Datadog (DDOG) Crosses $1B ARR Across Core Segments Despite Competitive Pressure, Citizens Reaffirms Market Perform

Datadog, Inc. (NASDAQ:DDOG) ranks among the best stocks to buy now for long-term growth. On February 11, Citizens reaffirmed a Market Perform rating on Datadog, Inc. (NASDAQ:DDOG), citing the company’s success across its three observation segments, including infrastructure monitoring, application performance monitoring (APM), and log management, each of which had exceeded $1 billion in annual recurring revenue (ARR).

Citizens observed an “acceleration of our core APM product into the mid-30s y/y” and stated that Datadog, Inc. (NASDAQ:DDOG) supplied “over 400 new features and capabilities” in 2025. The firm also cited Datadog’s recent eight-figure agreement with an AI specialist as an encouraging move for the company.

Despite these advantages, Citizens noted several potential pitfalls, including strong competition from 20 companies in the Gartner Magic Quadrant for Observability (including emerging competitors) and client concentration at major AI research facilities.

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.

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.