• CNBC's Jim Cramer examined enterprise software company Datadog's Tuesday rally, saying it could mean success for other tech stocks.
• Datadog builds cloud monitoring and security products for companies, making use of generative artificial intelligence.

CNBC's Jim Cramer examined enterprise software company Datadog's Tuesday rally, saying the tech stocks' gains aren't over, and the company's success signals good news for peer stocks.

"You had to be curious, examining what Datadog had to say. You couldn't be dogmatic, trapped in negativity." Cramer said. "You had to believe in bowling, meaning the pin action that could come from hitting the front pin of the tech phalanx."

Datadog's stock surged nearly 30% after its Tuesday quarterly report beat Wall Street's earnings estimates and the company raised its full-year guidance, bolstering peers like MongoDB and Snowflake. Cramer said the stock's success also buoyed known partners like Meta, Shopify and ServiceNow, as well as tangential tech stocks.

Datadog builds cloud monitoring and security products for companies, making use of generative artificial intelligence. Cramer said enterprises may be realizing they can't afford to stay away from artificial intelligence and cybersecurity spending.

Cloud software companies like Datadog saw sales slow this year as many clients engaged in cost-saving measures. But the company's CEO indicated on Tuesday that its customers' optimization efforts may be moderating. Cramer said this change in Datadog clients' habits could mean fewer problems for other tech and enterprise software companies.

According to Cramer, today's tech rally indicates that last week's market gains won't be short-lived.

"I think last week was a transformational moment for the stock market — I've said that every single day  — and if you haven't changed your mind to adjust to the new reality, I do think there's a chance you're going to be left behind," he said. "Oh, there'll be declines — tomorrow, I don't know — but increasingly, those declines will spur more buying than more selling as we go to the end of the year."

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