CNBC’s Jim Cramer looked at an enterprise software company Data Dogon Tuesday, saying technology stocks’ gains aren’t over and the company’s success is a sign of good news for peer stocks.
“You had to be curious, examine what Datadog had to say. You couldn’t be dogmatic, trapped in negativity.” Cramer said. “You had to believe in bowling, that is to say in the action of the pin which could come from the strike of the front pin of the technological phalanx.”
Datadog’s stock jumped nearly 30% after its quarterly report Tuesday beat Wall Street profit estimates and the company raised its full-year forecast, bolstering peers like MongoDB And Snowflake. Cramer said the title’s success also boosted well-known partners like Meta, Shopify And ServiceNowas well as tangential technological values.
Datadog creates cloud monitoring and security products for businesses, using generative artificial intelligence. Cramer said companies may be realizing they can’t afford to stay away from spending on artificial intelligence and cybersecurity.
Cloud software companies like Datadog have seen sales slow this year as many customers have taken cost-cutting measures. But the company’s CEO indicated Tuesday that its customers’ optimization efforts could be moderated. Cramer said this change in Datadog’s customer habits could mean fewer problems for other technology and enterprise software companies.
According to Cramer, today’s tech rally indicates that last week’s market gains won’t be short-lived.
“I think last week was a transformative moment for the stock market – I’ve said that every day – and if you haven’t changed your mind to adapt to the new reality, I think “There’s a chance you’ll be left behind,” he said. “Oh, there will be declines – tomorrow, I don’t know – but increasingly, those declines will spur more buying than selling as we approach the end of the year.”
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Meta.