Datadog Stock Could See 13% Move Post-Earnings, Options Data Shows

Datadog Inc. (DDOG) is poised for a significant price swing following its upcoming earnings report on August 6, with the options market pricing in a potential move of 13% in either direction. This expectation of high volatility is based on options data compiled by Bloomberg.

Market Expectations

The 13% implied move is derived from the pricing of options contracts and reflects traders' collective bet on the stock's volatility through the earnings announcement. While it does not predict the direction of the price change, it indicates that investors anticipate the results or forward guidance could be a major catalyst for the stock when the company reports before the market opens.

A History of Volatility

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Datadog has a track record of dramatic post-earnings reactions, having exceeded the options market's expectations in three of its last eight announcements. These past movements highlight the potential for significant surprises.

• In May, shares surged 40.9%, dramatically outpacing the 11.5% implied move.
• In a previous November report, the stock climbed 22.3% against an expected 9.4% swing.
• Conversely, shares fell 8.4% following an August announcement, slightly more than the 7.7% move traders had priced in.

However, the company's most recent report in February saw a much more muted reaction. The stock rose just 0.5%, falling well short of the 9.5% move implied by options at the time, underscoring that a large swing is not guaranteed.