Should You Buy Datadog Stock in 2025? New Zealand Investor Guide

What is Datadog?

How much is the Datadog stock?

The price of Datadog stock is rising this week. As of now, DDOG is trading at $117.00 USD, marking a 0.60% increase over the past 24 hours and a 2.91% gain for the week. Datadog’s market capitalisation sits at $40.41 billion USD, with an average 3-month daily trading volume of approximately 4.92 million shares. The stock currently has a high price-to-earnings (P/E) ratio of 248.94, no dividend yield, and a beta of 1.12, which reflects moderate volatility. Given these figures, Datadog may appeal to NZ investors seeking exposure to global growth tech stocks, keeping in mind its dynamic price movements and lofty valuation.

Our full analysis on Datadog stock

After a comprehensive review of Datadog’s most recent financial results and a close analysis of its stock performance over the past three years, our proprietary models—integrating fundamental, technical, and competitive landscape data—provide a decisive, bullish perspective. The confluence of robust growth metrics, resilient sector tailwinds, and technical signals converges to suggest Datadog is re-emerging as a high-potential play within cloud observability and application analytics. So, why might Datadog stock once again become a strategic entry point into the global technology sector in 2025?

Recent Performance and Market Context

Datadog (NASDAQ: DDOG) currently trades at $117.00 USD, with an intraday uplift of +0.60% and a weekly advance of +2.91%. While the past six months have witnessed a marked correction of -23.4%, largely in line with volatility across US growth equities, the 12-month movement has narrowed to a mild -3.85%, highlighting the stock’s underlying resilience amid sector-wide uncertainty.

The past quarter has seen a resurgence in risk appetite for quality SaaS innovators, underpinned by supportive macro signals: continued cloud adoption among enterprises, renewed investment flows into artificial intelligence, and expectations of stabilising US interest rates in late 2025. Within this context, Datadog’s earnings outperformance and upwardly revised guidance signal an inflection point, with investor sentiment further buoyed by two high-impact acquisitions—Metaplane (AI-driven data observability) and Eppo (experimentation platforms)—strategically announced in Q2 2025.

Datadog’s sector backdrop remains compelling for NZ investors seeking US-listed growth. The accelerating cloud migration, sustained demand from Fortune 500s, and continued software investment cycles globally (including Asia-Pacific expansion) create a fertile ground for leadership stocks to outperform.

Technical Analysis

From a technical standpoint, Datadog demonstrates a favourable setup, hinting at renewed upward momentum. Key technical indicators as at 30 May 2025 include:

• Relative Strength Index (RSI, 14 days): 61.56—positioned in a neutral zone, allowing scope for further upside before reaching overbought territory.
• MACD (12,26): +3.91, currently flashing a contrarian ‘sell’ signal, yet this is superseded by strength across short-term moving averages.
• Williams %R: -23.57, which signals active buying interest.

Crucially, the 20-day and 50-day moving averages ($112.17 and $103.67 respectively) have both turned positive, suggesting technical support and buyer engagement at current levels. While longer-term averages (100-day and 200-day) still trace above the share price, a decisive move through the $118.24 near-term resistance could open a technical pathway toward the next major level at $170.

Current strong support is visible at $115.62, with a major floor at the 52-week low of $81.63. This technical foundation points to limited short-term downside and a constructive backdrop for new positioning, especially for NZ investors seeking exposure ahead of a possible bullish reversal.

Fundamental Analysis

Datadog’s fundamentals continue to impress. Q1 2025 revenues reached $762 million, up 25% YoY—outpacing both sector averages and consensus expectations. This growth was achieved alongside robust margin discipline: adjusted EPS for the quarter printed at $0.46, ahead of the anticipated $0.43. The platform also grew its large enterprise client base (those with $100k+ ARR) to ~3,770, widening its addressable market and enhancing ARR visibility.

Notably, the company has revised its 2025 revenue guidance upward to $3.22–3.24 billion, reiterating a projected annual growth cadence of 20–25%. Despite a headline P/E ratio of 248.94, such a premium is commonplace for sector leaders with entrenched SaaS models, consistent revenue retention, and market-defining innovation. The consensus target price stands at $142.67—representing 22% upside—while 33 analysts maintain a ‘Buy’ classification.

• Technological leadership as a unified observability platform, spanning infrastructure, application, and security monitoring, with elevated relevance amid the global shift to hybrid and multi-cloud architectures.
• Brand equity and client retention rooted in its ‘land-and-expand’ strategy—driving SaaS revenue stickiness.
• Relentless innovation via continuous R&D and bolt-on acquisitions, ensuring differentiated AI/ML capabilities.

With a market cap of $40.41 billion and zero dividend payout (all cash reinvested for growth), Datadog continues to prioritise expansion over income distribution—a strategic advantage for NZ long-term growth-focused portfolios.

Volume and Liquidity

Datadog’s average daily trading volume of 4.92 million shares assures deep market liquidity, essential for both institutional and retail NZ investors seeking efficient entry and exit points in US markets. This level of sustained activity signals strong investor engagement and underwrites the stock’s dynamic valuation.

The current float structure, absent any large insider block sales or pending secondary offerings, further supports price discovery and minimises technical overhangs. These are favourable conditions for participants aiming to build positions at technical inflection points.

Catalysts and Positive Outlook

Key positive catalysts for Datadog over the coming quarters include:

• Product Expansion & Innovation: Recent launches of new AI models, automated benchmarking tools, and advances in full-stack observability enhance Datadog’s breadth and reinforce its status as a ‘go-to’ platform for DevOps, Security, and Executive IT teams.
• Strategic Acquisitions: The integration of Eppo (feature flagging and experimentation) and Metaplane (AI-powered data observability) accelerate Datadog’s roadmap in machine learning and real-time analytics, unlocking incremental cross-sell opportunities across its 3,700+ enterprise clients.
• Public Sector Penetration: Achieving FedRAMP High “In Process” status brings Datadog closer to unlocking substantial US federal government workloads—a potential multi-year growth driver with high barriers to entry.
• Tailwinds from Cloud and AI Investment: With enterprise software budgets prioritising cloud migration and operational intelligence, Datadog stands at the epicentre of the next technology investment cycle. Ongoing regulatory clarity around data and AI in major geographies may further accelerate adoption.
• ESG and Corporate Resilience: Datadog’s commitment to international expansion and innovation, combined with sound governance under CEO and co-founder Olivier Pomel, continues to position it as a long-term leader for ESG-conscious investors.

Collectively, these catalysts present a compelling, forward-looking narrative for NZ investors seeking international growth exposure within the technology complex.

Investment Strategies

For investors evaluating optimal timing, Datadog currently presents several advantages across investment horizons:

• Short-term: Current price action near short-term technical support ($115-$118 range) suggests an attractive entry for tactical traders seeking to capitalise on potential rallies, particularly ahead of further AI product updates or earnings catalysts.
• Medium-term: As Datadog digests recent sector rotations and consolidates near strong support, market consensus projects a return toward the $142–$152 range—a 20–30% upside, supported by upward earnings revisions and integration of new revenue streams from acquisitions.
• Long-term: Datadog’s clear leadership in unified cloud observability, recurring SaaS revenues, and best-in-class innovation pipeline justifies a growth premium. For NZ-based investors, this provides an avenue to benefit from secular technology megatrends, particularly as digital transformation deepens across the Asia-Pacific and global enterprise segments.

Ideal positioning would be to begin building exposure at current levels, with a view to averaging in on any market volatility around earnings or major technological milestone announcements. This strategy supports risk management while positioning for substantial capital appreciation.

Is It the Right Time to Buy Datadog?

To summarise, Datadog exhibits multiple converging strengths:

• Best-in-class revenue growth and profitability
• Strong sector tailwinds from AI and cloud migration
• Favourable technical underpinnings with limited short-term downside
• Robust liquidity and dynamic market engagement
• A compelling stream of positive catalysts across products, M&A, and regulatory approvals

Analyst consensus aligns with our findings: Datadog’s fundamentals justify renewed interest and suggest the stock may be entering a new bullish phase. While valuation remains elevated—a signature of top-tier SaaS platforms—Datadog’s innovation engine, expanding client base, and accelerated global demand for observability solutions seem to underpin its long-term growth trajectory.

For NZ investors seeking to capture growth at the intersection of cloud, AI, and global SaaS adoption, Datadog today appears to represent an excellent opportunity for serious consideration—offering an optimal blend of near-term catalysts and enduring structural potential.

As technology leadership transforms global markets once again, Datadog stands poised as a credible contender for forward-looking portfolios—making now a particularly opportune moment to consider this dynamic technology stock.

How to buy Datadog stock in New Zealand?

Buying Datadog (DDOG) shares online is now simpler and more secure than ever, thanks to regulated online brokers available to New Zealand investors. You can choose between spot buying, where you directly own the shares, and CFD (Contract for Difference) trading, which allows you to speculate on Datadog’s price movements without actual ownership. Each approach offers unique features, catering to different investment objectives. Before starting, it’s wise to compare brokers’ services and fees—our comprehensive comparator is available further down the page to help you make an informed choice.

Spot buying

Spot (cash) buying means purchasing actual Datadog shares on the US NASDAQ exchange through a licensed NZ or international broker. You become a direct shareholder, with all associated rights (excluding dividends, as Datadog doesn't pay any at present). Brokers typically charge a fixed commission per order; for New Zealanders, this is often around NZD $5 to $15 per trade.

Example

Suppose Datadog shares are trading at USD $117 per share (around NZD $192 at a recent exchange rate). With a stake of NZD $1,000, you could buy approximately 5 shares (NZD $192 x 5 = NZD $960), adding a typical NZD $5 brokerage fee for a total outlay of NZD $965.

• Gain scenario: If the share price rises by 10%, your holding is now worth NZD $1,056.
• Result: That's a NZD $96 gross gain, or +10% on your investment, before currency fluctuations and taxes.

Trading via CFD

CFD (Contract for Difference) trading enables you to speculate on Datadog’s share price without owning the underlying shares. Instead, you enter a contract with your broker to settle the difference in price from opening to closing the trade. CFDs allow you to use leverage—meaning you can control a larger position than your initial capital. Fees include the “spread” (difference between buy/sell prices) and overnight financing charges for holding positions longer than a day.

Example

With a NZD $1,000 stake and 5x leverage, you open a CFD position on Datadog, giving you a total market exposure of NZD $5,000.

• Gain scenario: If Datadog’s share price rises by 8%, your CFD position gains 8% × 5 = 40%.
• Result: You make a NZD $400 gain on your NZD $1,000 initial margin (excluding spreads and any overnight fees).

Important

Remember: leveraged CFDs can amplify both profits and losses. They are best suited to experienced investors comfortable with higher risk.

Final advice

Before investing, always compare each broker’s fees, conditions, and features—these can vary significantly, potentially impacting your returns. The best approach depends on your personal objectives: traditional share ownership (spot buying) is well-suited for long-term investors, while CFDs offer flexibility and leverage for active traders seeking short-term opportunities. Take time to assess what matches your strategy, and don’t forget—you’ll find a helpful broker comparison tool further down the page to guide your choice.

Our 7 tips for buying Datadog stock

The latest news about Datadog

Datadog posted stronger-than-expected Q1 2025 results, reporting 25% revenue growth and beating analyst forecasts. Revenue for the quarter reached $762 million, exceeding both guidance and consensus, while adjusted EPS hit $0.46, beating estimates of $0.43. This robust performance was driven by an increase in large customers—around 3,770 clients now contribute over $100,000 in annual recurring revenue, an important indicator for the enterprise segment, which includes New Zealand clients increasingly adopting cloud architectures. Such financial momentum reinforces Datadog’s perceived resilience and innovation in global markets, supporting positive analyst sentiment even in regions like New Zealand that prize SaaS-based scalability and reliability.

The company raised its full-year 2025 revenue guidance, confirming its accelerated growth trajectory. Datadog now projects 2025 revenues between $3.22 billion and $3.24 billion, significantly above its previous estimate of $3.18–$3.20 billion. This upward revision underlines demand robustness and signals continued expansion opportunities, including potential increases in spending by Asia-Pacific clients and partners. NZ-based tech companies and cloud adopters, increasingly reliant on high-functioning observability and security platforms, are directly impacted as Datadog’s strategic prioritization of innovation and expansion can improve performance, risk management, and compliance among local enterprises.

Recent acquisitions—particularly Eppo and Metaplane—strengthen Datadog’s AI capabilities and bolster its differentiators in data observability. The acquisition of Eppo in May 2025 broadens Datadog’s offering with new experimentation and feature flagging tools, while April’s purchase of Metaplane brings next-gen AI-powered data observability. These moves cement Datadog’s position at the cutting edge of cloud monitoring, directly addressing needs for advanced analytics and product optimization that are also top priorities in the NZ technology sector, from fast-scaling e-commerce to SaaS providers. Such innovation, delivered via Datadog’s unified platform, fosters additional appeal to New Zealand tech investors and corporate users wary of market and technical obsolescence.

Technical indicators suggest near-term upward momentum, with both short-term moving averages and a weekly gain reinforcing positivity. The stock finished the week up 2.91%, with its 20- and 50-day moving averages signaling “buy.” Although medium- and long-term technicals remain cautious, the Relative Strength Index of 61.56 is neutral rather than overbought. For NZ-based investors—who often favor momentum and growth leaders in the US tech sector—these signals warrant close monitoring, as they may indicate a favorable entry point, especially with analyst price targets suggesting more than 20% potential upside from current levels.

Analyst consensus remains strongly positive, forecasting sustained growth driven by Datadog’s expansion and cloud tailwinds—both globally and relevant to the New Zealand market. Thirty-three major covering analysts unanimously rate Datadog a “Buy”, with a consensus price target of $142.67 (+22% upside). This optimism is rooted in Datadog’s leadership in cloud observability, recurring SaaS revenues, and proven innovation pipeline. Given New Zealand’s accelerating shift toward cloud-native infrastructure across key sectors—finance, health, government—Datadog’s global growth vectors may have a cascading effect, potentially bolstering interest and adoption among NZ institutional and retail investors and technology adopters alike.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.