Ahead of the Fed meeting this week, the stock market is witnessing significant volatility, and tech stocks have been on a downtrend on investors’ concerns over looming interest rate hikes. However, the big data segment of the broader technology sector is well-positioned to continue growing as enterprises rely more on data-driven decision-making, analytics, and artificial intelligence (AI).
With remote lifestyles becoming the new normal and with continuing technological advancements, the demand for big data should continue increasing. According to a Fortune Business Insights report, the global big data analytics market is expected to reach $549.73 billion in 2028, growing at a 13.2% CAGR.
Given this backdrop, Wall Street analysts expect big data stocks Datadog, Inc. (DDOG), MongoDB, Inc. (MDB), and Workiva Inc. (WK) to rally more than 50% in price in the coming months.
Datadog, Inc. (DDOG)
DDOG in New York City is a monitoring and security platform for cloud applications. It provides a monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally.
On Jan.5, 2022, DDOG announced a global strategic partnership with Amazon Web Services, Inc. (AWS). Ilan Rabinovitch, Senior Vice President, Product & Community at DDOG, said, "This extended partnership with AWS will help speed the pace of innovation for customers using AWS and Datadog, and we are excited to provide deeper product alignment and go-to-market initiatives to ultimately benefit our customers."
DDOG’s revenue increased 74.9% year-over-year to $270.49 million for the third quarter, ended Sept. 30, 2021. Its gross profit came in at $207.16 million, up 71.6% year-over-year, while its net loss was $5.48 million, compared to $15.15 million in the previous period. Also, its loss per share came in at $0.02, versus $0.05 in the year-ago period.
Analysts expect DDOG’s revenue and EPS to grow 41.6% and 45%, respectively, year-over-year to $1.41 billion and $0.58for fiscal 2022. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 21.5% in price to close Friday’s trading session at $125.55. Wall Street analysts expect the stock to hit $204.71 in the near term, which indicates a potential 63.1% upside.
MongoDB, Inc. (MDB)
MDB is one of the leading modern, general-purpose database platforms specially designed to unravel the power of software and data for developers. The New York City-based concern has more than 31,000 customers in over 100 countries.
On Dec. 6, 2021, Dev Ittycheria, President and CEO, MDB, said, "We believe a key driver of our success has been the early, but growing, trend of customers choosing MongoDB as an enterprise standard for their future application development. Our success across industries and a wide variety of use cases puts us in a great position to build even deeper relationships with our customers over time."
For its fiscal third quarter, ended Oct. 31, 2021, MDB’s subscription revenue increased 51.2% year-over-year to $217.87 million. The company’s non-GAAP net loss came in at $7.2 million, compared to $18.21 million in the year-ago period. Furthermore, its non-GAAP loss per share came in at $0.11, compared to $0.31 in the previous period.
MDB’s revenue is expected to be $849.36 million in its fiscal 2022, representing a 43.9% year-over-year rise. The company’s EPS is also expected to increase 26.3% for fiscal 2022. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 25.2% in price to close Friday’s trading session at $375.57. Wall Street analysts expect the stock to hit $587 in the near term, which indicates a potential 56.3% upside.
Workiva Inc. (WK)
Together with its subsidiaries, WK in Ames, Iowa, provides cloud-based compliance and regulatory reporting solutions worldwide. It simplifies complex work for thousands of organizations worldwide and is trusted for its open, intelligent, and intuitive platform to connect data, documents, and teams.
On Nov. 3, 2021, Marty Vanderploeg, CEO, said, “We continue to build on our market leadership and the increased demand for financial and ESG reporting solutions that drive digital transformations.”
WK’s subscription and support revenue increased 30.4% year-over-year to $98.91 million for its fiscal third quarter, ended Sept. 30, 2021. The company’s non-GAAP net income came in at $8.71 million, up 251.6% year-over-year, and its non-GAAP EPS was $0.15, up 200% year-over-year.
For its fiscal 2022, analysts expect WK’s revenue to be $531.34 million, representing a 20.8% year-over-year rise. The company surpassed the Street’s EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 10% in price to close Friday’s trading session at $110.97. Wall Street analysts expect the stock to hit $169.25 in the near term, which indicates a potential 52.5% upside.
DDOG shares fell $5.30 (-4.22%) in premarket trading Monday. Year-to-date, DDOG has declined -29.51%, versus a -7.79% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
3 Big Data Stocks That Will Rally More Than 50%, According to Wall Street StockNews.com
