NASDAQ:DDOG

Datadog, Inc. (DDOG)

260.76
+3.95 (1.54%)
as of Jul 8, 2026, 9:02:50 pm Market Open.
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Investor Insights
star iconJul 8, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

Datadog, Inc. (DDOG-Q) is currently navigating a challenging landscape as software stocks face significant downturns, with shares reportedly cut in half. Despite a strong performance in data centers and hyperscalers, and a notable forecast by some experts projecting a 12-month price target of $182.50, the stock is not yet seen as cheap enough. One expert highlights a modest position within portfolios, indicating a cautious but optimistic outlook. The combination of these views suggests that while Datadog has substantial potential for growth, investors should approach with vigilance, particularly given the current market conditions affecting software companies.

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Consensus
Cautious
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Valuation
Overvalued
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PAST TOP PICK
(A Top Pick Mar 09/22, Down 45%)

Lifeguard in the pool, directs the traffic within the cloud. Data aggregator, so key when it comes to generative AI. Target of $99.75, still part of his portfolio.

BUY
Snowflake vs. Datadog Likes them both. If shares of Datadog came down, we could see a takeover bid. Snowflake will do well over 5 years under this CEO. You could buy a little Snowflake and wait.
BUY
One of the best monitoring and analytical solutions. Almost profitable. 12-month analyst target of $148, long runway.
TOP PICK
$100 upside on this. Monitoring and analytical tools. Software monitors performance and delivers alerts of any problems. It's your "lifeguard in the cloud". Leader in the application monitoring space. No dividend. (Analysts’ price target is $213.74)
BUY
They ensure cloud operations work for companies. It up 154% in the past 6 months. It reports in 2 weeks. They've benefit hugely from remote work and will continue to.
COMMENT
What he calls one of 15 Red Hot stocks: unstoppable growth stocks with a sky-high valuation (30-100x sales, not earnings) The stock has tripled YTD, because it's a textbook Covid play. The bar is set pretty high, priced at 44x next year's sales. It reports in 3 weeks.
PAST TOP PICK
(A Top Pick Oct 01/19, Up 150%) He took profits and got back in. Now is a great opportunity to buy during the current pullback. He targets $95. Their software and platform allows automated infrastructure monitoring across the entire technology spectrum, accelerating troubleshooting. Boasted 85% revenue growth YOY in the middle of the pandemic. They're free cash-flow positive and operating margins keep growing.
WAIT
Not too late to get in. Recent pullback, because of its tremendous run. One of his favourite IPOs. Sold it at $90, but will buy again in the $70s. Allows automated infrastructure monitoring. Phenomenal growth. In Q2, 65% Y/Y revenue growth. Cash flow positive, but volatility.
COMMENT

DDOG vs PS? DDOG has been a recommendation of his for a while, but it may be a little excessive in price right now. He was hoping to buy more of PS as they have 80% of the Fortune500 as customers looking for online training. He prefers PS at these price levels.

BUY ON WEAKNESS
His target is $48.60. He has taken about half his position off, looking to buy back in back in the mid-$30s. The company focuses on monitoring and analytic services, helping companies that are moving into the cloud. It is cash flow positive and is consistently adding to its profit margin. He expects a correction will be coming so he would buy on weakness.
BUY
He bought it shortly after it IPO'd. $48.60 is his target. DDOG is one of his favourites and this is a good time to buy. But this is a trading stock, not a long-term hold.
WAIT
He didn't by the IPO. He thinks it is a great growth stock. They are involved in infrastructure monitoring, particularly in the cloud environment. It does not have a lot of competition. Revenues are growing at 80% per year. He has a price target of $65. The expiration of the locked up shares from the IPO could be triggered if it closes above $36 today. This could bring 20% of the holdings back into the market.
TOP PICK
It's an IPO. Their flagship product is an infrastructure monitoring service, connecting cloud apps with complex back-end networks. Not sexy but they grew revenues in 2018 by 79%. They have a long runway.
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