Datadog (NASDAQ:DDOG) Given Buy Rating at Rosenblatt Securities

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating reaffirmed by stock analysts at Rosenblatt Securities in a report released on Wednesday,Benzinga reports. They currently have a $185.00 price target on the stock. Rosenblatt Securities’ price target points to a potential upside of 42.67% from the stock’s previous close.

DDOG has been the topic of several other research reports. KeyCorp lowered their target price on Datadog from $170.00 to $155.00 and set an “overweight” rating on the stock in a report on Wednesday, February 4th. Oppenheimer boosted their price target on Datadog from $165.00 to $195.00 and gave the company an “outperform” rating in a report on Friday, October 17th. Daiwa Securities Group started coverage on shares of Datadog in a research report on Tuesday, January 27th. They issued a “buy” rating and a $190.00 target price on the stock. Evercore lowered their price target on Datadog from $215.00 to $175.00 and set an “outperform” rating for the company in a research report on Monday, February 2nd. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Datadog in a report on Wednesday, January 21st. Thirty-seven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Datadog has an average rating of “Moderate Buy” and an average target price of $180.60.

Datadog Stock Up 13.7%

DDOG opened at $129.67 on Wednesday. The business has a 50 day moving average price of $133.87 and a two-hundred day moving average price of $144.06. Datadog has a 52 week low of $81.63 and a 52 week high of $201.69. The company has a market cap of $45.47 billion, a PE ratio of 418.29, a P/E/G ratio of 20.37 and a beta of 1.27. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.04. The company had revenue of $953.19 million for the quarter, compared to analysts’ expectations of $916.53 million. Datadog had a net margin of 3.32% and a return on equity of 4.14%. Datadog’s revenue was up 29.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.49 EPS. 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, research analysts anticipate that Datadog will post 0.34 EPS for the current year.

Insider Activity

In other news, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction that occurred on 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 owned 533,358 shares of the company’s stock, valued at approximately $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $154.05, for a total value of $8,305,143.60. Following the completion of the transaction, the chief technology officer directly owned 295,448 shares of the company’s stock, valued at $45,513,764.40. This trade represents a 15.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 538,917 shares of company stock valued at $86,804,288. 8.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Rothschild Investment LLC increased its holdings in Datadog by 126.6% in the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after buying an additional 100 shares during the last quarter. Physician Wealth Advisors Inc. boosted its holdings in Datadog by 315.2% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after purchasing an additional 145 shares during the period. Westside Investment Management Inc. increased its stake in Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after acquiring an additional 75 shares during the period. JPL Wealth Management LLC acquired a new position in Datadog in the 3rd quarter valued at approximately $27,000. Finally, Tripletail Wealth Management LLC bought a new position in Datadog in the third quarter worth $28,000. Institutional investors and hedge funds own 78.29% of the company’s stock.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat — Datadog reported $953M revenue (up 29% YoY) and $0.59 adjusted EPS, beating consensus and prompting the post‑earnings rally. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Bullish guidance — Datadog raised guidance: Q1 EPS 0.49–0.51 (vs. consensus ~0.35) and FY 2026 EPS 2.08–2.16 (well above prior street numbers), which supports multiple expansion despite high valuation. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI product momentum — management highlighted new AI features (Bits AI SRE Agent, data observability, storage management, feature flags) and growing large‑customer base (603 $1M+ ARR customers), underpinning revenue durability. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Strong cash flow — Datadog reported ~$1.05B operating cash flow and ~$915M free cash flow for FY2025, improving the quality of growth and supporting investor confidence. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Sector tailwinds — strategists say recent software selloff (AI disruption fears) may present a buying opportunity for high‑quality names like Datadog, helping recovery in the group. AI disruption fears create buying chance in US software stocks, strategists say
• Neutral Sentiment: Analyst notes mixed — several firms lowered price targets (Wolfe, RBC, Needham) but many kept Buy/Outperform ratings; that reduces upside projections even as coverage remains constructive. Benzinga
• Neutral Sentiment: Earnings call/transcript available — investors can drill into management commentary for details on product monetization, AI adoption, and margin assumptions. Datadog (DDOG) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Valuation concerns remain — high P/E and public comments (e.g., Jim Cramer calling it “too expensive”) mean some investors may take profits despite strong results. Jim Cramer on Datadog: “There Are Cheap Enterprise Software Stocks, Just Not This One”

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.