☁️ Who Let the $DDOG Out?

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[Week 40 | +2.2% vs. +1.6%]: Cloud stock performance remained strong, increasing 2.2% for the week ending 10/2, outperforming the S&P 500 (+1.6%) by 60 bps. Tech (+1.2%) was an overall drag on S&P performance as the Equal-Weight index (+2.4%) outperformed. Likewise, investors continue to be very optimistic of recent IPOs, bidding $IPO up +2.7% for the week.

SaaS breakouts lead outperformance vs. Tech. SaaS investors were focused on two news-driven breakouts ($TWLO & $DDOG), as well as Payroll/HCM-focused names --$PAYC (+16.9%) & $PCTY (+8.5%).

• $TWLO (+18.5%). Investor Day + positive 3Q pre-announcement. After hosting it's 2020 investor day Thursday 10/1, Twilio posted an SEC filing stating 3Q revenue "will be ahead of the Company’s previously issued guidance of $401 million to $406 million." See Also:Investor Day Deck

• $DDOG (+14.2%). Datadog announces native Azure integration. Full read on the Datadog Blog. Why are investors so excited? The partnership allows new users an easier onboarding process which bypasses the requirement to seek approval for a new third-party tool.

 "increasing an existing Azure budget is often simpler than seeking approval for a new third-party tool" https://t.co/RU8cukN5qt pic.twitter.com/CLUmOSr1Rw— Paul Barnes (@LennyIce) October 4, 2020 

Source: BreakingSaaS.com

Source: BreakingSaaS.com

Source: BreakingSaaS.com

📰 More Cloud News

• $NET (+4.3%). Cloudflare Launches Radar, Sharing the Latest Internet Trends with the World in One Interactive Public Tool

• $WDAY (+1.5%). Buy Workday Stock as a Play in Cloud Financial Software, Citi Says

With blessings of high NRR and low Churn,Thomas