Why DataDog Stock Dropped Today

Shares of Datadog (NASDAQ: DDOG) fell as much as 5.7% early Monday, then settled to trade down 2.5% as of 11:55 a.m. EDT, after a noted Wall Street analyst downgraded the data analytics platform provider.

In a note to clients early Monday morning, Bank of America analyst Koji Ikeda downgraded shares of Datadog from buy to neutral and lowered his firm's per-share price target from $123 to $105. The cloud computing stock is currently trading around $91 per share as of this writing.

Ikeda rationalized that he views Datadog's "upside as likely capped as conservative demand, competitive threats, and meaningful AI tailwinds likely come in second half 2024, constraining the growth growth profile."

Source Fool.com