Datadog stock rises following Metaplane acquisition
Investing.com -- Shares of Datadog Inc (NASDAQ:DDOG) climbed 3.9% in premarket trading after the company announced the acquisition of Metaplane, an end-to-end data observability platform. This strategic move is aimed at enhancing Datadog’s current monitoring and security capabilities for cloud applications, by integrating advanced machine learning-powered monitoring and column-level lineage.
The acquisition is seen as a response to the growing need for reliable data as businesses increasingly rely on AI and platforms such as Snowflake (NYSE:SNOW) and Databricks. Datadog’s expansion into data observability with Metaplane is set to provide companies with the tools necessary to monitor their data stacks more effectively, detecting and resolving data quality issues.
Datadog’s VP of Product, Michael Whetten, emphasized the importance of observability for data teams, noting the complexities involved in managing business-critical workflows and the deployment of AI applications. "By unifying observability across applications and data, Datadog will help organizations build reliable AI systems," said Whetten.
Kevin Hu, co-founder and CEO of Metaplane, also commented on the merger’s potential to bring data and software teams closer, stating, "Joining forces with Datadog enables us to bring data observability to tens of thousands more companies."
The market’s positive response to the acquisition reflects confidence in Datadog’s strategy to broaden its product offerings and address the critical area of data trustworthiness. Investors appear to be optimistic about the company’s direction, as it aims to empower data teams to have a more significant impact across their organizations and the complete data stack.
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