The stock market jumped on Tuesday, as bank stocks rallied and latest economic data showed that inflation is slowing down.
The consumer price index rose 0.4% for the month of February, putting the annual inflation rate at 6.0%. Economists suggest that the increase was attributable to shelter costs, which accounted for more than 60% of the total.
Overall, S&P 500 was up 1.7% to 3,919, while NASDAQ increased 2.1% to 11,428.
Tweet of the Day
CPI for all items rises 0.4% in February as shelter increases #CPI #BLSdata https://t.co/dJyJeKlXDJ
— BLS-Labor Statistics (@BLS_gov) March 14, 2023
Chart of the Day
Here is the one-year chart of Datadog (DDOG) as of March 1, 2023, when the stock was at $75.
Datadog seems to be the best company in data monitoring and analysis. It helps organization monitor their websites and application. Its dashboards allow users to customize their views and see data by different hosts or devices. Datadog is also approved on the FedRamp marketplace, to do work for U.S. government departments and agencies.
DDOG just lowered its revenue and profit outlook as companies try to cut back on IT spending in a slowing economy. Analysts took 2023 profit estimates down from $1.17 to $1.09 since our last report a quarter ago. Revenue estimates fell back from $2.2 billion to $2.1 billion.
During last year, quarterly profit growth slowed from 300% to 140%, 77% and most recently 30%. Next qtr, analysts expect 0% growth. So DDOG isn’t a rapid grower anymore, but the P/E of 69 is still rich.
DDOG is on the radar for the Growth Portfolio and Aggressive Growth Portfolio.
