Needham & Company LLC Cuts Datadog (NASDAQ:DDOG) Price Target to $155.00

Datadog (NASDAQ:DDOG) had its target price cut by Needham & Company LLC from $220.00 to $155.00 in a research note published on Tuesday morning,Benzinga reports. They currently have a buy rating on the stock.

Several other research firms have also issued reports on DDOG. Morgan Stanley increased their target price on Datadog from $165.00 to $180.00 and gave the stock an “equal weight” rating in a report on Friday, November 7th. Scotiabank reduced their price objective on shares of Datadog from $217.00 to $180.00 and set a “sector outperform” rating on the stock in a research note on Tuesday, January 27th. Jefferies Financial Group dropped their target price on shares of Datadog from $180.00 to $160.00 and set a “buy” rating for the company in a research report on Friday, February 6th. BNP Paribas Exane cut their price target on shares of Datadog from $210.00 to $175.00 and set an “outperform” rating for the company in a report on Thursday, January 15th. Finally, Robert W. Baird lifted their price objective on shares of Datadog from $165.00 to $220.00 and gave the company an “outperform” rating in a research note on Friday, November 7th. Thirty-seven analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Datadog currently has an average rating of “Moderate Buy” and a consensus price target of $179.50.

Datadog Stock Down 0.9%

Shares of DDOG opened at $126.13 on Tuesday. The company has a current ratio of 3.38, a quick ratio of 3.66 and a debt-to-equity ratio of 0.26. Datadog has a 12 month low of $81.63 and a 12 month high of $201.69. The firm’s 50 day moving average is $132.76 and its 200-day moving average is $143.82. The stock has a market capitalization of $44.23 billion, a PE ratio of 406.87, a P/E/G ratio of 22.75 and a beta of 1.27.

Datadog (NASDAQ:DDOG) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.04. Datadog had a return on equity of 4.14% and a net margin of 3.14%.The business had revenue of $953.19 million during the quarter, compared to analysts’ expectations of $916.53 million. During the same period in the previous year, the company posted $0.49 earnings per share. The firm’s revenue for the quarter was up 29.2% compared to the same quarter last year. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Equities research analysts forecast that Datadog will post 0.34 EPS for the current year.

Insider Activity at Datadog

In other Datadog news, CTO Alexis Le-Quoc sold 53,912 shares of the firm’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $154.05, for a total value of $8,305,143.60. Following the sale, the chief technology officer owned 295,448 shares in the company, valued at $45,513,764.40. This trade represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Olivier Pomel sold 100,754 shares of the company’s 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 transaction, the chief executive officer owned 533,358 shares of the company’s stock, valued at $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. In the last three months, insiders sold 538,917 shares of company stock valued at $86,804,288. 8.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

Several large investors have recently bought and sold shares of DDOG. Rothschild Investment LLC grew its holdings in shares of Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after purchasing an additional 100 shares during the last quarter. Physician Wealth Advisors Inc. boosted its position in Datadog by 315.2% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after buying an additional 145 shares during the period. Westside Investment Management Inc. boosted its position in Datadog by 74.3% during the 3rd quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after buying an additional 75 shares during the period. JPL Wealth Management LLC bought a new stake in Datadog during the 3rd quarter worth approximately $27,000. Finally, Tripletail Wealth Management LLC acquired a new position in Datadog in the 3rd quarter valued at approximately $28,000. 78.29% of the stock is currently owned by institutional investors.

Datadog News Summary

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Q4 results beat consensus — revenue, EPS and ARR growth topped estimates and management highlighted AI-driven demand; the print triggered an immediate rally earlier in the week. Datadog beats quarterly estimates on AI-driven demand; shares rise
• Positive Sentiment: Multiple analysts reiterated or raised bullish ratings/targets (DA Davidson buy with $225 PT; Rosenblatt reaffirmed buy at $185; Capital One nudged its target higher to $157), supporting upside expectations. Capital One adjusts price target on Datadog to $157
• Neutral Sentiment: Short-interest data reported as a large increase appears to be a data error (0 shares / NaN); current days-to-cover is reported as ~0 — this is unreliable and likely not a true market signal. (internal data entry)
• Neutral Sentiment: Some shops issued mixed/market‑perform notes (Citizens Jmp reaffirmed market perform) — the street is divided, which can produce volatility but not a clear directional signal. Citizens Jmp market perform note
• Negative Sentiment: Analyst and media caution: several pieces warn about slowing 2026 growth, rising costs and a premium valuation despite the beat — these critiques are pressuring the multiple. 3 Reasons to Stay Away From Datadog Stock Despite Q4 Earnings Beat
• Negative Sentiment: Competitive/comparative pieces argue other cloud names (eg. MongoDB) may be better buys as AI/Atlas exposure looks stronger — increased competition and capital allocation trade-offs are a headwind narrative. MongoDB vs. Datadog: Which Cloud Software Stock is a Better Buy Now?

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.