Why Datadog Stock Is Sinking Today
(NASDAQ: DDOG) stock is losing ground in Wednesday's trading. The company's share price was down 4.9% as of 2:30 p.m. ET. At the same point in the day's trading, the S 500 index was down 0.9%, and the Nasdaq Composite index had declined 1.2%.
After the market closed yesterday, Stifel published new coverage on Datadog. The firm downgraded its rating on the stock from buy to hold and cut its one-year price target from $165 per share to $140 per share. As of this writing, Stifel's new target implies downside of roughly 3.5%.
Datadog has been serving up encouraging sales growth, with revenue climbing 26% year over year to reach $690 million in the third quarter. But Stifel's analysts think that momentum is poised to slow in the near term. The firm also expects that the software specialist will soon be facing some new margin pressures.
Source Fool.com
