10 Best Cloud Computing Stocks to Buy According to Hedge Funds

7. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 80

Datadog, Inc. (NASDAQ:DDOG) is one of the Best Cloud Computing Stocks to Buy According to Hedge Funds. On June 18, Scotiabank analyst Patrick Colville lifted the price objective on the company’s stock to $275 from $225 and maintained an “Outperform” rating on the shares. Even though the stock is commanding a high valuation, Datadog, Inc. (NASDAQ:DDOG)’s capability for “beat-and-raise” in Q2 and 2026 can help the stock price movement.

In a different update, Truist analyst Miller Jump upgraded the stock’s rating to Buy from Hold while raising its price target to $300 from $190, highlighting the expectation of continued upside momentum. The analyst noted that enterprises have been prioritizing AI adoption over optimizing AI-related costs, and that customers remain in the early phases of their agentic AI journeys. There has been greater clarity in the stability of relationships with frontier labs. Jump also remains optimistic about the momentum in Datadog, Inc. (NASDAQ:DDOG)’s non-AI-native customer base.

Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications.