Datadog shares surge 5.62% after-hours as Stifel upgrades to Buy, citing expected Q4 beat and accelerating core growth.

Datadog surged 5.62% in after-hours trading following a series of analyst upgrades and positive earnings expectations. Stifel upgraded the stock to "Buy" from "Hold," citing potential for a "larger than typical" fourth-quarter earnings beat due to accelerating core growth and new product adoption. Guggenheim echoed optimism, projecting 29% Q4 revenue growth, while Bernstein assigned an "Outperform" rating with a $180 price target. Collectively, these upgrades highlighted Datadog's strong revenue momentum, including 20% year-over-year core growth and expanding AI-native offerings. The stock's rally aligned with broader market relief over eased trade war concerns and a shift back into growth stocks, though the move was framed as a reaction to near-term catalysts rather than a fundamental re-rating.