Needham raises Datadog stock price target to $300 on strong growth

Needham raised its price target on Datadog stock to $300 from $260, maintaining a Buy rating, citing strong quarterly growth and accelerating revenue. Datadog's revenue grew 36% year-over-year, beating consensus by $42.9 million. AI customers expanded in number and scale, while non-AI customers accelerated to high-20% growth. Management reduced guidance assumptions for its largest AI customer to minimum commitments. The company reported second-quarter earnings of $0.65 per share and revenue of $1.121 billion, its fifth straight quarter of acceleration. Macquarie also raised its target to $260. Datadog's stock trades at a price-to-earnings ratio of 538.