Wedbush Issues Positive Forecast for Datadog (NASDAQ:DDOG) Stock Price

08 May 2026, 11:42 by Amy Steele · The Cerbat Gem

Datadog (NASDAQ:DDOG – Get Free Report) had its price target hoisted by Wedbush from $190.00 to $220.00 in a research note issued on Thursday, MarketBeat.com reports. The firm currently has an “outperform” rating on the stock. Wedbush’s price objective would indicate a potential upside of 12.64% from the stock’s previous close.

A number of other research analysts have also weighed in on the stock. Benchmark reissued a “buy” rating on shares of Datadog in a research report on Thursday. Evercore reaffirmed an “outperform” rating and set a $225.00 price objective on shares of Datadog in a research report on Thursday. Royal Bank Of Canada cut their price objective on shares of Datadog from $175.00 to $150.00 and set an “outperform” rating for the company in a research report on Monday, February 9th. Robert W. Baird set a $180.00 price objective on shares of Datadog in a research report on Wednesday, February 11th. Finally, Cantor Fitzgerald cut their price objective on shares of Datadog from $220.00 to $150.00 and set an “overweight” rating for the company in a research report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $206.51.

Read Our Latest Report on Datadog

Datadog Stock Performance

Datadog stock traded up $6.59 on Thursday, reaching $195.32. 2,691,904 shares of the stock were exchanged, compared to its average volume of 5,814,698. The stock has a market cap of $68.87 billion, a PE ratio of 623.40, a PEG ratio of 52.02 and a beta of 1.30. The company has a current ratio of 3.38, a quick ratio of 3.38 and a debt-to-equity ratio of 0.26. Datadog has a twelve month low of $98.01 and a twelve month high of $201.69. The firm has a fifty day moving average price of $124.41 and a two-hundred day moving average price of $136.98.

Datadog (NASDAQ:DDOG – Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.09. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $960.12 million. Datadog had a net margin of 3.14% and a return on equity of 4.14%. The business’s revenue was up 32.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.46 EPS. Datadog has set its FY 2026 guidance at 2.360-2.440 EPS and its Q2 2026 guidance at 0.570-0.590 EPS. Sell-side analysts anticipate that Datadog will post 0.32 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Alexis Le-Quoc sold 43,106 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $144.93, for a total value of $6,247,352.58. Following the sale, the chief technology officer owned 531,311 shares of the company’s stock, valued at $77,002,903.23. The trade was a 7.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amit Agarwal sold 20,000 shares of the company’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $131.47, for a total transaction of $2,629,400.00. Following the completion of the sale, the director directly owned 1,640 shares in the company, valued at approximately $215,610.80. The trade was a 92.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 654,018 shares of company stock valued at $80,903,197 over the last 90 days. Company insiders own 6.67% of the company’s stock.

Institutional Trading of Datadog

Large investors have recently added to or reduced their stakes in the company. Rothschild Investment LLC grew its stake in Datadog by 126.6% during the third quarter. Rothschild Investment LLC now owns 179 shares of the company’s stock worth $25,000 after buying an additional 100 shares during the last quarter. Physician Wealth Advisors Inc. grew its stake in Datadog by 315.2% during the third quarter. Physician Wealth Advisors Inc. now owns 191 shares of the company’s stock worth $27,000 after buying an additional 145 shares during the last quarter. Westside Investment Management Inc. grew its stake in Datadog by 74.3% during the third quarter. Westside Investment Management Inc. now owns 176 shares of the company’s stock worth $27,000 after buying an additional 75 shares during the last quarter. JPL Wealth Management LLC bought a new stake in Datadog during the third quarter worth about $27,000. Finally, Hazlett Burt & Watson Inc. bought a new stake in Datadog during the third quarter worth about $28,000. 78.29% of the stock is owned by institutional investors.

Key Headlines Impacting Datadog

Here are the key news stories impacting Datadog this week:

Positive Sentiment: Q1 beat and cash‑flow strength — Revenue ≈ $1.01B (+~32% YoY) and EPS $0.60 topped estimates; management reported strong operating and free cash flow and cited expansion in $100k+ ARR customers. Q1 2026 Results
Positive Sentiment: Guidance materially raised — Q2 EPS $0.57–$0.59 and FY‑2026 EPS $2.36–$2.44 well above consensus, the primary catalyst cited by traders and analysts. Guidance raise
Positive Sentiment: Analyst re‑ratings and price‑target lifts amplified flows — multiple firms (e.g., Wedbush, BTIG, Citizens JMP, Needham/Mizuho/Rosenblatt coverage) raised targets/ratings after the print, supporting momentum. Analyst reactions
Positive Sentiment: Product & GTM catalysts — new product rollouts (AI/security agents, GPU monitoring, MCP Server) and FedRAMP High certification open higher‑security federal deals. FedRAMP certification
Neutral Sentiment: Unusually large options and call buying (tens of thousands of calls) and elevated volume amplified the move — this can magnify intraday gains but also increase short‑term volatility. Options flow
Neutral Sentiment: Media and momentum trading are sustaining upside in the short term; watch upcoming commentary on bookings, renewal/expansion rates and AI/security inference revenue for confirmation.
Negative Sentiment: Insider selling via pre‑arranged Rule 10b5‑1 plans — CTO, General Counsel, CRO and a director have sold shares recently; while often planned, these large disclosures can be read as profit‑taking. SEC Form 4 (CTO sale)
Negative Sentiment: Valuation is extended — very high forward P/E and a premium multiple mean the stock is sensitive to any slowing in growth or weaker forward commentary; profit‑taking risk is elevated after the run.

About Datadog

(Get Free Report)

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.