Are These The Best Cloud Computing Stocks To Trade This Week?
Cloud computing stocks have been an amazing pick for investors in the stock market this year. But what is cloud computing you might ask? Cloud computing is essentially on-demand availability for computer system resources. This includes data storage on servers and computing power, without direct active management by the user. In today’s economy, cloud computing is essential for organizations looking for increased scalability, business continuity, and cost-efficiency.
The coronavirus pandemic has no doubt accelerated growth for cloud computing services. While the pandemic has decimated the stock market in the last few months, top cloud stocks to watch have shown promising growth. As more companies have shifted their workforce online, cloud services will be in demand. Furthermore, the implications of the pandemic are expected to last throughout 2021, so companies will likely turn to cloud services. The valuations of these cloud stocks are high no doubt, but could investors still ride on this tailwind?
The Nasdaq Composite is now at an all-time high. This predominantly tech-heavy index is up by over 70% since the stock market crash in March this year. You have cloud computing stocks to thank for this stellar recovery. Top cloud stocks like Alphabet (GOOGL Stock Report) and Amazon (AMZN Stock Report) have all enjoyed increased revenues in their latest financials. With that in mind, here is a list of top cloud computing stocks to watch.
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Best Cloud Computing Stocks to Watch In December: Fastly
Cloud computing services provider Fastly (FSLY Stock Report) is no stranger to the industry. The company boasts a powerful edge cloud platform. It is designed to help developers extend their core cloud infrastructure to the edge of the network, closer to users. By leveraging the company’s infrastructure, customers are able to scale smarter, improve security, and optimize the user experience. Fastly has been up by over 25% since the start of November.
As the U.S. is facing a third wave of coronavirus cases, new restrictions are enforced on parts of the country. However, many investors see this as an opportunity to invest in Fastly. The reason being that a new lockdown would mean an increase in demand for online services and content. This certainly plays well for Fastly evidently as its business continues to grow. The company has expanded its global network capacity from 58 terabytes per second to 106 terabytes per second over the last year.
Fresh off its third-quarter fiscal in October, the company certainly exceeded analysts’ expectations. The company continued to show top-line growth with a revenue of $71 million, up by 42% year-over-year. Fastly also reported that its total customer count grew by 4.9% sequentially as more customers rely on the company’s platform. This is a given as key customers include brick and mortar companies accelerating their investment in e-commerce. For instance, one of the largest sportswear and footwear retailers in the U.S. had migrated to Fastly in the third quarter, leveraging on the company’s security portfolio to enhance e-commerce security. With such promising growth, are FSLY stock on your watchlist?
Best Cloud Computing Stocks to Watch In December: Cloudera Inc.
Another cloud computing stock to look out for is Cloudera (CLDR Stock Report). Like Fastly, the company also specializes in edge cloud platforms. Through its Cloudera DataFlow, users can manage their data from the edge to the cloud with an easy no-code approach. This allows them to develop sophisticated streaming applications with ease. Cloudera also has a data warehouse platform called Cloudera Data Platform (CDP) that can analyze all data types while scaling cost-effectively to even above petabytes of data.
The company’s share price is up by 116% since the March lows. In Cloudera’s latest quarter fiscal posted in September, the company reported a total revenue increase of 9% at $214.3 million. Subscription revenue also increased by a commendable 17%, to $191.5 million. The company says that it has significantly advanced its Enterprise Data cloud strategy. Through its CDP, Cloudera offers a powerful hybrid architecture that separates compute and storage while allowing ease of use and more efficient infrastructure consumption. This would ultimately allow for widespread adoption of the company’s services.
In the company’s business outlook for its third quarter which will be posted in December, Cloudera is expecting total revenue of $207 million to $210 million. It also expects a subscription revenue in the range of $187 million to $190 million. The company seems to be in a position of strength in the big data and analytics market today. This is evident as its latest financials show solid growth. Furthermore, its merger with Hortonworks last year seems to be paying off. Could this position Cloudera for a successful 2021? With that in mind, will CLDR stock be a top cloud computing stock to buy and hold for the long run?
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Best Cloud Computing Stocks to Watch In December: Twilio Inc.
Cloud computing giant Twilio (TWLO Stock Report) certainly has enjoyed 2020. The company uses a Communication Platform as a Service (CPaaS) model. It allows for easy integration of Twilio solutions into any project by means of an application programming interface (API). Essentially, Twilio is for those who need communication services to manage their businesses. The company’s share price has had a staggering 183% increase year-to-date and is traded at $298 as of 9:40 a.m. ET.
In its third-quarter fiscal posted last month, the company enjoyed a 52% revenue increase year-over-year of $448 million. Twilio also boasts more than 208,000 active customer accounts as of September 30, 2020. In its fourth-quarter guidance, the company expects total revenue of $450 million to $455 million, signaling a continued momentum that it has enjoyed so far.
Earlier this month, the company completed the acquisition of Segment, a market-leading customer data platform for a price tag of approximately $3.2 billion in Twilio Class A common stock. Through this acquisition, it will provide developers and companies with the ability to break down data silos to help businesses make more personalized and timelier customer engagement. It will also give a flexible API that allows developers to connect customer data with analytics tools without having to write new code. This would ultimately help customers address the increasingly digital nature of customer engagement. Things certainly look promising for Twilio and that is why TWLO stock is on this list of top cloud computing stocks.
