Caution warranted on this red hot AI cloud data stock that's now 'priced for perfection,' says Todd Gordon

Datadog, Inc. is presented as a red-hot AI cloud data stock that, according to analyst Todd Gordon, is now “priced for perfection.” The article says Datadog serves as a control room for software operations by consolidating data from servers, apps, and cloud services into real-time monitoring and alerting. It notes the shares recently traded around $266, about 94% higher over the past year, and above its 50- and 200-day moving averages, with a $201 level described as turned support after earlier resistance broke. It also cites an IBD-style cup-and-handle pattern targeting the $300s. On fundamentals, the first quarter of 2026 is described as its best ever, with revenue crossing $1 billion (+32%), annual recurring revenue above $4 billion, and net retention above 120%. Growth is attributed to AI monitoring, LLM observability, hyperscaler deals, and FedRAMP High certification.