What happened
Shares of monitoring and analytics platform specialist Datadog (NASDAQ:DDOG) spiked on Thursday. The stock rose as much as 5%. As of 3 p.m. EST, it had settled to about a 4% gain.
The stock's rise today was likely fueled by a combination of an upbeat day in the overall stock market and an analyst's decision to increase his 12-month price target for the stock.
IMAGE SOURCE: GETTY IMAGES.
So what
Morgan Stanley analyst Sanjit Singh increased his price target for Datadog stock by 30% on Thursday. The new price target stands at $112, up from $86 previously. Singh maintained an equal-weight rating on the stock, which is similar to a hold. The stock is currently trading at about $108.40.
Highlighting bullishness in the overall market on Thursday, the S&P 500 and Nasdaq Composite were up 0.5% and 0.6%, respectively, at the time of this writing. Many growth stocks like Datadog were up even more. This market momentum likely helped its shares.
Now what
Datadog's business has been growing rapidly recently. Its revenue jumped 61% year over year in the third quarter, and for the fourth quarter, management forecast revenue between $162 million and $164 million. This would be up from $114 million in the fourth quarter of 2019.
Should you invest $1,000 in Datadog, Inc. right now?
Before you consider Datadog, Inc., you'll want to hear this.
Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy right now... and Datadog, Inc. wasn't one of them.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.
