Datadog Stock Plummets -20% With 8-Day Losing Streak
Datadog (DDOG) stock hit day 8 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -20% return. The company has lost about $14 Bil in value over the last 8 days, with its current market capitalization at about $56 Bil. The stock remains 11.7% above its value at the end of 2024. This compares with year-to-date returns of 11.2% for the S&P 500.
Datadog’s recent streak saw investors taking profits after its robust post-earnings surge, while renewed competitive concerns, specifically around AI optimization within cloud infrastructure, weighed on sentiment. A reported insider share sale and a slight dip in analyst EPS estimates further fueled investor apprehension, catalyzing the stock’s notable pullback.
What is the point? Sustained weakness can be more than noise. It often signals shifting sentiment or deeper concerns. A multi-day losing streak may warn of further downside, or present an opportunity to buy if fundamentals are intact. Our take: There is not much to fear in DDOG stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (see Buy or Sell DDOG).
For quick background, DDOG provides a SaaS platform that integrates and automates infrastructure, application performance, log, and security monitoring for developers, operations, and business users globally.
Comparing DDOG Stock Returns With The S&P 500
The following table summarizes the return for DDOG stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | DDOG | S&P 500 |
|---|---|---|
| 1D | -9.5% | -1.6% |
| 8D (Current Streak) | -20.1% | -4.3% |
| 1M (21D) | 3.5% | -2.4% |
| 3M (63D) | 21.6% | 1.1% |
| YTD 2025 | 11.7% | 11.2% |
| 2024 | 17.7% | 23.3% |
| 2023 | 65.1% | 24.2% |
| 2022 | -58.7% | -19.4% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: DDOG Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 23 S&P constituents with 3 days or more of consecutive gains and 98 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 19 | 20 |
| 4D | 1 | 31 |
| 5D | 0 | 6 |
| 6D | 2 | 27 |
| 7D or more | 1 | 14 |
| Total >=3 D | 23 | 98 |
Key Financials for Datadog (DDOG)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $2.1 Bil | $2.7 Bil |
| Operating Income | $-33.5 Mil | $54.3 Mil |
| Net Income | $48.6 Mil | $183.7 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $826.8 Mil | $885.7 Mil |
| Operating Income | $-34.1 Mil | $-5.8 Mil |
| Net Income | $2.6 Mil | $33.9 Mil |
The losing streak DDOG stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.