In this second-round matchup, the cloud observability platform goes head-to-head against the digital banking innovator.
March 22, 2023
Welcome to our 7investing Market Madness competition!
Throughout this campaign, we’re matching popular stocks up against one another to determine which will be the best investment over the next three years. And then, by voting in the poll at the bottom of the article, you can help us determine which stock will go on to the next round.
Our first round is now completed and it was quite eventful. By the numbers, we saw upsets in six of the eight pairings. As a reminder, our rankings are based upon 2022 performance — where the top seed had the highest total investing return last year. And our scores/outcomes correspond to the actual voting results that came from our interactive Twitter polls.
Here is a full recap of our first round matchups and where we stand today:
Our first-round voting results suggest there is hope for a market recovery. 2022 was a market that rewarded stable Blue Chips (which is why Exxon, AbbVie, and Microsoft drew the top three seeds) but often punished smaller-cap and higher-beta stocks. It appears our voting audience has a much more bullish tone for the stock market’s upcoming three years.
Our March tournament marches onward, and our second-round matchups are quite a bit harder! The winners of the first round now go head-to-head in our Elite Eight pairings:
In this second-round matchup, the cloud observability platform Datadog (Nasdaq: DDOG) squares up against the digital banking innovator SoFi Technologies (Nasdaq: SOFI).
7investing advisor Steve Symington noted that Datadog’s stock price has already been volatile in 2023, crushing Wall Street estimates and yet issuing disappointing guidance. Yet there’s no shortage of digital transformations underway, and the cloud application monitoring platform seems poised to reward patient investors through long-term, sustainable growth.
Steve on the other side of the bracket believes that SoFi is a rare type of company. Its national banking charter differentiates it from other FinTechs because it gives it access to customer deposits, yet its continually-updated app and Tech Platform allow it to have much lower acquisition costs than traditional banks. The lingering headwind of student loan refinancing has created uncertainty during the past year, yet SoFi’s beaten-down stock price could significantly appreciate as its innovation translates into lifelong borrowers.
Which of these two stocks do you believe will provide the greater forward three-year return? Cast your vote in our poll below!
Welcome to our @7investing Market Madness tournament!
We're now in Round TWO, where the matchups are even harder. Matchup 3 is Datadog $DDOG vs $SOFI.https://t.co/VCJDp5SC6A
Which of these two companies will provide the greater investing return over the next 3 years?
— 7investing (@7investing) March 22, 2023
Our Market Madness tournament is in support of our new 7investing Starter membership, which we are giving away free during the entire month of March. To learn more about Starter — including how and why it’s already outperforming the S&P by 20 percentage points (as of today, March 22nd) — click here to automatically apply your “madness” promo code and to get started today!
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