We recently published a list of These 10 Stocks Were Wednesday’s Worst Performers. In this article, we are going to take a look at where Datadog, Inc. (NASDAQ:DDOG) stands among Wednesday’s worst-performing stocks.

The stock market declined on Wednesday, with all major indices finishing in the red, driven by losses in technology stocks.

The Nasdaq dropped 0.51%, while the S&P 500 and Dow Jones fell 0.47% and 0.31%, respectively.

Ten companies, mostly from the technology sector, led the downturn.  In this article, we will highlight the biggest decliners and examine the factors driving their performance.

To identify Wednesday’s biggest losers, we focused on stocks with a market capitalization of at least $2 billion and a daily trading volume of over $5 million.

A close-up of a laptop with a software engineer coding on the monitor.

DataDog, Inc. (NASDAQ:DDOG)

Datadog, Inc. (NASDAQ:DDOG) saw its share prices drop by 4.06 percent on Wednesday to close at $145.72 each after investment bank Stifel downgraded its rating on the stock from “buy” to “hold,” saying that the company is expected to face new margin pressures. Stifel also cuts its price target for DataDog by 15 percent to $140 from the $165 previously.

DataDog (NASDAQ:DDOG) has been serving up encouraging sales growth, with revenues rising as much as 26 percent year-on-year to $690 million in the third quarter of the year. However, Stifel believed that the potential downside risks are coming in its quarterly reports this year amid margin pressures.

DataDog (NASDAQ:DDOG) is expected to release its earnings results for the fourth quarter of the year on February 13, with a guidance of $709 million to $713 million for the full year 2024.

Overall, DDOG ranks 8th on our list of Wednesday’s worst-performing stocks. While we acknowledge the potential of DDOG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.