We recently published a list of 10 High Growth Cybersecurity Stocks To Buy In this article, we are going to take a look at where Datadog, Inc. ( NASDAQ: DDOG ) stands against other high growth cybersecurity stocks to buy.
The cybersecurity industry is experiencing unprecedented growth, fueled by increasing cyber threats, the expansion of cloud computing, and the adoption of artificial intelligence ( AI ) in security measures. Global crime damages are projected to rise to$ 10 trillion annually by 2025, upward from$ 3 trillion in 2015, making security one of the most crucial sectors in the modern era. As attacks grow in speed and intelligence, businesses, governments, and individuals are investing heavily in security solutions to lessen risks.
The global cybersecurity market is expected to grow from$ 172.24 billion in 2023 to$ 562.72 billion by 2032, reflecting a compound annual growth rate ( CAGR ) of approximately 14.3 %, according to a report by Fortune Business Insights. This rapid growth is driven by increased saving across sectors, particularly in industries such as finance, medical, and state, where data protection is paramount.
The fall of ransomware attacks is a more accelerating of the demand for cybersecurity solutions. Ransomware problems have significantly increased in recent years, with 2024 marking a record high of 5, 263 incidents—the highest level observed since 2021 according to a new report from security consulting firm, NCC Group. Big companies and critical equipment are the targets, with some ransom payments reaching tens of millions of dollars. Colonial Pipeline, for instance, paid$ 4.4 million in Bitcoin following a damaging attack in 2021, underscoring the need for strong protection measures.
Additionally, spending on sky security is growing exponentially. According to Gartner, global information security end-user spending is projected to total$ 212 billion in 2025, marking a 15.1 % increase from$ 183.9 billion in 2024. A significant contributor to the rise in cloud security spending is the integration of artificial intelligence ( AI ) into cloud infrastructures. A recent survey in the 2025 Cloud &, AI Index indicates that 89 % of U. S. IT decision-makers plan to boost their cloud budgets in 2025, primarily to support AI workloads
The security sector continues to struggle despite a significant skills shortage. According to the 2023 ISC2 Cybersecurity Workforce Study, the global security labor reached 5.5 million experts, an 8.7 % increase from the previous year. Despite this expansion, the study found that there was a 4 million professional workforce gap that was required to adequately protect an organization’s crucial resources.
We used a stock screener to compile a list of the top 10 High Growth Cybersecurity Stocks to Buy in order to find businesses with a market cap of more than$ 2 billion and at least 20 % revenue growth over the previous five years. From this choice, we finally narrowed down the top 10 companies based on the level of wall fund interest. In Q4 2024, these stocks were ranked based on attitude from hedge funds.
Why do we care about the securities that hedge funds invest in? Our research has demonstrated that by imitating the best wall cash ‘ leading stock picks, we can outperform the market. 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 ( ).
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Variety of Hedge Fund Holders: 83
Datadog, Inc. ( NASDAQ: DDOG ) is a leading observability and security platform designed for cloud applications. The bank’s collection of items, which are flexible and scalable, can be used as a single or multiple units, allowing for businesses of all sizes.
In December 2024, the company introduced a modern cloud Security Information and Event Management ( SIEM) solution, enhancing real-time threat detection and cost efficiency for enterprises. In February 2025, the company announced the opening of membership for its highly anticipated DASH 2025 event, set for June 10-11 in New York, where business leaders from Redfin, Toyota, and Volkswagen may discuss advancements in AI, security, and performance marketing.
Datadog ( NASDAQ: DDOG ) reported strong Q4 2024 financial results, with revenue reaching$ 738 million, marking a 25 % year-over-year increase. The business managed to keep its strong balance sheet, which included$ 4.2 billion in cash, while generating$ 265 million in operating cash flow and$ 241 million in free cash flow. On the business front, Datadog ( NASDAQ: DDOG ) grew its$ 1 million + ARR customers by 17 % to 462, while its$ 100K ARR customers rose by 13 % to 3, 610. It is one of our list’s top substantial growth stocks.
Fatima Boolani, a senior analyst at Citigroup, has maintained a Strong Buy rating for the stock while lowering the target price from$ 170 to$ 165.
Nevertheless, DDOG ranks 1st , on our list of great rise security stocks to purchase. While we acknowledge the value of DDOG as an investment, we are more convinced that some AI companies have greater potential for delivering higher profits and doing so in a shorter amount of time. Check out our report about the , cheapest AI property if you’re looking for an AI property that is more appealing than DDOG but that trades at less than 5 times its profits.
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