10 Best Growth Stocks to Buy According to Billionaires

4. Datadog, Inc. (NASDAQ:DDOG)

3-Years Sales Growth: 37.67%

Number of Hedge Fund Holders: 83

Number of Billionaires: 17

Value of Billionaire Holdings: $765,542,290

Datadog, Inc. (NASDAQ:DDOG) is an international provider of security and observability solutions. Its key offerings include Infrastructure Monitoring, Application Performance Monitoring, Log Management, Cloud Security, and more. Its services allow enterprises to improve their performance and optimize costs for their technologies.

On April 7, Jefferies analyst Brent Thill maintained a Buy rating on the stock with a price target of $135. During the fiscal fourth quarter of 2024, Datadog, Inc. (NASDAQ:DDOG) reported growing its revenue by 25% year-over-year to reach $738 million. The growth was driven by an increase in large customers with more than 462, $1 million ARR customers. In addition, Parnassus Growth Equity Fund mentioned adding Datadog, Inc. (NASDAQ:DDOG) in its Q4 2024 investor letter. The fund stated that the company is a dominant cloud monitoring platform with best-in-class products and a sticky product suite. The fund believes that the market has misinterpreted the cyclical headwinds such as a drop in IT spending, whereas the company has been benefiting from growth in its Cloud infrastructure monitoring platforms. It is one of the best growth stocks to buy according to billionaires.

Parnassus Growth Equity Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its Q4 2024 investor letter:

“We also added several new positions, including two in Information Technology: Atlassian, a maker of innovative software that allows IT developers and other employees to seamlessly collaborate on complex projects, and Datadog, Inc. (NASDAQ:DDOG), a dominant cloud monitoring platform.

Datadog, a dominant cloud monitoring platform, should have outsized growth due to its category leadership, sticky product suite, best-in-class product innovation and highly regarded management team. We believe the market has misinterpreted cyclical headwinds, such as reductions in IT spending, as secular trends, and we see Datadog benefiting from growth in Cloud Infrastructure-as-a-Service.”