15 Best Cloud Computing Stocks Heading into 2023

cloud computing stocks

The data centers are rented to companies like 37 Signals and include networked connections to major clouds. Clients put their servers in the space for the same reason they rent offices downtown. While the gains haven’t been as stellar as some of the highest-performing stocks on this list, its 40% year-to-date gains are clobbering S&P 500 and even the tech-heavy Nasdaq.

  • For the full year, Zendesk expects its revenue to rise 28% to $1.31 billion.
  • Although it isn’t a serial acquirer like Salesforce, Adobe has made some big moves to round out its software suite.
  • Today, Microsoft Azure accounts for 20% of the worldwide cloud infrastructure market.

Kurian said he’s focused on growth for now, with an eye toward profitability later. Additionally, the firm’s culture of innovation and encouragement of open source makes it an attractive choice for customers who prioritize these ideals. Microsoft’s third CEO, Satya Nadella, succeeding Bill Gates and Steve Ballmer, realized that the company needed to re-spark its innovation culture to remain competitive in the tech world.

Datadog (DDOG)

In addition, CEO Shantanu Narayen, in the company’s earnings call, says he believes Adobe has an ”immense market opportunity.” And that 2022’s targets ”demonstrate the strength of the underlying business.” The company’s total revenue in the full year 2020 came in at $2.92 billion, an 86% increase from the previous year. In a MariaDB survey, 40% of companies increased their cloud awareness for remote work. According to a report by Gartner, in 2024, IT spending on the cloud computing sector will grow 14.2% from 9.1% in 2020 following the coronavirus pandemic.

Medifirst Solutions stock opened the day at $0.00 after a previous close of $0.00. Medifirst Solutions is listed on the OTCCE, has a trailing 12-month revenue of around USD$64,805 and employs 1 staff. Fastly stock opened the day at $23.19 after a previous close of $23.47. Fastly is listed on the NYSE, has a trailing 12-month revenue of around USD$468.2 million and employs 1,112 staff.

That includes five Strong Buy ratings, eight Buy ratings, nine Hold ratings, one Sell and one Strong Sell. Twilio’s revenue for the full year 2020 is up 55% year-over-year to $1.76 billion. This would create a neutral hub/platform for knowledge workers to manage their content and workflows.

Their average price target is $292.48, implying nearly 6% upside potential. Companies are increasingly utilizing cloud computing services to access these new technologies. Additionally, others are shifting to cloud solutions like Infrastructure as a Service (IaaS) and Software as a Service (SaaS) to reduce costs and achieve operating efficiencies. Zendesk (ZEN) provides cloud-based https://1investing.in/ customer relationship management (CRM) services to more than 160,000 active clients. Salesforce.com (CRM -1.29%) is still the 800-pound gorilla of the CRM market, but its platform includes a lot of enterprise features that smaller businesses don’t need. Of the 29 analysts that have sounded off on MSFT over the past three months, 26 have the stock on their buy lists.

While Microsoft is usually seen as a software power, it’s now one of the world’s great telecommunications companies, in a way. Azure has data centers on every continent, including Africa, all linked by fiber cable. This capacity is managed to handle the local laws and regulations regarding use of customer data, creating an ever-higher barrier to entry for rivals. DocuSign (DOCU, $196.27) is among the more popular and well-known cloud stocks.

Cloud Computing Amidst the COVID-19 Pandemic

Cloud computing has revolutionized the way businesses operate, offering increased efficiency, scalability, and cost savings. As a result, the demand for cloud services continues to soar, creating a lucrative investment opportunity. However, not all cloud computer stocks are created equal, and choosing the right ones can be a daunting task. In fact, the company’s share price dropped roughly 20% in its first three months as a standalone firm, bottoming near $7 on Jan. 20, 2016. However, six years later, with a trailing one-year return of 24.4%, there are good reasons for investors to have HPE on their list of the best cloud stocks for 2022 and beyond.

cloud computing stocks

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

Best Cloud Computing Stocks Heading into 2023

The company specializes in over 170 products, including its hybrid cloud platform that combines platform as a service (PaaS) with infrastructure as a service (IaaS) which caters to small and large businesses. IBM recently announced the worldwide availability of its financial service-ready cloud platform to help decrease financial institutions’ risk. The cloud computing platform is in collaboration with Bank of America who first used the service in 2019. Nevertheless, for speculators, ZS could be a high-risk, high-reward opportunity among cloud computing stocks.

And with $4.1 billion in quarterly revenue – up 21% from the year prior – and $15.8 billion in full-year sales (+23% YoY), the company managed to achieve record Q4 and fiscal 2021 revenue levels. It was a rough end to 2021 for Creative Cloud parent Adobe (ADBE, $510.83), which fell more than 10% after its Dec. 15 fiscal fourth-quarter earnings report. Shares have declined along with the rest of the market so far in 2022, but that just means investors can buy one of the best cloud stocks at a discount.

Best Cloud Computing Stocks Right Now

Their average price target stands at $105.05, implying over 55% upside potential. DOCN was founded in 2012, and is an up-and-comer in the cloud computing space. To be more specific, DigitalOcean offers a cloud computing platform for developers, start-ups and small-to-medium size businesses. Its customers use the platform for everything from web and mobile applications to website hosting, e-commerce, media and gaming, personal web projects, managed services and more. As such, Shopify occupies an important place on this list of the best cloud stocks for 2022. ”Shopify is well positioned as the leading cloud-based commerce platform,” says Baird analyst Colin Sebastian (Outperform).

  • And on top of that, the company currently pays a 2.9% dividend yield – more than double the yield of the S&P 500.
  • Cornerstone’s Milan expects advertising growth to slow in the second half of 2020.
  • Fortune Business Insights forecasts that revenue generated from cloud computing will grow from $677.95 billion in 2023 to $2.43 trillion by 2030, representing a compound annual growth rate (CAGR) of 20%.

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer’s applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet. We round up a selection of stocks in or related to the cloud computing industry, weighting the list more heavily towards popular mid- and large-cap US stocks. This article is for informational purposes only, and it is not intended to be investment advice. Read our editorial guidelines and public equities research methodology to learn more about how we selected the best cloud computing stocks. Every company in every industry can benefit from cloud computing because they use technology to conduct business operations.

The company continues to see increased workloads and has made efforts to capture more faster. Additionally, it has announced several features, including Atlas Stream Processing, Relational Migrator and Atlas Vector Search, that will enhance revenue growth. Atlas Stream Processing enables developers to work with streaming data for sophisticated event-driven applications. The company will benefit from the adoption of artificial intelligence in the enterprise. As AI systems become widely used in the enterprise, more memory and storage will be required. Cloudflare’s revenue increased 50% to $431 million in 2020, and it anticipates 46%-47% sales growth this year.

Daniel Milan, managing partner of wealth manager Cornerstone Financial Services, says that while FSLY isn’t profitable yet, it’s well positioned for long-term growth. When Fastly customers such as Shopify sign alliances with companies like Walmart (WMT), Fastly benefits. ”Over the next year, we suspect Fastly will be able to gain an even larger share of the vast content delivery network market, which will be worth an estimated $22 billion by 2024,” Milan adds. DocuSign revenues grew 39% in 2019, and growth is continuing in the pandemic, as the need for working at home makes it harder to get physical signatures. This has helped the stock to a 133% gain for the first half of 2020, though DOCU shares now trade at a wild 240 times forward-looking earnings estimates. Investors are willing to pay above analysts’ price targets because it’s ”a clear winner in a winning sector,” says Victoria Greene, founding partner at G Squared Private Wealth in College Station, Texas.

Oracle Stock Sinks 14% On Lackluster Earnings – Investor’s Business Daily

Oracle Stock Sinks 14% On Lackluster Earnings.

Posted: Tue, 12 Sep 2023 20:40:00 GMT [source]

For instance, the company features a stout balance sheet, with an Altman Z-Score of 11.3, indicating extremely low bankruptcy risk within the next two years. Operationally, the company benefits from a three-year revenue growth rate of 18.1%, outpacing 72.5% of the software industry. The secret to this is the Azure cloud, which represented most of its $16.9 billion capital budget in 2019. Of course, Microsoft has the financial wherewithal to do this – it boasted cash and short-term investments worth more than $137 billion at the end of March.

Best Cloud Stocks to Buy for Rapid Growth

This is in spite of ramping up new growth initiatives like its FlashBlade//E device for storing massive amounts of unstructured data. The higher performance FlashBlade//S also continues to win over lots of new customers, including landing a big new deal last quarter for a customer working on a generative AI project. As a result, most of the big players in the enterprise-grade data storage market, like Dell and Hewlett-Packard Enterprise, have been reporting declining sales of their storage products. This could land Pure Storage (PSTG -2.56%) on your radar as a potential top beneficiary of advancing computer needs.

cloud computing stocks

Like most verticals in the technology environment, Big Tech companies lead the charge, and it’s no different when it comes to cloud computing. Software-as-a-Service (SaaS) – this offering provides users with access to a vendor’s cloud-based software and applications via a subscription model. Cloud computing is the delivery of on-demand computing services — from applications to storage and processing power — typically over the internet and on a pay-as-you-go basis. Alibaba has been restructuring itself into six business units with the aim of eventually spinning most of them off and listing them to maximize shareholder returns. Alibaba said it will invest $1 billion in a technology fund Zhang will establish to support the firm’s strategies for future growth. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

But right now you’re paying barely two times the revenue for a stock that dominates its markets, including the world’s largest technology market. Companies like Salesforce.com (CRM) that offer south korea stock index subscription-based software-as-a-services (SaaS) arrived before the term cloud computing was coined. Many SaaS companies are now working with AWS and other cloud vendors to reach new markets.

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