Datadog and Snowflake Growth Accelerating Amid AI Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy DDOG?
Source: seekingalpha
- Accelerated Revenue Growth: Datadog's total revenue grew 29.2% year-over-year, up from 28.4% last quarter, indicating a broad-based acceleration in usage across customer cohorts, reflecting strong business performance amid ongoing AI-related spending.
- Strong Product Revenue: Snowflake's product revenue increased by 30.0% year-over-year, surpassing last quarter's 28.7%, primarily driven by robust core business performance and the impact of AI tools like Intelligence and Cortex AI, showcasing the company's competitive edge in the market.
- Shift in Investor Preferences: As AI has yet to drive significant growth for most software vendors, investors are favoring stocks with accelerating core business growth; Datadog stood out in Q4 2025, with core revenue growth accelerating to 23%, a 3-point increase from 20% in Q3 2025, indicating strong market confidence in its future.
- Positive Impact of AI Tools: Snowflake's commentary on its AI products is bullish, with Intelligence usage doubling quarter-over-quarter across 2,500 accounts, and strong performance from Cortex AI and Cortex Code further enhancing market expectations for future growth.
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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: 140.530
Low
140.00
Averages
207.39
High
255.00
Current: 140.530
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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- Weak Manufacturing Data: The April ISM manufacturing index remained unchanged at 52.7, below the expected 53.2, while the prices paid sub-index rose to a four-year high of 84.6, indicating increasing price pressures that could impact Federal Reserve policy decisions.
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