Top Cloud Computing Stocks To Watch In The Stock Market This Week
When looking for the best stocks in the stock market today, cloud computing stocks are often on the top of many investor’s lists. Put simply, cloud computing is the delivery of computing services over the internet. This would include servers, storage, databases, networking, software, and intelligence. In today’s world, we are witnessing a big shift from the traditional way businesses think about IT resources. With cloud computing services, you could lower costs while speeding up operations, giving businesses more flexibility.
Some of the most notable cloud computing companies would be Amazon.com (NASDAQ: AMZN) with its Amazon Web Services (AWS) and Microsoft Corporation (NASDAQ: MSFT) with Microsoft Azure. Did you know, AWS has contributed more than half of Amazon’s operating income every year since 2014. Now, whether you acknowledge it or not, cloud computing services are taking the world by storm and this could just be the beginning. With that in mind, do you have a list of the top cloud computing stocks in the stock market this week?
Best Cloud Computing Stocks To Buy [Or Avoid] This Week
- Alphabet Inc (NASDAQ: GOOGL)
- Adobe Inc (NASDAQ: ADBE)
- Accenture Plc (NYSE: ACN)
- Unity Software Inc (NYSE: U)
Alphabet Inc
First, we have the tech giant that needs no introduction, Alphabet. The company’s Google segment includes Google Services and Google Cloud. Zooming in, Google Cloud provides enterprise-ready cloud services such as Google Cloud Platform and Google Workspace. Through Google Cloud Platform, developers are able to build, test, and deploy applications on its infrastructure. GOOGL stock has had an impressive year thus far, showing gains of over 60% since the start of the year.
Last week, the company added extensions to its popular Cloud Storage offering. In addition, it also introduced two new services, Filestore Enterprise and Backup for Google Kubernetes Engine (GKE). These two new capabilities combined will make it easier for users to protect their data out-of-the-box, across a wide variety of applications and use cases.
Not to mention, Alphabet also announced that its new Google Cloud Platform region in Toronto is now open. For over a decade now, the company has been the go-to-cloud partner for organizations across Canada. Be it financial services, media, and entertainment, retail, or the public sector, a rapidly growing number of organizations in Canada are choosing Google Cloud to help them build their cloud offerings to deliver better experiences to their users. Well, with all these developments in place, would you say that GOOGL stock is a top cloud stock to buy?
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Adobe Inc
Another top cloud company in consideration would be Adobe. For those unfamiliar, Adobe is one of the largest and most diversified software companies worldwide. Also, it offers digital design and productivity-focused software solutions among others to customers across the globe. The company’s Creative Cloud boasts a collection of over 20 applications for photography, video, design, web, and many more.
In August, Adobe announced it has entered into a definitive agreement to acquire Frame.io, a leading cloud-based video collaboration platform. Frame.io streamlines the video production process by enabling video editors and key project stakeholders to seamlessly collaborate using cloud-first workflows. Hence, combining Adobe’s industry-leading creative software and Frame.io’s review and approval functionality will deliver a platform that further powers the video editing process.
Now that investors are anxiously waiting for the company’s third-quarter financial update on September 21, let us review its recent financials to gauge what to expect. During the company’s second-quarter, it reported quarterly revenue of $3.84 billion, representing an increase of 23% year-over-year. Meanwhile, its GAAP diluted earnings per share were $2.32 and its cash flows from operations were a record $1.99 billion. Overall, the company had an outstanding second quarter as its Creative Cloud, Document Cloud and Experience Cloud continue to transform work, learn and play in a digital-driven world. Now, would you add ADBE stock to your portfolio ahead of its earnings report tomorrow?
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Accenture Plc
Following that, we have the professional services company, Accenture. When you combine its experience and specialized skills across more than 40 industries, the company offers a variety of services that are powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. The company’s Cloud First offers a full spectrum of cloud services to help its users realize the value from their investments. ACN stock has risen over 30% this year so far.
Earlier this month, Accenture expanded its cloud capabilities by acquiring Wabion, a Google Cloud services boutique. As part of the deal, more than 60 professionals will join Accenture’s Google Cloud Business Group. Also, it has been recognized as a Google Cloud Premier partner and is known for its deep expertise in Google Cloud innovations and developments. Therefore, Wabion will offer a full spectrum of consulting and implementation services for Google Cloud Platform and Google Workspace solutions.
It is worth noting that the company and salesforce.com (NYSE: CRM) will be teaming up with Mastercard (NYSE: MA) to deepen its sustainability efforts. Accenture’s role in this partnership is to assess its supplier landscape and deliver Sustainability Cloud. It is a platform that provides the ability to track, analyze and take action on supplier-level carbon emissions data. These would help Mastercard achieve its target to reduce absolute Scope 3 greenhouse gas emissions by 20% by 2025. All things considered, would ACN stock be a buy for you?
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Unity Software Inc
To sum up the list, we will be looking at the gaming software company, Unity. The company has the world’s leading platform for creating and operating real-time 3D content. The content made with Unity is real-time, allowing it to adapt to user’s behavior and feedback. Despite trading sideways for the most part of this year, U stock has still risen more than 80% over the past year.
In late August, Unity announced the acquisition of OTO. In detail, OTO is an AI-driven acoustic intelligence platform that can be leveraged to build and foster safer gaming environments. Felix Thé, VP of Product Management, Operate Solutions, Unity had this to say, “With OTO’s integration into our portfolio of gaming services, we aim to empower creators with a simple, scalable solution to design safe virtual environments that promote friendly experiences and detect problematic social behaviors.” Such a solution would be crucial in helping to improve player experience and help game creators retain users.
During the second quarter of 2021, Unity reported revenue of $273.6 million. That represents an increase of 48% from the year prior and ahead of guidance. What’s more, this marks the 11th consecutive quarter of 30% or greater growth as the company crosses $1 billion in annual revenue run rate. With the huge potential of the gaming industry, the company could be looking at a long growth runway ahead. Considering all this, would you be investing in U stock?
