Key Takeaways for Datadog Stock as of September 2026
- Same-Day Reversal: Datadog stock fell 7% Wednesday and rallied 5% after hours.
- No News, Just Selling: Datadog stock dropped alongside a 3% slide in the software ETF IGV while the Nasdaq gained 0.2%, confirming traders rotated out of high-multiple names rather than reacting to fresh Datadog news.
- Bulls Still in Control: TIKR tracks 47 analysts on Datadog stock, split 31 buys, 10 outperforms, 4 holds, 1 underperform and 1 sell, with a $285 mean target sitting 36% above Wednesday’s close.
- Model Sees $746: TIKR’s mid-case valuation puts Datadog stock at $746 by December 2030, a 257% total return worth 34% annualized from today’s price.
Why Datadog Stock Fell 7% Before Snowflake Flipped the Script
Datadog (DDOG) stock fell 7% on Wednesday, September 2, sliding from Tuesday’s $224 close to $209, in a broad rotation out of high-multiple software names that had nothing to do with Datadog itself. Nothing on the calendar explained it: no earnings, no guidance cut landed that morning.
The cleaner explanation pointed to a rotation out of high-multiple software stocks rather than anything specific to Datadog. The iShares Expanded Tech-Software ETF, ticker IGV, dropped 3% the same day while the Nasdaq 100 gained 0.2%, and Snowflake, reporting its own earnings that evening, fell 4%. Datadog stock’s 7% slide outpaced that drop despite having nothing scheduled at all, which was itself the tell. Shares had gained 65% year to date through Tuesday, leaving traders sitting on profits they were happy to trim into strength.
That selling landed on top of a month Datadog stock had already spent under pressure. The company reported second quarter results on August 6 that beat on revenue, up 36% year over year to $1.12 billion, and raised full-year guidance, yet the stock still fell 19% that day. CEO Olivier Pomel told analysts on the call that “we did see a reduction in usage, and we took the liberty to fully derisk the guidance for the rest of the year with respect to that customer,” addressing Datadog’s largest account cutting spend even as it renewed its contract. That one disclosure, not the headline numbers, has driven roughly a fifth of the stock’s value away since late June.
Wednesday’s drop piled onto that overhang without adding a single new fact about Datadog’s business, which made the reversal that followed within hours all the more telling.
Snowflake’s Beat Turns Datadog Stock Higher After Hours
Snowflake reported its own second quarter after Wednesday’s close, and the print undercut the very rotation that had just hit Datadog stock. Revenue came in at $1.55 billion, with product revenue up 37% year over year, beating estimates on both the top and bottom lines. Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion, and Snowflake shares jumped more than 22% in after-hours trading, extending to a premarket gain topping 24% by Thursday morning.
Datadog stock followed, rising almost 5% after hours to $219 and adding to that move before Thursday’s open. Datadog and Snowflake trade in close sympathy as peers selling into the same enterprise AI buildout, so a print showing accelerating demand for one read as evidence the other’s customer-concentration scare was a single-account problem, not a market-wide slowdown. Datadog also trades at 73 times forward earnings against Snowflake’s 122 times, which makes a sympathy rerating a cheaper bet to make than the multiple Snowflake itself now carries.
Wall Street’s $285 Target Still Towers Over Datadog Stock
TIKR tracks 47 analysts on Datadog stock as of September 2, and the split still leans overwhelmingly bullish: 31 buys, 10 outperforms, 4 holds, 1 underperform and 1 sell. The mean target sits at $285, 36% above Wednesday’s $209 close.
That gap has not been closing as the stock fell. The mean target stood at $139 back in June 2025 when Datadog traded near $134, a modest 4% premium. By June 2026, the stock had rocketed to $260, actually trading above the Street’s own $242 mean target for the first time in this stretch. Analysts kept raising numbers through the summer rather than trimming them after the AI-customer disclosure, pushing the mean target to $285 even as the stock gave back a fifth of its value. Coverage held at 46 to 47 analysts the entire time, with no exodus of names dropping the stock.
Analysts writing higher targets into a falling stock is not a neutral signal. It reads as the Street treating the pullback as a sentiment problem rather than a reason to cut estimates.
TIKR Values Datadog Stock at $746, Pricing In a Multiyear Reversal
TIKR’s mid-case model values Datadog stock at $746 by December 2030, implying a 257% total return from the current $209 price, or 34% annualized over roughly four years.
A return that size puts Datadog’s model among TIKR’s more aggressive large-cap software calls, the kind reserved for a business the model treats as temporarily mispriced rather than structurally slowing.
That framing lines up with what Wednesday actually showed: a sector rotation with no Datadog-specific news landing on top of a single customer’s usage cut that management had already priced into guidance, not a break in the growth engine behind 36% revenue growth last quarter. The Street’s $285 target sitting 36% above the close, rather than chasing the stock lower, backs that same read.
See the full return path behind Datadog’s $746 target and 257% projected return on TIKR for free →
Should You Invest in Datadog, Inc.?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
