Datadog’s (DDOG) Cautious Outlook Doesn’t Shake Rosenblatt’s Bullish View

• StockStory Top Pick DDOG -0.94%

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 Trending AI Stocks According to Analysts. Despite guidance striking a cautious stone for Datadog, Rosenblatt sees robust execution and AI tailwinds for the cyber security company. On February 9, firm analyst Blair Abernethy reiterated a Buy rating and $185.00 price target. Strong Q4 beat, AI-native customer momentum, and large deal wins has reinforced firm’s confidence in the stock.

The firm noted how DDOG posted robust results, highlighting Q4 revenue growth of 29% which exceeded both guidance and consensus expectations. Robust operating margins of 24.1%, the revenue growth for the company was largely driven by increasing demand of cloud migration and digital transformation backed by growth in customer usage.

The firm highlighted that total customers count grew by 700 to 32.7k in Q4. Cloud migration and digital transformation initiatives continue to support demand, alongside growing contributions from AI-native customers.

Large deal activities in the quarter also led to a surge in its bookings, the firm noted. While management’s FY26 revenue growth guidance of 18.5% to 19.6% seems conservative compared to expectations, the firm has expressed confidence in DDOG’s trajectory, market expansion efforts, and early momentum in FY26.

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.