Prediction: 2 Growth Stocks That Will Be Worth More Than Block 2 Years From Now

Core Viewpoint - Block, the fintech company formerly known as Square, is facing significant growth challenges, with its market cap potentially being eclipsed by Datadog and Zscaler by 2027 due to their higher growth rates and market dynamics [1][4]. Block (Fintech Company) - Block's revenue grew at a compound annual growth rate (CAGR) of 55% from 2015 to 2021, driven by its digital payment platform and Cash app [1]. - From 2021 to 2024, Block's revenue growth is expected to slow to a CAGR of 11%, and further to 9% from 2024 to 2027 [2]. - The company currently has a market cap of $33.4 billion, valued at 22 times forward earnings estimates and 1.3 times this year's estimated sales [3]. - If Block meets analysts' expectations, its market cap could grow by about 22% to $40.7 billion by 2027 [3]. Datadog (AI and Software Monitoring) - Datadog addresses software application fragmentation by providing real-time monitoring and diagnostic data aggregation, which is less affected by macroeconomic headwinds compared to Block [6][7]. - From 2020 to 2024, Datadog's revenue grew at a CAGR of 45%, with a significant increase in large customers [8]. - Analysts expect Datadog's revenue and GAAP to grow at a CAGR of 21% and 20%, respectively, from 2024 to 2027 [9]. - If Datadog maintains its valuation and meets expectations, its market cap could increase by 50% from $31.5 billion to $47.3 billion by 2027 [9]. Zscaler (Cybersecurity) - Zscaler provides cloud-native "zero-trust" cybersecurity tools, which are more scalable and easier to maintain than traditional on-site solutions [10]. - From fiscal 2019 to fiscal 2024, Zscaler's revenue grew at a CAGR of 48%, serving over 7,500 customers, including 30% of the Forbes Global 2000 [11]. - Analysts expect Zscaler's revenue to rise at a CAGR of 21% from 2024 to 2027, with profitability anticipated by the final year [12]. - With a current market cap of $30.6 billion, Zscaler's market cap could grow about 45% to $44.3 billion by 2027 if it maintains its premium valuation [12].