Gold prices set for weekly drop as dollar surges; Trump tariff action in focus
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $171.00 price target on Datadog (NASDAQ:DDOG), currently trading at $149.84 with a market cap of $51.75 billion, as the company reportedly engages in acquisition talks with Israel-based Upwind.
The potential $1 billion acquisition would represent the largest purchase in Datadog’s history and aims to expand the company’s presence in the cloud security market, with a specific focus on cloud-native applications and infrastructure. According to InvestingPro data, Datadog maintains impressive gross profit margins of 80.15% and has demonstrated strong revenue growth of 25.54% over the last twelve months.
Datadog currently serves over 7,500 customers using its security products as of the first quarter of 2025, including 79 customers spending over $100,000 and several exceeding $1 million in spending as of the second quarter of 2023. With earnings scheduled for August 7th, InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report for deeper analysis.
The company has identified Agentless Scanning, IaaS Security, and Code Security as key growth drivers, which represent natural adjacencies for DevSecOps but appeal to different buyers than traditional security products like Identity, Firewall, and Cloud Security.
Cantor Fitzgerald believes the acquisition could accelerate Datadog’s efforts to sell to traditional security buyers, noting that Upwind appears to be a leader in runtime-driven risk assessments targeted at cloud-native customers with a similar product-led support approach to Datadog.
In other recent news, Datadog has been the subject of multiple analyst updates and strategic developments. TD Cowen raised its price target for Datadog to $170, maintaining a Buy rating, and expects the company to surpass its management’s guidance of 23% growth, with potential market share gains against competitors. Cantor Fitzgerald reiterated an Overweight rating with a $171 price target as Datadog reportedly explores its largest acquisition to date, aiming to acquire Israel-based Upwind for approximately $1 billion. BofA Securities also reiterated a Buy rating with a $175 price target, highlighting that the potential acquisition would bolster Datadog’s security offerings.
Additionally, Morgan Stanley (NYSE:MS) increased its price target to $165 from $115, citing Datadog’s ongoing innovation and market share growth. In terms of infrastructure, Datadog announced the launch of its full product range on Amazon (NASDAQ:AMZN) Web Services’ Asia-Pacific Sydney Region. This expansion allows Datadog to provide local data storage and processing capabilities, benefiting organizations in regulated sectors. These recent developments reflect Datadog’s strategic efforts to expand its market presence and product offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.