Datadog Shares Skyrocket as Microsoft Remarks Ignite Hopes for Accelerated Growth Surge

Datadog Inc.’s shares surged by 14% during midday trading on Wednesday, following commentary from Microsoft Corp. about its Azure cloud computing business. Datadog is a monitoring and security platform that integrates with various cloud platforms including Microsoft Azure, Amazon Web Services and Google Cloud platform, among others. The surge in Datadog’s shares can be attributed to the positive outlook generated by MSFT’s management emphasizing the second half of the year and a belief that this will lead to an acceleration in growth of Datadog’s business.

Bernstein analyst Peter Weed noted that Datadog’s rally following Microsoft’s said commentary and believes that it is an indication of a future acceleration in the company’s growth. In his opinion, this acceleration in growth for Datadog will be driven by the pull-through effect of later-in-the-year reacceleration. Additionally, he believes that Inc.’s Thursday afternoon results could offer “further confirmation of the rest-of-2023 setup.”

The Future of Datadog and Microsoft’s Azure Cloud Computing

Datadog’s monitoring and security platform have become increasingly popular among businesses looking to gain visibility across their cloud infrastructure, including cloud computing services like Microsoft’s Azure, AWS, and Google Cloud Platform. This popularity has contributed to the surge in Datadog’s stock as businesses continue to rely more heavily on cloud computing services.

Microsoft recently reported that Azure’s revenue increased 51% year over year in the latest fiscal quarter, signaling strong growth in cloud computing. Moreover, Microsoft’s management team expects Azure’s growth to further accelerate throughout the rest of the year, which is good news for Datadog business as well. Datadog’s monitoring and security platform is designed to integrate with Azure’s cloud computing services, which positions Datadog to benefit from Microsoft’s continued growth in Azure’s cloud computing services.

According to Peter Weed of Bernstein, Datadog’s growth opportunities also involve the potential to expand its reach in enterprise-scale businesses by winning over more of Microsoft’s Azure customers. Considering Azure’s popularity, Datadog’s growth potential is significant. Furthermore, as more and more businesses continue to rely on cloud computing services, Datadog is well-positioned to capture a larger share of the market.

The Benefits of Datadog’s Monitoring and Security Platform

Datadog’s monitoring and security platform provides businesses with numerous capabilities. For instance, businesses can use the platform to monitor their cloud infrastructure and alert IT personnel when they run into any issues. Moreover, the platform offers businesses visibility into cloud server performance, log management, and security metrics. This visibility provides IT teams with greater control over their cloud operations, allowing them to optimize performance and make more informed decisions when it comes to IT infrastructure.

Datadog’s platform is also designed to integrate with hundreds of other cloud services, including Microsoft’s Azure, which makes it easy for IT teams to manage their entire infrastructure from a single platform. This ease-of-use and scalability offered by Datadog’s monitoring and security platform make it an ideal choice for businesses looking to simplify their IT operations while simultaneously bolstering their security measures.


Datadog’s stock rally following Microsoft’s comments about Azure’s cloud computing services is a positive sign of the company’s growth prospects. Datadog’s monitoring and security platform’s popularity and integration capabilities with Azure’s cloud services position the company to take advantage of Microsoft’s continued growth in the cloud computing market. Datadog’s platform’s scalability, ease-of-use, and integration capabilities make it an ideal choice for businesses looking to simplify their IT operations while simultaneously enhancing their security measures.


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