Datadog, Inc. (NASDAQ:DDOG – Get Free Report) fell 4.2% on Wednesday . The stock traded as low as $212.88 and last traded at $214.4620. 773,259 shares were traded during trading, a decline of 86% from the average session volume of 5,486,618 shares. The stock had previously closed at $223.84.
Datadog News Roundup
Here are the key news stories impacting Datadog this week:
- Positive Sentiment: Snowflake earnings lifted cloud-software sentiment. Snowflake’s better-than-expected results and outlook encouraged investors to expect continued spending on data infrastructure, observability and AI tools—areas that could benefit Datadog. Datadog Stock Climbs Following Snowflake Earnings
- Positive Sentiment: Growth-stock characteristics remain supportive. Zacks highlighted Datadog’s AI momentum, customer expansion and raised guidance as reasons to maintain a constructive view. The company’s latest quarter showed revenue growth of 35.6% year over year, with earnings and revenue exceeding consensus estimates. Reasons to Hold Datadog Stock
- Neutral Sentiment: Analyst-style growth commentary is supportive but not a new company catalyst. A separate Zacks article rated Datadog favorably as a growth stock, though investors must weigh that view against the shares’ elevated valuation, including a very high price-to-earnings ratio. Why Datadog Is a Strong Growth Stock
- Negative Sentiment: CTO insider selling creates a modest overhang. Chief Technology Officer Alexis Le-Quoc sold 53,912 shares for approximately $12.2 million, reducing his direct ownership by 9.56%. Because the transaction was conducted under a pre-arranged Rule 10b5-1 plan, it is less clearly a discretionary signal about Datadog’s outlook. SEC Insider Trading Filing
- Negative Sentiment: Valuation and recent volatility remain risks. Datadog had fallen substantially over the prior month amid a software-sector selloff, and its premium valuation makes the stock sensitive to changes in growth expectations and interest rates. Datadog Recent Selloff Analysis
Analyst Ratings Changes
Several research analysts have recently commented on DDOG shares. The Goldman Sachs Group reissued a “sell” rating and issued a $158.00 target price on shares of Datadog in a report on Friday, August 7th. Piper Sandler reaffirmed an “overweight” rating and set a $275.00 price target (up from $230.00) on shares of Datadog in a report on Wednesday, June 10th. Wedbush started coverage on Datadog in a research report on Monday, June 15th. They issued a “neutral” rating for the company. Daiwa Securities Group boosted their price objective on Datadog from $190.00 to $240.00 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. Finally, KeyCorp increased their target price on Datadog from $225.00 to $320.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $276.32.
Datadog Trading Up 2.6%
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 $77.12 billion, a P/E ratio of 438.29, a P/E/G ratio of 20.49 and a beta of 1.49. The business has a 50-day moving average price of $250.18 and a two-hundred day moving average price of $193.14.
Datadog (NASDAQ:DDOG – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.65 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 firm had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.08 billion. During the same period last year, the company earned $0.46 earnings per share. The company’s 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. On average, analysts predict that Datadog, Inc. will post 0.7 EPS for the current year.
Insider Buying and Selling at Datadog
In related news, CEO Olivier Pomel sold 47,054 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $235.49, for a total value of $11,080,746.46. Following the transaction, the chief executive officer directly owned 612,747 shares in the company, valued at $144,295,791.03. This represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of Datadog stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $249.32, for a total transaction of $4,986,400.00. Following the sale, the director directly owned 1,640 shares of the company’s stock, valued at $408,884.80. This represents a 92.42% decrease in their position. 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 sold a total of 1,206,167 shares of company stock valued at $295,252,217 over the last 90 days. Company insiders own 6.48% of the company’s stock.
Hedge Funds Weigh In On Datadog
Institutional investors have recently modified their holdings of the stock. Brighton Jones LLC acquired a new stake in shares of Datadog in the 4th quarter valued at approximately $209,000. Bison Wealth LLC bought a new stake in Datadog in the fourth quarter valued at approximately $228,000. Empowered Funds LLC increased its stake in Datadog by 7.0% in the first quarter. Empowered Funds LLC now owns 10,313 shares of the company’s stock valued at $1,023,000 after purchasing an additional 672 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in Datadog by 17.6% in the first quarter. Geneos Wealth Management Inc. now owns 769 shares of the company’s stock worth $76,000 after purchasing an additional 115 shares during the period. Finally, Sivia Capital Partners LLC bought a new position in shares of Datadog during the second quarter worth $509,000. 78.29% of the stock is currently owned by institutional investors and hedge funds.
Datadog Company Profile
Datadog (NASDAQ: DDOG) is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog’s platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.
The company’s product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.
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