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DDOG vs ZS
Which Stock Would AI Choose? Datadog (DDOG) vs. Zscaler (ZS) Stock Comparison
Key Takeaways
- Datadog (DDOG) reported 32% year-over-year revenue growth in Q1 2026, supported by AI product enhancements and the June 2026 acquisition of Adaptive ML.
- Zscaler (ZS) achieved 25% revenue growth in its fiscal Q3 2026 but experienced a sharp post-earnings decline due to cautious guidance, followed by a recent multi-day recovery.
- Both companies operate in the cloud infrastructure and cybersecurity space, with growing emphasis on artificial intelligence-driven solutions for enterprise customers.
- DDOG has shown stronger year-to-date price performance compared to ZS, which has faced greater volatility and a larger drawdown over the trailing twelve months.
- Market sentiment for DDOG reflects sustained optimism around observability leadership, while ZS sentiment has been influenced by guidance prudence amid competitive pressures in zero-trust security.
- Relative positioning highlights trade-offs between DDOG’s broader platform expansion and ZS’s focused zero-trust network access model.
Introduction
Datadog (DDOG) and Zscaler (ZS) represent two prominent players in the cloud-native technology sector, offering complementary yet distinct solutions for enterprise observability, monitoring, and cybersecurity. Investors and traders focused on growth-oriented software companies often compare these names to assess relative momentum in artificial intelligence adoption, cloud migration trends, and sector-specific demand. This analysis examines recent performance metrics, business developments, and market positioning to provide a factual framework for evaluating how each stock has responded to evolving conditions in the technology landscape over recent weeks and broader periods.
DDOG Overview and Recent Performance
Datadog, Inc. (DDOG) provides a cloud-based observability and security platform that enables organizations to monitor infrastructure, applications, and logs in real time. In recent market activity, the stock has benefited from strong quarterly results and continued investment in artificial intelligence capabilities. Q1 2026 revenue reached $1,006 million, reflecting 32% year-over-year growth, alongside expansion in high-value customer accounts. Recent developments include the June 2026 acquisition of Adaptive ML to bolster AI research efforts and the launch of over 100 new capabilities aimed at managing AI and security complexity. These factors have contributed to generally positive sentiment, with the stock trading near the upper end of recent ranges amid analyst attention on its execution in observability leadership.
ZS Overview and Recent Performance
Zscaler, Inc. (ZS) delivers a cloud-native zero-trust security platform designed to secure internet and application access for enterprises. Recent market activity shows the company posting solid fiscal Q3 2026 results, with revenue of $850.5 million, up 25% year-over-year, and annual recurring revenue (ARR) also advancing 25%. However, the release of prudent forward guidance led to significant price volatility immediately afterward. In subsequent weeks, the stock demonstrated recovery momentum, including a multi-day advance that lifted prices from post-earnings lows. Sentiment has been shaped by ongoing traction in AI security offerings alongside competitive dynamics in the broader cybersecurity market.
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Head-to-Head Comparison
Datadog (DDOG) and Zscaler (ZS) both serve enterprise customers navigating cloud environments but differ in core focus: DDOG emphasizes unified observability and monitoring across infrastructure and applications, while ZS centers on zero-trust network security and secure access service edge (SASE) architecture. Growth drivers for DDOG include expanding AI observability tools and customer base expansion, whereas ZS growth stems from adoption of its cloud security platform amid rising cyber threats. Recent momentum has favored DDOG with steadier price appreciation, contrasted by ZS’s sharper post-earnings volatility followed by rebound. Risk factors for DDOG center on competition in the monitoring space and execution on new AI features; for ZS, they include guidance sensitivity and rivalry from established cybersecurity providers. Sector exposure overlaps in technology and cloud infrastructure, yet market sentiment currently reflects greater consistency in DDOG’s positioning relative to ZS’s recent fluctuations.
Tickeron AI Verdict
Based on observable factors such as trend consistency in recent weeks, stability following earnings releases, and catalysts including product launches and acquisitions, Tickeron’s AI models currently assign a higher probabilistic preference to Datadog (DDOG) over Zscaler (ZS). This assessment draws from relative price behavior, customer metric expansion, and positioning within the artificial intelligence and observability themes, though outcomes remain subject to ongoing market dynamics and company-specific developments.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DDOG is a Buy and ZS is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DDOG’s FA Score shows that 1 FA rating(s) are green whileZS’s FA Score has 0 green FA rating(s).
- DDOG’s FA Score: 1 green, 4 red.
- ZS’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DDOG’s TA Score shows that 3 TA indicator(s) are bullish while ZS’s TA Score has 4 bullish TA indicator(s).
- DDOG’s TA Score: 3 bullish, 5 bearish.
- ZS’s TA Score: 4 bullish, 5 bearish.
Price Growth
DDOG (@Packaged Software) experienced а +1.91% price change this week, while ZS (@Computer Communications) price change was -5.72% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -2.53%. For the same industry, the average monthly price growth was +2.62%, and the average quarterly price growth was -9.13%.
The average weekly price growth across all stocks in the @Computer Communications industry was -4.12%. For the same industry, the average monthly price growth was +3.18%, and the average quarterly price growth was +4.06%.
Reported Earning Dates
DDOG is expected to report earnings on Aug 06, 2026.
ZS is expected to report earnings on Sep 08, 2026.
Industries' Descriptions
@Packaged Software (-2.53% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
@Computer Communications (-4.12% weekly)Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.
| DDOG | ZS | DDOG / ZS | |
| Capitalization | 92.6B | 22.9B | 404% |
| EBITDA | 229M | 144M | 159% |
| Gain YTD | 91.367 | -36.946 | -247% |
| P/E Ratio | 667.28 | N/A | - |
| Revenue | 3.67B | 3.17B | 116% |
| Total Cash | 4.76B | 3.54B | 134% |
| Total Debt | 1.29B | 1.86B | 69% |
DDOG | ZS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 22 | 37 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 96 Overvalued | 52 Fair valued | |
PROFIT vs RISK RATING 1..100 | 41 | 100 | |
SMR RATING 1..100 | 88 | 93 | |
PRICE GROWTH RATING 1..100 | 35 | 59 | |
P/E GROWTH RATING 1..100 | 7 | 100 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ZS's Valuation (52) in the Packaged Software industry is somewhat better than the same rating for DDOG (96) in the null industry. This means that ZS’s stock grew somewhat faster than DDOG’s over the last 12 months.
DDOG's Profit vs Risk Rating (41) in the null industry is somewhat better than the same rating for ZS (100) in the Packaged Software industry. This means that DDOG’s stock grew somewhat faster than ZS’s over the last 12 months.
DDOG's SMR Rating (88) in the null industry is in the same range as ZS (93) in the Packaged Software industry. This means that DDOG’s stock grew similarly to ZS’s over the last 12 months.
DDOG's Price Growth Rating (35) in the null industry is in the same range as ZS (59) in the Packaged Software industry. This means that DDOG’s stock grew similarly to ZS’s over the last 12 months.
DDOG's P/E Growth Rating (7) in the null industry is significantly better than the same rating for ZS (100) in the Packaged Software industry. This means that DDOG’s stock grew significantly faster than ZS’s over the last 12 months.
| DDOG | ZS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 57% | N/A |
| Stochastic ODDS (%) | 1 day ago 78% | 1 day ago 82% |
| Momentum ODDS (%) | 1 day ago 82% | 1 day ago 83% |
| MACD ODDS (%) | 1 day ago 83% | 1 day ago 84% |
| TrendWeek ODDS (%) | 1 day ago 80% | 1 day ago 79% |
| TrendMonth ODDS (%) | 1 day ago 75% | 1 day ago 79% |
| Advances ODDS (%) | 5 days ago 77% | 12 days ago 76% |
| Declines ODDS (%) | 21 days ago 76% | 27 days ago 79% |
| BollingerBands ODDS (%) | 1 day ago 59% | 1 day ago 79% |
| Aroon ODDS (%) | 1 day ago 90% | 1 day ago 83% |
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DDOG and
Correlation & Price change
A.I.dvisor indicates that over the last year, DDOG has been loosely correlated with COIN. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if DDOG jumps, then COIN could also see price increases.
| Ticker / NAME | Correlation To DDOG | 1D Price Change % | ||
|---|---|---|---|---|
| DDOG | 100% | +1.05% | ||
| COIN - DDOG | 63% Loosely correlated | -1.07% | ||
| CLSK - DDOG | 60% Loosely correlated | -3.81% | ||
| CRWD - DDOG | 58% Loosely correlated | +0.39% | ||
| NET - DDOG | 58% Loosely correlated | +0.42% | ||
| ZS - DDOG | 58% Loosely correlated | +1.83% | ||
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