We recently published a list of 10 Best Long Term Growth Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Datadog, Inc. (NASDAQ:DDOG) stands against other best long term growth stocks to buy according to billionaires.

As per Barclays, the US administration announced numerous executive orders with reforms associated with world trade, immigration, and global geopolitics, resulting in elevated levels of uncertainty and volatility, with markets witnessing a range of policy changes. The firm’s research analysts opine that higher uncertainty comes at a cost to global growth. In the US, there has been a decline in consumer confidence, while personal spending remains weak, and GDP forecasts declined sharply, says the firm.

What’s Ahead for US Economy?

S&P Global believes that the Trump administration’s shifting policy mix continues to result in a faster decline in growth in 2025. While the firm’s full-year growth rate remains unchanged at 1.9% (mainly because of higher base effects from a strong end to 2024), it expects a downshift in growth to 1.6% by Q4. It expects unemployment to drift higher, peaking at 4.6% by midyear 2026, with the public sector likely to limit the payroll expansion. This contrasts with strong contributions to job growth over the past 2 years.

S&P Global expects inflation to remain closer to 3.0% in 2025 as tariffs result in higher prices along the domestic supply chain and for end consumers. Therefore, the company anticipates one 25-basis-point federal funds rate cut for 2025, closing the year at the 4.00%-4.25% range.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

US Economy to Grow in 2025, Says Russell Investments

For 2025, Russell Investments expects a soft landing for the US economy. It assumes that the new administration will ease the more aggressive stances on tariffs and immigration. As per the firm, the US economy is projected to grow at a trend-like pace of 2.0% in 2025. The Trump administration’s policies exhibit a delicate balancing act. The firm believes that tax reforms and deregulation can help stimulate growth, mainly in domestic and cyclical sectors. Its working assumption is focused on the new administration not aggressively pursuing policies that result in inflation risk.

While the tariffs and immigration controls are likely to be implemented, the firm opines that the extent is expected to be constrained by the inflation outlook. Overall, Russell Investments expects the policy mix to support business confidence, which can fuel a resurgence in capital markets and offer favorable tailwinds for private assets.

Our Methodology

To list the 10 Best Long Term Growth Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have exhibited at least ~20% revenue growth over the past 5 years.  For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close-up of a laptop with a software engineer coding on the monitor.

Datadog, Inc. (NASDAQ:DDOG)

5-Year Revenue Growth: ~49.2%

Number of Billionaire Investors: 17

Number of Hedge Funds: 83

Datadog, Inc. (NASDAQ:DDOG) operates an observability and security platform for cloud applications. Bank of America Securities analyst Koji Ikeda reiterated the bullish stance on the company’s stock, providing a “Buy” rating. The rating is backed by factors highlighting the company’s ability to innovate and expand its product offerings. Datadog, Inc. (NASDAQ:DDOG)’s capability to develop as well as scale new products, including infrastructure monitoring and application performance monitoring, remains a critical strength. This adaptability and innovation can fuel revenue growth, says Ikeda.

Furthermore, the analyst highlighted the promising growth potential of Datadog, Inc. (NASDAQ:DDOG)’s Flex Logs, which provide a cost-effective solution for data storage and processing. The product can be a core growth pillar because of its appeal to a broad customer base, says Ikeda. Also, the company’s diverse product portfolio can contribute significantly to its growth. Datadog, Inc. (NASDAQ:DDOG) remains well-placed to benefit from the strong growth in AI and cloud adoption. As companies remain focused on integrating AI into their operations, the demand for sophisticated monitoring and observability tools can grow.

Parnassus Investments, an investment management company, released a Q4 2024 investor letter. Here is what the fund said:

“We also added several new positions, including two in Information Technology: Atlassian, a maker of innovative software that allows IT developers and other employees to seamlessly collaborate on complex projects, and Datadog, Inc. (NASDAQ:DDOG), a dominant cloud monitoring platform.

Datadog, a dominant cloud monitoring platform, should have outsized growth due to its category leadership, sticky product suite, best-in-class product innovation and highly regarded management team. We believe the market has misinterpreted cyclical headwinds, such as reductions in IT spending, as secular trends, and we see Datadog benefiting from growth in Cloud Infrastructure-as-a-Service.”

Overall, DDOG ranks 4th on our list of best long term growth stocks to buy according to billionaires. While we acknowledge the potential of DDOG as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.