AI Technology Drives Growth for Datadog and Workiva
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy DDOG?
Source: Fool
- Surging Demand for Datadog's AI Products: As of Q3 2025, Datadog had 32,000 customers, with over 5,000 using at least one AI product, a 67% increase from the previous year, and AI customers accounted for 12% of total revenue, indicating strong growth momentum in this segment.
- Efficiency Boost from AI Integration: The introduction of the Bits AI assistant has accelerated workflows for Datadog, while the new LLM Observability product enables developers to monitor costs and troubleshoot issues with large language models, addressing the market's urgent need for AI solutions.
- Enhanced Integration Capabilities for Workiva: Workiva's revenue grew by 21% to $224 million in Q3 2025, driven by an increase in high-spending customers, with businesses spending over $300,000 and $500,000 annually rising by 41% and 42%, respectively.
- Optimistic Financial Forecast: Workiva raised its full-year revenue forecast for 2025 to $881 million, and if it exceeds this expectation in the earnings report on February 19, a stock rally is anticipated, especially given its current attractive valuation.
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Analyst Views on DDOG
Wall Street analysts forecast DDOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DDOG is 207.39 USD with a low forecast of 140.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 106.730
Low
140.00
Averages
207.39
High
255.00
Current: 106.730
Low
140.00
Averages
207.39
High
255.00
About DDOG
Datadog, Inc. provides an observability and security platform for cloud applications. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security and many other capabilities to provide unified, real-time observability and security for its customers’ entire technology stack. Its platform consists of products that can be used individually or as a unified solution and includes a marketplace where customers can access products built by its partners on top of the Datadog platform. Its products include Infrastructure Monitoring, Application Performance Monitoring, Log Management, Digital Experience Monitoring, Continuous Profiler, Database Monitoring, Data Observability, Universal Service Monitoring, Network Monitoring and others. It owns Metaplane, an end-to-end data observability platform that provides advanced machine learning-powered monitoring and column-level lineage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Datadog: Recommended High-Growth Cloud Stock
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- Significant New Customer Growth: Datadog reported record new logo annualized bookings more than doubling year-over-year in its Q3 2025 earnings call, highlighting sustained demand for its observability platform, particularly among large enterprises.
- Successful Large Deals: The quarter featured multiple seven-figure deals with a leading European telecommunications provider and a Fortune 500 technology hardware company, underscoring Datadog's growing importance in complex organizations.
- Favorable Market Trends: As enterprises adopt AI workloads and containerized architectures, Datadog's expanding product suite and strong cross-sell capabilities position it well to benefit from cloud migration and the rising complexity of modern application stacks, even with constrained near-term budgets.
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- Optimistic Performance Outlook: Despite macro pressures affecting valuations, Rosenblatt lowered Datadog's price target from $200 to $185 while maintaining a Buy rating, indicating confidence in the company's fundamentals.
- Significant New Customer Growth: Datadog reported record new logo annualized bookings more than doubling year-over-year in its Q3 2025 earnings call, highlighting sustained demand for its observability platform, particularly among large enterprises.
- Successful Large Deals: The quarter featured multiple seven-figure deals with a leading European telecommunications provider and a Fortune 500 technology hardware company, underscoring Datadog's growing importance in complex organizations.
- Favorable Market Trends: As enterprises adopt AI workloads and containerized architectures, Datadog's expanding product suite and strong cross-sell capabilities position it well to benefit from cloud migration and the rising complexity of modern application stacks, even with constrained near-term budgets.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Wall Street Futures Steady as Investors Await Economic Data
- Tech Stock Decline: Concerns over AI have led to a decline in tech stocks over the past week, putting pressure on the market as investors await crucial economic data and hints from the Federal Reserve regarding potential rate cuts.
- Dow Jones Performance: The Dow Jones closed above 50,000 points for the first time on Friday, posting significant weekly gains, indicating a rotation of funds into other sectors and boosting investor confidence.
- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
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- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
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- Market Overreaction: Nvidia CEO Jensen Huang argues that the sell-off in software stocks due to the introduction of AI tools is irrational, as these tools are designed to work alongside existing software rather than replace it, indicating a lack of rationality in the market's pessimism towards the software industry.
- Microsoft's Strong Performance: Microsoft has seen a 160% increase in paid users for its generative AI copilots in products like Microsoft 365, and despite a 27% drop from its high, its adjusted earnings grew by 24% in the last quarter, showcasing the company's robust performance in the AI sector.
- AppLovin's Rapid Growth: AppLovin's Axon machine learning engine provides a competitive edge in its ad tech software, and although its stock is down 52%, its earnings surged by 96% in the last quarter, indicating strong potential in the advertising technology space.
- HubSpot's Innovative Leadership: HubSpot has become the first CRM vendor to integrate its platform with three leading generative AI tools, and despite a 73% decline in stock price, its adjusted earnings increased by 22%, demonstrating its ongoing innovation capabilities in customer relationship management.
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