AMZN vs DDOG: How Amazon and Datadog Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AMZN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AMZN and DDOG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AMZN and DDOG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Amazon is one of the largest companies in the world, operating across three major business lines. Amazon Web Services (AWS) is the dominant global cloud computing provider, generating around $110 billion in annual revenue and most of the company's operating income. The North America and International e-commerce segments include the Amazon online marketplace, Prime membership, and third-party seller services. Advertising has grown into the third-largest digital ad business in the world (after Google and Meta).

Full AMZN guide

Datadog is a cloud-based observability and security platform that helps companies monitor the health, performance, and security of their applications and infrastructure. As businesses moved workloads to the cloud and adopted microservices, the number of systems to watch exploded, and Datadog built a unified platform that brings infrastructure monitoring, application performance monitoring, log management, and more into a single product. Engineers and operations teams use Datadog to see what is happening across their entire technology stack in real time, catch problems before users do, and trace issues to their root cause. The company sells primarily through a subscription, land-and-expand model: customers often start with one product, such as infrastructure monitoring, then adopt additional modules like logs, APM, security, and synthetic testing over time. Datadog has expanded aggressively into cloud security and, more recently, observability for AI and large-language-model applications. It is headquartered in New York City and serves a broad base of enterprise and digital-native customers.

Full DDOG guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AMZN drivers: AWS as the AI infrastructure backbone; Retail margin expansion.
• DDOG drivers: Land-and-expand platform; Cloud migration tailwind.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows. For DDOG, datadog's consumption-based revenue is sensitive to customers' cloud spending; when companies optimize cloud costs, usage and revenue growth can slow.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AMZN if you believe its drivers more; DDOG if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AMZN and DDOG guides.

AMZN. Amazon's headline P/E reflects the aggregate of low-margin retail and high-margin AWS/advertising. The valuation premium is paid for AWS specifically; retail is essentially valued near cost. P/E of 40x is elevated versus the S&P 500 average (~22x), supported by AWS growth re-accelerating.

DDOG. Datadog trades at a premium growth-software multiple, valued on revenue, free cash flow, and durable expansion rather than GAAP earnings. The market rewards its high net revenue retention, broad product platform, and AI-observability optionality, but the rich valuation makes the stock sensitive to any slowdown in cloud-driven consumption growth.

Headline figures (approximate, early 2026): AMZN shows revenue (ttm) ~$650 billion, operating margin ~10% (AWS materially higher; retail much lower), net income (ttm) ~$60 billion, eps (ttm) ~$5.50; DDOG shows revenue (ttm) ~$3 billion, revenue growth ~20-25%, decelerating from prior years, operating margin (gaap) Low, near breakeven on a GAAP basis, operating margin (non-gaap) ~20%+.

AMZN and DDOG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMZN and DDOG exposure against your real portfolio. It is not an investment adviser.