On July 30, Datadog rose 3.54% overnight, trading at $273.55 per share. The rally was driven by a wave of Wall Street target price upgrades and growing bullish sentiment ahead of the August 6 earnings release.
Multiple major investment banks have recently raised their price targets on Datadog: Bank of America to $305, Citigroup and Morgan Stanley to $300, and Benchmark to $330. Oppenheimer noted that Q2 revenue is expected to beat consensus estimates, supported by sustained AI workload growth, strong new customer additions, and contributions from newer products including Bits AI, Flex Logs, and Cloud SIEM. The company also recently acquired AI firm Adaptive ML to strengthen its large language model research capabilities and was named a Leader in the Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year.
With earnings scheduled for August 6 pre-market (expected EPS: $0.13), market optimism around Datadog's AI-driven growth trajectory continues to intensify.
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