Dynatrace stock wavered amid fiscal Q3 Dynatrace earnings that topped estimates while currency exchange rates impacted revenue guidance.

Shares of cloud monitoring software company Datadog (NASDAQDDOG) fell 6.1% in the afternoon session after Stifel analysts downgraded the stock's rating from Buy to Hold and lowered the price target from $165 to $140. A key issue seems to be Datadog's AI potential, as Stifel sees limited upside from Datadog's existing business with OpenAI, the creator of ChatGPT. OpenAI depends on critical infrastructure and software, including semiconductor chips, cloud platforms, and even the developer operations and security tools that Datadog provides. If Datadog's role in this ecosystem isn't as strong as hoped, it could dampen the AI-driven growth narrative, which has been a major attraction for investors.

Technical analysis of the stock chart for DDOG.

Stifel analyst Brad Reback downgraded Datadog from Buy to Hold and lowered its price target to $140, citing concerns over modest growth despite a contract renewal with OpenAI.

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Datadog, Monday.com, and Cloudflare could be potential multibaggers.

DATADOG INC - CLASS A (NASDAQDDOG), a strong growth stock, setting up for a breakout.

Datadog has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 8.3% to $140.11 per share while the index has gained 3.8%.

Enterprises are yet to take full advantage of automation's cost-saving potential.