Datadog shares climb on 'relative resiliency' in face of recession
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Datadog (NASDAQ:DDOG) shares rose more than 4% in pre-market trading Wednesday as Oppenheimer analyst Ittai Kidron raised his rating on the network monitoring tech company due to its position in the face of corporate fiscal belt tightening.
Prior to the start of trading, Kidron lifted his rating on Datadog to outperform from perform, and set a $105-a-share target price on the company's stock. Kidron said that Datadog isn't "recession proof", but it is in a strong position to weather the economic uncertainties that are expected to come in 2023.
Datadog (DDOG) specializes in cloud-based software used to monitor network infrastructure and users, applications and databases. Kidron said Datadog (DDOG) has also expanded into network security, which gives the consistency "relative resiliency in times of [business] spending constraints."
Kidron also said Datadog (DDOG) provides technology that is considered "a high priority" by companies that are focusing more on "eliminating downtime, identifying [and] resolving performance issues and ensuring high-quality customer experiences."
Wall Street analysts and Seeking Alpha authors both have consensus buy ratings on Datadog's (DDOG) stock. However, Seeking Alpha's Quant System, which historically outperforms the stock market gives the company's shares a hold rating.