Datadog (DDOG) Set to Cross $3.5B ARR, Says Needham Analyst

Datadog, Inc. (NASDAQ:DDOG) is one of the AI Stocks On Wall Street’s Radar. On August 14, Needham analyst Jack Andrews reiterated a Buy rating on the stock with a $175.00 price target.

The firm anticipates Datadog’s Annual Recurring Revenue (ARR) to exceed $3.5 billion for the first time next quarter, “with growth in the Mid-/High-20%’s range.”

Three significant growth drivers continue to work for the company, which are Infrastructure Monitoring, APM Suite & Log Management.

“The company’s 3 core pillars, consisting of Infrastructure Monitoring, APM Suite & Log Management, continue to be more significant drivers of growth – collectively representing ~90% of Total ARR. But we highlight the importance of (1) Security Suite achieving $100 Million in ARR with mid-40%’s growth in 2QCY25; and (2) point investors to monitor new products such as Flex Logs (which we believe is growing materially above 100% yr-yr and likely to become Datadog’s 6th product to achieve the $100 Million ARR milestone following Synthetics and RUM), Database Monitoring, and Cloud Cost Management. We remain Buy-rated.”

Datadog (DDOG) Set to Cross $3.5B ARR, Says Needham Analyst

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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