Looking For The Best Cloud Stocks To Buy Now? 3 To Consider
Cloud stocks have had a fantastic year so far. In fact, the top cloud stocks have outperformed a good chunk of the stock market. Thanks to the coronavirus pandemic, demand for cloud services has skyrocketed to all-time highs. With companies focusing on digital acceleration, cloud data storage has become a vital infrastructure to have. Being able to conveniently store and access company data is paramount as companies are still pushing their projects and innovations amidst these troubled times. Investors and companies seem to be aware of these trends.
How Do You Find The Best Cloud Stocks In The Stock Market Today?
First off, we can see that cloud companies like Crowdstrike (CRWD Stock Report) and Cloudflare (NET Stock Report) are surging in 2020. Both their share prices have seen gains of over 400% since the March lows. There have also been a large number of companies doubling down on their cloud computing services. One in particular that most would know is Amazon (AMZN Stock Report). The company’s Amazon Web Services (AWS) has a collection of cloud services that give other contenders in the industry a run for their money. Just this week, AWS announced that Twitter (TWTR Stock Report) would be using its cloud infrastructure to support real-time delivery of its users’ contents.
It is no wonder that investors have flocked to this industry throughout the year. With the increasing viability of cloud computing, it could appear to some as a profitable endeavor. However, there is no such thing as easy gains. Even the most seasoned investors would have a challenge sorting the wheat from the chaff in this ever-growing industry. To help with that issue, here is a list of top cloud stocks to watch as we move into 2021.
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Top Cloud Stocks To Watch In December: Fastly Inc
Coming up first, we have Fastly (FSLY Stock Report). The company’s proprietary edge cloud platform has been around since 2017. It is designed to help developers extend cloud services to users. The Fastly platform does so via a combination of load balancing services and cloud security services. Notably, the company’s share prices are up by over 350% year-to-date. Notably, FSLY stocks jumped nearly 6%Thursday. Let us take a closer look at what could have caused this.
On December 16, it was announced that the market leader in client-side website security, Source Defense, is collaborating with Fastly. The deal involves running a comprehensive cybersecurity training program. Source Defense CEO Dan Dinnar said, “Given the combination of increasing cyber threats facing businesses and the growing number of open cybersecurity jobs, the need to attract and certify professionals in the industry has never been greater.” Understandably, this could bode well for Fastly as it could stand to flex its expertise on cybersecurity with a broader clientele. In turn, this would not only expose it to more potential clients but could also cement its reputation in the long run.
Regarding its financials, the company also blew investors out of the water. In its recent quarter fiscal reported in late October, Fastly reported a 42% jump in total revenue year-over-year. With enterprise customers generating 88% of its trailing twelve-month total revenue, the company’s recent play makes sense. Fastly seems to know where its strengths lie and could be looking to grab even more of the market share. Could FSLY stock continue to grow in 2021 and beyond? You be the judge.
Top Cloud Stocks To Watch In December: Veeva Systems Inc
Next, we have Veeva (VEEV Stocks Report). The company focuses on cloud application in the fields of pharmaceutical and life sciences. Eagle-eyed investors would likely be eyeing the company due to its synergy with the biotech industry which has been booming this year as well. This is reflected in the prices of VEEV stock which is up by over 130% since the pandemic hit in March. Investors may be wondering if it could flourish going into 2021.
Despite having eased by over 9% from its all-time high in October, the company appears to be kicking into high gear. Just this week, the company announced the adoption of its services by two new partners. The first is award-winning global contract development and manufacturing organization Samsung Biologics. In this deal, Veeva will help streamline Samsung’s operations onto a single cloud platform. Second, it was also selected by Integra Lifesciences (IART Stock Report) to provide crucial cloud services for its clinical trials. Integra is a global leader in regenerative technologies, neurosurgical, and extremity orthopedic solutions. All this bodes well for Veeva as it continues to pull in new clients across the board. For investors, this could be an interesting time to watch the company indeed.
Looking at its recent quarter fiscal posted in December, Veeva seems to be thriving as well. The company reported a 34% rise in both total revenue and subscription service revenue year-over-year. In line with the company’s current momentum, CFO Brent Bowman did mention that Veeva would continue “investing aggressively” in opportunities in hopes of hitting its targets in the long run. Do you think this could mean long-term growth for VEEV stock?
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Top Cloud Stocks To Watch In December: Magnite Inc.
Last but not least, we have rising cloud-advertizing star Magnite (MGNI Stock Report). Magnite is the world’s largest independent sell-side advertising platform which operates across numerous channels and formats. The company’s share prices are through the roof with gains of over 370% since early April. Magnite is the result of a merger between digital advertising company Rubicon Project and software company Telaria. Ever since, the company has clearly been doing something right as it hit a new all-time high earlier this month.
At that time, Magnite announced a collaboration with Chicken Soup for the Soul Entertainment (CSSE Stock Report). The agreement involved the use of Magnite’s cloud advertising solutions to analyze content metadata from CSSE’s streaming platform Crackle Plus. Crackle Plus executive Tim Ware hailed Magnite as a “most valued ad tech partner”. He continued, “Its technology and real-time reporting continue to help us deliver rich insights for our advertising partners.” Investors must have seen this as a great move for the company judging from MGNI stock performance. However, they may be wondering if Magnite has anything up its sleeves to keep this up.
From the company’s financials, the company reported raking in $60.98 million in total revenue for the quarter. For the most part, it saw a 51% rise in connected TV sales year-over-year. The reason for this could lie behind the massive rise in internet video streaming content this year. In turn, it creates a scenario whereby content producers could be relying on Magnite more to monetize their content. Ultimately, this sets up the stage for Magnite in a world dominated by streaming services. The real question remains, can Magnite make the most of these tailwinds to solidify its long-term growth prospects? Regardless, investors appear to be watching MGNI stock closely. Will you be doing the same?