Mizuho reiterates Datadog stock rating on AI growth, product strength

Mizuho has reaffirmed its Outperform rating and $300 price target on Datadog stock (NASDAQ:DDOG). Since trading at $255.46 a year ago, the company's shares have surged over 100%, with analyst consensus favoring a Buy rating and targets ranging from $158 to $330. Mizuho's recent meetings with Datadog's executives, including SVP of Investor Relations and Strategic Finance Yuka Broderick, SVP of Finance & Planning AJ Ljubich, and Investor Relations Manager Alec Di Ruzza, underscored the firm's confidence in Datadog's competitive standing.

The company is thriving due to a surge in AI customers scaling operations and broader modernization trends, despite some worries about AI-native concentration. Mizuho highlights Datadog's leading position in observability, citing a strong gross profit margin of 79.5% and 31.5% revenue growth. ProAnalysis data suggests the stock is overvalued compared to its estimated Fair Value.

Despite a decline in usage from Datadog's largest customer starting in the third quarter, the company reported strong Q2 2026 results, exceeding Wall Street expectations with adjusted earnings of $0.65 per share and revenue of $1.12 billion - a 12.07% increase in EPS and 3.7% above estimates. Nonetheless, investor concerns persist, and various analyst firms have adjusted their stock ratings accordingly.