1 Growth Stock Down 32% to Buy Hand Over Fist in February, According to Wall Street

Core Insights - Datadog has developed a leading cloud observability platform that alerts businesses to technical issues in their digital infrastructure and sales channels before they affect customers [1] - The company is leveraging its expertise to assist businesses in effectively deploying AI software, with significant demand for its AI products and more offerings in the pipeline [2] - Datadog's stock is currently trading approximately 37% below its record high from November 2025, but analysts are optimistic, with a majority rating it as a buy and indicating potential for significant returns [3] AI Product Demand - In mid-2024, Datadog launched LLM Observability, a product that helps developers track costs, identify technical issues, and monitor output quality of large language models (LLMs) [4] - Many businesses lack the resources to build LLMs from scratch, leading them to adopt third-party models like those from OpenAI; Datadog offers OpenAI Monitoring to help these customers track usage, costs, response times, and error rates [5] - Datadog is preparing to launch new observability tools aimed at tracking the usage and performance of AI agents and coding assistants, which are expected to gain popularity as businesses increasingly rely on these technologies [6] Customer Engagement and Growth - By the end of 2025, 5,500 out of Datadog's 32,700 customers were using at least one of its AI products, marking a 57% increase from the previous year [7] - The Model Context Protocol (MCP) server, which connects Datadog's observability data with customer AI models, experienced an 11-fold increase in requests compared to the previous quarter, indicating a surge in the usage of Datadog's AI integrations [7]