Top 10 AI News Wall Street is Paying Attention To

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) operates a cloud-based monitoring and analytics platform, allowing companies to run applications and services smoothly. The company delivered impressive fourth quarter and full year 2024 results characterized by a 25% year-over-year revenue increase to $738 million. The growth was driven by strong demand for the company’s AI-powered observability solutions and the adoption of its multipurpose offerings.

On the other hand, analysts at Wolfe Research downgraded the stock to Peer Perform from Outperform on February 18, on Datadog, Inc. (NASDAQ:DDOG), providing a disappointing 2025 growth guidance. The research firm also cited competitive pressures and margin concerns. The analysts remain wary of large customers cutting back on software spending, which could hurt Datadog’s core business.

Amid these concerns, Datadog is increasingly positioning itself to capitalize on the rapid advancement of AI technologies and the continued shift toward cloud computing. It is increasingly integrating AI capabilities into its product offerings while coming up with observability solutions tailored for AI workloads.