“While most of the announcements are evolutionary/movement to close adjacencies, we think the larger theme is Datadog continuing its momentum in consolidating spending for organizations with key features for observing, securing and acting upon the unique data/telemetry that Datadog can piece together in a streamlined manner,” said Raymond James analysts Adam Tindle and Mark Cash, in a note.
Datadog revealed LLM Observability, which allows users to monitor, troubleshoot and secure generative AI applications.
The New York City-based company also announced the unification of OpenTelemetry and Datadog with the embedded OTel Collector, “enabling users to take advantage of Datadog’s industry-leading observability solutions while accessing the complete capabilities of the OTel Collector.”
Datadog also unveiled Log Workspaces, Datadog Live Debugging, Datadog Product Analytics as well as a slate of new security abilities for the cloud and applications.
“On the product front, there was significant positive commentary on Datadog’s Security suite, as partners highlighted several examples where Datadog’s solutions displaced smaller incumbent vendors, and even won in head-to-head greenfield deals against CrowdStrike (CRWD) and Wiz,” noted analysts at Stifel.
Meanwhile, Needham maintained a Buy rating on the stock and price target of $165.
“We see Datadog as continuing to use R&D to deepen its competitive moat as a consolidator of spend,” said Needham analysts Mike Cikos and Matthew Calitri.
Datadog has a Buy rating from both Seeking Alpha and Wall Street analysts. However, it has a Hold rating from Seeking Alpha’s Quant system, which routinely beats the market.