Snowflake vs Datadog

This page offers a comprehensive comparison of Snowflake Inc. and Datadog Inc., examining their distinct business models, recent financial performance, and broader market context. Investors and interested parties can explore key differences and similarities between these two prominent technology companies. Educational content, not financial advice.

This page offers a comprehensive comparison of Snowflake Inc. and Datadog Inc., examining their distinct business models, recent financial performance, and broader market context. Investors and intere...

Comparison Snapshot

Key Financial Metrics

SNOW

Metric

DDOG

$65.25B

Market Cap

$45.25B

49.38%

Potential Profit

62.48%

Buy

Analyst Rating

Buy

Why It's Moving

Snowflake gears up for earnings with analysts betting on another beat amid AI boom.

Analysts highlight Snowflake's +8.08% Earnings ESP and Zacks Rank #3, pointing to a likely earnings beat backed by recent history of 23.76% average surprises.
AI innovations like Snowflake Intelligence and Cortex AI, plus partnerships with SAP, Google Cloud, and Anthropic, are accelerating customer growth and RPO.
The stock saw volatility last week, hitting $205.27 high before settling around $192, reflecting sector momentum in cloud and AI data platforms.

Sentiment:

🐃Bullish

Analysts Adjust Datadog Targets Ahead of Q4 Earnings, Balancing Recent Beats with Insider Sales.

Evercore ISI lowered its price target but kept 'outperform,' implying 35% upside, as DA Davidson reaffirmed 'buy' at $225.
Q3 revenue hit $886M, up 28% YoY with EPS of $0.55 beating forecasts, fueling optimism for upcoming results.
Insiders sold 1.04M shares worth $187M in three months, contrasting strong analyst consensus of Moderate Buy at $189 average target.

Sentiment:

⚖️Neutral

Snowflake gears up for earnings with analysts betting on another beat amid AI boom.

Analysts highlight Snowflake's +8.08% Earnings ESP and Zacks Rank #3, pointing to a likely earnings beat backed by recent history of 23.76% average surprises.
AI innovations like Snowflake Intelligence and Cortex AI, plus partnerships with SAP, Google Cloud, and Anthropic, are accelerating customer growth and RPO.
The stock saw volatility last week, hitting $205.27 high before settling around $192, reflecting sector momentum in cloud and AI data platforms.

Sentiment:

🐃Bullish

Analysts Adjust Datadog Targets Ahead of Q4 Earnings, Balancing Recent Beats with Insider Sales.

Evercore ISI lowered its price target but kept 'outperform,' implying 35% upside, as DA Davidson reaffirmed 'buy' at $225.
Q3 revenue hit $886M, up 28% YoY with EPS of $0.55 beating forecasts, fueling optimism for upcoming results.
Insiders sold 1.04M shares worth $187M in three months, contrasting strong analyst consensus of Moderate Buy at $189 average target.

Sentiment:

⚖️Neutral

Investment Analysis

Snowflake

SNOW

Pros

Snowflake achieved 29% year-over-year product revenue growth to $1.16 billion in Q3 FY2026, with RPO up 37% to $7.88 billion.
Net revenue retention remains robust at 125%, supported by expansion among high-spending enterprise customers.
Non-GAAP operating margin expanded to 11%, with strong free cash flow generation funding share buybacks.

Considerations

GAAP net margins stand at negative 30.76%, reflecting persistent overall unprofitability.
Intensifying competition from Databricks in machine learning workloads risks slowing new customer acquisition.
Premium valuation at 15-18x forward sales multiple leaves limited margin for error amid growth deceleration.

Datadog

DDOG

Pros

Datadog sustains strong demand for observability platforms amid accelerating cloud migrations and AI infrastructure buildouts.
High net revenue retention and customer expansions drive consistent revenue growth in enterprise segments.
Improving profitability through operating leverage supports ongoing investments in product innovation.

Considerations

Elevated valuation multiples expose the stock to volatility if growth moderates in a tougher macro environment.
Dependence on cloud hyperscalers heightens exposure to their spending cycles and pricing pressures.
Competitive pressures from open-source alternatives and larger incumbents challenge market share gains.

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