5 Best Cloud Stocks To Buy Now

3. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 81

Datadog, Inc. (NASDAQ:DDOG) is a New York-based company that provides a monitoring and analytics platform for cloud developers and businesses in North America and internationally. In mid-August, Datadog, Inc. (NASDAQ:DDOG) announced that it had enhanced monitoring for Microsoft Azure and SQL database platforms. Datadog Database Monitoring for Microsoft SQL and Azure includes features to observe core query metrics like average latency, total execution time, and number of rows queried to check problematic queries and long-term patterns. Datadog, Inc. (NASDAQ:DDOG) is one of the best cloud stocks to buy now. 

On September 23, Credit Suisse analyst Fred Lee initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with an Outperform rating and a $145 price target. Given the company’s strategic position in infrastructure monitoring and cloud infrastructure, top-notch product development team, and notable expansion into adjacencies, the analyst believes Datadog, Inc. (NASDAQ:DDOG) could provide sustained and high growth versus competitors and Wall Street expectations. 

According to Insider Monkey’s data, Datadog, Inc. (NASDAQ:DDOG) was part of 81 hedge fund portfolios at the end of Q2 2022, compared to 82 funds in the last quarter. Henry Ellenbogen’s Durable Capital Partners is the largest stakeholder of the company, with more than 3 million shares worth $299.5 million. 

Here is what Baron Global Advantage Fund has to say about Datadog, Inc. (NASDAQ:DDOG) in its Q1 2022 investor letter:

“Another example is Datadog, the leading infrastructure monitoring, application performance monitoring and log management software platform. Datadog’s stock declined 15% during the quarter, despite reporting sparkling operational results, with revenues accelerating to a growth rate of 84% year-over-year with 33% free cash flow margins, while guiding for 2022 significantly above expectations. Datadog added 4,600 new customers in the quarter, while existing customers continued to increase their spending on Datadog products at a rapid pace with the number of customers using four or more products increasing to 33% from 22% last year. While Datadog’s stock was down, its intrinsic value has undoubtedly increased. This is enabled by rapid innovation (Datadog released 13 new products in 2021) into a market that is benefiting from the secular growth in cloud, digital transformation, and the explosion in complexity as the number of vendors, diversity of technologies and related infrastructure continued to expand.”