Datadog jumps as Guggenheim turns bullish, targets re-acceleration in 2026 growth
Datadog shares rose as investors continued to react to a fresh bullish analyst call that upgraded the stock to Buy and set a $175 price target. The note argued Datadog’s 2026 revenue growth could re-accelerate to about 27%, supporting multiple expansion.
1) What’s moving the stock
Datadog (DDOG) is trading higher as the market digests a recent Guggenheim upgrade to Buy with a $175 price target. The call framed the recent pullback as an entry point and pointed to signs that growth could re-accelerate in 2026, helping lift sentiment across observability and cloud-software names. (aol.com)
2) The bull case investors are buying today
The upgrade thesis centers on expectations that Datadog can grow revenue around 27% in 2026 (above prior expectations and above broader consensus cited in the note), helped by expanding use cases in AI-related workloads and continued platform adoption. Bulls also point to Datadog’s recent revenue performance as evidence the company can keep compounding at scale. (benzinga.com)
3) What to watch next
With the stock reacting positively, the next debate is whether near-term fundamentals confirm the re-acceleration narrative versus a one-off sentiment swing. Traders will likely focus on upcoming quarterly results and guidance, net retention trends, and traction in newer AI/security products that could sustain demand and justify higher valuation multiples.