Datadog Shares Rise 4.24% After Bernstein Upgrade and Target Increase
Datadog shares rose 4.24% to $257.59 Monday. Bernstein upgraded the stock to Outperform from Market Perform and raised its price forecast to $350 from $237, citing growth opportunities tied to AI.
Datadog Inc. (NASDAQ: DDOG) shares climbed more than 4% Monday after Bernstein upgraded the cloud monitoring company, pointing to stronger growth opportunities related to artificial intelligence. A broader technology rally also supported the stock. The Nasdaq advanced 1.50%, and the S&P 500 gained 0.67%.
Bernstein analyst Peter Weed raised Datadog to Outperform from Market Perform and increased his price forecast to $350 from $237. Datadog has gained 66.60% over the past 12 months and remains above several long-term moving averages. The shares trade above the 50-day simple moving average (SMA) at $247.63, the 100-day SMA at $248.35 and the 200-day SMA at $192.24. They remain below the 20-day SMA at $269.78, pointing to weaker near-term momentum.
The relative strength index (RSI) is 49.61, consistent with neutral momentum and no clear advantage for buyers or sellers. A golden cross formed in May, when the 50-day SMA moved above the 200-day SMA, supporting the longer-term trend. Traders are watching resistance near $300.50. The stock is near its 52-week high of $300.68, while $237.50 remains a key support level.
Investors are awaiting Datadog’s next earnings report, scheduled for Nov. 4. Analysts forecast earnings of 65 cents per share, versus 55 cents a year earlier. Revenue is expected to reach $1.14 billion, compared with approximately $890 million in the year-ago period.
Datadog has a price-to-earnings ratio of 494.2, indicating a substantial valuation premium. The stock could be vulnerable if earnings or guidance fall short of expectations. Analysts have a consensus Buy rating and an average price forecast of $298.34. Recent analyst moves include Bernstein’s upgrade to Outperform and $350 price forecast on Oct.
19. Mizuho raised its forecast to $330 on Oct. 15, retaining an Outperform rating. Barclays raised its forecast to $300 on Oct.
13 and maintained an Overweight rating. Datadog shares rose 4.24% to $257.59 at the time of publication Monday, according to Pro data. He admitted that he neglected bank supervision during his first 148 days.