Datadog stock fell 11.3% on February 23, 2026, due to multiple factors. The White House announced plans to raise global tariffs to 15%, which sparked broad market uncertainty and caused the S&P 500 and Nasdaq to decline. Additionally, Anthropic launched a new AI security tool, raising investor concerns about artificial intelligence disrupting traditional software business models. Investors worried that autonomous AI tools could threaten established Software-as-a-Service companies. The software sector experienced a broader selloff, with multiple software stocks including CrowdStrike and AppLovin declining at least 7%. This represented part of a weeks-long selloff in software stocks amid ongoing concerns about AI's impact on the industry. Datadog is down 24.1% year-to-date and trading 49.1% below its 52-week high of $199.72 from November 2025.
Read full analysisDatadog stock fell 11.3% on February 23, 2026, due to multiple factors. The White House announced plans to raise global tariffs to 15%, which sparked broad market uncertainty and caused the S&P 500 and Nasdaq to decline. Additionally, Anthropic launched a new AI security tool, raising investor concerns about artificial intelligence disrupting traditional software business models. Investors worried that autonomous AI tools could threaten established Software-as-a-Service companies. The software sector experienced a broader selloff, with multiple software stocks including CrowdStrike and AppLovin declining at least 7%. This represented part of a weeks-long selloff in software stocks amid ongoing concerns about AI's impact on the industry. Datadog is down 24.1% year-to-date and trading 49.1% below its 52-week high of $199.72 from November 2025.
Datadog operates a cloud-based SaaS platform providing unified monitoring, observability, and security for modern IT infrastructure, serving DevOps teams and security engineers at scale. The company reported strong Q4 results on February 10 with 29% revenue growth to $953 million, driven by AI-fueled demand for cloud security products. Its positioning at the intersection of cloud monitoring and security makes it directly exposed to the current wave of AI disruption fears, particularly from tools like Anthropic's new autonomous security offering.