From Yahoo Finance: 2025-05-07 09:32:00

Investment bank DA Davidson increased Datadog’s price target to $125 from $115, citing strong growth potential in the observability market. Meanwhile, Rosenblatt Securities slightly cut its price target but remains positive on DDOG’s performance. The stock has climbed 22% in the last month but fallen 27% in the last three months.

DA Davidson estimates DDOG could see annual growth of 20% to 25% for several years, despite concerns about OpenAI. Rosenblatt expects continued growth following strong Q4 performance, driven by customer demand and positive reports from cloud-service firms. The bank predicts existing customers will purchase more offerings in the future.

While DDOG shows promise, some believe AI stocks offer higher returns in a shorter timeframe. As an alternative, consider exploring a cheaper AI stock that has performed well in 2025. Despite the positive outlook for DDOG, this analysis suggests other AI stocks may offer greater potential for investors.

Read more: Investment Bank Raises Its Price Target on Datadog (DDOG)