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Motley Fool Identifies Datadog & CrowdStrike as Potential Doubling Stocks by 2026

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  //stocks-investing.news-articles.net/content/202 .. strike-as-potential-doubling-stocks-by-2026.html
  Published in Stocks and Investing on Tuesday, December 30th 2025 at 16:08 GMT by The Motley Fool

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Two Stocks Poised for Potential Doubling: A Look at Datadog & CrowdStrike in 2026 (According to The Motley Fool)

The Motley Fool recently published an article identifying two stocks they believe have the potential to double in value by 2026. While no investment is guaranteed, these selections – Datadog (DDOG) and CrowdStrike (CRWD) – are based on strong fundamentals, continued growth prospects within their respective sectors, and a reasonable valuation considering future potential. The article emphasizes that this isn't a prediction of certainty but rather an assessment of companies with compelling narratives and the right conditions for significant upside.

Datadog: Monitoring the Digital Landscape & Fueling Cloud Growth

The first stock highlighted is Datadog, a cloud-scale monitoring and analytics platform. For those unfamiliar, Datadog helps businesses understand how their applications are performing across various environments – from on-premise servers to public clouds like AWS, Azure, and Google Cloud Platform. It provides real-time insights into application performance, security, and user experience. The article points out that the shift towards cloud computing is a major tailwind for Datadog's growth. As more companies migrate their operations to the cloud (or adopt hybrid approaches), the need for robust monitoring solutions increases proportionally.

The Fool’s analysis emphasizes several key reasons for optimism regarding Datadog’s potential doubling:

• Consistent Revenue Growth: Datadog has demonstrated a history of impressive revenue growth, consistently exceeding expectations. While growth rates naturally moderate as companies scale, the article suggests that Datadog still possesses ample room to expand its customer base and deepen existing relationships.
• Land-and-Expand Model: This is a crucial element of Datadog’s success. Customers often start with a small initial deployment (the "land") and then gradually expand their usage across more teams, applications, and environments ("expand"). This recurring revenue model creates strong customer loyalty and provides a predictable stream of income.
• Product Expansion: Datadog isn't just about monitoring anymore. They’ve been aggressively expanding their product offerings to include security, observability (understanding system behavior), and other related services. This broader suite of tools increases the platform's value proposition for customers and creates more opportunities for cross-selling. The article references Datadog's recent acquisition of Matillion, a cloud data integration company, as an example of their strategic expansion into adjacent markets.
• Valuation Considerations: While not "cheap," the article argues that Datadog’s valuation isn't excessively high given its growth potential and market leadership position. The price-to-sales (P/S) ratio is a key metric cited, suggesting room for appreciation as future revenue justifies the current stock price.

CrowdStrike: Cybersecurity in an Increasingly Dangerous World

The second company on The Fool’s list is CrowdStrike, a leading cybersecurity firm specializing in endpoint protection and threat intelligence. In today's digital landscape, where cyberattacks are becoming increasingly sophisticated and frequent, CrowdStrike's services are more critical than ever. Their Falcon platform uses artificial intelligence and machine learning to detect and prevent threats across an organization’s entire network.

Here's why The Fool believes CrowdStrike could double by 2026:

• Growing Cybersecurity Market: The cybersecurity market is experiencing explosive growth, driven by the rising number of cyberattacks targeting businesses of all sizes. This creates a massive addressable market for CrowdStrike to capture.
• Recurring Revenue Model: Like Datadog, CrowdStrike operates on a subscription-based model, providing recurring revenue and predictable cash flow. This stability is attractive to investors.
• Falcon Platform's Effectiveness: The Falcon platform has consistently been recognized as one of the most effective cybersecurity solutions available. Its ability to proactively identify and neutralize threats gives it a competitive edge.
• Expanding Service Offerings: CrowdStrike isn’t just focused on endpoint protection; they are expanding their services to include cloud security, identity management, and other areas. This diversification reduces reliance on any single product line and opens up new revenue streams. The article mentions CrowdStrike's acquisition of NoSQL database security company, Vulcan Cyber, as a strategic move in this direction.
• Strong Customer Retention: High customer retention rates are a hallmark of successful cybersecurity companies. CrowdStrike’s ability to keep customers demonstrates the value and effectiveness of its platform.
• AI Integration: The article highlights that CrowdStrike is aggressively integrating AI into their Falcon platform, allowing for more proactive threat detection and response. This positions them well to combat increasingly sophisticated attacks.

Important Caveats & Risks

The Fool’s article doesn't shy away from acknowledging the risks associated with any investment. Here are some key considerations:

• Market Volatility: The stock market is inherently unpredictable, and external factors (economic downturns, geopolitical events) can significantly impact stock prices.
• Competition: Both Datadog and CrowdStrike operate in competitive markets. New entrants or aggressive pricing from rivals could erode their market share.
• Execution Risk: The companies must continue to execute effectively on their growth strategies. Any missteps in product development, sales, or marketing could hinder their progress.
• Valuation Risk: While the article suggests reasonable valuations currently, rapid changes in investor sentiment can lead to significant price corrections.

Conclusion: A Long-Term Perspective is Key

The Motley Fool’s analysis presents a compelling case for Datadog and CrowdStrike as potential doubling candidates by 2026. However, it's crucial to remember that these are speculative investments requiring a long-term perspective and a tolerance for risk. Thorough due diligence – including reviewing company financials, understanding the competitive landscape, and assessing your own investment goals – is essential before making any decisions. The article serves as a starting point for further research rather than a definitive buy recommendation.