10 Important AI Announcements for Investors

6. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) provides a cloud-based platform that offers monitoring and security solutions for applications and infrastructure. The company leverages AI to improve performance analysis, improve security management, and streamline workflows across cloud environments.

Mizuho analyst Gregg Moskowitz upped his price target for Datadog (NASDAQ:DDOG) to $170, up from $155, while keeping an Outperform rating on the stock as part of his outlook for the software sector in 2025. This adjustment reflects the broader trend of increasing valuations for several companies, driven by higher comparison multiples. Moskowitz noted:

“DDOG remains a clear leader in the observability market, with multiple businesses at scale, and with potential tailwinds in the form of digital transformation, cloud migration, and GenAI.”

The firm expressed a more optimistic view than many regarding cloud adoption in the coming years, mentioning both existing on-premise customers and new clients as key drivers. This was part of its detailed 2025 software sector outlook.