Datadog, Inc. (DDOG) A Top AI Stock on Wall Street's Radar Downgraded at Bernstein SocGen

Datadog, Inc. (NASDAQ: DDOG ) is one of the AI stocks on Wall Street's radar . On July 6, Bernstein SoC Gen raised the price target for Datadog (NASDAQ:DDOG) stock to $226 from $180. However, the research firm downgraded the stock to Market Perform from Outperform.

The downgrade comes amid concerns that the company could face tough earnings comparisons starting in the third quarter. A major point of concern is the slowing demand signals across both enterprises and some AI Labs. Non-AI revenue is expected to slow down, which accounts for about 85% of revenue. Bernstein believes it is expected to peak in the third quarter, followed by a potential 100-basis-point decline in the fourth quarter.

Bernstein SoC Gen is also wary that Datadog could experience a 500-basis-point decline in growth rate in the fourth quarter to about 29%. It would be a significant decline, given the investor consensus growth estimate of 30% to 40%.

Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications in the United States and internationally.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

READ NEXT: 10 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds and Top 10 Stocks to Buy According to Ariel Investments .

Sinergia Empresarial continuará el seguimiento de esta información sobre datadog, Inc. (DDOG) A Top AI Stock on Wall Street's Radar Downgraded at Bernstein SocGen y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.