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These 2 Cloud Computing Stocks Are Soaring Skyward | The Motley Fool

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AccessibilityLog InHelpJoin The Motley FoolAccessibility MenuJoin Over Half a Million Premium Members And Get More In-Depth Stock Guidance and ResearchBy Dan Caplinger–Nov 7, 2023 at 8:51AMMarket Cap$26BToday's Change(-3.04%)&nbsp;-$2.49Current&nbsp;Price$79.55Price as of November 6, 2023, 4:00 p.m. ETYou’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn MoreThe stock market looked poised to give up a bit of ground on Tuesday morning, consolidating some big gains over the past week. Recent government data has answered some lingering questions about the economy, and the Federal Reserve's decision to leave interest rates unchanged has restored some confidence in the future. Investors can therefore refocus their attention on all the quarterly results that companies are reporting right now.Cloud computing stocks have experienced a lot of volatility in 2023, as excitement about artificial intelligence (AI) has had to fight with the financial realities of many clients pulling back on their IT spending. However, the latest results from Datadog and Alteryx show that there's still plenty of room for strong tech companies to stand out from the crowd. Here's what you need to know about the latest results from these two cloud players.Shares of Datadog soared more than 20% in premarket trading Tuesday morning. The provider of cloud security and monitoring software reported third-quarter financial results that restored confidence in the company's ability to generate robust growth.Datadog saw revenue rise 25% year over year in the third quarter, coming in at $548 million. Adjusted net income almost doubled from year-ago levels to $158 million, which worked out to $0.45 per share. Customers continued to adopt Datadog's software platform, with the tech company reporting a 20% rise in clients spending $100,000 or more annually to 3,130.In addition, investors liked the guidance that Datadog gave for the rest of the year. The software provider sees fourth-quarter sales of between $564 million and $568 million, with adjusted earnings of between $0.42 and $0.44 per share. That would help wrap up 2023 with revenue slightly above $2.1 billion and earnings of $1.52 to $1.54 per share.Co-founder/CEO Olivier Pomel pointed to solid bookings of new business as highlights in Datadog's business during the period. With so many businesses needing help managing their security and operations needs in order to help software developers make the most of current cutting-edge technology, Datadog is optimistic that the future remains bright.Alteryx also gave investors good news Tuesday morning, as the stock climbed 19% in the premarket session. The provider of analytics automation services reported third-quarter results that topped its previous outlook and demonstrated the success of its strategic moves to embrace AI.Alteryx's numbers weren't hugely impressive by all accounts, but they still managed to give shareholders more optimism about the future. Revenue for the third quarter was $232 million, up 8% year over year. Adjusted net income of $20 million reversed a modest year-earlier loss and worked out to $0.29 per share, which was better than most of those following the cloud computing stock had anticipated.Alteryx was particularly pleased with how other key business metrics fared. With $914 million in annualized recurring revenue at the end of September, Alteryx liked the 21% year-over-year growth that should fuel future sales for years to come. Current customers also kept boosting their spending on the platform, with a dollar-based net expansion rate reaching 119%.Best of all, Alteryx sees year-over-year revenue growth accelerating slightly in the fourth quarter to a pace of 11% to 13%, with further gains in annualized recurring revenue. A quarterly adjusted profit of $1.10 to $1.17 per share would also be highly welcome, as it would pull Alteryx's bottom line for the year back into the black and build valuable momentum for 2024.Get Started NowWhy Did DataDog Stock Fall 17% in August?5 Best Stocks to Buy Now to Get Richer From the Stock Market Sell-OffHere's Why Datadog Stock Climbed 34% in the First Half of 2023Can You Still Buy the Nasdaq's Best-Performing May Stocks?Why Did Datadog Stock Climb 10% in February?Market-beating stocks from our award-winning analyst team.Stock Advisor Returns488%&nbsp;S&amp;P 500 Returns126%Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/07/2023.Discounted offers are only available to new members. Stock Advisor list price is $199 per year.Cumulative Growth of a $10,000 Investment in Stock AdvisorCalculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.View Premium ServicesCurrent

AccessibilityLog InHelpJoin The Motley FoolAccessibility MenuJoin Over Half a Million Premium Members And Get More In-Depth Stock Guidance and ResearchBy Dan Caplinger–Nov 7, 2023 at 8:51AMMarket Cap$26BToday's Change(-3.04%)&nbsp;-$2.49Current&nbsp;Price$79.55Price as of November 6, 2023, 4:00 p.m. ETYou’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn MoreThe stock market looked poised...

These 2 Cloud Computing Stocks Are Soaring Skyward | The Motley Fool

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