Datadog Stock ( NASDAQ:DDOG )
After an investment firm, BTIG downgraded the cloud software business , Datadog ( NASDAQ:DDOG ) stock dropped roughly 3% in premarket trade on Friday. The firm cited “weakening” checks as the reason for the downgrade.
Datadog stock had their recommendation changed from buy to neutral by analyst Gray Powell, who said that customers minimizing cloud spending using monitoring tools are anticipated to impact the company’s revenue growth moving ahead.
According to Powell, clients that are searching for methods to optimize their cloud systems and hold down on moving to new technologies see infrastructure monitors as “one of the most at-risk components.” Infrastructure monitors account for roughly half of Datadog’s ( NASDAQ:DDOG ) revenue.
Powell addressed a statement to customers in which he said, “In addition, we received some concerns about [Datadog’s] customer base, which skews more toward small and medium-sized enterprises, being in danger in the current climate.”
Powell also said that it would be more challenging for Datadog ( NASDAQ:DDOG ) to acquire new clients this year and achieve momentum in major industrial businesses.
As a consequence of this, Powell reduced his revenue projections for 2023 and 2024. His new projection for revenue for this year is $2.092 billion, which is lower than his prior perspective of $2.116 billion. His new projection for revenue for the next year is $2.74 billion, which is lower than his previous estim...
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