The 7 Best Cloud Stocks to Buy for 2022

However, with the adoption of the cloud comes an explosion of digital data and new security risk considerations. Salesforce did fall on hard times in 2022 and faced activist investor pressure to boost profit margins. Founder and CEO Marc Benioff and the top team have made progress, though, and hope to become the world’s largest and most profitable enterprise software company within the next few years. Due to its success in becoming a full-blown tech platform for businesses of all types and sizes, Salesforce is also a top way to play smaller cloud upstarts. It regularly invests in or acquires stakes in smaller cloud peers — such as when it invested in Snowflake (SNOW -1.75%) before its initial public offering (IPO) in 2020 (and sold it for a profit in 2021). Google Cloud offers a range of AI services, with the company also sprinkling the technology across its product lineup.

  • Kiplinger is part of Future plc, an international media group and leading digital publisher.
  • Before cloud computing, enterprises had to own and maintain expensive IT infrastructure to support their day-to-day operations.
  • For this compilation, we studied industry analysis reports and identified major players operating in the cloud computing industry.
  • Revenues are expected to grow by one-third in 2020, to $390 million.
  • In the fiscal year 2021, the company’s total revenue came in at $21 billion.

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. Oracle’s cloud initiatives are helping it to offset the weak performance of its on-premises business. Meanwhile, the company has been trying to attract more developers to its cloud platform by offering free services under its Oracle Cloud Free Tier. The company recently added several new “Always Free” services in infrastructure, storage, networking, observability, and security. Alibaba Cloud recently became profitable for the first time in more than a decade.

International Business Machines (IBM)

These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.

  • While companies have been pulling back on ad spend throughout the pandemic, TTD delivered a 33% gain in revenues during the March quarter.
  • According to Gartner, it will be a crucial driver of business innovation going forward.
  • With challenges like labor shortages persisting following the pandemic, ServiceNow is primed to keep growing.
  • Yes, investing in cloud storage can be a good decision for several reasons.

Kurian said he’s focused on growth for now, with an eye toward profitability later. However, Google’s parent Alphabet disclosed for the first time that the cloud unit has lost money for years — burning at least $4 billion in each of its last three years. 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.

A large percentage of businesses have yet to shift their operations to the cloud. That means Alibaba Cloud has still got plenty of room to grow, given the massive size of the cloud computing space in the country. The company doesn’t reveal the exact revenue generated by the segment.

These ETFs include growth stocks that stand to benefit from the increased adoption of cloud-based computing, including firms that provide and develop IaaS, PaaS, and SaaS. 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. Zendesk addresses that gap by providing simpler customer support and ticketing services for smaller businesses.

Investor Services

By leveraging cloud computing, businesses can achieve greater scalability, flexibility, and efficiency compared to traditional IT solutions. Cloud-based services allow businesses to access applications and data from anywhere, at any time, and on any device. The number of large organizations with a multi-cloud strategy (i.e., they buy cloud services from more than one provider) is predicted to rise from 76% to 85% during 2024. It offers cost and flexibility advantages but adds complexity to data governance and integration with legacy systems.

However, we have picked the top cloud computing stocks based on their performance, size, and future growth potential. Even before these AI features add to revenues, Snowflake’s growth numbers are fxtm review impressive. In the second quarter earnings release, management forecast 34% YOY revenue growth in FY2024. On the free cash flow front, they guided for a 26% adjusted free cash flow margin.

Investors looking for smaller cloud companies should also consider Fastly. Fastly has benefited from edge computing, a technology that brings the benefits of cloud computing closer to the end user. Its competitive advantage lies in its content development networks (CDNs). Calling itself a “platform built for all of your builders,” developers can tailor the CDN to their needs, leading to faster speeds and updates.

Cloud Computing: Find Top Cloud Stocks And Track Industry Trends

Partnerships are not a recommendation for you to invest with any one company. Zendesk isn’t profitable on a GAAP basis yet, but its non-GAAP gross margins are expanding, and its non-GAAP EPS increased 68% in 2020 and 25% year over year in the first six months of 2021. Analysts expect its non-GAAP earnings to improve by 27% for the full year. “Companies want to get folks back into the office and schools long for the in-class experience, but there will now be a strong Zoom component to these businesses,” Milan says. And the pandemic has made Fastly one of the best-performing work-from-home (WFH) stocks at roughly 300% gains in 2020.

Cloud computing as an industry is only 15 years old, and can be traced back to when Eric Schmidt, then-CEO of Google, introduced the term at an industry conference. Here were the most active stock-market tickers on MarketWatch as of 6 a.m. In 2024, etoro cloud will continue to be a dynamic and exciting driver of innovation and opportunity. Here’s my overview of what will be the most significant trends in this field. Twilio’s revenue for the full year 2020 is up 55% year-over-year to $1.76 billion.


Most people have likely encountered Cloudflare’s defenses, which ask them to prove they’re not bots while browsing the internet. In 2020, which was a uniquely difficult year for many businesses, The Trade Desk still managed to grow its sales by 26% and its net income by 124%. And the company’s doing even better in 2021, with sales up 67% in the first half of the year. Zscaler (ZS, $124.87), like Crowdstrike, offers computer security in the cloud.

Why Invest in Cloud Computing?

More efficient than legacy IT, it enhances technology such as artificial intelligence (AI), and 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. Netflix (NFLX -1.53%) made streaming TV from the cloud an everyday staple. Lots of new internet-based services have come to market in the past couple of years. This has been a boon for digital advertising technologists such as The Trade Desk (TTD -5.03%), a cloud-based offering that helps marketers automate the purchase of digital advertising (known as programmatic advertising).

Last month the company partnered with Japan Cloud, Japan’s leading cloud computing market in Asia, to deliver a cloud computing platform, Coupa K.K, to growing Japanese companies. Cloud computing is one of the most in-demand and fastest-growing tech sectors boosted by digitalization, especially during the ada for the c++ or java developer pandemic. The COVID-19 pandemic further highlighted the demand for cloud computing services given their flexible costs, scalability, and efficiency. According to a PWC study, in the first quarter of 2020, spending on cloud computing was already at $29 billion, up 38% compared to the same quarter of 2019.

Leave a Reply