Why Datadog Stock Jumped Today
Shares of Datadog (NASDAQ: DDOG) jumped today, up by 6% as of 12:45 p.m. EST, after a Wall Street analyst initiated coverage on the company. Truist Securities has started Datadog stock with a buy rating and assigned a price target of $120, which represents 21% upside from yesterday's close.
Analyst Joel Fishbein acknowledges that Datadog is currently trading at lofty valuation multiples but believes that the company's strong growth and leadership in the growing observability market justifies the premium. Revenue jumped 61% in the third quarter, and sales are forecast to increase by 62% for the full-year 2020.
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Source Fool.com
