The company just reported earnings, and the stock surged 23%, its largest single-day move in over a year, compared to its typical 10% range. The rally was fueled by its strong AI positioning and accelerating enterprise adoption.

DDOG reported a 20% increase in spending from AI-focused customers. It highlighted its AI-native observability tools and AI-enhanced features, which contributed to a 23% margin expansion.

The stock is not considered crowded, with only 3% of the float shorted. This results in a crowded score of 32—squarely in the midrange.

This mirrors a broader trend across the market: a dozen AI stocks, AI-adjacent names, and speculative tech plays have posted 20%+ daily gains.

However, the 23% move inflicted significant pain on short sellers, pushing the short squeeze score to 72.5. This places DDOG in the short squeeze risk zone, according to S3’s real-time short interest analytics.

Notable names with similar moves include AMD, PLTR, SOUN, APP, GTLB, and PRAX—each up more than 20% in a single session.

These vertical moves are shaping the tone of the market, where nearly any stock in the tech space can become a headline instantaneously.

While the squeeze score has crossed 70 before without triggering a full squeeze, the current setup remains volatile.

Despite trading near all-time highs, analysts continue to raise price targets and remain bullish on DDOG’s long-term AI-driven growth story.

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