Though cloud investment is not a new concept, its growth was fertilized after the pandemic. Organizations now prefer to migrate most of their operations to the cloud (which is a digital service stored in a remote data server/center and can only be accessed when connected to the internet). It has been projected by viable persons in the field that Cloud computing will be a top investment scheme with a lot of money (trillions of dollars) invested into it. However, which stocks should you buy it is worth investing in? There are a lot of great Cloud stocks but the most common ones are Alphabet (NASDAQ:GOOGL) & (NASDAQ:GOOG) for Google Cloud, Microsoft Corporation (NASDAQ:MSFT) for Azure, and Amazon (NASDAQ:AMZN) and its Web.
1. Salesforce (NYSE:CRM)
Salesforce is a tech company that was founded by Marc Benioff. The company started with cloud technology that can be dated back to the late 1990s but ever since then, it has branched out to other newer software. It has also steadily acquired stakes with many other smaller cloud peers like Monday.com (NASDAQ:MNDY) and Snowflake (NYSE:SNOW). Salesforce is next on the line after the major three cloud stocks earlier mentioned as it is now considered a full-blown tech platform business.
Why Buy It: Ever since its inception, Salesforce has refused to slow down in expansion. Gradually and organically becoming one of the world’s largest technology companies, it is a highly profitable cloud stock to invest in. Also, its recent takeover of remote work will likely place the company side by side with Microsoft in a few months.
2. Cloudflare Inc (NYSE:NET)
Cloudflare is a network security and performance company that provides a wide range is network services to other organizations (small, medium, or large) worldwide. Their services include network reliability, performance, and security to the global web traffic.
Why Buy It: There are too many reasons to buy Cloudflare now and even in the future. It does not only have a record for drastic and organic growth but many have forecasted that this company will continue to rise and remain one of the best cloud stocks to invest in. Their CDN services continue to take the lead and returns over a 50% increase in revenue since 2015. There are currently over 50 hedge fund holders and over 15% of the world’s internet traffic requests go through them. There isn’t just potential here, there is a strong future.
3. Zoom (NASDAQ:ZM)
Zoom Video Connections offers videoconferencing services and its growth was fueled even more by the pandemic when physical conferences were limited. After the pandemic restrictions, the need for in-person meetings simply died down and Zoom took over. It has now become a household name and a basic necessity for many companies. They have acquired Five9 (NASDAQ:FIVN) and with the looks of it, it seems to be going only up from there.
Why Buy It: In just 2/3 years, Zoom has made a name for itself and has gone from the backyard to a household name. It is taking a big part of the telecom industry and is soon working on not being affected by telecommunications network services. This and more are what makes this company on the list of cloud stocks to buy.
4. Adobe (NASDAQ:ADBE)
Adobe started way back before the era of the internet and the cloud network and now, it has transformed itself into one of the largest cloud services in the world today. A branch of Adobe covers creativity where software for digital editing, photography, and design is developed. Another branch covers document editing for writers and content creators.
Why Buy It: Ever since its launch, Adobe has refused to remain at its starting point. Though it might not have had a great record of acquisition as the rest of the companies mentioned earlier, Adobe has a legacy that gives it a core portfolio in the business.
5. Unity Software (NYSE:U)
Unity is a 3D platform for content creation operating in real-time. The software helps billions of users download Unity-built apps yearly. The company proves itself useful for online educators, TV production studios, architects, engineers, and even graphic designers. Many other companies like vehicle companies (Toyota for example), digital companies (Apple for example), and so use Unity software to create designs and more. But the greatest thing about Unity is that the software now helps game developers migrate to the cloud.
Why Buy It: Though the company is rooted in video games, it’s clear that it has refused to remain where it started. Growing consistently, there is so much potential in this stock because it is needed by so many other great companies like Apple, Volkswagen, and Netflix.
Cloud computing does not seem to be going anywhere. As a matter of fact, it picked up even more steam during the pandemic and is seeming to be the basic infrastructure of the future. However, only high-growing stocks should be invested in because these companies have better long-term potential to get you back your investment in a year or two. The above-listed companies are the best cloud stocks to buy now.