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3 No-Brainer Growth Stocks to Buy With $250 Right Now
DatadogDatadog(US:DDOG) The Motley Foolยท2025-08-19 09:15

Core Insights - The S&P 500 has shown strong performance in 2025, up 10% year to date, following significant gains in 2023 and 2024, with a forward P/E above 22, higher than its 30-year average of 17 [1][2]. Group 1: Datadog - Datadog specializes in real-time monitoring for IT systems, particularly in cloud computing, and is well-positioned to benefit from increased AI spending [4][5]. - The company utilizes consumption-based pricing, which aligns with the growing demand for AI services from major cloud platforms, leading to revenue growth [5]. - Datadog's revenue growth accelerated to 28% last quarter, with a 120% dollar-based net retention rate, although profitability was impacted by AI spending [7]. - Shares are trading around $128, approximately 12 times sales expectations for the next year, making it an attractive investment opportunity [8][9]. Group 2: Atlassian - Atlassian focuses on enterprise software to enhance workforce collaboration, with over 300,000 customers and a significant increase in high-value deals [10]. - The company emphasizes product improvement and consumption-based pricing, which has led to a 40% year-over-year growth in premium and enterprise recurring revenue [12]. - Atlassian's shares are priced at about $167, resulting in a price-to-sales multiple of 8.4, indicating strong potential for revenue growth and operating leverage [13]. Group 3: The Trade Desk - The Trade Desk has experienced stock volatility due to operational challenges and a cautious revenue outlook, but second-quarter results were strong [14][16]. - The company offers ad placement across various platforms, gaining market share in digital ad spending, despite a weak outlook for the third quarter [17][18]. - Shares are currently trading at $54, representing an attractive valuation at less than 8.5 times forward sales estimates, making it a potential addition to growth stock portfolios [19].