This software has nearly doubled for the year. Bernstein sees even more upside
Datadog is poised for even more gains as its “Born in AI” customer base continues to drive demand, according to Bernstein. The investment firm upgraded the stock to outperform from market perform. It also raised its price target on shares to $350 from $237, suggesting roughly 42% upside from Friday’s close. “Our alt data signals suggest enterprise token consumption appears to have grown at least 50% [quarter over quarter] among the largest AI Labs (and perhaps even faster in their smaller ‘Born in AI’ customers),” analyst Peter Weed said Monday in a note to clients. “Add to this the consumer AI Agent releases (e.g., Muse, Dots) and our published longer term view seems likely to be well-below reality.” CRWV YTD mountain CRWV in 2026 “As consumer AI agents ramp engagement this could make the traditional Datadog customers’ observability requirements rise to meet that increased demand,” the analyst wrote. The investment firm’s call falls in line with consensus on the Street. Of the 49 analysts covering Datadog, 46 have a buy or strong buy rating on the stock, LSEG data show. “We anticipate the largest concerns to the downside will be competitive, particularly relative to open source/in house replacement — in the past, when customers get to sufficient scale there had been pressure to move in-house,” said Weed. “We are less concerned about this in the hyper-growth AI Labs in the near term, as they are unlikely to have the capacity to focus on this, but as they mature, it may become a longer term problem.” Shares have risen about 82% year to date through Friday’s close.
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