Shares of monitoring and analytics platform specialist Datadog (DDOG 0.26%) spiked on Thursday. The stock rose as much as 5%. As of 3 p.m. EST, it had settled to about a 4% gain.
The stock's rise today was likely fueled by a combination of an upbeat day in the overall stock market and an analyst's decision to increase his 12-month price target for the stock.
Morgan Stanley analyst Sanjit Singh increased his price target for Datadog stock by 30% on Thursday. The new price target stands at $112, up from $86 previously. Singh maintained an equal-weight rating on the stock, which is similar to a hold. The stock is currently trading at about $108.40.
Highlighting bullishness in the overall market on Thursday, the S&P 500 and Nasdaq Composite were up 0.5% and 0.6%, respectively, at the time of this writing. Many growth stocks like Datadog were up even more. This market momentum likely helped its shares.
Datadog's business has been growing rapidly recently. Its revenue jumped 61% year over year in the third quarter, and for the fourth quarter, management forecast revenue between $162 million and $164 million. This would be up from $114 million in the fourth quarter of 2019.