Datadog Stock vs Dynatrace Stock | The Winner Is?

Datadog stock vs Dynatrace stock. Which is the better stock to invest in? Datadog, Dynatrace, and Splunk are the three largest application monitoring stocks out there, and rather than going down the rabbit hole of technical comparisons, we put together some key SaaS metrics for comparison. DDOG stock comes out ahead, even though it's a bit more richly valued than the rest. SPLK stock is the cheapest valued, while DT stock doesn't provide us with all the key SaaS metrics needed to properly analyze the company. Application performance monitoring is a compelling investment theme and Datadog stock comes out ahead with Splunk stock following behind in second place. What APM stock did we invest in? Watch our analysis on Dynatrace vs Datadog vs Splunk to find out.
RESEARCH PIECES USED IN THIS VIDEO:
1. Datadog vs Dynatrace vs Splunk: The Best Stock Is?
www.nanalyze.com/2023/01/data...
2. 5 Application Performance Monitoring Stocks
www.nanalyze.com/2022/07/appl...
3. Splunk Stock Forecast: Calm With a Chance of Volatility
www.nanalyze.com/2021/11/splu...
4. Splunk Stock is Falling Along With Revenues. Why?
www.nanalyze.com/2021/04/splu...
5. A Simple Valuation Ratio for Disruptive Tech Stocks
www.nanalyze.com/2021/06/simp...
CHAPTERS:
Intro
About application performance management
5 APM Stocks
Finding the alpha APM stock
The top three APM stocks
Key SaaS comparison metrics
Datadog vs Dynatrace vs Splunk
Datadog vs Dynatrace - Cash and Debt
Is Datadog going to catch Splunk?
Conclusion
ABOUT US:
This video is brought to you by Nanalyze, a media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #stocks in a language that is future-proof and easy to understand.
Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.com/become-a-nan...
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our KZbin videos or on our website, whether for the purpose of making an investment or otherwise.
#datadog $DDOG
#dynatrace
#splunk $SPLK

[@Cyclops0000]

Great video as always. Had Datadog on my watchlist for a bit over a year now and it's never been quite at a valuation where I'm happy to open a new position over just averaging into my other holdings. Idealy the price would drop a bit this year due to general market concerns or an overreaction to slightly slowing revenue growth, I'd buy and then later some competitors with more debt on their balance sheets would go under which would stabilize Datadog until the market turns. Situations like this are exactly why everyone should keep some cash on the side ready to buy dips.

[@joepiv]

Totally agree on always having cash around. It's always refreshing to watch investors have a valuation target in mind and then not yield to FOMO when the price doesn't hit the target. This bear could have a lot more to run and a sinking tide will lower all ships.

[@gerharda.8095]

Very useful. Thank you. Splunk and Datadog spend very high amount of their revenue for Stock based Compensation whereas Dynatrace behaves moderate in terms of this criteria.

[@Nanalyze]

That's a useful bit of into to know, thank you. We're exploring the topic of SBC in a coming video.

[@dannyh1891]

Another great breakdown Joe, I'll probably wait for datadog to drop into the 50's before starting a position. Just curious why don't you monetize your page? It is great not seeing ad's but I heard someone say your channel will grow quicker if you monetize.

[@joepiv]

This is a very good suggestion as we've often thought the same thing. KZbin must want people who make them money! However, we see two problems with that. 1) People click off the content which negatively impacts the video. YT wants to see people engaged. 2) The most important reason is that we cannot control the tripe that gets peddled to our audience. Last thing we want is to be associated with some shite crypto project peddling worthless tokens on successful channels. That said, this something we're actively thinking about because the money helps us as well, and that becomes more and more meaningful as we grow.

[@dannyh1891]

@@joepiv Good points 👍🏼

[@majordelays4909]

Great Vid

[@Nanalyze]

Thank you!

[@jameskirschvink4769]

I'm interested in Datadog and Crowdstrike but significant portions of their revenue are gobbled up in SBC (especially Crowdstrike). Is the dilutive structure of a company such as Datadog a necessary bridge towards profitability or are they taking advantage of a rich valuation at the expense of an investor's EPS?

[@Nanalyze]

We have a piece teed up to address SBC. Don't sweat it so much. That's how these companies attract strong talent (assuming they're hiring based solely on competency).

[@joepiv]

@@TheIvyLens Nice detailed description of how SBC motivates people, especially those talented people who are PHDs - Poor, Hungry, and Determined. In some firms they'll keep those going - the old "golden handcuffs."

[@Daniel.Filip.]

What is the formula for simple valuation ratio?

[@someup7786]

Last quarter revenue x 4 / by market cap I believe

[@joepiv]

Please see the following: www.nanalyze.com/2021/06/simple-valuation-ratio-tech-stocks/

[@joepiv]

@@someup7786 Close. Market cap / (Last quarter revenues X 4)

[@someup7786]

@@joepiv thanks!

[@MotivateSHRTS]

I think the revenue growth of Datadog is unsustainable. I,m afraid when the revenue growth slows down the stock price will fall. That’s not neccesairly a bad thing if you want to open a position. What do you think?

[@Nanalyze]

Good question. All revenues growth will taper off as a company scales. Sometimes, like in the case of NVIDIA's 23% YoY growth in 2022 despite being a half a trillion dollar firm, you'll see that growth continue far into the future. If the TAM is as large as a company says it is, and there's no competition, growth should be able to sustain for a long while. If growth stalls, then it ceases to be a growth stock, and therefore is no longer desirable to growth investors. So the question is, if growth stalls, is it temporary? We've seen quite a few firms have growth stall because of macroeconomic headwinds which may result in an overcorrection and good opportunity to add shares.

[@rickfool1452]

this guy talks like he's relishing the taste of ghadoosh in his mouth

[@jameskirschvink4769]

I think he talks like he is relishing the taste of Goulash he just had. Ha, he was prescient enough to nail the recent $108 TSLA bottom price target and is my go to channel for stock analysis. Keep kicking ass nanalyze.

[@joepiv]

@rickfool1452 Thought this was a troll, but it's actually Rick! He regularly comes around to engage in health criticisms. It's called cottonmouth Rick! ;)

[@joepiv]

@@jameskirschvink4769 Hungarian goulash is underrated. Spent a lot of time there managing some highly competent Hungarians. Appreciate the kind words, but we're always wary about celebrating price targets because the stock market has a way of humbling those who think they have it mastered. We'll keep kicking ass though! ;)