Cantor Fitzgerald Has Lowered Expectations for Datadog (NASDAQ:DDOG) Stock Price

Key Points

• Cantor Fitzgerald cut its Datadog price target to $260 from $327 but maintained an “overweight” rating, implying 37.77% upside from the prior close.
• Datadog beat Q3 estimates, reporting revenue of $1.20 billion, up 35.2% year over year, and EPS of $0.81 versus $0.64 expected.
• Despite the quarterly beat, shares fell 14.4%; investors were concerned about slower near-term growth, including roughly flat Q4 revenue guidance and reduced usage by a major AI customer.

Datadog (NASDAQ:DDOG - Get Free Report) had its target price dropped by stock analysts at Cantor Fitzgerald from $327.00 to $260.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Cantor Fitzgerald's target price points to a potential upside of 37.77% from the stock's previous close.

A number of other brokerages have also recently commented on DDOG. Robert W. Baird set a $300.00 target price on Datadog in a report on Friday, August 7th. Guggenheim reiterated a "buy" rating on shares of Datadog in a research note on Wednesday. Royal Bank Of Canada increased their target price on shares of Datadog from $280.00 to $320.00 and gave the stock an "outperform" rating in a report on Monday, October 12th. FBN Securities initiated coverage on shares of Datadog in a research note on Friday, October 2nd. They set an "outperform" rating and a $325.00 target price on the stock. Finally, Weiss Ratings upgraded shares of Datadog from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $283.07.

Datadog Trading Down 14.4%

Datadog stock opened at $188.72 on Thursday. Datadog has a 12 month low of $98.01 and a 12 month high of $300.68. The company has a market capitalization of $67.77 billion, a price-to-earnings ratio of 361.51, a price-to-earnings-growth ratio of 21.50 and a beta of 1.50. The business's fifty day simple moving average is $250.09 and its two-hundred day simple moving average is $199.43. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.23.

Datadog (NASDAQ:DDOG - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.64 by $0.17. Datadog had a return on equity of 5.67% and a net margin of 4.48%. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same period last year, the company earned $0.55 EPS. Datadog's revenue for the quarter was up 35.2% on a year-over-year basis. As a group, equities analysts predict that Datadog will post 0.70 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CRO Sean Walters sold 11,710 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $221.04, for a total value of $2,588,378.40. Following the transaction, the executive owned 233,135 shares of the company's stock, valued at $51,532,160.40. This represents a 4.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Obstler sold 10,000 shares of the firm's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $241.25, for a total value of $2,412,500.00. Following the transaction, the chief financial officer owned 368,067 shares in the company, valued at approximately $88,796,163.75. This represents a 2.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 745,293 shares of company stock worth $175,536,548 over the last 90 days. Corporate insiders own 6.48% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. New York Life Investment Management LLC boosted its stake in shares of Datadog by 10.7% in the 3rd quarter. New York Life Investment Management LLC now owns 56,217 shares of the company's stock valued at $15,395,000 after purchasing an additional 5,450 shares in the last quarter. 71 West Capital Partners lifted its stake in Datadog by 0.9% in the third quarter. 71 West Capital Partners now owns 88,240 shares of the company's stock worth $24,165,000 after purchasing an additional 806 shares during the last quarter. Gryphon Financial Partners LLC lifted its stake in Datadog by 15.2% in the third quarter. Gryphon Financial Partners LLC now owns 1,026 shares of the company's stock worth $281,000 after purchasing an additional 135 shares during the last quarter. Kestra Investment Management LLC boosted its position in Datadog by 29.5% during the third quarter. Kestra Investment Management LLC now owns 1,132 shares of the company's stock valued at $310,000 after buying an additional 258 shares during the period. Finally, AlphaCore Capital LLC boosted its position in Datadog by 57.9% during the third quarter. AlphaCore Capital LLC now owns 2,279 shares of the company's stock valued at $624,000 after buying an additional 836 shares during the period. 78.29% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Datadog

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog reported Q3 revenue of $1.20 billion, up 35.2% year over year and above estimates, while non-GAAP EPS of $0.81 also topped expectations of $0.64. The company raised its full-year outlook again. Datadog Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Customer and product indicators were strong: Datadog had about 4,860 customers generating at least $100,000 in annual recurring revenue, up from about 4,060 a year earlier. Infrastructure monitoring ARR surpassed $2 billion, and the company launched its Scout 1.0 model. Datadog: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst views were mixed: BTIG lowered its price target to $260 but kept a Buy rating, while Needham reiterated Buy with a $300 target. BTIG Research ratings
• Negative Sentiment: The near-term outlook disappointed investors. Q4 revenue guidance is around $1.20 billion—roughly flat from Q3—implying a slowdown from the latest 35% growth rate. Management also said reduced usage by a major AI customer weighed on growth. Datadog Q3 2026 Earnings Call Highlights Datadog Says Lower Usage From Major AI Customer Is Weighing on Growth
• Negative Sentiment: The selloff also reflects concerns about moderating sequential growth and Datadog’s premium valuation, leaving investors less focused on the quarterly beat. Datadog: Fears Surrounding Largest Customer Return In Full Force

About Datadog

Datadog, Inc is a technology company that provides a cloud-based monitoring and security platform for applications, infrastructure and other technology environments. Its platform helps organizations collect, analyze and visualize data from servers, databases, containers, cloud services, applications and user interactions in a unified environment.

Datadog's products include infrastructure monitoring, application performance monitoring, log management, real user monitoring, synthetic monitoring, network performance monitoring, cloud security, software delivery tools and incident-management capabilities.

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