Being a technology investor has rarely been more challenging than in 2022. Most portfolios with a high concentration of tech stocks are likely deep in the red for the year, with many individual companies losing over half of their value.

But some really high-quality opportunities were discarded alongside the rest of the market, and that presents a unique chance for investors to pick them up at a steep discount to where they might otherwise be trading in more normal conditions. 

Datadog (DDOG 1.28%) is one of these discards. The company, which helps businesses make sense of their increasing amounts of data, raised its 2022 sales guidance three times since the end of last year. That places it in a small circle of technology companies actually growing faster than expected even in this tough economy. With Datadog stock trading down 59% from its all-time high, here's why investors might want to give this stock a closer look. 

Making the most of the cloud

Cloud computing technology is revolutionary for a few reasons. It allows businesses to migrate their operations online, and it powers the digital connections they have with their customers. But it comes with significant challenges, especially for companies that aren't used to running a digital ecosystem.

The cloud tends to generate mountains of data that need to be stored and managed, but that data also has significant value waiting to be unlocked by proper analysis. Not all businesses are equipped to extract those insights, but thanks to tools like Datadog, it's far less of a hurdle.

At-home exercise equipment maker Peloton Interactive uses Datadog to monitor its virtual classes, which thousands of users are typically interacting with at any one time. The company used the insights gathered through Datadog's dashboard to improve responsiveness by a factor of four when a Peloton customer is searching for an online class. Ultimately, Peloton management said the platform is key to improving Peloton's user experience.

Online rental and experience planning platform Airbnb deploys Datadog to collect and display data to create a stable metrics system it can trust and build on top of. The company said it gains valuable insights into consumer trends, which is important for a business that can depend heavily on seasonality. 

No economic downturn for Datadog

A consequence of the slowing economy is that many technology companies, including some of the world's largest, trimmed their revenue expectations for this year. But not Datadog -- it raised its 2022 revenue guidance three times, and it now expects to generate up to $1.63 billion. 

The most recent bout of optimism follows a stellar second-quarter result where the company grew its revenue by a whopping 74% year over year. It also reported that 2,420 customers spent a minimum of $100,000 annually, a 54% jump. 

Datadog is also on the cusp of profitability, which is an important milestone in an environment like this where investors are shunning loss-making enterprises. The company made $4.8 million in net income in the first six months of 2022, and while that's not an eye-popping amount, it beats the $20.7 million loss from the 2021 full year. 

In any case, Datadog can afford to stumble on that quest for consistent profits because it's supported by a rock-solid balance sheet with over $1.7 billion in cash, equivalents, and marketable securities. 

Why Datadog stock is a buy now

Datadog is one of very few companies taking an optimistic tone this year, and yet its stock price remains down 59% from its all-time high. That suggests a buying opportunity. 

Plus, the stock has the vote of 31 Wall Street analysts who gave it a consensus overweight (bullish) rating, according to The Wall Street Journal. Not a single analyst recommends selling, and 20 analysts have given Datadog stock the highest-possible buy rating. The stock could rise by 68% from where it trades today if it hits the analysts' average price target of $135.88, and one analyst set a price target of $188, representing a potential 132% upside. 

With a business on the cusp of profitability combined with the backing of professional analysts and thousands of high-spending customers, Datadog is one stock you might wish you'd bought on this dip.