The rise of artificial intelligence (AI) is significantly benefiting tech stocks, including Datadog (NASDAQ: DDOG), which specializes in cloud monitoring services for enterprises. After experiencing a sharp decline of 68% in 2022, Datadog’s shares are currently over 35% below their all-time high from late 2021.
Currently, 46 analysts have coverage on Datadog; 10 rate it as a strong buy, 28 as a buy, and 8 as a hold, with none recommending a sell. The average 12-month price target for Datadog is nearly $139, indicating an upside of about 9% based on current trading levels.
In the first quarter of the year, about 8.5% of Datadog’s total revenue came from AI-native customers, up from 3.5% a year earlier. Management has raised its revenue guidance by roughly $40 million in response to this growth.
