Investing in High-Quality Growth Stocks: Palantir Technologies and Datadog

Two growth stocks to buy with $200 and hold forever are Palantir Technologies and Datadog. Palantir is a data analytics and AI player that helps government agencies and large corporations derive insights from vast amounts of data. Its Artificial Intelligence Platform is a significant growth catalyst, and the company has achieved rapid financial growth with a relatively small direct sales force. Datadog is another company with robust long-term growth prospects and has experienced rapid growth in new high-value deals and existing customer usage. Both stocks have strong fundamentals and are backed by fundamentally strong companies with robust long-term growth prospects.

Palantir Technologies (PLTR) and Datadog (DDOG) are two companies that have demonstrated robust growth potential and are well-positioned for long-term investment. With just $200, investors can start building a portfolio of stocks backed by fundamentally strong companies with robust long-term growth prospects.

Palantir Technologies

Palantir Technologies is a data analytics and artificial intelligence (AI) player that helps government agencies and large corporations derive insights from vast amounts of data. Its Artificial Intelligence Platform (AIP) is a significant growth catalyst, integrating large language models with real-world workflows and data systems through Palantir's proprietary ontology [1]. AIP's success has been at the heart of Palantir's financial growth, with revenues soaring 48% year over year to over $1 billion in the second quarter of fiscal 2025 [1].

The company's commercial revenues surged 93% year over year to $306 million, while government revenues climbed 53% year over year to $426 million [1]. Palantir is experiencing a rapid rise in new high-value deals and existing customers are increasing their usage once they experience the platform's capabilities [1]. The company is profitable and reported its sixth consecutive quarter of generally accepted accounting principles (GAAP) profitability [1].

Despite the robust growth potential, Palantir's sky-high valuation is making investors concerned. The stock trades at 132 times sales and 277 times forward earnings [1]. However, analysts expect revenues to rise 45.6% in fiscal 2025 and 33% in fiscal 2026 [1]. For investors willing to bet on Palantir's strong tailwinds, the current valuation might prove justified over time.

Datadog

Datadog's cloud monitoring and observability platform is increasingly becoming mission-critical for enterprises tracking their digital infrastructure and applications. As more companies shift to the cloud and adopt advanced AI technologies, it becomes imperative for them to track performance, cost efficiency, and errors in their digital infrastructure [1].

Datadog's revenue and earnings performance in the second quarter were impressive. Revenues grew 28% year over year to $827 million, primarily driven by increased service usage by existing customers [2]. The company ended the quarter with about 31,400 customers and roughly 3,850 generating $100,000 or more in annual recurring revenue (ARR), highlighting resilient enterprise demand despite broader software spending scrutiny [2].

Datadog is leveraging AI to strengthen its observability and monitoring platform. The company has launched autonomous AI agents to investigate and remediate alerts, fix coding issues, and analyze security signals without human intervention [2]. These upgrades complement an AI-native customer mix that has grown rapidly and reinforce the platform’s land-and-expand strategy across observability and security [2].

While shares have lagged broader tech over the past year, the combination of consistent top- and bottom-line beats, rising large-customer penetration, and higher full-year guidance supports an improving setup into the second half [2]. For investors comfortable with some volatility, Datadog could be a worthwhile pick now.

Conclusion

Both Palantir Technologies and Datadog are companies with strong fundamentals and are backed by fundamentally strong companies with robust long-term growth prospects. For investors willing to hold these stocks for the long term, both companies present compelling opportunities.

References

[1] https://finance.yahoo.com/news/2-growth-stocks-buy-200-090000288.html
[2] https://sherepricetarget.com/datadog-ddog-q2-tops-estimates-as-ai-native-demand-and-big-customer-growth-lift-outlook/