Datadog skids even as BofA starts at buy, sees 35% upside
Warchi


Datadog (NASDAQ:DDOG) shares fell sharply on Thursday, even as investment firm Bank of America started coverage on the software company with a positive outlook.
Analyst Koji Ikeda initiated coverage with a buy rating and a $135 price target, implying some 35% upside from current levels, noting that the "best-of-breed" portfolio has helped it drive a quality user experience.

And with the observability software market estimated to be worth $53B, Datadog (DDOG) could get a significant portion of it.
"In our view, Datadogâs platform is positioned to take share of a large $53B observability [total addressable market] because it delivers enterprise-class observability tools through a low-friction adoption motion that drives fast time to value and good [return on investment] that can be used by enterprises, mid-markets, and SMBs," Ikeda wrote in a note.
Datadog (DDOG) shares lost more than 9% to $95.18 in early trading on Thursday.
Last month, Datadog (DDOG) said it had expanded monitoring for Microsoft (MSFT) Azure and SQL database platforms.