Making A List Of Top Cloud Stocks To Watch Right Now? 3 Names To Know
Cloud stocks have flourished in the stock market this year. Not too long ago, the term cloud would only be associated with topics related to the weather. However, in this current age, “the cloud” has transformed into an explosive industry. The cloud is essentially a part of the internet where users can remotely store and access their data. Because of this, it has turned into a key necessity for companies this year. This is due to the massive wave of digital acceleration being carried out by businesses and companies in light of the ongoing Covid-19 pandemic. The coronavirus pandemic has provided an awakening towards the drawbacks of only having files on-premise. As a result, they are now turning to cloud services to remedy this.
Global research firm Gartner (IT Stock Report) projected that the global cloud services market will grow to a massive $257 billion this year. Regardless, the industry has picked up a massive momentum due to coronavirus tailwinds. We only need to look at cloud stocks like CrowdStrike (CRWD Stock Report) and Zscaler (ZS Stock Report) whose share prices have more than tripled year-to-date. Based on these numbers, investors who are looking for high-growth investments could turn to top cloud stocks.
Therefore, it is no surprise that investors are extremely eager to jump onto the bandwagon. Although, there will always be other companies looking to bolster and expand their business models to accommodate such trends accordingly. In line with this, investors may be facing a dilemma as to which cloud stocks to invest in. Given these points, here is a list of top cloud stocks for you to consider this week.
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Top Cloud Stocks To Watch This Week: Amazon.com Inc.
Firstly, we have Amazon (AMZN Stock Report). The company goes by many names and titles due to its massive portfolio. In particular, we will be focusing on Amazon Web Services (AWS). AWS provides on-demand cloud computing platforms and application programming interfaces (APIs). It does so on a “metered pay-as-you-go” basis. This means that fees are based on a combination of what products are being used, required availability, and related service options. Amazon’s share prices have risen by over 80% since its lows in March.
In its recent quarter fiscal posted in October, the company reported a 37% year-over-year jump in total revenue. To put that figure to scale, Amazon made $96 billion in the quarter. Furthermore, AWS reported significant customer growth while also signing huge clients. These include leading fintech company Global Payments (GPN Stock Report) and biotech superstar Moderna (MRNA Stock Report). It also made advancements involving services across its Bracket, Timestream, Wavelength, and Nitro Enclave sub-departments. The company is certainly firing on all cylinders based on its strong financial performance.
Just yesterday, AWS announced the launch of its new cloud storage and analysis service, HealthLake. The service is aimed at healthcare organizations. It will basically give clients access to a comprehensive array of complex data analytical services. One of its features includes being able to implement machine learning to analyze data in the cloud. According to AWS, “With Amazon HealthLake, healthcare organizations can reduce the time it takes to transform health data in the cloud from weeks to minutes so that it can be analyzed securely, even at petabyte scale,” If this holds true, AWS could be expanding its reach into the healthcare industry as well. All things considered, will you be adding AMZN stocks to your watchlist?
Top Cloud Stocks To Watch This Week: Cloudflare Inc
Cloudflare (NET Stock Report) has had a fantastic year so far. This can be seen with its share prices rising by over 360% year-to-date. For those who are unfamiliar with Cloudflare, it is a San Francisco-based cloud services company. The company provides web-infrastructure and website-security services.
In terms of financials, the company appears to be in very healthy conditions. In its third-quarter fiscal posted in November, Cloudflare reported a phenomenal 54% jump in revenue year-over-year. The company cites its strong customer growth as a key contributor to this. It secured 100 net large enterprise customers, one of which happens to be its first $10 million annual recurring revenue client. Moreover, Cloudflare gave investors a promising fourth-quarter fiscal outlook with a 41% year-over-year increase in total revenue. The company appears to be fairly confident in its performance moving forward. This could be the sign that interested investors are looking for.
Yesterday, news broke regarding an interesting collaboration between Cloudflare and Apple (AAPL Stock Report). The two have apparently developed a groundbreaking internet privacy protocol. This protocol will serve to protect users against internet privacy problems that most are oblivious of. Fundamentally, it blocks internet providers from collecting data on user history. This could prove to benefit Cloudflare in the long run as its cybersecurity services are crucial in times where people spend more time online. Do you think this is enough to make NET stock worth adding to your portfolio?
Top Cloud Stocks To Watch This Week: Alibaba Group Holding Ltd
Last but not least, we have Alibaba (BABA Stock Report). Similar to the first entry on this list, Alibaba is a company with an intricate portfolio innovating in different fields. In sticking with the focus of this article, we will be looking at its Alibaba Cloud (AC) business. AC provides cloud computing services to online businesses and also includes its parent company’s e-commerce ecosystem. The company’s share price is up by about 20% year-to-date.
In the company’s latest quarter fiscal posted in November, it seems to paint a great picture for investors. The company reported a 30% year-over-year increase in total revenue. A contributor to this is its cloud computing services which saw a revenue jump of 60% year-over-year as well. In fact, approximately 60% of A-share listed companies in China are AC clients. It seems that Alibaba is keeping up with its main competitors across the board. This provides all the more reason for investors to keep a close eye on it.
Earlier this week, AC announced new updates for its hybrid cloud offerings. Notably, these updates focus heavily on helping clients with digital acceleration. In the update, AC emphasizes compatibility, security, compliance, scalability, and reliability. These key refinements only add to the viability of its Hybrid Cloud Partner Program. This would allow AC to target small-medium enterprises (SMEs) with its scalability features. As this upgrade caters to a wider range of businesses, it seems that Alibaba will not be slowing down anytime soon. With that in mind, would BABA stock be a top cloud stock to watch?