(NASDAQ: GOOG) (NASDAQ: GOOGL) and Datadog (NASDAQ: DDOG) represent two very different ways to profit from the secular growth of the cloud and AI markets. Alphabet's Google owns the world's most popular search engine and third-largest cloud infrastructure platform. Its sprawling ecosystem also houses YouTube, Android, Chrome, Gmail, Google Docs, and its other cloud-based services. Datadog collects diagnostic data from an organization's entire software infrastructure in real time, then aggregates all of that information onto unified dashboards for IT professionals.

Both companies faced tough macro headwinds over the past 12 months, but Alphabet's stock still rallied 33% as Datadog's stock slumped 7%. Let's see why the diversified tech giant outperformed the cloud-based observability software provider by such a wide margin, and if it will remain the better buy for the foreseeable future.

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Source Fool.com