MoffettNathanson Reiterates Buy on Datadog After Post-Peak Pullback

Core Viewpoint - MoffettNathanson maintains a Buy rating and a $255 price target on Datadog, citing the stock's recent decline as an attractive entry point for investors [1] Group 1: Company Performance - Datadog delivered one of the strongest quarters in its coverage universe during the 2025 earnings season, driven by accelerating AI-native workloads [1] - Despite strong fundamentals, Datadog is projected to finish 2025 with negative returns due to a swift and severe selloff [2] Group 2: Market Conditions - The recent stock pullback is viewed as overdone, presenting a compelling buying opportunity as the company heads into 2026 [2] - Datadog is well positioned to benefit from ongoing cloud adoption and the increasing complexity of IT environments driven by generative AI, although macroeconomic conditions remain challenging [2]