Datadog (NASDAQ:DDOG) Stock Jumps 4.7% – Time to Buy?

Posted by Brenda Bartman on Oct 21st, 2026

Datadog, Inc. (NASDAQ:DDOG – Get Free Report)’s stock price rose 4.7% during mid-day trading on Monday. The stock traded as high as $264.87 and last traded at $258.7950. 405,476 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 5,129,035 shares. The stock had previously closed at $247.11.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

Positive Sentiment: Bernstein upgraded Datadog to Outperform and raised its price target to $350 from $237. The firm cited accelerating AI workloads, stronger demand for cloud monitoring and improving growth prospects, helping drive renewed investor interest. Bernstein Upgrades Datadog to Outperform, Price Target is $350
Positive Sentiment: Broader technology-sector sentiment improved as Treasury yields eased and investors bought the dip in enterprise software stocks. Datadog was among the stronger movers during the initial rebound. Datadog Stock Is Up, What You Need To Know
Positive Sentiment: Datadog’s latest quarterly results exceeded expectations, with revenue rising 35.6% year over year to $1.12 billion and adjusted EPS of $0.65 versus the $0.58 consensus estimate. The company also guided to third-quarter EPS of $0.63–$0.65 and full-year EPS of $2.50–$2.54.
Neutral Sentiment: Datadog is scheduled to report third-quarter results on November 4. Investors will focus on whether AI-related workloads are translating into accelerating customer growth, higher usage and stronger forward guidance. Datadog Reports Q3 on November 4 After Bernstein’s Upgrade
Negative Sentiment: Valuation is the principal risk. Datadog has gained roughly 98% over six months and trades at a very high earnings multiple, leaving the stock vulnerable to profit-taking if upcoming results or guidance do not exceed elevated expectations. Datadog’s Expectations Have Outrun Its Earnings
Negative Sentiment: Despite the favorable upgrade and strong recent rally, Datadog’s shares decreased in the latest session, suggesting investors may be locking in gains or waiting for clearer evidence that earnings growth can justify the stock’s premium valuation. Datadog Stock Falls Amid Market Uptick

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. Royal Bank Of Canada lifted their target price on Datadog from $280.00 to $320.00 and gave the stock an “outperform” rating in a report on Monday, October 12th. UBS Group decreased their price target on Datadog from $315.00 to $280.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Rosenblatt Securities raised their price target on Datadog from $220.00 to $305.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Needham & Company LLC lifted their price objective on shares of Datadog from $260.00 to $300.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Finally, Scotiabank lifted their price objective on shares of Datadog from $275.00 to $285.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $285.04.

Get Our Latest Analysis on DDOG

Datadog Stock Down 1.5%

The company has a 50-day simple moving average of $246.86 and a 200-day simple moving average of $223.97. The firm has a market cap of $92.08 billion, a PE ratio of 523.34, a price-to-earnings-growth ratio of 25.41 and a beta of 1.51. The company has a debt-to-equity ratio of 0.23, a current ratio of 3.20 and a quick ratio of 3.20.

Datadog (NASDAQ:DDOG – Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.65 EPS for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the prior year, the firm posted $0.46 earnings per share. 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. Analysts expect that Datadog, Inc. will post 0.70 earnings per share for the current fiscal year.

Insider Activity at Datadog

In other Datadog news, CFO David Obstler sold 40,000 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $227.47, for a total value of $9,098,800.00. Following the transaction, the chief financial officer owned 378,067 shares of the company’s stock, valued at $85,998,900.49. This represents a 9.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Olivier Pomel sold 127,141 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $286.71, for a total value of $36,452,596.11. Following the completion of the sale, the chief executive officer owned 612,747 shares in the company, valued at approximately $175,680,692.37. The trade was a 17.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 948,764 shares of company stock worth $229,976,494 in the last quarter. 6.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Cornerstone Financial Management LLC increased its holdings in Datadog by 54.9% during the second quarter. Cornerstone Financial Management LLC now owns 127 shares of the company’s stock valued at $33,000 after buying an additional 45 shares during the period. State of Wyoming raised its stake in Datadog by 4.1% in the first quarter. State of Wyoming now owns 1,946 shares of the company’s stock worth $230,000 after buying an additional 76 shares in the last quarter. Roberts Wealth Advisors LLC raised its stake in Datadog by 0.6% in the third quarter. Roberts Wealth Advisors LLC now owns 15,720 shares of the company’s stock worth $4,305,000 after buying an additional 91 shares in the last quarter. Ancora Advisors LLC raised its stake in Datadog by 44.1% in the second quarter. Ancora Advisors LLC now owns 307 shares of the company’s stock worth $80,000 after buying an additional 94 shares in the last quarter. Finally, Quadcap Wealth Management LLC lifted its holdings in Datadog by 5.5% during the first quarter. Quadcap Wealth Management LLC now owns 1,970 shares of the company’s stock worth $233,000 after buying an additional 102 shares during the period. 78.29% of the stock is currently owned by institutional investors.

Datadog Company Profile

(Get 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.