We recently published an article titled 13 High Growth Cloud Stocks to Buy.
Datadog, Inc. (NASDAQ:DDOG) is among the high-growth cloud stocks to buy, even as near-term macro pressures weigh on valuation multiples across the sector. On January 30, Rosenblatt lowered its price target on the shares to $185 from $200 while reiterating a Buy rating, citing comparable multiple compression and ongoing macro uncertainty impacting enterprise IT spending. Importantly, the firm continues to expect Datadog to deliver an in-line to incrementally better fourth-quarter performance, underscoring confidence in the company’s underlying fundamentals despite the more cautious market backdrop.
During its Q3 2025 earnings call, Datadog, Inc. (NASDAQ:DDOG) reported record new logo annualized bookings, more than doubling year over year, highlighting sustained demand for its observability platform. The quarter was marked by several large enterprise wins, including multiple seven-figure deals with a leading European telecommunications provider and a Fortune 500 technology hardware company. These deals reflect Datadog’s growing relevance among large, complex organizations that require scalable, real-time visibility across increasingly hybrid and multi-cloud environments.
Datadog, Inc. (NASDAQ:DDOG) continues to benefit from secular tailwinds tied to cloud migration, distributed systems, and the rising complexity of modern application stacks. As enterprises adopt AI workloads and containerized architectures, the need for unified monitoring, security, and analytics platforms becomes more critical. Datadog’s expanding product suite, strong cross-sell capabilities, and land-and-expand motion position it well to capture a larger share of customer spend over time, even if near-term budgets remain constrained.
Founded in 2010 and headquartered in New York City, Datadog, Inc. (NASDAQ:DDOG) provides a SaaS-based observability platform that monitors servers, databases, applications, and cloud services. While macro concerns may continue to influence sentiment in the enterprise software space, Datadog’s accelerating enterprise adoption, record bookings growth, and exposure to long-term cloud and AI trends support the view that the company remains a high-quality growth stock with attractive upside as spending conditions normalize.
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.
