Datadog (DDOG) Seen as Software Top Pick as AI Momentum Builds

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Gaining Attention on Wall StreetOn February 2, DA Davidson analyst Gil Luria reiterated a Buy rating on the stock with a $225.00 price target. The firm calls DDOG a Top Pick in Software and a clear AI winner with long runway for higher growth.

DA Davidson highlighted that DDOG is a top pick in software, but it doesn’t anticipate it to guide aggressively right now, similar to other software names. In an investor note, it said that it does anticipate another quarter of momentum with AI Natives for DataDog, possibly driving an outsized earnings beat and sustain strong growth through the remainder of the year.

However, the firm believes that management is unlikely to break from its pattern and will try to match the current consensus instead of materially exceeding expectations. Despite the conservative guidance, DA Davidson believes DDOG is a clear AI winner whose AI-native momentum will drive strong growth.

“We continue to view Datadog as a high growth company with a long runway and clear AI winner. Reiterate BUY rating.”

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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Disclosure: None. This article is originally published at Insider Monkey.