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Datadog (DDOG) has soared 315% since its 2019 IPO and is set to join the S&P 500 on July 9. The company's robust underlying fundamentals have fueled its gains, with revenue up 694% and net income up 2,670%. Despite its premium valuation, many believe the runway ahead is long for Datadog, driven by the ongoing digital transformation and increasing use of cloud computing and AI. The company's sophisticated monitoring and analytics platform continuously tracks cloud-based systems, processes millions of data points every hour, and notifies developers of issues before they result in critical downtime.

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