Datadog is partnering with Amazon's AWS
The shares of Datadog Inc (NASDAQ:DDOG) are up 2.5% at $149.10 at last check, paring early-session losses after it was announced that the cloud security company is entering into a partnership with Amazon.com's (AMZN) Amazon Web Services (AWS). The collaboration aims to beef up security, as well as allow customers a more clear picture of their cloud infrastructure.
Prior to the news, Jefferies dished out a bear note to DDOG in the form of a price-target cut from $230 to $200, which is still a 34% premium to the equity's current level and an area that sits a hair's breadth above its all-time high of $199.67. And the majority of analysts are still bullish toward Datadog stock, with 13 of 17 in coverage rating it a "buy" or better.
There's plenty of short interest to be unwound as well. There's been an 18.8% increase in short interest over the last month, and the 13.07 million shares sold short account for 5.6% of the stock's available float, or nearly four days of pent-up buying power at its average pace of trading.
Since attaining its aforementioned all-time high, Datadog stock took a step back on the charts, falling below the $145 level yesterday for the first time since early October. Today's pullback was contained by the 150-day moving average. Year-over-year, DDOG is up 63.7%.