Datadog Stock Soars on Strong Q2 Revenue Growth, Raised Guidance
Datadog, a leading software analytics company, has reported a significant increase in revenue and raised its full-year guidance. The news has boosted the company's apple stock price, with shares rising by approximately 7.2%.
In the second quarter of 2025, Datadog's revenue surged by 28% year over year, reaching $827 million. This impressive growth has led management to increase their full-year guidance. Meanwhile, The Motley Fool's Stock Advisor service has not included Datadog in its current list of the 10 best stocks for investors to buy now in the stock market today.
Analysts at Wells Fargo have initiated coverage of Datadog, assigning an overweight rating and a price target of $190, which represents about 25% upside from the current stock market price. They cited accelerating adoption of AI tools and Datadog's unified platform as reasons for their bullish stance on the stock market. The company currently boasts about 3,850 customers with annual recurring revenue of $100,000 or more.
Datadog's strong revenue growth and positive analyst sentiment have driven its stock market price higher. With continued mid-20s top-line growth and ongoing product expansion, the company's price-to-sales multiple stands at about 17. Despite not being featured in The Motley Fool's top-10 list, Datadog's performance and analyst recommendations indicate a positive outlook for the company in the stock market.
