10 AI Stocks in Focus on Wall Street

8. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 72

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks in Focus on Wall Street. On January 22, Stifel analyst Brad Reback upgraded the stock from Hold to Buy with a price target of $160.00 (from $205.00). The rating upgrade comes ahead Q4 2025 earnings report due on February 10, citing upside surprise potential and attractive long-term valuation.

According to the firm’s recent checks, DDOG is poised to post another larger than typical quarterly beat in Q4, an estimated 4% or more, driven by accelerating core growth, sustained strong gains within the non-OAI genAI cohort, and quarter-over-quarter stability in OpenAI performance.

The net result is we believe DDOG’s 4Q growth rate, excluding OAI, should be >23%. 

Looking ahead, Stifel anticipates management to guide calendar year 2026 revenue to an estimated $4.1 billion, implying conservative core growth above 19% excluding OpenAI.

The firm assumed OAI to remain at its current quarterly run rate of about $90 million through 2026, which leads to annual OAI revenue of $360 million compared to an estimated $305 million in 2025.

Stifel also discussed how DDOG has had recent success in S&M efforts and ongoing R&D investments, and that it would be surprised if management guided modestly below current Street expectations (~23%).

Net/net, with shares trading at ~8x CY27E EV/Rev and 30x CY27E EV/FCF, valuation appears relatively attractive for one of the few names we cover with accelerating core growth.

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.