Datadog Shares Fall on Missed Full-Year EPS Guidance Despite Q4 Revenue Beat; TD Cowen Cuts Target
Summary
Datadog reported Q4 revenue of $953.2 million, a 29.2% year-over-year increase, which surpassed sales and billings expectations. The company also added 250 new enterprise customers. However, the crucial full-year EPS guidance missed analyst estimates, causing shares to fall 2.8%. This mixed report follows the company's recent 10-K, which noted strong revenue growth but also a shift to operating loss. While TD Cowen maintained its 'Buy' rating, it lowered its price target to $190 from $215, reflecting the updated outlook. Traders will now focus on the company's ability to execute on a newly disclosed eight-figure deal with a major AI model provider, which is expected to ramp up in 2026 and could be a significant future catalyst.
At the time of this announcement, DDOG was trading at $121.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $42.7B. The 52-week trading range was $87.70 to $201.69. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.