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Investing.com - Monness, Crespi, Hardt raised its price target on Datadog (NASDAQ:DDOG) stock to $185 from $160 while maintaining a Buy rating following the company’s second-quarter results. The new target represents significant upside potential from the current price of $134.84, though InvestingPro data suggests the stock is trading at premium multiples with a P/E ratio of 276.87.
Datadog reported what Monness described as "excellent" results for the second quarter of 2025 and issued a strong outlook for the third quarter while raising its full-year 2025 guidance. The firm highlighted that Datadog experienced strong demand from AI-native customers. The company maintains impressive gross profit margins of 80.15% and has demonstrated solid revenue growth of 25.54% over the last twelve months. InvestingPro analysis reveals 13 additional key insights about Datadog’s financial health and market position.
For the third quarter of 2025, Datadog expects revenue between $847-851 million, operating income of $176-180 million, and earnings per share of $0.44-0.46. These projections exceed current Street expectations of $819.9 million in revenue and $0.42 in earnings per share. With a market capitalization of $46.44 billion, analysts maintain a bullish consensus on the stock, with price targets ranging from $105 to $200.
The company has updated its full-year 2025 guidance, now expecting revenue of $3.312-3.322 billion, up from its previous forecast of $3.215-3.235 billion. Datadog also raised its operating income projection to $684-694 million from $625-645 million previously, and increased its earnings per share guidance to $1.80-1.83 from $1.67-1.71.
In response to these results, Monness increased its third-quarter revenue estimate to $871.0 million, representing 26% year-over-year growth, and raised its earnings per share forecast to $0.48. For the full year 2025, the firm now projects sales of $3.382 billion, up 26%, with earnings per share of $1.91.
In other recent news, Datadog is drawing attention from various analyst firms with updates on its stock ratings and price targets. DA Davidson has increased its price target for Datadog to $160, maintaining a Buy rating due to strong demand for its services. Similarly, Jefferies has also raised its price target to $160, highlighting long-term growth prospects despite short-term market fluctuations. UBS has reaffirmed its Buy rating with a price target of $165, ahead of Datadog’s upcoming second-quarter earnings report. Stifel, while maintaining a Hold rating, anticipates a strong second-quarter performance, driven by increased OpenAI usage, which could significantly boost revenue growth.
In addition to analyst updates, Datadog is reportedly in acquisition talks with Israel-based Upwind. Cantor Fitzgerald has reiterated an Overweight rating and a $171 price target, noting the potential $1 billion acquisition as a strategic move to enhance Datadog’s cloud security capabilities. This acquisition would be the largest in Datadog’s history, focusing on expanding its footprint in cloud-native applications and infrastructure. These developments reflect a period of active growth and strategic positioning for Datadog in the competitive tech landscape.
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