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Snowflake SNOW and Datadog DDOG are major players in the cloud computing industry, offering data analytics and observability solutions that help enterprises monitor and analyze their cloud infrastructure. While Snowflake specializes in data warehousing and analytics, Datadog focuses on infrastructure monitoring and observability.
Per the Grand View Research report, the global cloud computing market size was valued at $752.44 billion in 2024 and is expected to witness a CAGR of 20.4% from 2025 to 2030. Both SNOW and DDOG are likely to benefit from the significant growth opportunity highlighted by the rapid pace of growth.
SNOW or DDOG — Which of these Cloud stocks has the greater upside potential? Let’s find out.
The Case of SNOW Stock
SNOW is benefiting from strong adoption and increasing usage of its platform, as reflected by a net revenue retention rate of 126% as of Jan. 31, 2025. The number of customers that contributed more than $1 million in the trailing 12-month product revenue increased from 455 as of Jan. 31, 2024, to 580 as of Jan. 31, 2025, respectively.
Snowflake’s expanding portfolio has been noteworthy. Products like Apache Iceberg and Hybrid tables, Polaris, Cortex Large Language Model and ML functions are helping Snowflake win new clients. As of Jan. 31, 2025, SNOW had 11,159 customers, increasing from 9,384 customers as of Jan. 31, 2024. The clientele included 745 of the Forbes Global 2000 and accounted for 45% of SNOW’s fiscal 2025 revenues of $3.6 billion, up 29% from fiscal 2024.
Building on this momentum, in April 2025, Snowflake enhanced its AI Data Cloud by integrating core capabilities with Apache Iceberg tables. This enabled seamless open lakehouse strategies, improved query performance, comprehensive security, and data sharing while advancing open-source contributions.
Further strengthening its offerings in May 2025, SNOW announced the expansion of its AI Data Cloud with automotive-specific solutions, driving digital transformation and AI innovation across the automotive industry.
Snowflake’s investments in artificial intelligence and machine learning, including the introduction of Cortex AI and its integration with models from OpenAI and Anthropic, drove customer engagement. More than 4,000 customers are using Snowflake’s AI and ML technology weekly.
The Case of DDOG Stock
DDOG benefits from strong customer demand for offerings in modern observability, cloud security, software delivery and cloud service management. In the first quarter of 2025, Datadog had 3,770 customers with an annual run rate (ARR) of $100,000 or more, up from about $3,340 in the year-ago quarter. These customers generated about 88% of the total ARR.
New cloud-related products, such as Flex Logs and Database Monitoring, achieved $50 million in ARR milestones quickly in the first quarter of 2025, reflecting strong demand for advanced log management and database observability in cloud environments.
Acquisitions have also played an important role in expanding DDOG’s portfolio. In May 2025, Datadog announced the acquisition of Eppo, a feature flagging and experimentation platform, which will be tightly integrated with Datadog’s existing Product Analytics suite.
The company also acquired Metaplane, an end-to-end data observability platform, in April 2025. The platform provides advanced machine learning-powered monitoring and column-level lineage to prevent, detect and resolve data quality issues across a company’s entire data stack.
Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure, and Amazon Web Services, remain a key growth driver, alongside an expanding portfolio.