To list the 12 Best Cloud Computing Stocks to Buy According to Analysts, we conducted extensive research and sifted through several online rankings. After getting the initial list of 18 stocks, we chose the ones that were popular among hedge funds and that analysts saw the most upside to. Next, the stocks were arranged in ascending order of their average upside potential, as of 10th January. We also mentioned the hedge fund sentiment around each stock, as of Q3 2024.
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- Cloud computing in its simplest terms is the use of computing resources virtually, where companies host expensive hardware and data servers and sell this capacity to customers.
- It gives organizations and their employees more flexibility with important functions such as remote work.
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Some of the leading companies include CoreWeave, SentinelOne, Research Solutions, among others. Each has its own unique standing in the market, which you can track and list of best stocks above. FIVN has been benefiting from the growing adoption of AI tools in its call center services, with personalized AI agents emerging as a major growth driver. On Feb. 19, Five9 introduced its Intelligent CX Platform powered by Five9 Genius AI on the Google Cloud space. AKAM is up 4.7% at $98.46 at last glance, on track for a third-straight gain.
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. Most of that gain came after Fastly’s Q1 report in early May, when it announced 38% growth in sales to $63 million and said that 88% of trailing 12-month revenues came from large enterprise customers. These customers spend an average of $642,000 per year with the service. In May, DataDog reported 87% year-over-year growth in first-quarter revenues and said the number of customers spending more than $100,000 apiece doubled to 960.
REAL-TIME STOCK ALERTS SERVICE
IaaS provides operating systems to servers and storage through IP-based connectivity as part of an on-demand service. PaaS is a platform for creating software delivered through the Internet. This exclusive report highlights the companies leading the AI revolution and shaping the future of technology in 2025.
DataDog
North America and Europe should capture the bulk of the market size but APAC is expected to register the fastest growth. The integration of AI with cloud platforms accompanied by new service models is another key development expected to shape this industry. Zacks Rank #2 Microsoft’s third-quarter fiscal 2025 earnings and revenues beat estimates driven by strength in AI business and Copilot adoption backed by accelerating growth in Azure cloud infrastructure unit. Productivity and Business Processes revenues rose due to a strong adoption of Office 365 Commercial solutions. These stocks have strong earnings and revenue growth potential for 2025.
Artificial Intelligence
In simplest terms, cloud computing is the delivery of computing services over the internet. It’s an infrastructure-as-a-service model where customers can pool resources, such as processing power and storage, and are able to scale their usage up and down quickly. It is attractive to many organizations because they don’t have to buy and maintain their own servers and storage systems. Looking at the data, the EV/Sales multiple varies with a firm’s growth rate, and those with higher growth naturally command a higher multiple.
Cloudflare, Inc. Overview Software – Infrastructure / Technology
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- Outside of cloud computing, Alphabet is the leader in digital advertising through its Google search engine and YouTube streaming platform, which is the most viewed video platform in the world.
- In 2018, it acquired small firms Marketo and Magento to bolster its position as a partner for e-commerce companies.
- Azure share in cloud computing increased from 15 percent in 2018 to 20 percent at the end of 2020.
- It caters to 10,618 clients with 542 customers generating more than $1 million in revenue.
In a new era of AI, ServiceNow could be a big winner, building on its recent success. After growing subscription revenue by 23% from fiscal 2023 to fiscal 2024, ServiceNow projects a year-over-year increase in subscription revenue of about 19% for fiscal 2025. In addition to the POWR Ratings highlighted above, one can access TWLO’s ratings (Momentum, Stability, and Quality) here.
Top Performing Cloud Stocks
Since then, DocuSign’s usefulness has expanded rapidly, with most of the Fortune 500 now boasting the ability to use its software. Revenues exploded by 39% during the most recent quarter, with growth rolling on throughout the pandemic as working from home makes it more difficult to get physical signatures. Its Falcon platform includes 11 different modules for maintaining security against the most sophisticated attacks from state-based actors.
Cloud computing picked up steam during the COVID-19 pandemic and has remained an enduring growth story even during the bear market. More efficient than legacy IT, it enhances technology such as artificial intelligence (AI), machine learning, and gaming. It gives organizations and their employees more flexibility with important functions such as remote work. The cloud is quickly becoming the basic infrastructure of the future. Snowflake is a young company, though, and the stock will likely be highly volatile for some time. It’s all about growth for this business right now, and even small changes in management’s expectations can cause some wild fluctuations in share price.
It’s a cloud-based platform for managing digital ad buys – whether they display on PCs, phones or TVs – from all types of media companies. CEO Jeff Green is actually leading his second startup in the space; he previously sold AdECN to Microsoft in 2007. With The Trade Desk, Green has developed a platform that not only helps agencies book ad dollars but justify their spending to clients. While Microsoft is usually seen as a software power, it’s now one of the world’s great telecommunications companies, in a way.
It generates healthy and growing free cash flow, and while it has generated gross profits for years, it booked positive net income for the first time in 2023, reporting diluted EPS of $0.20. Through the first three quarters of 2024, DigitalOcean has generated diluted EPS of $0.70. This could be a quality small- to mid-cap stock worth investing in for the long haul.
Adobe’s core competencies in providing creativity software and document editing have made it a staple of digital transformation. Microsoft (MSFT -0.64%) was one of the first big tech companies to embrace generative AI through its large investment and partnership with OpenAI. The unit that has most benefited from this partnership has been Azure, which is the No. 2 leading cloud computing company with a 20% market share.
Stay up to date on all cloud stocks with Benzinga Pro, your go-to stock market research platform with real-time news and actionable insights. If you want to jump into cloud stocks but don’t want to pick just one or two companies can leverage the industry via exchange-traded funds. Zoom Video Communications (ZM, $252.33) is the poster child for what cloud applications can do for a portfolio, and one of the best cloud stocks of 2020.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The company is using Nvidia hardware to make automation even better and even landed Nvidia as a bigger customer using automation software that Cloud stocks Nvidia is helping ServiceNow to create. With challenges like labor shortages persisting in the wake of the pandemic, ServiceNow is primed to keep growing. There are greater complexities involved in managing big cloud computing infrastructure, but the cloud also offers the ability to continuously streamline and automate operations. Paired with the organic growth that Adobe’s legacy offerings still generate, this firm is a top free cash flow generator in the cloud industry. Although it isn’t a serial acquirer like Salesforce, Adobe has made some big moves to round out its software suite.