Growth Stocks to Watch Amid Tariff Concerns and Market Volatility

Investors should consider three promising growth stocks including AppLovin and Datadog despite potential market disruptions from tariffs. Short-term volatility may present buying opportunities for long-term gains.

Date: 07-05-2025

AI Rating: 7

Analysis of Key Stocks: AppLovin, Datadog, and ServiceNow
While the report highlights concern over tariffs affecting growth stocks, it also shines a light on three companies positioned to outperform in the coming decade.

AppLovin: The company is not reporting a conventional earnings per share (EPS) figure, but it is experiencing significant revenue growth, with expectations of a 20% compound annual growth rate (CAGR) from 2024 to 2027. The company's EBITDA is predicted to grow at a staggering 31% CAGR in the same period, suggesting a strong operational performance that adds optimism regarding profit margins. However, the volatile environment due to tariffs could lead to short-term fluctuations in stock performance, but the long-term trajectory appears promising, primarily driven by its focus on AI and advertising.

Datadog: With a 2024 revenue growth of 26% and nearly quadrupled net income, Datadog’s performance is impressive. The projected 20% CAGR for both revenue and EPS until 2027 underscores a sustained demand for observability tools amid an expanding digital landscape. This positioning, coupled with its enterprise value standing at $33 billion, indicates a moderately valued stock that could prove to be a valuable player in the tech sector, insulated from the trade war’s impact due to minimal exposure to China.

ServiceNow: The report notes an impressive revenue rise of 22.5% and a 29% increase in adjusted EPS for 2024. Its projected revenue and EPS growth rates of 19% and 27% respectively till 2027, alongside its enterprise value at a premium 59 times earnings, indicate its resilience against economic downturns and its potential to provide consistent returns in both economic climates.

**Conclusion:** While tariffs may present risks to short-term stock valuations, these three companies demonstrate robust growth metrics and forward-looking potential that could yield substantial returns for long-term investors. Their EPS growth, revenue performance, and overall market alignment offer sound reasons for optimism in the face of broader market uncertainties.

Stocks: APP DDOG NOW