Datadog downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Datadog (DDOG) to Equal Weight from Overweight with an unchanged price target of $143. While Datadog’s evolution from a system of alerting to system of action represents a “highly compelling” long-term opportunity, the potential for slower growth in the first half of 2025 makes the stock’s risk/reward more balanced until the artificial intelligence inference catalyst emerges, the analyst tells investors in a research note. The firm sees some modest risk to Datadog’s initial fiscal 2025 revenue growth outlook, which it says may come in slightly below consensus calling for 22% growth.