: Datadog stock soars as Microsoft commentary helps fuel hopes of reacceleration
Shares of Datadog Inc. DDOG were rocketing 14% in midday trading Wednesday, which one analyst attributed to commentary from Microsoft Corp. MSFT about its Azure cloud-computing business. “We believe this reflects MSFT management emphasizing [the second half of the year] should lap some headwinds, and a belief this supports the later-in-the-year reacceleration that should pull through DDOG growth,” Bernstein analyst Peter Weed wrote Wednesday of Datadog’s rally. He said that Amazon.com Inc.’s AMZN Thursday afternoon results could offer “further confirmation of the rest-of-2023 setup.” In Weed’s view, Datadog’s growth opportunities “are linked to hyperscalers fortunes (especially AWS).” Shares of Datadog, which makes monitoring and analytics software, are off 3% so far this year, as the S&P 500 SPX has added 6%.
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