Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks to Keep on Your Radar. On February 4, KeyBanc analyst Eric Heath lowered the price target on the stock to $155.00 (from $170.00) while maintaining an Overweight rating. The firm believes in DDOG’s positioning but needs clarity on 2026 guide. The firm noted how DDOG needs to mirror a setup similar to Q3, with acceleration in its core business and stability in revenue contribution from OpenAI. Even if the company posts another modest beat of roughly 4% ...

Industry Overview - Cloud computing is a crucial and rapidly growing sector of the digital economy, projected to grow from $752 billion in 2024 to over $2.3 trillion by 2030, with a compound annual growth rate exceeding 20% [2] - The rise of generative AI is driving demand for cloud capacity, as training large AI models requires significant computing power and data storage, making cloud adoption essential for businesses [3] Investment Perspective - Cloud companies benefit from attractive business models, often operating on subscription or SaaS models that provide recurring, high-margin revenue streams [4] - High switching costs create competitive advantages, as enterprises are often locked into specific cloud ecosystems, making it costly to switch providers [4] - The long-term fundamentals of the cloud sector remain strong, supported by trends in AI, digital transformation, and recurring revenue, despite fluctuations in valuations and market sentiment [4] Stock Selection Methodology - A list of 13 high-growth cloud stocks was compiled based on revenue growth exceeding 35% over the past five years, ranked by revenue growth [7] - Hedge fund sentiment was included for each stock, sourced from Insider Monkey's database as of Q3 2025, indicating interest from institutional investors [7][8] Company Highlights Braze, Inc. (NASDAQ:BRZE) - Reported Q3 fiscal 2026 revenue of $191 million, reflecting a 25.5% year-over-year growth and a 6% sequential increase, with 106 net new customers added in the quarter [11][12] - Despite a cautious valuation sentiment in the software sector, Braze's consistent revenue growth and improving customer acquisition trends position it well in the customer engagement landscape [12] Datadog, Inc. (NASDAQ:DDOG) - Achieved a 3-year revenue growth of 37.67% and reported record new logo annualized bookings, more than doubling year over year, indicating strong demand for its observability platform [13][14] - Datadog's expanding product suite and strong cross-sell capabilities position it favorably to capture a larger share of customer spending, even amid macroeconomic pressures [15][16]

Group 1 - Atlassian's stock price decreased by 1.6% [1] - Adobe's stock price fell by 2.5% [1] - Salesforce's stock price dropped by 2.7% [1] - ServiceNow's stock price also declined by 2.7% [1] - Cloudflare's stock price decreased by 3% [1] - Datadog's stock price fell by 2.2% [1] - Intuitive Surgical's stock price dropped by 4.9% [1]

Core Viewpoint - Datadog, Inc. (NASDAQ:DDOG) is recognized as a leading AI stock on Wall Street, with a Buy rating and a price target of $225.00 from DA Davidson, highlighting its potential for significant growth in the AI sector [1][5]. Group 1: Company Performance and Outlook - DA Davidson considers Datadog a top pick in the software sector, expecting continued momentum in AI-related services, which may lead to an earnings beat and sustained growth throughout the year [2][3]. - The firm anticipates that Datadog's management will likely maintain conservative guidance, aligning with current consensus rather than exceeding expectations significantly [3]. - Datadog is characterized as a high-growth company with a long runway for expansion, particularly in AI and cloud computing [5]. Group 2: Market Position and Competitive Landscape - Datadog offers a cloud-based SaaS platform focused on monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products, positioning itself strongly within the industry [5]. - While Datadog shows promise, some analysts suggest that other AI stocks may present greater upside potential with less downside risk, indicating a competitive landscape for investment opportunities [6].

Select Wall Street analysts think shares of Datadog and Atlassian are headed much higher in the next year.The S&P North American Technology Software Index, which tracks 111 software stocks, has fallen 24% from the record high it reached in September 2025. That puts the index in bear market territory. Investors are worried that artificial intelligence (AI) coding tools will limit demand for software in the future.I think the market is too pessimistic. Morgan Stanley's fourth-quarter CIO survey suggests softw ...

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, BMO Capital analyst Keith Bachman lowered the price target on the stock to $170.00 (from $215.00) while maintaining an “Outperform” rating. The firm believes DDOG’s thesis is intact despite valuation compression and OpenAI migration risk. According to the firm, Datadog is poised to have a solid December quarter. However, it does have some reservations regarding FY26 guide due to management’s normal conservat ...

​Datadog, Inc. (NASDAQ:DDOG) is one of the Best Software Stocks to Buy According to Wall Street Analysts. Recently, on January 30, Blair Abernethy from Rosenblatt Securities reiterated a Buy rating on the stock and lowered the price target from $200 to $180. Earlier, on January 29, Keith Bachman from BMO Capital also reiterated a Buy rating on Datadog, Inc. (NASDAQ:DDOG) but lowered the price target from $215 to $170. ​The ratings come ahead of the company’s Q4 2025 earnings, expected to be released on F ...

Core Viewpoint - Baillie Gifford continues to focus on technology and growth sectors, maintaining a global perspective despite a reduction in total assets held to $120 billion, down $15 billion from the previous quarter [1]. Holdings Overview - As of Q4 2025, Baillie Gifford holds a total of 265 companies with assets amounting to $120 billion, reflecting a decrease of $15 billion from Q3 [1]. Top Holdings - The firm remains heavily invested in global technology and consumer giants, with a notable emphasis on Latin American e-commerce platform MercadoLibre, and Nvidia leading the portfolio, indicating confidence in the long-term potential of AI infrastructure [4]. Top Buys - Significant increases in holdings include: - Axon Enterprise (AXON) with an additional investment of $860 million - Medline Inc (MDLN) with $437 million - Rocket Lab (RKLB) with $399 million - Google-A (GOOGL) with $373 million - Duolingo (DUOL) with $357 million - The firm shows strong interest in vertical technology sectors, particularly in safety technology and education [5][6]. Top Sells - The firm has reduced its positions in: - Datadog Inc (DDOG) by $1.01 billion - Cloudflare (NET) by $990 million - Shopify (SHOP) by $680 million - BioNTech SE (BNTX) by $630 million - Meta Platforms (META) by $590 million - This indicates a strategic retreat from cloud computing and vaccine-related companies, likely based on valuation and growth switching logic [7][8]. New Positions - New investments include: - Medline Inc (MDLN) with $437 million - United Therapeutics (UTHR) with $157 million - MongoDB (MDB) with $112 million - BillionToOne (BLLN) with $104 million - Silvergate Capital (SVM) with $35 million - The new positions reflect Baillie Gifford's exploration in emerging fields such as rare disease treatment and databases, showcasing a commitment to long-term tracking in technology and healthcare [9][10].

Industry Overview - The artificial intelligence (AI) boom is creating new opportunities for companies of all sizes, with a focus on those participating in the AI race as they have been a key source of stock market returns in recent years [1] Company: Datadog - Datadog is experiencing high demand for its AI products, which are integrated into its cloud observability technologies that help businesses manage digital infrastructure [3] - The company has launched an AI assistant called Bits AI to enhance workflows and new AI products like LLM Observability to assist developers in tracking costs and troubleshooting issues with large language models [4] - Datadog serves customers who adopt third-party AI models with its OpenAI Monitoring product, which tracks usage, costs, error rates, and response times [5] - As of the end of Q3 2025, Datadog had 32,000 customers, with over 5,000 using AI products, marking a 67% increase year-over-year; AI customers contributed 12% of the company's $881 million total revenue, doubling from 6% the previous year [7] - Datadog's stock is down 31% from its 52-week high, but the upcoming earnings report on February 10 could indicate continued growth in AI customer count and revenue [8] Company: Workiva - Workiva's platform aggregates data from various digital applications, simplifying the reporting process for large organizations [9] - The company launched an AI assistant that helps create reports by turning simple prompts into detailed content, enhancing the reporting experience [10] - The AI assistant is designed to understand context by familiarizing itself with documents within the Workiva platform, making it accessible throughout the ecosystem [11] - Workiva's revenue grew by 21% to $224 million in Q3 2025, driven by an increase in high-spending customers, with businesses spending at least $300,000 and $500,000 annually growing by 41% and 42% respectively [13] - Following a strong Q3 report, Workiva raised its full-year revenue forecast for 2025 to $881 million, with expectations for stock performance to improve if the forecast is exceeded [14]

Datadog, Inc. (NASDAQ:DDOG) is one of the most promising cloud stocks according to analysts. On January 22, Stifel upgraded Datadog, Inc. (NASDAQ:DDOG) from Hold to Buy, raising the price target to $205 from $160. The upgrade comes amid expectations of a strong Q4 earnings report. Similarly, on January 16, RBC Capital analyst Matthew Hedberg reaffirmed the firm’s price target of $175, along with a Buy rating on the stock. The firm’s price target implies a further 25% upside from the current levels. Datado ...