Datadog stock slips as DA Davidson starts coverage with neutral rating
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Datadog (NASDAQ:DDOG) shares slipped fractionally in premarket trading on Thursday as investment firm D.A. Davidson started coverage on the cloud software company.
Analyst Gil Luria slapped a neutral rating and per-share price target of $70 on Datadog (DDOG), noting that while the long-term bull case is "both clear and well understood" given that it is tied to the hyperscalers, short-term caution is abound amid economic uncertainty.

"We believe the significant deceleration of hyperscaler growth provides a leading indicator of Datadog's deceleration, as customers have shifted from emergency shift-to-cloud mode to 'I can't possibly grow my spend this much' mode," Luria wrote in an investor note.
Luria added this deceleration is likely accounted for in Datadog's (DDOG) guidance, but it's hard to see "significant upside to the multiple until growth re-accelerates."
Earlier this month, Goldman Sachs listed Datadog (DDOG) as one of several stocks that should do well in either recession scenario.