On July 21, Datadog declined 3.41% in regular trading, trading at $254.58/share, with turnover of $315 million.

On the news front, despite Jefferies and Evercore ISI both raising their Datadog price targets to $280, a UBS report revealed that hedge funds have recently undertaken a massive reduction in semiconductor and software stock positions. According to UBS prime brokerage data, hedge funds have unwound momentum and semiconductor long positions equivalent to approximately 5% of total market capitalization — one of the largest de-leveraging events on record — pushing net exposures in semiconductor and software stocks back to April levels. Datadog was explicitly listed as a component of UBS's momentum stock basket alongside Broadcom, Oracle, and Microsoft.

UBS hedge fund equity derivatives head Michael Romano noted that while improving AI fundamentals signal a buy-the-dip opportunity, investors should build positions gradually rather than rushing in. He expects this momentum selloff to bottom by late July and recommends a measured re-entry approach.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)