Needham & Company LLC Issues Pessimistic Forecast for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its price target decreased by stock analysts at Needham & Company LLC from $220.00 to $155.00 in a report issued on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Needham & Company LLC’s price objective points to a potential upside of 18.95% from the stock’s current price.

Other analysts have also issued reports about the company. Wells Fargo & Company increased their target price on Datadog from $190.00 to $230.00 and gave the stock an “overweight” rating in a report on Friday, November 7th. BTIG Research upped their price target on shares of Datadog from $184.00 to $221.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. Raymond James Financial lifted their price objective on shares of Datadog from $170.00 to $205.00 in a research note on Thursday, November 6th. Stifel Nicolaus set a $160.00 target price on Datadog and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Finally, Morgan Stanley boosted their price target on Datadog from $165.00 to $180.00 and gave the stock an “equal weight” rating in a report on Friday, November 7th. Thirty-six research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Datadog presently has an average rating of “Moderate Buy” and an average price target of $182.75.

Datadog Stock Performance

Shares of DDOG traded up $16.29 during midday trading on Tuesday, reaching $130.30. 13,355,127 shares of the stock were exchanged, compared to its average volume of 6,461,598. The stock’s 50 day simple moving average is $134.40 and its 200 day simple moving average is $144.20. The company has a market cap of $45.69 billion, a P/E ratio of 420.33, a PEG ratio of 19.95 and a beta of 1.27. Datadog has a twelve month low of $81.63 and a twelve month high of $201.69. The company has a quick ratio of 3.66, a current ratio of 3.66 and a debt-to-equity ratio of 0.29.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.04. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The business had revenue of $953.19 million during the quarter, compared to analysts’ expectations of $916.53 million. During the same quarter in the previous year, the company earned $0.49 EPS. The business’s revenue was up 29.2% on a year-over-year basis. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. On average, sell-side analysts expect that Datadog will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other Datadog news, COO Adam Blitzer sold 8,023 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $154.61, for a total value of $1,240,436.03. Following the sale, the chief operating officer owned 165,197 shares in the company, valued at approximately $25,541,108.17. The trade was a 4.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CTO Alexis Le-Quoc sold 32,418 shares of the firm’s stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $140.99, for a total value of $4,570,613.82. Following the transaction, the chief technology officer owned 301,458 shares of the company’s stock, valued at $42,502,563.42. This trade represents a 9.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 538,917 shares of company stock valued at $86,804,288. Company insiders own 8.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Nomura Asset Management Co. Ltd. grew its stake in Datadog by 8.0% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 152,674 shares of the company’s stock worth $20,762,000 after purchasing an additional 11,348 shares during the period. AXS Investments LLC grew its position in shares of Datadog by 2.1% during the 4th quarter. AXS Investments LLC now owns 4,795 shares of the company’s stock worth $652,000 after buying an additional 100 shares during the period. Founders Financial Securities LLC increased its stake in shares of Datadog by 65.6% in the 4th quarter. Founders Financial Securities LLC now owns 2,382 shares of the company’s stock valued at $324,000 after acquiring an additional 944 shares in the last quarter. MUFG Securities EMEA plc lifted its position in shares of Datadog by 115.6% during the 4th quarter. MUFG Securities EMEA plc now owns 13,342 shares of the company’s stock valued at $1,814,000 after acquiring an additional 7,154 shares during the period. Finally, Gulf International Bank UK Ltd boosted its stake in Datadog by 14.4% during the fourth quarter. Gulf International Bank UK Ltd now owns 15,953 shares of the company’s stock worth $2,169,000 after acquiring an additional 2,012 shares in the last quarter. 78.29% of the stock is owned by institutional investors.

More Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat expectations — $0.59 EPS vs. ~$0.55 consensus and revenue of $953M (vs. ~916M), showing ~29% Y/Y revenue growth; market commentary emphasized the clean beat and surprising strength. Article Title
• Positive Sentiment: Management raised guidance materially — Q1 EPS guide of $0.490–$0.510 vs. consensus ~$0.35 and FY2026 EPS guide of $2.080–$2.160 vs. consensus ~$1.60; Q1 and FY revenue guides also topped expectations, which drove the strong intraday move. Press Release
• Positive Sentiment: Operational wins: 29% revenue growth, expansion in $1M+ ARR customers (603 vs. 462 a year ago), strong operating and free cash flow and new product rollouts (Bits AI SRE Agent, Storage Management, Feature Flags, Data Observability) that support upsell and retention. Press Release
• Neutral Sentiment: Analyst sentiment ahead of the print was generally optimistic, and several firms kept “outperform”/positive stances even while adjusting models — that support remains but with more conservative targets. Article Title
• Neutral Sentiment: Broader market tailwinds for software stocks and improving investor sentiment likely amplified the move as the Nasdaq and software group rallied. Article Title
• Negative Sentiment: Multiple firms trimmed price targets in the last 48 hours (Wolfe, RBC, Cantor Fitzgerald, Jefferies), which caps some near-term upside despite maintained outperform ratings — signals caution on valuation and near-term model assumptions. Wolfe Research RBC Coverage
• Negative Sentiment: Competitive/market risks: analysis flagged that emerging AI agents could challenge parts of Datadog’s model, a thematic risk investors will watch as AI tooling evolves. Article Title

About Datadog

Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.