Datadog's stock fell 4.2% today, making it the worst performer in the S&P 500, reflecting market concerns about its future growth prospects amid increasing competition.
Morgan Stanley upgraded Datadog from Equal-weight to Overweight, believing that despite potential headwinds from OpenAI, the company will benefit from several underlying growth trends driven by public cloud growth and digital transformation initiatives. Analysts noted that Datadog's newer product categories, including cloud security, database monitoring, and incident response, are starting to contribute meaningfully to growth, providing new vectors for success in its core business.
Today's stock fluctuations could impact investor confidence in Datadog, particularly as it faces heightened competition and market uncertainties that may challenge its growth trajectory.
Wall Street analysts forecast DDOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DDOG is 207.39 USD with a low forecast of 140.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
Wall Street analysts forecast DDOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DDOG is 207.39 USD with a low forecast of 140.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 140.560
Low
140.00
Averages
207.39
High
255.00
Current: 140.560
Low
140.00
Averages
207.39
High
255.00
Scotiabank
Outperform -> NULL
downgrade
$217 -> $180
2026-01-27
New
Reason
Scotiabank
Price Target
$217 -> $180
AI Analysis
2026-01-27
New
downgrade
Outperform -> NULL
Reason
Scotiabank lowered the firm's price target on Datadog to $180 from $217 and keeps an Outperform rating on the shares. The firm has updated its price target after sizing the company's revenue to OpenAI, framing "realistic" expectations for 2026, the analyst tells investors. Scotiabank notes recent checks show Datadog remains the standard for monitoring modern environments, with no signs of pricing pressure.
Daiwa
NULL -> Buy
initiated
$190
2026-01-27
New
Reason
Daiwa
Price Target
$190
2026-01-27
New
initiated
NULL -> Buy
Reason
Daiwa initiated coverage of Datadog with a Buy rating and $190 price target.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DDOG
Unlock Now
Stifel
Hold -> Buy
upgrade
$205 -> $160
2026-01-22
Reason
Stifel
Price Target
$205 -> $160
2026-01-22
upgrade
Hold -> Buy
Reason
Stifel last night upgraded Datadog to Buy from Hold with a price target of $160, down from $205. Recent channel checks indicate the company will post "another larger than typical" quarterly beat in Q4, driven by accelerating core growth and continued strong gains, the analyst tells investors in a research note. The firm believes Datadog will guide 2026 revenue to $4.1B, implying "conservative" 19% core growth and that OpenAI Integration remains at its current $90M per quarter run-rate. The stock's valuation "appears relatively attractive for one of the few names we cover with accelerating core growth," contends Stifel.
TD Cowen
Buy
downgrade
$235 -> $200
2026-01-21
Reason
TD Cowen
Price Target
$235 -> $200
2026-01-21
downgrade
Buy
Reason
TD Cowen lowered the firm's price target on Datadog to $200 from $235 and keeps a Buy rating on the shares. The firm updated its model ahead of its quarterly results where they expect a strong beat versus guide of +24%. Cowen thinks FY26 revenue guide is most likely to be 19-20% and should be well received.
About DDOG
Datadog, Inc. provides an observability and security platform for cloud applications. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for its customers’ entire technology stack. Its platform consists of products that can be used individually or as a unified solution and includes a marketplace where customers can access products built by its partners on top of the Datadog platform. Its products include Infrastructure Monitoring, Application Performance Monitoring, Log Management, Digital Experience Monitoring, Continuous Profiler, Database Monitoring, Data Observability, Universal Service Monitoring, Network Monitoring and others. It owns Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
