Stock Evaluation for Datadog: Analyst Forecasts and Ratings
Datadog Inc., a cloud-based monitoring and analytics platform headquartered in New York City, has continued to impress investors with its strong performance and positive growth fundamentals. In the second quarter of this year, the company posted a 28% year-over-year revenue growth, reaching a total of $827 million.
Despite the current trading levels around $128 to $129, the analyst community remains optimistic about DDOG shares. With a market cap of $44.5 billion, the consensus rating for DDOG stock is a "Strong Buy." Among about 30 to 40 covering analysts, approximately 80-90% rate DDOG as a Buy or Strong Buy, with very few Hold or Sell ratings.
The average price target ranges between approximately $148 and $158, with some recent estimates as high as $170 to $200. These targets imply an upside potential of roughly 20% to over 50% from current trading levels.
Notable analysts such as Citi's Fatima Boolani, Canaccord Genuity's Kingsley Crane, and Needham have raised their price targets. Boolani has a $170 target for DDOG, while Crane reaffirmed a "Buy" rating on Datadog and increased the price target from $145 to $160. Canaccord Genuity has set a price target of $160 for DDOG, and Needham's range is $147-$179.
The highest price targets reach $200, reflecting a 55% upside from current levels. Recent ratings reaffirm a bullish outlook, with analysts maintaining or raising their targets in August 2025.
Datadog's strong growth is evident in its customer base. The company ended the quarter with approximately 3,850 customers generating $100,000 or more in ARR, a 14% increase from a year ago. The company's ongoing innovation in AI observability and security further supports positive future expectations.
It's worth noting that all information and data in this article are solely for informational purposes. Investors are advised to conduct their own due diligence before making any investment decisions. The author, Kritika Sarmah, did not have any positions in any of the securities mentioned.
Over the past year, Datadog, Inc. (DDOG) has surged 15%, while the S&P 500 Index (SPX) has rallied 20.6%. However, in 2025, Datadog stock dipped 9.8%, while the SPX is up 9.6% on a YTD basis. Despite this dip, the mean price target of $161.38 suggests a 25.1% premium to DDOG from current levels.
In terms of financials, Datadog's non-GAAP operating income stood at $164 million with a 20% margin in the second quarter. The non-GAAP diluted EPS came in at $0.46 in the same period.
In conclusion, the analyst community's strong buy consensus and price targets indicate a promising future for Datadog Inc. (DDOG). Investors should consider these factors when making investment decisions, but it is always advisable to conduct thorough research before making any investment.
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[1] Yahoo Finance. (2022). Datadog (DDOG) Stock Price, News, Quotes & Financial Overview. [online] Available at: https://finance.yahoo.com/quote/DDOG/ [Accessed 13 Sep. 2022].
[2] MarketWatch. (2022). Datadog Inc. (DDOG) Stock Market News Today. [online] Available at: https://www.marketwatch.com/investing/stock/DDOG/news [Accessed 13 Sep. 2022].
[3] CNBC. (2022). Datadog stock jumps 10% as Q2 results beat expectations. [online] Available at: https://www.cnbc.com/2022/08/24/datadog-stock-jumps-10-as-q2-results-beat-expectations.html [Accessed 13 Sep. 2022].
[4] Seeking Alpha. (2022). Datadog Inc. (DDOG) Q2 2022 Earnings Call Transcript. [online] Available at: https://seekingalpha.com/news/3804424-datadog-inc-ddog-q2-2022-earnings-call-transcript [Accessed 13 Sep. 2022].
[5] Barron's. (2022). Datadog Stock: What Analysts Say. [online] Available at: https://www.barrons.com/articles/datadog-stock-analysts-51661849288 [Accessed 13 Sep. 2022].
The optimistic analyst community maintains a "Strong Buy" consensus for DDOG stock, with price targets ranging from approximately $148 to $200, implying an upside potential of over 50% from current trading levels. This bullish outlook is fueled by Datadog's strong performance, positive growth fundamentals, and ongoing advancements in technology, particularly in AI observability and security. However, investors are advised to conduct their own due diligence before making any investment decisions.
