Track market-moving stories before they get noisy

Atlatl Advisers LLC lifted its stake in Datadog, Inc. (NASDAQ: DDOG) by 65,607.1% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 18,398 shares of the company's stock after buying an additional 18,370 shares during the period. Datadog comprises

Fresh artificial intelligence (AI) agent protection news from CrowdStrike Holdings (NASDAQ:CRWD | CRWD Price Prediction) is lifting cybersecurity and observability software as a group, with the biggest gains landing on stocks that weren't part of the announcement.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Datadog (DDOG - Free Report) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company's business runs around its portfolio of more than 1,000 out-of-the-box integrations including public cloud, private cloud, on-premise hardware, databases and third-party software.

DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. DDOG has a Momentum Style Score of B, and shares are up 6.3% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $2.52 per share. DDOG also boasts an average earnings surprise of +15.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DDOG should be on investors' short list.

Datadog (DDOG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this data analytics and cloud monitoring company have returned +6.3%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Internet - Software industry, which Datadog falls in, has gained 2.2%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Datadog is expected to post earnings of $0.64 per share for the current quarter, representing a year-over-year change of +16.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $2.52 points to a change of +22.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $2.96 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Datadog.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Datadog, the consensus sales estimate for the current quarter of $1.14 billion indicates a year-over-year change of +28.9%. For the current and next fiscal years, $4.46 billion and $5.45 billion estimates indicate +30.2% and +22.2% changes, respectively.

Last Reported Results and Surprise HistoryDatadog reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +35.6%. EPS of $0.65 for the same period compares with $0.46 a year ago.

Compared to the Zacks Consensus Estimate of $1.08 billion, the reported revenues represent a surprise of +3.85%. The EPS surprise was +12.07%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Datadog is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Datadog. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Bernstein just reversed its Datadog call one quarter after a downgrade shook the stock, pointing to AI token consumption as the reason. Whether that optimism survives the November earnings report is the question every investor in the space should be…

Signs of accelerating AI workloads are pulling cloud software back into favor after a rough stretch for technology names. Datadog (NASDAQ:DDOG | DDOG Price Prediction) stock is up 5% to $259.15 in morning trading, leading the group higher.

Bernstein upgraded Datadog stock to Outperform from Market Perform, stating that its data show enterprise AI token consumption at the largest AI labs growing rapidly quarter over quarter. The new rating rests on the conclusion that the earlier view of Datadog’s AI-driven growth was too conservative, a reversal that comes one quarter after a downgrade tied to a revenue cut at Datadog’s largest AI-native customer and slower demand among established clients.

A broad selloff in technology stocks the prior week sets the background for the upgrade. Observability software from Datadog tracks how applications and cloud infrastructure perform, so more AI tokens moving through customer systems could translate into more activity for the company to monitor and bill.

Second-Quarter Results Back the AI Case
Second-quarter 2026 results already gave Datadog’s AI story a solid base. The company posted revenue of $1.12 billion, up 35.6% from a year earlier, and non-GAAP earnings per share (EPS) of $0.65, beating expectations. That marked Datadog’s fifth consecutive EPS beat.

Datadog’s larger accounts kept expanding as well, with customers paying $100,000 or more in annual recurring revenue up 23% to approximately 4,720. Growth in that tier picked up from 21% in the first quarter of 2026.

Management raised Datadog’s full-year 2026 revenue guidance to between $4.45 billion and $4.47 billion after that report. Chief executive Olivier Pomel tied the momentum to AI. He made the point in the August release, stating, “Our customers are building and deploying with AI, and they are using the Datadog platform to observe, secure, and act on their AI-enabled solutions.”

Datadog Builds Tools for AI Workloads
Datadog has been shipping products aimed directly at AI customers, including Bits AI for autonomous incident detection and resolution, AI Guard for protecting AI agents, and Bits Agent Builder for creating custom agents. The company launched more than 100 new capabilities at its DASH 2026 conference, including a Bring Your Own Cloud model that runs Datadog inside customer environments. It also acquired Adaptive ML to speed up its AI research.

That product push came alongside better profitability, with Datadog’s non-GAAP operating margin expanding to 23% from 20% a year earlier. Its free cash flow margin reached 25% in the quarter.

Snowflake and Cloudflare Trail the Leader
Checking in on the peers, Snowflake (NYSE:SNOW) stock is up 3%, a solid gain that still trails the jump in Datadog stock. Cloudflare (NYSE:NET) stock is up 0.4% to $297.58, lagging both Datadog stock and Snowflake stock. Snowflake sells a cloud data platform, while Cloudflare runs a network for security and content delivery.

Sector-wide gains are more modest, as the WisdomTree Cloud Computing Fund (NASDAQ:WCLD) is up 0.8%. Broader tech is running ahead of cloud software, as the Invesco QQQ Trust (NASDAQ:QQQ) is up 1%. That gap leaves the jump in Datadog stock looking like a company-specific reaction to the upgrade.

Bernstein Upgrade Sets Up Datadog’s November Report
Datadog is scheduled to report third-quarter 2026 results in early November, with its guidance calling for revenue of $1.135 billion to $1.145 billion. Datadog’s report needs to show AI-native customers spending more, since the upgrade rests on AI workload growth. Another focus is whether established customers also step up their spending after the slower demand behind last quarter’s downgrade.

Last quarter’s downgrade is a reminder that Datadog’s growth depends partly on its largest AI-native customer. When all is said and done, investors should keep their Datadog stock positions moderate. A second revenue cut could undo the optimism behind the new rating, and the prior week’s tech selloff showed how quickly sentiment can turn.

Contact [email protected] for any questions or corrections.

Birch Hill Investment Advisors LLC raised its position in Datadog, Inc. (NASDAQ:DDOG – Free Report) by 300.8% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 4,537 shares of the company’s stock after purchasing an additional 3,405 shares during the quarter. Birch Hill Investment Advisors LLC’s holdings in Datadog were worth $1,242,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also bought and sold shares of DDOG. EMC Capital Management acquired a new position in shares of Datadog during the 2nd quarter valued at $28,000. Cornerstone Financial Management LLC boosted its stake in shares of Datadog by 54.9% during the 2nd quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock worth $33,000 after acquiring an additional 45 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in shares of Datadog by 341.7% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 318 shares of the company’s stock valued at $38,000 after purchasing an additional 246 shares during the last quarter. Elevation Wealth Partners LLC boosted its position in shares of Datadog by 2,700.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 168 shares of the company’s stock valued at $44,000 after purchasing an additional 162 shares during the period. Finally, Armstrong Advisory Group Inc. purchased a new position in Datadog in the 3rd quarter worth about $46,000. Institutional investors and hedge funds own 78.29% of the company’s stock.

Analyst Upgrades and Downgrades DDOG has been the subject of a number of research reports. Weiss Ratings upgraded Datadog from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Rosenblatt Securities raised their target price on Datadog from $220.00 to $305.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. DA Davidson reissued a “buy” rating and set a $315.00 target price on shares of Datadog in a research report on Friday, August 7th. Royal Bank Of Canada boosted their target price on shares of Datadog from $280.00 to $320.00 and gave the stock an “outperform” rating in a research report on Monday, October 12th. Finally, Barclays raised their price objective on Datadog from $290.00 to $300.00 and gave the stock an “overweight” rating in a research report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $281.18.

View Our Latest Report on DDOG Datadog Trading Down 7.2% DDOG stock opened at $247.11 on Friday. The business has a fifty day moving average of $246.68 and a 200-day moving average of $221.26. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.23. The company has a market cap of $88.73 billion, a P/E ratio of 504.32, a PEG ratio of 24.12 and a beta of 1.51. Datadog, Inc. has a twelve month low of $98.01 and a twelve month high of $300.68.

Datadog (NASDAQ:DDOG – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. The firm had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The company’s revenue was up 35.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.46 earnings per share. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, equities research analysts expect that Datadog, Inc. will post 0.70 EPS for the current year.

Insiders Place Their Bets In other Datadog news, General Counsel Kerry Acocella sold 5,280 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $228.85, for a total transaction of $1,208,328.00. Following the completion of the transaction, the general counsel owned 115,243 shares of the company’s stock, valued at $26,373,360.55. This represents a 4.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Yanbing Li sold 12,700 shares of the stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $221.26, for a total transaction of $2,810,002.00. Following the transaction, the insider owned 250,446 shares of the company’s stock, valued at approximately $55,413,681.96. This represents a 4.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 991,988 shares of company stock worth $241,440,796 in the last 90 days. Company insiders own 6.48% of the company’s stock.

Datadog Profile (Free Report)

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog’s products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.

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Datadog, Inc. (DDOG) shares rise 280% since institutions first bought big in 2020.

DDOG offers an AI-powered, automated continuous monitoring and security platform for cloud-based applications and technology infrastructure. The company’s second-quarter fiscal 2026 earnings report showed $1.12 billion in quarterly revenue (a 36% year-over-year jump), operating income of $257 million (a 23% margin), 33,400 customers (up from 31,400 a year ago), and offered full-year revenue guidance of up to $4.47 billion (a 30% jump). DDOG reports again on Nov. 4.

It’s no wonder DDOG shares are up 96% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Big Money Loves its Datadog
Institutional volumes reveal plenty. In the last year, DDOG has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DDOG shares. They reflect our proprietary inflow signal, pushing the stock higher:

Huge inflows in May and June pushed DDOG shares higher – up 96% so far in 2026. Source: www.moneyflows.com
Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Datadog.

Datadog Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DDOG has had strong sales and earnings growth:

3-year sales growth rate (+27%)
3-year EPS growth rate (+110.7%)

Source: FactSet

Get real-time market updates

Also, EPS is estimated to ramp higher this year by +17%.

Now it makes sense why the stock has been generating Big Money interest. DDOG has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Datadog has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s generated 10 outlier inflow signals since 2020 and is up 280% since the first one. The blue bars below show when DDOG was a top pick on the Outlier 20 report…the Big Money buying continues:

DDOG shares have generated 10 outlier inflow signals since 2020 and are up 280% since the first one. Source: www.moneyflows.com
Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Datadog Price Prediction
The DDOG action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in DDOG at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here.

 | Source: Datadog, Inc.

NEW YORK, Oct. 14, 2026 (GLOBE NEWSWIRE) -- Datadog, Inc. (NASDAQ:DDOG), the leading AI-powered observability and security platform, today announced that it will report its third quarter fiscal year 2026 financial results before the U.S. financial markets open on Wednesday, November 4, 2026.

In conjunction with this announcement, Datadog will host a conference call on Wednesday, November 4, 2026 at 8:00 a.m. Eastern Time to discuss the Company’s financial results and financial guidance. To access the conference call by phone, please click

this link to register for dial-in details. A live webcast of the call will be available on the

Investor Relations page of the Company’s website, and a replay will be archived on the website.

About Datadog

Datadog is the leading observability and security platform for the AI era, providing businesses with unified visibility across the technology stack to manage complexity at scale. It brings applications, infrastructure, data, models, and security into one place, using AI to detect and resolve issues before they impact customers. Trusted globally by Fortune 500 companies and high-growth AI leaders, Datadog enables businesses to move faster with clarity and confidence.

Contact Information

AJ Ljubich
Datadog Investor Relations
[email protected]

Sabrina Morse
Datadog Public Relations
[email protected]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG - Free Report) .

Datadog currently has an average brokerage recommendation (ABR) of 1.29, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.29 approximates between Strong Buy and Buy.

Of the 45 recommendations that derive the current ABR, 38 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 84.4% and 6.7% of all recommendations.

Brokerage Recommendation Trends for DDOG

Check price target & stock forecast for Datadog here>>>

The ABR suggests buying Datadog, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is DDOG a Good Investment?Looking at the earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.52.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Datadog.

Datadog (DDOG - Free Report) ended the recent trading session at $271.34, demonstrating a -2.48% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.66%, and the technology-centric Nasdaq decreased by 0.22%.

The data analytics and cloud monitoring company's stock has climbed by 32.35% in the past month, exceeding the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.

Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company is expected to report EPS of $0.64, up 16.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 28.88% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.52 per share and a revenue of $4.46 billion, representing changes of +22.93% and +30.23%, respectively, from the prior year.

Any recent changes to analyst estimates for Datadog should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Datadog is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 110.22 right now. Its industry sports an average Forward P/E of 20.09, so one might conclude that Datadog is trading at a premium comparatively.

Investors should also note that DDOG has a PEG ratio of 7.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.18 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Datadog (DDOG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this data analytics and cloud monitoring company have returned +29.8% over the past month versus the Zacks S&P 500 composite's +0.8% change. The Zacks Internet - Software industry, to which Datadog belongs, has gained 8.8% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Datadog is expected to post earnings of $0.64 per share, indicating a change of +16.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.

The consensus earnings estimate of $2.52 for the current fiscal year indicates a year-over-year change of +22.9%. This estimate has changed +0.3% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $2.96 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has changed +0.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Datadog.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Datadog, the consensus sales estimate of $1.14 billion for the current quarter points to a year-over-year change of +28.9%. The $4.46 billion and $5.45 billion estimates for the current and next fiscal years indicate changes of +30.2% and +22.1%, respectively.

Last Reported Results and Surprise HistoryDatadog reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +35.6%. EPS of $0.65 for the same period compares with $0.46 a year ago.

Compared to the Zacks Consensus Estimate of $1.08 billion, the reported revenues represent a surprise of +3.85%. The EPS surprise was +12.07%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Datadog is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Datadog. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Datadog is surging while its closest rival and the broader software sector both slide lower, a split that raises a pointed question about whether this rally reflects genuine conviction or a momentum trade at a dangerously rich valuation.

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Datadog (NASDAQ:DDOG | DDOG Price Prediction) stock is up 6% to $272.50, a sharp gain for the observability and monitoring company. That strength arrives against a weaker software group, giving Datadog stock a move that belongs to it alone.

Across software, the iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) is down 0.4%, which puts Datadog stock on the opposite side of its own sector. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.5%, so the broad market is slightly higher while software lags behind it.

At the same time, Dynatrace (NYSE:DT) stock is down 0.8% to $58.23, a mild slip for the company Datadog competes with most directly in observability. Taken together, those three readings describe a single-stock rally, with Datadog stock carrying the move on its own shoulders.

Datadog Moves Apart From Software Datadog stock is climbing while Dynatrace stock and the software fund are both falling, a split that points to buying aimed squarely at this one name, and a gain of this size traces back to demand for Datadog specifically when a software fund slips and a direct observability competitor slides alongside it.

Isolated strength in Datadog stock can reflect conviction in the platform’s long-run staying power, since buyers are paying up for one monitoring provider while passing on Dynatrace stock. Such concentrated rallies can also fade once enthusiasm cools off, which is why the valuation behind Datadog stock deserves a closer look.

Checking in on some of Datadog’s other peers, Oracle (NYSE:ORCL) stock is down 0.77% to $138.46. Meanwhile, Cloudflare (NYSE:NET) stock is slipping 2% to $350.77.

What Datadog Stock Costs at This Level Over the past 52 weeks, Datadog stock has traded between a low of $98.01 and a high of $292.72. Those two figures frame the year Datadog shareholders have lived through, and they give investors a way to judge the current price against both extremes.

Datadog stock trades at a trailing P/E ratio of 504x, a multiple built on very thin profit over the past year. On a forward basis, the ratio is 85x, and that number depends on earnings Datadog hasn’t reported yet. Each ratio captures a different slice of the Datadog story, one looking back and the other looking ahead.

Paying up for growth is a familiar pattern in software, and Datadog stock is priced like a company expected to keep expanding its profit base. Any stumble in execution could pressure a multiple this rich, while steady delivery could help justify it. These figures leave it unclear whether Datadog can grow into that multiple quickly enough to support a price at these levels.

Weighing the Bull and Bear Cases Bulls point to a monitoring platform that keeps growing, with the market willing to pay a premium for that consistency. Datadog sells an analytics and monitoring platform for developers, information technology operations teams and business users, a broad audience that gives it several ways to strengthen customer relationships.

During Datadog’s August 6 earnings call, the company’s leadership struck an positive tone on demand. “Overall, we continue to see healthy trends in customer demand,” stated Olivier Pomel, Datadog’s co-founder and chief executive at the time of the call. Management also disclosed a usage reduction at Datadog’s largest customer. The chief financial officer declared that the company had “fully de-risked” guidance with respect to that account.

Skeptics can point to the valuation, since a multiple in the hundreds on trailing profit leaves Datadog stock little room for disappointment. A usage cut at one large account also shows how shifts in concentrated spending can affect the outlook for a company priced for steady expansion. Momentum-driven buying tends to attract late buyers as enthusiasm peaks, adding another layer of risk around Datadog stock.

What to Watch Next Investors may want to watch for Datadog’s next quarterly report, which could show whether profits are catching up to the forward multiple. Holding the gain in the days ahead could also reveal how durable this burst of buying proves to be. Calm follow-through would suggest steady accumulation, while a quick giveback would point to short-term trading around Datadog stock.

Given the rich multiple, anyone adding to their Datadog exposure should size their positions carefully. Existing holders should weigh their risk tolerance against a valuation that leaves Datadog stock sensitive to any slowdown. Spreading their exposure across several software names could help cushion a sharp reversal in any single holding.

Datadog stock carries its own gain while the software fund and Dynatrace stock drift lower, which sets it apart in its corner of the market. Shareholders could keep an eye on Datadog stock relative to its 52-week high, since that level has limited the shares over the past year.

Contact [email protected] for any questions or corrections.

Datadog (DDOG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this data analytics and cloud monitoring company have returned +5.8% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Internet - Software industry, to which Datadog belongs, has gained 16.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Datadog is expected to post earnings of $0.64 per share, indicating a change of +16.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $2.52 points to a change of +22.9% from the prior year. Over the last 30 days, this estimate has changed +0.3%.

For the next fiscal year, the consensus earnings estimate of $2.96 indicates a change of +17.4% from what Datadog is expected to report a year ago. Over the past month, the estimate has changed +0.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Datadog is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Datadog, the consensus sales estimate of $1.14 billion for the current quarter points to a year-over-year change of +28.9%. The $4.46 billion and $5.45 billion estimates for the current and next fiscal years indicate changes of +30.2% and +22.1%, respectively.

Last Reported Results and Surprise HistoryDatadog reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +35.6%. EPS of $0.65 for the same period compares with $0.46 a year ago.

Compared to the Zacks Consensus Estimate of $1.08 billion, the reported revenues represent a surprise of +3.85%. The EPS surprise was +12.07%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Datadog is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Datadog. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Personal AI assistants are moving beyond answering questions to carrying out everyday tasks through several steps. Meta Platforms’ (META) Muse agent is one example that has taken the world by storm over the past week. It works in its own virtual environment, with its own “computer,” “browser,” and “memory” customized to each user. 

It can perform tasks, suggest ideas or goals, and is otherwise designed to align with and serve the user, including making phone calls for doctor’s appointments, reservations, and many more use cases.

Much of the work happens behind the scenes. Cloud computing supplies model capacity, software connects services, and security systems govern what an assistant may do. Wearables can add timely context through sensors and low-power chips. These layers make personal AI a useful way to understand the wider AI value chain, while the person sets the goal and reviews important decisions.

Key Takeaways

Personal agents can take on errands that have sat on a to-do list for months. Start with a real goal, give the assistant useful context, and let it handle the research and follow-up.
Meta’s new Muse agent is one consumer-facing path. Projects such as OpenClaw, Hermes Agent, and Instinct show other ways an assistant can work across tools and messages.
We expect wearables with sensors and low-power processors, hands-free control beyond taps, keyboards, and mice, and connected-health devices to see massive adoption as the other half of this personal AI cycle.

What Makes an AI Assistant Personal?
A chatbot can answer a question. A personal agent can carry a goal through several steps, use tools, and return with a finished result or a decision for you. Instinct, which works through familiar messaging channels, offers another glimpse of the experience. In an anonymous, self-reported example, a user sent a voice note after a paper parking ticket blew away. The assistant checked the county portal until the citation appeared, paid it with a saved card, and returned the receipt. A single request became a completed errand.

How Can You Get Started With a Personal AI Agent?
Here is what personal AI has looked like in my own life. I asked an agent to look for unclaimed funds for me and family members; it found quite a bit, across several states! It tracked which credit card perks I had used and matched the remaining Chase Reserve benefits to upcoming trips. It found a physical therapist who accepted my insurance, emailed their offices about when I could start, and handled the scheduling back-and-forth.

Imagine scrolling through useful actions your AI agent can take on your behalf instead of getting pulled into addictive feeds or searching across a dozen websites. It might find a neighborhood event that fits an open weekend and your goal of getting the kids outdoors more. It could also gather tax forms and other documents you’ve been putting off, or help with urgent tasks that are easy to delay.

To get started, choose a task you would be glad to cross off. Share the context the assistant needs, such as a trip, email thread, account benefit, bill, or preference. If supported, connect Gmail or your calendar so it can keep up with relevant updates. For example:

Look at my upcoming trips and the benefits on my credit cards. Find the perks I can still use, match them to each trip, and take care of any follow-up needed to claim them.

An agent can also help with paperwork, from government forms and finding qualified healthcare that accepts your insurance to reimbursements and claim-denial negotiations. It also has “tracks” of things it can recommend to explore to utilize it in various ways (e.g. personal AI blueprints). Power to the people! 

For more ideas, browse the Instinct use-case gallery and the Use Cases for Agents personal-use directory.

What Happens to E-commerce?
When an assistant can navigate the web and handle the shopping steps for a person, it also changes the very nature of product discovery and the customer relationship. Not every platform welcomes that shift. Amazon.com (AMZN) blocked Muse from shopping on its site. According to Axios, Amazon said it had not authorized Muse to access customer accounts, scrape data, or process transactions, and raised concerns about security and user experience.

Meanwhile, I personally have my Muse agent shopping across Facebook Marketplace, eBay, Poshmark, Craigslist, and Grailed all at once for numerous items on my wish list, ranging from clothing to external monitors. 

Shopify (SHOP) is taking a more open route and announced a partnership with Meta the same day. Its agentic storefronts let eligible merchants make products available in AI shopping channels, including Meta, while merchants retain the customer relationship after a sale. These approaches show how personal agents may reshape commerce itself as much as the interface. For a deeper look at that business-model angle, see our companion article on personal AI.

The ease of use depends on work that customers rarely see. Meta describes a separate permission system for Muse that evaluates connector actions and network access. The user should have clear approvals and a record of what happened; product teams and security providers build and operate the systems behind those controls.

This is why CrowdStrike (CRWD), Palo Alto Networks (PANW), and Datadog (DDOG) belong in the discussion of agent identity, security, and observability. Their current revenue spans much more than personal agents, but the need to govern software that acts on a user’s behalf is growing.

Meta 2.0 Takes Shape
Muse also puts Meta’s larger investment cycle into a consumer product. Meta expects 2026 capital expenditures of $130 billion to $145 billion, including finance-lease principal payments. That guidance covers its wider AI and core-business infrastructure. Meta has also identified technical talent, particularly for AI, as a major driver of expense growth. Its Superintelligence Labs says it rebuilt the AI stack that produced Muse Spark.

The silicon strategy has a named partner. Meta and Broadcom (AVGO) expanded their partnership to co-develop multiple generations of Meta’s custom MTIA chips for AI inference and recommendations. Broadcom is working across chip design, advanced packaging, and Ethernet networking. Meta says the program will support AI across its apps and services.

Together, models, compute, talent, and distribution across apps and devices are taking shape as Meta 2.0. Muse gives consumers an early view of how those investments can show up in everyday life. Sustained use for meaningful tasks will show how much of that opportunity materializes.

Personal AI Works Across the Cloud and the Edge
Personal AI can work in the cloud and on a device at the same time. Cloud systems provide model inference, search, data storage, and connections to services. Cameras, microphones, and health sensors gather context close to the user; processing some signals on the device can reduce delay and avoid sending every raw input to the cloud. The most useful experience can draw on both layers.

This past week, the Q3 2026 rebalance saw Ambiq Micro (AMBQ) added to the ROBO Global Artificial Intelligence Index (THNQ). Ambiq is a semiconductor company focused on ultra-low-power chips for edge AI and battery-powered devices. Its SPOT platform supports local processing while reducing power use.

Everyday sleep tracking offers a more familiar example of health data from a wearable. Ambiq’s sleepKIT is designed for smartwatches and fitness bands to detect sleep and classify light, deep, and REM stages using on-device models on its low-power Apollo chips. That illustrates how edge processing can turn routine signals into useful context while limiting power demands. A future personal assistant could help someone review sleep patterns over time, though Ambiq’s product information does not establish an integration with a personal-agent service.

Rapid response is another compelling direction, especially for older adults. An existing smartwatch fall-detection feature can call emergency services after a detected hard fall if the wearer remains immobile, share its location, and send Medical ID details when that option has been enabled. A future wearable-linked assistant might help request an ambulance and, using permissions set in advance, relay relevant conditions, location, and selected sensor readings to responders or family contacts.

That richer agent workflow remains prospective. The need is clear: more than one in four U.S. adults age 65 or older falls each year. We expect rapid response and “aging in place” to become major drivers of personal AI adoption as useful services connect with dependable sensing. Perhaps most importantly, personal AI will level the playing field so people who have felt “out-paced” by newer technology now have a technology partner that can help them overcome tech-illiteracy (and hopefully, avoid scams!).  

We expect low-power sensing, local inference, and cloud-based assistance to support a widening set of products, from health monitors to glasses and other wearables. Ambiq reported second-quarter 2026 net sales growth of approximately 90% year over year, citing demand for edge AI solutions. Broadcom also joined THNQ at the Q3 2026 rebalance. The two companies play different roles in the personal AI value chain, from data centers to devices.

How Does the THNQ Index Track the Personal AI Opportunity?
The ROBO Global Artificial Intelligence Index (THNQ) tracks companies across the global AI value chain, from the semiconductors behind data-center inference and edge devices to the cloud, software, and security companies that let agents connect, act, and stay governed. That breadth reflects the several sources of demand behind a single personal agent, rather than any one product or platform. Recent additions such as Ambiq and Broadcom show how the index evolves as new layers of the value chain mature.

We are still in the early innings of personal AI. We expect use cases to multiply as agents become easier to use, devices contribute timely context, and more services allow assistants to act. The most compelling outcome is practical: people around the world gaining the ability to finish tasks that once demanded too much time, technical know-how, or persistence.

For more news, information, and analysis, visit the Artificial Intelligence Content Hub.

THNQ is the underlying index for the ROBO Global Artificial Intelligence ETF (THNQ) and the L&G Artificial Intelligence UCITS ETF (AIAI.LN).

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.

Fastly launched new AI traffic controls this morning and the whole edge security category moved with it, including rivals that announced nothing at all. The question buyers are not asking loudly enough is whether availability and adoption are the same…

Fastly (NASDAQ:FSLY) is at the center of a same-session bid across edge security and artificial intelligence (AI) traffic infrastructure, with two large peers rising alongside it on no news of their own. The move looks like buyers repricing a category rather than reacting to an isolated launch.

The First Trust Cloud Computing ETF (NASDAQ:SKYY) is at $166.72, up 3% in Monday trading. The Invesco QQQ Trust (NASDAQ:QQQ) is at $738.51, up 2%, and all three operating names sit well ahead of both funds.

Fastly stock is at $27.09, up 14% in Monday trading, extending a run tied directly to today’s product launch. Meanwhile, Cloudflare (NYSE:NET | NET Price Prediction) stock is at $346.22, up 7%, moving as the closest competitor in the same request path in front of customer applications. Datadog (NASDAQ:DDOG) stock is at $241.33, up 5%, adding to the read that observability and security-adjacent infrastructure names are being taken as a group.

AI Firewall Launch Anchors the Move Fastly announced three new products this morning, all available now: AI Runtime Control, AI Firewall, and new API Security capabilities. AI Firewall is designed to mitigate attacks against large language models, including prompt injection, by evaluating prompts in the request path at the edge and blocking malicious activity before it reaches the targeted model.

AI Runtime Control from Fastly routes model calls through a single endpoint across public and self-hosted providers, giving organizations visibility into token spend along with rate limiting, budget controls and failover. API Security enforces application programming interface (API) contracts, applying consistent rules to traffic generated by autonomous agents as well as conventional traffic.

Kelly Shortridge, Fastly’s Chief Product Officer, stated that enterprises adopting coding agents and artificial intelligence features need control in production, at runtime, without delay, friction or disruption. She added that Fastly is extending the real-time control customers already trust for content delivery and software security to the models, applications and agents reshaping distributed systems.

Cloud Peers Confirm the Category Bid Cloudflare stock rising in the same session without a launch of its own is the confirming signal. The company competes with Fastly directly in the same request path, selling delivery and security from the same position in front of a customer’s applications, so a category being repriced while the closest competitor climbs alongside the announcer is a different situation from one company being singled out.

Datadog stock’s move fits the same read on observability and security-adjacent infrastructure catching an artificial intelligence bid, without a company-specific catalyst today. Fastly stock is nonetheless well ahead of both peers, which suggests the launch is adding something specific on top of the category move rather than merely riding it (we profiled seven companies powering the AI buildout beyond the chipmakers in a free report here).

Bull Case and Complication for Fastly Fastly disclosed two figures from its own network in the announcement. Machine-generated traffic crossed 50% of traffic across Fastly’s network in July and August of this year, and Fastly said artificial intelligence traffic grew 6.5 times faster than human traffic from January through May.

The bull case for Fastly is that the traffic shift the company describes is measurable on its own network rather than borrowed from a forecast, and a business already positioned in the request path can charge for governing what passes through it. The complication for Fastly is that availability isn’t adoption, and today’s announcement carries no customer, no contract and no revenue attached to it.

What to Watch Cloudflare stock rising alongside Fastly stock suggests that buyers are taking the category rather than Fastly’s specific products, which is a weaker reason to own FSLY shares than the launch itself would imply. The test Fastly faces is whether it can turn a genuine traffic trend into pricing power before larger platforms bundle the same controls into what they already sell.

Traders can watch for follow-through in Cloudflare and Datadog through the week, and Fastly’s next earnings update can offer the first read on whether the launch is being adopted rather than merely announced. Shareholders may want to check for whether Fastly reports customer wins or attach rates on the new products in coming quarters.

Investors sizing new positions in Fastly stock should keep their exposure modest given the availability-versus-adoption gap. They should also scale their risk to account for the possibility that today’s session reflects a category bid more than company-specific pricing power.

Contact [email protected] for any questions or corrections.

Key Takeaways Datadog's $100,000-plus customer base rose 23% to about 4,720 in Q2 2026, fueling enterprise growth.AI adoption deepens, with 750-plus AI-native customers and MCP tool calls quadrupling quarter over quarter.Datadog posted 36% revenue growth, while guidance reflects a usage reduction from its largest customer. Datadog's (DDOG - Free Report) enterprise customer base is expanding at a pace that stands out even in a crowded observability and security software market. In the second quarter of 2026, the company's enterprise new logo annualized bookings more than doubled year over year, while the number of customers generating $100,000 or more in annual recurring revenue climbed to about 4,720, a 23% increase from roughly 3,850 a year prior. Total customer count rose to approximately 33,400 from 31,400. This broadening of large-account relationships is unfolding alongside deeper product adoption, as Datadog continues to layer AI-driven observability and security capabilities, including Bits Code, Bits Chat and Bits Agent Builder, all reaching general availability in the quarter, onto its core monitoring platform.

Over 750 AI-native customers now rely on Datadog to monitor their tech stacks, and all 10 of the largest AI companies are counted among its customers. Management also pointed to a sharp rise in agentic activity, with MCP tool calls quadrupling quarter over quarter, alongside expanding use of newer offerings such as Cloud SIEM, Data Security and GPU monitoring within larger enterprise accounts.

The recent enterprise momentum builds on the second quarter in which revenues grew 36% year over year to $1.12 billion, ahead of the company's guidance. Non-GAAP operating margin reached 23%, up from 20% a year earlier, and free cash flow rose to $279 million from $165 million. Remaining performance obligations reached $3.47 billion, up 43% year over year, while current RPO grew roughly 40%, suggesting that contracted revenue visibility remains solid even as usage-based pricing introduces some quarter-over-quarter variability.

Guidance reflects both the opportunity and its limits. Datadog's third-quarter revenue outlook of $1.135 billion to $1.145 billion and full-year range of $4.45 billion to $4.47 billion embed a previously flagged usage reduction from its single largest customer, a reminder that concentrated accounts can introduce volatility even as the broader enterprise base expands. Full-year non-GAAP operating income guidance of $1.01 billion to $1.03 billion points to continued margin discipline. Balanced against this is elevated GAAP operating expense growth, driven partly by the recent Adaptive ML acquisition aimed at bolstering AI research capabilities — an investment that trades near-term profitability for longer-term product differentiation.

Rival Software Firms See Similar Enterprise MomentumDynatrace (DT - Free Report) and Elastic (ESTC - Free Report) , two other listed observability and monitoring companies, are reporting comparable enterprise expansion trends. Dynatrace posted record new-logo annual recurring revenue growth of more than 160% in its most recent quarter, while total ARR reached $2.14 billion, up 17% year over year. Elastic, meanwhile, grew its $100,000-plus ACV customer cohort past 1,800 accounts, its largest quarterly addition to that tier on record, alongside 27% remaining performance obligation growth. Both Dynatrace and Elastic cite AI-driven workload complexity as a key demand driver, a theme that mirrors Datadog's enterprise trajectory, even as each company's growth rates and cohort sizes differ.

DDOG’s Share Price Performance, Valuation & EstimatesShares of DDOG have surged 74.7% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 17%.

DDOG’s YTD Price Performance
Image Source: Zacks Investment Research

From a valuation perspective, DDOG appears overvalued, trading at a forward price-to-sales ratio of 16.04, significantly higher than the Internet – Software industry average of 4.2. The company carries a Value Score of F.

DDOG’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DDOG’s 2026 earnings is currently pegged at $2.52 per share, suggesting an increase of 0.4% over the past 30 days.

Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Yanbing Li, Chief Product Officer of Datadog, Inc. (DDOG +0.23%), sold 12,700 shares of the company on September 11, 2026, as disclosed in a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$2.8 millionShares sold12,700Post-transaction shares (directly held)250,446Post-transaction value~$55.40 millionTransaction value based on SEC Form 4 weighted average sale price ($221.26); post-transaction value based on September 11, 2026 market close ($221.21).

Key questionsWhat prompted this disposition of Class A Common Stock?
The sale was conducted under a Rule 10b5-1 trading plan established on June 12, 2026, which allows corporate insiders to schedule future transactions to mitigate concerns regarding trades made with non-public information.What is the insider's remaining direct equity position?
Yanbing Li continues to hold 250,446 shares of Class A Common Stock following this disposition, which represents a decrease from the 263,146 shares held prior to the trade.What was the market environment at the time of the sale?
The stock was priced at $221.21 at the September 11, 2026 market close, and shares had produced a one-year return of 59% as of that transaction date.Does the reporting owner maintain any indirect holdings?
The current filing indicates that the insider holds no shares indirectly through family trusts or other legal entities, with the total beneficial ownership consisting entirely of directly held shares.Company OverviewMetricValueShare Price (as of market close 2026-09-15)$230.27Market Capitalization$81.1 billionRevenue (TTM)$4.0 billionNet Income (TTM)$177.6 millionCompany SnapshotDatadog provides a comprehensive cloud-based monitoring and analytics platform that integrates infrastructure oversight, application performance monitoring, log management, and security surveillance into a unified Software-as-a-Service (SaaS) offering.The company operates on a subscription-based SaaS model, generating recurring revenue from customers who pay for access to its monitoring and analytics capabilities, with pricing typically scaled based on usage and feature tier.Datadog serves developers, IT operations personnel, and business stakeholders across North America and internationally, targeting enterprises and mid-market organizations that require real-time visibility into their cloud and hybrid infrastructure environments.Datadog is a leading provider of cloud-based observability and monitoring solutions. The company has established a competitive advantage through its integrated platform approach, which consolidates multiple monitoring functions into a single pane of glass, enabling customers to reduce tool sprawl and operational complexity.

With a strong presence across North America and international markets, Datadog continues to capitalize on the secular trend toward cloud adoption and the increasing complexity of modern software infrastructure.

What this transaction means for investorsThe September 11 sale of Datadog stock by Chief Product Officer Yanbing Li took place after shares delivered a 59% return over the trailing 12 months. Her disposition at a weighted average price of $221.26 occurred at a time when shares were moving up, with the stock closing at $230.27 on September 15, just days after her transaction.

That said, Li's disposal was not a market-timed event. Rather, it was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan. Such plans allow insiders to meet portfolio diversification or liquidity needs while operating within SEC guidelines.

Li also maintains a substantial equity stake, post-disposition. Her 250,446 directly held shares ensures continued alignment with shareholder interests.

Datadog stock is moving up thanks to strong business performance. In the second quarter, the company reported a 23% year-over-year increase in customers with annual recurring revenue of $100,000 or more. This demonstrates Datadog's ability to attract large clients to its platform. It also delivered Q2 revenue of $1.1 billion, which represents outstanding 36% year-over-year growth.

Datadog, Inc. (NASDAQ:DDOG – Get Free Report) CEO Olivier Pomel sold 89,497 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $207.86, for a total transaction of $18,602,846.42. Following the completion of the sale, the chief executive officer owned 586,416 shares in the company, valued at $121,892,429.76. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Olivier Pomel also recently made the following trade(s):

On Wednesday, September 2nd, Olivier Pomel sold 26,331 shares of Datadog stock. The shares were sold at an average price of $212.90, for a total transaction of $5,605,869.90. On Wednesday, August 19th, Olivier Pomel sold 47,054 shares of Datadog stock. The stock was sold at an average price of $235.49, for a total transaction of $11,080,746.46. On Wednesday, August 5th, Olivier Pomel sold 127,141 shares of Datadog stock. The stock was sold at an average price of $286.71, for a total transaction of $36,452,596.11. On Thursday, July 23rd, Olivier Pomel sold 47,054 shares of Datadog stock. The shares were sold at an average price of $244.79, for a total value of $11,518,348.66. On Tuesday, June 16th, Olivier Pomel sold 84,698 shares of Datadog stock. The shares were sold at an average price of $232.30, for a total value of $19,675,345.40. Datadog Price Performance Shares of NASDAQ:DDOG opened at $221.21 on Friday. The company has a market capitalization of $79.43 billion, a PE ratio of 451.46, a price-to-earnings-growth ratio of 21.66 and a beta of 1.49. The company has a debt-to-equity ratio of 0.23, a quick ratio of 3.20 and a current ratio of 3.20. The stock has a fifty day moving average of $245.59 and a 200-day moving average of $196.67. Datadog, Inc. has a one year low of $98.01 and a one year high of $292.72.

Datadog (NASDAQ:DDOG – Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. Datadog had a return on equity of 5.67% and a net margin of 4.48%.The business had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.08 billion. During the same period in the previous year, the firm posted $0.46 EPS. The company’s quarterly revenue was up 35.6% on a year-over-year basis. Datadog has set its Q3 2026 guidance at 0.630-0.650 EPS and its FY 2026 guidance at 2.500-2.540 EPS. As a group, equities analysts anticipate that Datadog, Inc. will post 0.71 EPS for the current fiscal year. Institutional Investors Weigh In On Datadog Institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System lifted its position in shares of Datadog by 27,002.8% in the second quarter. California State Teachers Retirement System now owns 121,189,509 shares of the company’s stock worth $31,552,901,000 after buying an additional 120,742,361 shares during the last quarter. State Street Corp boosted its position in shares of Datadog by 106.8% in the third quarter. State Street Corp now owns 13,732,777 shares of the company’s stock valued at $1,955,547,000 after acquiring an additional 7,091,075 shares during the period. Norges Bank bought a new stake in Datadog in the 4th quarter valued at $469,461,000. Invesco Ltd. grew its position in Datadog by 119.2% during the third quarter. Invesco Ltd. now owns 4,075,721 shares of the company’s stock worth $580,383,000 after buying an additional 2,216,402 shares in the last quarter. Finally, Employees Provident Fund Board acquired a new stake in Datadog during the fourth quarter worth about $251,582,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Datadog Here are the key news stories impacting Datadog this week:

Positive Sentiment: Wedbush upgraded Datadog to “strong buy,” following its initial “outperform” rating and a $275 price target—about 24% above the referenced share price. The broader analyst consensus remains “moderate buy,” with an average target of $276.32. Zacks analyst upgrade article Positive Sentiment: AI coding agents may generate more software changes, failures and operational complexity, increasing the need for monitoring, security and analytics. This could expand Datadog’s addressable market rather than reduce it as companies adopt AI at scale. AI agents and monitoring market article Positive Sentiment: Datadog’s latest quarterly results showed strong operating momentum: revenue rose 35.6% year over year to $1.12 billion, exceeding expectations, while earnings per share of $0.65 topped the $0.58 consensus estimate. The company guided to third-quarter fiscal 2026 EPS of $0.63–$0.65 and full-year EPS of $2.50–$2.54. Neutral Sentiment: Brokerage opinions remain unusually broad, ranging from Goldman Sachs’ $158 “sell” target to several buy or outperform targets near $300. This highlights both strong growth expectations and significant disagreement over valuation. Negative Sentiment: CEO Olivier Pomel sold 89,497 shares worth approximately $18.6 million under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 13.24%. While scheduled selling is not necessarily a bearish signal, repeated insider sales can pressure sentiment. Negative Sentiment: Baron Fifth Avenue Growth Fund trimmed its Datadog position during the second quarter. Additionally, the stock’s very high earnings multiple—above 450 times trailing earnings—leaves it vulnerable to disappointment if growth slows or AI monetization takes longer than expected. Analysts Set New Price Targets DDOG has been the subject of a number of analyst reports. Capital One Financial upped their price objective on shares of Datadog from $217.00 to $268.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Citigroup lifted their target price on shares of Datadog from $300.00 to $305.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Citizens Jmp lifted their target price on shares of Datadog from $225.00 to $311.00 and gave the stock a “market outperform” rating in a research report on Monday, July 20th. Royal Bank Of Canada restated an “outperform” rating and set a $280.00 price target on shares of Datadog in a report on Thursday, July 16th. Finally, Wedbush started coverage on shares of Datadog in a research report on Friday. They issued an “outperform” rating and a $275.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $276.66.

Read Our Latest Research Report on DDOG

Datadog Company Profile (Get Free Report)

Datadog, Inc (NASDAQ:DDOG) is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company’s products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.

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Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting SeasonDatadog NASDAQ: DDOG is investing in artificial intelligence capabilities, proprietary models and enterprise sales as it seeks to expand its observability platform’s role in monitoring increasingly complex cloud and AI workloads, Chief Financial Officer David Obstler said during a company session.

Obstler said Datadog’s collection of observability data—covering signals tied to the functioning of customer-facing applications—could become a competitive advantage as AI models improve the company’s ability to identify and predict application issues. The company recently acquired Adaptive ML, which he described as a specialist in reinforcement learning for IT management and observability.

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5 of the Most-Upgraded Stocks Over the Last Quarter Are All Software Names—Here's WhyDatadog has also established a research lab and previously released a model called Toto, according to Obstler. He said the company intends to use a combination of its proprietary data, open-source models and foundation models to develop more predictive observability capabilities.

AI vision centers on predictive monitoring and remediation Obstler described a long-term vision in which Datadog can generate more accurate real-time signals, improve application functionality and potentially support automated remediation. He said the company is not yet at that point, but its Bits product line is intended to use models and data to become more predictive.

Looking Beyond CrowdStrike? 3 AI Security Stocks Stand OutUnder the envisioned approach, customers would determine how much authority to give the platform. For certain issues, the platform could automatically remediate a problem, while for others it could provide a recommendation requiring human approval, he said.

“That has tremendous ramifications, both in terms of the speed and also the efficiency in human capital,” Obstler said.

He also said AI adoption may increase Datadog’s opportunity because the company monitors components that affect an application’s functionality. As customers build AI-enabled applications using external models, open-source models and inference infrastructure, they create more systems and activity to monitor, he said.

Datadog has begun monetizing AI observability through its Agent Observability offering, according to Obstler. He said thousands of customers are using the product and that the company is beginning to see related revenue streams.

AI-native customers show expanding use cases Obstler characterized AI-native companies as cloud-native businesses investing in modern applications, operating without legacy infrastructure and experiencing accelerated demand. Datadog is seeing strong workload growth among those customers, he said, as well as a movement from internally built, open-source or pieced-together observability systems toward Datadog’s platform.

These newer customers are also using more of Datadog’s products on average, Obstler said. While the company initially expected its primary AI opportunity to center on production inference workloads, it has also received requests from larger hyperscalers and other companies to support training and post-training workloads.

“The speed of this is such that the pre-production or late training into production is starting to merge,” Obstler said, adding that the company does not have evidence to conclude it will become “the training company.”

On customer retention, Obstler said Datadog’s gross retention has historically been in the upper 90% range, with larger enterprises at the high end. He acknowledged that some customers use a combination of Datadog and other tools, depending on the real-time requirements of particular workloads.

For its largest customer, Datadog has commitment contracts, and Obstler said that customer renewed and extended its agreement. The company has incorporated only the commitment level from that customer into its guidance, he said, because usage can vary above that amount.

Product changes target customer efficiency Obstler pointed to Infinite Cardinality Metrics, Flex Logs, Frozen Logs and Metrics without Limits as examples of product innovations designed to help customers manage data more efficiently. He said Datadog has become more focused on understanding how customers use its platform and helping them avoid processing data that does not provide sufficient value.

For Infinite Cardinality Metrics, Datadog can sort or curate certain metrics before they are fully processed, according to Obstler. He said the approach can improve customer value while reducing costs associated with processing data that may not be useful.

Datadog is also expanding access to data stored outside its platform. With Federated Logs, customers can link logs stored in systems including ClickHouse and Databricks without moving all of that data into Datadog, Obstler said. He said the strategy allows customers to retain data externally for volume, regulatory or other reasons while using Datadog’s analytics.

Obstler said Datadog believes keeping users centralized on its platform can support higher average revenue per customer, even if some data remains elsewhere. The company has also introduced related capabilities such as Data Observability Pipelines and Bring Your Own Cloud, he said.

Enterprise cloud migration remains a focus Obstler said cloud migration remains an important opportunity because substantial legacy infrastructure remains in place. He cited research-company estimates that applications in the cloud account for somewhere in the upper 20% to 30% range, while noting that some enterprises have not yet begun material cloud projects.

AI-driven technology change is increasing the urgency for enterprises to modernize applications and move them to the cloud, he said. Datadog is expanding its enterprise sales approach, including key-account coverage, named and major accounts, channel investments and data-center investments, to pursue those opportunities.

Finally, Obstler said Datadog continues to invest heavily in research and development, including in proprietary models and coding tools. He said the company is testing the productivity impact of coding agents through A/B teams with differing levels of access to those tools.

According to Obstler, Datadog has consistently invested 30% of revenue in R&D, or more than $1 billion, and is focused on using that investment to keep its integrated platform competitive against emerging point solutions.

About Datadog (NASDAQ:DDOG)Datadog, Inc NASDAQ: DDOG is a cloud-based software company that provides monitoring, observability, security and analytics tools for modern applications and information technology environments. Its platform helps organizations collect, correlate and analyze data from servers, databases, applications, containers, networks and cloud services in a unified environment.

The company's products include infrastructure monitoring, application performance monitoring, log management, real user and synthetic monitoring, database monitoring, cloud security, software delivery tools, incident management and cloud cost management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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9.9.2026 22:17

Index Dow Jones -0,77 % na 52381,08 b. S&P 500 -0,48 % na 7636,49 b. Nasdaq Composite -0,64 % na 26253,34 b.

Ve středeční seanci americké indexy zamířily jižním směrem a index Dow Jones si odepsal -0,77% a širší index S&P 500 uzavřel také korekcí o -0,48%. Investory  a celý svět tak nyní trápí nárůst cen ropy, který oživil obavy, že vyšší náklady na energie by mohly udržet inflaci na vysoké úrovni a přesvědčit centrální banky k zpřísnění politiky. Lehká ropa WTI podpořena eskalujícím konfliktem mezi USA a Iránem posílila o 3,7% a dostala se k úrovni 96,5 USD/barel a to i s podporou mírně oslabujícího dolaru na páru s eurem, který korigoval o -0,07% tj. 1,1630 USD/EUR. Celkem slušně se během seance dařilo žlutému kovu, který sahal k 0,8%, ale nakonec zlato zisky korigovalo a žlutý kov si zapsal 0,15% tj. k úrovni 4 446 USD/Troy. unci. Na celkovém poklesu indexu měl dnes největší zásluhu sektor Průmysl se ztrátou -1,5%, dále Zbytná spotřeba -1,4% a také Utility s -1,2%. Většímu poklesu indexu byl dnes největší brzdou sektor Energie se ziskem 1,1%. 

Index S&P 500 -0,48 % na 7636,49 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,1 % Průmysl -1,5 % Informační technologie -0,2 % Zbytná spotřeba -1,4 % Komunikační služby -0,2 % Utility -1,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Datadog (DDOG) +7,2 % Casey's General Stores (CASY) -14 % Meta Platforms (META) +6,6 % Vertiv Holdings (VRT) -9,6 % Fair Isaac Corp (FICO) +5,4 % Charter Communications (CHTR) -8,1 % Hewlett Packard Enterprise (HPE) +5,1 % Comcast Corp (CMCSA) -6,6 % HCA Healthcare (HCA) +4,9 % Cooper Cos (COO) -6,2 %
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Datadog, Inc. (DDOG) Presents at Citi's 2026 Global TMT Conference Transcript

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Stock to Watch: Datadog (DDOG - Free Report) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company's business runs around its portfolio of more than 1,000 out-of-the-box integrations including public cloud, private cloud, on-premise hardware, databases and third-party software.

DDOG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. DDOG has a Growth Style Score of A, forecasting year-over-year earnings growth of 22.9% for the current fiscal year.

12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.11 to $2.52 per share. DDOG also boasts an average earnings surprise of +15.4%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, DDOG should be on investors' short list.

Datadog Inc (NASDAQ:DDOG) shares are rising in Wednesday’s after-hours session following strong earnings from Snowflake Inc (NYSE:SNOW).

Datadog stock is moving higher. Why are DDOG shares rallying? Snowflake’s Strong Results Drive AI Data Cloud OptimismSnowflake on Wednesday reported a double beat for the second quarter, reporting revenue of $1.55 billion versus estimates of $1.48 billion and adjusted earnings per share of 62 cents versus estimates of 45 cents.

The company is benefiting from the enterprise AI revolution with product revenue up 37% year-over-year and remaining performance obligations of $9 billion, up 30% year-over-year.

“AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said.

Snowflake stock soared more than 22% following the report, pulling Datadog up with it. Datadog offers an AI-powered observability and security platform, and often moves in sympathy with Snowflake.

Datadog reported its own second-quarter results last month, beating estimates on the top and bottom lines as AI drove strong demand. The company also raised its full-year guidance on the back of continued AI momentum.

Datadog Shares Pop After HoursDDOG Price Action: Datadog stock was up 4.80% in extended trading Wednesday, trading at $219.27 at the time of publication, according to Benzinga Pro.

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