The Nasdaq Composite recently entered a new bull market, with an annual return of 31% during bull markets since 1990. Meta Platforms is enhancing its advertising business with AI tools, indicating a 29% upside. Datadog, a leader in observability software, has a 62% upside according to Wall Street.

President Trump’s tariffs briefly dropped the Nasdaq into a bear market last year, but it quickly rebounded into a new bull market due to excitement about artificial intelligence. The Nasdaq has historically seen substantial returns during bull markets, hinting at potential upside in 2026 for investors in Meta Platforms and Datadog.

Meta Platforms owns popular social media networks and is a leading ad tech company. Heavy investment in AI product development has led to deeper engagement and better ad performance. Meta’s AI assistant has over 1 billion users and is integrated with smart glasses for future opportunities.

Meta reported strong financial results in Q3, with revenue increasing to $51 billion. Despite a stock drop post-report due to aggressive AI development plans, Meta’s stock is currently trading below its record high, presenting an opportunity with a 29% upside potential. Datadog, a leader in observability software, also reported solid financial results in Q3.

Datadog’s observability and security software, with embedded machine learning capabilities, has led to its success in consolidating observability tools. The company’s focus on generative AI and AI agents for incident resolution have driven growth and customer engagement, with a 62% upside potential according to Wall Street analysts.

Considerations before investing in Meta Platforms include Stock Advisor’s top 10 stock picks for potentially high returns. Past recommendations like Netflix and Nvidia have shown significant returns, highlighting the success of Stock Advisor’s picks. Stock Advisor boasts a total average return of 966%, outperforming the S&P 500.

Read more at Yahoo Finance: 2 AI Stocks to Buy Now, According to Wall Street