NEW YORK, January 22, 2026, 13:26 EST — Regular session
- Datadog shares jumped following Stifel’s upgrade to “buy,” despite the firm lowering its price target.
- The company will release its fourth-quarter and full-year results on Feb. 10, followed by an investor day on Feb. 12.
- Traders are gearing up for 2026 guidance as growth and AI-driven demand take center stage again.
Datadog shares climbed 7.2% to $132.35 by midday Thursday following Stifel’s upgrade of the cloud monitoring and security company from “hold” to “buy.” At the same time, Stifel lowered its price target to $160 from $205. Investing.com
This move matters because Datadog’s next earnings are just around the corner, and the stock reacts sharply to even minor growth forecast changes in cloud software. The company plans to report its fourth-quarter and fiscal-year 2025 results before U.S. markets open on Feb. 10, followed by a conference call at 8:00 a.m. Eastern.
Datadog plans another chance to recalibrate expectations shortly after, announcing an investor day in New York City on Feb. 12 at 1:00 p.m. ET.
Stifel analyst Brad Reback flagged recent “checks” — a Wall Street term for talks with clients and partners — hinting Datadog might top fourth-quarter estimates. In a note highlighted by Benzinga, Reback pointed to potential upside from “accelerating core growth” and steady quarter-over-quarter OpenAI-related demand, which some analysts track separately.
Some firms have lowered their price targets but remain bullish, highlighting how much valuation pressure the stock still faces. TD Cowen dropped its target to $200 from $235 on Wednesday while maintaining a buy rating. The firm anticipates Datadog will deliver a strong beat against its growth guidance and projects 2026 revenue between 19% and 20%.
Mizuho cut its price target to $170 from $200 but kept its outperform rating, according to MT Newswires.
Datadog climbed as other observability stocks also advanced, with Dynatrace gaining 3.1% and Elastic rising 1.9%. The Invesco QQQ Trust added 0.9%, and the SPDR S&P 500 ETF increased 0.8%.
Datadog offers “observability” tools—software designed to monitor applications and infrastructure—and investors view it as a bellwether for cloud spending. That puts extra weight on its February outlook, even if the trigger for moves is only an analyst note.
That rally could falter quickly if expectations outpace the actual data. A slip in growth, a cautious outlook for 2026, or early signs that AI-driven usage is leveling off might shift attention back to the intense competition and pricing pressures in monitoring and security software.
Datadog’s Feb. 10 earnings and guidance come first, with its investor day scheduled for Feb. 12. These consecutive events could shape how DDOG shares perform the week after.
