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Investing.com - Raymond (NSE:RYMD) James raised its price target on Datadog (NASDAQ:DDOG) to $170.00 from $150.00 on Thursday, while maintaining an Outperform rating following the company’s second-quarter results. The new target sits well above the current trading price of $134.32, with InvestingPro data showing analyst targets ranging from $105 to $200.
The firm noted that Datadog’s growth and profitability metrics exceeded expectations, with AI-native customers growing at nearly 50% net new annual recurring revenue according to Raymond James estimates.
Non-AI account growth remained in the high teens, showing second derivative improvement, while dollar-based net retention rate returned to what the firm called "elite levels" above 120%.
Raymond James acknowledged that AI-native customer concentration optimization remains a risk heading into the fourth-quarter renewal period, but cited Datadog’s track record of managing similar optimization periods in the past, such as with cryptocurrency customers.
The firm highlighted Datadog’s security business, which now exceeds $100 million in annual recurring revenue and is growing in the mid-40% range, as well as the company’s Flex (NASDAQ:FLEX) Logs product which is part of its largest deals.
In other recent news, Datadog reported strong second-quarter 2025 results and issued an optimistic outlook for the third quarter, prompting Monness, Crespi, Hardt to raise its price target to $185 while maintaining a Buy rating. The firm noted robust demand from AI-native customers as a key factor in the company’s performance. DA Davidson also increased its price target for Datadog to $160, citing significant growth in usage based on proprietary developer datasets, which suggests strong demand for the company’s services. Jefferies echoed this sentiment by raising its price target to $160, highlighting Datadog’s long-term growth drivers despite short-term fluctuations. UBS reaffirmed its Buy rating and set a $165 price target ahead of the company’s second-quarter earnings report, noting the stock’s rally since April. Stifel maintained its Hold rating with a $135 target, anticipating a strong second-quarter performance driven by accelerating OpenAI usage, which could significantly boost revenue growth. These developments reflect a positive outlook from analysts regarding Datadog’s future prospects.
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