11:35 AM EST, 11/04/2025 (MT Newswires) -- Datadog ( DDOG ) is "well-positioned" to keep gaining market share in the observability space and is expected to deliver another "strong" Q3 report on Thursday, Wedbush Securities said in a Tuesday note.

"Based on our recent checks, we believe that DDOG is coming away as a larger winner within the observability sector as the company improved its selling motion to win more deals across all market segments despite rising competition," the investment firm said.

Wedbush said Datadog ( DDOG ) continues to benefit from rising demand for observability solutions, while its artificial-intelligence initiatives are driving further pipeline growth. The firm highlighted increased usage and spending among Datadog's ( DDOG ) AI-native customers.

Checks on other observability competitors pointed to weaker performance from prior quarters, largely reflecting Datadog's ( DDOG ) stronger deal activity, according to the note.

Wedbush maintained its outperform rating and $170 price target on Datadog ( DDOG ).

Shares of Datadog ( DDOG ) were down 1.3% in recent trading.

Price: 159.99, Change: -2.09, Percent Change: -1.29