Datadog (NASDAQ:DDOG), a provider of cloud application observability and security platforms, has seen its stock price rise 96.96% over the past 52 weeks, closing at $268.56 as of July 30. According to the second-quarter 2026 investor letter released by investment management firm Carillon Tower Advisers, Datadog’s quarterly results exceeded expectations, with revenue showing broad-based and accelerating year-over-year growth. This growth was driven by both traditional use cases and the monitoring of new workloads powered by artificial intelligence (AI), and the company is currently viewed as a beneficiary of the widespread adoption of AI. Strong new customer activity, expansion among existing customers, and usage trends have also led to future earnings guidance that exceeds expectations.