Key Highlights

● Datadog plunged on Friday, October 30, 2026, with no company-specific news.

● It finished as the S&P 500's top decliner after Intel.

● Amazon's trailing free Cash Flow of negative $42.4 billion fueled AI-spending worries.

● Datadog reports its own quarterly results next week.

Datadog (NASDAQ:DDOG) plunged on Friday, October 30, 2026, finishing as the S&P 500's top decliner after Intel (NASDAQ:INTC), according to market data. The cloud-monitoring software company did not issue any company-specific news. It fell in a broad selloff in software and AI-related stocks set off by results from Amazon (NASDAQ:AMZN) and Intel.

Datadog is scheduled to report its own quarterly results next week, which left the stock exposed as investors cut positions across the sector ahead of a busy stretch of earnings. The company sells tools that help businesses track the performance of their applications and cloud infrastructure.

Amazon and Intel set the tone

Amazon's report after Thursday's close showed Revenue of $201.9 billion, slightly below the $202.2 billion analysts expected, and Earnings of $1.89 a share against estimates of $1.97. More striking was cash flow: Amazon's trailing 12-month free cash flow was negative $42.4 billion. It held 2026 Capital spending at about $220 billion and signaled another increase next year.

Its cloud unit, Amazon Web Services, generated $45.98 billion in revenue, ahead of the $45.29 billion expected. For software companies whose fortunes are tied to cloud activity, the AWS number was solid. But the market focused on the spending and the cash drain.

Intel compounded the pressure with a fourth-quarter revenue outlook of $15 billion to $16 billion, short of the $17.29 billion consensus, and a warning of cash burn this year. Intel shares suffered what market reports called their steepest one-day drop on record.

Software sinks with the rest of tech

Datadog was far from alone. Cloudflare (NYSE:NET), Snowflake (NYSE:SNOW), MongoDB (NASDAQ:MDB) and Okta (NASDAQ:OKTA) all fell sharply in the same session, moving with the sector. AppLovin (NASDAQ:APP) also dropped steeply ahead of its own earnings. A software-focused exchange-traded fund ended the day lower, although Market data said some software names had been among the few gainers earlier in the session.

The selloff extended a rough week for software. On Thursday, ServiceNow (NYSE:NOW) suffered its worst day on record and Fortinet (NASDAQ:FTNT) fell steeply.

"The love-hate relationship with tech and AI continues, and investors are becoming more discerning following earnings," a senior market strategist said on Thursday.

A bruising session for the indexes

The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average dropped 572.25 points to 51,770.31 and the Nasdaq Composite lost 747.73 points to 25,437.00, its worst day since June. The Russell 2000 slid 47.37 points to 2,811.84.

Technology was the worst-performing sector, while energy, consumer staples, utilities and health care gained. Oil above $100 a barrel, a reported $6.3 billion hack at crypto exchange Binance and rising expectations of a December rate increase from the Federal Reserve weighed on risk appetite.

A trading specialist said: "A lot of them kind of got ahead of themselves. It's all earnings based and right now, they're not producing,"

What to watch

Datadog's results next week will give investors a direct read on whether customers are still expanding their cloud usage, or whether spending is getting more careful. Palantir (NASDAQ:PLTR) and Apple (NASDAQ:AAPL) report on Monday, November 2.

The midterm elections on November 3, ISM surveys and the October jobs report on Friday, November 6, will also shape sentiment. An Investment strategist warned that "the earnings bar is very high," a reminder of the hurdle Datadog faces.