Jim Cramer’s Bearish Calls: 10 Tech Stocks Heading for a Crash

5. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders In Q3 2024: 71

Date of Cramer’s Comments: 08-19-24

Performance Since Then: 25.81%

Datadog, Inc. (NASDAQ:DDOG) is a specialty software-as-a-service (SaaS) company that enables businesses to monitor and analyze their cloud software operations. Its business model provides the firm with a unique exposure to the AI industry as it allows AI users to manage and monitor their tools. The strong demand for its products, particularly from AI operators, has allowed Datadog, Inc. (NASDAQ:DDOG) to beat analyst estimates for its second and third-quarter earnings. However, the stock remains vulnerable to the broader economic outlook as was evident in December when Datadog, Inc. (NASDAQ:DDOG)’s shares fell by 4.26% after the Fed took a hawkish tone after its December interest rate cut. In August, Cramer had warned viewers to be wary of the stock:

“Datadog is usually a fabulous company. There were people trying to buy it for $20 billion before it ever went public. My problem is that it’s just the definition of enterprise software—the kind of analytics that tells you how your company’s doing. There are too many players in that space, Dave. So I’m going to reiterate: I don’t trust it yet, but it is a very good company. And thank you for the question.”