Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks Making Waves on Wall Street. On January 29, BMO Capital analyst Keith Bachman lowered the price target on the stock to $170.00 (from $215.00) while maintaining an “Outperform” rating. The firm believes DDOG’s thesis is intact despite valuation compression and OpenAI migration risk.
According to the firm, Datadog is poised to have a solid December quarter. However, it does have some reservations regarding FY26 guide due to management’s normal conservatism and the risk that OpenAI may potentially migrate a portion of its work away from Datadog.
Analyst Keith Bachman presented several scenarios based on potential OpenAI migration patterns. However, it did not adjust its financial estimates stating that the timing and scope of any potential OpenAI migration remains unclear.
“Nevertheless, we are lowering our price target to $170 from $215 due to both software valuation compression and risk of OpenAI. We retain our Outperform rating.”
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
