Atlassian and Datadog Rally 30% on AI-Driven Earnings Beats

On May 21, Atlassian and Datadog posted accelerating revenue growth that defied AI-disruption fears, triggering sharp rallies and technical breakouts. The moves extend the prior day’s commentary on Oracle and IBM, where strong cloud and generative-AI backlogs had already hinted that enterprise software fundamentals remain intact. Atlassian’s fiscal Q3 revenue rose 30% with Rovo users delivering more than double the ARR of non-users, while Datadog crossed the $1 billion quarterly-revenue threshold for the first time. Both stocks jumped nearly 30% intraday, forming bullish technical signals and shifting investor focus toward beaten-down software names as capex-heavy AI infrastructure spending begins to monetize.