DDOG should break-out on earningsI am anticipating DDOG to reverse the trend of having more negative reactions to earnings than positive. If they beat earnings and give good guidance, I see no reason why it would not reach new all-time highs.
It has reached this level before and this earnings event gives the perfect catalyst for a break-out past the resistance. This is an underappreciated software play.
DDOG price target: $150. A potential move from earnings could bring it to $125.
I would suggest playing this through calls or call spreads to control the amount you are risking. You could go long the stock to beef up your software exposure if you are lacking in that area because diversification is an investor's best friend. Calls and call spreads are a good way to dip your toes in stock without risking too much capital in comparison to the overall share price.
