5 Best Strong Buy Tech Stocks to Invest In Now

2. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 75

Datadog, Inc. (NASDAQ:DDOG) is one of the best Strong Buy stocks on this list.

TheFly reported on May 12 that Goldman Sachs increased its price target on DDOG to $139 from $121 while maintaining a Sell rating on the shares. The firm noted that the company continues benefiting from rising AI-related demand, which is contributing to larger observability spending and supporting platform adoption. However, Goldman Sachs also pointed to intensifying competition and the possibility of customers reevaluating their software tool selections over time, factors that could weigh on DDOG’s longer-term growth trajectory despite current momentum.

In addition to that, on May 7, Datadog, Inc. (NASDAQ:DDOG) reported first-quarter 2026 financial results showing revenue of $1.006 billion, representing 32% year over year growth and marking the company’s first quarter surpassing the $1 billion revenue level. Non-GAAP operating income reached $223 million, while free cash flow totaled $289 million. The company ended the quarter with approximately $4.8 billion in cash, equivalents, and marketable securities. DDOG also expanded its large customer base, reaching about 4,550 clients, generating annual recurring revenue above $100,000.

During the quarter, the company introduced several AI focused and security-related offerings, including GPU Monitoring, Bits AI Security Analyst, and Datadog Experiments. DDOG additionally achieved FedRAMP High certification for government cloud operations and announced a strategic partnership with Sakana AI focused on enterprise artificial intelligence initiatives and product development.

Datadog, Inc. (NASDAQ:DDOG) is a SaaS-based observability and security platform that provides cloud monitoring, analytics, and cybersecurity solutions for applications and infrastructure.