DDOG Stock Races Toward Best Week Ever After $1B Revenue Milestone — Stifel Sees 61% More Upside Ahead

• Datadog’s customer usage is growing at the fastest rate since early 2022. 
• Jefferies, Stifel, and Evercore ISI raised their price targets after Q1 earnings. 
• Jefferies kept a Buy rating, citing the strongest customer usage growth since early 2022. 

Datadog, Inc.’s stock (DDOG) is on track to notch its best weekly performance on record as the cloud company delivered a breakout first-quarter (Q1) earnings that ignited investor enthusiasm and underscored its key role in the artificial intelligence infrastructure boom.

The stock is also set to be the biggest winner this week on the Nasdaq-100 and the second-best performer on the S&P 500.

Wall Street Backs DDOG’s Strengthening Growth Trends

Jefferies, Stifel and Evercore ISI all raised their price targets on Datadog after what analysts broadly described as a solid “beat and raise” quarter. The firms cited stronger-than-anticipated demand, improving guidance and continued momentum in both core and AI-related products.

Jefferies raised its price target on DDOG to $210 from $170 and kept a ‘Buy’ rating, according to TheFly. The firm said customer usage grew at its fastest rate since early 2022, showing strong momentum in its main platform services. 

Stifel made a more aggressive revision, raising its target to $305 from $160 and also reiterating a ‘Buy’ rating. The firm emphasized that revenue growth continued to pick up sequentially. The new price target implies a 61% upside from the stock’s closing price on Thursday. 

Evercore ISI also raised its price target to $225 from $175, maintaining an Outperform rating. The firm said the company’s quarterly results and forward guidance helped ease concerns that growth might slow later in the year.

Datadog stock traded over 1% lower overnight late Thursday, after surging over 31% in the regular session. 

DDOG’s Strong Growth Across Core Metrics

In Q1, Datadog posted revenue of $1.006 billion, reaching its first-ever billion-dollar mark and beating analyst expectations of $959.9 million. Adjusted earnings per share came in at $0.60, well above the $0.51 Street forecast, according to Fiscal AI data.  

The company continued to deepen its enterprise base, growing to roughly 4,550 customers generating more than $100,000 in annual recurring revenue, up from about 3,770 a year earlier. 

Looking ahead, the company sees Q2 revenue between $1.07 billion and $1.08 billion and EPS between $0.57 and $0.59, compared with the Street estimates of $1.06 billion and $0.58, respectively. 

What Are DDOG Retail Traders Saying? 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory with 1,377% surge in message volume over 24 hours. 

A user said, “$DDOG earnings just proved high-value SaaS isn’t dying because of AI, it’s accelerating.”

Another user said, “damn, I missed this one.  Crushing growth with expanding margins.”

DDOG stock has gained over 38% year-to-date.

Also See: TTD Stock Sinks Overnight On Weak Outlook, But CEO Feels ‘Best Days Are Ahead’

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