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3 Volatile Stocks with Exciting Potential

DDOG Cover Image

While volatile stocks can be nerve-wracking, they often attract aggressive investors who see potential in the chaos. As a matter of fact, almost all mega-cap companies today started as volatile investments before proving their staying power.

Spotting the long-term winners in unpredictable markets takes skill, and our job at StockStory is to simplify the process for you. That said, here are three volatile stocks with massive upside potential.

Datadog (DDOG)

Rolling One-Year Beta: 1.36

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.

Why Will DDOG Beat the Market?

  1. ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
  2. Estimated revenue growth of 21.6% for the next 12 months implies its momentum over the last two years will continue
  3. Software platform has product-market fit given the rapid recovery of its customer acquisition costs

Datadog’s stock price of $105.77 implies a valuation ratio of 10.7x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Magnite (MGNI)

Rolling One-Year Beta: 2.05

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Is MGNI a Top Pick?

  1. Market share has increased this cycle as its 30.2% annual revenue growth over the last five years was exceptional
  2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
  3. Historical investments are beginning to pay off as its returns on capital are growing

Magnite is trading at $11.11 per share, or 12.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Dave (DAVE)

Rolling One-Year Beta: 2.02

Named after the biblical David fighting financial Goliaths, Dave (NASDAQ: DAVE) is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.

Why Are We Positive On DAVE?

  1. Annual revenue growth of 41.4% over the last two years was superb and indicates its market share increased during this cycle
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 137% over the last two years outstripped its revenue performance

At $168.85 per share, Dave trades at 12x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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