Datadog (DDOG) Stock Price Prediction: Oversold, but the Q3 beat is colliding with cautious target cuts

Datadog (DDOG) stock fell 17% in a week after reporting 35% Q3 revenue growth to $1.2B but guiding Q4 revenue to $1.19-1.2B, roughly flat. The decline was driven by its largest AI customer reducing usage, though growth outside this customer is accelerating. Cloudflare (NET) reported strong Q3 results and a rising Q4 outlook, suggesting the slowdown may be isolated. Datadog trades at 60x forward earnings, below its usual multiple.

Datadog (DDOG) stock fell 17% to $179 after reporting 35% Q3 revenue growth but flat Q4 guidance, citing a large AI customer paying only its contract minimum. The company now has 850 AI customers and trades at 11.6x forward revenue, compared to Palo Alto Networks' (PANW) 18x.

Datadog (DDOG), an observability specialist with AI-focused products, saw its stock drop 40% from a record high amid broader AI sector sentiment. Despite this, Wall Street analysts mostly rate it a buy, with an average price target of $274.16, implying 41% upside. The company reported Q3 2026 revenue of $1.2B, up 35% YoY, and increased its full-year revenue guidance to $4.52B. However, its high P/S ratio of 16.1 raises valuation concerns.

Datadog (DDOG) reported 35% revenue growth to $1.20 billion in Q3, but expects flat Q4 revenue due to reduced spending by a large AI customer. Morgan Stanley cut its price target to $270 from $300, citing volatility from AI-native customers. The company's forecast assumes the largest customer will pay the minimum contract amount, impacting growth estimates.

Datadog (DDOG) reported Q3 2026 revenues of $1.197B, up 35% YoY, beating estimates. Infrastructure Monitoring ARR exceeded $2B, growing in the mid-30s%. GPU monitoring and Cloud Cost Management saw significant traction. DDOG expects Q4 revenues of $1.19B-$1.20B and full-year 2026 revenues of $4.515B-$4.525B. The company has a Zacks Rank #3 (Hold).

Datadog (DDOG) stock dropped 34% in a week due to a software sector selloff and a flat Q4 outlook. The company reported Q3 revenue of $1.2B, up 35%, and adjusted EPS of $0.81, beating estimates. However, its Q4 guidance was roughly flat, partly due to a large AI customer paying only its minimum commitment. Analysts remain divided on the stock's outlook.