Datadog and Honeywell Aerospace Stocks Take Hit Amid Disappointing Guidance
Datadog (DDOG) shares took a significant hit yesterday after its updated guidance implied a forward price-to-earnings ratio of around 100 times. This comes on the heels of the company's non-GAAP EPS growth of 41% Y/Y to $0.65 in the second quarter, with revenue increasing by 36% Y/Y to $1.12 billion.
The firm also raised its 2026 revenue forecast to up to $4.47 billion, but this did not sit well with investors who are concerned about the company's valuation. At around 40% growth, the PEG is over two times, which may be a deterrent for some.
Honeywell Aerospace (HONA), a recent spin-off from Honeywell (HON), also saw its stock fall by 23.16%. The company reported non-GAAP EPS of $1.87 in Q2 and revenue growth of 5.4% Y/Y to $4.52 billion.
However, HONA's organic growth for 2026 is expected to be 4% to 5%, which falls short of the previous guidance of 7% to 9%. This news may have contributed to the stock's decline and could potentially lead to further losses in the future.