Datadog Demand Accelerates Across AI, Core Products, Wedbush Says
Datadog (DDOG) continues to see accelerating demand for its platform with broad-based strength across its customer base reinforcing the company's role in cloud migration, digital transformation, and emerging AI workloads, Wedbush Securities said Thursday in a report.Following Datadog's upbeat Q1 results, Wedbush said the company's base of customers spending at least six figures annually grew to about 4,550, up 21% from a year earlier, with higher spending from AI and non-AI customers and gross revenue retention holding in the mid-high 90% range.Datadog raised its 2026 revenue guidance, driven by record sequential annual recurring revenue and strong annualized bookings from new customers, Wedbush said.The company also lifted its 2026 adjusted earnings forecast as it continues to hire and invest to support growth, the report said.Wedbush raised its price target on Datadog stock to $220 from $190 and maintained its outperform rating.Price: $187.39, Change: $+43.68, Percent Change: +30.39%