BTIG Research Lowers Datadog (NASDAQ:DDOG) Price Target to $170.00

Datadog (NASDAQ:DDOG) had its price objective reduced by research analysts at BTIG Research from $221.00 to $170.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. BTIG Research’s price target would indicate a potential upside of 31.10% from the stock’s previous close.

Other equities analysts have also issued reports about the company. Wall Street Zen lowered Datadog from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Guggenheim set a $105.00 price target on Datadog in a report on Thursday, November 6th. Morgan Stanley upped their target price on shares of Datadog from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Friday, November 7th. Barclays decreased their price objective on Datadog from $215.00 to $195.00 and set an “overweight” rating for the company in a report on Monday, January 12th. Finally, Jefferies Financial Group reduced their target price on shares of Datadog from $180.00 to $160.00 and set a “buy” rating for the company in a report on Friday, February 6th. Thirty-seven equities 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, the company currently has an average rating of “Moderate Buy” and a consensus target price of $180.60.

Datadog Stock Performance

DDOG opened at $129.67 on Tuesday. Datadog has a 12-month low of $81.63 and a 12-month high of $201.69. The company’s 50 day moving average is $133.87 and its 200 day moving average is $144.06. The company has a market cap of $45.47 billion, a price-to-earnings ratio of 418.29, a PEG ratio of 20.37 and a beta of 1.27. The company has a current ratio of 3.66, a quick ratio of 3.66 and a debt-to-equity ratio of 0.29.

Datadog (NASDAQ:DDOG) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.55 by $0.04. The firm had revenue of $953.19 million for the quarter, compared to the consensus estimate of $916.53 million. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The company’s revenue was up 29.2% on a year-over-year basis. During the same period last year, the firm earned $0.49 EPS. 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, equities research analysts predict that Datadog will post 0.34 EPS for the current year.

Insider Transactions at Datadog

In other news, CTO Alexis Le-Quoc sold 53,912 shares of Datadog stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $154.05, for a total value of $8,305,143.60. Following the completion of the transaction, the chief technology officer owned 295,448 shares in the company, valued at approximately $45,513,764.40. This trade represents a 15.43% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction on Monday, November 17th. The stock was sold at an average price of $181.18, for a total transaction of $18,254,609.72. Following the sale, the chief executive officer directly owned 533,358 shares of the company’s stock, valued at approximately $96,633,802.44. This trade represents a 15.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 538,917 shares of company stock valued at $86,804,288 over the last 90 days. 8.70% of the stock is currently owned by company insiders.

Institutional Trading of Datadog

A number of institutional investors have recently bought and sold shares of DDOG. Vanguard Group Inc. lifted its stake in Datadog by 30.3% during the third quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company’s stock worth $5,966,877,000 after purchasing an additional 9,748,738 shares during the last quarter. State Street Corp grew its stake in shares of Datadog by 106.8% in the 3rd quarter. State Street Corp now owns 13,732,777 shares of the company’s stock valued at $1,955,547,000 after purchasing an additional 7,091,075 shares during the last quarter. Norges Bank acquired a new stake in shares of Datadog during the fourth quarter worth $469,461,000. Jennison Associates LLC increased its stake in Datadog by 43.7% in the 4th quarter. Jennison Associates LLC now owns 7,623,993 shares of the company’s stock valued at $1,036,787,000 after buying an additional 2,316,994 shares during the period. Finally, Invesco Ltd. raised its position in Datadog by 119.2% during the 3rd quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares during the last quarter. 78.29% of the stock is owned by hedge funds and other institutional investors.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 beat — Datadog reported $953M revenue (up 29% YoY) and $0.59 adjusted EPS, beating consensus and prompting the post‑earnings rally. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Bullish guidance — Datadog raised guidance: Q1 EPS 0.49–0.51 (vs. consensus ~0.35) and FY 2026 EPS 2.08–2.16 (well above prior street numbers), which supports multiple expansion despite high valuation. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI product momentum — management highlighted new AI features (Bits AI SRE Agent, data observability, storage management, feature flags) and growing large‑customer base (603 $1M+ ARR customers), underpinning revenue durability. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Strong cash flow — Datadog reported ~$1.05B operating cash flow and ~$915M free cash flow for FY2025, improving the quality of growth and supporting investor confidence. Datadog Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Sector tailwinds — strategists say recent software selloff (AI disruption fears) may present a buying opportunity for high‑quality names like Datadog, helping recovery in the group. AI disruption fears create buying chance in US software stocks, strategists say
• Neutral Sentiment: Analyst notes mixed — several firms lowered price targets (Wolfe, RBC, Needham) but many kept Buy/Outperform ratings; that reduces upside projections even as coverage remains constructive. Benzinga
• Neutral Sentiment: Earnings call/transcript available — investors can drill into management commentary for details on product monetization, AI adoption, and margin assumptions. Datadog (DDOG) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Valuation concerns remain — high P/E and public comments (e.g., Jim Cramer calling it “too expensive”) mean some investors may take profits despite strong results. Jim Cramer on Datadog: “There Are Cheap Enterprise Software Stocks, Just Not This One”

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.