- 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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