Cloud computing is a pivotal technology driving innovation and efficiency across industries. As businesses increasingly migrate to the cloud, the market for cloud services is experiencing unprecedented growth, presenting a lucrative opportunity for forward-thinking investors.
In this article, we explore the best cloud computing stocks that are set to define the sector’s future.
Whether you are a seasoned investor or new to the world of cloud technology, these stocks are worth watching as you navigate the path to future-proof investing.
What are cloud computing stocks?
Cloud computing stocks are shares of companies that provide cloud computing services. These services include delivering computing power, storage, and software applications over the Internet rather than relying on local servers or personal devices. Cloud computing stocks belong to companies that develop, manage, and offer cloud-based solutions to businesses and individuals.
Cloud computing services include Infrastructure as a Service (IaaS), Platform as a Service (PAAS), and Software as a Service (SaaS).
Investing in the Best Cloud computing stocks in 2024!
Read along to find out the best cloud computing stocks to invest in 2024:
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Salesforce:
It is necessary to include Salesforce in discussions on cloud computing. Beginning in the late 1990s, the customer relationship management (CRM) specialist pioneered cloud-based software development. Since then, Salesforce has expanded into other enterprise software categories through organic growth and continuous acquisitions.
Salesforce is also an excellent approach to take on smaller cloud upstarts because of its success in growing into a full-fledged computing platform for companies of all shapes and sizes.
It frequently makes investments in or buys shares in smaller cloud competitors; for example, before Snowflake’s 2020 IPO, it invested in Snowflake (SNOW 1.16%). Additionally, the firm acquired Monday.com, a popular IPO.
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Adobe:
Adobe (ADBE 2.4%), a software firm, was founded before the Internet and the cloud. However, it has become a leader in cloud services by adjusting its sizable and growing platform to the cloud era. Adobe has made some significant acquisitions to expand its product portfolio.
In 2018, it strengthened its position as an e-commerce company partner by acquiring minor businesses such as Marketo and Magento.
Adobe acquired Workfront at the end of 2020 to expand its project management and workflow tools portfolio. Most recently, it declared its intention to purchase Figma, a rapidly growing startup in work communication software.
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Snowflake:
The cloud increases a company’s flexibility, frequently uncovering cost savings and enabling them to do more with the data they have on their customers and operations. However, as cloud computing becomes more widespread, there is a surge in digital data and new security risks to be aware of.
It’s challenging to manage the data.
This is the role that one of the best cloud computing stocks, Snowflake, plays. When it entered the public markets in 2020, its triple-digit percentage revenue growth made it an astounding splash. Since then, Snowflake’s stock price has dropped, and sales growth has somewhat slowed, but the company is currently valued far more sensibly.
An influential company, Snowflake, is at the forefront of developing new methods for companies to handle, move, and store enormous volumes of digital data.
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Zoom Video Communications:
Few businesses have become household names as rapidly as Zoom and soared out of obscurity. Video conferencing enabled distant family members and corporate teams to communicate, making it indispensable during the pandemic. Zoom is expected to be a fundamental requirement for business communications services for some time to come.
Zoom has had trouble since many individual and small company customers stopped using the service after the outbreak. Although it is no longer a growing firm, the corporation is nevertheless benefiting from the changes in communications.
Right now, Zoom’s primary focus is finding a way to gradually boost shareholder profits while simultaneously managing a modest increase in revenue.
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The Trade Desk:
Thanks to Netflix, watching TV on the go is now commonplace. Many new internet-based services have entered the market in the last several years. Digital advertising engineers, including The Trade Desk (TTD 0.04%), have significantly benefited from this. This cloud-based solution assists marketers in automating the acquisition of digital advertising.
While Google and Meta Platforms (NASDAQ: FB) (Facebook, Instagram, and WhatsApp) stocks soared as high as nearly 9% as of August 1st in the digital ad space, many customers have embraced The Trade Desk’s cloud-based marketing management capabilities. Currently, it is the biggest independently owned provider of digital ad management software.
Even though The Trade Desk is still a small business in a worldwide marketing sector that generates nearly $1 trillion in revenue yearly, the possibilities are endless.
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ServiceNow:
Extensive cloud computing infrastructure management is more complicated, but the cloud also makes it possible to automate and streamline processes continuously. ServiceNow’s software expertise is in that area.
ServiceNow helps businesses identify operational bottlenecks, including software development, staff workflow management, and digital consumer experiences. After identifying these problems, ServiceNow can assist in proposing and executing solutions.
It leverages Nvidia hardware to enhance automation and has even led to Nvidia being a larger customer through automation software. Given the ongoing issues posed by labor shortages in the wake of the epidemic, ServiceNow is well-positioned to continue expanding.
Apart from its consistent expansion, ServiceNow has lately achieved profitability. As the cloud permeates more aspects of global company operations, this might be one of the best cloud computing stocks to invest in the next ten years.
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Amazon Web Services:
Amazon’s (NASDAQ: AMZN) cloud computing division has become the company’s primary growth engine.
Amazon Web Services (AWS), which currently holds a 31% share of the worldwide cloud infrastructure market, has proven to be an absolute game-changer in its industry. The breadth and complexity of AWS’s offerings—including databases, processing power, storage, and more—set it apart. As a result, AWS’s sales have increased dramatically over the past ten years from $3.1 billion to an astounding $90.76 billion, a 2,820% rise.
With AWS driving the charge, AMZN announced a spectacular 13% increase in Q1 net sales to $143.3 billion to start the year. Revenues from the cloud segment increased spectacularly by 17% to reach $25 billion, easily surpassing the firm’s growth.
Bottom Line
With its ever-expanding role in transforming industries, driving innovation, and enabling digital transformation, cloud computing stocks present a compelling opportunity for savvy investors.
By focusing on this space’s leading players and emerging innovators, you can position your portfolio to capitalize on the dynamic growth and technological advancements shaping the future.
Keep yourself updated with the growing potential of cloud computing stocks with Abbo News and be at the forefront of the next wave of digital revolution and financial success.
