Datadog (NASDAQ:DDOG) Earns “Buy” Rating from DA Davidson

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating restated by equities researchers at DA Davidson in a note issued to investors on Wednesday,Benzinga reports. They currently have a $225.00 price objective on the stock. DA Davidson’s price target suggests a potential upside of 78.99% from the stock’s previous close.

A number of other equities analysts also recently weighed in on DDOG. Oppenheimer boosted their target price on shares of Datadog from $165.00 to $195.00 and gave the stock an “outperform” rating in a report on Friday, October 17th. KeyCorp dropped their price objective on Datadog from $170.00 to $155.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 4th. Guggenheim set a $105.00 target price on shares of Datadog in a research note on Thursday, November 6th. Wedbush decreased their price target on shares of Datadog from $215.00 to $190.00 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, Piper Sandler cut their price objective on shares of Datadog from $225.00 to $195.00 and set an “overweight” rating for the company in a research report on Monday, January 5th. Thirty-seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and an average price target of $179.50.

Datadog Stock Down 3.1%

Shares of NASDAQ DDOG traded down $3.96 during mid-day trading on Wednesday, reaching $125.71. The company had a trading volume of 4,804,363 shares, compared to its average volume of 6,606,486. The company has a debt-to-equity ratio of 0.29, a quick ratio of 3.66 and a current ratio of 3.66. The stock has a market capitalization of $44.08 billion, a PE ratio of 403.55, a price-to-earnings-growth ratio of 20.37 and a beta of 1.27. Datadog has a twelve month low of $81.63 and a twelve month high of $201.69. The stock’s 50 day moving average is $133.87 and its 200-day moving average is $144.06.

Datadog (NASDAQ:DDOG) last released its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. Datadog had a return on equity of 4.14% and a net margin of 3.32%.The business had revenue of $953.19 million for the quarter, compared to analysts’ expectations of $916.53 million. During the same period in the previous year, the business posted $0.49 earnings per share. Datadog’s quarterly revenue was up 29.2% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, equities analysts anticipate that Datadog will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at approximately $96,633,802.44. This trade represents a 15.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $154.05, for a total transaction of $8,305,143.60. Following the completion of the transaction, the chief technology officer owned 295,448 shares in the company, valued at $45,513,764.40. This trade represents a 15.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 538,917 shares of company stock valued at $86,804,288. 8.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Datadog by 30.3% in the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock worth $5,966,877,000 after purchasing an additional 9,748,738 shares in the last quarter. State Street Corp raised its holdings in shares of Datadog by 106.8% in the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company’s stock worth $1,955,547,000 after purchasing an additional 7,091,075 shares during the period. Norges Bank purchased a new position in shares of Datadog during the 4th quarter valued at $469,461,000. Jennison Associates LLC boosted its position in Datadog by 43.7% during the fourth quarter. Jennison Associates LLC now owns 7,623,993 shares of the company’s stock worth $1,036,787,000 after purchasing an additional 2,316,994 shares during the period. Finally, Invesco Ltd. boosted its holdings in Datadog by 119.2% in the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares during the period. 78.29% of the stock is owned by institutional investors.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat and strong forward guidance — Datadog reported $953M revenue (up ~29% y/y) and $0.59 EPS, and issued Q1 and FY26 guidance well above Street expectations; management also highlighted new AI‑driven features, large‑customer growth and substantial operating/free cash flow. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Media coverage and analyst notes highlighted the beat and product momentum, supporting the earlier rally. Datadog Q4 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
• Positive Sentiment: Some bullish analyst actions — Capital One nudged its price target higher and Rosenblatt reaffirmed a buy with a high target, reflecting confidence in Datadog’s growth runway. Capital One Adjusts Price Target on Datadog
• Neutral Sentiment: Macro/sector context: coverage suggesting software names could be set up for a short squeeze or rebound as AI‑driven fears stabilize — this is supportive for a bounce but speculative. Software Stocks Look Primed for a Short Squeeze
• Neutral Sentiment: Strategists note recent software weakness from AI disruption fears has created buying opportunities — helps explain the volatile back‑and‑forth in DDOG. AI disruption fears create buying chance in US software stocks
• Negative Sentiment: Multiple analyst price‑target cuts and mixed ratings — several firms (Barclays, Scotiabank, Needham, Wolfe, BTIG among others) trimmed targets even while maintaining constructive ratings, signaling reduced near‑term upside expectations and prompting some profit‑taking. Analyst Price Target Updates (Benzinga)
• Negative Sentiment: Short‑term technical/profit‑taking pressure — DDOG jumped sharply on the beat (reports of ~16% intraday gain), so today’s pullback appears driven by traders locking gains and sector rotation rather than new company‑specific negatives. Datadog beats quarterly estimates on AI-driven demand; shares rise

Datadog Company Profile

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.