Datadog's (DDOG) AI Positioning in Focus as RBC Maintains Outperform Rating

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Analysts Are Watching. On February 9, RBC Capital analyst Matthew Hedberg lowered the price target on the stock to $150.00 (from $175.00) while maintaining an “Outperform” rating. While the firm is cautious on the stock due to peer-multiple compression, upcoming earnings and analyst day will provide a key AI strategy update.

“Thinking through Datadog’s earnings report and analyst day; Next week will be busy for Datadog with earnings on 2/10 and an analyst day on 2/12.”

According to analyst Matthew Hedberg, DDOG is likely to report robust Q4 results but likely a conservative revenue and margin guidance that may weigh on shares “but act as a clearing event.”

Following earnings, Hedberg believes that DDOG’s analyst day will likely be focused on DDOG’s positioning in an agentic/AI world, evolving competitive environment, security, GTM strategy, and margin commentary.

However, the firm doesn’t expect DDOG to provide any long-term financial targets during the analyst event.

“Maintain OP rating and reduce PT to $150 from $175 on peer-multiple compression.”

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

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