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Record Revenue, Guidance See Datadog Shares Jump Higher

By: 
Lucas Downey
Wall Street buildings

Datadog, Inc. (DDOG) shares rise 280% since institutions first bought big in 2020.

DDOG offers an AI-powered, automated continuous monitoring and security platform for cloud-based applications and technology infrastructure. The company’s second-quarter fiscal 2026 earnings report showed $1.12 billion in quarterly revenue (a 36% year-over-year jump), operating income of $257 million (a 23% margin), 33,400 customers (up from 31,400 a year ago), and offered full-year revenue guidance of up to $4.47 billion (a 30% jump). DDOG reports again on Nov. 4.

It’s no wonder DDOG shares are up 96% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Big Money Loves its Datadog

Institutional volumes reveal plenty. In the last year, DDOG has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DDOG shares. They reflect our proprietary inflow signal, pushing the stock higher:

Line-and-area stock chart tracks Datadog Inc Class A (DDOG) share price from Oct 15, 2025, to Oct 15, 2026, using blue line and shaded area against a $100–$300 scale. Price falls from about $200 to near $110, rises sharply through May–June, peaks near $280 in August, declines in September, and recovers above $270 by October; green markers indicate inflows and magenta markers indicate outflows.
Huge inflows in May and June pushed DDOG shares higher – up 96% so far in 2026. Source: www.moneyflows.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Datadog.

Datadog Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DDOG has had strong sales and earnings growth:

  • 3-year sales growth rate (+27%)
  • 3-year EPS growth rate (+110.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +17%.

Now it makes sense why the stock has been generating Big Money interest. DDOG has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Datadog has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s generated 10 outlier inflow signals since 2020 and is up 280% since the first one. The blue bars below show when DDOG was a top pick on the Outlier 20 report…the Big Money buying continues:

Line chart tracks Datadog Inc Class A (DDOG) stock price from September 2019 through October 2026, with selectable time ranges and dollar scale from $0 to $300. Blue price line rises from under $50 to above $250 in 2026, while teal vertical markers indicate quarterly inflows and yellow markers indicate outflows.
DDOG shares have generated 10 outlier inflow signals since 2020 and are up 280% since the first one. Source: www.moneyflows.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Datadog Price Prediction

The DDOG action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in DDOG at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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