On July 1, Datadog rose 3.05% in regular trading, trading at $268.83/share, with turnover of $221 million. The stock was buoyed by the company's announcement that it has acquired artificial intelligence company Adaptive ML.
According to the announcement, Adaptive ML will join Datadog's AI Research lab to support enterprise clients in creating and deploying specialized models using a Reinforcement Learning Operations platform. The acquired team will build frontier AI infrastructure to address cutting-edge research challenges within observability and security, while also supporting investments in world models and agentic large language model post-training. Financial terms of the deal were not disclosed.
The acquisition comes amid a broader wave of Wall Street optimism around Datadog's AI strategy. Over recent weeks, multiple investment banks have raised their price targets, including Arete to $340, Truist upgrading to Buy with a $300 target, BofA Securities to $280, and Scotiabank to $275. RBC Capital Markets has highlighted Datadog's rapid AI product development as a durable positive trend, while Wedbush added the stock to its AI 30 list following the company's DASH annual conference.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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