5 Best Cloud Stocks to Invest In

Introduction

 

According to the current inflation rate, it’s highly important for you to invest your money in something that is genuine and reliable. And you might think why invest in cloud stocks rather than something else? 

 

You are in the right place, as we will give you several different reasons why cloud stocks will be useful. And more importantly what are the best cloud stocks to invest your money in.

 

The effectiveness of a company's operations is vital to its production, and out-of-date computer systems can be a major roadblock. 

 

By allowing employees to share information and collaborate over the Internet, cloud computing is a terrific method to expedite and improve your business processes.

 

This means that corporate data may be accessed and edited from anywhere, rather than being backed up to a single physical location where it could be lost or corrupted. If you're still not convinced that cloud computing is the appropriate fit for your company, here are six reasons to think about it.

 

Why Cloud Stocks?

Although cloud computing increased significantly in the 2010s, the next-generation IT industry is still in its early stages. 

 

Companies all over the world have been migrating to digital cloud data and services, which are kept in faraway data centers and accessed via the Internet, for years, but the increase of pandemics and remote work is hastening this trend.

 

According to Gartner, global cloud computing spending would climb from over US $ 270 billion in 2020 to over US $ 332.3 billion in 2022. 

 

Other technical advancements such as mobile 5G networks, the IoT, and artificial intelligence are all strongly tied to cloud computing.  Cloud computing equities are expected to be the most popular investing topic in 2021 and the following decade.

 

(Check out:-  Top 7 Cloud Computing Platforms)

 

 

How to invest in the vast cloud computing technology?

One of the fastest-growing segments of the IT industry is cloud computing. In 2020, despite the Covid19 outbreak, several cloud tech businesses and their stocks were performing exceptionally well. 

 

Although historical growth has been significant, there is still a long way to go as businesses shift more of their operations to the cloud. 

 

 Cloud computing's versatility enables a slew of new services and business models. Investors can now participate in completely new sectors with enormous potential markets. 

 

Many organizations working on the megatrends that are affecting the investment climate rely on cloud technologies. Firms that provide cloud infrastructure and related hardware, as well as companies that use cloud technology, are available to investors.

 

Best Cloud Stocks to Invest In

 

1. Adobe 

 

Adobe, a software corporation, has entered an IT era that predates both the cloud and the Internet. However, it has grown into a leading provider of cloud services by adapting its big and growing platform to the cloud era. 

 

Adobe's core competencies, which include creativity software and document processing, position the company as a key player in the digital transformation.

 

Adobe has taken some significant measures to complete the software package, albeit it is not a serial purchase like Salesforce. In 2018, it purchased Marketo and Magento, two small e-commerce startups, to improve its position as e-commerce partners. 

 

Workfront was acquired in late 2020, allowing the company to add workflow and project management tools to its arsenal. Adobe just acquired Frame.io, a video editing software company.

 

Adobe is the leading free cash flow generator in the cloud market, because of the organic growth still generated by its heritage products. As a basic portfolio investment, it's worth noting.

 

Stock:- NASDAQ: ADBE

 

 

2. Salesforce

 

When it comes to cloud computing, Salesforce needs to be part of the conversation. Customer relationship management has multiple advantages in the business realm. 

 

CRM specialists have been pioneers in software using cloud technology since the late 1990s. 

 

Since then, Salesforce has expanded into other dimensions of enterprise risk management through organic growth and steady acquisitions. ERM is a holistic approach to risk management 

 

Salesforce's recently acquired remote work and collaboration tool, Slack, could enter a clash course with Microsoft's Teams collaboration suite. 

 

With its success as a full-fledged technology platform for businesses of all kinds and sizes, Salesforce is also a great way to perform a small cloud reboot. 

 

With high profitability and high investment to maximize expansion, Salesforce can meet its founder and CEO Marc Benioff's goal of becoming one of the world's largest technology companies within the next decade.

 

Stock:- NYSE: CRM

 

 

3. Cisco

 

Cisco Systems is a technology business that produces and distributes a wide range of products. Customers can monitor and control their infrastructure and apps using cloud-neutral solutions and full-stack observability. 

 

This ensures a safe connection while also enhancing the user experience. CISCO's stock has been continuously growing, up more than 30% since the beginning of the year.

 

Furthermore, the business announced the launch of 2022 last month, following a good first-quarter financial report. The total revenue for the year was $12.9 billion, up 8% over the previous year. 

 

Cisco is well-positioned for growth in the coming year, thanks to strong demand and successful business change. Would you like to include the CSCO stock in your portfolio in light of this?

 

Stock:- NASDAQ: CSCO

 

 

4. Zoom

 

Zoom is one of the few companies that may suddenly emerge from obscurity and become household names. 

 

Video conferencing services have become an essential aspect of the epidemic, allowing families and business teams to communicate over long distances. 

 

Zoom will continue to be a critical component of corporate communications services even when the pandemic restrictions are lifted. Changes in personal communication benefit Zoom as well. 

 

While cellular services are a modern need, cloud-based video engagements in the next few years could be a major headache for traditional telecoms firms. 

 

Telephone company contacts can be split as Internet access expands, and cloud software providers can be prioritized.

 

Stock:- NASDAQ: ZM

 

 

5. Oracle

 

Oracle is one of the most well-known cloud providers. Oracle Software as a Service (SaaS) and Oracle Infrastructure as a Service are two of the company's cloud offerings (IaaS).

 

Now, ORCL's share price has risen by nearly 15% since last week. This is in contrast to the company's impressive financial performance in the second quarter, which exceeded many analysts' forecasts. 

 

Oracle's quarterly revenue increased by 6% year over year to $ 10.4 billion. Furthermore, non-GAAP earnings per share were $ 1.21, up by 14% from the prior quarter and $ 0.10 higher than expected.

 

Well, the company's growth in the infrastructure and applications cloud market is principally responsible for these impressive results. Total cloud revenue has climbed by 22% as annual revenue reaches $ 11 billion. 

 

The business also paid a $ 0.32 per share quarterly dividend to shareholders, raising its share buyback authorization by $ 10 billion. Isn’t that exciting for the investors to have found the perfect cloud stock to invest in?

 

Stock:- NYSE: ORCL

 

(Related Reading:- 7 Metaverse Stocks to Invest in 2022)

 

Conclusion

 

“Given a 10% chance of a 100 times payoff, you should take that bet every time.”- Jeff Bezos

 

The investment ensures financial stability both now and in the future. It allows you to increase your money while also benefiting from inflation. It also reaps the benefits of compound interest. 

 

Furthermore, the investment has the ability to help you reach financial goals such as purchasing a home, establishing a severance pay scheme, and accumulating emergency money.

 

It allows new technologies such AI algorithms and machine learning, offering enterprises and their employees the agility of vital operations such as remote work, and it is more effective than legacy IT. The cloud is increasingly becoming the foundation of the future's technology.