The stock market went up on Wednesday following the Federal Reserve’s decision to hold interest rates steady at 3.75%–4.00%.
Vertiv (VRT) was a standout performer as it jumped 16%, followed by the 6% change recorded by Applied Optoelectronics (AAOI).
Overall, S&P 500 and Nasdaq both grew 0.3% to 7,744 and 26,550, respectively.
Chart of the Day
Here is the one-year chart of Datadog (DDOG) as of October 5, 2026, when the stock was at $276.
Last quarter, the company delivered 41% profit growth on 36% revenue growth, while revenue growth from non-AI customers accelerated. Bookings rose a solid 38%, which indicates to us that revenue could continue to accelerate. Revenue growth has accelerated the past four quarters from 28% to 29%, 32% and now 36%.
Management stated existing customers were running more cloud workloads and adopting more Datadog products, while annualized bookings from new enterprise customers more than doubled year-over-year. AI is creating another growth opportunity, with more than 750 AI customers using Datadog and the number of Model Context Protocol (MCP) tool calls — which allow AI agents to connect with tools — growing more than 22 times since 2025 Q4.
However, management expects next quarter’s revenue growth to slow to ~29% because its largest customer reduced usage, making growth across the rest of the business important to watch.
With a P/E of 108, David Sharek, Founder of School of Hard Stocks, thinks DDOG is currently overvalued. But the stock is back on radar for Growth Portfolio.
