NEW YORK, Jan 9, 2026, 07:00 (EST) — Premarket
Datadog (DDOG.O) shares were up 0.7% in premarket trading on Friday at $131.60, after sliding 7.6% to $130.68 at Thursday’s close.
The timing is awkward for high-growth software. Investors are bracing for the U.S. jobs report and a Supreme Court ruling on the legality of President Donald Trump’s tariffs, both of which could jolt rate bets and broader risk appetite.
Analysts have started to reset the yardsticks. Truist analyst Miller Jump cut his price target on Datadog to $140 from $195 and kept a Hold rating, saying a “clear split has emerged between AI winners and losers” as the market re-prices software sold per user seat. TipRanks
A filing also flagged insider selling. Chief Technology Officer Alexis Le-Quoc sold 43,106 shares on Jan. 5 at weighted-average prices ranging from $132.54 to $135.60 under a 10b5-1 plan, a pre-arranged trading plan for insiders.
The next company catalyst is earnings. Investing.com lists Datadog’s next report for Feb. 12, with investors likely to focus on customer expansion and any shift in guidance rather than small beats or misses.
Datadog last lifted its fourth-quarter outlook in November, leaning on demand for cloud-security tools tied to AI workloads. It forecast fourth-quarter revenue of $912 million to $916 million and adjusted earnings of 54 to 56 cents a share.
But the downside case hasn’t gone away. Datadog has faced bouts of weaker enterprise spending and steady pressure from rivals such as Dynatrace in observability — software that helps spot outages, slowdowns and breaches across cloud systems.
After Thursday’s drop, the stock is still sitting around the $130 area, and traders are watching whether it can reclaim the mid-$130s without fresh help from rates or earnings expectations.
The next clock is set for 8:30 a.m. ET, when the U.S. Labor Department releases the December employment report.
