Datadog price target lowered to $125 from $140 at Stifel

Stifel analyst Brad Reback lowered the firm’s price target on Datadog (DDOG) to $125 from $140 and keeps a Hold rating on the shares following Q4 results. Stifel noted that top-line guidance and operating margin view came in below expectations. The firm told investors in a research note that the decelerating core growth, generative AI optimization headwinds and compressing margins, coupled with a fairly full valuation, creates a less than favorable risk-reward for the stock in the coming quarters.