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 in downward trend: price dove below 50-day moving average on September 12, 2023
DDOG moved below its 50-day moving average on September 12, 2023 date and that indicates a change from an upward trend to a downward trend. In of 35 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DDOG as a result. In of 62 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 September 19, 2023. 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 40 similar instances when the indicator turned negative. In of the 40 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 .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DDOG's RSI Oscillator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DDOG advanced for three days, in of 262 cases, the price rose further within the following month. The odds of a continued upward trend are .
DDOG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 238 cases where DDOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 (17.483) is normal, around the industry mean (21.026). DDOG's P/E Ratio (10000.000) is considerably higher than the industry average of (152.725). Projected Growth (PEG Ratio) (1.282) is also within normal values, averaging (2.638). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (14.903) is also within normal values, averaging (74.081).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DDOG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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Industry description
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High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company, which engages in the development of monitoring and analytics platform for developers, information technology operations teams and business users
Industry PackagedSoftware
DDOG and
Correlation & Price change
A.I.dvisor indicates that over the last year, DDOG has been closely correlated with MDB. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if DDOG jumps, then MDB could also see price increases.
| Ticker / NAME | Correlation To DDOG | 1D Price Change % | ||
|---|---|---|---|---|
| DDOG | 100% | +0.09% | ||
| MDB - DDOG | 76% Closely correlated | -0.73% | ||
| SNOW - DDOG | 76% Closely correlated | +0.03% | ||
| CFLT - DDOG | 73% Closely correlated | +0.71% | ||
| NET - DDOG | 72% Closely correlated | -0.02% | ||
| HUBS - DDOG | 72% Closely correlated | +0.18% | ||
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