Datadog shares plunge 19.5% on profit-taking after strong earnings

Datadog shares plunged 19.5% in premarket trading Thursday despite strong Q2 earnings that beat expectations on both profit and revenue. Datadog reported EPS of $0.65 versus $0.58 expected, and revenue of $1.12 billion, up 36% year over year, beating the $1.08 billion consensus. It also raised full-year guidance. The decline reflected profit-taking after the stock hit a 52-week high of $292.72. The stock had risen from a 52-week low of $98.01, and 38 analysts raised forecasts before the report. With Nasdaq down 0.4%, the plunge appeared stock-specific rather than sector-wide.