BMO Capital Markets Has Lowered Expectations for Datadog (NASDAQ:DDOG) Stock Price

Datadog (NASDAQ:DDOG) had its target price dropped by BMO Capital Markets from $215.00 to $170.00 in a report issued on Thursday, Marketbeat reports. The firm currently has an “outperform” rating on the stock. BMO Capital Markets’ target price points to a potential upside of 31.46% from the stock’s current price.

Several other analysts have also weighed in on DDOG. UBS Group raised their price objective on shares of Datadog from $189.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Truist Financial dropped their price target on Datadog from $195.00 to $140.00 and set a “hold” rating for the company in a report on Wednesday, January 7th. BNP Paribas Exane reduced their price objective on Datadog from $210.00 to $175.00 and set an “outperform” rating on the stock in a research note on Thursday, January 15th. Bank of America increased their target price on Datadog from $180.00 to $215.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Datadog in a report on Wednesday, January 21st. Thirty-five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $190.38.

Datadog Stock Performance

Shares of NASDAQ:DDOG opened at $129.32 on Thursday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.66 and a quick ratio of 3.66. The business’s fifty day moving average price is $139.51 and its two-hundred day moving average price is $145.34. Datadog has a fifty-two week low of $81.63 and a fifty-two week high of $201.69. The stock has a market capitalization of $45.35 billion, a price-to-earnings ratio of 417.16, a price-to-earnings-growth ratio of 22.87 and a beta of 1.26.

Datadog (NASDAQ:DDOG) last issued its earnings results on Thursday, November 6th. The company reported $0.55 EPS for the quarter, beating the consensus estimate of $0.45 by $0.10. Datadog had a net margin of 3.32% and a return on equity of 4.14%. The company had revenue of $885.65 million for the quarter, compared to the consensus estimate of $852.77 million. During the same quarter in the previous year, the company earned $0.46 EPS. The firm’s revenue for the quarter was up 28.4% compared to the same quarter last year. Datadog has set its FY 2025 guidance at 2.000-2.020 EPS and its Q4 2025 guidance at 0.54-0.56 EPS. As a group, analysts predict that Datadog will post 0.34 EPS for the current fiscal year.

Insider Activity

In related news, CEO Olivier Pomel sold 100,754 shares of Datadog stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $181.18, for a total value of $18,254,609.72. Following the completion of the sale, the chief executive officer directly owned 533,358 shares in the company, valued at $96,633,802.44. This trade represents a 15.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Matthew Jacobson sold 404,306 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $199.60, for a total transaction of $80,699,477.60. Following the transaction, the director owned 12,859 shares in the company, valued at approximately $2,566,656.40. The trade was a 96.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,104,127 shares of company stock valued at $197,161,211 over the last 90 days. 8.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Datadog

Hedge funds and other institutional investors have recently bought and sold shares of the business. Callan Family Office LLC boosted its holdings in shares of Datadog by 145.6% during the second quarter. Callan Family Office LLC now owns 22,680 shares of the company’s stock worth $3,047,000 after acquiring an additional 13,445 shares during the period. PKO Investment Management Joint Stock Co acquired a new stake in Datadog during the 3rd quarter worth approximately $1,709,000. Munro Partners bought a new stake in Datadog in the 3rd quarter valued at $7,120,000. Sumitomo Mitsui DS Asset Management Company Ltd boosted its stake in Datadog by 37.9% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company’s stock valued at $15,555,000 after purchasing an additional 30,008 shares during the period. Finally, Yousif Capital Management LLC grew its holdings in Datadog by 869.3% in the 3rd quarter. Yousif Capital Management LLC now owns 36,777 shares of the company’s stock valued at $5,237,000 after buying an additional 32,983 shares in the last quarter. 78.29% of the stock is owned by institutional investors.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Bernstein reaffirmed an Outperform rating and a $180 price target, arguing Datadog prefers organic growth over large acquisitions (which reduces M&A risk and keeps focus on core SaaS expansion). This endorsement from a major shop supports investor confidence. Datadog (DDOG) Prefers Organic Growth Over Large Acquisitions, Says Bernstein
• Positive Sentiment: Customer win: THE ICONIC chose Datadog to boost platform reliability, a tangible proof point for recurring revenue/expansion potential and enterprise adoption. Such logos help sales momentum and retention narratives. THE ICONIC boosts platform reliability with Datadog
• Neutral Sentiment: Analyst consensus remains modestly positive — databases show a “Moderate Buy” consensus, keeping general sentiment tilted toward accumulation but not unanimous conviction. Datadog Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: Coverage pieces and strategy discussion (including notes about Datadog’s evolving AI platform) are highlighting potential product-led upside, but these are thematic and longer‑term drivers rather than immediate catalysts. Are Bullish DDOG Notes Revealing a Deeper Shift in Datadog’s AI Platform Strategy?
• Negative Sentiment: Insider selling: CTO Alexis Le‑Quoc sold 32,418 shares (~$4.57M) and trimmed his holding ~9.7%. Insider sales can spook investors even though the exec retains a large stake. SEC Form 4 — Alexis Le‑Quoc
• Negative Sentiment: Price‑target cuts: Rosenblatt trimmed its PT from $200 to $185 (still a buy) and BMO cut from $215 to $170 — these downgrades reduce near‑term upside expectations and can pressure momentum. Rosenblatt PT cut BMO PT cut
• Negative Sentiment: Scotiabank published a pessimistic forecast for DDOG, adding a naysayer view that could weigh on sentiment if echoed by other shops. Scotiabank Issues Pessimistic Forecast for Datadog

Datadog Company Profile

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.