Datadog (NASDAQ:DDOG) Given New $160.00 Price Target at Wolfe Research

Datadog (NASDAQ:DDOG) had its target price reduced by Wolfe Research from $185.00 to $160.00 in a note issued to investors on Tuesday,MarketScreener reports. The brokerage currently has an “outperform” rating on the stock. Wolfe Research’s price objective suggests a potential upside of 24.42% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the stock. Raymond James Financial lifted their target price on shares of Datadog from $170.00 to $205.00 in a research report on Thursday, November 6th. Macquarie Infrastructure increased their target price on Datadog from $175.00 to $220.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Cantor Fitzgerald cut their price target on Datadog from $220.00 to $150.00 and set an “overweight” rating for the company in a research note on Friday. Truist Financial reduced their price target on shares of Datadog from $195.00 to $140.00 and set a “hold” rating for the company in a research report on Wednesday, January 7th. Finally, Citigroup dropped their price objective on shares of Datadog from $200.00 to $175.00 and set a “buy” rating on the stock in a report on Friday, January 16th. Thirty-six analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $184.38.

Datadog Trading Up 12.8%

Datadog stock opened at $128.60 on Tuesday. Datadog has a one year low of $81.63 and a one year high of $201.69. The business’s fifty day moving average is $134.40 and its 200 day moving average is $144.20. The stock has a market capitalization of $45.10 billion, a PE ratio of 405.02, a price-to-earnings-growth ratio of 19.95 and a beta of 1.27. 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 (NASDAQ:DDOG) last posted its earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.04. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The business had revenue of $953.19 million for the quarter, compared to analysts’ expectations of $916.53 million. During the same quarter in the prior year, the business earned $0.49 EPS. The business’s revenue for the quarter 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 EPS for the current year.

Insiders Place Their Bets

In related news, COO Adam Blitzer sold 8,023 shares of the company’s 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 completion of the transaction, the chief operating officer owned 165,197 shares in the company, valued at approximately $25,541,108.17. This represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Olivier Pomel sold 11,195 shares of the business’s stock in a transaction 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 approximately $71,466,084.69. The trade was a 2.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 538,917 shares of company stock worth $86,804,288 over the last quarter. Company insiders own 8.70% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Brighton Jones LLC purchased a new stake in shares of Datadog during the fourth quarter valued at about $209,000. Bison Wealth LLC acquired a new position in shares of Datadog in the fourth quarter valued at about $228,000. Empowered Funds LLC raised its stake in shares of Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock worth $1,023,000 after purchasing 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 purchased a new stake in Datadog in the second quarter valued at $509,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about 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.