Datadog Stock Is Way Too Risky Right Now
Datadog's recent rally defies its fundamentals, and gravity may soon take its course.
Overview
Datadog (NASDAQ: DDOG) is riding tailwinds that have propelled the cybersecurity industry. As artificial intelligence (AI) advances, companies have more data points to protect from hackers. The company's cloud-scale infrastructure also makes it easier to monitor and secure its cloud platforms. That has become critical in the age of AI.
Those factors have been enough to almost double Datadog's stock price this year. However, a high valuation and a history of several 30% drawdowns over the past five years suggest caution is warranted now.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.