DDOG
Truist says the AI party is still rolling
Datadog got a neat little jolt on Monday after Truist Securities upgraded the stock to Buy from Hold and slapped a fresh $300 price target on it. That’s a big jump from $190, and it came after the firm did some industry checks and showed up to Datadog’s DASH conference like a very optimistic party guest.
Why investors cared
The bull case here is basically: AI is eating the enterprise, and somebody has to watch the machinery keep humming. Truist argued that demand for AI adoption is still outrunning companies’ attempts to trim AI spend, which is pretty much catnip for Datadog’s consumption-based model.
A few extra breadcrumbs helped the mood:
- Truist pointed to stronger confidence in Datadog’s ties with big-name AI customers like OpenAI and Anthropic.
- The firm sees agentic AI applications driving more demand for telemetry and observability tools.
- It also now expects fiscal 2027 revenue growth of 25%, above the 20.5% FactSet consensus.
Not just an analyst note, but a market mood swing too
Datadog didn’t rise in a vacuum. Growth stocks were back in favor as the Nasdaq jumped 2.9% and the S&P 500 climbed 1.8%, so the stock got a tailwind from the broader risk-on vibe. But when a respected analyst raises a target that sharply, it tends to make the stock look less like a vibe trade and more like a thesis trade.
The shares were up 2.64% to $235.98 at the time of publication, and the new target implies roughly 30% upside from the June 12 close. In other words: Wall Street is still willing to pay up for the plumbing behind AI if it thinks the pipes are getting busier.
The fine print
Datadog’s long-term chart is still doing its best impression of a staircase to heaven — the stock is well above its 50-day and 200-day moving averages and up almost 93% over the past year. But short-term momentum looks a little less turbocharged, so the next leg up may need more than one shiny analyst call.
Big picture: Datadog is increasingly being sold as an AI infrastructure tollbooth, and investors seem happy to keep paying the toll — at least for now.