Datadog vs. Fastly: Which Cloud Tech Stock Is a Better Buy for 2027?

As cloud environments grow more complex, choosing between Datadog Inc. (NASDAQ:DDOG) and Fastly Inc. (NASDAQ:FSLY) requires balancing high-growth software monitoring against edge computing specialized for high-speed content delivery.

Datadog specializes in cloud observability, helping developers monitor application performance and security. Fastly operates an edge cloud platform designed to speed up digital experiences by moving processing closer to the user. Both companies play critical roles in modern infrastructure, yet they appeal to different types of investors.

In its latest annual report, filed for the fiscal year ended Dec. 31, 2025, Datadog reported serving roughly 32,700 customers globally. It helps organizations monitor infrastructure and application performance through a Software-as-a-Service model. In late 2025, one large customer contributed seven percentage points of revenue growth, highlighting how significant single accounts are for many tech stocks today.

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