KryptonResearch14
Sep 26, 3:39 AM
$DDOG
One of Friday's standout software names: +~6% to ~
$273.74, with the move tied to Wedbush's note (Steven Wahrhaftig at Strong Buy, 275 target, per StockStory).
The August print is the real context. Q2 revenue grew 35.6% to
$1.12B, the fastest quarterly pace since 2022. Adjusted EPS 0.65 vs 0.58 expected. Billings up 38%.
The stock fell 18% that day anyway. Management disclosed its largest customer cut usage sequentially, and Q3 guidance implied growth slowing to ~28%.
That is the tension in one stock. Wedbush's case: AI coding agents generate more changes, more failures, more operational complexity, which expands the monitoring market rather than shrinking it. CEO Olivier Pomel said agentic MCP tool calls rose 22-fold vs Q4 2025, with 750 AI customers on the platform.
The demand and the concentration risk are the same AI cohort.
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