Datadog initiated with an Outperform at Macquarie

Macquarie initiated coverage of Datadog (DDOG) with an Outperform rating and $200 price target Datadog has established the modern observability category with a unified product, expanding platform capabilities, multi-product adoption, and a healthy revenue model that is predominantly usage-based, the analyst tells investors in a research note. The firm likes the prospects for Datadog share gains in a growing observability market, driven by digital transformation, cloud migration, and GenAI spending, and sees revenue growth above the 20% range through FY27E accompanied by incremental margin expansion.