Datadog, Inc. (NASDAQ:DDOG) shares are up during Thursday’s premarket session following a strategic partnership announcement with Sakana AI aimed at enhancing AI innovation and observability.
This collaboration is set to help enterprises better understand and operate AI systems, which is timely as the technology sector is showing positive momentum, with the Technology sector gaining 0.17% on the previous trading day.
Details
The partnership will focus on joint research initiatives, product innovation, and go-to-market strategies, particularly for large enterprise customers in Japan.
This collaboration leverages Datadog’s established presence in the region and aims to enhance the performance and reliability of AI-powered applications.
Sakana AI, a next-generation AI research lab, brings advanced research capabilities to the table, which will complement Datadog’s observability platform.
The partnership is expected to bridge the gap between AI innovation and real-world production readiness, addressing the complexities that modern enterprises face as they adopt AI technologies.
Recent Earnings
This month, the company reported adjusted EPS of 59 cents beat the analyst consensus estimate of 56 cents. Also, revenue increased 29% year-over-year to $953.19 million, beating the analyst consensus estimate of $916.58 million as the growing adoption of artificial intelligence fueled stronger demand for its cloud security products.
Technical Analysis
The broader market experienced modest gains on the previous trading day, with the S&P 500 closing up 0.04% and the Nasdaq rising 0.04%. Datadog’s upward movement aligns with this positive sentiment, indicating that the stock is moving in sync with broader market trends.
Currently, Datadog is trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, suggesting some short-term weakness. Over the past 12 months, shares have increased, and they are currently positioned closer to their 52-week highs than lows, indicating a generally positive long-term trend.
The RSI is at 44.45, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum for Datadog at this time.
- Key Resistance: $115.00
- Key Support: $100.00
Earnings & Analyst Outlook
DDOG is slated to provide its next financial update on May 5, 2026.
- EPS Estimate: 33 cents (Down from 46 cents YoY)
- Revenue Estimate: $958.41 Million (Up from $762.00 Million YoY)
- Valuation: P/E of 355.9x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $184.11. Recent analyst moves include:
- DA Davidson: Buy (Maintains Target to $225.00) (Feb. 17)
- Wedbush: Outperform (Maintains Target to $190.00) (Feb. 13)
- BTIG: Buy (Maintains Target to $170.00) (Feb. 13)
DDOG Price Action: Datadog shares were up 0.37% at $110.74 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
