Datadog (DDOG) Sees AI Deal Momentum as DA Davidson Reiterates Buy Rating

Datadog’s leadership position is seen to be strengthening as analyst firms point to accelerating growth and AI-driven deal momentum post earnings. This has earned it a place on our list of 12 AI Stocks Wall Street Is Watching Now.

On May 8, DA Davidson analyst Gil Luria reiterated a Buy rating on the stock with a $125.00 price target.

Starting with a strong start to 2025, Datadog has had experienced consistent growth as AI native customers drove consistent usage in the quarter. This growth outlook has been improving with the company continuing to invest heavily in product investments where it sees traction.

That said, the firm sees its view unchanged after results. Quarterly revenue for the company topped $1 billion dollars for the first time, along with new contract wins with two major hyperscaler customers for training in their superintelligence labs.

We continue to highlight DDOG as a top pick. We reiterate our BUY rating and price target of $125.

Datadog (DDOG) Sees AI Deal Momentum as DA Davidson Reiterates 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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