Top Big Data Stocks To Watch In November 2020
Big data stocks have prospered in the stock market throughout 2020. This is no surprise as more companies rely on big data solutions to help manage and analyze their data. The massive volumes of information generated and used for decision making in business today have certainly contributed to the boom in the data analytics and big data industry. Along with tech stocks in general, big data stocks have benefitted from the COVID-19 pandemic. With more companies shifting online, there is a need for big data analytics.
Tech companies like Facebook (FB Stock Report) and Netflix (NFLX Stock Report) rely on big data to understand user needs and trends. For Facebook, the company uses big data to display to marketers the responses of the audience to certain brands. Netflix uses big data to identify customer behavior and genre preferences. The company will then recommend movies and TV shows based on its users’ preferences.
Furthermore, market research firm Frost & Sullivan predicts that the global big data analytics market will grow at 28.9% annually to reach $68.09 billion by 2025. This could present an interesting opportunity for investors as the big data industry is picking momentum. With all that said, here is a list of the top big data stocks to look at for next week.
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Top Big Data Stocks To Watch In November: Cloudflare Inc
First on this list would be Cloudflare (NET Stock Report). The company is based in California and was founded in 2009. It is a web-infrastructure and website-security company. Services it provides include content-delivery-network, Distributed Denial of Service (DDoS) mitigation, Internet security, and distributed domain-name-server services. Cloudflare is undoubtedly making waves in the big data industry. This top big data stock has seen a 23% rise in share price just this month alone.
The company reported an incredible third-quarter fiscal in September. The company’s revenue surged by 54% to $114.2 million. Additionally, it also decreased adjusted net loss by 69% year-over-year. Despite only having gone public last year, Cloudflare is making the most of 2020 so far. The company did however report a 5% year-over-year decrease in free cash flow. This is because the company acquired S2, a browser isolation endpoint security upstart for $13.7 million, and introduced an array of new services. The company appears to already be looking to turn all these investments into earnings.
Cloudflare also recently announced its new free security tool, API Shield. In essence, an API (Application Programming Interface) is an intermediary software that allows two applications to communicate with each other. API Shield serves to protect API traffic against cyberattacks designed to perform unauthorized actions or exfiltrate data. Cloudflare projects that 50% of its 18 million requests per second on its network are directed towards APIs.
More importantly, the majority of these requests are registered as malicious. In the long run, the implementation of Cloudflare’s API Shield eliminates the noise of credential stuffing attacks and other automated scanning tools. This in turn would increase customer trust and favorability in the long run. Could these latest developments make NET stock worth adding to your portfolio?
Top Big Data Stocks To Watch In November: MongoDB Inc
The next big data stock is MongoDB (MDB Stock Report). MongoDB is an American software company that develops and provides commercial support for its open-source database of the same name. This Non-Structured Query Language (NoSQL) database serves to store data in JavaScript Object Notation (JSON) documents with flexible schemas. Despite a rough month on the stock market since mid-October, its share prices have seen an increase of 12% since the beginning of the month.
The company reported positive gains in its second-quarter fiscal back in July. It showed a 39% year-over-year increase in total revenue. This is due to a 41% increase in subscription revenue year-over-year and an 11% year-over-year increase in service revenue. The reason for this could lie in the company’s flagship application. MongoDB’s NoSQL database is more flexible than conventional relational databases. This sets it apart from the competition because it provides much greater ease of use for software developers. Fundamentally, it is a streamlined alternative to conventional data management systems.
In recent news, award-winning system innovator Exafluence announced a global strategic partnership with MongoDB. Exafluence specializes in helping clients migrate to the cloud. This collaboration aims to simplify digital transformation by offering modernization accelerators to the finance and healthcare sectors. This will be done via MongoDB’s global cloud database, MongoDB Atlas.
Senior vice president Alan Chhabra explained, “As organizations look to modernize their applications and move to the cloud, they gravitate to MongoDB because of our flexible document data model.”
He then went on to explain that the client modernization process will be accelerated while reducing cost and risk thanks to Exafluence’s large array of tools. MongoDB is looking to ride the current tailwind of the big data industry. Should investors buy MDB stock with so many good things happening to MongoDB?
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Top Big Data Stocks To Watch In November: Palantir Technologies Inc
Palantir Technologies Inc. (PLTR Stock Report) holds the final spot on this list. Palantir is a public American software company that was founded in 2003. The company specializes in big data analytics. Some of its biggest clients in the private sector include BP (BP Stock Report), Ferrari (RACE Stock Report), and Airbus (AIR Stock Report). Most notably, the U.S. government is also a major client for the company. Palantir appears to be continuing its strong growth surge with a 37% increase in share price since the start of November.
Admittedly, the acceleration seen by Palantir shares is very recent. With the company having gone public in late September, what could be causing this rise in investor interest? Essentially, the company’s software is considered to be on the more affordable end compared to the likes of its competitors which are defense contractors. In the company’s third-quarter fiscal, Palantir reported revenue growth of 52%, at $289.4 million.
The company has raised its full-year 2020 revenue guidance to a range of $1.070 billion to $1.072 billion. Furthermore, the company had obtained new contracts in the third quarter with the U.S. Army ($91 million), National Institutes of Health ($36 million), and also renewed a $300 million contract with an aerospace company. With Palantir fresh out of its first public quarter report, could PLTR stock be worth watching?
