Datadog (NASDAQ:DDOG) Price Target Cut to $155.00 by Analysts at Needham & Company LLC

Datadog (NASDAQ:DDOG) had its price objective decreased by equities research analysts at Needham & Company LLC from $220.00 to $155.00 in a report released on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the stock. Needham & Company LLC’s price objective suggests a potential upside of 18.95% from the company’s current price.

A number of other analysts have also commented on DDOG. Scotiabank dropped their price target on Datadog from $217.00 to $180.00 and set a “sector outperform” rating on the stock in a report on Tuesday, January 27th. Citigroup lowered their target price on Datadog from $200.00 to $175.00 and set a “buy” rating on the stock in a research note on Friday, January 16th. Daiwa Securities Group started coverage on shares of Datadog in a report on Tuesday, January 27th. They set a “buy” rating and a $190.00 price objective for the company. KeyCorp dropped their target price on shares of Datadog from $170.00 to $155.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 4th. Finally, Rosenblatt Securities decreased their price target on shares of Datadog from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Friday, January 30th. Thirty-six investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Datadog has an average rating of “Moderate Buy” and a consensus target price of $182.75.

Datadog Stock Up 14.3%

Shares of NASDAQ DDOG traded up $16.29 during midday trading on Tuesday, hitting $130.30. 13,355,127 shares of the stock traded hands, compared to its average volume of 6,461,598. The business has a 50 day moving average price of $134.40 and a two-hundred day moving average price of $144.20. Datadog has a one year low of $81.63 and a one 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 company has a market cap of $45.69 billion, a PE ratio of 420.33, a P/E/G ratio of 19.95 and a beta of 1.27.

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 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 last year, the firm earned $0.49 EPS. The firm’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, equities analysts predict that Datadog will post 0.34 EPS for the current year.

Insider Activity

In related news, COO Adam Blitzer sold 8,023 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $154.61, for a total value of $1,240,436.03. Following the sale, the chief operating officer directly owned 165,197 shares of the company’s stock, valued at $25,541,108.17. This trade represents a 4.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CTO Alexis Le-Quoc sold 32,418 shares of the business’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $140.99, for a total transaction of $4,570,613.82. Following the completion of the transaction, the chief technology officer directly owned 301,458 shares of the company’s stock, valued at approximately $42,502,563.42. This represents a 9.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 538,917 shares of company stock valued at $86,804,288. 8.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Datadog

Large investors have recently modified their holdings of the company. Nomura Asset Management Co. Ltd. boosted its stake in Datadog by 8.0% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 152,674 shares of the company’s stock worth $20,762,000 after buying an additional 11,348 shares in the last quarter. AXS Investments LLC lifted its holdings in shares of Datadog by 2.1% in the 4th quarter. AXS Investments LLC now owns 4,795 shares of the company’s stock worth $652,000 after acquiring an additional 100 shares during the last quarter. Founders Financial Securities LLC boosted its stake in shares of Datadog by 65.6% in the 4th quarter. Founders Financial Securities LLC now owns 2,382 shares of the company’s stock valued at $324,000 after purchasing an additional 944 shares in the last quarter. MUFG Securities EMEA plc grew its holdings in shares of Datadog by 115.6% during the 4th quarter. MUFG Securities EMEA plc now owns 13,342 shares of the company’s stock valued at $1,814,000 after purchasing an additional 7,154 shares during the last quarter. Finally, Gulf International Bank UK Ltd raised its position in Datadog by 14.4% in the 4th quarter. Gulf International Bank UK Ltd now owns 15,953 shares of the company’s stock worth $2,169,000 after purchasing an additional 2,012 shares during the period. 78.29% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat expectations — $0.59 EPS vs. ~$0.55 consensus and revenue of $953M (vs. ~916M), showing ~29% Y/Y revenue growth; market commentary emphasized the clean beat and surprising strength. Article Title
• Positive Sentiment: Management raised guidance materially — Q1 EPS guide of $0.490–$0.510 vs. consensus ~$0.35 and FY2026 EPS guide of $2.080–$2.160 vs. consensus ~$1.60; Q1 and FY revenue guides also topped expectations, which drove the strong intraday move. Press Release
• Positive Sentiment: Operational wins: 29% revenue growth, expansion in $1M+ ARR customers (603 vs. 462 a year ago), strong operating and free cash flow and new product rollouts (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) that support upsell and retention. Press Release
• Neutral Sentiment: Analyst sentiment ahead of the print was generally optimistic, and several firms kept “outperform”/positive stances even while adjusting models — that support remains but with more conservative targets. Article Title
• Neutral Sentiment: Broader market tailwinds for software stocks and improving investor sentiment likely amplified the move as the Nasdaq and software group rallied. Article Title
• Negative Sentiment: Multiple firms trimmed price targets in the last 48 hours (Wolfe, RBC, Cantor Fitzgerald, Jefferies), which caps some near-term upside despite maintained outperform ratings — signals caution on valuation and near-term model assumptions. Wolfe Research RBC Coverage
• Negative Sentiment: Competitive/market risks: analysis flagged that emerging AI agents could challenge parts of Datadog’s model, a thematic risk investors will watch as AI tooling evolves. Article Title

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.