Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential

3. Datadog, Inc. (NASDAQ:DDOG)

Tiger Global Management LLC’s Stake Value: $139.95 Million

Upside Potential as of April 30: 44.21%

Number of Hedge Fund Holders: 83

Datadog, Inc. (NASDAQ:DDOG) is a software application company that operates an observability and security platform for cloud applications. Its products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, and data observability. While the stock has shed nearly 28% in market value year-to-date, it is still one of billionaire Chase Coleman’s top stocks with significant upside potential. On April 16, Morgan Stanley reiterated a Hold rating on the stock with a $115 price target.

The stock has been under pressure as a slowdown in customer spending on its solutions in the fourth quarter of 2024 dented its sentiments in the market. Datadog, Inc. (NASDAQ:DDOG) forecasted a decline in 2025 earnings growth, which exacerbated the situation. Its revenue in 2024 was up 26% year-over-year to $2.7 billion as earnings surged 38%. Nevertheless, the company said its revenues could increase by 18%, much slower than in 2024, with earnings expected to only increase by high single digits.

Through 2028, Datadog, Inc. (NASDAQ:DDOG) projects that the cloud observability and security markets will grow at a robust double-digit rate annually. Given that the aggregate value of these markets was $79 billion last year, the company is staring at tremendous opportunities amid the expected growth. It already boasts a solid base of 30,000 customers and a sizable addressable market that affirms its revenue base.