Datadog (NASDAQ:DDOG) Earns Buy Rating from Rosenblatt Securities

Datadog (NASDAQ:DDOG)‘s stock had its “buy” rating restated by equities researchers at Rosenblatt Securities in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $185.00 target price on the stock. Rosenblatt Securities’ price target would indicate a potential upside of 46.67% from the stock’s previous close.

Several other brokerages have also weighed in on DDOG. BMO Capital Markets decreased their price objective on Datadog from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday, January 29th. Raymond James Financial cut their target price on shares of Datadog from $205.00 to $170.00 and set an “outperform” rating for the company in a research report on Tuesday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Datadog in a research note on Wednesday, January 21st. Needham & Company LLC lowered their price target on shares of Datadog from $220.00 to $155.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, Guggenheim set a $105.00 price objective on shares of Datadog in a report on Thursday, November 6th. Thirty-seven equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $179.50.

Datadog Trading Down 0.9%

Shares of DDOG stock opened at $126.13 on Wednesday. The company has a quick ratio of 3.66, a current ratio of 3.38 and a debt-to-equity ratio of 0.26. The firm has a market cap of $44.23 billion, a P/E ratio of 406.87, a PEG ratio of 22.75 and a beta of 1.27. The company has a 50 day moving average of $132.76 and a 200-day moving average of $143.82. Datadog has a 12-month low of $81.63 and a 12-month high of $201.69.

Datadog (NASDAQ:DDOG) last posted 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. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business had revenue of $953.19 million for the quarter, compared to the consensus estimate of $916.53 million. During the same quarter in the prior year, the business earned $0.49 earnings per share. Datadog’s revenue for the quarter was up 29.2% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Sell-side analysts anticipate that Datadog will post 0.34 earnings per share for the current year.

Insider Activity at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of the business’s stock in a transaction 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 directly owned 295,448 shares in the company, valued at $45,513,764.40. The trade was a 15.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 value of $18,254,609.72. Following the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at $96,633,802.44. This represents a 15.89% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, 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

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of Datadog by 30.3% during the 3rd quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock valued at $5,966,877,000 after acquiring an additional 9,748,738 shares during the last quarter. State Street Corp raised its stake in Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock valued at $1,955,547,000 after purchasing an additional 7,091,075 shares in the last quarter. Norges Bank bought a new stake in Datadog during the fourth quarter valued at approximately $469,461,000. Jennison Associates LLC lifted its position in Datadog by 43.7% during the fourth quarter. Jennison Associates LLC now owns 7,623,993 shares of the company’s stock valued at $1,036,787,000 after purchasing an additional 2,316,994 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Datadog by 119.2% in the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares in the last quarter. Hedge funds and other institutional investors 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 results beat consensus — revenue, EPS and ARR growth topped estimates and management highlighted AI-driven demand; the print triggered an immediate rally earlier in the week. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Multiple analysts reiterated or raised bullish ratings/targets (DA Davidson buy with $225 PT; Rosenblatt reaffirmed buy at $185; Capital One nudged its target higher to $157), supporting upside expectations. Capital One adjusts price target on Datadog to $157
• Neutral Sentiment: Short-interest data reported as a large increase appears to be a data error (0 shares / NaN); current days-to-cover is reported as ~0 — this is unreliable and likely not a true market signal. (internal data entry)
• Neutral Sentiment: Some shops issued mixed/market‑perform notes (Citizens Jmp reaffirmed market perform) — the street is divided, which can produce volatility but not a clear directional signal. Citizens Jmp market perform note
• Negative Sentiment: Analyst and media caution: several pieces warn about slowing 2026 growth, rising costs and a premium valuation despite the beat — these critiques are pressuring the multiple. 3 Reasons to Stay Away From Datadog Stock Despite Q4 Earnings Beat
• Negative Sentiment: Competitive/comparative pieces argue other cloud names (eg. MongoDB) may be better buys as AI/Atlas exposure looks stronger — increased competition and capital allocation trade-offs are a headwind narrative. MongoDB vs. Datadog: Which Cloud Software Stock is a Better Buy Now?

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.