BTIG: US software stocks have a "bright future", Datadog is worth paying attention to
BTIG analyst Jonathan Krinsky stated that the software stock index is stable above the bottom formation, and Datadog is worth paying attention to. The stock has recently risen by over 7%, with a target price of $143 and the current stock price at $123. Despite Microsoft's poor performance, Datadog, as a cloud monitoring platform, is driving digital transformation and is widely used
According to the Zhitong Finance APP, Jonathan Krinsky, the chief market technician analyst at BTIG, stated in a report that the SPDR S&P Software and Services ETF (XSW.US), which tracks the performance of software stocks, is maintaining stability above a larger bottom formation, showing relatively strong performance and seeking a breakthrough. The index has risen by 3.92% so far this year, but dropped by 1.30% today. Meanwhile, BTIG recommended Datadog (DDOG.US) as it is breaking out of the bottom formation, with the stock rising consecutively, up over 7% in the past four days.
However, compared to the broader market, Microsoft (MSFT.US) continues to underperform. The stock is down by 2.68% compared to six months ago, and dropped by 2.89% today, although it has accumulated a 10.51% increase year-to-date.
Krinsky stated, "In absolute terms, the index is still above 400 points, but the relative low point over the past year is not a good sign."
On the other hand, it is worth noting that Datadog (DDOG.US), a SaaS company in the United States that provides monitoring services for servers, databases, and more, is breaking out of a bottom formation. It has risen by 7.73% compared to five days ago, 35.67% compared to the same period last year, and increased by 0.29% today. BTIG has a target price of $143 for Datadog, while the current stock price is $123.
Datadog is a monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, and log management, providing customers with unified, real-time observability across their entire tech stack. Datadog is widely used by organizations of all sizes and industries to achieve digital transformation and cloud migration, drive collaboration between development, operations, security, and business teams, accelerate time to market for applications, shorten time to resolution for issues, protect applications and infrastructure, understand user behavior, and track key business metrics