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Datadog Earnings Top Views. Shares Plunge On Weak Sales Outlook.

Datadog shares fell sharply following third-quarter earnings that surpassed analyst estimates. The company reported adjusted earnings of 81 cents per share and revenue reaching $1.197 billion or $1.20 billion depending on the report. Despite raising its full-year outlook for the third straight quarter, the stock crashed between 10% and 14% due to a weak fourth-quarter revenue outlook. Management cited lower usage from a major artificial intelligence customer as a primary weight on growth, reigniting longstanding market fears surrounding the company's largest accounts.

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  • ✓ Datadog reported third-quarter adjusted earnings of 81 cents a share.
  • ✓ Datadog reported third-quarter revenue of $1.197 billion or $1.20 billion.
  • ✓ Datadog stock fell between 10% and 14% following the earnings release.
  • ✓ The company raised its full-year outlook for the third straight quarter.
🛡️ Source Corroboration: 12 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Datadog released its third-quarter earnings report, which triggered a double-digit stock decline driven by disappointing fourth-quarter sales guidance and reduced usage from a major artificial intelligence customer.

Live updates

  1. Datadog Shares Plunge On Weak Sales Outlook Despite Earnings Beat

    Datadog shares fell sharply following third-quarter earnings that surpassed analyst estimates. The company reported adjusted earnings of 81 cents per share and revenue reaching $1.197 billion or $1.20 billion depending on the report. Despite raising its full-year outlook for the third straight quarter, the stock crashed between 10% and 14% due to a weak fourth-quarter revenue outlook. Management cited lower usage from a major artificial intelligence customer as a primary weight on growth, reigniting longstanding market fears surrounding the company's largest accounts.

    Why it matters

    The sharp market reaction highlights investor sensitivity to slowing sequential growth rates in high-valuation technology firms, particularly when tied to major enterprise accounts. Datadog increased its full-year guidance alongside its third-quarter beat, yet the forward-looking fourth-quarter sales forecast pointed toward weaker operating leverage. Analysts maintain a bullish Moderate Buy rating on the stock despite the sell-off.

    What is confirmed

    • Datadog reported third-quarter adjusted earnings of 81 cents a share.
    • Datadog reported third-quarter revenue of $1.197 billion or $1.20 billion.
    • Datadog stock fell between 10% and 14% following the earnings release.
    • The company raised its full-year outlook for the third straight quarter.
    • Management stated that lower usage from a major artificial intelligence customer is weighing on growth.

    Still unconfirmed

    • Analysts maintain a bullish Moderate Buy rating with upside potential for Datadog shares following the sell-off.

    What to watch next

    • Evidence of whether the major artificial intelligence customer's reduced usage is a temporary dip or a sustained trend.
    • Actual fourth-quarter financial results to see if they align with the weak sales outlook.
    Sources used for this update (14)
    1. www.tradingkey.com — Today’s Market Recap: OpenAI Revenue Concerns; Nasdaq Falls 1.25%, AAOI Drops 13.58%, Brent Gains 4.07%
    2. www.zerohedge.com — Futures Rise, Oil Slides As Iran's Supreme Leader Talks Peace And Shrugs Off Ras Tanura Attack
    3. cashwalklabs.io — GM will switch to Nasdaq from the NYSE on Nov. 17
    4. Investor's Business Daily — Datadog Earnings Top Views. Shares Plunge On Weak Sales Outlook.
    5. WSJ — Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
    6. Yahoo Finance — Datadog Stock Crashes 14% Despite an Earnings Beat. Is It a Buy?
    7. Seeking Alpha — Datadog: Fears Surrounding Largest Customer Return In Full Force (NASDAQ:DDOG)
    8. The Motley Fool — Why Datadog Stock Took a Dive Today
    9. finance.yahoo.com — Datadog Tumbles 11% Despite Earnings Beat as Soft Revenue ...
    10. www.marketbeat.com — DDOG Stock Sinks on Strong Earnings: Buying Opportunity Ahead
    11. finance.biggo.com — Datadog Beats Q3 Estimates but Weak Q4 Revenue Outlook Sends ...
    12. finance.yahoo.com — Datadog Stock Crashes 14% Despite an Earnings Beat. Is It a Buy?
    confidence 95%
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