12 Best Big Data Stocks To Buy According to Hedge Funds

4. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) serves as the observability and security platform for cloud applications. The company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, real-user monitoring, log management, and other capabilities to offer unified, real-time observability and security for its customers’ entire technology stack. Datadog caters to organizations of all sizes and across various industries.

The firm set out in 2010 to build a real-time data integration platform to turn the chaos of having uncorrelated data from disparate sources into digestible and actionable insights. Datadog solves complexity by offering a unified platform for breaking down silos, which is deployed everywhere and used by everyone. The firm’s ability to capture market share is evident from the fact that the number of monthly active users has grown from 2017 to 2023 where monthly active users are users at paying customers, who logged onto the Datadog platform in December of the given year.

The company’s third quarter went well with revenue growing 26% year-over-year to $690 million. As of September 3, Datadog had about 3,490 customers with ARR of $100,000 or more, an increase of 12% year-over-year.  The firm also reported an achievement as it was named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms and the 2024 Gartner Magic Quadrant for Digital Experience Monitoring.

The growth opportunities for Datadog, Inc. (NASDAQ:DDOG) remain vast with the secular tailwind of digital transformation and cloud migration. The Cloud market is a $560 billion market as of now, growing at a 20% CAGR through 2027. The observability market and the Cloud Security market are to expand over the years as well.