The stock market slid on Wednesday after the Federal Reserve paused rate cuts, leaving interest rates unchanged in its first policy decision of the year.
Overall, S&P 500 fell 0.5% to 6,039, while NASDAQ decreased 0.5% to 19,632.
Tweet of the Day
Here's the NEW Tesla Model Y $TSLA. I'll take a red one with white interior. https://t.co/fULtKsarvO
— David Sharek (@GrowthStockGuy) January 24, 2025
Chart of the Day
Here is the one-year chart of Datadog (DDOG) as of December 30, 2024, when the stock was at $144.
Datadog continues to grow revenue nicely, but profit growth has screeched to a halt. Last quarter, the company delivered revenue growth of 26%, but profits increased just 2%. During the past seven quarters, profits in Earnings Per Share (EPS) have been $0.28, $0.36, $0.45, $0.55, $0.44, $0.43 and most recently $0.46. Notice there was a nice ramp from $0.28 to $0.55, and since then profits have been around $0.45 a share.
Looking forward, profits are expected to be $0.44 and $0.46 in the next two quarters, so analysts expect this flat trend to continue. In addition, the stock has a lofty P/E of 71. So DDOG might hang around this price through 2025.
DDOG was sold from our Growth Portfolio last year.
