Stock Traders Purchase High Volume of Datadog Call Options (NASDAQ:DDOG)

Key Points

• Traders bought an unusually large number of calls—56,235 call options, about a 117% jump versus normal volume—while DDOG shares surged 29.5% to $186.17 on heavily elevated trading volume.
• The move was driven by a strong quarter and outlook: Datadog posted $0.60 EPS (vs. $0.50 consensus) and $1.01B revenue (+32% YoY), and raised both Q2 and FY guidance, prompting bullish investor reaction.
• Risks remain—insider selling and a stretched valuation (P/E ~603) plus elevated options-driven volatility suggest some gains may be short‑term and headline‑driven.

Datadog, Inc. (NASDAQ:DDOG - Get Free Report) was the target of unusually large options trading on Thursday. Stock investors purchased 56,235 call options on the company. This represents an increase of approximately 117% compared to the typical volume of 25,941 call options.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q1 beat: Datadog reported $0.60 EPS vs. ~$0.50 consensus and revenue of ~$1.01B (+32% YoY), with strong operating cash flow ($335M) and free cash flow ($289M) — the core fundamental driver behind the rally. Read More.
• Positive Sentiment: Guidance raised: management set Q2 EPS $0.57–$0.59 (vs. ~ $0.41 consensus) and FY EPS $2.36–$2.44 (vs. ~ $1.80), and Q2/FY revenue targets above Street expectations — the primary bullish catalyst for the stock today. Read More.
• Positive Sentiment: Product and sales momentum: expansion in large customers (~4,550 $100k+ ARR customers) and new launches (MCP Server, Bits AI Security Agent, GPU Monitoring, Experiments) support durable growth expectations. Read More.
• Positive Sentiment: FedRAMP High certification for government offering removes a compliance barrier for federal deals, opening a new addressable market and providing a structural growth catalyst. Read More.
• Positive Sentiment: Sell‑side support: Jefferies raised its price target to $170 and kept a Buy rating, adding incremental analyst backing for upside. Read More.
• Neutral Sentiment: Analyst/newsflow sensitivity: pre‑ and post‑earnings notes are amplifying short‑term flows; expect continued headline‑driven moves around bookings, large‑customer metrics and AI commentary. Read More.
• Neutral Sentiment: Elevated options activity and implied volatility around the print mean some of the move is driven by trading flows rather than long‑term buyers. Read More.
• Negative Sentiment: Insider selling: CTO Alexis Le‑Quoc sold ~43,106 shares in a pre‑arranged 10b5‑1 plan — disclosed sales can be perceived negatively even if planned. Read More.
• Negative Sentiment: Valuation risk: DDOG still trades at a premium multiple vs. peers; high P/E can amplify pullbacks as investors lock gains after recent strong performance. Read More.

Datadog Stock Up 29.5%

DDOG stock traded up $42.46 during trading on Thursday, reaching $186.17. 13,148,677 shares of the stock were exchanged, compared to its average volume of 5,694,377. The firm's 50 day moving average is $122.72 and its 200 day moving average is $136.73. Datadog has a twelve month low of $98.01 and a twelve month high of $201.69. The company has a current ratio of 3.38, a quick ratio of 3.38 and a debt-to-equity ratio of 0.26. The firm has a market cap of $65.64 billion, a P/E ratio of 603.11, a price-to-earnings-growth ratio of 52.75 and a beta of 1.30.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $960.12 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The firm's revenue for the quarter was up 32.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.46 earnings per share. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. As a group, research analysts forecast that Datadog will post 0.32 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total transaction of $6,765,416.88. Following the sale, the chief technology officer directly owned 437,257 shares in the company, valued at $54,871,380.93. The trade was a 10.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Olivier Pomel sold 68,922 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $110.54, for a total value of $7,618,637.88. Following the completion of the transaction, the chief executive officer directly owned 704,821 shares in the company, valued at $77,910,913.34. This represents a 8.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 637,745 shares of company stock worth $78,462,247. Corporate insiders own 6.67% of the company's stock.

Institutional Investors Weigh In On Datadog

Several institutional investors and hedge funds have recently bought and sold shares of DDOG. SEB Asset Management AB purchased a new position in shares of Datadog in the 1st quarter valued at approximately $8,706,000. Swiss National Bank increased its holdings in Datadog by 7.8% during the first quarter. Swiss National Bank now owns 907,300 shares of the company's stock valued at $107,107,000 after buying an additional 65,800 shares during the last quarter. AIA Group Ltd purchased a new stake in Datadog during the first quarter valued at approximately $3,164,000. Freemont Management S.A. purchased a new stake in Datadog in the first quarter worth about $3,423,000. Finally, Annis Gardner Whiting Capital Advisors LLC increased its position in Datadog by 341.7% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company's stock worth $38,000 after buying an additional 246 shares in the last quarter. Hedge funds and other institutional investors own 78.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Canadian Imperial Bank of Commerce reduced their target price on shares of Datadog from $240.00 to $215.00 and set an "outperformer" rating on the stock in a research note on Monday, April 20th. Evercore lowered their price objective on shares of Datadog from $215.00 to $175.00 and set an "outperform" rating on the stock in a report on Monday, February 2nd. Citizens Jmp reiterated a "market perform" rating on shares of Datadog in a report on Wednesday, February 11th. BMO Capital Markets set a $165.00 price objective on shares of Datadog in a report on Wednesday, February 11th. Finally, DA Davidson reaffirmed a "buy" rating and issued a $225.00 target price on shares of Datadog in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Datadog has an average rating of "Moderate Buy" and a consensus target price of $177.28.

Datadog Company Profile

Datadog NASDAQ: DDOG is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog's platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company's product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.

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