Billionaire Philippe Laffont is Selling These 5 Stocks

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In this article, we discuss the 5 stocks billionaire Philippe Laffont is selling. If you want to read our detailed analysis of Laffont’s history, investment philosophy, and hedge fund performance, go directly to Billionaire Philippe Laffont is Selling These 10 Stocks.

5. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 62

Percentage Decline in Stake: 100%

Datadog, Inc. (NASDAQ:DDOG) is a technology business that monitors databases and servers using a cloud-based data analytics platform. Billionaire Philippe Laffont added Datadog, Inc. (NASDAQ:DDOG) to his portfolio in the third quarter of 2019. But his fund sold all the shares of the company in the third quarter of 2021.

In its Q3 2021 investor letter, Artisan Global Discovery Fund cited Datadog, Inc. (NASDAQ: DDOG) and detailed its position on the company. Here is what the fund said:

“In addition to trimming our position in Atlassian, we also pared our exposure to Datadog. Datadog is a leading provider of monitoring and analytics for cloud-based applications. Software has become central to how organizations deliver differentiated products and user experiences and optimize business processes—fueling the disruption taking place across nearly every industry. The success of this digital transformation trend is increasingly tied to quality and performance—in turn, driving strong secular demand for IT infrastructure and application monitoring. Datadog’s platform— which integrates and automates infrastructure monitoring, application performance monitoring and log management—provides real-time observability of its customers’ entire technology stacks and is built to address the scale, complexity and dynamic nature of the modern cloud era. Datadog’s solutions fill a void left by legacy tools built for on-premise IT infrastructures, and the company is well positioned to exploit an underpenetrated, large addressable market. The company has been firing on all cylinders recently, adding 1,000 or more new customers each quarter (~600 pre-pandemic) and growing its free cash flow margin by 800 basis points year-over-year in Q2. Additionally, the integration of nine different products into a single platform has enabled the company to successfully cross-sell products to existing customers. While we believe Datadog’s low-touch, landand-expand distribution model positions the company well to capitalize on the continued shift to the cloud, we trimmed our position as shares approached our estimate of private market value.”

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