Datadog’s (DDOG) AI Positioning in Focus as RBC Maintains Outperform Rating

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Analysts Are Watching. On February 9, RBC Capital analyst Matthew Hedberg lowered the price target on the stock to $150.00 (from $175.00) while maintaining an “Outperform” rating. While the firm is cautious on the stock due to peer-multiple compression, upcoming earnings and analyst day will provide a key AI strategy update.

“Thinking through Datadog’s earnings report and analyst day; Next week will be busy for Datadog with earnings on 2/10 and an analyst day on 2/12.”

According to analyst Matthew Hedberg, DDOG is likely to report robust Q4 results but likely a conservative revenue and margin guidance that may weigh on shares “but act as a clearing event.”

Following earnings, Hedberg believes that DDOG’s analyst day will likely be focused on DDOG’s positioning in an agentic/AI world, evolving competitive environment, security, GTM strategy, and margin commentary.

However, the firm doesn’t expect DDOG to provide any long-term financial targets during the analyst event.

“Maintain OP rating and reduce PT to $150 from $175 on peer-multiple compression.”

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

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