Compare Stocks › AMZN vs DDOG
Amazon.com, Inc. (AMZN) vs Datadog, Inc. (DDOG): Which Is the Better Buy in 2026?
As of 2026-11-01, AMZN is overvalued at $240, with a DCF intrinsic value of $95 and a margin of safety of -152%. DDOG is overvalued at $235, with an intrinsic value of $22 and a margin of safety of -968%. Of the two, AMZN has the wider margin of safety.
AMZN
Amazon.com, Inc.
$240.35
VS
DDOG
Datadog, Inc.
$235.27
Rewards
AMZN
- ★Each dollar of retained earnings has created $5.34 of earning power — management is an exceptional capital allocator.
- ★Trailing P/E of 19.4x is 52% below the historical average of 40.6x — potentially undervalued relative to its own history.
- ★Altman Z-Score of 5.30 indicates very low bankruptcy risk — the company is firmly in the safe zone.
DDOG
- ★Gross margin of 79.5% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 37.3% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $5.16 of earning power — management is an exceptional capital allocator.
Risks
AMZN
- ⚠9 insider sales totaling $18.3M with no purchases in the past 3 months — insiders are reducing their exposure.
DDOG
- ⚠Share count has increased by 10% over the past 4 years, diluting existing shareholders.
- ⚠FCF yield of 1.2% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠23 insider sales totaling $162.4M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →AMZN
DDOG
Valuation
$-11.14B
Free Cash Flow
$1.05B
-0.43%
FCF Yield
1.24%
19.43
Trailing P/E
470.54
22.39
Forward P/E
78.83
Quality & Moat
9.89%
ROIC
0.37%
27.42%
ROE
4.70%
51.37%
Gross Margin
79.54%
1.39
PEG Ratio
1.22
Balance Sheet Safety
0.26
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
0.86
Net Debt / EBITDA
-44.73
0.00%
Dividend Yield
0.00%
AMZN: 4Ties: 1DDOG: 7
AMZNDDOG
Historical Fundamentals
Learn more →AMZN
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
DDOG
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →AMZN
$9.66
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$167.34B
Δ Market Cap
+$1.62T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
DDOG
$71.99
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$340.1M
Δ Market Cap
+$24.48B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →AMZN
152.0% Overvalued
Price is 152.0% above estimated fair value
Current Price: $240.35
Strongly undervalued
Strongly overvalued
Fair Value: $95.38
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
DDOG
967.6% Overvalued
Price is 967.6% above estimated fair value
Current Price: $235.27
Strongly undervalued
Strongly overvalued
Fair Value: $22.04
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →AMZN
Requires positive FCF to compute implied growth rate.
DDOG
What growth rate is the market pricing in at $235?
+60.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +26.2%
The market implies +60.0% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +26.2%, reflecting heavy growth investment.
Economic Moat Score
Learn more →AMZN
51/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
DDOG
49/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
Forensic Accounting
Learn more →AMZN
-2.58
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
DDOG
-2.63
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →AMZN
Insiders 8.8%Institutions 68.8%Retail & Other 22.4%
No. of Institutional Holders7,922
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
DDOG
Insiders 0.6%Institutions 93.3%Retail & Other 6.1%
No. of Institutional Holders1,842
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →AMZN
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
DDOG
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →AMZN
9
Sells (3M)
46
Sells (12M)
Total value (12M): $454.87M
HERRINGTON DOUGLAS J
Officer
$251,500
@ $251.50 · 2026-10-01
HERRINGTON DOUGLAS J
Officer
$254,770
@ $254.77 · 2026-09-01
ZAPOLSKY DAVID A.
Officer
$4.00M
@ $259.52 · 2026-08-24
GARMAN MATTHEW S
Officer
$3.77M
@ $259.06 · 2026-08-21
HERRINGTON DOUGLAS J
Officer
$1.65M
@ $259.01 · 2026-08-21
OLSAVSKY BRIAN T.
Chief Financial Officer
$1.61M
@ $260.31 · 2026-08-21
JASSY ANDREW R.
Chief Executive Officer
$5.18M
@ $259.01 · 2026-08-21
REYNOLDS SHELLEY L
Officer
$606,854
@ $259.01 · 2026-08-21
HERRINGTON DOUGLAS J
Officer
$982,993
@ $262.76 · 2026-08-17
HERRINGTON DOUGLAS J
Officer
$278,390
@ $278.39 · 2026-08-03
BEZOS JEFFREY P
Officer and Director
$346.45M
@ $286.41 · 2026-08-03
HERRINGTON DOUGLAS J
Officer
$239,770
@ $239.77 · 2026-07-01
HERRINGTON DOUGLAS J
Officer
$266,190
@ $266.19 · 2026-06-01
ZAPOLSKY DAVID A.
Officer
$4.12M
@ $266.49 · 2026-05-22
GARMAN MATTHEW S
Officer
$4.07M
@ $263.40 · 2026-05-21
HERRINGTON DOUGLAS J
Officer
$1.67M
@ $262.39 · 2026-05-21
JASSY ANDREW R.
Chief Executive Officer
$5.27M
@ $263.42 · 2026-05-21
REYNOLDS SHELLEY L
Officer
$620,003
@ $262.38 · 2026-05-21
GARMAN MATTHEW S
Officer
$3.01M
@ $262.66 · 2026-05-15
HERRINGTON DOUGLAS J
Officer
$982,602
@ $262.59 · 2026-05-15
HERRINGTON DOUGLAS J
Officer
$7.83M
@ $274.67 · 2026-05-04
JASSY ANDREW R.
Chief Executive Officer
$8.62M
@ $275.00 · 2026-05-04
RUBINSTEIN JONATHAN J
Director
$1.01M
@ $273.02 · 2026-04-30
RUBINSTEIN JONATHAN J
Director
$1.00M
@ $260.00 · 2026-04-24
JASSY ANDREW R.
Chief Executive Officer
$7.91M
@ $255.00 · 2026-04-17
HERRINGTON DOUGLAS J
Officer
$5.02M
@ $245.00 · 2026-04-14
HERRINGTON DOUGLAS J
Officer
$210,500
@ $210.50 · 2026-04-01
HERRINGTON DOUGLAS J
Officer
$204,250
@ $204.25 · 2026-03-02
ZAPOLSKY DAVID A.
Officer
$3.65M
@ $205.40 · 2026-02-24
GARMAN MATTHEW S
Officer
$3.64M
@ $205.22 · 2026-02-23
HERRINGTON DOUGLAS J
Officer
$1.41M
@ $205.82 · 2026-02-23
JASSY ANDREW R.
Chief Executive Officer
$4.08M
@ $205.18 · 2026-02-23
REYNOLDS SHELLEY L
Officer
$554,892
@ $205.90 · 2026-02-23
HERRINGTON DOUGLAS J
Officer
$948,990
@ $198.37 · 2026-02-17
ALEXANDER KEITH BRIAN
Director
$183,492
@ $203.88 · 2026-02-12
HERRINGTON DOUGLAS J
Officer
$208,000
@ $208.00 · 2026-02-11
HERRINGTON DOUGLAS J
Officer
$583,050
@ $233.22 · 2025-12-01
ZAPOLSKY DAVID A.
Officer
$4.56M
@ $220.58 · 2025-11-24
GARMAN MATTHEW S
Officer
$3.85M
@ $216.90 · 2025-11-21
HERRINGTON DOUGLAS J
Officer
$1.48M
@ $216.40 · 2025-11-21
JASSY ANDREW R.
Chief Executive Officer
$4.31M
@ $216.94 · 2025-11-21
REYNOLDS SHELLEY L
Officer
$583,222
@ $216.41 · 2025-11-21
HUTTENLOCHER DANIEL P
Director
$280,317
@ $226.61 · 2025-11-20
HERRINGTON DOUGLAS J
Officer
$1.11M
@ $232.71 · 2025-11-17
ALEXANDER KEITH BRIAN
Director
$209,700
@ $233.00 · 2025-11-17
HERRINGTON DOUGLAS J
Officer
$6.14M
@ $250.58 · 2025-11-03
RUBINSTEIN JONATHAN J
Director
$2.04M
@ $250.03 · 2025-10-31
HERRINGTON DOUGLAS J
Officer
$542,750
@ $217.10 · 2025-10-01
HERRINGTON DOUGLAS J
Officer
$558,725
@ $223.49 · 2025-09-02
ZAPOLSKY DAVID A.
Officer
$4.60M
@ $222.34 · 2025-08-22
GARMAN MATTHEW S
Officer
$3.94M
@ $221.57 · 2025-08-21
HERRINGTON DOUGLAS J
Officer
$1.51M
@ $221.62 · 2025-08-21
OLSAVSKY BRIAN T.
Chief Financial Officer
$3.95M
@ $222.74 · 2025-08-21
JASSY ANDREW R.
Chief Executive Officer
$4.40M
@ $221.58 · 2025-08-21
REYNOLDS SHELLEY L
Officer
$601,755
@ $221.64 · 2025-08-21
HERRINGTON DOUGLAS J
Officer
$1.11M
@ $232.32 · 2025-08-15
HERRINGTON DOUGLAS J
Officer
$542,500
@ $217.00 · 2025-08-01
BEZOS JEFFREY P
Officer and Director
$954.28M
@ $229.72 · 2025-07-24
BEZOS JEFFREY P
Officer and Director
$1.51B
@ $228.34 · 2025-07-22
BEZOS JEFFREY P
Officer and Director
$166.45M
@ $227.02 · 2025-07-15
BEZOS JEFFREY P
Officer and Director
$1.51B
@ $225.21 · 2025-07-14
BEZOS JEFFREY P
Officer and Director
$108.68M
@ $223.99 · 2025-07-09
BEZOS JEFFREY P
Officer and Director
$665.86M
@ $223.86 · 2025-07-07
HERRINGTON DOUGLAS J
Officer
$550,144
@ $220.06 · 2025-07-01
BEZOS JEFFREY P
Officer and Director
$736.68M
@ $221.56 · 2025-06-30
HERRINGTON DOUGLAS J
Officer
$512,450
@ $204.98 · 2025-06-02
ZAPOLSKY DAVID A.
Officer
$4.18M
@ $202.00 · 2025-05-22
GARMAN MATTHEW S
Chief Executive Officer
$4.21M
@ $201.30 · 2025-05-21
HERRINGTON DOUGLAS J
Chief Executive Officer
$1.37M
@ $200.77 · 2025-05-21
OLSAVSKY BRIAN T.
Chief Financial Officer
$3.58M
@ $201.57 · 2025-05-21
JASSY ANDREW R.
Chief Executive Officer
$4.00M
@ $201.30 · 2025-05-21
REYNOLDS SHELLEY L
Officer
$541,129
@ $200.79 · 2025-05-21
HERRINGTON DOUGLAS J
Chief Executive Officer
$980,971
@ $205.05 · 2025-05-15
ALEXANDER KEITH BRIAN
Director
$210,680
@ $210.68 · 2025-05-12
HERRINGTON DOUGLAS J
Officer
$476,675
@ $190.67 · 2025-05-01
HERRINGTON DOUGLAS J
Officer
$469,975
@ $187.99 · 2025-04-01
HERRINGTON DOUGLAS J
Chief Executive Officer
$532,925
@ $213.17 · 2025-03-03
ZAPOLSKY DAVID A.
Officer
$5.47M
@ $218.25 · 2025-02-24
GARMAN MATTHEW S
Officer
$3.36M
@ $220.69 · 2025-02-21
HERRINGTON DOUGLAS J
Officer
$1.36M
@ $222.47 · 2025-02-21
OLSAVSKY BRIAN T.
Chief Financial Officer
$3.26M
@ $223.14 · 2025-02-21
JASSY ANDREW R.
Chief Executive Officer
$4.59M
@ $220.65 · 2025-02-21
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
DDOG
23
Sells (3M)
58
Sells (12M)
Total value (12M): $466.49M
ACOCELLA KERRY
General Counsel
$1.21M
@ $228.85 · 2026-09-14
OBSTLER DAVID M
Chief Financial Officer
$9.10M
@ $227.47 · 2026-09-14
WALTERS SEAN MICHAEL
Officer
$2.59M
@ $221.04 · 2026-09-11
LI YANBING
Officer
$2.81M
@ $221.26 · 2026-09-11
POMEL OLIVIER
Chief Executive Officer
$18.60M
@ $207.86 · 2026-09-08
RICHARDSON JULIE G
Director
$1.19M
@ $212.25 · 2026-09-04
BLITZER ADAM
Chief Operating Officer
$2.58M
@ $214.38 · 2026-09-03
RICHARDSON JULIE G
Director
$1.24M
@ $220.00 · 2026-09-03
ACOCELLA KERRY
General Counsel
$1.56M
@ $212.90 · 2026-09-02
WALTERS SEAN MICHAEL
Officer
$2.89M
@ $212.90 · 2026-09-02
POMEL OLIVIER
Chief Executive Officer
$5.61M
@ $212.90 · 2026-09-02
BLITZER ADAM
Chief Operating Officer
$2.94M
@ $212.90 · 2026-09-02
LE-QUOC ALEXIS T
Chief Technology Officer
$4.64M
@ $212.90 · 2026-09-02
LI YANBING
Officer
$2.39M
@ $212.90 · 2026-09-02
GALLOREESE DAVID
Officer
$1.02M
@ $212.90 · 2026-09-02
OBSTLER DAVID M
Chief Financial Officer
$3.52M
@ $212.90 · 2026-09-02
LE-QUOC ALEXIS T
Chief Technology Officer
$12.24M
@ $227.02 · 2026-09-01
GALLOREESE DAVID
Officer
$230,714
@ $232.81 · 2026-09-01
LE-QUOC ALEXIS T
Chief Technology Officer
$9.88M
@ $228.63 · 2026-08-24
POMEL OLIVIER
Chief Executive Officer
$11.08M
@ $235.49 · 2026-08-19
JACOBSON MATTHEW
Director
$15.00M
@ $252.42 · 2026-08-14
LE-QUOC ALEXIS T
Chief Technology Officer
$13.66M
@ $253.36 · 2026-08-10
POMEL OLIVIER
Chief Executive Officer
$36.45M
@ $286.71 · 2026-08-05
POMEL OLIVIER
Chief Executive Officer
$11.52M
@ $244.79 · 2026-07-23
LE-QUOC ALEXIS T
Chief Technology Officer
$11.46M
@ $265.23 · 2026-07-20
POMEL OLIVIER
Chief Executive Officer
$32.93M
@ $259.00 · 2026-07-13
LE-QUOC ALEXIS T
Chief Technology Officer
$13.87M
@ $257.24 · 2026-07-08
LE-QUOC ALEXIS T
Chief Technology Officer
$9.55M
@ $220.97 · 2026-06-22
POMEL OLIVIER
Chief Executive Officer
$19.68M
@ $232.30 · 2026-06-16
ACOCELLA KERRY
General Counsel
$1.26M
@ $233.91 · 2026-06-15
WALTERS SEAN MICHAEL
Officer
$2.74M
@ $231.02 · 2026-06-11
GALLOREESE DAVID
Officer
$918,590
@ $228.90 · 2026-06-09
POMEL OLIVIER
Chief Executive Officer
$29.46M
@ $231.69 · 2026-06-08
OBSTLER DAVID M
Chief Financial Officer
$17.38M
@ $231.69 · 2026-06-08
COLE TITILOPE
Director
$1.27M
@ $247.87 · 2026-06-04
BLITZER ADAM
Chief Operating Officer
$6.69M
@ $258.72 · 2026-06-03
WALTERS SEAN MICHAEL
Officer
$3.58M
@ $267.15 · 2026-06-02
ACOCELLA KERRY
General Counsel
$1.94M
@ $267.15 · 2026-06-02
POMEL OLIVIER
Chief Executive Officer
$6.95M
@ $267.15 · 2026-06-02
LE-QUOC ALEXIS T
Chief Technology Officer
$20.36M
@ $269.94 · 2026-06-02
LI YANBING
Officer
$2.96M
@ $267.15 · 2026-06-02
GALLOREESE DAVID
Officer
$1.26M
@ $267.15 · 2026-06-02
OBSTLER DAVID M
Chief Financial Officer
$4.36M
@ $267.15 · 2026-06-02
JACOBSON MATTHEW
Director
$10.00M
@ $259.10 · 2026-06-01
POMEL OLIVIER
Chief Executive Officer
$18.94M
@ $223.58 · 2026-05-26
LE-QUOC ALEXIS T
Chief Technology Officer
$8.99M
@ $208.04 · 2026-05-18
POMEL OLIVIER
Chief Executive Officer
$25.41M
@ $199.84 · 2026-05-11
JACOBSON MATTHEW
Director
$10.00M
@ $189.28 · 2026-05-08
RICHARDSON JULIE G
Director
$817,253
@ $187.31 · 2026-05-08
LI YANBING
Officer
$3.91M
@ $197.35 · 2026-05-08
WALTERS SEAN MICHAEL
Officer
$1.44M
@ $188.50 · 2026-05-07
ACOCELLA KERRY
General Counsel
$2.08M
@ $150.00 · 2026-05-05
WALTERS SEAN MICHAEL
Officer
$287,100
@ $150.00 · 2026-05-05
LE-QUOC ALEXIS T
Chief Technology Officer
$7.87M
@ $145.95 · 2026-05-05
RICHARDSON JULIE G
Director
$75,300
@ $150.00 · 2026-05-05
LE-QUOC ALEXIS T
Chief Technology Officer
$5.66M
@ $130.84 · 2026-04-22
POMEL OLIVIER
Chief Executive Officer
$4.72M
@ $111.14 · 2026-04-09
LE-QUOC ALEXIS T
Chief Technology Officer
$3.76M
@ $116.46 · 2026-04-06
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →AMZN
😐Neutral(44/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
DDOG
😐Neutral(44/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →AMZN
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (44)
DDOG
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (44)
Frequently Asked Questions: AMZN vs DDOG
Is Amazon.com, Inc. or Datadog, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, AMZN trades at a -152.0% margin of safety (intrinsic value $95 vs. price $240), compared to DDOG's -967.6% margin of safety (intrinsic $22 vs. $235).
Which stock has a wider economic moat, Amazon.com, Inc. or Datadog, Inc.?▼
AMZN scores 51/100 (Narrow moat), while DDOG scores 49/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, Amazon.com, Inc. or Datadog, Inc.?▼
Datadog, Inc. (DDOG) generates a 1.2% free cash flow yield, compared to Amazon.com, Inc.'s -0.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Amazon.com, Inc. or Datadog, Inc.?▼
AMZN earns 9.9% ROIC versus DDOG's 0.4%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.