Datadog shares are moving higher as Wall Street digests a recent bullish turn in analyst commentary, led by Guggenheim’s April 9, 2026 upgrade to Buy with a $175 price target. The thesis centers on Datadog’s leverage to AI-related data growth—more logs, metrics, and traces to ingest and analyze—which can translate into higher usage-based spend and expanding platform adoption. Recent market chatter has kept that catalyst active, with investors extending gains after follow-on coverage reiterated the AI upside and highlighted Anthropic as an important growth vector.

The upgrade narrative frames Datadog as a key “picks-and-shovels” beneficiary of AI buildouts: as enterprises deploy more AI services, observability and security monitoring typically becomes more complex and data-intensive. Guggenheim’s outlook also pointed to Anthropic as a large and scaling customer, with estimates that Anthropic’s annual recurring revenue tied to Datadog could become sizable over time. That customer-specific angle has helped support sentiment as investors look for concrete AI monetization signals rather than generic “AI exposure.”

Not all commentary has been uniformly positive—some firms have recently trimmed price targets while maintaining constructive ratings, reflecting valuation sensitivity and the market’s demand for clean execution. The next major catalyst is Datadog’s upcoming quarterly results, where investors will focus on usage trends, net retention signals, and any updates on AI-related product momentum and large-customer dynamics. If management commentary confirms AI-driven workload expansion and stable enterprise spending, the recent upgrade-driven bid could strengthen; if not, valuation could re-tighten quickly.