Wolfe upgrades Datadog, says engineers cannot live without

Wolfe Research analyst Alex Zukin last night upgraded Datadog to Outperform from Peer Perform with a $140 price target ahead of the company’s Dash conference on August 2 and Q2 earnings August 8. Even in a “cost-cutting obsessed macro environment, engineers simply cannot live without their Datadog,” the analyst tells investors in a research note. The firm’s checks suggest Datadog’s optimization headwinds are abating, competition is easing, go-to-market execution has improved, and generative artificial intelligence tailwinds could make the company the fastest growing software name.