5 Best Falling Stocks To Buy Now

3. Datadog, Inc. (NASDAQ:DDOG)

6-month Decline as of March 14: 30.83%

Number of Hedge Fund Holders: 63

On March 8, Wells Fargo analyst Andrew Nowinski and his Overweight rating and $105 price target on Datadog, Inc. (NASDAQ:DDOG). As of March 14, the stock has tanked by 30.83% over the past 6 months.

Datadog, Inc. (NASDAQ:DDOG) was held by 63 hedge funds at the end of Q4 2022. These funds held collective positions worth $1.46 billion in the company. Datadog, Inc. (NASDAQ:DDOG) is placed third on our list of the best falling stocks to buy according to hedge funds.

As of December 31, Durable Capital Partners is the leading investor in Datadog, Inc. (NASDAQ:DDOG) and has a position worth $205.1 million in the company.

Here is what RiverPark Advisors had to say about Datadog, Inc. (NASDAQ:DDOG)  in its Q4 2022 investor letter:

“We initiated a small position in Datadog, Inc. (NASDAQ:DDOG) during the quarter. As businesses have transitioned to cloud software infrastructure, much of which is in isolated data silos, it has become increasingly difficult for data engineers to monitor and analyze system performance. Datadog provides a SaaS software platform to monitor and analyze the performance of software applications and IT infrastructure.

The company has quickly grown its revenue from $100 million in 2017 to $1 billion in 2021 and, we believe, should continue to grow revenue at more than 30% annually as it penetrates its $40 billion and fast-growing market. Less than 10% of software applications are currently monitored. Datadog’s customer count has been growing rapidly, up 27% year over year as of 3Q22. Additionally, the company’s dollar-based net retention rate has been 130%+ as existing customers continue to use an increasing number of products and the company continues to add new features. For 3Q22, 80% of customers used 2+ products, while 16% of customers used 6+ products (up from less than 1% two years ago). As an extremely capex light software business, DDOG already has significant FCF (and a 24% FCF margin), which should continue to grow more than 40% for 2022 to $355 million, up from $1 million two years ago.”