Datadog

DDOG

Market cap $44B

Datadog (DDOG) fell 7.6% on heavy trading volume after a Truist Securities downgrade to ‘Hold' accompanied by a significant price target cut. This shift marked a sharp and aggressive retreat from recent peaks, driven by a wider market rotation away from high-growth technology stocks.

Zacks.com users have recently been watching Datadog (DDOG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Datadog stock price has suffered a big reversal in the past few months, moving from the key level at $200 in November to the current $130. It has dropped to the lowest level since September.

Datadog (DDOG) reached $137.1 at the closing of the latest trading day, reflecting a +2.59% change compared to its last close.

Analyst trends are a critical factor for investors to watch, as they lead investment dollars to and from individual stocks. Analysts' trends in the stocks on this list, which include tech stocks crucial to AI and the global data center industry, are bullish and strengthened in Q4 of calendar year 2025.

The Nasdaq Composite recently entered a new bull market, and the index has returned 31% annually during bull markets since 1990. Meta Platforms is strengthening its advertising business with artificial intelligence tools, and the median target price on Wall Street implies 29% upside.

Datadog (DDOG) remains a core holding, with a bullish outlook for 2026 driven by high retention and expanding AI offerings. DDOG's platform is sticky, boasting a net revenue retention rate of 120% and continued multi-product adoption among customers. Despite elevated R&D spend impacting near-term margins, robust revenue growth (28% YoY in Q3 2025) and strong gross margins (80.1%) persist.

Some of the best potential investment returns in 2026 might come from the overlooked corners of the artificial intelligence (AI) industry. Datadog and SentinelOne aren't directly known as AI companies, but this technology is now central to the products they offer.

In the most recent trading session, Datadog (DDOG) closed at $135.99, indicating a -1.08% shift from the previous trading day.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.