Are these the best cloud stocks to invest in right now?
Cloud stocks, although not immediately on the minds of most investors, remain a viable game in the stock market today. For the most part, this would be evident among the big names in the tech world. All of these have a role to play in the booming cloud computing industry. As a result, there is also a growing demand for cloud-related services in all areas. This would be understandable because the cloud is a revolutionary field of technology, allowing virtual storage of data without the need for physical servers. In practice, some would say it’s a paramount convenience for today’s data-driven world.
For example, we could take a look at the biggest name in the industry Amazon (NASDAQ: AMZN). Of course, most are familiar with the company’s cutting-edge e-commerce offerings. However, its Amazon Web Services (AWS) subsidiary is also a cloud computing titan. In its latest quarterly earnings update, Amazon raked in $17.8 billion in AWS revenue alone. This exceeds analysts’ estimates of $17.37 billion. For reference, that’s a massive 40% year-over-year jump for the company. In terms of earnings per share, Amazon beat estimates of $3.57 with earnings of $5.80. Even with the expected slowdown in its core digital retail services, the company notes that its cloud and advertising businesses fueled growth for the quarter.
Meanwhile, there are also many other names to consider among cloud stocks. A significant portion of the industry would now be made up of companies that cater to corporate customers. This would include companies such as Selling power (NYSE: CRM) and CrowdStrike (NASDAQ: CRWD). All in all, it seems like an exciting time for the cloud industry. On that note, here are three to consider in the stock market right now.
The best cloud stocks to buy [Or Sell] This month
Microsoft
Microsoft is a cloud company that enables the digital transformation of many companies and businesses. In fact, in the era of intelligent cloud and intelligent edge, it aims to empower every person and every organization as we move towards a more digitized world. A significant portion of its revenue also comes from its software products such as Microsoft Windows and its Microsoft Office suite.
On January 25, 2022, the company announced its second quarter financial statements. First, revenue for the quarter was $51.7 billion, up 20% year over year. The company says this is due to strong commercial execution, supported by strong growth in bookings. Operating profit was $22.2 billion, up 24% from a year earlier. Second, its net income was $18.8 billion, or diluted earnings per share of $2.48.
“Digital technology is the most malleable resource available to the world to overcome constraints and reinvent everyday work and life.” said Satya Nadella, president and CEO of Microsoft. “As technology as a percentage of global GDP continues to rise, we innovate and invest in diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a strategy, culture and sense of purpose. common goals.” The company also claims that its recent acquisition of ActivisionBlizzard (NASDAQ: ATVI) will not be blocked by the United States Federal Trade Commission, giving assurance to investors. All things considered, would MSFT stocks be on your list of the best cloud stocks to buy right now?
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Alphabet
Alphabet is the parent company of Google and is a multinational technology conglomerate holding company. It is one of the largest technology companies in the world by revenue and also one of the most valuable companies in the world. Notably, its Google Cloud is used by leading companies around the world. It enables enterprises to run their applications whenever they need through its open source, multi-cloud and hybrid cloud systems.
On Tuesday, the company announced its fourth quarter and fiscal year 2021 results. Diving in, revenue for the quarter was $75.32 billion, up 32% year over year. the other. Net income was $20.64 billion or diluted earnings per share of $30.69. The company says revenue this quarter shows broad-based strength in advertiser spending and strong consumer online activity, as well as substantial continued growth in Google Cloud revenue. He also says his investments have helped spur growth by providing services people and businesses need.
The company also continues to invest in artificial intelligence technologies to deliver extraordinary and useful experiences to its users on its most important products. It also announced record quarterly sales of its Pixel phones despite supply constraints. With that in mind, is GOOGL stock worth adding to your portfolio today?
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Shopify
Another company now focusing on the cloud would be Shopify. Of course, most might not exactly think of Shopify when considering cloud stocks. However, the company’s core business is entirely cloud-based and hosted. Through its cloud operations, the company serves more than 1.7 million merchants in 175 countries around the world. The likes of which posted a cumulative gross merchandise volume (GMV) of approximately $400 billion in its latest quarterly update. With the current scale of Shopify’s operations, investors might be watching it amid recent volatility in tech stocks.
For one thing, Shopify is expected to release its fourth quarter financial statements later this month, on February 16, 2022. Before that, the company doesn’t seem to be slowing down at all on the operational front. For starters, Shopify seems to want to expand its offerings in the apparel market. This is evident from his latest patent victory. According to Business Insider, the company recently obtained a patent for augmented reality (AR) body measurement technology. In practice, this would serve to help customers take body measurements and determine clothing sizes remotely. If Shopify merchants had access to this technology, it would provide a new level of convenience for shoppers.
In addition, the company is currently working with JD.com (NASDAQ: JD), a major player in the Chinese e-commerce market. Through the current deal, the duo helps US merchants sell their products to consumers in China. Safe to say, Shopify would benefit from accessing JD’s customer base of over 550 million active users. With all that in mind, will you be adding SHOP stock to your February watch list?
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