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Is DDOG (Datadog, Inc.) Halal or Haram?

NASDAQ Global SelectTechnologySoftware - Application$46.55B2026-04-29
DDOG is Halal4/4 screens passed

Datadog passes all AAOIFI shariah screens with flying colors, making it a fully compliant option for Muslim investors. Its debt-to-market cap ratio is exceptionally low at just 3.3%, well below the 33% threshold, while its interest income is non-existent at 0.00%. Furthermore, its cash and securities sit comfortably at 9.6% of its market cap, reflecting a clean and efficient balance sheet.

Price Chart (5D)

$140.55+13.68 (+10.78%)
2026-05-012026-04-24

DDOG — Last 7 Days

DateOpenHighLowCloseVolumeChange
2026-05-01138.50142.75135.38140.536.2M+1.47%
2026-04-30133.05137.00128.00132.197.2M-0.65%
2026-04-29130.35134.63128.68133.983.5M+2.78%
2026-04-28133.40136.00131.06131.553.3M-1.39%
2026-04-27129.40133.58128.00132.663.7M+2.52%
2026-04-24128.13129.61124.32129.483.2M+1.05%
2026-04-23127.83130.00124.45127.866.2M+0.02%

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Shariah Screening Details for DDOG

Business Activity

Permissible

Datadog's business of providing cloud monitoring, security, and analytics software is permissible under Islamic principles as it involves no haram activities.

Debt / Market Cap

3.30%

Debt: $1.54BThreshold: ≤33%

Interest Income

0.00%

Interest: $0Threshold: ≤5%

Cash & Securities

9.61%

Cash: $4.47BThreshold: ≤33%

About Datadog, Inc. (DDOG)

Datadog, Inc. operates a leading cloud-based SaaS platform that provides monitoring, security, and analytics tools for developers and IT teams. Their software automates infrastructure and application performance monitoring, giving enterprises real-time visibility into their complex technology stacks.

For Muslim investors, Datadog represents a solid Halal investment opportunity within the fast-growing cloud technology sector. The stock successfully passes all four AAOIFI shariah screens, meaning both its core business activities and financial structures align strictly with Islamic finance principles.

From an Islamic finance perspective, Datadog boasts an incredibly robust and clean balance sheet. The company carries minimal leverage with a debt-to-market cap ratio of just 3.3%, and generates zero non-permissible interest income, making it an exemplary tech stock for halal portfolios.

Since there are no major scholarly debates regarding cloud monitoring software, investors can hold this stock with confidence. However, as with any high-growth tech company, investors should periodically monitor its cash reserves and debt levels in case the company pursues large acquisitions in the future.

CEO

Olivier Pomel

Employees

8,100

IPO Date

2019-09-19

Headquarters

New York City, NY, US

DDOG Key Financial Statistics

Revenue

$3.43B

Net Income

$107.7M

EPS (Diluted)

$0.30

Stock Price

131.55

Beta

1.29

52-Week Range

98.01-201.69

Total Debt

$1.54B

Total Equity

$3.73B

Current Ratio

3.38

DDOG Financial Health & Profitability

Profit Margins

Gross Margin80.0%
Operating Margin-1.3%
Net Margin3.1%

Revenue Growth (YoY)

+27.7%

Prior year: $2.68B

Net Debt

$1.13B

Cash: $401.3M — Debt: $1.54B

R&D Spending

$1.55B

% of Revenue

45.2%

Frequently Asked Questions About DDOG

Is DDOG (Datadog, Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, DDOG is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (3.30% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (9.61% vs ≤33% threshold).
What does Datadog, Inc. do?
Datadog, Inc. operates a leading cloud-based SaaS platform that provides monitoring, security, and analytics tools for developers and IT teams. Their software automates infrastructure and application performance monitoring, giving enterprises real-time visibility into their complex technology stacks. For Muslim investors, Datadog represents a solid Halal investment opportunity within the fast-growing cloud technology sector. The stock successfully passes all four AAOIFI shariah screens, meaning both its core business activities and financial structures align strictly with Islamic finance principles. From an Islamic finance perspective, Datadog boasts an incredibly robust and clean balance sheet. The company carries minimal leverage with a debt-to-market cap ratio of just 3.3%, and generates zero non-permissible interest income, making it an exemplary tech stock for halal portfolios. Since there are no major scholarly debates regarding cloud monitoring software, investors can hold this stock with confidence. However, as with any high-growth tech company, investors should periodically monitor its cash reserves and debt levels in case the company pursues large acquisitions in the future. Datadog, Inc. operates in the Technology sector under the Software - Application industry and is headquartered in New York City, NY, US. The company is led by CEO Olivier Pomel and employs approximately 8,100 people.
What screening criteria were used for DDOG?
DDOG was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. DDOG passed 4 of these 4 screens.
Does DDOG require income purification?
DDOG has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.
When was DDOG last screened?
DDOG was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.

Disclaimer

This shariah compliance assessment for DDOG (Datadog, Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-04-29.

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