Datadog shares drop 2.89% in three days as trading volume ranks 244th despite new AI agent announcements

Datadog (DDOG) shares fell 1.07% on June 11, 2025, marking the third consecutive day of decline, with a total drop of 2.89% over the past three days. The trading volume for the day was $415 million, placing it at the 244th position in the overall market.

Datadog has introduced new domain-specific AI agents designed to enhance incident response, product development, and security. These agents, unveiled at the DASH event, are trained to perform interactive investigations and asynchronous code fixes, significantly improving the efficiency of development, security, and operations teams. The agents are built on a flexible system of shared tasks, allowing for quick deployment while maintaining a consistent user experience. This architecture enables Datadog to leverage its expansive, high-quality observability data to deliver precise insights and actions, reducing risk and enhancing operational efficiency.

Among the new AI agents announced are the Bits AI SRE, which performs early triage for all alerts and generates incident post-mortems, the Bits AI Dev Agent, which detects issues and generates code fixes, and the Bits AI Security Analyst, which autonomously triages security signals and delivers resolution recommendations. These agents are designed to augment human capabilities by guiding users on what to look for and where to start, thereby improving productivity and reducing response times.

Datadog's Chief Product Officer, Yanbing Li, highlighted the company's unique position in delivering AI value, leveraging its wealth of clean, rich data and integration into critical engineering, developer, and security workflows. The new AI capabilities are part of Datadog's ongoing evolution, aimed at enabling human-in-the-middle workflows and enhancing the ability to take action in real time.

In addition to the new AI agents, Datadog has also introduced Proactive App Recommendations and APM Investigator capabilities. Proactive App Recommendations continuously analyzes telemetry data to suggest high-impact fixes, while APM Investigator helps engineers troubleshoot and resolve latency spikes faster by automating the identification of bottlenecks and suggesting fixes. These capabilities are designed to optimize performance, reduce errors, and cut down resource usage, all before users are affected.