Analysts Forecast Triple-Digit Gains for Datadog and Atlassian
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy DDOG?
Source: NASDAQ.COM
- Datadog Market Share Growth: Datadog continues to gain market share in observability software, with Q3 revenue increasing 28% to $886 million and remaining performance obligations (RPO) rising 53% to $2.8 billion, indicating its leadership in AI for IT operations and expected benefits from AI advancements in the future.
- Atlassian Strong Financial Performance: Atlassian reported a 21% revenue increase to $1.4 billion in the September quarter, with RPO jumping 42% to $3.3 billion and non-GAAP earnings rising 35% to $1.04 per share, highlighting its competitive advantage in work management software, particularly in DevOps and marketing sectors.
- AI Technology Boosting Business Development: Datadog's Watchdog AI engine and Atlassian's Rovo generative AI assistant enhance efficiency for IT and non-technical teams, with Datadog recognized by Forrester as a leader in AI for IT operations and Atlassian acknowledged by Gartner for its generative AI technologies, showcasing both companies' strategic focus on innovation.
- Optimistic Market Outlook: Despite a 24% decline in the S&P North American Technology Software Index since September 2025, Morgan Stanley's survey indicates that software will be the fastest-growing IT sector in 2026, with analysts optimistic about Datadog and Atlassian's future performance, projecting adjusted earnings growth rates of 19% and 22%, respectively.
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Analyst Views on DDOG
Wall Street analysts forecast DDOG stock price to rise
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 116.460
Low
140.00
Averages
207.39
High
255.00
Current: 116.460
Low
140.00
Averages
207.39
High
255.00
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.
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- Market Panic Intensifies: Jefferies analysts highlight that the rapid advancement of artificial intelligence could disrupt traditional business models, leading to sell-offs in sectors like software-as-a-service, insurance, logistics, and real estate, with the iShares Expanded Tech-Software Sector ETF (IGV) down over 23% this year, entering a bear market, reflecting investor anxiety about the future.
- AI Risk Stock Basket: Jefferies has created an 'AI risk' basket comprising 150 stocks with market caps above $1 billion that face potential risks such as asset repricing, demand substitution, and labor substitution, indicating a heightened vigilance among investors regarding the potential impacts of AI.
- Unity Software Struggles: Unity Software's stock has plunged 59% in 2026, with analysts noting that AI content may lower switching costs, allowing developers to more easily recreate and migrate assets, thereby weakening the moat-like appeal of Unity's ecosystem and exacerbating investor fears.
- Other Affected Companies: In addition to Unity, companies like Datadog, MongoDB, and ServiceNow are also impacted by AI disruption fears, particularly as MongoDB's moat could be threatened by AI coding tools, reducing developers' reliance on a single database architecture.
See More
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- Economic Data Impact: The US January PPI rose 0.5% month-over-month, exceeding expectations of 0.3%, while the Chicago PMI unexpectedly increased to 57.7, demonstrating economic resilience, although market speculation regarding Fed rate cuts was dampened.
- Rising Oil Prices Pressure: WTI crude oil prices surged over 2% to a 7-month high due to President Trump's pessimistic remarks on Iranian nuclear negotiations, exacerbating geopolitical risks that could further impact airline profits, leading to declines in related stocks.
See More
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- Massive Investment Commitment: Amazon has announced a strategic partnership with OpenAI worth up to $50 billion, including an initial investment of $15 billion, with an additional $35 billion contingent on OpenAI meeting specific milestones, significantly enhancing Amazon's competitive edge in the AI sector.
- Infrastructure Expansion: OpenAI will leverage Amazon Web Services (AWS) infrastructure, committing to deploy 2 gigawatts of Trainium AI chips, which not only boosts OpenAI's computational capabilities but also presents new growth opportunities for Amazon's cloud services business.
- Market Competitive Advantage: This partnership positions Amazon more favorably against competitors like Microsoft and Google in the AI market, particularly by gaining access to powerful AI models from OpenAI, which could drive innovation in its consumer products.
- Long-term Strategic Layout: The collaboration with OpenAI not only supplements existing AI technologies but may also foster further cooperation in emerging areas like agentic commerce, demonstrating Amazon's commitment to long-term investments in the AI domain.
See More
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- Market Turmoil Analysis: Steve Koenig, head of software and services research at Macquarie, highlights that the software industry is undergoing unprecedented turmoil due to recent AI-driven sell-offs, with companies like Salesforce (CRM) facing existential threats, coining terms like 'SaaS-pocalypse'.
- Industry Risk Assessment: Koenig expresses cautious optimism about the long-term outlook for the software sector, suggesting that while uncertainty looms, technological innovation will continue to drive industry growth, despite potential short-term volatility.
- Investor Sentiment Shift: The concept of 'SaaS-pocalypse' has shaken investor confidence in software companies, leading to increased stock price volatility, particularly for those operating under the SaaS model, which faces heightened scrutiny.
- Future Outlook: Despite the challenging market environment, Koenig believes that advancements in AI and other technologies could enable a recovery in the software industry, urging investors to focus on innovation and adaptability within the sector.
See More
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- Market Weakness: The S&P 500 index fell by 0.61%, the Dow Jones Industrial Average dropped by 1.17%, and the Nasdaq 100 index decreased by 0.41%, reflecting investor concerns over the disruptive potential of AI, which has put overall market sentiment under pressure.
- Producer Prices Rise: The US January Producer Price Index (PPI) increased by 0.5% month-over-month and 2.9% year-over-year, exceeding expectations, indicating rising inflationary pressures that could influence the Fed's interest rate decisions and increase market uncertainty.
- Strong Economic Data: Despite the market downturn, the February Chicago PMI unexpectedly rose to 57.7, signaling signs of economic expansion, which may alleviate some investor concerns about a slowdown in economic growth.
- Airline Stocks Under Pressure: With WTI crude oil prices reaching a 6.5-month high, airline stocks are generally declining, with United Airlines down over 8%, reflecting the potential threat of rising fuel costs on airline profitability.
See More
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- Market Decline: The S&P 500 index fell by 0.90%, the Dow Jones Industrial Average dropped by 1.57%, and the Nasdaq 100 index decreased by 0.71%, reflecting investor concerns over the disruptive potential of AI, which has intensified selling pressure across the market.
- Producer Prices Rise: The US January Producer Price Index (PPI) increased by 0.5% month-over-month and 2.9% year-over-year, surpassing expectations, indicating persistent inflationary pressures that may hinder the Fed's ability to cut interest rates in the near term, negatively impacting stock valuations.
- Geopolitical Risks Intensify: WTI crude oil prices surged over 2% to a 6.5-month high due to disappointing outcomes from US-Iran nuclear talks, raising concerns about potential supply disruptions and adding to investor anxiety in the stock market.
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