Datadog, Inc. (NASDAQ: DDOG) is highlighted as a key AI stock on Wall Street. Scotiabank analyst Pat Colville recently reduced the price target on DDOG to $180.00 from $217.00 while maintaining a Sector Outperform rating. The firm views DDOG as a safe AI monitoring play despite sector uncertainty.

Scotiabank estimates that Datadog’s revenue growth could reach the low-20% range in 2026, even though initial management guidance may be more conservative. The firm believes that DDOG is positioned as a standard for monitoring complex environments with no pricing pressure from competitors like Palo Alto Networks and Snowflake.

Despite concerns about competition, Datadog is seen as a secure investment during times of AI disruption in the software sector. The company offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

While Datadog has potential as an investment, some AI stocks may offer greater upside potential with less downside risk. For those seeking an undervalued AI stock with potential benefits from current economic trends, explore the best short-term AI stock recommendations in a free report.

Read more at Yahoo Finance: Scotiabank Sees Datadog (DDOG) as Safe AI Monitoring Play Despite PT Cut