William Blair analyst Jake Roberge has maintained their bullish stance on DDOG stock, giving a Buy rating today.
Jake Roberge has given his Buy rating due to a combination of factors that highlight Datadog’s strong performance and growth potential. The company reported impressive first-quarter results, surpassing consensus estimates in key areas. A significant driver of this performance was the robust demand from AI-native customers, who now contribute a larger portion to the annual recurring revenue. Additionally, Datadog demonstrated strong deal momentum with large clients, securing multiple high-value contracts.
Despite some challenges, such as increased cloud hosting costs and foreign exchange headwinds, Datadog continues to expand its customer base and enhance its AI solutions. The company has seen a notable increase in new logo bookings and the adoption of its AI integrations. Management’s focus on long-term growth through international and enterprise sales capacity further supports the positive outlook. Overall, Roberge believes that Datadog is well-positioned to capitalize on the growing AI market, making it a compelling investment opportunity.
In another report released today, Monness also maintained a Buy rating on the stock with a $160.00 price target.