Datadog and Snowflake Growth Accelerating Amid AI Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DDOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 116.500
Low
140.00
Averages
207.39
High
255.00
Current: 116.500
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.
Datadog and Snowflake Growth Accelerating Amid AI Spending
- 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.
See More
Novavax and Datadog Options Trading Volume Surges
- Novavax Options Volume: Novavax (NVAX) options have seen a trading volume of 22,383 contracts today, equating to approximately 2.2 million shares, which represents 53.6% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High Volume Contracts: The $8.50 strike call option for NVAX has particularly high activity, with 14,183 contracts traded today, representing about 1.4 million underlying shares, suggesting bullish sentiment among investors at this price level, potentially indicating optimism about the company's growth prospects.
- Datadog Options Activity: Concurrently, Datadog (DDOG) has recorded an options trading volume of 22,499 contracts today, also around 2.2 million shares, which is 52.7% of its average daily trading volume over the past month, reflecting ongoing investor interest in its market performance.
- Key Contract Insights: For DDOG, the $75 strike put option has seen a trading volume of 9,240 contracts, approximately 924,000 underlying shares, indicating a defensive outlook among investors at this price point, which may suggest concerns about future market volatility.
See More
Booking Holdings Plummets 96.8% Year-to-Date
- Stock Price Crash: Booking Holdings' stock has plummeted 95.9% today and is down 96.8% year-to-date, indicating a severe crisis of market confidence that could exacerbate investor concerns about its future profitability.
- Poor Market Performance: As the worst-performing component of the Nasdaq 100, Booking Holdings' ongoing decline may impact its market position in the travel and hospitality sector, potentially affecting overall industry investment sentiment.
- Competitor Movements: In contrast, Datadog's stock fell 3.5%, while Applovin's rose 5.7%, reflecting varied investor reactions to different companies and possibly indicating divergent views on tech stocks.
- Investor Confidence Shaken: The extreme volatility in Booking Holdings may lead investors to reassess their portfolios, especially in the current economic climate, potentially prompting a shift of funds towards better-performing companies.
See More
Datadog Launches Experimentation Platform for Customers
- Product Launch: Datadog announced that its new product, Datadog Experiments, is now available to customers globally, enabling teams to design, launch, and measure product experiments and A/B tests directly within the platform, thereby enhancing product development efficiency.
- Data Integration: The experimentation platform combines business metrics from a customer's data warehouse with product analytics events and application observability, allowing companies to comprehensively assess experiment outcomes and optimize decision-making processes.
- Technical Advantage: Powered by the acquisition of Eppo, Datadog Experiments pairs best-in-class statistical methods with real-time observability guardrails, helping companies quickly test critical hypotheses and confidently launch new products, thereby strengthening market competitiveness.
- Future Outlook: Datadog projects a revenue target of $4.06 billion to $4.10 billion by 2026, indicating strong long-term growth potential amid AI-driven expansion and robust customer growth.
See More
Datadog Launches Experimentation Platform to Enhance Product Decision-Making
- Platform Launch: Datadog has officially launched Datadog Experiments, enabling teams to design, launch, and measure product experiments and A/B tests directly within the platform, thereby enhancing insights into user behavior, application performance, and business outcomes to meet the urgent needs of modern product teams.
- Business Data Integration: The platform addresses the fragmentation of existing tools by combining business metrics from customer data warehouses with product analytics events and application observability, allowing teams to accurately assess the impact of changes while rapidly releasing new features, thus reducing decision-making risks.
- Self-Service Experiment Management: Datadog Experiments offers a self-serve and standardized experimentation process, enabling teams to swiftly transition from insights to decisions without coordination overhead, ensuring the safety and high quality of experiments, which enhances team efficiency.
- Trusted Decision Support: By integrating directly with Real User Monitoring, Product Analytics, and logs, the platform ensures the credibility and reproducibility of experimental results, allowing organizations to safely validate AI-driven changes while minimizing risks in a fast-paced innovation environment.
See More
2026 Market Struggles: Focus on Lemonade and Datadog for Long-Term Gains
- Lemonade Customer Growth: By the end of 2025, Lemonade had nearly 3 million customers, growing 23% year-over-year, indicating strong momentum in the insurtech sector and potential for continued user acquisition.
- Record Premium Revenue: Lemonade's in-force premium (IFP) grew 31% in Q4 2025, reaching a record $1.24 billion, reflecting the company's competitive edge and enhanced profitability in the insurance market.
- Datadog AI Product Expansion: By the end of 2025, approximately 5,500 of Datadog's customers were utilizing at least one AI product, a 57% increase from the previous year, showcasing rapid penetration and strong market demand in the AI space.
- Sustained Revenue Growth: Datadog generated a record $3.43 billion in revenue in 2025, up 28%, demonstrating success in cloud observability and AI product offerings, despite a 14% decline in stock price due to broader market fluctuations.
See More
Datadog and Snowflake Growth Accelerating Amid AI Spending
- 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.
See More
Novavax and Datadog Options Trading Volume Surges
- Novavax Options Volume: Novavax (NVAX) options have seen a trading volume of 22,383 contracts today, equating to approximately 2.2 million shares, which represents 53.6% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High Volume Contracts: The $8.50 strike call option for NVAX has particularly high activity, with 14,183 contracts traded today, representing about 1.4 million underlying shares, suggesting bullish sentiment among investors at this price level, potentially indicating optimism about the company's growth prospects.
- Datadog Options Activity: Concurrently, Datadog (DDOG) has recorded an options trading volume of 22,499 contracts today, also around 2.2 million shares, which is 52.7% of its average daily trading volume over the past month, reflecting ongoing investor interest in its market performance.
- Key Contract Insights: For DDOG, the $75 strike put option has seen a trading volume of 9,240 contracts, approximately 924,000 underlying shares, indicating a defensive outlook among investors at this price point, which may suggest concerns about future market volatility.
See More
Booking Holdings Plummets 96.8% Year-to-Date
- Stock Price Crash: Booking Holdings' stock has plummeted 95.9% today and is down 96.8% year-to-date, indicating a severe crisis of market confidence that could exacerbate investor concerns about its future profitability.
- Poor Market Performance: As the worst-performing component of the Nasdaq 100, Booking Holdings' ongoing decline may impact its market position in the travel and hospitality sector, potentially affecting overall industry investment sentiment.
- Competitor Movements: In contrast, Datadog's stock fell 3.5%, while Applovin's rose 5.7%, reflecting varied investor reactions to different companies and possibly indicating divergent views on tech stocks.
- Investor Confidence Shaken: The extreme volatility in Booking Holdings may lead investors to reassess their portfolios, especially in the current economic climate, potentially prompting a shift of funds towards better-performing companies.
See More
Datadog Launches Experimentation Platform for Customers
- Product Launch: Datadog announced that its new product, Datadog Experiments, is now available to customers globally, enabling teams to design, launch, and measure product experiments and A/B tests directly within the platform, thereby enhancing product development efficiency.
- Data Integration: The experimentation platform combines business metrics from a customer's data warehouse with product analytics events and application observability, allowing companies to comprehensively assess experiment outcomes and optimize decision-making processes.
- Technical Advantage: Powered by the acquisition of Eppo, Datadog Experiments pairs best-in-class statistical methods with real-time observability guardrails, helping companies quickly test critical hypotheses and confidently launch new products, thereby strengthening market competitiveness.
- Future Outlook: Datadog projects a revenue target of $4.06 billion to $4.10 billion by 2026, indicating strong long-term growth potential amid AI-driven expansion and robust customer growth.
See More
Datadog Launches Experimentation Platform to Enhance Product Decision-Making
- Platform Launch: Datadog has officially launched Datadog Experiments, enabling teams to design, launch, and measure product experiments and A/B tests directly within the platform, thereby enhancing insights into user behavior, application performance, and business outcomes to meet the urgent needs of modern product teams.
- Business Data Integration: The platform addresses the fragmentation of existing tools by combining business metrics from customer data warehouses with product analytics events and application observability, allowing teams to accurately assess the impact of changes while rapidly releasing new features, thus reducing decision-making risks.
- Self-Service Experiment Management: Datadog Experiments offers a self-serve and standardized experimentation process, enabling teams to swiftly transition from insights to decisions without coordination overhead, ensuring the safety and high quality of experiments, which enhances team efficiency.
- Trusted Decision Support: By integrating directly with Real User Monitoring, Product Analytics, and logs, the platform ensures the credibility and reproducibility of experimental results, allowing organizations to safely validate AI-driven changes while minimizing risks in a fast-paced innovation environment.
See More
2026 Market Struggles: Focus on Lemonade and Datadog for Long-Term Gains
- Lemonade Customer Growth: By the end of 2025, Lemonade had nearly 3 million customers, growing 23% year-over-year, indicating strong momentum in the insurtech sector and potential for continued user acquisition.
- Record Premium Revenue: Lemonade's in-force premium (IFP) grew 31% in Q4 2025, reaching a record $1.24 billion, reflecting the company's competitive edge and enhanced profitability in the insurance market.
- Datadog AI Product Expansion: By the end of 2025, approximately 5,500 of Datadog's customers were utilizing at least one AI product, a 57% increase from the previous year, showcasing rapid penetration and strong market demand in the AI space.
- Sustained Revenue Growth: Datadog generated a record $3.43 billion in revenue in 2025, up 28%, demonstrating success in cloud observability and AI product offerings, despite a 14% decline in stock price due to broader market fluctuations.
See More
