We recently published Top 10 Strong Buy AI Stocks to Invest In. Datadog, Inc. (NASDAQ:DDOG) is one of the best consumer cyclical stocks.
Datadog, Inc. (NASDAQ:DDOG) is a software-as-a-service (SaaS) company that enables software companies to monitor their cloud infrastructure and merge monitoring of different microservices into a single platform. The company has a presence in the AI ​​industry through its machine learning-powered monitoring solutions and its AI engine, Watchdog.
The start of November was a busy month for Datadog, Inc. (NASDAQ:DDOG) when it came to analyst coverage. Following the company’s third-quarter earnings report, RBC analysts Cantor Fitzgerald and TD Cowen raised their price targets on the company’s stock. Among them, RBC Capital maintained its Outperform rating on Datadog, Inc. (NASDAQ:DDOG) shares and raised the price target to $216 from $182. The research firm noted that Datadog, Inc.’s (NASDAQ:DDOG) latest quarter had demonstrated non-AI growth and added that OpenAI’s renewal of its contract with the company also removed some of the uncertainty.
Datadog, Inc. (NASDAQ:DDOG) stock has seen quite a bit of turmoil over the past month. They soared 23% after the company reported $885.7 million in third-quarter revenue and $0.55 in adjusted earnings to beat analyst estimates for both metrics. Datadog, Inc. (NASDAQ:DDOG) also benefited from its midpoint earnings forecast of $914 million in the fourth quarter, which beat estimates of $887 million.
On the hedge fund front, 72 hedge funds covered by Insider Monkey’s database had disclosed that they held Datadog, Inc. (NASDAQ:DDOG) in their third-quarter 13F filings. One notable holding was Renaissance Technologies, whose position marked an increase of 89% from the number of shares it owned in the previous quarter.
During the third quarter earnings call, when asked by Morgan Stanley’s Sanjit Singh about business trends in the non-AI market, Datadog, Inc. (NASDAQ:DDOG) CEO Olivier Pomel responded:
“Yes. I would say there are three parts. One part is that the demand environment is not positive overall. I don’t know if we see a massive acceleration of migration to the cloud, but at least the environment is not pushing the other way. We know what happens from time to time. So that is point number one. Point number two is that we have been increasing sales capacity quite a bit and we have created new marketing movements to go after the type of customers that they were not getting before. As we have made quite a few investments in the last few years and we see that They are starting to bear fruit. As I also said, we feel good about the fourth quarter in terms of sales pipeline, so it is still too early to say.