Datadog

Datadog’s stock soared 31% after reporting record revenue and raising annual guidance, underscoring its crucial role in the AI revolution by powering major AI models. This positive momentum boosted Snowflake and MongoDB. Datadog secured two major hyperscale clients for AI training. Meanwhile, Twilio’s stock gained 50% on strong earnings, driven by AI agent enhancements offering “memory” for seamless customer service and increased revenue. Both companies demonstrate the value of AI-native solutions in the evolving tech landscape.

Datadog’s shares surged 23% after exceeding Q3 earnings expectations, reporting $885.7 million in revenue, a 28% year-over-year increase. Fueled by strong demand for its AI-powered security solutions, Datadog forecasts Q4 revenue between $912 million and $916 million, surpassing Wall Street estimates. The company’s strategic investments in AI, including Bits AI Agents and LLM Observability enhancements, are driving growth. Datadog’s adjusted EPS reached 55 cents, and customers with over $100,000 ARR increased by 16%.