Why Datadog, Zscaler, and C3.ai Were Rallying Today

Shares of cloud-based software-as-a-service (SaaS) companies (NASDAQ: DDOG), Zscaler (NASDAQ: ZS), and C3.ai (NYSE: AI) were in rally mode on Tuesday, up 5.3%, 4.8%, and 6%, respectively, as of 12:50 p.m. ET.

Both Datadog and Zscaler were upgraded today by Wall Street analysts, and the two separate upgrades contained optimism not only for the specific companies, but also for the return of enterprise spending in general. That seemed to light a fire under their enterprise-software peers as well, including the controversial C3.ai.

On Tuesday, Wolfe Research upgraded its rating on Datadog from "perform" to "outperform," while raising its price target to $140 versus a $111 share price at the start of the day.

Source Fool.com