Bank of America (BAC) just told clients which software stock it wants to own going into earnings season. The pick is Datadog (DDOG), the cloud monitoring company that reports second-quarter results on August 6. BofA named Datadog its top software pick and kept its Buy rating. Here is what BofA sees, and what still has to happen for the stock to reward the people buying it now. BofA also flagged three things supporting the call: healthy demand signals, steadier trends around large customer renewals, and stronger positioning in monitoring AI systems.