NEW YORK – Datadog (DDOG) is having its day on Wall Street, and investors are taking notice. The cloud-monitoring powerhouse saw its shares skyrocket by an incredible 14.92% on Wednesday, closing at a new high of $155.15. The momentum didn’t stop there, as the stock continued to climb in after-hours trading.
The catalyst for this explosive growth? A stampede of bullish analyst upgrades, as Wall Street’s top minds race to raise their expectations for the tech darling.
A Chorus of Confidence from Top Analysts
The enthusiasm for Datadog is reaching a fever pitch. This week alone, a wave of influential analysts reaffirmed their confidence in the company:
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Wedbush’s Daniel Ives, a leading voice in tech analysis, hiked his price target to $170, calling Datadog “one of our favorite names” and a critical player in the booming AI infrastructure space.
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TD Cowen followed suit, setting a $150 target and highlighting the company’s impressive scalability and growing traction with major enterprise clients.
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Citi is also firmly in the bull camp, maintaining its own optimistic $165 price target.
This powerful consensus has cemented Datadog’s “Strong Buy” rating, signaling broad-based conviction in its future.
What’s Fueling the Rocket?
Behind the soaring stock price is a company firing on all cylinders. Datadog recently reported stellar quarterly revenue of $761.6 million, a significant jump from the previous year.
More importantly, Datadog has brilliantly positioned itself as the essential “digital backbone” for modern businesses. As companies invest heavily in AI and cloud technology, Datadog provides the critical monitoring tools they need to succeed, making it a cornerstone of the digital revolution. Adding to the excitement is widespread speculation that the company’s impressive growth and $45.7 billion market cap could soon earn it a coveted spot in the prestigious S&P 500 index.
A Premium on Performance
While the excitement is palpable, discerning investors note the company’s high-flying valuation. Recent filings also show top executives, including the CEO and CFO, cashing in on a portion of their holdings after the remarkable run-up—a common practice in high-growth companies.
This reflects the market’s immense expectations. Investors are paying a premium for a front-row seat to Datadog’s growth story, betting that the company will continue to innovate and lead its industry.
According to 37 recent analyst reviews on TipRanks, an overwhelming 31 recommend a “Buy” on the stock, with just 6 suggesting “Hold” and zero advising to sell. While the average price target of $140.46 suggests some analysts believe the stock’s recent surge has priced in the good news for now, the overwhelming sentiment remains clear: Datadog is a key player to watch in the future of technology.
