5 Best Big Data Stocks To Buy Now

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 74

Datadog, Inc. (NASDAQ:DDOG) is a New York-based company that offers a monitoring and analytics platform for developers, information technology teams, and cloud enterprises in North America and internationally. It is one of the top big data stocks to invest in. 

On January 4, Oppenheimer analyst Ittai Kidron named Datadog, Inc. (NASDAQ:DDOG) as a top pick for 2023. His bullish stance is based on his view that Datadog, Inc. (NASDAQ:DDOG) is relatively resilient to macro pressures, given the mission-critical nature of its observability solutions, and the company is benefitting from selling additional product modules which should further expand with a move to application/cloud security. Datadog, Inc. (NASDAQ:DDOG) can maintain operating margins in the “high-teens” and grow revenue over 30%. The analyst views Datadog, Inc. (NASDAQ:DDOG) as a core long-term holding and reiterated an Outperform rating on the stock with a price target of $105.

According to Insider Monkey’s data, 74 hedge funds were bullish on Datadog, Inc. (NASDAQ:DDOG) at the end of September 2022, compared to 82 funds in the last quarter. Chase Coleman’s Tiger Global Management is the leading position holder in the company, with 5.7 million shares worth $512.70 million.

Baron Funds made the following comment about Datadog, Inc. (NASDAQ:DDOG) in its Q3 2022 investor letter:

“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”