Wedbush Issues Negative Estimate for Datadog Earnings

Datadog, Inc. (NASDAQ:DDOG - Free Report) - Analysts at Wedbush lowered their Q2 2025 EPS estimates for Datadog in a note issued to investors on Wednesday, May 7th. Wedbush analyst D. Ives now anticipates that the company will post earnings per share of $0.04 for the quarter, down from their prior estimate of $0.07. Wedbush currently has a "Outperform" rating and a $140.00 target price on the stock. The consensus estimate for Datadog's current full-year earnings is $0.34 per share. Wedbush also issued estimates for Datadog's Q3 2025 earnings at $0.03 EPS, Q4 2025 earnings at $0.02 EPS, FY2025 earnings at $0.21 EPS, Q1 2026 earnings at $0.01 EPS, Q2 2026 earnings at $0.04 EPS, Q3 2026 earnings at $0.06 EPS, Q4 2026 earnings at $0.11 EPS and FY2026 earnings at $0.24 EPS.

Datadog (NASDAQ:DDOG - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.04. The business had revenue of $761.55 million for the quarter, compared to the consensus estimate of $741.73 million. Datadog had a return on equity of 8.28% and a net margin of 6.85%. The business's revenue was up 24.6% on a year-over-year basis. During the same quarter last year, the business posted $0.44 EPS.

DDOG has been the subject of several other research reports. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $134.00 target price on shares of Datadog in a research note on Wednesday, May 7th. UBS Group lifted their price objective on shares of Datadog from $120.00 to $125.00 and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Truist Financial cut their target price on shares of Datadog from $140.00 to $120.00 and set a "hold" rating for the company in a research note on Monday, March 31st. Scotiabank set a $130.00 price target on Datadog and gave the company an "outperform" rating in a report on Wednesday, May 7th. Finally, Stifel Nicolaus set a $120.00 target price on Datadog in a report on Tuesday, May 6th. Seven equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. Based on data from MarketBeat.com, Datadog currently has a consensus rating of "Moderate Buy" and an average target price of $141.54.

Datadog Stock Up 3.4%

Datadog stock traded up $3.89 during trading hours on Monday, hitting $117.31. 6,363,446 shares of the company traded hands, compared to its average volume of 4,345,929. The firm's 50-day simple moving average is $100.17 and its two-hundred day simple moving average is $125.76. The firm has a market cap of $40.21 billion, a P/E ratio of 230.02, a P/E/G ratio of 44.03 and a beta of 1.12. Datadog has a 1-year low of $81.63 and a 1-year high of $170.08.

Institutional Trading of Datadog

Several large investors have recently made changes to their positions in DDOG. Algert Global LLC acquired a new position in shares of Datadog during the first quarter valued at $230,000. CacheTech Inc. boosted its holdings in Datadog by 37.6% during the first quarter. CacheTech Inc. now owns 28,505 shares of the company's stock worth $2,828,000 after buying an additional 7,782 shares during the last quarter. Cresset Asset Management LLC increased its stake in Datadog by 17.4% in the first quarter. Cresset Asset Management LLC now owns 26,060 shares of the company's stock valued at $2,585,000 after purchasing an additional 3,862 shares in the last quarter. Ethic Inc. grew its holdings in shares of Datadog by 10.7% in the 1st quarter. Ethic Inc. now owns 18,039 shares of the company's stock valued at $1,823,000 after buying an additional 1,750 shares during the period. Finally, Aberdeen Group plc increased its position in shares of Datadog by 163.7% in the 1st quarter. Aberdeen Group plc now owns 134,550 shares of the company's stock valued at $13,349,000 after buying an additional 83,517 shares in the last quarter. Institutional investors own 78.29% of the company's stock.

Insider Activity

In other Datadog news, CRO Sean Michael Walters sold 8,454 shares of the stock in a transaction on Tuesday, March 11th. The stock was sold at an average price of $102.04, for a total transaction of $862,646.16. Following the completion of the transaction, the executive now directly owns 185,871 shares in the company, valued at $18,966,276.84. This represents a 4.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Olivier Pomel sold 107,365 shares of the company's stock in a transaction dated Friday, March 7th. The stock was sold at an average price of $109.56, for a total transaction of $11,762,909.40. Following the sale, the chief executive officer now directly owns 435,793 shares in the company, valued at $47,745,481.08. This represents a 19.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 559,867 shares of company stock worth $57,550,902. 11.78% of the stock is currently owned by corporate insiders.

About Datadog

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.