Datadog Stock Slides -9.2% With A 6-Day Losing Spree
Datadog (DDOG) stock hit day 6 of a continuous streak of days with losses, with cumulative losses over this period amounting to a -9.2% return. The company has lost about $5.0 Bil in value over the last 6 days, with its current market capitalization at about $50 Bil. The stock remains 2.0% below its value at the end of 2024. This compares with year-to-date returns of 15.6% for the S&P 500.
Datadog’s recent streak saw selling pressure intensify amid a significant analyst price target cut from Wolfe Research to $185 and notable insider sales, including a director’s $1.2M divestment. This re-evaluation by some, despite robust Q3 revenue growth and strong AI momentum, highlights investor caution around its high ~458 P/E.
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 | -1.4% | -0.2% |
| 6D (Current Streak) | -9.2% | -0.7% |
| 1M (21D) | -24.3% | 1.0% |
| 3M (63D) | 4.3% | 3.0% |
| YTD 2025 | -2.0% | 15.6% |
| 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 24 S&P constituents with 3 days or more of consecutive gains and 91 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 6 | 66 |
| 4D | 3 | 19 |
| 5D | 5 | 2 |
| 6D | 6 | 2 |
| 7D or more | 4 | 2 |
| Total >=3 D | 24 | 91 |
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.