Datadog ( DDOG Quick Quote DDOG - Free Report) recently expanded its support for OpenTelemetry by enabling OpenTelemetry Protocol support in the Datadog Agent. OpenTelemetry is a Cloud Native Computing Foundation (CNCF) initiative providing open, vendor-neutral standards and tools for instrumenting services and applications. Organizations mainly use it to collect telemetry data to analyze and understand software performance and behavior and export the data to their preferred backend system. The availability of the new capability provides the OpenTelemetry-instrumented applications with the full monitoring capabilities of the Datadog platform. With the integration in place, Datadog Agent can now collect other telemetry data, such as infrastructure metrics and network data from more than 500 integrations. This allows Datadog customers richer data and thus a deeper understanding of their systems, applications and software. Network Performance Monitoring Products To Aid Customer Wins
The coronavirus-led pandemic has led to an accelerated digital transformation and cloud migration across organizations. Per a
Grand View Research report, the global cloud computing market was valued at $368.97 billion in 2021 and is expected to witness a CAGR of 15.7%, between 2022 and 2030. The trend bodes well with software-as-a-service (SaaS) companies such as Datadog. Datadog is benefiting from increased adoption of cloud-based monitoring and analytics platforms across the globe. In the last reported quarter, the company witnessed a robust demand for its infrastructure monitoring solutions, APM suite and log management products. The growing demand for its SaaS-based solutions is expected to drive the company’s top line as ell as boost subscriber growth in the near term. In the last reported quarter, steady customer additions drove the top line. Datadog had more than 19,800 customers at the end of the first quarter, up from 14,170 in the year-ago quarter. Recently, the company integrated several enhancements to its SaaS platform to simplify the monitoring and security of Google’s Kubernetes environment. It adds to the ongoing measures taken by the company to expand its content offerings. The integration of Datadog Operator for Kubernetes offers visibility into the health and performance of a Kubernetes environment. With these enhancements, Kubernetes users can easily deploy and update the Datadog Agent without downtime, get deeper visibility into the performance of their dynamic infrastructure and monitor their entire set of resources using Datadog monitors, dashboards and service level objectives (SLOs). The company also entered into a definitive agreement to acquire Hdiv Security. The acquisition of this security-testing software provider will enable Datadog’s Cloud Security Platform to adopt a more comprehensive approach to application security. In the last reported quarter, Datadog witnessed a robust demand for its security monitoring solutions and has since then been focused on enhancing the said product portfolio. The recent launch of its Application Security Monitoring product and the availability of two of its capabilities, namely Log Anomaly Detection and Root Cause Analysis for its AI engine Watchdog, are expected to have driven revenues across its cloud services segment and expanded its existing customer base. Zacks Rank and Stocks to Consider
Currently, Datadog has a Zacks Rank #3 (Hold)
Datadog’s shares have plunged 45.4% year to date compared with the Zacks Internet Software industry’s decline of 45.4%. The Computer & Technology sector has tumbled 25.8% year-to-date. Some better-ranked stocks in the Zacks Computer & Technology sector are Avid Technology ( AVID Quick Quote AVID - Free Report) , Ceridian HCM ( CDAY Quick Quote CDAY - Free Report) and Sapiens International ( SPNS Quick Quote SPNS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Avid Technology shares have declined 25% compared with the Zacks Computer – Software industry’s fall of 25% and the Computer & Technology sector’s drop of 25.7% in the year-to-date period. Ceridian HCM stock has declined 47.5% against the Zacks Internet - Software industry’s decline of 45.5% and the Computer & Technology sector’s fall of 25.8% in the year-to-date period. Shares of Sapiens International have declined 31.2% compared with the Zacks Computer – Software industry’s fall of 25% and the Computer & Technology sector’s plunge of 25.7% in the year-to-date period.