta Platforms is expected to post earnings of $5.83 per share for the current quarter, representing a year-over-year change of +13%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

Meta Platforms has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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