Stifel Maintains Hold on Datadog (DDOG) After Mid-Quarter Check
📉 Stifel analyst Brad Reback maintained a Hold rating on Datadog (DDOG) with a $135.00 price target following a mid-quarter check-in call.
🚀 CEO Olivier Pomel revealed that generative AI is accelerating product development, shifting the company toward a faster-paced and more speculative strategy.
✅ Core business stability and increasing hyperscaler commitments from genAI vendors are viewed as encouraging positives for Datadog's growth.
⚠️ Uncertainty surrounding OpenAI's renewal deal remains a key headwind causing investors to exercise patience with the stock.
📊 The mid-quarter session did not include an intra-quarter consumption update, consistent with previous management meetings.
Bullish Signals
- Datadog demonstrates core business stability which is viewed as encouraging by analysts despite broader market volatility.
- Rising hyperscaler commitments from generative AI vendors are identified as a positive driver for the company's future growth trajectory.
Risk Factors
- The mid-quarter check-in did not provide an intra-quarter consumption update, leaving investors without fresh data on current usage trends.
Full Analysis
Stifel analyst Brad Reback maintained a Hold rating on Datadog, Inc. (NASDAQ:DDOG) following a mid-quarter check-in call held on September 11, 2025. The analyst reiterated a $135.00 price target for the stock, noting that management did not provide an intra-quarter consumption update during the session.
During the discussion, CEO Olivier Pomel highlighted a strategic shift in product development driven by generative AI. Datadog is moving from a traditional customer-led approach to a faster-paced, slightly more speculative strategy aimed at researching and productizing new capabilities more rapidly.
The analyst identified core stability and rising commitments from hyperscalers as positive factors for the company's growth trajectory. However, significant uncertainty remains regarding a renewal deal with OpenAI, which has weighed on investor sentiment and led Stifel to advise patience rather than an upgrade.
