4 Top Cloud Computing Stocks To Consider Adding To Your Watchlist
Cloud computing stocks have been one of the hottest sectors in the stock market over the past few years. As technology advances, companies are starting to recognize the benefits of running their operations on the cloud. With the exponential increase in data use these days, corporations are finding it difficult to keep all their vital information, and systems up and running on in-house computer servers. Well, the cloud would allow companies to access all of their data and information without the trouble of maintaining their own hardware. Hence, we are seeing a rise in popularity within the cloud computing space.
In fact, some people do not realize that they have been using cloud computing services all this time. For instance, Alphabet’s (NASDAQ: GOOGL) Gmail and Google Drive are cloud applications that many people use on a daily basis. It’s also worth noting that the three largest public cloud giants right now are Amazon (NASDAQ: AMZN) Web Services, Microsoft (NASDAQ: MSFT) Azure, and Google Cloud. That said, there are plenty of other cloud computing companies offering a variety of products and services. With all that being said, let’s take a look at some of the best cloud computing stocks in the stock market today.
Best Cloud Computing Stocks To Watch In December 2021
- Oracle Corporation (NYSE: ORCL)
- Cisco Systems Inc (NASDAQ: CSCO)
- Snowflake Inc (NYSE: SNOW)
- salesforce.com, inc (NYSE: CRM)
Oracle
First, we have one of the leading cloud companies in Oracle. The company’s Cloud Services would include Oracle Software as a Service (SaaS) and Oracle infrastructure as a service (IaaS) offering. Essentially, the company provides products and services for enterprise information technology (IT) environments. Thus, it integrates the software, hardware, and services on a customer’s behalf in a cloud-based IT environment.
Now, ORCL stock has risen by about 15% over the past week. This is in light of the company’s robust second-quarter financial report that exceeded the expectations of many analysts. Oracle posted quarterly revenue of $10.4 billion, up 6% year-over-year. Also, its non-GAAP earnings per share were $1.21, an increase of 14% compared to the prior year’s quarter and beating guidance by $0.10.
Well, these strong results are largely driven by the company’s growth in its infrastructure and applications cloud businesses. We saw a 22% growth in total cloud revenue as it is approaching $11 billion in annualized revenue. On another note, the company also declared a quarterly cash dividend of $0.32 per share to its stockholders and increased the authorization for share repurchases by $10 billion. All in all, these are positive signs that get investors excited. With that in mind, is ORCL stock a buy right now?
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Cisco Systems
Cisco Systems is a company that engages in the design and sales of a range of technologies. Its cloud-neutral solutions and full-stack observability allow its customers to see and manage its infrastructure and applications. Hence, enabling secure connectivity while improving application experiences. CSCO stock has been on a steady bull trend, gaining more than 30% since the start of the year.
Earlier this month, Verizon (NYSE: VZ) Business announced that it is enhancing its Network as a Service (NaaS) digitization strategy with the addition of Cisco managed SD WAN services. For starters, the solution will leverage Verizon’s 4G and 5G networks. Besides, it provides enterprises with an enhanced ability to scale, remain agile and future-proof operations. It will also help simplify operations, employ an asset-light model and ultimately improve user experience from application-aware routing.
Moreover, the company started its fiscal 2022 with a strong first-quarter earnings report last month. Its total revenue was $12.9 billion, representing an increase of 8% year-over-year. On a GAAP basis, its net income totaled $3.0 billion and EPS was $0.70, up 37% year-over-year. Overall, the strong demand and success of its business transformation would put Cisco in a good position for another year of growth. Given these considerations, would you add CSCO stock to your watchlist?
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Snowflake
Another top cloud company to watch right now would be Snowflake. In detail, its platform enables customers to consolidate data into a single source to drive business insights, build data-driven applications and share data. Furthermore, by leveraging the performance of the public cloud, its platform enables customers to unify and query data to support a variety of use cases.
During the company’s Snowday event last month, the company announced that data scientists, data engineers, and applications can now use Python natively within Snowflake as part of Snowpark. With this new development, developers will be able to easily collaborate on data in their preferred language. Therefore, data teams can also accelerate their pace of innovation, optimize development time, and operate with improved trust and security.
Earlier this month, Snowflake announced its third-quarter earnings report. Its revenue for the quarter was $334.4 million, an increase of 110% compared to the prior year’s quarter. Also, its remaining performance obligations were $1.8 billion, representing a 94% year-over-year growth. All things considered, Snowflake’s momentum appears to be accelerating in the right direction. So, could SNOW stock be a top cloud computing stock to watch now?
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Salesforce.com
Last but not least, we have Salesforce, the world’s leading customer relationship management (CRM) platform. More than 150,000 companies use Salesforce’s platform to grow their businesses by strengthening customer relationships. CRM will help companies understand their customers’ needs and solve problems by better managing customer information and interactions.
Recently, the company reported its third-quarter financial update. Firstly, revenue for the quarter was $6.86 billion, up by 27% year-over-year. Secondly, the current remaining performance obligation was approximately $18.8 billion, increasing by 23% year-over-year. Salesforce also reported a GAAP diluted earnings per share of $0.47.
Not to mention, Salesforce also announced a new partnership with Vox Media last Wednesday. The collaboration will bring video of the award-winning tech and business podcast Pivot to Salesforce+. So, there will be four video segments airing for an exclusive window of time each week. Vox Media also reiterates that Salesforce is the ideal partner for the company as both companies understand the importance of building a strong community through innovation. Keeping that in mind, would you consider investing in CRM stock now?
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