Jim Cramer on Datadog: “There Are Cheap Enterprise Software Stocks, Just Not This One”

Datadog, Inc. (NASDAQ:DDOG) is one of the stocks in focus on Jim Cramer’s game plan. Cramer called the stock “too expensive,” as he remarked:

On Tuesday, we’re back in heavy earnings rotation. We’ve got DuPont, Coca-Cola, CVS Health, AstraZeneca, Datadog, and S&P Global report… Next, we have the tales of powerful AI companies destroying little guys, and this time it’s Datadog and S&P Global. The Dog is the kind of software-as-a-service company that was once loved. Not anymore. Stock’s been nearly cut in half, but it still sells for less than 50 times earnings. But it’s too expensive in this environment. There are cheap enterprise software stocks, just not this one.

Datadog, Inc. (NASDAQ:DDOG) provides an observability and security platform that is designed to monitor cloud applications through infrastructure tracking, log management, and network analysis. A caller inquired about the stock during the January 15 episode, and Cramer replied:

We’re not, we’re going to stay away from these enterprise software companies. They seem to be almost in freefall, and I don’t need to break the fall.

While we acknowledge the risk and potential of DDOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DDOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.