It’s only been a few days since Datadog’s initial public offering, but the company has already made a splash.
After going public on Thursday at $27 per share, the company’s stock went as high as $41 per share. Currently, Datadog’s market cap sits at around $10.4 billion.
Datadog is a software platform for monitoring and analyzing cloud data. It’s the fourth cloud software company in to achieve a market cap of $10 billion after going public in 2019 — the other companies include Zoom, Slack and Crowdstrike.
Fourteen cloud software companies have gone public and reached a $10B market cap since 2012. However, 2019 is the year with the most companies to reach this milestone. This could speak towards a larger trend of investors looking to buy stock in cloud software companies, or the value of profitable tech companies as a whole.
Cisco reportedly offered over $7 billion to acquire Datadog before its IPO, according to Bloomberg. The report says that Datadog turned the offer down, citing that the company may be worth more after its IPO. With Datadog’s current valuation above $10 billion, it seems like Datadog was right.
