Datadog (NASDAQ:DDOG) Price Target Lowered to $155.00 at Needham & Company LLC

Datadog (NASDAQ:DDOG) had its price objective cut by Needham & Company LLC from $220.00 to $155.00 in a research report released on Tuesday,Benzinga reports. They currently have a buy rating on the stock.

Several other equities research analysts have also issued reports on DDOG. Canaccord Genuity Group dropped their target price on shares of Datadog from $225.00 to $210.00 and set a “buy” rating for the company in a research report on Friday, December 19th. DA Davidson restated a “buy” rating and set a $225.00 price target on shares of Datadog in a research report on Monday, February 2nd. Citigroup lowered their price objective on shares of Datadog from $200.00 to $175.00 and set a “buy” rating for the company in a research note on Friday, January 16th. Jefferies Financial Group reduced their price target on Datadog from $180.00 to $160.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Finally, UBS Group set a $195.00 target price on shares of Datadog in a research note on Monday. Thirty-seven analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $181.88.

Datadog Trading Up 13.7%

NASDAQ:DDOG opened at $129.67 on Tuesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.66 and a quick ratio of 3.66. Datadog has a 1 year low of $81.63 and a 1 year high of $201.69. The company has a market cap of $45.47 billion, a P/E ratio of 418.29, a P/E/G ratio of 20.37 and a beta of 1.27. The stock’s fifty day moving average price is $133.87 and its two-hundred day moving average price is $144.06.

Datadog (NASDAQ:DDOG) last posted its earnings results 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. Datadog had a return on equity of 4.14% and a net margin of 3.32%.The business had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. During the same quarter in the previous year, the firm earned $0.49 EPS. The company’s quarterly revenue was up 29.2% compared to the same quarter last year. 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, analysts expect that Datadog will post 0.34 EPS for the current year.

Insider Buying and Selling at Datadog

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

Institutional Trading of Datadog

A number of large investors have recently added to or reduced their stakes in DDOG. Rothschild Investment LLC boosted its holdings in shares of Datadog by 126.6% in the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after purchasing an additional 100 shares during the period. Physician Wealth Advisors Inc. boosted its stake in 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 during the period. Westside Investment Management Inc. increased its position in Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after acquiring an additional 75 shares during the last quarter. JPL Wealth Management LLC purchased a new stake in shares of Datadog in the third quarter valued at $27,000. Finally, Tripletail Wealth Management LLC bought a new stake in shares of Datadog in the 3rd quarter worth about $28,000. Institutional investors own 78.29% of the company’s stock.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and strong forward guidance — Datadog posted $953M revenue (+29% YoY) and $0.59 adjusted EPS, topping Street estimates, and raised Q1 and FY2026 guidance well above consensus (Q1 EPS guide 0.49–0.51 vs. ~0.35 estimate; FY EPS guide 2.08–2.16 vs. ~1.60). This is the primary catalyst for the rally. Read More.
• Positive Sentiment: Product and customer momentum — Datadog announced GA launches (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) and reported 603 customers with $1M+ ARR (up from 462), supporting recurring revenue durability and AI-led upsell potential. Read More.
• Positive Sentiment: Strong cash flow metrics highlighted — management cited robust operating and free cash flow ($1,050M operating; $915M free cash flow for FY2025), which reduces execution risk and supports valuation debate. Read More.
• Neutral Sentiment: Market context: software rebound and AI narrative — strategists say recent AI-driven sell-off created buying opportunities for high-quality software names, helping DDOG’s recovery alongside broader software strength. Read More.
• Neutral Sentiment: Coverage and media commentary — multiple outlets (Barron’s, Zacks, Proactive, Seeking Alpha transcript) covered the beat and call; coverage can amplify intraday flows but is informational rather than directional. Read More.
• Neutral Sentiment: Short-interest note is not meaningful — filings show effectively zero reported short interest in the latest snapshot, so short-covering likely did not materially drive the move. (Data published 2/10)
• Negative Sentiment: Analyst price-target trims — several firms lowered targets ahead of or after earnings (Needham to $155, Wolfe to $160, RBC/Cantor/Jefferies to ~$150–160) which tempers the near-term valuation narrative despite buy/outperform ratings. Read More.

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.