As previously reported, Bernstein downgraded Datadog to Market Perform from Outperform with a price target of $226, up from $180. The firm is moving to the sidelines on Q3 and beyond earnings caution vs. more exuberant investor expectations as demand signals are slowing in both enterprise and some AI Labs. Bernstein points out that \"not only do we start lapping tough comps in Q4,\" it is seeing demand signals flat lining ex-AI that causes ex-AI growth to peak in Q3, and potentially regress -100bps-200bps in Q4.
