Datadog (DDOG) Prefers Organic Growth Over Large Acquisitions, Says Bernstein

Datadog, Inc. (NASDAQ:DDOG) ranks among the most promising QQQ stocks according to hedge funds. Bernstein reaffirmed its Outperform rating and $180 price target for Datadog, Inc. (NASDAQ:DDOG) on January 23, citing market chatter about the possibility of a GitLab acquisition. Bernstein analyst Peter Weed expressed reservations about the arrangement, saying it “doesn’t make a lot of sense” based on the firm’s analysis.

According to Bernstein’s interactions with Datadog, Inc. (NASDAQ:DDOG) management during Q3 earnings, the company indicated an affinity for smaller technology acquisitions over substantial agreements. The firm also stated that Datadog, Inc. (NASDAQ:DDOG) is focusing on expanding its CI Visibility product and Code Security capabilities locally, implying that it will develop a GitLab-adjacent capability natively as opposed to through acquisition.

Moreover, Stifel boosted Datadog, Inc. (NASDAQ:DDOG) to Buy from Hold, citing recent checks indicating another above-average quarterly beat driven by accelerated core expansion and stability in OpenAI-related revenue. Stifel’s more optimistic outlook is further supported by signs that previous sales and marketing expenditures have gained traction. into a crucial bottleneck in AI systems.

Datadog, Inc. (NASDAQ:DDOG) is a software company that provides an observability solution built for cloud-scale applications, monitoring servers, databases, tools, and services via its SaaS-based data analytics platform.

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Disclosure: None. This article is originally published at Insider Monkey.