12:24 PM EST, 11/03/2025 (MT Newswires) -- Datadog ( DDOG ) is facing solid "demand" and steady product execution ahead of its Q3 financial results, where investors will focus on the company's exposure to OpenAI, Oppenheimer analysts said in a Monday note.

The analysts said that OpenAI may be shifting a portion of its observability stack, including its own internal platform and part of Datadog ( DDOG ), to other observability vendors.

They noted that while the magnitude and pace of this shift remain unclear, it could weigh on the company's Q3 results and full-year outlook, and investor sentiment. The shift could also lead the company to provide some general parameters for the 2026 outlook.

"We're confident in Datadog's ( DDOG ) sustained execution and believe AI observability/security offers it a strong, multi-year growth tailwind," Oppenheimer said.

The analysts said that while they are "mindful" of near-term volatility, their long-term bullish view on the stock is unchanged.

Oppenheimer has an outperform rating on the stock and a $195 price target.

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