Tickeron's Robot Generates a Solid +4.16% Return for DDOG in the Previous Week
The Swing Trader: Volatility Balanced Strategy v.2 (TA), an AI trading robot that recently demonstrated exceptional performance by generating a remarkable gain of +4.16% while trading DDOG (Datadog Inc.) over the previous week. This article delves into the earnings results of DDOG and analyzes the implications of its recent Momentum Indicator movement.
DDOG's Momentum Indicator and Potential Downward Shift:
On June 16, 2023, DDOG's Momentum Indicator dipped below the 0 level, suggesting a potential shift towards a new downward movement. Traders and investors are advised to carefully consider their positions and explore options such as selling the stock or investigating put options. Tickeron's A.I.dvisor, an artificial intelligence-driven platform, has examined 59 similar instances of negative indicator turns and found that in 48 of those cases, the stock continued to decline in the following days. Consequently, the odds of a decline in DDOG are currently estimated at 81%.
Earnings Report Highlights:
DDOG's most recent earnings report, released on May 4, showcased impressive performance that surpassed market expectations. The earnings per share (EPS) figure came in at 28 cents, exceeding the estimated value of 23 cents. With 654.80K shares outstanding, DDOG currently boasts a market capitalization of approximately $31.12 billion.
Analysis:
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Positive Earnings Surprise: DDOG's earnings report delivered positive news, surpassing the estimated EPS by 5 cents. This indicates that the company performed better than anticipated, reflecting the effectiveness of its business strategies and potentially boosting investor confidence.
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Market Capitalization: With a market capitalization of $31.12 billion, DDOG is considered a large-cap stock. This suggests that the company is well-established and has the potential for stable growth and long-term viability.
Summary:
The Swing Trader: Volatility Balanced Strategy v.2 (TA) AI trading robot demonstrated its capabilities by generating a significant gain of +4.16% while trading DDOG over the previous week. However, caution is advised due to the recent dip of DDOG's Momentum Indicator below the 0 level, which suggests a potential downward shift in the stock's movement.
On the positive side, DDOG's recent earnings report surpassed market expectations, with earnings per share of 28 cents, outperforming the estimated value of 23 cents. With a market capitalization of $31.12 billion, DDOG showcases its position as a large-cap stock, which may contribute to its stability and long-term growth potential.
DDOG sees its Stochastic Oscillator climbs out of oversold territory
On October 28, 2024, the Stochastic Oscillator for DDOG moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 62 instances where the indicator left the oversold zone. In of the 62 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
DDOG moved above its 50-day moving average on September 23, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DDOG crossed bullishly above the 50-day moving average on September 26, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DDOG advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 271 cases where DDOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DDOG moved out of overbought territory on October 15, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DDOG as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DDOG turned negative on October 22, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DDOG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DDOG broke above its upper Bollinger Band on October 10, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DDOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (20.161) is normal, around the industry mean (30.698). DDOG has a moderately high P/E Ratio (879.643) as compared to the industry average of (161.895). Projected Growth (PEG Ratio) (1.145) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (20.284) is also within normal values, averaging (55.771).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a company, which engages in the development of monitoring and analytics platform for developers, information technology operations teams and business users
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