As previously reported, Guggenheim downgraded Datadog (DDOG) to Sell from Neutral with a $105 price target citing the risk of potential significant optimization by OpenAI, which the firm believes to be Datadog’s largest customer. The firm believes that OpenAI’s observability software roadmap is shifting toward more cost efficient, in-house technologies and it contends that OpenAI may have already started to move off Datadog for log management onto its internally built solution, which the firm see being followed by the planned deprecation of other Datadog functions. Given this risk, the firm is modeling 17% growth for Datadog in Q4 in its “plausible scenario,” the analyst noted.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DDOG:
- Datadog downgraded to Sell from Neutral at Guggenheim
- Datadog (DDOG) S&P Listing Sparks Rally as Frothy Valuation Warrants Caution
- ‘Stick With It,’ Says Top Analyst about Datadog Stock (DDOG)
- Morning News Wrap-Up: Monday’s Biggest Stock Market Stories!
- Unusually active option classes on open July 7th