Datadog, Inc. (NASDAQ:DDOG) is one of the stocks in focus on Jim Cramer’s game plan. Cramer called the stock “too expensive,” as he remarked:
On Tuesday, we’re back in heavy earnings rotation. We’ve got DuPont, Coca-Cola, CVS Health, AstraZeneca, Datadog, and S&P Global report… Next, we have the tales of powerful AI companies destroying little guys, and this time it’s Datadog and S&P Global. The Dog is the kind of software-as-a-service company that was once loved. Not anymore. Stock’s been nearly cut in half, but it still sells for less than 50 times earnings. But it’s too expensive in this environment. There are cheap enterprise software stocks, just not this one.
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Datadog, Inc. (NASDAQ:DDOG) provides an observability and security platform that is designed to monitor cloud applications through infrastructure tracking, log management, and network analysis. A caller inquired about the stock during the January 15 episode, and Cramer replied:
We’re not, we’re going to stay away from these enterprise software companies. They seem to be almost in freefall, and I don’t need to break the fall.
While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
