Datadog, Inc. (NASDAQ:DDOG) is one of the stocks drowned heavily. Are you holding any?
Datadog fell by 11.4 percent week-on-week as investors unloaded portfolios following a brokerage firm’s “sell” recommendation on its stock.
In a market note last week, Guggenheim Securities downgraded Datadog, Inc. to “sell” from “neutral” over fears that its revenues could erode if its largest customer, OpenAI, moves workloads in-house.
The brokerage firm underscored OpenAI’s ongoing development of its own log management and metric tool, a shift that could dent Datadog, Inc.’s billings in the second half of the year.
Analysts estimate OpenAI to account for around 60 percent of Datadog’s AI-native customers, and slash as much as $150 million in revenue hole by 2026.
A close-up of a laptop with a software engineer coding on the monitor.
For the fourth quarter of the year, Guggenheim Securities expects Datadog, Inc. to record a 17-percent growth in revenues, much slower than the 24.6-percent gain in the current quarter.
Additionally, the brokerage firm expects revenues to grow at a slower pace of 15 percent.
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This article is originally published at Insider Monkey.
