Royal Bank Of Canada Cuts Datadog (NASDAQ:DDOG) Price Target to $150.00

Datadog (NASDAQ:DDOG) had its price target reduced by Royal Bank Of Canada from $175.00 to $150.00 in a research report released on Monday morning, MarketBeat reports. They currently have an outperform rating on the stock.

Several other brokerages also recently issued reports on DDOG. BNP Paribas Exane cut their price target on shares of Datadog from $210.00 to $175.00 and set an “outperform” rating for the company in a report on Thursday, January 15th. BTIG Research raised their price objective on shares of Datadog from $184.00 to $221.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. Rosenblatt Securities reduced their target price on Datadog from $200.00 to $185.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Capital One Financial decreased their price target on Datadog from $219.00 to $156.00 and set an “overweight” rating on the stock in a research report on Friday, January 16th. Finally, Barclays cut their price objective on Datadog from $215.00 to $195.00 and set an “overweight” rating for the company in a research report on Monday, January 12th. Thirty-seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $179.50.

Datadog Trading Down 1.8%

Shares of DDOG opened at $127.33 on Monday. 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 has a market cap of $44.65 billion, a PE ratio of 410.74, a PEG 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 stock has a 50 day simple moving average of $133.30 and a 200-day simple moving average of $143.94.

Datadog (NASDAQ:DDOG) last announced its quarterly 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 3.14%.The firm had revenue of $953.19 million for the quarter, compared to analysts’ expectations of $916.53 million. During the same period in the prior year, the business posted $0.49 earnings per share. The business’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 EPS for the current fiscal year.

Insider Transactions at Datadog

In other Datadog news, CEO Olivier Pomel sold 11,195 shares of the business’s stock in a transaction dated 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 directly owned 518,133 shares of the company’s stock, valued at approximately $71,466,084.69. The trade was a 2.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Adam Blitzer sold 8,023 shares of the company’s stock in a transaction dated 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 transaction, the chief operating officer owned 165,197 shares in the company, valued at approximately $25,541,108.17. The trade was a 4.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 538,917 shares of company stock valued at $86,804,288 over the last quarter. Corporate insiders own 8.70% of the company’s stock.

Hedge Funds Weigh In On Datadog

Large investors have recently bought and sold shares of the business. PKO Investment Management Joint Stock Co acquired a new position in shares of Datadog in the third quarter valued at $1,709,000. Munro Partners acquired a new position in Datadog in the 3rd quarter valued at about $7,120,000. Hartford Investment Management Co. bought a new position in Datadog in the 3rd quarter valued at about $2,689,000. IQ EQ FUND MANAGEMENT IRELAND Ltd raised its holdings in Datadog by 134.5% in the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 31,142 shares of the company’s stock valued at $4,435,000 after acquiring an additional 17,860 shares during the period. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its position in Datadog by 37.9% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company’s stock worth $15,555,000 after acquiring an additional 30,008 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Datadog News Roundup

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.

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.