5 Best Up-and-Coming Stocks to Buy Now

3. Datadog, Inc. (NASDAQ:DDOG)

Revenue Growth in Q1 2022: 82.84%

Revenue Growth in Q2 2022: 73.90%

Revenue Growth in Q3 2022: 61.39%

Number of Hedge Fund Holders: 74

Datadog, Inc. (NASDAQ:DDOG) operates a cloud-based monitoring and analytics platform that helps organizations better manage their infrastructure, applications, and services. The company has recently seen rapid expansion, making it a compelling investment opportunity for investors and is placed third among the best up-and-coming stocks to buy now.

Last November, Datadog, Inc. (NASDAQ:DDOG) posted earnings for the fiscal third quarter of 2022, in which it reported a revenue of $436.53 million, up 61.39% year over year. The company also posted revenue growth in Q1 and Q2, growing its revenue by 82.84% and 73.90% respectively.

This January, Oppenheimer analyst Ittai Kidron maintained his $105 price target and an Outperform rating on Datadog, Inc. (NASDAQ:DDOG).

At the close of Q3 2022, Datadog, Inc. (NASDAQ:DDOG) was a part of 74 investors’ portfolios that held collective stakes worth $2.56 billion in the company. Of those, Tiger Global Management LLC was the top investor in the company and held a position worth $512.7 million.

Here is what Baron Funds had to say about Datadog, Inc. (NASDAQ:DDOG) in its third-quarter 2022 investor letter:

“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”