Wedbush Has Negative Outlook for Datadog Q2 Earnings

Datadog, Inc. (NASDAQ:DDOG) – Investment analysts at Wedbush lowered their Q2 2025 earnings per share (EPS) estimates for shares of Datadog in a research report issued on Wednesday, May 7th. Wedbush analyst D. Ives now anticipates that the company will earn $0.04 per share for the quarter, down from their previous forecast of $0.07. Wedbush has a “Outperform” rating and a $140.00 price target on the stock. The consensus estimate for Datadog’s current full-year earnings is $0.34 per share. Wedbush also issued estimates for Datadog’s Q3 2025 earnings at $0.03 EPS, Q4 2025 earnings at $0.02 EPS, FY2025 earnings at $0.21 EPS, Q1 2026 earnings at $0.01 EPS, Q2 2026 earnings at $0.04 EPS, Q3 2026 earnings at $0.06 EPS, Q4 2026 earnings at $0.11 EPS and FY2026 earnings at $0.24 EPS.

Several other equities analysts also recently issued reports on DDOG. JMP Securities reissued a “market perform” rating on shares of Datadog in a research report on Friday, February 14th. Cantor Fitzgerald reissued an “overweight” rating and issued a $134.00 price objective on shares of Datadog in a report on Wednesday, May 7th. Wolfe Research downgraded Datadog from an “outperform” rating to a “peer perform” rating in a report on Tuesday, February 18th. Scotiabank set a $130.00 price target on shares of Datadog and gave the stock an “outperform” rating in a report on Wednesday. Finally, Macquarie reduced their price target on shares of Datadog from $175.00 to $140.00 and set an “outperform” rating for the company in a research report on Wednesday, May 7th. Seven investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $141.54.

Datadog Trading Down 1.2%

NASDAQ DDOG opened at $107.88 on Monday. Datadog has a 12-month low of $81.63 and a 12-month high of $170.08. The company has a fifty day simple moving average of $100.20 and a two-hundred day simple moving average of $125.85. The stock has a market cap of $36.98 billion, a P/E ratio of 211.53, a P/E/G ratio of 44.03 and a beta of 1.12.

Datadog (NASDAQ:DDOG) last posted its quarterly earnings data on Tuesday, May 6th. The company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.04. The firm had revenue of $761.55 million for the quarter, compared to the consensus estimate of $741.73 million. Datadog had a net margin of 6.85% and a return on equity of 8.28%. The company’s revenue for the quarter was up 24.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.44 earnings per share.

Institutional Investors Weigh In On Datadog

Several institutional investors have recently bought and sold shares of the company. OVERSEA CHINESE BANKING Corp Ltd lifted its position in shares of Datadog by 887.0% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 25,199 shares of the company’s stock valued at $25,000 after acquiring an additional 22,646 shares in the last quarter. Retirement Wealth Solutions LLC acquired a new position in Datadog in the 4th quarter valued at $30,000. Cornerstone Planning Group LLC lifted its holdings in Datadog by 96.9% in the 1st quarter. Cornerstone Planning Group LLC now owns 313 shares of the company’s stock valued at $30,000 after purchasing an additional 154 shares in the last quarter. Costello Asset Management INC acquired a new stake in Datadog during the 1st quarter worth $30,000. Finally, Avior Wealth Management LLC boosted its stake in Datadog by 55.9% during the 4th quarter. Avior Wealth Management LLC now owns 226 shares of the company’s stock worth $32,000 after purchasing an additional 81 shares during the last quarter. 78.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Datadog

In related news, CRO Sean Michael Walters sold 8,454 shares of Datadog stock in a transaction on Tuesday, March 11th. The shares were sold at an average price of $102.04, for a total value of $862,646.16. Following the sale, the executive now owns 185,871 shares of the company’s stock, valued at approximately $18,966,276.84. This trade represents a 4.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Olivier Pomel sold 107,365 shares of the company’s stock in a transaction on Monday, April 7th. The stock was sold at an average price of $87.33, for a total transaction of $9,376,185.45. Following the transaction, the chief executive officer now owns 563,598 shares of the company’s stock, valued at $49,219,013.34. This represents a 16.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 559,867 shares of company stock valued at $57,550,902. Company insiders own 11.78% of the company’s stock.

Datadog Company Profile

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.