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SKYY: Cloud Computing Stocks Are Too Volatile To Own

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cloud computing stocks

Revenue increased 18% and 22% on a constant-currency basis to $31.4 billion while net income declined from $1.4 billion to $208 million. Salesforce needs a more profitable way to make money, and AI Cloud could well be the answer. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.

  • Its comprehensive suite of cloud-based services powers customer relationships, processes management and everything in between.
  • In addition to price performance, the 3-month return assumes the reinvestment of all dividends during the last 3 months.
  • 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.
  • Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally.

If you want a higher-level overview of investing in this sector, consider reading our guide on tech stocks and how to invest in them. A large number of the Fortune 100 companies are already using Palo Alto’s cloud security. The gaming and data center businesses have shown a significant increase since inception and provided a boost in the company’s Tech stock. Nvidia tapped into the cloud market when it released its cloud gaming service, Geforce Now.


Its profitability has expanded at an even faster pace as it gets more efficient with larger scale. The company’s growth will likely continue as Veeva brings digital transformation to the massive life sciences industry. Constantly adding new features to its ecosystem, the company provides portfolio exposure to healthcare digitization without having to pick a specific winner within that large and fragmented industry. Mobile phone service is a modern necessity, but cloud-based video interactions could be a serious disruptor of traditional telecommunications companies in the years ahead. As internet access expands, staying in touch could become untethered from phone companies and favor cloud software providers instead. Highly profitable and investing heavily to maximize expansion, Salesforce could realize founder and CEO Marc Benioff’s goal of becoming one of the world’s largest technology companies within the next decade.

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Therefore, investors must consider the fundamentals of the companies, including earnings, P/E ratios, projected earnings growth, dividend yield, and return on equity, before investing in cloud stocks. Investors must take a detailed look at the business model of the cloud companies and their growth potential before investing in their stocks. The cloud is a rapidly growing sector and these companies are well positioned to benefit from that growth. Each of these stocks has its own unique strengths and potential risks, so investors should research them further before making a decision. Furthermore, cloud stocks are generally considered to be a solid long-term investment, as the demand for cloud services is only expected to increase in the coming years. Oracle’s cloud revenue is growing at an impressive pace, up around 50% in fiscal 2023, and the company’s focus on the EU market could drive further growth.

Invest in CLOU

For investors not interested in attempting to pick the best cloud stocks, exchange-traded funds (ETFs) are also an option. The First Trust Cloud Computing ETF (SKYY 1.16%) is the largest cloud ETF around, with about $6.7 billion in assets under management. The fund is a basket of 66 cloud infrastructure and software stocks. It has an ETF expense ratio of 0.6%, meaning it costs $6 per year for every $1,000 invested. Nearly two-thirds of Oracle’s revenue comes from cloud services, indicating its increased importance to the company. This cloud will be located in EU data centers and staffed by EU residents.

cloud computing stocks

Global lockdowns and their aftermath caused supply chain bottlenecks, many of which are still not fully resolved today. On top of that, geopolitics is going to have businesses reconsider who their suppliers are, and where their suppliers are located. Therefore, SCM will continue to be a part of the broader macroeconomic discussions for the next 6-12 months at the very least. The company refers to itself as a “software as a service in the life science industry.” And while it is lesser known than the other names on this list, VEEV stock has been a quiet outperformer over the past decade. Salesforce also announced that it was raising its stock buyback program to $20 billion, up from $10 billion previously. Looking forward, Salesforce said that it expects to report earnings in the range of $1.60 to $1.61 per share and revenue of $8.16 billion to $8.18 billion for the current quarter.

Oracle Stock: What’s Old Is New Again, Thanks To AI And Cloud Computing

As the market sentiment shifts, investors can open positions in the best growth stocks in the cloud computing sphere at historically low prices. Splunk Inc. , together with its subsidiaries, develops and markets cloud services and licensed software solutions in the United States and internationally. Analyzing the market can help determine whether it’s a good time to invest in cloud computing stocks. The cloud market will likely grow to $1,025.7 billion by 2028, giving it a compound annual growth rate (CAGR) of 15.80%.

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The metric calculations are based on U.S.-listed Cloud Computing ETFs and every Cloud Computing ETF has one issuer. If an issuer changes its ETFs, it will also be reflected in the investment metric calculations. Cloud Computing and all other industries are ranked based on their AUM-weighted average 3-month return for all the U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective industries. In addition to price performance, the 3-month return assumes the reinvestment of all dividends during the last 3 months. If an ETF’s industry classification changes, it will affect the 3-month return calculations. The metric calculations are based on U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to a specific industry.


Harness the power of artificial intelligence (AI) and machine learning (ML) to monitor your IT resources with Site24x7’s artificial intelligence for IT operations (AIOps) and machine learning operations (MLOps). Improve mean time to repair (MTTR) issues with the help of Site24x7 AIOps … As more app developers integrate more communication tools, Twilio is set to grow even more. Twilio allows software developers to programmatically make and receive phone calls, send and receive text messages, and perform other communication functions using its web service APIs. ETF issuers are ranked based on their AUM-weighted average expense ratios of their ETFs with exposure to Cloud Computing. The lower the average expense ratio of all U.S.-listed Cloud Computing ETFs for a given issuer, the higher the rank.

MongoDB Inc., Datadog Inc. and Snowflake Inc. were among stocks that jumped more than 4% in extended trading, after sales in Microsoft’s cloud division exceeded the average analyst estimate. However, the stocks turned negative after Microsoft said growth in its Azure cloud-computing business will decelerate by 4 or 5 percentage points in the current quarter. The company’s platform offers Data Cloud, an ecosystem that enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Additionally, the company offers various solutions for financial services, healthcare and life sciences, manufacturing, consumer goods, government, and philanthropy., inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. More businesses are moving operations over to the cloud at a rate higher than anticipated as a result of lockdown restrictions on various physical business operations in many countries including the United States.

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Cloud annual recurring revenue (ARR) has been off the charts and was up 83% year over year in Q1 fiscal 2022 to $833 million, but these changes have throttled overall revenue expansion. A long-running debate in asset allocation circles is how much of a portfolio an investor should… Short-term Treasury yields rose at the end of June, benefiting several bond ETF strategies. ETF issuers are ranked based on their aggregate assets under management (AUM) of their ETFs with exposure to Cloud Computing.

  • And when a company has made the list for nine consecutive years, that’s worth noting.
  • Despite massive internet growth in the past decade, just over half of marketing spending takes place in a digital format.
  • HP launched its Aruba Edge Services Platform brand to deliver AI-powered solutions and automate edge computing applications.
  • Four analysts rate it a Strong Buy, nine say it’s a Buy, eight rate it a Hold, and only two have it a Strong Sell.
  • For this compilation, we studied industry analysis reports and identified major players operating in the cloud computing industry.

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