10 Best SaaS Stocks to Buy According to Billionaires

5. Datadog Inc. (NASDAQ:DDOG)

Number of Billionaire Investors: 17

Billionaire Holdings: $766 Million

Number of Hedge Fund Holders: 83

Datadog Inc. (NASDAQ:DDOG) is a cloud-native monitoring and security platform that provides real-time observability for IT infrastructure, applications, and security environments. The company serves enterprises by offering comprehensive analytics across logs, metrics, traces, and network performance, enabling DevOps and IT teams to optimize operations and enhance cybersecurity.

In a report on March 4, Needham analyst Mike Cikos reaffirmed a Buy rating on Datadog Inc. (NASDAQ:DDOG) with a $160 price target, citing strong business momentum. The analyst highlighted that partner discussions indicate solid growth despite concerns about its OpenAI relationship, driven by industry mergers and customer focus on operational efficiency. The company’s new offerings, including LLM Observability, are expanding its market presence, while investments in security solutions position it well for industry trends. The analyst believed that these factors collectively create a strong growth environment, reinforcing his confidence in the company’s long-term potential and thus supporting the Buy rating.