Sanford C. Bernstein Has Lowered Expectations for Datadog (NASDAQ:DDOG) Stock Price

Key Points

• Sanford C. Bernstein cut its price target on Datadog to $167 from $180 while keeping an "outperform" rating, a target that implies about a 31% upside from the current price.
• Analyst coverage is mixed but broadly favorable—39 Buys, 3 Holds and 2 Sells—with an average price target of $177.20, equating to a "Moderate Buy" consensus.
• Datadog recently beat EPS and revenue estimates with revenue up 29.2% year‑over‑year, yet the stock traded down to $127.21 amid high valuation metrics (P/E ~410) and notable insider selling that could pressure sentiment.

Datadog (NASDAQ:DDOG - Get Free Report) had its price target dropped by analysts at Sanford C. Bernstein from $180.00 to $167.00 in a note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has an "outperform" rating on the stock. Sanford C. Bernstein's price target points to a potential upside of 31.28% from the company's current price.

Several other equities analysts have also recently weighed in on DDOG. Citizens Jmp reiterated a "market perform" rating on shares of Datadog in a research report on Wednesday, February 11th. BMO Capital Markets set a $165.00 target price on Datadog in a report on Wednesday, February 11th. Wolfe Research decreased their target price on Datadog from $185.00 to $160.00 and set an "outperform" rating for the company in a research report on Tuesday, February 10th. Stifel Nicolaus set a $160.00 price target on Datadog and gave the company a "buy" rating in a report on Thursday, January 22nd. Finally, Rosenblatt Securities reissued a "buy" rating and set a $185.00 price target on shares of Datadog in a research report on Wednesday, February 11th. Thirty-nine analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $177.20.

Datadog Trading Down 3.7%

DDOG traded down $4.93 during trading on Wednesday, reaching $127.21. The company had a trading volume of 1,358,600 shares, compared to its average volume of 5,596,181. The firm's 50-day simple moving average is $120.37 and its 200 day simple moving average is $138.27. The company has a debt-to-equity ratio of 0.26, a quick ratio of 3.38 and a current ratio of 3.38. The company has a market cap of $44.85 billion, a price-to-earnings ratio of 410.22, a PEG ratio of 35.54 and a beta of 1.29. Datadog has a 12-month low of $94.90 and a 12-month high of $201.69.

Datadog (NASDAQ:DDOG - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.59 EPS for the quarter, beating analysts' consensus estimates of $0.55 by $0.04. The company had revenue of $953.19 million during the quarter, compared to analyst estimates of $916.53 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The business's quarterly revenue was up 29.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.49 earnings per share. Datadog has set its FY 2026 guidance at 2.080-2.160 EPS and its Q1 2026 guidance at 0.490-0.510 EPS. Equities research analysts anticipate that Datadog will post 0.32 earnings per share for the current year.

Insider Transactions at Datadog

In related news, CEO Olivier Pomel sold 68,922 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $110.54, for a total transaction of $7,618,637.88. Following the completion of the sale, the chief executive officer directly owned 704,821 shares in the company, valued at approximately $77,910,913.34. This trade represents a 8.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Alexis Le-Quoc sold 53,912 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $125.49, for a total value of $6,765,416.88. Following the completion of the transaction, the chief technology officer owned 437,257 shares in the company, valued at $54,871,380.93. This trade represents a 10.98% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 543,833 shares of company stock valued at $66,100,680. 6.67% of the stock is owned by insiders.

Hedge Funds Weigh In On Datadog

A number of hedge funds have recently added to or reduced their stakes in DDOG. PKO Investment Management Joint Stock Co bought a new position in shares of Datadog in the 3rd quarter valued at approximately $1,709,000. Hartford Investment Management Co. bought a new stake in Datadog during the third quarter worth approximately $2,689,000. IQ EQ FUND MANAGEMENT IRELAND Ltd grew its holdings in Datadog by 134.5% during the third quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 31,142 shares of the company's stock valued at $4,435,000 after purchasing an additional 17,860 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Datadog by 30.3% in the third quarter. Vanguard Group Inc. now owns 41,902,227 shares of the company's stock valued at $5,966,877,000 after purchasing an additional 9,748,738 shares during the period. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its position in shares of Datadog by 37.9% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 109,233 shares of the company's stock valued at $15,555,000 after purchasing an additional 30,008 shares during the period. Institutional investors and hedge funds own 78.29% of the company's stock.

Key Datadog News

Here are the key news stories impacting Datadog this week:

• Positive Sentiment: Datadog launched GPU Monitoring to help customers plan capacity, troubleshoot GPU issues and control cloud GPU spend — a direct product aimed at the growing AI infrastructure market that could expand observability revenue as companies scale AI. Datadog Announces GPU Monitoring
• Positive Sentiment: Datadog’s State of AI Engineering 2026 report says operational complexity and capacity—not model quality—are the main barriers to scaling AI, reinforcing demand for observability and cost-control tools that Datadog sells. AI Is Hitting Operational Limits
• Positive Sentiment: Oppenheimer reiterated that Datadog is well positioned for sustained growth and estimated modest upside to consensus Q1 revenue — a near‑term analyst endorsement that supports the growth narrative. Oppenheimer Note on Datadog
• Neutral Sentiment: Several market pieces note DDOG is a trending name and that it “lapped the market” recently; useful context but not a direct new catalyst. Datadog Laps the Stock Market
• Neutral Sentiment: Analyst coverage remains mixed overall, reflecting divergent views on growth vs. margin recovery; this produces noisy day‑to‑day trading but no consensus directional change. Mixed Analyst Opinions
• Negative Sentiment: A Datadog director, Amit Agarwal, sold 20,000 shares under a pre-arranged Rule 10b5-1 plan (avg. ~$126), cutting his stake substantially — an insider sale that can sap sentiment even if pre‑planned and routine. Amit Agarwal Insider Sale
• Negative Sentiment: Barclays trimmed its DDOG price target to $148 and CIBC cut its target to $215; these downgrades/target reductions can weigh on near‑term investor sentiment and headline volatility. Barclays Lowers Price Target CIBC Lowers Price Target

About Datadog

Datadog NASDAQ: DDOG is a cloud-based monitoring and observability platform that helps organizations monitor, troubleshoot and secure their applications and infrastructure at scale. Its software-as-a-service offering collects and analyzes metrics, traces and logs from servers, containers, cloud services and applications to provide real-time visibility into system performance and health. Datadog's platform is widely used by engineering, operations and security teams to reduce downtime, accelerate incident response and improve application reliability.

The company's product suite includes infrastructure monitoring, application performance monitoring (APM), log management, real user monitoring (RUM), synthetic monitoring and network performance monitoring, along with security-focused products such as security monitoring and cloud SIEM.

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