Key points:
- Datadog is well positioned in the cloud observability market, attracting analyst attention
- Goldman Sachs added the company to their conviction list with a $250 price target
- Datadog has an impressive moat, with a variety of other non-core products
- DDOG stock has risen nearly 400% since the company's 2019 public debut
Datadog (NASDAQ: DDOG), an industry leader in the cloud observability market, has been under particular focus as of late. Well surrounded, Datadog seeks to capitalize on the disruptive tech upheaval that is leading companies to decentralize, utilizing cloud-based platforms and products to streamline efficiency and data storage. Datadog is primarily an observability service, providing monitoring of services and databases through a SaaS analytics platform.Â
The cloud market might be slowly heating up, but Goldman Sachs pays particular attention to Datadog’s position in the overall observability market, where Datadog is leading the pace. The firm added the company to their Conviction List and reiterated a Buy rating on DDOG shares, with $250 as a price target.
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Analyst Kash Rangan also alluded to the company's attractive positioning when it comes to Datadog’s other products, arguing that the security sector alone could expand the company’s total addressable market by $20B in the long term.Â
It isn’t just Goldman Sachs that has noticed the expanding SaaS company. Earlier this month, price targets were raised at KeyBlanc, Citi, RBC Capital, and Truist following a strong earnings report from Datadog and an equally important outlook raise. Financially, stock appears healthy.
DDOG has risen nearly 400% since the company’s public debut in late 2019, and despite a blip in January, DDOG is up 58% year-on-year. The company looks like an attractive play on the emerging cloud market – there is little reason to believe that Datadog won’t continue to dominate its respective space.