Cantor Fitzgerald Raises PT on Datadog, Inc. (DDOG) Following Strong Q2 Results

Datadog, Inc. (NASDAQ:DDOG) is one of the 14 Best IT Stocks to Buy for the Long Term.

On August 8, 2025, Cantor Fitzgerald raised its price target on Datadog, Inc. (NASDAQ:DDOG) from $171 to $179, maintaining an ‘Overweight’ rating, driven by the company’s strong Q2 results.

Datadog, Inc. (NASDAQ:DDOG) eased concerns related to potential in-sourcing by its largest AI native customer, which contributes about 6.5% of quarterly revenue, thanks to a 25.5% YoY revenue growth. Following the Q4 2024 contract renewal, the company demonstrated resilience in its AI native segment. Its higher second-half guidance further bolstered the analysts’ confidence. Even after excluding the largest customer, the company’s revenue growth remains steady despite a cautious stance among enterprises.

Thus, the analyst believes Datadog, Inc. (NASDAQ:DDOG) is well-positioned to capitalize on both AI-native expansion and broader enterprise adoption.

With its observability and security platform for cloud applications, Datadog, Inc. (NASDAQ:DDOG) provides monitoring, data observability, security, automation, and AI visibility tools globally. It is one of the best IT stocks.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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