10 Best Long Term Growth Stocks to Buy According to Billionaires

4. Datadog, Inc. (NASDAQ:DDOG)

5-Year Revenue Growth: ~49.2%

Number of Billionaire Investors: 17

Number of Hedge Funds: 83

Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications. Bank of America Securities analyst Koji Ikeda reiterated the bullish stance on the company’s stock, providing a “Buy” rating. The rating is backed by factors highlighting the company’s ability to innovate and expand its product offerings. Datadog, Inc. (NASDAQ:DDOG)’s capability to develop as well as scale new products, including infrastructure monitoring and application performance monitoring, remains a critical strength. This adaptability and innovation can fuel revenue growth, says Ikeda.

Furthermore, the analyst highlighted the promising growth potential of Datadog, Inc. (NASDAQ:DDOG)’s Flex Logs, which provide a cost-effective solution for data storage and processing. The product can be a core growth pillar because of its appeal to a broad customer base, says Ikeda. Also, the company’s diverse product portfolio can contribute significantly to its growth. Datadog, Inc. (NASDAQ:DDOG) remains well-placed to benefit from the strong growth in AI and cloud adoption. As companies remain focused on integrating AI into their operations, the demand for sophisticated monitoring and observability tools can grow.

Parnassus Investments, an investment management company, released a Q4 2024 investor letter. Here is what the fund said:

“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.”