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Datadog's Stock Now Costs Far More Than Its Sales Can Explain
['Trefis Team', 'July', 'Min Read']
Yahoo Finance
Image by ZT_OSCAR from PixabayThe business is still accelerating, yet the shares now fetch an extreme multiple of sales, leaving almost no room for the growth to disappoint.
The observability platform carries a market value of about $87 billion on $3.7 billion of trailing revenue, or close to 24 times sales.
What Has To Go Right To Justify Twenty-Four Times Sales?
A stock near 24 times sales is priced for the top of that range, not the bottom.
Ahead of that report, it is worth gauging how big a move the market is bracing for around the numbers.