Wedbush Issues Pessimistic Forecast for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its price objective dropped by investment analysts at Wedbush from $275.00 to $240.00 in a research note issued on Thursday, Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Wedbush‘s price objective would indicate a potential upside of 27.17% from the company’s previous close.

A number of other research analysts have also recently commented on the stock. Robert W. Baird set a $300.00 price target on shares of Datadog in a research report on Friday, August 7th. Mizuho increased their price target on Datadog from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Thursday, October 15th. FBN Securities assumed coverage on shares of Datadog in a research note on Friday, October 2nd. They issued an “outperform” rating and a $325.00 target price for the company. Scotiabank increased their price target on shares of Datadog from $275.00 to $285.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Finally, Needham & Company LLC reissued a “buy” rating and set a $300.00 target price on shares of Datadog in a research report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, forty-one have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Datadog has an average rating of “Moderate Buy” and a consensus target price of $282.30.

Datadog Stock Down 14.4%

Datadog stock opened at $188.72 on Thursday. The company’s 50-day moving average price is $250.09 and its two-hundred day moving average price is $199.43. The stock has a market cap of $67.77 billion, a P/E ratio of 385.15, a P/E/G ratio of 21.50 and a beta of 1.50. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. Datadog has a twelve month low of $98.01 and a twelve month high of $300.68.

Datadog (NASDAQ:DDOG) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.17. Datadog had a net margin of 4.48% and a return on equity of 5.67%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the prior year, the company earned $0.55 EPS. The firm’s quarterly revenue was up 35.2% compared to the same quarter last year. As a group, analysts expect that Datadog will post 0.70 EPS for the current year.

Insider Activity at Datadog

In related news, CEO Olivier Pomel sold 89,497 shares of Datadog stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $207.86, for a total value of $18,602,846.42. Following the sale, the chief executive officer directly owned 586,416 shares in the company, valued at $121,892,429.76. This trade represents a 13.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $253.36, for a total value of $13,659,144.32. Following the completion of the transaction, the chief technology officer directly owned 509,805 shares of the company’s stock, valued at approximately $129,164,194.80. The trade was a 9.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 745,293 shares of company stock worth $175,536,548. 6.48% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Datadog

Several institutional investors have recently made changes to their positions in DDOG. Janus Henderson Group PLC boosted its holdings in Datadog by 22.8% during the first quarter. Janus Henderson Group PLC now owns 7,749,569 shares of the company’s stock valued at $905,570,000 after acquiring an additional 1,439,082 shares during the period. First Trust Advisors LP increased its position in shares of Datadog by 81.5% during the 1st quarter. First Trust Advisors LP now owns 3,685,562 shares of the company’s stock worth $435,081,000 after purchasing an additional 1,654,429 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Datadog by 30.3% during the first quarter. Bank of New York Mellon Corp now owns 2,645,827 shares of the company’s stock worth $312,340,000 after purchasing an additional 615,090 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Datadog by 197.9% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,443,008 shares of the company’s stock valued at $669,018,000 after buying an additional 1,622,904 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Datadog by 162.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,571,018 shares of the company’s stock valued at $185,459,000 after purchasing an additional 971,910 shares during the period. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q3 revenue rose 35.2% year over year to $1.20 billion, ahead of estimates, while adjusted EPS of $0.81 topped the $0.64 consensus. Datadog also raised its full-year outlook and reported continued product adoption, including growth in its larger-customer base. Datadog Q3 results
• Positive Sentiment: Longer-term demand indicators were encouraging: revenue from customers outside AI grew in the high-20% range, and infrastructure-monitoring ARR exceeded $2 billion. Long-term investor takeaways
• Neutral Sentiment: Cantor Fitzgerald and BTIG lowered their price targets to $260 while retaining Overweight and Buy ratings, respectively; Needham reaffirmed Buy with a $300 target. The target cuts signal more cautious expectations despite continued bullish ratings. Cantor Fitzgerald rating
• Negative Sentiment: Q4 revenue guidance points to a slowdown from Q3’s 35% growth—roughly 26% year-over-year growth in one analysis, with revenue expected near Q3’s level. Investors may see the outlook as a deceleration even though Q3 beat estimates. Datadog rating downgrade analysis
• Negative Sentiment: Management said reduced usage by a major AI customer weighed on growth. That customer concentration and spending volatility add uncertainty to the outlook, while Datadog’s premium valuation leaves the stock vulnerable if growth expectations ease. Major customer usage report

About Datadog

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.