Datadog (DDOG -0.90%) has continually impressed in expanding its relationship with customers. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on May 4, Motley Fool contributor Jamie Louko discusses why he added Datadog to his portfolio and why it might be a stock that investors should keep on their radar.
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Jamie Louko: Datadog, which I bought most recently, is actually one of my higher positions in my portfolio. It makes up about 2% of my portfolio right now. When I buy, I buy a relatively decent chunk because my portfolio as a 19-year-old kid, it's still relatively small. If I'm adding a lot of money pretty rapidly, I can put in a lot of money, invest it all into one or two stocks and it still won't make up a lot of my portfolio just because I'll be adding so much later. When I buy, I usually buy in bigger chunks solely because I can buy in those big chunks, be relatively concentrated right now. But then, maybe in a year or two years, that'll still make up a very small amount of my portfolio because of the cash I'm putting in. But in terms of why I bought Datadog and why I bought this observability platform, I just want to pull up this quote from their fourth quarter transcript for the earnings call. They have tons of products, in the dozens of products, for observability for businesses. What's really important is seeing those customers once they get in. I want to see them expand their relationship with Datadog. This is just been something that Datadog has done amazingly well at. They noted that 33% of their customers are using four plus products, which is up from 22% in Q4 2020. When we're talking about even more engaged customers with six or more products, that number jumped from 10% of customers, which is up from 3% of customers. They're really doing a great job at expanding that relationship with customers, and this is a continual trend. This wasn't just in the fourth quarter that this happened. This has really been taking place basically every single quarter for the past few years, which is why I really like the company. I expect that to continue going into this quarter and for the rest of 2022, but that will for sure be something I'm watching.
