Citi Initiates 90-Day Upside Catalyst Watch on Datadog
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy DDOG?
Source: seekingalpha
- Analyst Optimism: Citi analyst Fatima Boolani highlighted that Datadog's upcoming earnings and DASH conference are likely to catalyze stock price appreciation, as expectations for AI-native customer optimization and growth appear overly conservative, prompting a potential reevaluation of its value by investors.
- Revenue Growth Potential: Boolani noted that Datadog's revenue run rates are showing parabolic growth based on leading frontier models and the broader AI-native ISV ecosystem, indicating strong spending growth potential that is expected to drive the company's future performance.
- Strong Market Demand: Recent partner checks indicate robust enterprise demand for observability, with overall spending expected to accelerate in 2026, providing a favorable market backdrop for Datadog and further supporting its business expansion.
- Buy Rating and Price Target: Boolani maintains a Buy rating on Datadog with a price target of $175, anticipating sustained revenue and RPO growth that will drive stock price appreciation.
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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: 188.730
Low
140.00
Averages
207.39
High
255.00
Current: 188.730
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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- Recurring Revenue Milestone: Datadog's annual recurring revenue (ARR) surpassed $4 billion for the first time, marking a significant advancement in the company's revenue stability and predictability.
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See More
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- Financial Performance Breakthrough: In Q1, Datadog reported revenue of $1.006 billion, marking its first billion-dollar quarter and exceeding analyst expectations of $959.9 million, with adjusted EPS at $0.60, significantly above the $0.51 forecast, showcasing robust profitability.
- Customer Base Expansion: The company expanded its enterprise customer base to approximately 4,550 clients generating over $100,000 in annual recurring revenue, an increase of about 780 clients from the previous year, reflecting ongoing penetration in the high-value SaaS market.
- Market Sentiment Optimism: Retail investor sentiment around Datadog remains extremely bullish, with message volume surging 1,377% in 24 hours, indicating strong confidence in the company's future growth prospects.
See More
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- Market Volatility: Doubts surrounding the Iran deal led to volatility in the stock market on Thursday, with major indices experiencing declines, reflecting investor sensitivity to geopolitical risks and uncertainty.
- Tech Stocks Resilience: Despite the overall market pressure, Nvidia and Tesla showed strong performance, indicating investor confidence in the long-term growth potential of these companies, which may attract more capital into the tech sector.
- Earnings Movers: CoreWeave, Rocket Lab, Cloudflare, and IREN's earnings reports became focal points for the market, with investors closely monitoring their performance to assess future growth prospects and competitive positioning.
- Jobs Report Anticipation: The market is set to receive a new jobs report, with analysts expecting it to provide crucial signals regarding economic recovery, which could further influence investor decisions and market trends.
See More
US Stocks Close Lower Amid Cautious Market Sentiment
- Market Weakness: On Thursday, the S&P 500 Index fell by 0.38%, the Dow Jones Industrial Average dropped by 0.63%, and the Nasdaq 100 Index decreased by 0.12%, reflecting investor skepticism regarding a potential US-Iran peace deal, which led to a reversal of early gains and impacted market confidence.
- Economic Data Support: Despite the market decline, initial jobless claims rose by 10,000 to 200,000, below the expected 205,000, indicating resilience in the labor market, while Q1 nonfarm productivity increased by 0.8%, surpassing the 0.6% forecast, providing some support to the market.
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- Oil Price Recovery: WTI crude oil prices rebounded after a 4% decline on Thursday, as the market focused on the potential resumption of US military operations to ensure safe passage through the Strait of Hormuz, which is expected to have ongoing implications for global oil prices and related stocks.
See More
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- Impressive Earnings: Datadog reported quarterly revenue exceeding $1 billion for the first time, leading to a 31% surge in its stock price, which reflects the company's strong performance in the artificial intelligence sector and a restoration of investor confidence.
- Customer Expansion: CEO Olivier Pomel revealed that Datadog secured partnerships with two major hyperscaler customers focused on training in their superintelligence labs, further solidifying its leadership in the cloud infrastructure market.
- Industry Impact: Datadog's robust performance not only boosted its own stock but also propelled shares of Snowflake and MongoDB up by 10% each, indicating widespread market confidence in AI-related companies.
- Positive Twilio Performance: Twilio showcased new platform capabilities that enhance AI agents' communication efficiency during its investor day, resulting in a 50% stock price increase over the past month, reflecting market favor for companies effectively leveraging AI solutions.
See More
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- Stock Surge: Datadog's stock soared 31% following its quarterly earnings report, marking its largest single-day gain since going public in 2023, reflecting strong market confidence in its AI solutions and solidifying its leadership in cloud infrastructure.
- Revenue Milestone: The company reported quarterly revenue exceeding $1 billion for the first time, indicating robust performance in the AI market, which has attracted investor interest and laid a solid foundation for future growth.
- Customer Base Expansion: CEO Olivier Pomel disclosed that Datadog secured two major hyperscaler customers for AI training, further enhancing its market position in the AI training sector and demonstrating its critical role in cloud infrastructure.
- Industry Impact: Datadog's impressive performance not only boosted its own stock but also lifted shares of other cloud infrastructure companies like Snowflake and MongoDB, indicating a growing market confidence in AI-related firms.
See More
