AppLovin Stock Approaches Earnings with Indicators Suggesting Potential Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
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Should l Buy DDOG?
Source: Barron's
- Earnings Test Case: AppLovin's earnings report is seen as a critical indicator for the ongoing recovery in software stocks.
- Stock Performance Outlook: Technical analysis suggests that AppLovin's shares may be poised for an upward movement.
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Analyst Views on DDOG
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
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 127.330
Low
140.00
Averages
207.39
High
255.00
Current: 127.330
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.
- Significant Revenue Growth: Datadog's revenue grew by 29% year-over-year to $953.2 million, surpassing the market consensus of $918.7 million, indicating a robust recovery in its core business and bolstering confidence in its sustained growth.
- Strong Performance from Non-AI Customers: Revenue from non-AI customers accelerated to 23%, up from 20% in the previous quarter, demonstrating strong customer support in the adoption of cloud and modern technologies, further solidifying its market share.
- Conservative Future Outlook: Although the 2026 revenue guidance of $4.06 to $4.1 billion suggests an 18%-20% growth potential, it falls short of the market expectation of $4.106 billion, reflecting management's cautious stance on future growth.
- Robust Operating Profit: Datadog reported an operating margin of 24.1%, and while the first-quarter revenue outlook exceeded expectations, the conservative guidance for 2026 may impact investor confidence in its long-term profitability.
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- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
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- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
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Service Now Sales Decline: ServiceNow reported a sales decrease of 4.4%.
Salesforce Performance: Salesforce experienced a 3.4% drop in sales.
Datadog Sales Figures: Datadog's sales also fell by 3.5%.
Overall Market Trends: The reported declines indicate a broader trend of decreasing sales across these tech companies.
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U.S. Software Companies Struggling: Several U.S. software companies are experiencing significant declines in their stock prices early in the trading period.
Market Impact: The downturn in these companies reflects broader market trends and investor concerns regarding the tech sector's performance.
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment regarding these firms' prospects, which could influence investor decisions and market dynamics.
- Upgrades and Downgrades: While specific names of upgrades and downgrades are not detailed, such changes typically have a direct impact on the short-term performance of the affected stocks, prompting investors to pay close attention to these shifts.
- Market Reaction Expectations: Adjustments in analyst ratings may trigger market volatility, especially when investor expectations are high for certain stocks, potentially leading to significant price fluctuations.
- Investor Decision Impact: Investors considering buying WMT stock should take into account the latest insights from analysts to make more informed investment decisions, even though specific analyst opinions were not elaborated in the report.
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