Datadog's (DDOG) place at the intersection of observability and security remains strong as the company continues to capitalize on rapid artificial intelligence development and demand, Wedbush said in a Wednesday note.
With the company launching new capabilities and products at its annual technical conference, Wedbush said that customers were most excited about Bits AI updates and Journey Monitoring, which streamline workflows by allowing users to track journeys automatically during shipping, among others.
Two launches related to security stood out, namely, AI Guard that blocks prompt injection and tool misuse, and Runtime Prioritization Engine, which cuts vulnerability noise over 95% by ranking findings on runtime reachability and business impact, Wedbush said.
Wedbush raised its price target to $260 from $220 and maintained its outperform rating, reflecting a higher multiple as well as increased confidence in the AI driven growth story.
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