Datadog Downgraded by Bernstein on Valuation, Shares Fall as Nasdaq Futures Rise 1%
DDOG•Bernstein downgraded Datadog on concerns its shares now trade at unsustainable valuations despite highlighting an improved AI-driven revenue outlook. In Monday’s pre-market session Datadog was among the heaviest decliners while Nasdaq 100 futures rose roughly 1%.
1. Analyst Rating Change
Bernstein reduced Datadog’s rating, citing that the stock’s valuation no longer justified its growth trajectory. The firm nevertheless raised its forecast for AI-driven revenue growth, signaling confidence in long-term fundamentals despite short-term price concerns.
2. Pre-market Session Performance
In early trading Datadog shares were among the largest decliners, reflecting investor caution after the downgrade. Meanwhile, broader tech sentiment showed strength as Nasdaq 100 futures climbed about 1%, indicating mixed market dynamics.
