New York, January 23, 2026, 14:45 EST — Regular session
- Datadog shares slipped roughly 0.8% in afternoon trading, following a strong rally the previous day
- On Thursday, Stifel upgraded its rating to “buy” but lowered its price target
- Investors are focused on earnings set for Feb. 10 and an investor day scheduled for Feb. 12 as the next key events
Datadog Inc shares slipped 0.8% to $130.23 Friday afternoon, giving back some of the previous day’s gains. The Nasdaq-listed stock fluctuated between $129.15 and $132.02 during the session.
This move is crucial as Datadog approaches its upcoming earnings, with sentiment sensitive to even minor tweaks in growth forecasts. Brokerage notes are flooding back, and traders are quick to dismiss any signs of “too far, too fast.”
Datadog offers observability software, which helps companies monitor apps and IT systems in real time, along with cloud security products. Investors frequently view the company as a gauge of how confident businesses are in spending on cloud infrastructure and its associated software.
Stifel’s Brad Reback boosted Datadog to a “buy” from “hold” on Thursday, while cutting his price target to $160 from $205. He pointed to checks suggesting a stronger-than-expected fourth quarter. According to Reback, the surge in sales and marketing spend is hitting an “inflection point.” He also forecasted growth, excluding “OAI” — their term for OpenAI-related revenue — could exceed 23%, with 2026 revenue guidance near $4.1 billion. Benzinga
Deal chatter remains a strong influence on the stock. On Friday, Bernstein stuck with its Outperform rating and $180 price target, though analyst Peter Weed expressed skepticism about a potential GitLab acquisition, saying it “doesn’t make a lot of sense.” He pointed out that management has favored smaller tech acquisitions. Investing.com
The GitLab link isn’t fresh news. Back in July 2024, Reuters reported GitLab was weighing a sale, attracting interest from peers like Datadog, though no deal was sealed then.
Datadog’s upcoming schedule could set the tone for the next move. The company plans to release its fourth-quarter and full-year 2025 results before U.S. markets open on Feb. 10, followed by a conference call at 8 a.m. ET.
Datadog will host an investor day in New York two days from now, kicking off at 1 p.m. ET. The company aims to highlight its growth strategy, spending plans, and margins during the event.
The risk remains that the story could turn once more. Upgrades can vanish fast if guidance falls short, and talk of deals is a double-edged sword — it might boost multiples on optimism or unsettle investors wary of valuation and distraction.
Traders are set to watch for new analyst updates while also keeping the calendar in mind, with earnings due Feb. 10 and an investor day scheduled for Feb. 12.
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