Baird analyst William Power downgraded Datadog Inc (NASDAQ: DDOG) from Outperform to Neutral and lowered the price target from $100 to $84.
While there are still multiple long-term positives, Power's industry conversations suggest optimization headwinds are likely to continue into next year.
In addition, the analyst said that consensus growth expectations for 2024 are too high. While there have been growing concerns, he expects that to remain an overhang.
Hyperscaler comments mixed, the analyst notes. Amazon.Com Inc (NASDAQ: AMZN) AWS growth held flat sequentially, though comments suggested slowing optimization activity and growing generative AI traction. Microsoft Corp (NASDAQ: MSFT) Azure growth beat ...