I’m eyeing two potential late-March buys: The Trade Desk (TTD) and Datadog (DDOG). Both are high-growth tech plays, but each comes with its own set of strengths—and red flags.

So, is it time to buy, or should we let these two marinate a little longer? Let’s break it down.

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The Trade Desk (TTD): The Smarter Way to Advertise?

What It Does

The Trade Desk helps brands and ad agencies run automated, data-driven campaigns across digital channels. Unlike Google or Meta, TTD doesn’t own ad inventory—making it the largest independent demand-side platform (DSP). That’s a big deal.

Why I Like It

✅ No Conflict of Interest – Since TTD doesn’t own ad space, it has no incentive to steer advertisers toward specific content (unlike Google, which obviously favors YouTube and Search ads).
✅ Strong Growth – Quarterly revenue is up 22.3% year-over-year (YoY), and earnings growth hit a ridiculous 87.2% YoY.
✅ Massive Revenue Growth – The numbers speak for themselves:

• 2023 Revenue: $2.44B
• 2022 Revenue: $1.94B
• 2021 Revenue: $1.57B
• 2020 Revenue: $1.19B

The Drawbacks

🚩 Expensive Valuation – At a Forward P/E of 49.26 and a Price/Sales ratio of 11.23, this stock is anything but cheap.
🚩 Macro Risks – If ad spending slows due to economic uncertainty, even a strong company like TTD could take a hit.

Final Thought on TTD

TTD has a unique market position and killer growth metrics. But at 49x forward earnings, I’d prefer to wait for a pullback—or at least some consolidation—before going in big.

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Datadog (DDOG): A Must-Have for IT Monitoring?

What It Does

Datadog makes observability software, helping businesses monitor and manage IT infrastructure in real time. With companies running increasingly complex cloud environments, monitoring solutions like DDOG’s are becoming essential.

Why I Like It

✅ Customer Growth & Retention – Datadog now has 30,000 customers (up 9% YoY), and revenue retention is near 120%—meaning existing customers keep spending more.
✅ Strong Revenue & Earnings – Q4 revenue jumped 25% to $738M, while earnings climbed 11% to $0.49 per share.
✅ Expanding Product Portfolio – Datadog keeps launching new tools, making it harder for customers to switch to competitors.

The Drawbacks

🚩 Valuation Still Stings – A Price/Sales ratio of 13.26 isn’t for the faint of heart.
🚩 PEG Ratio (5yr expected: 1.57) – A reasonable PEG would be 1.0 or less, so DDOG isn’t screaming “bargain” right now.

Final Thought on DDOG

It’s a strong long-term player in cloud observability, but at this price, I’d prefer to see either (1) stronger revenue acceleration or (2) a price dip before going heavy on a position.

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Verdict: Which One Do I Buy?

If I had to pick one today, I’d lean slightly toward TTD because of its superior earnings growth and ad industry positioning. But neither stock looks like an absolute steal right now.

So, what’s the plan? Patience. If either dips on short-term volatility, I’ll be ready. If not, I’ll keep them on my watchlist for a better entry point.

What do you think—would you buy TTD, DDOG, or neither right now? Drop your thoughts in the comments.

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