Datadog vs Zscaler
Datadog and Zscaler are compared on this page to illuminate differences in business models, financial performance, and market context. This page examines each company's approach to product strategy, revenue generation, cost structure, and competitive positioning in a neutral, accessible way. Educational content, not financial advice.
Datadog and Zscaler are compared on this page to illuminate differences in business models, financial performance, and market context. This page examines each company's approach to product strategy, r...
Why It's Moving
Datadog CEO's hefty share sale sparks scrutiny amid elevated options volatility.
- CEO Olivier Pomel sold 48,148 DDOG shares on Dec 2, a move that often prompts market watchdogs to assess insider sentiment.
- Dec 5 options show 50.44% implied volatility, signaling heightened uncertainty with a 68% chance of closing between $132-$187.
- No fresh earnings or product news this week, but cloud sector strength keeps DDOG in focus amid broader tech momentum.
Zscaler Hits Oversold Levels as Analysts Signal Potential Rebound Amid Mixed Signals
- RSI at 27.83 flags ZS as oversold, suggesting heavy selling may be winding down and paving the way for a supply-demand rebalance.
- Consensus EPS estimates rose 11.8% in the last 30 days, reflecting analysts' optimism about Zscaler's earnings trajectory and near-term price lift.
- Zacks Rank #2 (Buy) places ZS in the top 20% of stocks, bolstered by positive EPS surprise trends despite a recent Bernstein downgrade to Market Perform.
Datadog CEO's hefty share sale sparks scrutiny amid elevated options volatility.
- CEO Olivier Pomel sold 48,148 DDOG shares on Dec 2, a move that often prompts market watchdogs to assess insider sentiment.
- Dec 5 options show 50.44% implied volatility, signaling heightened uncertainty with a 68% chance of closing between $132-$187.
- No fresh earnings or product news this week, but cloud sector strength keeps DDOG in focus amid broader tech momentum.
Zscaler Hits Oversold Levels as Analysts Signal Potential Rebound Amid Mixed Signals
- RSI at 27.83 flags ZS as oversold, suggesting heavy selling may be winding down and paving the way for a supply-demand rebalance.
- Consensus EPS estimates rose 11.8% in the last 30 days, reflecting analysts' optimism about Zscaler's earnings trajectory and near-term price lift.
- Zacks Rank #2 (Buy) places ZS in the top 20% of stocks, bolstered by positive EPS surprise trends despite a recent Bernstein downgrade to Market Perform.
Which Baskets Do They Appear In?
Trusted Partners (Oracle MSFT NET CYBR & More)
Oracle's reported deal to manage TikTok's U.S. operations highlights a critical need for trusted technology partners to navigate geopolitical tensions. This creates an investment opportunity in U.S. companies that provide secure data infrastructure and cybersecurity services to foreign firms.
Published: September 16, 2025
Explore BasketWhich Baskets Do They Appear In?
Trusted Partners (Oracle MSFT NET CYBR & More)
Oracle's reported deal to manage TikTok's U.S. operations highlights a critical need for trusted technology partners to navigate geopolitical tensions. This creates an investment opportunity in U.S. companies that provide secure data infrastructure and cybersecurity services to foreign firms.
Published: September 16, 2025
Explore BasketInvestment Analysis
Datadog
DDOG
Pros
- Datadog is a leading provider of cloud-based monitoring and analytics solutions with a strong industry position.
- It has shown consistent revenue growth driven by the increasing demand for observability and IT operations tools.
- Its risk profile includes moderate volatility, facilitating portfolio diversification with some positive correlation to peers.
Considerations
- The company's return on equity (ROE) is relatively low at 4.35%, below many industry peers, indicating moderate profitability.
- Datadog's risk-adjusted performance, such as the Sharpe ratio of 0.06, is significantly weaker compared to competitors like Zscaler.
- Price volatility is somewhat high at 11.87%, reflecting larger price fluctuations that may increase investment risk.
Zscaler
ZS
Pros
- Zscaler is a major player in cloud security with a market capitalization slightly above $44 billion, similar in scale to Datadog.
- It exhibits stronger risk-adjusted returns, with a Sharpe ratio of 1.31, suggesting better risk management and return balance.
- Zscaler has slightly lower price volatility (11.14%) compared to Datadog, implying relatively steadier price movements.
Considerations
- Despite its scale and growth, Zscaler operates in a competitive cyber security space with significant rivals like CrowdStrike and Palo Alto Networks.
- The stock shows moderate price fluctuations which still indicate notable investment risk in a volatile sector.
- Its valuation and profitability metrics may be pressured by ongoing innovation demands and pricing competition within cloud security.
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