Economic uncertainty has caused the stock market to crash this year. The Nasdaq Composite has tumbled 36% from its high, leaving the tech-heavy index deep in bear market territory. But a handful of Wall Street analysts see that downturn as an opportunity to buy Cloudflare (NET -0.78%) and Datadog (DDOG -0.37%).

Presently, there are 22 analysts with price targets on Cloudflare, and the lowest estimate is $50 per share. That implies 32% upside from its current price. Similarly, 26 analysts have a price target on Datadog, and the lowest estimate is $82 per share. That implies 22% upside from its current price.

In both cases, Wall Street is effectively saying there is no downside for shareholders. Of course, it is always possible to lose money in the stock market, but the bullish sentiment among analysts is noteworthy nonetheless. Cloudflare and Datadog currently trade at big discounts to their historical valuations, and that creates an attractive buying opportunity for patient investors.

Cloudflare: A leader in content delivery and cloud developer tools

Cloudflare provides cloud services and developer tools. Its platform accelerates and protects corporate applications and infrastructure, while eliminating the need to maintain complicated network hardware in private data centers. Cloudflare shares a direct connection with every major internet service provider and cloud provider, which positions its platform within 50 milliseconds of 95% of internet users worldwide.

That network architecture gives the company an advantage. Cloudflare is the fastest cloud provider in North America, Australia, Japan, and the majority of South America and Europe, topping rivals like Amazon Web Services and Fastly. Not surprisingly, it ranks as the market leader in content delivery network software, according to G2 Grid. But Cloudflare has distinguished itself in other areas as well.

Last year, Forrester Research recognized Cloudflare Workers as the market leader among edge development platforms, citing its speed and intuitive interface as key advantages. This year, Cloudflare redoubled its leadership position with new storage services. It announced D1 database for structured data in May, and it launched R2 Storage for unstructured data in September. Those products extend the utility of the Workers platform, enabling developers to build applications and websites without relying on external storage solutions.

Financially, Cloudflare is growing very quickly. Its customer count increased 18% to 156,000 over the past year, and the average customer spent 24% more during that time. In turn, third-quarter revenue climbed 47% to $253.9 million, and the company generated $42.7 million in cash from operating activities, up from a loss of $6.9 million in the same period last year.

Looking ahead, management puts its addressable market at $135 billion by 2024, meaning Cloudflare has hardly tapped its massive potential. Better yet, management says annualized revenue will grow fivefold to $5 billion over the next five years. That implies top line growth of 38% per year through 2027.

With that in mind, shares look relatively cheap at 13.7 times sales, and that valuation is an absolute bargain compared to the three-year average of 41.7 times sales. That's why this growth stock is a buy for long-term investors.

Datadog: A leader in observability software

Datadog provides monitoring and security software. Its platform analyzes signals produced by applications, networks, and infrastructure to help businesses keep their IT environments performing and secure. Datadog simplifies adoption with 600 prebuilt integrations, and its artificial intelligence (AI) engine Watchdog accelerates workflows by predicting issues and automating root cause analysis.

In June, research company Gartner recognized Datadog as the leader in application performance monitoring and observability for the second consecutive year, citing its Watchdog AI engine and its broad portfolio as key strengths. Not surprisingly, the company also enjoys a strong market presence in other observability software verticals, including cloud infrastructure monitoring and network monitoring.

Datadog recently issued a solid third-quarter earnings report. Its customer count climbed 28% to 22,200, and the average customer spent 30% more. In turn, revenue increased 61% to $437 million, and cash from operating activities rose 24% to $83.6 million. But Datadog has plenty of room to run in the coming years.

The company puts its addressable market at $62 billion in 2026, and its track record for rapid innovation should keep it on the cutting edge of observability software. In fact, Datadog recently introduced Cloud Cost Management, a product that helps businesses understand their cloud expenses by attributing spend to specific applications and services. That functionality is particularly relevant in the current economic environment, as it can help businesses operate more efficiently.

Currently, shares trade at 14.1 times sales, a steep discount compared to the three-year average of 38.6 times sales. That makes this growth stock an attractive investment right now, though it's worth reiterating the fact that every stock has downside risk.

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