Citi says buy the dip on Datadog after strong results

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โดย Seeking Alpha·US·Read original
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Citi reiterated a Buy rating on Datadog and raised its price target to $305 from $300, advising investors to buy the dip following better-than-expected quarterly results and guidance. Analyst Fatima Boolani highlighted that revenue accelerated 36% year-over-year on broad-based strength, with AI-native customers growing roughly 97% and non-AI-native customers growing roughly 28%, validating structurally surging observability demand. Boolani noted that while quarter-over-quarter compression in remaining performance obligations and a usage reduction at a mega customer may cause some concern, management's prudent guidance and confidence in minimal do-it-yourself or insourcing risk support sustained mid-30% growth optionality. The analyst emphasized that Datadog is cementing strategic value for both consequential AI companies and traditional enterprises' AI adoption and modernization initiatives, justifying a premium valuation.

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