Datadog (NASDAQ:DDOG) Shares Gap Down – Should You Sell?

Datadog, Inc. (NASDAQ:DDOG) shares gapped down prior to trading on Wednesday . The stock had previously closed at $122.56, but opened at $116.99. Datadog shares last traded at $121.29, with a volume of 3,619,422 shares trading hands.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: DA Davidson reiterated a Buy on DDOG and set a $225 price target, implying significant upside versus current levels; that reaffirmation supports a constructive medium-term thesis. DA Davidson Reaffirmation
• Positive Sentiment: The Motley Fool included Datadog among AI/tech names some Wall Street analysts view as undervalued, signaling potential analyst-driven buy interest if sentiment shifts back to growth names. 2 Undervalued AI Stocks
• Positive Sentiment: Case study: QSIC announced it uses Datadog to improve retail media reliability — evidence of customer traction in advertising/retail monitoring use cases. QSIC Case Study
• Neutral Sentiment: Datadog’s Analyst/Investor Day transcript is available for review; it may contain execution details and long-term model clarity that investors will parse for conviction. Investor Day Transcript
• Neutral Sentiment: A Globe & Mail piece highlights conflicted analyst views on Datadog and other tech names — underscores dispersion in expectations rather than consensus. Analysts Conflicted
• Neutral Sentiment: Recent short-interest reports appear to show inconsistent/zero data (likely a reporting artifact); no clear signal from short activity at this time.
• Negative Sentiment: Cantor Fitzgerald cut its price target on DDOG to $150 from $220 (keeps Overweight), trimming upside expectations and contributing to near-term selling pressure. Cantor Fitzgerald PT Cut
• Negative Sentiment: Broader sector weakness: CNBC reports Palo Alto’s CEO defending cybersecurity amid AI-driven selloff in software stocks — highlights macro/AI rotation risk that can weigh on Datadog despite company-specific strengths. Palo Alto/AI Sector Pressure

Wall Street Analyst Weigh In

DDOG has been the topic of a number of research reports. BMO Capital Markets set a $165.00 price objective on shares of Datadog in a research report on Wednesday, February 11th. Bank of America increased their price objective on shares of Datadog from $180.00 to $215.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. Jefferies Financial Group decreased their price objective on Datadog from $180.00 to $160.00 and set a “buy” rating for the company in a report on Friday, February 6th. Cantor Fitzgerald dropped their target price on Datadog from $220.00 to $150.00 and set an “overweight” rating on the stock in a report on Friday, February 6th. Finally, BTIG Research decreased their price target on Datadog from $221.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday, February 10th. Thirty-six equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $179.62.

Datadog Stock Down 1.1%

The stock has a fifty day moving average price of $131.05 and a two-hundred day moving average price of $143.36. The company has a market cap of $42.51 billion, a price-to-earnings ratio of 391.01, a P/E/G ratio of 34.26 and a beta of 1.27. The company has a quick ratio of 3.66, a current ratio of 3.38 and a debt-to-equity ratio of 0.26.

Datadog (NASDAQ:DDOG) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.04. The business had revenue of $953.19 million for the quarter, compared to analyst estimates of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. Datadog’s revenue for the quarter was up 29.2% compared to the same quarter last year. During the same period last year, the firm earned $0.49 earnings per share. 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, sell-side analysts expect that Datadog, Inc. will post 0.34 EPS for the current year.

Insider Activity at Datadog

In related news, CTO Alexis Le-Quoc sold 43,106 shares of the business’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $126.79, for a total value of $5,465,409.74. Following the completion of the transaction, the chief technology officer owned 490,798 shares of the company’s stock, valued at $62,228,278.42. The trade was a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Kerry Acocella sold 5,018 shares of the stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $158.60, for a total transaction of $795,854.80. Following the sale, the general counsel owned 88,401 shares in the company, valued at $14,020,398.60. The trade was a 5.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 380,515 shares of company stock worth $55,760,478 in the last quarter. 8.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently modified their holdings of DDOG. PKO Investment Management Joint Stock Co bought a new position in Datadog during the third quarter worth $1,709,000. Munro Partners bought a new stake in Datadog during the third quarter valued at $7,120,000. Hartford Investment Management Co. acquired a new stake in Datadog during the 3rd quarter worth about $2,689,000. IQ EQ FUND MANAGEMENT IRELAND Ltd raised its position in shares of Datadog by 134.5% in the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 31,142 shares of the company’s stock worth $4,435,000 after acquiring an additional 17,860 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in shares of Datadog by 37.9% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company’s stock valued at $15,555,000 after purchasing an additional 30,008 shares during the period. 78.29% of the stock is currently owned by institutional investors.

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.