14 Best IT Stocks to Buy for the Long Term

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9. Datadog, Inc. (NASDAQ:DDOG)

5-Year Revenue Growth: 44.38%             

Number of Hedge Fund Holders: 84

Datadog, Inc. (NASDAQ:DDOG) is one of the 14 Best IT Stocks to Buy for the Long Term.

On August 8, 2025, Cantor Fitzgerald raised its price target on Datadog, Inc. (NASDAQ:DDOG) from $171 to $179, maintaining an ‘Overweight’ rating, driven by the company’s strong Q2 results.

Datadog, Inc. (NASDAQ:DDOG) eased concerns related to potential in-sourcing by its largest AI native customer, which contributes about 6.5% of quarterly revenue, thanks to a 25.5% YoY revenue growth. Following the Q4 2024 contract renewal, the company demonstrated resilience in its AI native segment. Its higher second-half guidance further bolstered the analysts’ confidence. Even after excluding the largest customer, the company’s revenue growth remains steady despite a cautious stance among enterprises.

Thus, the analyst believes Datadog, Inc. (NASDAQ:DDOG) is well-positioned to capitalize on both AI-native expansion and broader enterprise adoption.

With its observability and security platform for cloud applications, Datadog, Inc. (NASDAQ:DDOG) provides monitoring, data observability, security, automation, and AI visibility tools globally. It is one of the best IT stocks.

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