Monitoring and security platform for cloud applications Datadog, Inc. (NASDAQ: DDOG) recently revealed that it has partnered with Microsoft (NASDAQ: MSFT) for the Azure Cloud Adoption Framework.
Following the news, shares of the company rose 1.5% to close at $151.90 in Wednesday’s extended trading session.
With this partnership, Azure customers can make use of Datadog’s monitoring and security capabilities to accelerate their adoption of the cloud safely.
Datadog already has a presence in the Azure portal and provides a range of services including legacy systems monitoring, UX monitoring and stack layer visibility.
Management Commentary
The Senior Vice-President of Product and Community at Datadog, Ilan Rabinovitch, said, “Datadog integrates with the full suite of Azure services and provides the critical monitoring and security capabilities that organizations need in order to successfully migrate to the cloud quickly. As a Cloud Adoption Framework partner, Azure customers know they can rely on Datadog to deliver deep visibility into their cloud, on-premises and hybrid environments that will help them move faster.”
Stock Rating
Recently, Truist Financial analyst Joel Fishbein reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $225 to $200, which implies upside potential of 33.6% from current levels.
According to the analyst, the adoption of cloud migration across enterprises is likely to be beneficial for the company in the future. However, a rising interest rate scenario hurts the valuation prospects of the company in the near term.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 15 Buys, three Holds and one Sell. Datadog’s average price target of $205.78 implies that the stock has upside potential of 37.5% from current levels. Shares have gained 79.6% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Datadog’s performance this quarter.
According to the tool, the Datadog website recorded a 7.76% monthly rise in global visits in February, compared to the same period last year. However, the footfall on its website has declined 26.65% year-to-date, compared to the previous year.
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