Datadog (NASDAQ:DDOG) Price Target Cut to $165.00 by Analysts at Barclays

Datadog (NASDAQ:DDOG) had its price objective decreased by Barclays from $195.00 to $165.00 in a research note published on Wednesday morning,Benzinga reports. Barclays currently has an overweight rating on the stock.

Other analysts have also recently issued research reports about the company. Rosenblatt Securities restated a “buy” rating and set a $185.00 price objective on shares of Datadog in a research note on Wednesday. Mizuho decreased their price objective on shares of Datadog from $200.00 to $170.00 and set an “outperform” rating for the company in a report on Wednesday, January 21st. Oppenheimer boosted their target price on shares of Datadog from $165.00 to $195.00 and gave the company an “outperform” rating in a research note on Friday, October 17th. Scotiabank dropped their price objective on shares of Datadog from $180.00 to $160.00 and set a “sector outperform” rating on the stock in a research note on Wednesday. Finally, BTIG Research decreased their target price on Datadog from $221.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday. Thirty-seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Datadog has a consensus rating of “Moderate Buy” and an average price target of $179.50.

Datadog Trading Up 1.8%

DDOG stock traded up $2.32 during midday trading on Wednesday, reaching $129.65. 753,730 shares of the company’s stock traded hands, compared to its average volume of 6,518,568. Datadog has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The business has a 50-day moving average price of $133.30 and a two-hundred day moving average price of $143.94. The company has a market capitalization of $45.46 billion, a P/E ratio of 418.22, a PEG ratio of 23.16 and a beta of 1.27. The company has a debt-to-equity ratio of 0.26, a current ratio of 3.38 and a quick ratio of 3.66.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $953.19 million during the quarter, compared to analysts’ expectations of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The firm’s revenue was up 29.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.49 EPS. 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 research analysts forecast that Datadog will post 0.34 EPS for the current fiscal 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 stock was sold at an average price of $154.61, for a total transaction of $1,240,436.03. Following the transaction, the chief operating officer directly owned 165,197 shares of the company’s stock, valued at approximately $25,541,108.17. The trade was a 4.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Olivier Pomel sold 11,195 shares of Datadog stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $137.93, for a total value of $1,544,126.35. Following the transaction, the chief executive officer directly owned 518,133 shares in the company, valued at approximately $71,466,084.69. This trade represents a 2.11% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 538,917 shares of company stock worth $86,804,288. 8.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Datadog

Hedge funds have recently modified their holdings of the business. Westside Investment Management Inc. lifted its stake in shares of Datadog by 74.3% in the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock valued at $27,000 after buying an additional 75 shares during the period. Rothschild Investment LLC raised its position in shares of Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after acquiring an additional 100 shares during the last quarter. Tripletail Wealth Management LLC bought a new stake in shares of Datadog during the third quarter worth approximately $28,000. Physician Wealth Advisors Inc. increased its holdings in Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock valued at $27,000 after purchasing an additional 145 shares during the last quarter. Finally, JPL Wealth Management LLC acquired a new stake in Datadog in the third quarter worth $27,000. 78.29% of the stock is owned by institutional investors.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat and upbeat metrics — Datadog reported Q4 revenue of $953M (+29% YoY) and beat EPS estimates, with strong ARR and cash flow commentary that powered the recent rally. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: AI positioning seen as an upside — Analysts and commentaries argue AI fears are overstated and Datadog’s observability/security tools should benefit from AI deployments, supporting a multi-quarter revenue runway. Datadog: AI Isn’t The Main Problem
• Positive Sentiment: Bullish analyst actions and reaffirmations — Several brokers (e.g., DA Davidson, Rosenblatt, Capital One) reiterated buy/overweight views or raised targets after results, keeping upside scenarios alive. Benzinga coverage of analyst notes
• Neutral Sentiment: Recent strong short‑term returns — The stock has had a sharp short-term rebound (an ~8.4% weekly gain and ~52% three‑year gain context), which increases the chance of near-term profit-taking and higher volatility. The 8.4% return this week takes Datadog’s shareholders three-year gains to 52%
• Neutral Sentiment: Odd/flat short‑interest data — Recent reports show anomalous short‑interest figures (zero shares reported), which muddles interpretation of potential squeeze dynamics; treat this data with caution.
• Negative Sentiment: Analyst price‑target cuts — Several shops trimmed targets (Needham, Wolfe, BTIG, Barclays, Scotiabank among others), signaling caution on valuation despite the beat; those revisions can cap near‑term upside. Benzinga coverage of analyst price-target moves
• Negative Sentiment: Sector AI fear & rotation — Broader AI‑driven software volatility and headlines about AI disruption have created a pullback in the group, which pressured Datadog after its post‑earnings surge. AI disruption fears create buying chance in US software stocks, strategists say

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.