Why Datadog (DDOG) Shares Are Rising Today

Recent Developments for Datadog

Datadog (NASDAQ:DDOG), a leading provider of cloud monitoring solutions, saw its stock price rise by 4.9% during the afternoon trading session. This uptick followed Stifel's decision to upgrade Datadog from "Hold" to "Buy," based on expectations for a particularly strong quarterly performance.

According to Stifel, recent industry insights suggest Datadog is on track to surpass typical quarterly results, fueled by accelerating core growth and sustained momentum. Meanwhile, TD Cowen reaffirmed its "Buy" rating, expressing confidence that Datadog will outperform its 24% growth forecast and highlighting the company's appealing valuation and lack of major competitive threats.

Market Reaction and Analyst Sentiment

Datadog's stock is known for its volatility, having experienced 20 separate swings of more than 5% over the past year. Today's price movement suggests that investors view the latest news as significant, though not transformative for the company's overall outlook.

Just four days ago, Datadog shares surged 7.3% after Stifel upgraded its rating, again citing expectations for a robust fourth-quarter showing. The upgrade was supported by indications of stronger-than-usual quarterly results and faster core business growth, prompting Stifel to set a new price target of $160. Additionally, Guggenheim analysts predicted an acceleration in revenue growth, while Bernstein gave Datadog an "Outperform" rating with a $180 price target. Collectively, these positive assessments signal high expectations for the company’s upcoming financial report.

Since the start of the year, Datadog's stock has climbed 2.2%. At a current price of $136.71 per share, it remains 31.5% below its 52-week peak of $199.72 reached in November 2025. An investor who purchased $1,000 worth of Datadog shares five years ago would now see that investment grow to $1,321.