Looking For Best Cloud Stocks To Buy Now? 3 Making Big Moves
Cloud stocks have been fantastic buys for investors seeking out growth this year. While the COVID-19 pandemic has been a disaster for the stock market today, several cloud computing companies are showing their worth. This came as the pandemic accelerated changes in the technology industry. Social distancing measures are benefiting companies who provide various technological solutions to businesses. The momentum could continue as higher adoption led users to stick to these solutions over time. You can think of it as a “new normal” for tech.
Last week was a big moment for cloud stocks. We saw Snowflake (SNOW Stock Report) and JFrog (FROG Stock Report) make their public debut. The cloud sector seems to be getting renewed interests from investors. They have seen how much confidence there is towards the industry. You might even argue that the healthy level of profit-taking in the market among top cloud stocks last week was simply for sellers to use the proceeds to buy SNOW stock. Of course, that is a narrative that may not be entirely true. Nevertheless, investors are always on the lookout for companies where they think have great potential.
If you have been searching for the best stocks to buy, chances are high that cloud stocks have popped up in your mind this year. Now, these stocks are currently exhibiting signs of strong rebound after the recent sell-off. Investors appear to be rushing back to the cloud space. No matter how you put it, you can’t deny that some of these stocks continue to have a lot of potential. That said, are the following cloud stocks on your watchlist?
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Top Cloud Stocks To Buy [Or Sell] In September 2020: Fastly
Shares of Fastly (FSLY Stock Report) surged more than 10% on Monday. This comes after President Donald Trump is planning to approve a deal that will allow TikTok to continue to operate in the US. This is a huge deal for Fastly considering TikTok is its biggest client, accounting for roughly 12% of the company’s revenue.
The dark clouds of negativity surrounding Fastly appear to have returned as quickly as they cleared away. There appears to be a great deal of confusion over TikTok’s proposed ownership structure. This came after Oracle (ORCL Stock Report) and ByteDance released contradictory statements on Monday. There’s no chance Beijing will allow Washington to inspect TikTok’s source code. Both TikTok and Douyin (the Chinese version of TikTok) should have the same source code.
This means the US can get to know the operations of Douyin. Let me repeat, believe it or not, there is no chance this deal will go through with this current format. While FSLY stocks rallied on the news of a potential deal, it seems like it will be a rather short-lived rally. That’s after the Chinese state media hardens stance on TikTok deals.
Top Cloud Stocks To Buy [Or Sell] In September 2020: Unity Software
Whoever said you can’t make money playing video games clearly haven’t taken a look at Unity’s (U Stock Report) stock price. Shares of Unity have climbed 6.51% to $72.96 during its second day of trading. That’s after the stock rose more than 31% on its first official day of trading. Unlike most companies that require employees to hold onto the stock for a lockup period, employees from Unity are immediately allowed to sell 15% of the total vested shares they have been granted in their company.
Last year, it is reported that more than half of the top 1000 games in Apple’s App Store and Google’s Play Store were built using Unity’s software platform. Amongst the blockbuster games are “Pokémon GO” and “Iron Man VR” which rely on the company’s software, just to name a few.
The company’s customers range from small gaming publishers to large gaming giants like Electronic Arts (EA Stock Report) and Tencent (TCEHY Stock Report). The question is, do you believe the gaming industry will continue to increase shareholders’ value? If yes, then you might want to include Unity stock in your list of top cloud stocks to buy.
Top Cloud Stocks To Buy [Or Sell] In September 2020: Okta
Last on the list, Okta (OKTA Stock Report) stock is on track to benefit from the secular shift to cloud computing. Shares of Okta have doubled since the stock market crash in March and reached an all-time high earlier this month. Although it has dipped since its recent high, OKTA stock is sending some bullish signals after climbing 4.46% on Monday.
There’s no question the pandemic has fueled Okta’s success this year. That is in line with the rapid rise of cloud stocks in the stock market this year. As for OKTA stock, it has climbed more than 90% year-to-date.
The company’s solutions allow corporate clients to authenticate the identity of their employees and customers when they use web applications remotely. For this reason, the company’s services have instantly become critical for organizations that need to work remotely. Despite the strong performance, investors have to bear in mind that the company has yet to be profitable. Chances are profitability may come as revenue grows further and as the company’s services become more entrenched in the market. And when that happens, this could be the best cloud stock to buy.