From Yahoo Finance: 2025-06-21 13:33:00

Datadog stock is over 35% below its all-time high from four years ago. Many organizations are adopting AI-powered tools, presenting an opportunity for Datadog. The shares are trading near their lowest price-to-sales ratio ever. The rise of AI is benefiting tech stocks beyond semiconductors, including Datadog.

Datadog’s stock soared by 400% between 2019 and 2021 but plummeted by 68% in 2022. Analysts now rate Datadog highly, with a 12-month price target of nearly $139. The company serves thousands of clients in various industries, and its revenue from AI-native customers is growing.

Datadog’s revenue guidance was raised by $40 million due to growth from AI-native customers. The company’s valuation remains low, with a P/S ratio of 16 compared to a peak of over 60 in 2020 and 2021. Despite recent gains, the stock remains undervalued according to long-term averages.

Datadog’s stock is rebounding, driven by the AI revolution, positive analyst ratings, and a low valuation. The company’s revenue from AI-native customers is growing, and long-term investors may find this a good time to buy. The Motley Fool identified other top stocks for investment opportunities.



Read more at Yahoo Finance: 1 AI Super Stock Is Starting to Rebound, but Shares Still Look Cheap