Datadog Faces Revenue Hit as OpenAI May Leave

Datadog, Inc. (NASDAQ: DDOG) faces a potential revenue hit as its biggest customer, OpenAI, may move workloads in-house. Guggenheim downgraded the stock to “Sell” with a target price of $105. OpenAI accounts for about 60% of Datadog’s AI-native customer cohort, creating uncertainty for the company’s future revenue.

OpenAI is developing its own log-management and metrics tools, which could lead to a decrease in Datadog’s billings in the second half of 2025. Despite a strong second quarter with anticipated revenue growth, analysts warn of potential challenges ahead if OpenAI migrates workloads in-house.

Datadog, Inc. (NASDAQ: DDOG) provides a cloud-based SaaS platform for monitoring and analytics, focusing on cloud computing and AI-powered cybersecurity products. However, concerns arise about the company’s future growth due to potential changes in its biggest customer, OpenAI. Investors are urged to consider other AI stocks with greater potential upside and less downside risk.

Read more at Yahoo Finance: Datadog’s (DDOG) Strong Q2 Can’t Hide What’s Coming: OpenAI May Walk Away