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 Stock Dips Sharply but Bullish Signals Emerge Amid Volatility.
- Stock corrected over 40% to around $118-$122 levels, forming a triangle and falling wedge pattern that hints at upcoming volatility with bullish setups developing.
- Bearish Bull Bear Power indicator trends upward while trading volumes rise, pointing to possible reversal as DDOG lags S&P 500 but attracts long trade ideas targeting $165+.
- Recent analyst upgrades and ClearBridge Investments' new stake rebuild confidence in Datadog's 16% annual revenue growth forecast and observability expansions despite premium valuation.
Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat
- Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
- Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
- Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.
Datadog Stock Dips Sharply but Bullish Signals Emerge Amid Volatility.
- Stock corrected over 40% to around $118-$122 levels, forming a triangle and falling wedge pattern that hints at upcoming volatility with bullish setups developing.
- Bearish Bull Bear Power indicator trends upward while trading volumes rise, pointing to possible reversal as DDOG lags S&P 500 but attracts long trade ideas targeting $165+.
- Recent analyst upgrades and ClearBridge Investments' new stake rebuild confidence in Datadog's 16% annual revenue growth forecast and observability expansions despite premium valuation.
Zscaler Climbs Modestly Amid Anticipation for Upcoming Earnings Beat
- Analysts forecast Q2 EPS of $0.89, a 14.1% year-over-year jump, and revenue of $798 million, up 23.17%, highlighting accelerating demand for cloud-native cybersecurity.
- Recent analyst updates lean bullish, with multiple buy ratings and price targets up to $290 from firms like BMO Capital and Rosenblatt, reflecting optimism on business momentum.
- Despite a premium Forward P/E of 54.34 versus the industry average, Zscaler's PEG ratio of 2.98 supports its growth trajectory amid sector tailwinds.
Investment 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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Related Market Insights
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Datadog (DDOG) Next Earnings Date
Datadog (DDOG) is expected to report earnings on February 10, 2026, before market open, covering the fiscal quarter ending December 2025. This date aligns with the consensus across multiple analyst projections, though minor variations exist to February 9 or 12. Investors should monitor for official confirmation from the company.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to report its next earnings on March 4, 2026. This release will cover the Q2 2026 fiscal quarter, following the Q1 2026 results reported on November 25, 2025. Investors should note that while multiple sources align on this date, official confirmation from the company is pending.
Datadog (DDOG) Next Earnings Date
Datadog (DDOG) is expected to report earnings on February 10, 2026, before market open, covering the fiscal quarter ending December 2025. This date aligns with the consensus across multiple analyst projections, though minor variations exist to February 9 or 12. Investors should monitor for official confirmation from the company.
Zscaler (ZS) Next Earnings Date
Zscaler (ZS) is scheduled to report its next earnings on March 4, 2026. This release will cover the Q2 2026 fiscal quarter, following the Q1 2026 results reported on November 25, 2025. Investors should note that while multiple sources align on this date, official confirmation from the company is pending.
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
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