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Investing.com - DA Davidson raised its price target on Datadog (NASDAQ:DDOG) to $160 from $125 while maintaining a Buy rating on the stock. The new target sits within the analyst range of $105-$200, with InvestingPro data showing the stock currently trading at $139.13.
The research firm based its decision on analysis from proprietary developer datasets showing significant growth in usage, suggesting strong quarterly demand for Datadog’s services. This aligns with the company’s impressive 25.54% revenue growth and robust 80.15% gross profit margin over the last twelve months.
DA Davidson’s checks with the DEN and key industry players emphasized that observability has become a "two-horse race" with Datadog clearly positioned as one of the market leaders.
The firm indicated it continues to look past narratives around OpenAI and views Datadog as well-positioned for growth as the market rotates from AI hardware to AI software infrastructure.
Datadog provides cloud-based monitoring and analytics platforms that allow organizations to track and troubleshoot their applications and infrastructure.
In other recent news, Datadog has been in the spotlight with multiple developments. The company is gearing up for its second-quarter 2025 earnings report, with UBS reaffirming a Buy rating and a $165 price target. Stifel also maintained a Hold rating, predicting a strong performance driven by increased OpenAI usage, potentially boosting revenue growth into the high-20% range. Meanwhile, TD Cowen raised its price target to $170, anticipating results that exceed management’s guidance and a positive adjustment to the full-year outlook.
In acquisition news, Datadog is reportedly in talks to acquire Israel-based Upwind for approximately $1 billion, which would be its largest purchase to date. This move aims to enhance Datadog’s capabilities in cloud security, particularly for cloud-native applications and infrastructure. Cantor Fitzgerald reiterated an Overweight rating and a $171 price target amidst these acquisition discussions. Additionally, Jefferies raised its price target to $160, highlighting Datadog’s long-term growth prospects despite short-term fluctuations. These developments reflect a period of significant activity and strategic positioning for Datadog.
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