'Dynamite Company': Jim Cramer Says This Tech Giant, Which Serves Microsoft, IBM, AWS, Is 'Expensive, But They Really Know What They're Doing'

In a recent segment of CNBC’s “Mad Money,” Jim Cramer has given his seal of approval to Datadog Inc. DDOG, describing the tech firm as a “dynamite company.”

What Happened: On Monday, CNBC reported Cramer’s positive stance on Datadog, despite the company’s lofty valuation. Answering a viewer’s question, he pointed to the company’s operational strength and solid prospects.

"I think it is a dynamite company, and it is a buy. It is expensive, but they really know what they're doing,” he noted.

Datadog is a U.S.-based company offering observability services for cloud-based applications at scale. With the rising adoption of cloud technology, Datadog experienced rapid growth and broadened its range of products to encompass various service providers such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Red Hat OpenShift, VMware, and OpenStack.

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Why It Matters: Earlier this month, 18 financial analysts offered a range of opinions on Datadog, from bullish to bearish stances. The analysts set an average 12-month price target of $147.44 for the stock, marking a significant increase from the previous target of $126.33.

Additionally, there was an 18.08% increase in Datadog’s short percent of the float. The company reported 11.77 million shares sold short, which is 4.18% of all shares available for trading. The data suggested it would take traders roughly 1.81 days to cover their short positions.

Price Action: The stock’s recent performance has shown resilience, with a closing price of $120.87 on Monday. This follows a slight increase from the previous close of $120.42, with the stock fluctuating between a 52-week high of $138.61 and a low of $62.597.

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