Datadog is trading 21.6% down at $221.90 after releasing stronger-than-expected Q2 results and providing updated guidance before the August 6, 2026 open. - Q2 revenue reached $1.12 billion, beating estimates of $1.08 billion. Non-GAAP EPS was $0.65, topping the $0.58 estimate. - Management updated full-year 2026 revenue guidance to $4.45-$4.47 billion and Q3 revenue guidance to $1.135-$1.145 billion. - Pre-market selling indicates investors are selling into earnings, with some reports attributing the drop to high investor expectations despite the beat and raised outlook.