Datadog’s (DDOG) Buy Rating Reaffirmed at Rosenblatt Securities

Rosenblatt Securities reaffirmed their buy rating on shares of Datadog (NASDAQ:DDOG) in a research report released on Wednesday,Benzinga reports. The firm currently has a $185.00 target price on the stock.

Several other research firms have also recently commented on DDOG. Macquarie Infrastructure boosted their price target on shares of Datadog from $175.00 to $220.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Mizuho cut their price objective on Datadog from $200.00 to $170.00 and set an “outperform” rating for the company in a research report on Wednesday, January 21st. BNP Paribas Exane decreased their price target on shares of Datadog from $210.00 to $175.00 and set an “outperform” rating on the stock in a research report on Thursday, January 15th. Scotiabank cut their target price on Datadog from $217.00 to $180.00 and set a “sector outperform” rating for the company in a research note on Tuesday, January 27th. Finally, Piper Sandler decreased their price objective on Datadog from $225.00 to $195.00 and set an “overweight” rating on the stock in a report on Monday, January 5th. Thirty-seven investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $179.50.

Datadog Price Performance

Shares of NASDAQ DDOG opened at $127.33 on Wednesday. The firm’s 50-day simple moving average is $133.30 and its 200 day simple moving average is $143.94. The stock has a market cap 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 has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The company has a quick ratio of 3.66, a current ratio of 3.38 and a debt-to-equity ratio of 0.26.

Datadog (NASDAQ:DDOG) last released its earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $953.19 million for the quarter, compared to analyst estimates of $916.53 million. Datadog had a return on equity of 4.14% and a net margin of 3.14%.Datadog’s revenue was up 29.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.49 earnings per share. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Equities analysts expect that Datadog will post 0.34 EPS for the current year.

Insider Activity

In related news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction that occurred on 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 owned 295,448 shares of the company’s stock, valued at approximately $45,513,764.40. This trade represents a 15.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 100,754 shares of the business’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the sale, the chief executive officer directly owned 533,358 shares in the company, valued at $96,633,802.44. This trade represents a 15.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 538,917 shares of company stock valued at $86,804,288 over the last ninety days. 8.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

Several institutional investors and hedge funds have recently modified their holdings of DDOG. Rothschild Investment LLC lifted its position in shares of Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock valued at $25,000 after acquiring an additional 100 shares during the period. Physician Wealth Advisors Inc. increased its holdings in shares of Datadog by 315.2% during the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after buying an additional 145 shares in the last quarter. Westside Investment Management Inc. raised its position in Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after purchasing an additional 75 shares during the last quarter. JPL Wealth Management LLC bought a new position in Datadog in the 3rd quarter valued at approximately $27,000. Finally, Tripletail Wealth Management LLC acquired a new stake in Datadog during the 3rd quarter worth approximately $28,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog News Roundup

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and upbeat guidance: Datadog reported Q4 revenue up ~29% to $953M and $0.59 EPS, topping estimates; management issued Q1 and FY2026 guidance well above Street expectations, which spurred the post-earnings rally. Datadog beats quarterly estimates
• Positive Sentiment: AI positioning: Analysts and commentators argue AI fears are overstated for Datadog; the company is integrating AI monitoring and security features that should make it a beneficiary of AI adoption rather than a victim. Datadog: AI Isn’t The Main Problem
• Positive Sentiment: Strong market reaction and cash flow: Multiple outlets note the stock jumped double digits after the print as revenue, ARR and cash-flow metrics showed acceleration—supporting bullish momentum in the near term. Datadog Stock Surges After Earnings
• Neutral Sentiment: Mixed analyst moves: Some firms reaffirm buys and high targets (DA Davidson, Rosenblatt), while others trimmed targets; reactions are supportive but show a wide range of conviction that could create volatility. Analyst notes (Benzinga)
• Neutral Sentiment: Sector flow and short-squeeze chatter: Broader software/AI rotation and talk of short-covering have amplified price moves—this can produce sharp intraday swings unrelated to fundamentals. Software Stocks Look Primed for a Short Squeeze
• Negative Sentiment: Valuation remains a concern: Commentators and some analysts still view Datadog as expensive (very high P/E and premium multiples), which limits upside despite strong results and makes the stock sensitive to any slowdown or guidance miss. Is Datadog Stock Still A Buy?
• Negative Sentiment: Short-term profit-taking and AI-sector weakness: After the earnings pop, some investors are trimming positions into strength; ongoing AI-driven rotation in software names is pressuring the stock despite Datadog-specific positives. Datadog jumps after Q4 beat

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.