KeyBanc Flags Guidance Uncertainty as Key Debate around Datadog (DDOG)

Datadog, Inc. (NASDAQ:DDOG) is 1 of the 10 AI Stocks to Keep connected Your Radar. On February 4, KeyBanc expert Eric Heath lowered the terms people connected the banal to $155.00 (from $170.00) portion maintaining an Overweight rating. The steadfast believes successful DDOG’s positioning but needs clarity connected 2026 guide.

The steadfast noted however DDOG needs to reflector a setup akin to Q3, with acceleration successful its halfway concern and stableness successful gross publication from OpenAI. Even if the institution posts different humble bushed of astir 4%, accordant with the erstwhile quarters, the steadfast expects management’s archetypal guidance to beryllium much cautious than statement estimates.

If absorption follows its erstwhile FY gross guidance approach, it whitethorn presume somewhat little nett caller gross year-over-year for the halfway business. Under the framework, the implied gross maturation whitethorn beryllium successful high-teens.

KeyBanc noted OpenAI to beryllium a important variable, perchance representing up to $300 cardinal successful gross and an estimated 90% of Datadog’s AI-native lawsuit segment. If Datadog’s guidance assumes level maturation for OpenAI, past full gross guidance whitethorn beryllium successful the mid-to-high teens percent range. This is compared to KeyBanc’s estimation of 20% and statement expectations of 21% growth.

Overall, capitalist sentiment for DDOG remains mixed, portion feedback has been mostly affirmative connected DDOG’s innovation, leadership, and imaginable AI tailwinds. Concerns specified arsenic terms unit besides remain.

Investor sentiment connected Datadog we judge is the astir debated wrong our coverage. Investor feedback is mostly affirmative connected Datadog’s innovation, class leadership, imaginable AI tailwinds, and accidental to beryllium palmy successful security. However, the medium-term interest is terms unit from Palo and incremental contention from information level vendors, portion the near-term interest remains 2026 guidance dynamics and header hazard from imaginable OpenAI churn. And successful this bundle environment, thing that isn’t indisputably cleanable doesn’t enactment T+1.

Photo by Austin Distel connected Unsplash

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

While we admit the imaginable of DDOG arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.