Datadog (NASDAQ:DDOG) Price Target Cut to $160.00 by Analysts at Wolfe Research

Datadog (NASDAQ:DDOG) had its target price decreased by research analysts at Wolfe Research from $185.00 to $160.00 in a report released on Tuesday,MarketScreener reports. The brokerage currently has an “outperform” rating on the stock. Wolfe Research’s price target suggests a potential upside of 24.42% from the company’s previous close.

A number of other equities analysts have also recently weighed in on DDOG. Wall Street Zen cut shares of Datadog from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Guggenheim set a $105.00 target price on Datadog in a report on Thursday, November 6th. Robert W. Baird boosted their price target on shares of Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. DA Davidson reaffirmed a “buy” rating and set a $225.00 price objective on shares of Datadog in a research report on Monday, February 2nd. Finally, Truist Financial dropped their target price on Datadog from $195.00 to $140.00 and set a “hold” rating on the stock in a report on Wednesday, January 7th. Thirty-six equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $184.38.

Datadog Stock Up 12.8%

Shares of NASDAQ DDOG opened at $128.60 on Tuesday. The firm has a market cap of $45.10 billion, a price-to-earnings ratio of 405.02, a price-to-earnings-growth ratio of 19.95 and a beta of 1.27. The company’s 50-day simple moving average is $134.40 and its 200-day simple moving average is $144.20. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29. Datadog has a 52-week low of $81.63 and a 52-week high of $201.69.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. The company 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 3.32%.The firm’s revenue for the quarter was up 29.2% on a year-over-year basis. During the same quarter last year, the firm 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. Equities analysts predict that Datadog will post 0.34 EPS for the current fiscal year.

Insider Activity at Datadog

In other Datadog news, CEO Olivier Pomel sold 11,195 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $137.93, for a total transaction of $1,544,126.35. Following the completion of the sale, the chief executive officer owned 518,133 shares in the company, valued at $71,466,084.69. This trade represents a 2.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Adam Blitzer sold 8,023 shares of the stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $154.61, for a total transaction of $1,240,436.03. Following the transaction, the chief operating officer owned 165,197 shares in the company, valued at $25,541,108.17. This trade represents a 4.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 538,917 shares of company stock valued at $86,804,288 over the last three months. Insiders own 8.70% of the company’s stock.

Institutional Trading of Datadog

Several institutional investors and hedge funds have recently bought and sold shares of DDOG. Brighton Jones LLC bought a new stake in shares of Datadog in the 4th quarter valued at approximately $209,000. Bison Wealth LLC acquired a new position in Datadog in the fourth quarter worth $228,000. Empowered Funds LLC increased its stake in Datadog by 7.0% during the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in shares of Datadog by 17.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after buying an additional 115 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new position in shares of Datadog in the 2nd quarter valued at about $509,000. 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 results beat consensus — Datadog reported $0.59 EPS vs. $0.55 expected and revenue of ~$953M, above estimates, showing ~29% y/y revenue growth. Datadog (DDOG) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Outlook materially raised — Datadog guided Q1 EPS to $0.490–0.510 (vs. street ~$0.35) and FY26 EPS to $2.080–2.160 (vs. consensus ~1.60), and gave revenue targets above expectations; that upside guidance is the main catalyst. Datadog Stock Surges After Earnings. Software Gets Some Rare Good News.
• Positive Sentiment: Operational strength and product momentum — Datadog reported strong cash flow ($1,050M operating, $915M free cash flow FY25), growth in large customers (603 $1M+ ARR customers vs. 462 a year ago), and GA launches (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability). Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Positive media coverage amplifies investor attention — major outlets highlighted the beat-and-raise, helping sentiment and flow into software names. Datadog Stock Surges After Earnings. Software Gets Some Rare Good News.
• Neutral Sentiment: Broader market tailwinds for software stocks (improving investor sentiment/Fear & Greed index) likely amplified the move, rather than company-specific news alone. Nasdaq Jumps Over 200 Points As Software Stocks Rebound
• Neutral Sentiment: Competitive/technology risks noted — analysis on AI agents suggests potential pressure on Datadog’s model over time; worth monitoring but not an immediate headwind to guidance-driven move. AI Agents Challenge Datadog’s Model While Valuation Signals Potential Upside
• Negative Sentiment: Some analysts trimmed price targets ahead of earnings (RBC, Cantor Fitzgerald, Jefferies lowered targets to ~$150–160); these cuts reflect valuation concerns and temper upside at current levels. RBC cuts price target on Datadog

Datadog Company Profile

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.