Does Our Portfolio Need Some Datadog Stock?

If software eats the world, then solutions that help keep coexisting software applications running smoothly should be great pick-and-shovel plays. That pretty much sums up the appeal of application performance monitoring – or APM – which is enjoying a great deal of growth and attention since Cisco (CSCO) stepped in and acquired the leader in this space – Splunk (SPLK).

Our piece on 5 Application Performance Monitoring Stocks looked at how major players in this place often move around Gartner’s Magic quadrant such that leadership can be lost as quickly as it’s been gained. That’s why we often use revenue as a proxy for market share captured. In 2022, Splunk generated the most revenue of the five companies we looked at with Datadog (DDOG) in second place.

Our follow-up piece on Datadog vs Dynatrace vs Splunk: The Best Stock Is? concluded that Datadog was the best way to play the APM opportunity, but we already placed our bets on Splunk. Now that Splunk will likely be acquired by Cis