13 Best Big Data Stocks to Buy According to Analysts

3. Datadog, Inc. (NASDAQ:DDOG)

Upside Potential: 81.41%

Number of Hedge Fund Holders: 83

Datadog, Inc. (NASDAQ:DDOG) is considered a big data company because it specializes in collecting, processing, and analyzing massive volumes of data generated by cloud infrastructure, applications, and services. The company processes large streams of data in real time, which allows businesses to monitor and respond to system performance, security threats, and other operational metrics instantly. Datadog, Inc. (NASDAQ:DDOG) operates in cloud-native environments, where data is often decentralized across many systems. To make sense of large data sets, it incorporates machine learning and advanced analytics.

The company’s Q$ 2024 revenue reached $738 million, a 25% year-over-year increase, exceeding expectations. This was on the back of a customer base increase to 30,000, up from 27,300 the previous year, with significant expansion in high-value customers. Datadog, Inc. (NASDAQ:DDOG) gave strong guidance for the current year. Full-year 2025 revenue guidance is $3.175B to $3.195B, reflecting 18%-19% growth. Datadog, Inc. (NASDAQ:DDOG) is accelerating its sales capacity after a slower start in 2024. The company is also focused on improving product adoption and customer success.

Last month, TD Cowen reaffirmed a Buy rating on the company with a $165 price target. TD Cowen analyst Andrew Sherman highlighted the robust revenue growth in Q4, and notable bookings of $1 billion. According to Sherman, the optimism around AI-native systems, log solutions, and sales expansion indicate further growth.