Shares of the apple company Datadog rose after the recommendation

Datadog Inc. ( DDOG), a software company operating in the cybersecurity and enterprise software industry, received a positive recommendation from Bernstein analysts. The news supported the growth of the company’s quotes, and at the auction on July 21, the DDOG stock was worth $101.23. On Wednesday, July 20, Bernstein analysts published an “above market” recommendation for Datadog shares and raised the target price to $172. 

According to experts, the company has growth potential, and its revenue forecast for the coming quarters may be conservative. In particular, Bernstein notes that Datadog copes well with the target market’s expansion, and growing digital threats can provide stable demand for its solutions. In addition, analysts called Datadog’s forecast for the current year conservative. The company expects revenue growth of 55% for the whole of 2022. Bernstein forecasts revenue growth of 70% year-on-year. 

Datadog offers a variety of tools to improve the efficiency of the corporate IT infrastructure, for example, applications for monitoring network communications and detecting cyber threats. The advantage of the company’s developments is that they allow detecting and eliminating potential problems early, simplifying the tasks of operating complex IT systems and ensuring their smooth operation. 

Since the beginning of the year, Datadog quotes have lost more than 40% due to investors’ cautious attitude toward the shares of technology companies against rising inflation and the expected recession. However, Datadog has a reliable portfolio of solutions that can be in demand in economic conditions. In addition, the company cooperates with Microsoft Azure, Amazon Web Services, and Google Cloud Platform, which accounted for 64% of the cloud computing market at the end of 2021.