- Datadog's (DDOG, Financial) shares dropped 3% premarket after a downgrade from Guggenheim.
- OpenAI's shift to in-house log management solutions poses revenue risks for Datadog.
- Despite this, analysts still foresee potential upside, with a GF Value estimate suggesting a 20.58% rise.
Datadog Inc. (NASDAQ: DDOG) experienced a notable premarket decline of approximately 3% following Guggenheim's decision to downgrade the stock from "Neutral" to "Sell." This move is primarily driven by potential revenue challenges as OpenAI, a significant client, appears to be transitioning to internal solutions for log management. Guggenheim has set a price target of $105 on the stock.
Wall Street Analysts Forecast
An evaluation from 39 analysts sets the average one-year price target for Datadog at $140.93, with projections ranging from a high of $200.00 to a low of $105.00. This suggests a downside of 7.54% from the current trading price of $152.41. For further insights, please visit the Datadog Inc (DDOG, Financial) Forecast page.
Despite the downgrade, Datadog maintains an "Outperform" status according to 44 brokerage firms, with an average brokerage recommendation of 2.0. This rating falls on a scale where 1 equates to a "Strong Buy" and 5 signifies "Sell."
GuruFocus Insights
According to GuruFocus estimates, the projected GF Value for Datadog in the coming year stands at $183.78. This indicates a potential upside of 20.58% from its current price of $152.41. The GF Value is derived from historical trading multiples, past business growth, and future performance expectations. For a more comprehensive analysis, visit the Datadog Inc (DDOG, Financial) Summary page.
