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

$72.30B

Market Cap

$47.92B

33.88%

Potential Profit

52.14%

Buy

Analyst Rating

Buy

Why It's Moving

Snowflake Powers Ahead with Q1 Earnings Crush, Eyeing Robust AI Data Cloud Growth

Product revenue hit $996.8 million, up 26% YoY, beating expectations and highlighting sticky AI-driven workloads.
Net revenue retention rate of 124% reflects deep customer loyalty, with 606 clients now surpassing $1 million in trailing 12-month product revenue.
Remaining performance obligations jumped 34% to $6.7 billion, backing full-year guidance for $4.325 billion in product revenue and fueling investor optimism.

Sentiment:

🐃Bullish

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.

Sentiment:

🌋Volatile

Snowflake Powers Ahead with Q1 Earnings Crush, Eyeing Robust AI Data Cloud Growth

Product revenue hit $996.8 million, up 26% YoY, beating expectations and highlighting sticky AI-driven workloads.
Net revenue retention rate of 124% reflects deep customer loyalty, with 606 clients now surpassing $1 million in trailing 12-month product revenue.
Remaining performance obligations jumped 34% to $6.7 billion, backing full-year guidance for $4.325 billion in product revenue and fueling investor optimism.

Sentiment:

🐃Bullish

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.

Sentiment:

🌋Volatile

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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