Billionaire Philippe Laffont is Selling These 5 Stocks

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 82

Datadog, Inc. (NASDAQ:DDOG) is a New York-based data monitoring and analytics platform. Philippe Laffont’s Coatue Management added Datadog, Inc. (NASDAQ:DDOG) to its portfolio initially in the third quarter of 2019. The hedge fund held the stake consecutively until disposing it in Q3 2021. Coatue Management purchased 62,193 shares of Datadog, Inc. (NASDAQ:DDOG) in Q4 2021, which it dumped entirely in Q1 2022. 

On July 25, RBC Capital analyst Matthew Hedberg lowered the price target on Datadog, Inc. (NASDAQ:DDOG) to $115 from $167 on shrinking peer multiples but maintained an Outperform rating on the shares ahead of its Q2 results. After a “strong” Q1, the analyst is focused on the company’s macro outlook, the effect of consumption pricing, ongoing success around its platform strategy, and multiple product adoption. He added that he still likes the potential for long-term growth and margin improvement at Datadog, Inc. (NASDAQ:DDOG).

According to Insider Monkey’s data, 82 hedge funds were bullish on Datadog, Inc. (NASDAQ:DDOG) at the end of March 2022, up from 73 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company, with roughly 3 million shares worth $449.15 million. 

Here is what Baron Global Advantage Fund has to say about Datadog, Inc. (NASDAQ:DDOG) in its Q1 2022 investor letter:

“Another example is Datadog, the leading infrastructure monitoring, application performance monitoring and log management software platform. Datadog’s stock declined 15% during the quarter, despite reporting sparkling operational results, with revenues accelerating to a growth rate of 84% year-over-year with 33% free cash flow margins, while guiding for 2022 significantly above expectations. Datadog added 4,600 new customers in the quarter, while existing customers continued to increase their spending on Datadog products at a rapid pace with the number of customers using four or more products increasing to 33% from 22% last year. While Datadog’s stock was down, its intrinsic value has undoubtedly increased. This is enabled by rapid innovation (Datadog released 13 new products in 2021) into a market that is benefiting from the secular growth in cloud, digital transformation, and the explosion in complexity as the number of vendors, diversity of technologies and related infrastructure continued to expand.”