3 Top Cloud Stocks To Watch This Week

Are These The Best Cloud Stocks To Buy Now?

Cloud stocks are among the recent up-and-coming stocks in the stock market today. Why? Simply put, it is because of our growing dependence on cloud computing tech throughout the world today. Notably, the coronavirus pandemic supercharged the adoption of this tech as countless businesses prioritized digital acceleration. While this would be the case, there are long-term benefits from doing so. Namely, the cloud provides organizations an affordable, efficient, and scalable means of storing their digital assets. As more companies look to further optimize and digitize their operations, the cloud industry would stand to benefit moving forward.

Now, just how big can the industry get? According to global tech research company, Technavio, the global cloud market could be worth over $287 billion by 2025. This would indicate a potential compound annual growth rate of 17%. The firm cites rising demand for edge and serverless computing as one of the primary growth drivers for the industry.

Evidently, some of the biggest names in the tech world are already running massive cloud computing operations. Take Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) for example. While their core businesses may be worlds apart, both companies continue to rake in the big bucks through their cloud services. Regardless, they do not appear to be slowing down anytime soon. As of last week, Google Cloud is currently working with business-to-business telecommunication company, Axiata Enterprise. According to Axiata, the duo is looking to address the connectivity needs in economies throughout Asia. Meanwhile, Amazon Web Services recently extended its existing partnership with cloud computing peer Salesforce (NYSE: CRM). With all this activity in the industry now, you might be keen on cloud stocks now. In that case, here are three to making moves in the stock market now.

Best Cloud Stocks To Watch This WeekSnowflake Inc.

Starting us off is cloud computing-based data warehousing company, Snowflake Inc. For some context, the Montana-based company helps organizations of varying sizes mobilize their data. Snowflake does this via its Snowflake Data Cloud (SDC) platform. In detail, organizations employ the SDC to consolidate and securely share their digital assets while also executing diverse analytic workloads. Additionally, Snowflake makes this convenient for its users because the SDC works across multiple clouds and geographies. According to the company, its customers span across several industries, including 187 Fortune 500 names. With SNOW stock mostly trading sideways since its initial public offering last September, could now be the time to buy in?

If anything, CEO Frank Slootman seems to believe so. In an interview with CNBC’s Jim Cramer, Slootman mentioned that investors would need to be patient regarding SNOW stock’s growth. He cites the current multi-year cloud transitions taking place as a potential growth driver over the next decade. Even now, the company continues to gain momentum on the financial front. In its recent quarter fiscal posted last month, Snowflake saw revenue skyrocket by 110% year-over-year. Aside from that, the company also raised its full-year guidance for product revenue.

At the same time, the company is also working on expanding its cloud portfolio now. Now, Snowflake is currently running the “Powered By Snowflake” program, designed to aid companies and application developers alike. Through the program, Snowflake is looking to accelerate the ability of its customers to deliver differentiated cloud applications. The likes of which will, ideally, further optimize customer operations. Would all this make SNOW stock a good long-term investment for you?

top cloud stocks (SNOW stock)Source: TD Ameritrade TOS

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Microsoft Corporation

Another top name in the cloud computing space now would be the Microsoft Corporation. For the most part, the company continues to dominate the tech world across the board. In today’s article, however, we will be taking a closer look at Microsoft Azure, the company’s cloud computing arm. Similar to most cloud computing services, Azure facilitates the building, testing, and management of cloud-related apps and services. In an age where the digital office is more viable than ever, would MSFT stock have more room to run?

While this remains to be seen, MSFT stock appears to be trading towards new highs this week. Even so, Wedbush Security analyst Dan Ives appears to be bullish on the tech giant moving forward. For starters, the analyst currently has MSFT stock at an Outperform rating with a price target of $325 a share. This would indicate a potential upside of over 21% from its current all-time high of $266.83. More importantly, Ives believes that Azure is well-positioned to gain further market share in the cloud industry. He also believes that Microsoft is “the best way to play the cloud trade” now.

Rosy analyst coverage aside, Microsoft is not sitting idly by on the operational front as well. As of last week, the company is currently in a multi-year strategic partnership with BHP Group (NYSE: BHP), one of the largest natural resource companies in the world. According to Microsoft, BHP will transition up to 17,500 TB of data to its Azure platform. By facilitating this, Microsoft aims to improve the safety, productivity, and sustainability of BHP’s frontline operations across its global portfolio. Does all this make MSFT stock a top cloud stock for you?

best cloud stocks (MSFT Stock)Source: TD Ameritrade TOS

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Workday Inc.

Following that, we have leading enterprise cloud applications provider, Workday Inc. For the uninitiated, the company identifies as an on-demand financial and human capital management software vendor. In our tech-based world today, Workday’s finance and human resources-based solutions remain viable. While digital offices are more prominent, these two factors still need to be properly managed. This would be where Workday comes into play. According to Workday, its services are currently being used by thousands of global organizations across industries, including over 45% of the Fortune 500.

Sure, WDAY stock may be lagging behind the broader market in terms of year-to-date gains. Regardless, the company continues to aid customers across varying industries. Earlier this month, Workday revealed that several health care organizations currently rely on its supply chain management solutions. Among these new adopters is Bon Secours Mercy Health, a health care operation company. Bon Secours chief supply chain officer, Dan Hurry had this to say, “Workday provides the real-time reporting and mobile capabilities that give us the insights and efficiencies we need to both improve supply chain operations and reduce friction for patient-facing staff, helping us to retain top talent and deliver unmatched patient care.

Moreover, the company is also planning to expand its Workday Payroll services towards the Australian and German markets. According to Workday, this move will likely be completed by the year 2023. Not to mention, the company also saw its cloud-based financial management deployments jump by over 40% year-over-year throughout its fiscal year 2021. With Workday seemingly firing on all cylinders, will you be adding WDAY stock to your portfolio?

cloud stocks (WDAY stock)Source: TD Ameritrade TOS
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