What are some of the best cloud computing stocks?
What factors make cloud computing stocks the best ones to invest in, and what are the things that are worth considering until you start trading with them? The main idea behind that is observing its performance in the stock market and its reputation. You may
analyze the present and past data of the company stock and decide whether it's a suitable and beneficial asset for you or not.
Amazon
Amazon is one of the most significant cloud computing users and, therefore, the biggest cloud computing stocks. The company was established in 1994 and is headquartered in Seattle, Washington, U.S.
The revenue of the company, according to 2020 data, is estimated at 386.064 billion dollars, and the price of total assets is defined at 321.2 billion US dollars. Amazon Web Services is the leader in the cloud stocks list. It owns 32% shares of the sector, according to a 2020 report.
In the third quarter of 2020, the value of the cloud computing market grew by 33% and became 36.5 billion dollars. If this growth will continue, then Amazon is one of the prominent companies that are well-positioned and promises investors high payouts and returns.
What’s more, according to 2020 Q3 metrics, the company’s generated operating income was 3.54 billion dollars. The mentioned rate had increased by 56% compared to 2019’s Q3. If the company sustains such a growth tendency, it will still be the cloud computing market leader.
Through adopting cloud computing, the sales of Amazon web services have grown by 31% in 2021, and its operating income has increased by 48%, which is 65% of the company's total operating income. Depending on the given information, Amazon's biggest cloud computing stocks rise and sustain this tendency. The main reason behind that is that cloud computing has become a crucial part of the technology and e-commerce organization, which means that demand for Amazon stocks will increase.
Microsoft
Microsoft is one of the prominent companies in the cloud computing sector. The mentioned company was founded in 1975 by Bill Gates and Paul Allen. It is headquartered in One Microsoft Way Redmond, Washington, U.S. The company is a multinational and provides customers with numerous technological services, licenses, software, and other services.
How is Microsoft related to cloud computing? And why is it one of the best cloud computing dividend stocks? The main thing is that the company created Microsoft Azure. Until you get more information, it is worth mentioning that most cloud services are divided into three main categories including:
- Infrastructure as a service
- Platform as a service
- Software as a service
The company’s Azure is considered a platform and infrastructure as a service. According to 2020 data, Microsoft Azure included 22 main categories: AI and machine learning, container, storage, analytics, blockchain networking, databases, etc. It is worth noting that many organizations are using Microsoft’s Azure for alternatives to their database, and also Azure is used for data disaster recovery. As there can be some errors in technologies that may lead to losing all of the crucial data for you, Microsoft Azure and other computing systems allow you to feel safe and save your documents using them.
Even though Microsoft stocks are not cloud computing penny stocks, it is worth investing in them. The main reason is that the demand for Microsoft’s Azure increases from time to time. Rather than investing in their local services, many businesses and organizations choose Microsoft Azure because of its eloquence and the benefits they can get through it. Azure allows investors to run their businesses without worrying about losing important and essential data.
Similar to other cloud computing services. If you want to get profits through Azure, you need to pay for the storage. As storage grows, the price increases respectively. Microsoft Azure, it can be said that is one of the major cloud computing service providers. Some other significant providers are Google Cloud Platform and Amazon Web Services.
Google
Google as Microsoft isn’t one of the cloud penny stocks. Like that company, demand for Google stocks is on the rise in the stock market. The mentioned company was founded in 1998 and is headquartered in 1600 Amphitheatre Parkway, Mountain View, California, United States, and Queenstown, Singapore (Asia-Pacific). Its founders are Larry Page and Sergey Brin. The operating income of the company, according to 2020 data, is 40,269,000,000 United States dollar, and the total assets are estimated at 319,616,000,000 United States dollar.
Google Cloud platform is one of the most used services by businesses and organizations. As cloud computing becomes more and more popular, it is worth noting that it is one of the most prominent players in the mentioned sector. According to the Cockroach Labs 2021 report released in January, Google is the best-performing cloud computing company.
What’s more, the company announced some new AI tools that will support Google’s services linked to cloud computing. Also, it is worth mentioning that through cloud computing, the company’s revenue was estimated at 46.2 billion dollars in the third quarter of 2020. It should be noted that experts expected the company’s revenue would be 42.9 billion dollars. As a fact, Google was able to beat those expectations and showed much better performance in the market.
Google Cloud Platform allows hardware and software products to co-exist, and through that, customers can get several services. They can use AI machine learning to use its storage to save crucial documents and files. What’s more, Google Cloud Platform is free in the Standard Environment; however, if you want to get more services and a unique experience, you should pay a certain amount of money for that.
Alibaba
Alibaba is often referred to as the Amazon of China. The main reason behind that is that the mentioned company is the largest e-commerce and cloud infrastructure company in China. Alibaba is a Chinese multinational company founded in 1999, and its founder is Jack Ma. The company is headquartered in No. 969 West Wen Yi Road, Yuhang District, Hangzhou, Zhejiang, and George Town, Cayman Islands. The revenue of Alibaba, according to 2020 data, is estimated at US$72 billion, and the price of total assets is defined as US$185.42 billion.
Like the companies mentioned above, Alibaba is one of the biggest plates in the cloud computing sector. Even though cloud computing systems aren't as beneficial for the company as e-commerce, the organization will invest its money in developing and improving cloud services. So, it will subsidize the growth of cloud computing from the income it gets through e-commerce.
The company’s cloud was launched in 1999, and after that, it was developing gradually. According to 2020 statistics, Alibaba owned 40.1% of China’s cloud infrastructure market shares. Also, globally it was holding 5% of the cloud platform market in the Q2 of 2020. At the moment of writing this article, Alibaba operated 67 available data centers in 22 regions globally.
It is worth mentioning that Alibaba cloud computing is the second-largest business for the company. In 2020 the revenue of the company had grown by 54%. This rate was lower than in the previous years. For example, in 2019, the company’s sales increased by 72%, and in 2018 the company had 121% growth.
Even though the company’s revenue growth declines through the years, this does not mean that Alibaba is going to go bankrupt or see losses. Instead, according to management, the company will invest more money in cloud computing and make its services more sophisticated. Depending on that information, it’s clear why Alibaba is the fourth-ranked company in the cloud computing sector.
SalesForce
SalesForce is another fantastic company that provides customers with cloud computing services. The company was founded in 1999, and its founders are Marc Benioff, Parker Harris, Dave Moellenhoff, Frank Dominguez, and Halsey Minor. The revenue of SaleForce, according to 2021 data, is estimated at US$21.25 billion, and the price of total assets is defined as US$55.13 billion.
According to the 2020 report, the company’s sales through cloud computing have increased by 29% compared to last year. What’s more, it is worth mentioning that SalesForce has the largest cloud-based customer relationship management software platform. Through CRM, the company is one of the cloud computing stock market leaders.
Furthermore, the company’s management expects to raise its shares in the market by 11% from 2021 to 2025. Besides, Salesforce launched a new Government Cloud Plus, a cloud-based platform that allows the US government, US people, and customers to get sophisticated cloud-based services.
Moreover, the company plans to invest more money in cloud computing and its development to strengthen its positions in the stock market and the sector. All of the above-discussed information proves that the company is doing quite well, and its performance in the market will improve compared to other cloud computing companies. When writing this article, the price of SalesForce one share is defined at 233.89 US dollars.
Arista Networks
Arista Networks is one of the prominent computer networking companies. The mentioned organization is American and is headquartered in Santa Clara, California. Its founders are Andy Bechtolsheim, David Cheriton, and Kenneth Duda. The company was founded in 2004, and according to 2020 data, the revenue of Arista Networks was US$2.32 billion. The price of total assets is defined as US$4.739 billion.
In 2014the company launched a new CloudVision, topology Agnostic Management for Cloud DataCentres. After that, the revenue and operating income of the company have grown significantly. Compared to 2013, the company's shares on the market have increased by more than 8% and became 16.3% during the first half of 2014.
According to the 2020 fourth-quarter results, the company's sales have increased by 17.4% compared to last year’s fourth quarter. What’s more, as management expects and says, the company will increase its addressable market from 23 million US dollars to 33 million US dollars by 2025. The company is mainly dependent on cloud computing. So, depending on the above-given information and the fact the company will continue growing and developing, Arista Networks can be one of the best companies worth investing in. When writing this article, the price of Arista Networks is at 316.33 US dollars.