Datadog Analyst Highlights Growth Versus Public Cloud Providers And Cost Monitoring Versus Pandemic Times

Needham analyst Mike Cikos reiterated a Buy and $90 price target on Datadog, Inc DDOG
Since Datadog's earnings release, client feedback has centered on Datadog's growth compared to the Public Cloud Providers, in addition to what's different this time versus COVID concerning customer usage.
Datadog's customer-tuning demonstrated a higher correlation with hyperscaler trends during COVID compared to the current environment.
He believes the diminished relationship is a function of Datadog's evolution over the last few years.
Datadog's management described organizations' response to the pandemic as a more panicked and knee-jerk reaction versus today's environment.
Organizations today are being more thoughtful in where they cut costs. Datadog's shift to a Platform has made it a more strategic partner to customers while reducing dependence on Infrastructure Monitoring.
Wolfe Research analyst Alex Zukin initiated coverage of Datadog with a Peer Perform rating without a price target.
The combination of valuation, risk-off sentiment, and falling near-term growth trends make the catalyst path challenging, Zukin noted.
Price Action: DDOG shares traded lower by 1.85% at $69.07 on the last check Monday.

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