Datadog (DDOG) & UiPath (PATH) rally after quarterly reports

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Datadog (DDOG) & UiPath (PATH) rally after quarterly reports

 Datadog (DDOG) & UiPath (PATH) rally after quarterly reports
Image source: SFIO CRACHO, Shutterstock

Highlights

  • The revenue of Datadog, Inc. (NASDAQ: DDOG) increased by 75% YoY in Q3, FY21
  • Datadog, Inc. (NASDAQ: DDOG) expects its revenue to be between US$993 million and US$995 million for full fiscal 2021
  • UiPath, Inc. (NYSE: PATH) revenue was up 40% YoY in Q2, FY22

The stocks of Datadog, Inc. (NASDAQ: DDOG) and UiPath, Inc. (NYSE: PATH) grabbed the eyeballs of investors Friday, November 5. The former jumped around 17% in pre-market trading, while the latter was up more than 3%.

The DDOG stocks were priced at US$195.80 at 6:33 am ET on Friday, up 17.28% from its closing price of Thursday, while the PATH share traded at US$59.59 at 6:34 am ET on November 5, up 3.62% from its previous closing price.

Let's discuss the performances of these two companies.

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Datadog, Inc. (NASDAQ: DDOG)

Datadog is a Software-as-a-service (SaaS) company that offers monitoring and analytical services through its platform for developers, teams, and businesses in the technology sector. It is based in New York.

The company came into the limelight after announcing its successful acquisition of a live debugging solution, Ozcode, on November 4. It is expected that Ozcode will aid Datadog's clients in accelerating their software development services while reducing the issue-resolving time.

The market cap of the company is US$51.75 billion, and the forward one-year P/E ratio is -1517.73. Its EPS is at a loss of US$0.14.

The stock saw the highest price of US$169.19 and the lowest price of US$69.73 in the last 52 weeks. Its share volume on November 4 was 3,007,837.

Meanwhile, the company has also reported strong quarterly earnings on Thursday, which beat analysts' expectations.

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The company's revenue surged 75% YoY to US$270 million in Q3, FY21. Its gross profit was US$207.15 million, as compared to US$120 million in the prior year's third quarter.

Datadog reported a net loss of US$5.48 million, or a loss of US$0.02 per share, as compared to a loss of US$15.15 million, or a loss of US$0.05 per share in Q3, FY20.

For the fourth quarter of fiscal 2021, the company expects its revenue to be between US$290 million and US$292 million while projecting its non-GAAP net income to be between US$0.11 and US$0.12 per share.

For full fiscal 2021, the company expects its revenue to be between US$993 million and US$995 million.

Also Read: Qualcomm (QCOM) posts strong Q4, fiscal 2021 results

Technology stocks: Datadog (DDOG) and UiPath (PATH)

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UiPath, Inc. (NYSE: PATH)

UiPath is a software company that provides robotic process automation services. It is based in New York.

The firm has a market cap of US$29.53 billion, and a forward one-year P/E ratio of -70.13. The 52-week highest and lowest stock prices were US$90.00 and US$47.20, respectively. Its trading volume was 13,606,020 on November 4.

The company released its 2020 Environmental, Social, and Governance (ESG) Overview on November 3, which indicates the company's sustainability efforts.

The firm's revenue was US$195.52 million in Q2, FY22, representing an increase of 40% YoY. For the period, it reported a net loss of US$100.02 million, against an income of US$4.98 million in Q2, FY21.

Also Read: T-Mobile (TMUS) stock jumps 5% a day after Q3 results

Bottom line:

The technology sector has witnessed significant gains in the past quarters, with the increasing demand for products and services. The S&P 500 Information Technology sector surged 27.40% YTD while increasing 11.25% QTD. However, investors should also focus on the market scenario before investing in the stocks.

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