Is Datadog (DDOG) De-Risked Enough?

Datadog stock is down 13% YTD

Has Datadog (DDOG, $64) sufficiently de-risked guidance for this year? That’s the burning question for the bulls. After reporting robust 2022 revenue growth of 63%, the company guided to a sharp deceleration this year in its consumption-based business. For 2023, Datadog’s initial revenue outlook of $2.08 billion at the midpoint represents growth of just 24%. Given that the economy could get more challenging in the near-term, management decided it was best to play it safe.