BTIG Research Lowers Datadog (NASDAQ:DDOG) Price Target to $170.00

Datadog (NASDAQ:DDOG) had its target price decreased by research analysts at BTIG Research from $221.00 to $170.00 in a report issued on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the stock. BTIG Research’s price target would indicate a potential upside of 33.51% from the stock’s current price.

DDOG has been the topic of several other research reports. BMO Capital Markets lowered their price objective on shares of Datadog from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Robert W. Baird increased their price target on shares of Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Truist Financial decreased their price target on shares of Datadog from $195.00 to $140.00 and set a “hold” rating on the stock in a research report on Wednesday, January 7th. Stifel Nicolaus set a $160.00 price objective on shares of Datadog and gave the stock a “buy” rating in a report on Thursday, January 22nd. Finally, DA Davidson reiterated a “buy” rating and issued a $225.00 target price on shares of Datadog in a research note on Monday, February 2nd. Thirty-seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $179.50.

Datadog Stock Performance

Shares of DDOG stock opened at $127.33 on Tuesday. The company has a market capitalization of $44.65 billion, a price-to-earnings ratio of 410.74, a P/E/G ratio of 23.16 and a beta of 1.27. Datadog has a 1-year low of $81.63 and a 1-year high of $201.69. The company has a current ratio of 3.38, a quick ratio of 3.66 and a debt-to-equity ratio of 0.26. The stock’s fifty day simple moving average is $133.30 and its 200-day simple moving average is $143.94.

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. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The company had revenue of $953.19 million during the quarter, compared to the consensus estimate of $916.53 million. During the same quarter in the prior year, the firm earned $0.49 EPS. The company’s 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. On average, sell-side analysts predict that Datadog will post 0.34 earnings per share for the current fiscal year.

Insider Transactions at Datadog

In related news, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $154.05, for a total transaction of $8,305,143.60. Following the completion of the transaction, the chief technology officer owned 295,448 shares in the company, valued at approximately $45,513,764.40. The trade was a 15.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Olivier Pomel sold 100,754 shares of the stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $181.18, for a total value of $18,254,609.72. Following the completion of the sale, the chief executive officer owned 533,358 shares of the company’s stock, 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. Over the last 90 days, insiders sold 538,917 shares of company stock worth $86,804,288. Company insiders own 8.70% of the company’s stock.

Institutional Investors Weigh In On Datadog

A number of hedge funds and other institutional investors have recently modified their holdings of DDOG. Brighton Jones LLC bought a new position in Datadog in the 4th quarter valued at approximately $209,000. Bison Wealth LLC bought a new position in shares of Datadog during the fourth quarter valued at $228,000. Empowered Funds LLC raised its stake in shares of 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 acquiring an additional 672 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Datadog by 17.6% during the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC bought a new stake in shares of Datadog in the second quarter worth $509,000. Institutional investors and hedge funds own 78.29% of the company’s stock.

Key Stories 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.