Needham & Company LLC Has Lowered Expectations for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its target price cut by equities research analysts at Needham & Company LLC from $220.00 to $155.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price target suggests a potential upside of 21.73% from the stock’s current price.

A number of other research firms have also weighed in on DDOG. JPMorgan Chase & Co. upped their target price on Datadog from $140.00 to $200.00 and gave the stock an “overweight” rating in a report on Friday, November 7th. Daiwa Securities Group began coverage on Datadog in a research note on Tuesday, January 27th. They set a “buy” rating and a $190.00 price objective for the company. Raymond James Financial boosted their target price on shares of Datadog from $170.00 to $205.00 in a report on Thursday, November 6th. Sanford C. Bernstein reissued an “outperform” rating on shares of Datadog in a research report on Wednesday, January 21st. Finally, Piper Sandler lowered their price target on shares of Datadog from $225.00 to $195.00 and set an “overweight” rating on the stock in a report on Monday, January 5th. Thirty-seven analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and a consensus target price of $179.50.

Datadog Price Performance

Shares of DDOG stock opened at $127.33 on Tuesday. The stock has a 50 day moving average price of $133.30 and a 200 day moving average price of $143.94. Datadog has a 52-week low of $81.63 and a 52-week high of $201.69. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.66 and a current ratio of 3.38. The firm has a market capitalization of $44.65 billion, a P/E ratio of 410.74, a P/E/G ratio of 23.16 and a beta of 1.27.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.55 by $0.04. The company had revenue of $953.19 million for the quarter, compared to the consensus estimate of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.Datadog’s quarterly revenue was up 29.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.49 EPS. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. As a group, sell-side analysts predict that Datadog will post 0.34 earnings per share for the current year.

Insider Activity at Datadog

In other news, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction on Monday, November 17th. The shares were sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the completion of the sale, the chief executive officer directly owned 533,358 shares in the company, valued at approximately $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $154.05, for a total value of $8,305,143.60. Following the sale, the chief technology officer directly owned 295,448 shares of the company’s stock, valued at approximately $45,513,764.40. This represents a 15.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 538,917 shares of company stock valued at $86,804,288 over the last ninety days. 8.70% of the stock is currently owned by insiders.

Institutional Trading of Datadog

A number of hedge funds and other institutional investors have recently made changes to their positions in DDOG. Westside Investment Management Inc. raised its stake in shares of Datadog by 74.3% during the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after buying an additional 75 shares during the last quarter. Rothschild Investment LLC grew its holdings in Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after acquiring an additional 100 shares during the period. Tripletail Wealth Management LLC purchased a new position in Datadog during the third quarter valued at approximately $28,000. Physician Wealth Advisors Inc. lifted its holdings in Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after acquiring an additional 145 shares during the period. Finally, JPL Wealth Management LLC purchased a new stake in Datadog in the 3rd quarter worth approximately $27,000. Institutional investors and hedge funds own 78.29% of the company’s stock.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and bullish guidance — Datadog reported Q4 revenue of $953M (+29% YoY) and adjusted EPS $0.59, both above Street estimates; management issued FY‑2026 EPS and Q1 EPS guidance well ahead of consensus and highlighted strong cash flow and ARR gains. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Market reaction: shares jumped sharply after the earnings beat and guidance, reflecting renewed investor appetite for high‑quality software names amid stabilizing software sentiment. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Product momentum: Datadog highlighted new AI and observability launches (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) that support the company’s AI‑driven revenue narrative. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Analyst bullish notes: Several firms reaffirmed/raised bullish views (DA Davidson reiterated a buy with a $225 PT; Rosenblatt kept a buy at $185; Capital One nudged its target up). These endorsements help underpin the post‑earnings rally. Benzinga coverage
• Neutral Sentiment: Earnings call and transcripts are available for deeper read — useful for investors wanting management color on customer mix, AI product uptake and margin cadence. Datadog Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Short‑interest data reported appears unreliable/zeroed in recent feeds (flagged NaN/0 figures) — treat short‑interest reads cautiously until exchanges confirm.
• Negative Sentiment: Analyst target trims despite the beat — multiple firms lowered targets (Barclays, Scotiabank, Wolfe, Needham, BTIG among others) citing valuation/longer‑term multiples, which may cap upside near term. Benzinga coverage
• Negative Sentiment: Valuation remains a concern for some investors: the stock trades at a very high P/E and elevated PEG metrics versus peers, leaving it vulnerable to multiple contraction if growth disappoints.

About Datadog

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.