BTIG: US software stocks "bright," Datadog (DDOG.US) is noteworthy

BTIG's chief market strategist Jonathan Krinsky said in a note that the SPDR S&P Software & Services ETF (XSW.US) tracking the performance of software stocks held steady above a larger bottom formation, showing relative strength and seeking to break out. The index has risen 3.92% year-to-date, though it fell 1.30% today. Meanwhile, BTIG recommended Datadog (DDOG.US), which is breaking out of a bottom formation, as it has gained more than 7% in the past four days. However, Microsoft (MSFT.US) still underperformed the broader market. The stock is down 2.68% from six months ago, falling 2.89% today, though it has risen 10.51% year-to-date. Krinsky said, "While the index is still above 400, the relative low of the year is not a good sign." On the other hand, it is noteworthy that Datadog (DDOG.US), a SaaS company that provides monitoring services for servers, databases, etc., is breaking out of a bottom formation, up 7.73% from five days ago, up 35.67% from a year ago, up 0.29% today. BTIG has a target price of $143 for Datadog, while the stock is currently trading at $123. Datadog is a monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management to provide unified, real-time observability across the entire technology stack. Datadog is widely used by organizations of all sizes and across industries to drive digital transformation and cloud migration, enabling collaboration between development, operations, security, and business teams, accelerating application time to market, shortening problem resolution time, securing applications and infrastructure, understanding user behavior, and tracking key business metrics.