BUZZ-Datadog shares plunge after earnings release due to disappointing fourth quarter outlook

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November 4 - ** Cloud security company Datadog DDOG.O shares plunged 13.5% to $191.10, potentially marking the largest single-day drop in three months

** According to data compiled by London Stock Exchange Group (LSEG), third-quarter revenue rose 35% to $1.2 billion, surpassing the expected $1.15 billion

** Adjusted earnings per share came in at $0.81, also beating the expected $0.65

** However, according to TD Cowen, the company's fourth-quarter revenue outlook of $1.2 billion implies a quarter-on-quarter increase of just $3 million, which is in line with analysts' expectations

** TD Cowen noted that investors are also looking at decreased usage from high-spending customers, as the company added 140 new high-spending customers, compared to 170 in the previous quarter

** Out of 49 analysts, 32 have given an average rating of "Buy", with 14 recommending a "Strong Buy", 2 recommended "Hold", and 1 recommended "Sell"; the median target price is $300 — data compiled by LSEG

** Including intraday swings, the stock has risen 42% so far this year

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