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As Wall Street focuses on GPU manufacturers and AI model developers, a more subtle shift is underway in the software infrastructure sector, with significant trading potential.
The companies providing identity management, databases, application monitoring, and cloud security are experiencing surging demand as enterprises race to deploy AI applications at scale.
Four publicly traded software companies sit at the center of this buildout: Cloudflare (NET) surged more than 100% over the past year. Datadog (DDOG) jumped more than 30%. MongoDB (MDB) climbed 17%. Okta (OKTA) gained 9%.Â
These gains reflect a fundamental shift as AI applications require robust identity controls, specialized databases, real-time monitoring, and edge computing infrastructure.
Unlike traditional enterprise software cycles, the AI buildout is creating compressed timelines and massive deployment volumes. Companies are simultaneously securing AI agents, storing vector embeddings, monitoring LLM performance, and distributing AI inference across global networks.Â
This convergence is driving rapid revenue growth and extreme stock volatility as the market adjusts valuations for companies transitioning from traditional cloud services to AI-native infrastructure.
Two of these companies recently reported earnings: DDOG surged 23% after beating estimates, and NET announced a strategic acquisition to accelerate its AI platform.Â
The other two companies report in early December, creating another catalyst window as investors assess whether AI-driven growth can sustain current valuations.
In an effort to capitalize on the volatility within these stocks, Tradr ETFs offers active traders 2X leveraged ETFs for each of these stocks:
Tradr ETFs | ETF Symbol | Description |
| Tradr 2X Long NET Daily ETF | NETX | 200% leverage on Cloudflare stock |
| Tradr 2X Long DDOG Daily ETF | DOGD | 200% leverage on Datadog stock |
| Tradr 2X Long MDB Daily ETF | MDBX | 200% leverage on MongoDB stock |
| Tradr 2X Long OKTA Daily ETF | OKTX | 200% leverage on Okta stock |
High Beta and AI-Driven Catalysts
What makes these software infrastructure stocks particularly compelling for momentum traders is their elevated Beta, a key measure of volatility relative to the broader market. A Beta of 1.0 indicates a stock typically moves in line with the S&P 500, while readings above 1.5 suggest significantly higher swings.
NET currently sports a Beta above 2, meaning that when the market moves 1%, NET tends to move roughly 2%. MDB carries a Beta of 1.5, while DDOG posts a Beta of 1.2, all signaling strong volatility potential. Even OKTA, with a Beta of 0.8, demonstrates meaningful sensitivity during earnings periods and product announcements.
The AI infrastructure buildout creates multiple catalyst categories beyond traditional quarterly earnings. Partnership announcements with hyperscalers, new AI product launches, changes in enterprise IT spending patterns, and competitive dynamics with cloud giants all trigger sharp price movements.Â
With two companies having recently reported strong results and two more reporting in early December, the combination of elevated Beta readings and AI-driven catalysts creates compelling conditions for traders using 2X leverage.
Cloudflare (NET)
Cloudflare provides a connectivity cloud platform that protects and accelerates applications without requiring hardware installation or code changes. The company operates a global network spanning hundreds of cities, providing content delivery, DDoS protection, web application firewall, and edge computing services.Â
Cloudflare recently announced plans to acquire Replicate, an AI platform that enables developers to deploy and run AI models with minimal infrastructure complexity.
The Replicate acquisition will give Cloudflare access to over 50,000 production-ready AI models and accelerate its Workers AI platform, positioning the company to become a seamless end-to-end solution for AI application development. The deal targets developers who want to deploy any AI model globally with one line of code, abstracting away GPU hardware requirements and backend infrastructure complexity.
Cloudflare is up more than 100% over the past year with a Beta of 2, NET carries the highest volatility reading in the basket and has been the biggest winner. The stock demonstrates extreme sensitivity to news about AI infrastructure partnerships and product launches. The company reported earnings on October 30, 2025, showing quarterly revenue of $562 million, though it remains unprofitable with a net loss of $1.3 million as it invests heavily in AI capabilities and global network expansion.
The Tradr 2X Long NET Daily ETF (NETX) seeks double the daily exposure to NET's price action, amplifying the stock's natural volatility as Cloudflare integrates Replicate and positions itself as the leading AI development platform. For more information about NETX, CLICK HERE.
Datadog (DDOG)
Datadog operates a monitoring and analytics platform for developers, IT operations teams, and business users across cloud environments. The company's software-as-a-service platform integrates over 400 technologies including infrastructure monitoring, application performance tracking, log management, security monitoring, and continuous profiling. Datadog recently launched Bits AI Agents for SRE, LLM Observability features, and its MCP Server for connecting AI agents with data sources.
The company's focus on AI monitoring and security tools positions it to capture growing demand as enterprises deploy large language models and agentic AI systems. Datadog's TOTO foundation model and expanded AI experimentation capabilities give customers tools to monitor, secure, and optimize AI workloads across their infrastructure.
The stock is up more than 30% over the past year with a Beta of 1.2, DDOG recently demonstrated its volatility potential when shares surged 23% in a single day following its November 6, 2025 earnings report.Â
The company posted third-quarter revenue of $885.7 million, up 28% year over year, beating Wall Street estimates of $852.8 million. Fourth-quarter guidance called for revenue between $912 million and $916 million, far surpassing expectations of $887 million. The stock's 23% surge marked its second-best day ever, reflecting how AI-driven demand is accelerating growth.
The Tradr 2X Long DDOG Daily ETF (DOGD) targets 200% of DDOG's daily performance, turning the stock's earnings-driven volatility into amplified trading opportunities as Datadog expands its AI monitoring capabilities. For more information about DOGD, CLICK HERE.
MongoDB (MDB)
MongoDB provides a general-purpose database platform designed for modern application development. The company's document-oriented database accelerates development processes and offers both fully managed cloud service (MongoDB Atlas) and self-managed options (MongoDB Enterprise Advanced). MongoDB Atlas has become particularly relevant for AI applications, as its flexible schema design handles the varied data structures required for machine learning and large language model deployments.
The company continues expanding its AI-related features and positioning Atlas as a preferred database for storing vector embeddings and supporting retrieval-augmented generation (RAG) architectures. Multiple analysts recently raised price targets, with some reaching $440, reflecting optimism about MongoDB's role in the AI infrastructure stack.
Up 17% over the past year with a Beta of 1.5, MDB trades at a market capitalization exceeding $27 billion despite posting a net loss of $47 million in its most recent quarter. The company generated quarterly revenue of $591.4 million, demonstrating strong top-line growth even as it invests heavily in product development and market expansion. MongoDB is confirmed to report earnings on December 1, 2025, after market close, providing insight into whether AI workload adoption is accelerating Atlas revenue growth.
The Tradr 2X Long MDB Daily ETF (MDBX) aims for double the daily exposure to MDB's movements as the company positions itself as the database layer for AI applications. For more information about MDBX, CLICK HERE.
Okta (OKTA)
Okta provides cloud-native identity and access management services, enabling secure authentication across applications and devices. The company serves two key stakeholder groups: enterprise workforces and customer-facing applications. Okta's platform has become increasingly critical as organizations deploy AI agents and autonomous systems that require robust identity controls, permission management, and audit trails.
The company recently introduced new security products at its Oktane25 conference, including AI security capabilities targeting deployment by fiscal year 2027. With AI agents acting on behalf of users and accessing sensitive data, Okta's identity infrastructure plays a foundational role in securing AI applications at scale.
Up 9% over the past year with a Beta of 0.8, OKTA represents the most conservative volatility profile in the basket but still demonstrates meaningful swings during earnings periods and major product announcements. The company posted a quarterly profit of $67 million on revenue of $728 million, showing improved operating leverage as it scales. Okta is confirmed to report earnings after market close on December 2, 2025, offering traders a catalyst to assess whether AI-driven identity demand is translating into accelerated growth.
The Tradr 2X Long OKTA Daily ETF (OKTX) targets 200% of OKTA's daily performance as the company expands its identity platform to secure AI agents and autonomous systems. For more information about OKTX, CLICK HERE.
Trade the AI Software Infrastructure With Leverage
The AI buildout extends far beyond GPUs and model training. These four software companies provide the essential infrastructure that enables AI applications to function securely, scale globally, and operate reliably. Cloudflare is building the edge computing layer for AI inference. Datadog is creating the monitoring tools for LLM observability. MongoDB is positioning its database for vector storage and RAG architectures. Okta is securing AI agents with identity controls.
Recent earnings reports validate the opportunity. Datadog's 23% jump in a single day after beating estimates, along with MongoDB's analyst upgrades to a $440 target, show how the market is reevaluating valuations amid rising AI adoption. For active traders aiming to benefit from this volatile sector, Tradr's 2X leveraged ETFs offer targeted precision.
- NETX – Tradr 2X Long NET Daily ETF
- DOGD – Tradr 2X Long DDOG Daily ETF
- MDBX – Tradr 2X Long MDB Daily ETF
- OKTX – Tradr 2X Long OKTA Daily ETF
These funds reset their leverage daily, giving you fresh 2X exposure each trading day. When these software infrastructure stocks move 5% on earnings or partnership announcements, the leveraged ETFs target 10% moves, before fees.
If you plan on trading these leveraged ETFs, remember:
- Daily reset: Performance targets apply to single trading days only
- Volatility cuts both ways: Leverage amplifies both gains and losses
- Active management required: Designed for traders monitoring positions, not passive investors
- Concentration risk: Single-stock ETFs provide no diversification
The AI infrastructure buildout represents a multi-year opportunity as enterprises deploy AI applications across security, data management, monitoring, and edge computing. These four companies offer traders 2X leverage for high-conviction plays on the software layer powering AI adoption.
Leveraged ETFs Involve Significant Risks
Tradr ETFs are for sophisticated investors and professional traders with high conviction views and are very different from most other exchange-traded funds. Know the risks before you invest. The significant risks of leveraged and/or inverse ETFs include the risks of leverage, derivatives, and/or other complex investment strategies that they employ. These investments are designed for short-term trading for investors seeking daily, monthly or quarterly leveraged investment results.
Investors in the fund should: (a) understand the risks associated with the use of leverage; (b) understand the consequences of seeking daily, calendar month and calendar quarter inverse and leveraged investment results; (c) for short ETFs, understand the risk of shorting; (d) intend to actively monitor and manage their investment. Fund performance will likely be significantly different than the benchmark over periods longer than the specified reset period and the performance may trend in the opposite direction than its benchmark over periods other than that period.
The Funds seek leveraged investment results over a specific period and are intended to be used as short-term trading vehicles. The Funds pursue leveraged investment objectives, which means they are riskier than alternatives that do not use leverage because the Funds magnify the performance of their underlying security. The volatility of the underlying security may affect a Fund’s return as much as, or more than, the return of the underlying security.
The Fund will not attempt to position its portfolio to ensure it does not gain or lose more than a maximum percentage of its net asset value on a given trading day. As a consequence, investors in a Fund that seeks two times daily performance would lose all of their money if the Fund’s underlying security moves more than 50% in a direction adverse to the Fund on a given trading day.
ETFs involve risk including possible loss of principal. There is no assurance that the Fund will achieve its investment objective. Principal risks and other important risks may be found in the prospectus.
Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. To obtain a prospectus containing this and other important information, please visit www.tradretfs.com to view or download a prospectus online. Read the fund’s prospectus carefully before you invest.
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Distributed by ALPS Distributors, Inc, which is not affiliated with AXS Investments or its Tradr ETFs. AXI000800
The above is sponsored content. Barchart was paid up to thirty thousand dollars for placement and promotion of the content on this site and other forms of public distribution covering the period of October - December 2025. For more information please view the Barchart Disclosure Policy here.
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