Stifel Reiterates Hold Rating on Datadog (DDOG)

Stifel analyst Brad Reback reiterated a Hold rating and $125.00 price target on Datadog (NASDAQ: DDOG).

The analyst commented, "With hyperscaler results better/inline (+Azure, =AWS, =GCP) and our recent Datadog checks pointing to consistent usage trends and a solid deal environment, we believe 1Q likely played out as expected and should drive ~3% revenue upside.This implies a 1.45x AWS multiplier, up meaningfully from 1.33x Q/Q, and the 1st Q/Q improvement since a modest gain in 2Q23. We believe this expansion is possible given the continued strong growth in ChatGPT usage (Azure), which likely more than offsets the pricing benefits OAI received under its 4Q DDOG renewal.After factoring potentially ~3% 1Q upside, we believe management likely guides to $15M-$20M of 2Q25 sequential adds (consistent with the last 3 years) pointing to a 2Q guide of $775M-$780M vs. $771M consensus.We believe the above scenario would be well-received by investors, but with questions still surrounding the non-AI growth rate and durability of the OAI relationship we remain Hold rated."

For an analyst ratings summary and ratings history on Datadog click here. For more ratings news on Datadog click here.

Shares of Datadog closed at $105.00 yesterday.

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