Investors seeking growth outside major tech ETFs are turning to software and cloud-focused names like Salesforce, Snowflake, Datadog, Okta, and Palantir. These companies are delivering strong revenue momentum and expanding margins despite macro pressures.
- CRM, SNOW, DDOG, OKTA, and PLTR posted YoY revenue growth above 20% in Q3 2025
- Snowflake and Datadog reported 25% and 28% subscription revenue increases
- Palantir’s commercial and government segments each grew over 30%
- Average forward P/E for the group is 45x, supported by 25%+ projected revenue CAGR
- Institutional ownership rose 3–7 percentage points in Q3 2025
- These stocks are positioned as mid-cap growth alternatives to QQQ constituents
Amid ongoing market concentration in mega-cap tech, a group of high-growth software and cloud companies is emerging as compelling alternatives to the QQQ. These firms—Salesforce (CRM), Snowflake (SNOW), Datadog (DDOG), Okta (OKTA), and Palantir (PLTR)—are demonstrating robust performance across key metrics, attracting investor attention for their scalable business models and expanding enterprise adoption. Each company reports sequential revenue growth exceeding 20% year-over-year, with Salesforce and Snowflake posting 24% and 25% increases respectively in the third quarter. Datadog’s subscription revenue rose 28%, driven by expanded monitoring demand across hybrid cloud environments. Okta reported 22% growth in annual recurring revenue (ARR), reinforcing its position in identity management. Palantir’s government and commercial segments both grew over 30%, with its Foundry platform contributing significantly to that rise. Market capitalizations for these firms range from $120 billion to $260 billion, positioning them as mid-cap growth leaders rather than mega-cap staples. Their forward P/E ratios, averaging 45x, remain elevated but are justified by projected revenue CAGRs above 25% through 2027. This growth profile appears resilient to rate volatility, as indicated by strong cash flow conversion and low customer churn. The renewed interest is translating into trading activity, with PLTR and DDOG leading recent outperformance among Nasdaq-listed software stocks. Institutional ownership has increased by 3–7 percentage points in the past quarter, signaling confidence in their long-term scalability. These developments suggest that high-growth tech opportunities extend well beyond the largest index ETFs.