Can Datadog Stock Recover If Markets Fall?
Datadog (DDOG) stock is down 12.1% in 5 trading days. The recent slide reflects renewed concerns around slowing growth in large enterprise deals and decaying margins, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Datadog stands today.
- Size: Datadog is a $55 Bil company with $3.2 Bil in revenue currently trading at $158.44.
- Fundamentals: Last 12 month revenue growth of 26.6% and operating margin of -1.3%.
- Liquidity: Has Debt to Equity ratio of 0.02 and Cash to Assets ratio of 0.68
- Valuation: Datadog stock is currently trading at P/E multiple of 517.4 and P/EBIT multiple of 404.4
- Has returned (median) 54.4% within a year following sharp dips since 2010. See DDOG Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell DDOG Stock
That brings us to the key consideration for investors worried about this fall: how resilient is DDOG stock if markets turn south? This is where our downturn resilience framework comes in. Suppose DDOG stock falls another 20-30% to $111 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- DDOG stock fell 68.1% from a high of $196.56 on 9 November 2021 to $62.69 on 25 April 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 November 2025
- Since then, the stock increased to a high of $199.72 on 10 November 2025 , and currently trades at $158.44
| DDOG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -68.1% | -25.4% |
| Time to Full Recovery | 930 days | 464 days |
2020 Covid Pandemic
- DDOG stock fell 42.1% from a high of $50.01 on 12 February 2020 to $28.96 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 May 2020
| DDOG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.1% | -33.9% |
| Time to Full Recovery | 53 days | 148 days |
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