cloud computing stocks: The 5 Best Cloud Computing Stocks to Buy for 2023

The revenue of Microsoft’s main cloud unit, Azure, along with the sales generated by the firm’s “other cloud services,” jumped a cumulative 31% year-over-year last quarter. The company, however did lower its overall forward guidance, saying it now expects revenue for its current first quarter of $50.5 billion to $51.5 billion. That is below the $52 billion of revenue that analysts, on average, had penciled in for the current quarter.

And Alphabet remains fully committed to its cloud offering. While the company has closed other unprofitable divisions such as its Stadia video game unit, the tech titan continues to invest in the growth of Google Cloud, primarily through acquisitions. 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. Histrionics aside, IBM is a formidable player in the cloud computing space, primarily through its Red Hat subsidiary that provides open-source software products to enterprises around the world. MSFT’s current slowdown, however, is temporary for sure and not unique to Microsoft.

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Equinix is a Real Estate Investment Trust specializing in data centers. It builds these data centers with debt and pays out profits in dividends. The data centers are rented to companies like 37 Signals and include networked connections to major clouds.

The good news is that CRM stock appears to have bottomed last December at $126.34 per share. The company’s stock jumped 16% in one day after it delivered better-than-expected earnings and issued strong guidance. Earlier this month, Salesforce reported fourth-quarter earnings per share of $1.68 compared to the $1.36 that Wall Street analysts, on average, had expected. Its Q4 revenue jumped 14% year-over-year to $8.38 billion, versus analysts’ average estimate of $7.99 billion. The turmoil has impacted CRM stock, pushing its price down nearly 60% between November 2021 and December 2022.

By the end of the decade, some estimates put total annual global cloud spending at $1 trillion. Cloud computing stocks are a top investment theme for 2021 and the decade ahead. These cloud computing companies are contributing to the future of cloud service technology.

Clearly Zoom is eyeing a bigger piece of the massive global telecom industry by going after large business communications accounts. Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative return is the aggregate amount that an investment has gained or lost over time.

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IBM (IBM)

Moreover, we gave weight to the market sentiment around each stock and only included stocks that had positive market sentiment. These stocks are ranked according to their popularity among elite investor circles, from least to most. Cloud computing is a rapidly growing industry that is transforming the way businesses and consumers access and use digital services.

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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. Zoom is also benefiting from changes in personal communications. 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.

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Palo Alto is down 16% over the last year, roughly in line with the S&P 500. That’s 8 times last year’s revenue, and it loses money regularly. But revenue has doubled since 2020, and it has averaged gains of 35% per year over the last five years.

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Cloud Computing Dividend Stocks, ETFs, Funds

Companies like Salesforce.com that offer subscription-based software-as-a-services arrived before the term cloud computing was coined. Many SaaS companies are now working with AWS and other cloud vendors to reach new markets. They have the most complete ecosystems of software and partnerships with third-party software-as-a-service providers. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.

He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. GOOGL stock is down 25% over the last 12 months, giving it an attractive price-earnings ratio of 20. That’s because Veeva’s offerings allow its offerings to succeed in the heavily regulated, capital intensive healthcare industry. Despite the lack of profits, Snowflake remains in red-hot growth mode. In fiscal 2023, Snowflake’s revenue jumped 69% year-over-year.

It’s all part of what I call the Machine Internet, a trend I’ve been studying for 20 years. In the past, I called these “always on” technologies, and analysts called them the Internet of Things. We’re now moving toward connecting things into systems to run factories, hospitals, and entire cities. At the end of this gallery, you’ll see my favorite for 2023 profit.

The 5 Best Cloud Computing Stocks to Buy for 2023

In 2018, it acquired small firms Marketo and Magento to bolster its position as a partner for e-commerce companies. In late 2020, it purchased Workfront to add workflow and project management solutions to its arsenal. Most recently, Adobe took over video editing collaboration software firm Frame.io. ETFs and funds that prioritize investments based on environmental, social and governance responsibility.

Since the fund launched in early 2019, GlobalX’s cloud ETF has outperformed First Trust’s offering due to its more narrow focus on just 33 stocks, most of which are software companies. The fund is smaller, with less than $2 billion in assets under management. Investing involves risk, including the possible loss of principal. The investable universe of companies in which CLOU may invest may be limited.

The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets. Because the Funds trade during U.S. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price. Also, companies cannot switch their cloud-based software providers without disrupting their businesses and incurring high costs. So Veeva System’s customers are likely to stick with the cloud company. After initially running up 63% and peaking at just under $400 a share, SNOW stock pulled back 72% to bottom at $110 a share in June of last year.