Scotiabank Issues Pessimistic Forecast for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its price objective lowered by equities research analysts at Scotiabank from $180.00 to $160.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “sector outperform” rating on the stock. Scotiabank’s target price suggests a potential upside of 23.39% from the stock’s current price.

Other analysts have also issued reports about the stock. UBS Group set a $195.00 price target on shares of Datadog in a research report on Monday. Jefferies Financial Group cut their price target on shares of Datadog from $180.00 to $160.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Wolfe Research decreased their target price on Datadog from $185.00 to $160.00 and set an “outperform” rating for the company in a research report on Tuesday. Canadian Imperial Bank of Commerce upgraded Datadog from a “neutral” rating to a “sector outperform” rating and set a $240.00 price objective on the stock in a research note on Friday, November 7th. Finally, Guggenheim set a $105.00 target price on shares of Datadog in a research note on Thursday, November 6th. Thirty-seven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $180.10.

Datadog Stock Up 13.7%

Shares of DDOG stock opened at $129.67 on Wednesday. Datadog has a 1 year low of $81.63 and a 1 year high of $201.69. The company has a debt-to-equity ratio of 0.29, a quick ratio of 3.66 and a current ratio of 3.66. The stock has a market cap of $45.47 billion, a PE ratio of 418.29, a price-to-earnings-growth ratio of 20.37 and a beta of 1.27. The business’s fifty day moving average is $133.87 and its 200-day moving average is $144.06.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 EPS 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 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 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. Equities analysts expect that Datadog will post 0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction on Monday, November 17th. The stock was sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the completion of the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at $96,633,802.44. The trade was a 15.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Alexis Le-Quoc sold 53,912 shares of the company’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $154.05, for a total value of $8,305,143.60. Following the completion of the sale, the chief technology officer directly owned 295,448 shares of the company’s stock, valued at approximately $45,513,764.40. This trade represents a 15.43% decrease in their ownership of the stock. 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. Corporate insiders own 8.70% of the company’s stock.

Institutional Trading of Datadog

A number of large investors have recently bought and sold shares of DDOG. BI Asset Management Fondsmaeglerselskab A S boosted its position in Datadog by 4.4% during the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 54,030 shares of the company’s stock worth $7,348,000 after acquiring an additional 2,261 shares during the last quarter. Pinebridge Investments LLC acquired a new position in shares of Datadog during the 4th quarter worth about $24,416,000. BIT Capital GmbH increased its position in Datadog by 125.0% during the fourth quarter. BIT Capital GmbH now owns 658,321 shares of the company’s stock worth $89,525,000 after buying an additional 365,684 shares during the last quarter. Parallel Advisors LLC raised its stake in Datadog by 38.6% in the 4th quarter. Parallel Advisors LLC now owns 8,648 shares of the company’s stock valued at $1,176,000 after acquiring an additional 2,409 shares during the period. Finally, Total Wealth Planning & Management Inc. bought a new position in shares of Datadog in the fourth quarter valued at about $362,000. 78.29% of the stock is owned by institutional investors.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat — Datadog reported $953M revenue (up 29% YoY) and $0.59 adjusted EPS, beating consensus and prompting the post?earnings rally. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Bullish guidance — Datadog raised guidance: Q1 EPS 0.49–0.51 (vs. consensus ~0.35) and FY 2026 EPS 2.08–2.16 (well above prior street numbers), which supports multiple expansion despite high valuation. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI product momentum — management highlighted new AI features (Bits AI SRE Agent, data observability, storage management, feature flags) and growing large?customer base (603 $1M+ ARR customers), underpinning revenue durability. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Strong cash flow — Datadog reported ~$1.05B operating cash flow and ~$915M free cash flow for FY2025, improving the quality of growth and supporting investor confidence. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Sector tailwinds — strategists say recent software selloff (AI disruption fears) may present a buying opportunity for high?quality names like Datadog, helping recovery in the group. AI disruption fears create buying chance in US software stocks, strategists say
• Neutral Sentiment: Analyst notes mixed — several firms lowered price targets (Wolfe, RBC, Needham) but many kept Buy/Outperform ratings; that reduces upside projections even as coverage remains constructive. Benzinga
• Neutral Sentiment: Earnings call/transcript available — investors can drill into management commentary for details on product monetization, AI adoption, and margin assumptions. Datadog (DDOG) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Valuation concerns remain — high P/E and public comments (e.g., Jim Cramer calling it “too expensive”) mean some investors may take profits despite strong results. Jim Cramer on Datadog: “There Are Cheap Enterprise Software Stocks, Just Not This One”

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.