Datadog (DDOG) is barking louder than ever on Wall Street. Shares of the cloud monitoring and observability giant soared 14.92% to close at $155.15 on July 3, and they didn’t stop there. In after-hours trading, Datadog (DDOG) added another 0.89%, hitting $156.53. The sudden surge was no mystery—analysts are piling in with bullish upgrades and sharply higher price targets.
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Analysts Race to Catch the Rally
This week alone, three major analysts reiterated Buy ratings on Datadog and adjusted their price forecasts upward:
- Daniel Ives of Wedbush raised his target to $170, citing Datadog as “one of our favorite names” and a key play on AI-powered observability infrastructure.
- Andrew Sherman from TD Cowen followed with a $150 target, emphasizing platform scalability and enterprise traction.
- Patrick Colville at Scotiabank came in with a more conservative $130, but still reiterated a Buy.
Meanwhile, Citi maintained its own bullish outlook, holding a $165 price target.
Consensus now sits firmly in Strong Buy territory, with an average analyst forecast of $140.46. That technically implies modest downside from current prices—but if the recent momentum holds, those targets may soon get another round of revisions.
What’s Behind the Boom?
Datadog’s recent quarter showed $761.6 million in revenue, up from $611.3 million a year earlier. Profit came in at $24.6 million, a step down from the prior year but still firmly in the green. More importantly, the company is riding the rising tide of AI infrastructure spending, positioning itself as a core piece of the digital backbone for cloud-native companies.
Another boost is the speculation that Datadog could join the S&P 500 in the near future. With a market cap now hovering around $45.7 billion and an expanding footprint in enterprise IT, DDOG checks most of the index inclusion boxes.
Not Everyone Is Buying the Breakout
Still, not everyone’s buying the breakout. Recent filings reveal a wave of insider selling that could give some investors pause. CEO Olivier Pomel offloaded 15,227 shares worth approximately $1.78 million, while CFO David Obstler sold an additional 12,516 shares for about $1.46 million. When paired with Datadog’s lofty price-to-earnings ratio of 261.42, the takeaway is clear: this is a high-expectation stock where investors are paying a serious premium for growth and banking on the company to deliver without a misstep.
Is Datadog a Buy or Hold?
According to TipRanks, Datadog currently carries a Strong Buy rating based on 37 Wall Street analyst reviews in the past three months. Out of those, 31 analysts recommend Buy, while 6 suggest Hold, and none rate it a Sell.
The average 12-month price target for DDOG stock is $140.46, which reflects a -9.47% downside from the most recent closing price of $155.15.
