Datadog Inc (NASDAQ:DDOG) stock is up 6.1% to trade at $262.21 today, after Bernstein upgraded the cloud monitoring name to "outperform" from "market perform" and raised its price target to $350 from $237. The firm cited stronger AI-driven tailwinds that could benefit the company, though Jefferies cut its target price to $280 from $300.
Today's pop has DDOG looking to snap a five-day losing streak, as the shares continue to pull back sharply after their Oct. 12 record high of $300.68. Year to date, the equity is up 93.5%.
Options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), DDOG's 10-day put/call volume ratio of 1.11 ranks in the 91st percentile of its annual range. An unwinding of this pessimism could provide additional tailwinds for the shares.
Analysts, on the other hand, are overwhelmingly bullish on Datadog stock. Of the 46 brokerages in coverage, 42 carry a "buy" or better rating, compared to just three "holds" and one "strong sell."
Lastly, DDOG sports a Schaeffer's Volatility Scorecard (SVS) of 84 out of 100, indicating the equity has consistently exceeded options traders' volatility expectations during the past year.
