Datadog (DDOG) Joins S&P 500 — TD Cowen Reiterates Buy Rating

Datadog, Inc. (NASDAQ:DDOG) is one of the Top 10 AI Stocks in the SpotlightOn July 3, TD Cowen analyst Andrew Sherman reiterated a “Buy” rating on the stock with a $150.00 price target.

The rating affirmation follows Datadog’s inclusion in the S&P 500. The cloud monitoring company will be replacing Juniper Networks, which has been acquired by Hewlett Packard Enterprise (NYSE:HPE).

The firm anticipates strong demand for Datadog’s shares, considering its market capitalization of more than $50 billion. The firm believes that the S&P 500 inclusion is expected to bring “a broader audience of large cap & generalist investors to the name.”

Datadog (DDOG) Joins S&P 500 — TD Cowen Reiterates Buy Rating

A high-rise city building with a computer-generated chart reflecting the stock market index on its glass façade.

“Index inclusion is a powerful force given the trillions of assets indexed to the S&P 500. We have seen this benefit many of the other software stocks in recent years as many large-cap managers have to take a look and make a decision for the first time, and we expect this to happen here as well.”

-TD Cowen analyst Andrew Sherman said in a note to clients.

Datadog was part of a “select group of large-cap, high-growth, high-margin (and profitable on a GAAP basis) software companies.”

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

While we acknowledge the risk and potential of DDOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DDOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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