Is Datadog (DDOG) an AI Stock Investors Should Be Watching?

Core Insights - Datadog, Inc. (NASDAQ:DDOG) is highlighted as a significant AI stock to monitor, with UBS analyst Karl Keirstead raising the price target from $165.00 to $189.00, indicating positive market sentiment towards the company [1][4] - The relationship between OpenAI, Datadog's largest customer, and emerging competitor ClickHouse is crucial, especially with an upcoming contract renewal for OpenAI [2][4] Company Analysis - Datadog offers a cloud-based SaaS platform focused on monitoring and analytics, particularly in cloud computing and AI-powered cybersecurity products [4] - The analysis indicates that ClickHouse is gaining market share in log management from Datadog, but this does not necessarily mean that OpenAI will not renew its contract with Datadog [4] Market Dynamics - The assessment of ClickHouse's impact on Datadog's business is essential, as it could influence OpenAI's future usage of Datadog's services [2][4] - Despite the competition, there remains potential for Datadog's growth post-renewal of OpenAI's contract, with a projected revenue/free cash flow multiple of 13x/50x for calendar year 2026 [4]