Apr. 28 at 1:17 AM
Starboard's move into
$DT is a wake-up call for the company to fix its underperforming stock through leaner operations. The activist investor is specifically eyeing deep cuts to sales and marketing to boost profit margins.
Although
$DT has already greenlit a
$1B buyback, Starboard insists it can triple that effort, returning at least
$2.5B to shareholders by 2029.
$DT has underperformed its peers in software infrastructure and cybersecurity, trading at a discount due to stagnated revenue growth and investor skepticism. It was down 23% in the past year. High-profile stock dumps by the CEO and CFO totaling
$534M have only heightened concerns. There is a broader market fear that established observability platforms could be replaced by newer AI native tools.
$DT competes with
$DDOG, which offers a Watchdog AI engine for anomaly detection and has dedicated LLM observability for generative AI applications.
