10 AI Stocks Taking Wall Street by Storm

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) specializes in cloud computing and AI-powered cybersecurity products. On December 16, Scotiabank raised the firm’s price target on Datadog (DDOG) to $162 from $133 and kept an “Outperform” rating on the shares. The rating, issued after a meeting with the management, reflects Datadog’s potential “nice momentum” in 2025. According to the firm, Datadog is a “clean way to play the themes” of digital transformation and DevOps.

However, the analyst told investors in a research note that the Street’s targets for 23% revenue growth in 2025 are a “bit of an overhang,” especially if artificial intelligence-native companies negotiate larger discounts. Even though the firm isn’t asserting a position on Datadog at the moment, it continues to “love its leadership in cloud-native observability, and end-to-end solution across the three pillars of observability which plays into the trend of market consolidation”.