Datadog-3 Software Stocks That Could Go Parabolic

Technology Sector Overview - Most technology stocks, including software stocks, are at record highs, with rallies accelerating in recent weeks [1] - A few software stocks are lagging despite their potential upside, presenting investment opportunities [2] Datadog (DDOG) - Datadog has a $40 billion market cap and offers observability products for enterprises managing large networks, servers, and cloud platforms [3][4] - The company's software is highly rated by Gartner, second only to Dynatrace in completeness and execution, and is particularly strong in cybersecurity [4] - Revenue is expected to grow 24% year-over-year, with another 22% growth projected for next year, and earnings are expected to increase from$ 1.65 to $1.95 per share [5] - Despite a 37% decline from its late-2021 high, the company's fiscal trajectory suggests strong future growth [3][6] HubSpot (HUBS) - HubSpot is a CRM software company that has grown to a close second to Salesforce in market share, with 25% fewer paying customers [9] - The company is recognized by Gartner as the world's best CRM in terms of execution and customer satisfaction, despite Salesforce's dominance [10] - HubSpot's revenue is expected to grow nearly 19% this year, with earnings growing even faster, indicating strong fiscal capacity [11] Microsoft (MSFT) - Microsoft has underperformed since July, failing to reach record highs like other tech giants, partly due to increased competition in AI [12][13] - Despite AI competition, Microsoft's cloud business is outgrowing competitors, including Amazon, and remains a significant revenue driver [15] - Revenue and earnings are consistently growing in the mid-teens and are expected to continue for several years [15] - Analysts remain bullish, with over 75% rating the stock as a strong buy and a consensus price target of$ 497.04, nearly 20% above the current price [17]