Datadog gets rating upgrade at KeyBanc Capital

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KeyBanc Capital upgraded shares of Datadog (DDOG [https://seekingalpha.com/symbol/DDOG]) to Overweight from Sector Weight with a $230 price target.

Shares of Datadog jumped about 22% on Thursday after third-quarter results [https://seekingalpha.com/news/4517158-datadog-soars-after-q3-beat-raises-2025-outlook] beat estimates and the company raised its full year 2025 outlook. The company's stock dipped about 2% premarket on Friday.

"We upgrade shares of DDOG to Overweight as the two areas of concern that kept us Sector Weight materialized positively: 1) revenue ex. OpenAI accelerated, and the strength was broad based; and 2) visibility into sustained OpenAI spend for the next several quarters after renewing/expanding its commitment in 3Q," said analysts led by Eric Heath.

The analysts believe that the positive growth inflection will continue due to Datadog's innovation leadership, platform breadth, relevance with AI natives, increasing success with security, accelerating public cloud trends, and monitoring of AI workloads as they move to inference.

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* Datadog soars after Q3 beat, raises 2025 outlook [https://seekingalpha.com/news/4517158-datadog-soars-after-q3-beat-raises-2025-outlook]