DataDog, a software 'unicorn', slumps 4% despite Wells Fargo's upbeat view
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Network monitoring and security technology company DataDog (NASDAQ:DDOG) fell by almost 4% Tuesday even as Wells Fargo analyst Andrew Nowinski gave high marks to the company with a new overweight rating.
Prior to the start of trading, Nowinski started coverage of DataDog (DDOG) saying that the company stands to benefit from factors such as a growing total addressable market and pricing and product advantages over its competitors. Nowinski called DataDog (DDOG) "a unicorn in software," and that it is one of the few company's in the security software market that is growing sales by 50% or more annually.
Nowinski said that DataDog's (DDOG) approach to cloud-based security software should "lead to market share gains" and "could enable growth to accelerate."
In addition to setting an overweight rating on DataDog's (DDOG), Nowinski also put a $120-a-share price target on the company's shares.
However, DataDog's (DDOG) stock hit a 52-week-low of $80.45 a share on Tuesday, and all analysts shared Nowinski's upbeat view of DataDog (DDOG).
On Monday, Jefferies analyst Brent Thill listed DataDog (DDOG) among the software companies most at risk to broader economic factors such as rising inflation and interest rates.