'Dynamite Company': Jim Cramer says the tech giant that serves Microsoft, IBM and AWS is 'expensive, but they know what they're doing'

In a recent segment on CNBC's “Mad Money,” Jim Cramer gave its approval to Data Dog Co., Ltd. (NASDAQ:DDOG), described the technology company as a “dynamite company.”

what happened: On Monday, CNBC reported that Cramer had a positive attitude towards Datadog despite its high valuation. In response to audience questions, he pointed to the company's management strength and solid outlook.

“I think this is a dynamite company and it's a buy. It's expensive, but they really know what they're doing,” he noted.

Datadog is a US-based company that provides observability services at scale for cloud-based applications. With the increasing adoption of cloud technology, Datadog has experienced rapid growth and expanded its product range to encompass a variety of service providers, including: Amazon Web Services (AWS), microsoft azure, Google cloud platform, red hat open shift, vmwareand open stack.

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why is it important:Earlier this month, 18 financial analysts offered opinions on Datadog ranging from bullish to bearish. Analysts set an average 12-month price target for the company at $147.44, a significant increase from the previous target of $126.33.

Additionally, Datadog's float percentage short increased by 18.08%. The company reported 11.77 million shares sold short, representing 4.18% of the total shares available for trading. Data suggests that it takes traders approximately 1.81 days to cover their short positions.

Price action: The company's recent performance has shown resilience, with Monday's closing price at $120.87. This is a slight increase from the previous closing price of $120.42, and the stock has fluctuated between a 52-week high of $138.61 and a low of $62.597.

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