Yet Another Stock Downgrade For Datadog - Analyst Sees Optimization Challenges Amis High Growth Expectations
Portfolio Pulse from Anusuya Lahiri
Baird analyst William Power downgraded Datadog Inc (DDOG) from Outperform to Neutral and lowered the price target from $100 to $84. Power cited optimization challenges and overly high growth expectations for 2024 as reasons for the downgrade. He also noted mixed comments from hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG, GOOGL). DDOG shares traded lower by 1.40% at $80.54.
October 30, 2023 | 6:29 pm
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POSITIVE IMPACT
Microsoft's Azure growth beat expectations, with generative AI strength helping offset ongoing optimization headwinds.
The analyst's positive comments about Microsoft's Azure growth and generative AI strength could potentially boost investor sentiment and impact the stock's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Amazon's AWS growth held flat sequentially, with comments suggesting slowing optimization activity.
The analyst's comments about Amazon's AWS growth being flat and slowing optimization activity could potentially impact investor sentiment, but it's not clear how significant this impact would be.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Datadog's stock was downgraded by Baird analyst due to optimization challenges and high growth expectations.
The downgrade by Baird analyst William Power is based on perceived optimization challenges and overly high growth expectations for 2024. This negative sentiment could potentially impact the stock's performance in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Alphabet's Google Cloud growth decelerated, noting lasting optimization impacts.
The analyst's comments about Alphabet's Google Cloud growth decelerating and lasting optimization impacts could potentially impact investor sentiment and the stock's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Alphabet's Google Cloud growth decelerated, noting lasting optimization impacts.
The analyst's comments about Alphabet's Google Cloud growth decelerating and lasting optimization impacts could potentially impact investor sentiment and the stock's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50