Shares of monitoring and analytics platform provider Datadog (NASDAQ:DDOG), database specialist MongoDB (NASDAQ:MDB), and cloud-based marketing solutions company HubSpot (NYSE:HUBS) all jumped sharply on Wednesday. As of 1 p.m. EST, all three stocks were up about 8%.
The three stocks' gains are likely primarily fueled by a bullish day in the overall market as the Street digests a tight race for the U.S. presidential election. At the time of this writing, the S&P 500 was up 3.1%.
Many tech stocks, however, are gaining even more rapidly than the overall market. This is captured by the tech-heavy Nasdaq Composite's 4.1% gain at the time of this writing. Meanwhile, lots of tech growth stocks like Datadog, MongoDB, and HubSpot are rising even more sharply on Wednesday.
This broader-market momentum explains these three stocks' big gains today.
These stocks' gains come amid the heat of the earnings season, when many tech stocks will be reporting their quarterly results. In fact, HubSpot is set to report its third-quarter results after market close tomorrow. Of these three stocks, Datadog is next in line after HubSpot to report its quarterly earnings, scheduled to report third-quarter results after market close on Tuesday, Nov. 10. Though MongoDB hasn't put a date to its next earnings report, it usually posts it sometime in the first half of December.
While these three stocks' momentum could continue, investors shouldn't count on it. As the market digests election news, there could be significant volatility ahead in either direction. Moreover, Datadog's earnings report tomorrow could easily send the stock sharply higher or lower.
All three of these companies are growing rapidly, putting them squarely in the camp of other hot growth stocks. Datadog, HubSpot, and MongoDB grew their revenue by 68%, 25%, and 39% year over year, respectively, in their most recent quarters. Each of these companies is benefiting from the secular tailwind of accelerating digital transformations -- a catalyst that was strong before the coronavirus pandemic but has picked up momentum as people are spending more time at home.
As HubSpot CEO Brian Halligan noted in the company's second-quarter earnings release, "The world is evolving this year -- from offline to online, from old to new -- at a far greater pace than anyone could have expected."
Analysts are expecting more strong growth from all three companies during the second half of the year.