Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $171.00 price target on Datadog (NASDAQ:DDOG), currently trading at $144.89, as the company reportedly explores its largest acquisition to date. According to InvestingPro data, the stock has shown strong momentum, trading near its 52-week high of $170.08.
Industry publications report that Datadog, with its robust balance sheet and strong financial health score of GOOD according to InvestingPro, is in discussions to acquire Israel-based private company Upwind for approximately $1 billion, which would represent the most significant acquisition in Datadog’s history.
The potential acquisition would accelerate Datadog’s platform expansion efforts, particularly in the cloud security market, with a focus on cloud-native applications and infrastructure through Upwind’s technology.
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. The company’s impressive 80.15% gross profit margin and 25.54% revenue growth demonstrate its strong market position. For detailed insights and 13 additional ProTips, visit InvestingPro.
Cantor Fitzgerald believes the acquisition could accelerate Datadog’s efforts to sell to core security buyers of Identity, Firewall, and Cloud Security, noting that Upwind appears to be a leader in runtime-driven risk assessments targeted at the cloud-native cohort. With a current ratio of 2.74, Datadog maintains strong liquidity to support its strategic initiatives.
In other recent news, Datadog has announced the launch of its full product range on Amazon (NASDAQ:AMZN) Web Services’ Asia-Pacific (Sydney) Region, enhancing its global infrastructure capabilities. This expansion allows Datadog to offer local data storage and processing, meeting the privacy and security needs of organizations in regulated sectors such as government and healthcare in Australia. Additionally, Datadog has been added to the S&P 500 Index, marking a significant milestone as it continues to grow its presence in the cloud monitoring sector. In terms of analyst activity, BofA Securities has maintained a Buy rating with a $175 price target, citing the potential acquisition of Upwind Security as a strategic move to bolster Datadog’s security offerings. Meanwhile, Morgan Stanley (NYSE:MS) has raised its price target on Datadog to $165 from $115, highlighting the company’s innovation and market expansion as key drivers. TD Cowen has also reiterated a Buy rating with a $150 price target, ahead of Datadog’s inclusion in the S&P 500. These developments reflect Datadog’s ongoing efforts to expand its market share and enhance its product offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.