Jim Cramer’s Bold Predictions About These 10 SaaS Stocks

5. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders In Q3 2024: 71

Date of Cramer’s Comments: 8-19-24

Performance Since Then: 23%

Datadog, Inc. (NASDAQ:DDOG) is a SaaS firm that enables businesses to observe and analyze their cloud environment. The business model enables it to benefit from increased AI spending in the industry as firms often rely on observability providers to monitor their AI environments. Coincidentally though, Datadog, Inc. (NASDAQ:DDOG)’s largest share price jump in H2 wasn’t of its own doing. The firm’s stock soared by 15.6% in November after cloud computing firm Snowflake beat its third-quarter estimates and grew revenue by 28% annually. Here’s what Cramer said about Datadog, Inc. (NASDAQ:DDOG) in August:

“Datadog is usually a fabulous company. There were people trying to buy it for $20 billion before it ever went public. My problem is that it’s just the definition of enterprise software—the kind of analytics that tells you how your company’s doing. There are too many players in that space, Dave. So I’m going to reiterate: I don’t trust it yet, but it is a very good company. And thank you for the question.”