Datadog (NASDAQ:DDOG) Earns Sell Rating from Analysts at The Goldman Sachs Group

The Goldman Sachs Group initiated coverage on shares of Datadog (NASDAQ:DDOG) in a report published on Monday, Marketbeat.com reports. The firm issued a sell rating and a $113.00 price target on the stock.

Several other equities research analysts also recently weighed in on DDOG. BNP Paribas Exane upped their price objective on shares of Datadog from $160.00 to $210.00 in a report on Friday, November 7th. Capital One Financial upped their price target on shares of Datadog from $149.00 to $179.00 in a research note on Thursday, October 16th. Citigroup raised their price objective on shares of Datadog from $170.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday, November 12th. Barclays dropped their target price on Datadog from $215.00 to $195.00 and set an “overweight” rating on the stock in a report on Monday. Finally, Truist Financial decreased their price target on Datadog from $195.00 to $140.00 and set a “hold” rating for the company in a research note on Wednesday, January 7th. Thirty-two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $198.82.

Datadog Stock Performance

Shares of NASDAQ DDOG opened at $122.41 on Monday. Datadog has a 12-month low of $81.63 and a 12-month high of $201.69. The company has a market cap of $42.93 billion, a PE ratio of 394.87, a P/E/G ratio of 22.67 and a beta of 1.26. The stock has a 50 day simple moving average of $152.67 and a 200-day simple moving average of $146.59. The company has a current ratio of 3.66, a quick ratio of 3.66 and a debt-to-equity ratio of 0.29.

Datadog (NASDAQ:DDOG) last announced its earnings results on Thursday, November 6th. The company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.10. Datadog had a return on equity of 4.14% and a net margin of 3.32%.The firm had revenue of $885.65 million for the quarter, compared to the consensus estimate of $852.77 million. During the same quarter in the previous year, the business earned $0.46 EPS. The firm’s revenue for the quarter was up 28.4% on a year-over-year basis. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. On average, equities research analysts forecast that Datadog will post 0.34 EPS for the current year.

Insider Activity at Datadog

In other news, insider Yanbing Li sold 6,715 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $158.60, for a total transaction of $1,064,999.00. Following the completion of the sale, the insider directly owned 199,394 shares of the company’s stock, valued at $31,623,888.40. This trade represents a 3.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CTO Alexis Le-Quoc sold 43,106 shares of the business’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $133.93, for a total value of $5,773,186.58. Following the sale, the chief technology officer directly owned 301,458 shares in the company, valued at $40,374,269.94. This trade represents a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,074,988 shares of company stock worth $193,329,916. 8.70% of the stock is owned by corporate insiders.

Institutional Trading of Datadog

A number of hedge funds have recently bought and sold shares of DDOG. Rothschild Investment LLC raised its position in shares of Datadog by 126.6% during the 3rd quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after purchasing an additional 100 shares during the last quarter. Westside Investment Management Inc. increased its position in Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after buying an additional 75 shares in the last quarter. Physician Wealth Advisors Inc. raised its holdings in shares of Datadog by 315.2% in the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after acquiring an additional 145 shares during the last quarter. JPL Wealth Management LLC acquired a new position in shares of Datadog in the third quarter worth $27,000. Finally, Tripletail Wealth Management LLC purchased a new stake in shares of Datadog in the third quarter valued at $28,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: KeyCorp reiterated an Overweight stance and laid out optimistic FY2026 and quarterly EPS trajectories (FY2026 EPS ~ $0.65, well above consensus), plus a $170 price target — a clear fundamental upward signal for growth expectations.
• Positive Sentiment: Morgan Stanley upgraded Datadog, providing support from another major house that can help stabilise sentiment after negative headlines. Morgan Stanley upgrade
• Positive Sentiment: Long-form bullish analysis (Seeking Alpha) argues DDOG is a strong buy again, reinforcing momentum investors and longer-term buyers who focus on revenue growth and cloud/AI adoption. Seeking Alpha bullish thesis
• Neutral Sentiment: Options activity coverage (Benzinga) shows “whale” bets, signaling elevated speculative interest that can amplify intraday moves but doesn’t necessarily change fundamentals. Options whale activity
• Neutral Sentiment: Datadog remains a listed holding in cloud-focused ETFs (e.g., Fidelity Cloud Computing ETF coverage), meaning passive flows and thematic allocation could provide steady, if modest, support over time.
• Negative Sentiment: Goldman Sachs initiated coverage with a Sell rating and a $113 price target — a bearish signal from a high-profile firm that likely contributed to intraday selling pressure. Goldman Sachs sell initiation
• Negative Sentiment: Zacks published a note highlighting that Datadog fell more than the broader market, summarizing the day’s downside and linking the move to the mixed analyst headlines and positioning. Zacks coverage of the drop

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.