cloud computing stocks

Our customers are looking for ways to save money, and we spend a lot of our time trying to help them do so. This customer focus is in our DNA and informs how we think about our customer relationships and how we will partner with them for the long term. As we look ahead, we expect these optimization efforts will continue to be a headwind to AWS growth in at least the next couple of quarters. So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens.

3 No-Brainer Stocks to Buy Right Now for Less Than $200 – The Motley Fool

3 No-Brainer Stocks to Buy Right Now for Less Than $200.

Posted: Fri, 30 Jun 2023 10:45:00 GMT [source]

Since its market debut ten years ago, the share price has nearly tripled. Key to the company’s success is that its cloud-based solutions are extremely valuable and sticky with its clients. The company also has a number of notable fans, including famed investor Warren Buffett who owns more than 6 million shares of the company, a stake worth nearly $850 million. In fact, Buffett got in on Snowflake’s IPO, something he almost never does. MSFT’s current slowdown, however,  is temporary for sure and not unique to Microsoft.

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Countries want to control their citizens’ data and are willing to use laws and regulations to do so. Cloud companies that can abide by those laws while still providing high returns will have massive upside potential going forward. And that makes Oracle one of the top cloud computing stocks to buy. The cloud computing market is growing at a massive pace – with the ongoing pandemic only spurring demand for cloud solutions and services. This, in turn, has investors turning to cloud stocks as a potential source for profits. Tech researcher Gartner (IT 2.27%) projects that spending on global cloud computing (as well as edge computing) will increase from about $250 billion in 2020 to more than $360 billion in 2022.

  • Companies that offer a cloud service or edge computing solutions compatible with popular cloud services have an advantage.
  • You can also find performing stocks by looking for products with a wide range of applications or with specific applications in industries with strong projected growth, like healthcare or Industry 4.0.
  • Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center.
  • The process of saving information from users’ systems in small packets at remote locations on the cloud forms the basis of cloud computing.

Latency can be problematic, especially in applications where users need access to data in real-time or run applications that use a lot of RAM. We should briefly discuss cloud computing before explaining what edge computing is. Cloud computing allows businesses to outsource some of their computing needs to a cloud service provider. For starters, ADBE saw double-digit year-over-year revenue growth across all its segments in its fiscal fourth quarter, including a 29% rise in its Document cloud division. 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.

Cloud Computing Industry Power Rankings

Cloud Computing and all other industries are ranked based on their aggregate 3-month fund flows for all U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective industries. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Cloud Computing relative to other industries. If an ETF’s industry classification changes, it will affect the fund flow calculations. This network relies on fiber technology to deliver fast connection speeds.

  • Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Indxx.
  • Like other successful tech companies, Alphabet excels at diversifying its activities.
  • Cloud computing exchange-traded funds (ETFs) track the performance of companies engaged in cloud computing-related activities and services.
  • Splunk Inc. , together with its subsidiaries, develops and markets cloud services and licensed software solutions in the United States and internationally.
  • The next time you visit a Shopify website or stream episodes from A&E, the content will likely come from a server that belongs to the Fastly network.

Net sales increased $21.4 billion in Q4, up 20% year-over-year and now representing an annualized sales run rate of more than $85 billion. Starting back in the middle of the third quarter of 2022, we saw our year-over-year growth rates slow as enterprises of all sizes evaluated ways to optimize their cloud spending in response to the tough macroeconomic conditions. While the company has closed other unprofitable divisions such as its Stadia video game unit, the tech titan continues to invest in the growth of Google Cloud, primarily through acquisitions.

Should You Invest in the Global X Cloud Computing ETF (CLOU)?

Because the Funds trade during U.S. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price. With the smallest market value of all the cloud stocks covered here, DigitalOcean Holdings (DOCN, $53.67) might also be the most exciting. As for that guidance, Adobe expects fiscal first-quarter revenue of roughly $4.2 billion and fiscal 2022 revenue of around $17.9 billion – both higher on a year-over-year basis. Plus, CFRA Research analyst John Freeman, who maintained a Strong Buy on the stock after earnings, said “management tends to be particularly conservative when giving initial guidance for an upcoming year.”

IBM also offers an AI-powered tool that would allow businesses to build smart networks that integrate cloud and edge computing with the IBM Cloud Pak for Network Automation. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated. Michael Adams’s financial writing career has spanned roles with KCI Communications, The Motley Fool, InvestorPlace, InvestingDaily and other major financial publishing outlets. Michael’s personal investing style is based on a buy-and-hold approach of primarily up-and-coming tech businesses.

Top-Ranked ETFs Under $20 for Solid Gains

So Veeva System’s customers are likely to stick with the cloud company. The good news is that CRM stock appears to have bottomed last December at $126.34 per share. The company’s stock jumped 16% in one day after it delivered better-than-expected earnings and issued strong guidance. Earlier this month, Salesforce reported fourth-quarter earnings per share (EPS) of $1.68 compared to the $1.36 that Wall Street analysts, on average, had expected. Its  Q4 revenue jumped 14% year-over-year to $8.38 billion, versus analysts’ average estimate of $7.99 billion.

On their balance sheet, Qualys has more than $333 million in cash and short-term investments and no debt. Although the company’s share price has only risen a little more than 12% YTD, the fundamentals should not be overlooked and could make QLYS a decent long-term investment. During the third quarter of 2022, Palo Alto was the top cybersecurity vendor, growing 24.9% YOY and increasing its market share to 8.4%. Moreover, its revenue growth rate of over 26.7% is ahead of its 5-year average of 25.5%, pointing to how crucial its service is to its customers.

ETF Issuer Dividend League Table

There’s still a growing demand for cloud services tailored to the needs of the customer instead of a one-size-fits-all approach. Over the past decade, the “Cloud Czars” have dominated the market. They brought with them cloud-based enterprise software for every occasion. Now, however, smaller, more nimble cloud companies are breaking through with specially curated clouds to suit their customers’ needs. It may well be that the best high-potential cloud stocks are now the small ones that don’t get talked about as much. The ability for large teams to collaborate, create and publish together seamlessly has upended business workflows in a way few technologies have ever before.