Datadog Inc. (DDOG) stock climbed more than 4% Monday after Bernstein upgraded the cloud monitoring company, pointing to stronger growth opportunities tied to artificial intelligence.

The stock also got a lift from a broader technology rally. The Nasdaq gained 1.50%, while the S&P 500 rose 0.67%.

Bernstein analyst Peter Weed upgraded Datadog from Market Perform to Outperform and raised his price forecast from $237 to $350.

Technical Analysis: Long-Term Uptrend Remains Intact

Datadog stock has gained 66.60% over the past 12 months. It continues to trade above several key long-term moving averages, signaling underlying strength.

The stock remains above its 50-day simple moving average (SMA) of $247.63, its 100-day SMA of $248.35 and its 200-day SMA of $192.24.

However, shares remain below the 20-day SMA of $269.78, suggesting near-term momentum has weakened.

The relative strength index (RSI) stands at 49.61, indicating neutral momentum. This suggests neither buyers nor sellers have a clear advantage.

Meanwhile, a golden cross formed in May, when the 50-day SMA moved above the 200-day SMA. The bullish signal supports the longer-term trend.

Traders are watching resistance near $300.50, close to the stock's 52-week high of $300.68.

On the downside, $237.50 remains a key support level.

Earnings And Analyst Outlook

Investors are looking ahead to Datadog's next earnings report, scheduled for Nov. 4.

Analysts expect earnings of 65 cents per share, compared with 55 cents a year earlier. Revenue is expected to reach $1.14 billion, up from approximately $890 million in the year-ago period.

However, Datadog trades at a price-to-earnings ratio of 494.2, reflecting a substantial valuation premium. That valuation leaves the stock vulnerable if earnings or guidance fall short of expectations.

Meanwhile, analysts maintain a consensus Buy rating, with an average price forecast of $298.34. Recent analyst actions include Bernstein's upgrade to Outperform and its $350 price forecast on Oct. 19.

Mizuho raised its price forecast to $330 on Oct. 15 while maintaining an Outperform rating. Barclays also raised its forecast to $300 on Oct. 13 and maintained an Overweight rating.

DDOG Stock Price Action

Datadog shares rose 4.24% to $257.59 at the time of publication Monday, according to market data.