Datadog-2 No-Brainer Stocks to Buy Now With $250 Before They Soar in 2025, According to Wall Street

Group 1: Datadog - Datadog provides observability software with a platform that includes around two dozen products for monitoring application and IT infrastructure performance, enhancing collaboration between development and operations teams [2] - Gartner recognized Datadog as a technology leader in observability and digital experience monitoring software, with demand for observability products projected to grow at 11% annually through 2028 due to increasing IT complexity from cloud migration and AI [3] - Datadog's fourth-quarter results exceeded expectations, with revenue rising 25% to $738 million and a 10% increase in customer count to 30,000, while average spending per existing customer also grew by 10% [4] - Despite strong performance, management provided disappointing guidance for 2025, expecting revenue growth of about 19% to$ 3.2 billion and a 6% drop in adjusted earnings to $1.70 per diluted share, leading to a stock price drop of over 10% [5] - The importance of observability software is expected to increase as enterprises deploy AI applications, with Morgan Stanley analyst suggesting that future spending will shift towards running inference on AI models, which could serve as a catalyst for Datadog [6] - Wall Street estimates adjusted earnings growth at 22% annually through 2027, although the current valuation of 71 times adjusted earnings appears expensive; however, Datadog has historically beaten consensus estimates by an average of 21% over the last six quarters, suggesting potential undervaluation for long-term investors [7] Group 2: The Trade Desk - The Trade Desk operates a leading independent adtech platform that assists media buyers in planning, measuring, and optimizing digital campaigns, leveraging advanced machine learning and measurement capabilities [8] - The company has a strong presence in retail media and connected TV (CTV), benefiting from its independent business model that avoids conflicts of interest by not owning ad inventory [9] - Among analysts, the median target price for The Trade Desk is$ 142 per share, indicating a potential upside of 75% from its current price of $81 [10] - The Trade Desk reported a 22% revenue increase to$ 741 million in the fourth quarter, which fell short of its guidance, but non-GAAP net income rose 44% to $0.59 per diluted share; the CEO attributed the shortfall to minor execution missteps [12] - Despite the disappointing results, Morgan Stanley analyst views the situation as a buying opportunity, emphasizing that the challenges faced were transitory and unrelated to competition or market size [13] - Wall Street anticipates earnings growth of 21% annually through 2026, with the current valuation of 49 times earnings being more reasonable compared to the previous 80 times earnings before the fourth-quarter report, suggesting that patient investors should consider buying [14]