DDOG – Datadog, Inc.

Datadog, Inc. (DDOG) Monthly Stock Report – December 5, 2025

Company Overview

Datadog, Inc. (NASDAQ: DDOG), headquartered in New York, operates within the Technology sector, specializing in the Software – Application industry. Founded in 2010, Datadog has developed a comprehensive observability and security platform tailored for cloud applications. Its diverse product suite includes infrastructure and application performance monitoring, log management, digital experience monitoring, and tools for cloud cost, security management, and incident response. As a key player in the cloud management landscape, Datadog serves a broad spectrum of clients both domestically and internationally, providing essential insights for managing complex cloud environments. With total revenue exceeding $3.2 billion, Datadog’s strong performance indicators indicate a promising future in a market characterized by rapid digital transformation.

52-Week Price Performance Analysis

Price Trends

The stock price for Datadog has exhibited a predominantly bullish trend over the past 52 weeks, peaking at $201.69 in November before experiencing a noticeable pullback. Currently trading at approximately $151.14, the stock is positioned significantly below its 52-week high, indicating a potential buying opportunity for strategic investors.

Support and Resistance Levels

Key technical levels have emerged from the stock’s recent performance:
– Resistance Level: $153, which aligns with the recent high observed in November, serves as a critical point to watch for potential upward movement.
– Support Level: Approximately $120, tested multiple times in mid-year, is crucial–failure to hold above this could signal further downside risk.

Moving Averages and Momentum

The stock’s fifty-day moving average is currently at $161.74, illustrating a downward trend, as the current price is trading below this measure. Since reaching its November peak, the stock has seen a decline of roughly 9.28%, signifying a correction phase. Investors should monitor forthcoming trading sessions for a breakout above the $153 resistance or a failure to hold the $120 support, which could indicate future price movements.

Financial Performance and Metrics

Datadog’s financial metrics reflect a robust revenue stream but raise concerns regarding operational profitability. The company reported total revenue of approximately $3.21 billion, showcasing its solid market position. However, the EBITDA stands at a mere $6.23 million. This low EBITDA indicates that despite strong revenue, the company’s profitability may be under pressure, likely due to significant investment in growth initiatives.

Share Information

With a total of 325,443,373 shares outstanding, Datadog has 9,840,126 shares shorted, representing an approximate short interest of 0.0307% of its float. The minimal percentage of shorted shares conveys limited bearish sentiment among investors regarding the stock’s performance.

Valuation Metrics

Given the stock’s current trading price of approximately $151.14 and a high target price of $240.00, analysts suggest significant upside potential for investors willing to enter at today’s price point. The consensus from 41 analysts highlights a strong buy recommendation, with a favorable mean target price of $211.97, showcasing overall optimism in Datadog’s future.

Recent News and Developments

Significant developments impacting Datadog have emerged in recent days, which may influence investor sentiment.

• Collaborative Partnership: On December 3, Datadog announced an expanded partnership with Amazon Web Services (AWS) to enhance capabilities across its AI, observability, and security platforms. This collaboration likely aims to drive greater adoption of Datadog among AWS users.

• Analyst Downgrade: Conversely, on December 4, Guggenheim Securities downgraded Datadog’s stock from “Neutral” to “Sell,” citing concerns surrounding customer retention. Reports indicate that OpenAI, Datadog’s largest client, is developing its own in-house observability tools, potentially exposing Datadog to a revenue loss estimated at $150 million in 2026.

As of December 5, Datadog’s share price reflects a slight decline of 1.22% from its previous close, positioned at $151.14 amid these mixed developments.

Market Sentiment and Analyst Recommendations

The analyst consensus for Datadog remains constructive, with a strong buy recommendation attributed to an average score of 1.43182 from 41 analysts. The substantial disparity between the current price and the target high price of $240.00 accentuates the potential upside for investors. The low target price of $150.00 further establishes a clear line of potential downside risk.

Overall sentiment appears optimistic despite recent volatility and downgrade concerns, suggesting that investors may find value in acquiring shares at the current price levels, given the potential for significant appreciation as market conditions improve.

Conclusion

In conclusion, Datadog, Inc. presents a compelling investment opportunity for retail investors dissecting the current market landscape. The company’s significant revenue generation, strategic partnerships, and favorable price targets underpin its positive outlook. However, caution is warranted given the recent analyst downgrade and operational profitability concerns. Observing key price levels and market developments will be crucial for making informed investment decisions regarding Datadog in the coming months.

Metric	Value
Market Cap	$53.5b
Total Debt	$1.3b
Total Cash	$4.1b
Shares Outstanding	325.4m
Float Shares	323.3m