Shares of Datadog, Inc. (NASDAQ:DDOG) are falling on Thursday despite an upgrade from Gugenheim. Here’s what you need to know.

Guggenheim Analysts: ‘Time To Let The Dog Run Free’

Guggenheim analyst Howard Ma upgraded Datadog from Neutral to Buy and set a price target of $175 on Thursday, representing more than 50% potential upside.

The analyst believes Datadog’s sophisticated backend architecture acts as a deep moat against competition. The company also has strong revenue contribution from multiple products and is leading the pack in terms of agentic observability, according to Guggenheim.

“Based on our industry research and checks, we believe that Datadog is a primary beneficiary of AI-driven growth in data volumes and IT complexity,” Ma wrote in a note to clients.

Guggenheim noted that it was previously cautious on Datadog because of the company’s pronounced exposure to OpenAI. However, checks suggest OpenAI will not move off of Datadog as quickly as initially expected.

Guggenheim analysts projected that Datadog will grow revenue by 27% in 2026 versus prior expectations of about 24%. For comparison, consensus estimates are currently around 20%.

Analyst Consensus & Recent Actions: The stock carries a consensus Buy rating with an average price target of $183.79. Other recent analyst moves include:

  • DA Davidson: Buy (Maintains Target to $225.00) (Feb. 17)
  • Wedbush: Outperform (Maintains Target to $190.00) (Feb. 13)

DDOG Shares Move Below Key Averages

Datadog is trading 9% below its 20-day simple moving average (SMA), the stock's average price over the last 20 sessions, which suggests the near-term trend is still pointed lower. It's also trading 16.4% below its 100-day SMA, indicating the intermediate trend remains under pressure and rallies may be getting sold.

Moving average convergence divergence (MACD), a trend/momentum measure, is bearish with MACD at -1.6054 versus a -0.7624 signal line, which is consistent with sellers controlling momentum right now. The death cross in February (50-day SMA falling below the 200-day SMA) reinforces that the longer-term trend backdrop has been fragile.

Over the last 12 months, the stock is up 14.95%, but that backward-looking gain comes with a wide trading range and a big gap from the $201.69 52-week high. With price closer to the lower end of the $85.74–$201.69 range, positioning suggests the market is still rebuilding confidence after the prior drawdown.

  • Key Resistance: $133.50 — a prior ceiling where rebounds have struggled to push through.
  • Key Support: $98.00 — an area where buyers have tended to show up and slow declines.

DDOG Shares Dip On Thursday

DDOG Stock Price Activity: Datadog shares were down 4.70% at $111.03 at the time of publication on Thursday, according to Benzinga Pro data.

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