Q2 STOCKS TO BUY

2 Software Stocks Falling Despite Bull Notes

TEAM and DDOG are pulling back alongside the broader market

Deputy Editor
Oct 1, 2024 at 10:47 AM
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Shares of software companies Atlassian Corp (NASDAQ:TEAM) and Datadog Inc (NASDAQ:DDOG) are both lower today, falling alongside the broader market despite upgrades.

Atlassian stock is 1.3% lower to at $156.71, brushing off an upgrade to "outperform" at Raymond James. The analyst hiked its rating on TEAM from "market perform" and set a $200 price target, noting it expects stronger cloud growth in 2025 . According to its bull note, Raymond James sees "a path to mid/high-20% cloud growth and total company growth approaching 20%."

The security is coming off third-straight monthly and quarterly losses, and is 33.6% lower since the start of 2024. The $170 level has acted as a ceiling in recent months, while the 40-day moving average is providing some support.

Meanwhile, Datadog stock is 1.2% lower at $113.74 at last glance, even after D.A. Davidson called it a best-in-class name. The brokerage upgraded DDOG to "buy" from "neutral" and lifted its price target to $140 from $115, noting the company's "proprietary developer data showed a strong positive inflection point."

DDOG is up 24.5% over the past 12 months, but carries a 5.8% year-to-date deficit. The stock is rebounding from an early August dip to its lowest level since November 2023, and recently reclaimed support from its 320-day moving average.

 

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