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DDOG vs ZS
Which Stock Would AI Choose? Datadog (DDOG) vs. Zscaler (ZS) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: DDOG is the favored ticker in this comparison, reflecting stronger trend consistency, revenue acceleration, and clearer AI-driven catalysts relative to ZS.
- DDOG (Datadog) has delivered reaccelerating revenue growth and sharply upgraded guidance, sending the stock toward record levels on surging AI-native demand.
- ZS (Zscaler) continues to grow revenue above 20%, but investors have reacted negatively to projected growth deceleration and recent sales-leadership turnover.
- The two companies operate in adjacent but distinct markets: observability and infrastructure monitoring versus cloud security and Zero Trust networking.
- Relative performance has diverged, with DDOG outperforming ZS on both growth momentum and market sentiment.
- For deeper coverage of these names, explore DDOG Major News, DDOG Today's Price Move, ZS Major News, and ZS Today's Price Move.
- To see which automated strategies are currently favored for these and thousands of other tickers, visit the curated Trending AI Robots page.
Introduction
Datadog (DDOG) and Zscaler (ZS) are two prominent cloud-software companies frequently grouped together in the enterprise technology universe, yet their business models and recent market trajectories have diverged meaningfully. Datadog sells an observability and security platform that monitors cloud applications and infrastructure, while Zscaler provides cloud-native security built around a Zero Trust architecture. Growth-oriented technology investors and traders evaluating relative performance, sector positioning, and AI-related catalysts may find this stock comparison useful for assessing which name currently offers the more consistent trend and stronger market positioning.
DDOG Overview and Recent Performance
DDOG, or Datadog, operates an observability and security platform that lets developers and IT teams monitor cloud applications and infrastructure in real time. The company uses a consumption-based pricing model, meaning revenue scales with customer usage rather than fixed subscriptions. Recent market activity has been notably strong. In its latest reported quarter, Datadog grew revenue roughly 32% year over year and beat analyst estimates, while raising its full-year revenue outlook. Management highlighted broad-based demand, including a fast-expanding AI-native customer cohort and large contracts with leading AI research organizations. The stock rallied sharply on the results, with multiple analysts lifting price targets. In subsequent weeks, Datadog has sustained momentum on additional product announcements and continued AI-related tailwinds, with its share price trading near multi-year highs. Elevated valuation multiples remain the primary investor concern.
ZS Overview and Recent Performance
ZS, or Zscaler, is a cloud-security company whose Zero Trust Exchange platform secures users, workloads, and devices by routing traffic through a cloud-based architecture rather than traditional on-premises networks. The company has continued to deliver solid top-line growth, with recent quarterly revenue rising more than 20% year over year and annual recurring revenue (ARR, the annualized value of subscription contracts) expanding at a similar pace. Despite these results, the stock has experienced a sharp selloff in recent weeks. The negative reaction stemmed largely from guidance implying a meaningful deceleration in growth for the coming fiscal year, as well as the departure of two senior sales leaders, which raised questions about near-term execution. Profitability has improved but remains modest on a net basis. Zscaler's long-term story centers on Zero Trust adoption and AI security, yet sentiment has cooled as investors weigh slowing growth against ongoing investment.
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Head-to-Head Comparison
The clearest contrast between these two names is the direction of their growth narratives. DDOG has seen revenue growth reaccelerate, with AI-native customers acting as a tailwind rather than a disruption to its consumption-based model. Management's upgraded guidance and strong bookings suggest sustained demand. ZS, by contrast, is still growing well above 20%, but its outlook points to deceleration into the mid-teens, and investor sentiment has been pressured by sales-leadership turnover and a tempered view of new customer acquisition. On risk factors, Datadog carries a far richer valuation, leaving less margin for error, while Zscaler faces execution and competitive-platform risks. Both benefit from cloud migration and AI adoption, but Datadog's positioning across AI training and inference workloads currently appears more aligned with investor enthusiasm than Zscaler's cybersecurity-driven story. Market sentiment, momentum, and guidance trajectory currently favor Datadog.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative momentum, catalyst quality, and stability of the growth outlook, Tickeron's AI would likely favor DDOG over ZS in the current environment. Datadog's reaccelerating revenue, upgraded guidance, and strong AI-native demand provide a more consistent uptrend and clearer positive catalysts. Zscaler, while fundamentally solid, faces near-term execution uncertainty and a decelerating growth trajectory that has weighed on its relative performance. This assessment reflects a probabilistic view of current conditions rather than a definitive prediction of future results.
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 Hold and ZS is a Hold.
DDOG in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 30, 2026
DDOG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 33 of 40 cases where DDOG's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 82%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for DDOG crossed bullishly above the 50-day moving average on September 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 15 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 80%.
Following a +4.14% 3-day Advance, the price is estimated to grow further. Considering data from situations where DDOG advanced for three days, in 235 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 144 of 196 cases where DDOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Bearish Trend Analysis
The 10-day RSI Indicator for DDOG moved out of overbought territory on October 13, 2026. 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 31 similar instances where the indicator moved out of overbought territory. In 19 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 61%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 45 of 56 cases where DDOG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DDOG as a result. In 59 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 75%.
The Moving Average Convergence Divergence Histogram (MACD) for DDOG turned negative on October 15, 2026. 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 46 similar instances when the indicator turned negative. In 31 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.
DDOG moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 35 (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 Price Growth Rating for this company is 43 (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 56 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 84 (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 100 (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 (17.768) is normal, around the industry mean (-1.586). DDOG's P/E Ratio (432.200) is considerably higher than the industry average of (15.399). Projected Growth (PEG Ratio) (1.362) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.073) among similar stocks. P/S Ratio (21.368) is also within normal values, averaging (70.854).
Momentum Indicator for ZS turns positive, indicating new upward trend
ZS saw its Momentum Indicator move above the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In 67 of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for ZS just turned positive on October 22, 2026. Looking at past instances where ZS's MACD turned positive, the stock continued to rise in 38 of 46 cases over the following month. The odds of a continued upward trend are 83%.
Following a +9.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in 260 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 182 of 230 cases where ZS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 79%.
Bearish Trend Analysis
The 10-day RSI Indicator for ZS moved out of overbought territory on October 29, 2026. 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 36 similar instances where the indicator moved out of overbought territory. In 28 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 52 cases where ZS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.
ZS broke above its upper Bollinger Band on October 23, 2026. 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (14.044) is normal, around the industry mean (16.752). ZS has a moderately low P/E Ratio (-573.820) as compared to the industry average of (58.881). Projected Growth (PEG Ratio) (2.043) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.269) among similar stocks. P/S Ratio (9.158) is also within normal values, averaging (103.889).
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. ZS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 92 (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 PE Growth Rating for this company is 97 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZS’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 91, placing this stock worse than average.
DDOG | ZS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 100 Overvalued | 2 Undervalued | |
PROFIT vs RISK RATING 1..100 | 56 | 100 | |
SMR RATING 1..100 | 84 | 92 | |
PRICE GROWTH RATING 1..100 | 43 | 36 | |
P/E GROWTH RATING 1..100 | 35 | 97 | |
SEASONALITY SCORE 1..100 | n/a | 65 |
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 (2) in the Packaged Software industry is significantly better than the same rating for DDOG (100) in the null industry. This means that ZS’s stock grew significantly faster than DDOG’s over the last 12 months.
DDOG's Profit vs Risk Rating (56) 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 (84) in the null industry is in the same range as ZS (92) in the Packaged Software industry. This means that DDOG’s stock grew similarly to ZS’s over the last 12 months.
ZS's Price Growth Rating (36) in the Packaged Software industry is in the same range as DDOG (43) in the null industry. This means that ZS’s stock grew similarly to DDOG’s over the last 12 months.
DDOG's P/E Growth Rating (35) in the null industry is somewhat better than the same rating for ZS (97) in the Packaged Software industry. This means that DDOG’s stock grew somewhat faster than ZS’s over the last 12 months.
| DDOG | ZS | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 61% | 4 days ago 78% |
| Stochastic ODDS (%) | 4 days ago 80% | 4 days ago 83% |
| Momentum ODDS (%) | 4 days ago 75% | 4 days ago 85% |
| MACD ODDS (%) | 4 days ago 67% | 4 days ago 83% |
| TrendWeek ODDS (%) | 4 days ago 78% | 4 days ago 78% |
| TrendMonth ODDS (%) | 4 days ago 77% | 4 days ago 80% |
| Advances ODDS (%) | 7 days ago 75% | 8 days ago 75% |
| Declines ODDS (%) | 4 days ago 79% | 4 days ago 81% |
| BollingerBands ODDS (%) | 4 days ago 82% | 4 days ago 83% |
| Aroon ODDS (%) | 4 days ago 73% | 4 days ago 79% |
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 overvalued. 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 0 FA rating(s) are green while ZS’s FA Score has 1 green FA rating(s).
- DDOG’s FA Score: 0 green, 5 red.
- ZS’s FA Score: 1 green, 4 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 4 TA indicator(s) are bullish while ZS’s TA Score has 4 bullish TA indicator(s).
- DDOG’s TA Score: 4 bullish, 6 bearish.
- ZS’s TA Score: 4 bullish, 4 bearish.
Price Growth
DDOG (@Packaged Software) experienced а -12.75% price change this week, while ZS (@Computer Communications) price change was -14.08% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -1.87%. For the same industry, the average monthly price growth was -4.33%, and the average quarterly price growth was -1.18%.
The average weekly price growth across all stocks in the @Computer Communications industry was -5.29%. For the same industry, the average monthly price growth was -11.81%, and the average quarterly price growth was -4.59%.
Reported Earning Dates
DDOG is expected to report earnings on Nov 04, 2026.
ZS is expected to report earnings on Nov 24, 2026.
Industries' Descriptions
@Packaged Software (-1.87% 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 (-5.29% 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.
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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% | -11.50% | ||
| COIN - DDOG | 63% Loosely correlated | -10.62% | ||
| CLSK - DDOG | 60% Loosely correlated | -6.46% | ||
| CRWD - DDOG | 58% Loosely correlated | -4.10% | ||
| NET - DDOG | 58% Loosely correlated | -9.54% | ||
| ZS - DDOG | 58% Loosely correlated | -4.03% | ||
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