We are all aware of the companies that have made a solid mark in the field of cloud, the likes of Google, Amazon and Microsoft are the Mount Rushmore of the cloud computing stocks, and you can add IBM to this list after they acquired the Cloud computing company Red Hat last month. But what is this cloud computing thing? The process of remotely using computer resources with the help of internet or on the internet is cloud computing.
Cloud computing is still a technology on the up rise and the criteria of the technology is ever changing, as we keep on finding new ways that can exploit the use of internet the technology will keep on changing. Because there are new kinds of discovery done every now and then it is all leading to new companies coming up and growth in revenue and that too by huge numbers. According to some predictions made recently suggest that by the end of this year the value of cloud market (public) could reach a massive $178 billion and can keep on growing at a rate of 22 percent every year. One big reason that cloud computing industry is growing at such a pace is mainly because businesses and consumers in today's world are depending on the services provided by these cloud companies.
The big ten of cloud stocks
Cloud computing stocks offer traders a variety of opportunities to speculate on the future of this growing industry. In terms of the progress of the company, year-on-year (YoY) growth and share price valuations, some of the best cloud stocks to trade are:
The edge - it's the next frontier of digital business. It's where users connect, where digital life is experienced, where clouds, devices, and vast streams of data come together. Akamai is the edge. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud world.
After the dot-com bubble burst in 2000, Akamai stock fell as low as $2 per share. Since then, AKAM has risen steadily and remained trading in the $45 to $81 range. Despite not releasing any large company announcements or plans, the company's share price rose by over 41% from October 2017 to October 2018. This can largely be attributed to revenue growth predictions of 27% by the end of 2018 and a further 13% in 2019.2
Amazon Web Services (AWS) is a comprehensive, evolving cloud computing platform provided by Amazon. It provides a mix of infrastructure as a service (IaaS), platform as a service (PaaS) and packaged software as a service (SaaS) offerings.
It is difficult to establish the exact impact of this on AMZN stock prices because there are so many other elements of the business that contribute toward its valuation. However, as many of these other areas have experienced the same amount of success, Amazon's share price rose above $2000 for the first time in August 2018.
Cisco Systems develops, manufactures and sells networking hardware, telecommunications equipment and other high-technologyservices and products. Through its numerous acquired subsidiaries, such as OpenDNS, WebEx, Jabber and Jasper, Cisco specializes into specific tech markets, such as Internet of Things (IoT), domain security and energy management.
Although Cisco is often regarded as a more traditional company, it solidified its position in cloud tech after it acquired the cloud software company BroadSoft in October 2017. CSCO shares gained 45% between October 2017 and October 2018, spurred on by confidence in revenue growth projections of 15% in 2018, and a further 9% in 2019.3
Equinix (EQIX) is a real estate investment trust (REIT) because it manages a global network of data centres. However, because these centres store private cloud servers and devices, Equinix is also classified as a cloud computing stock.
Equinix has positioned itself as a middle man in the cloud computing industry, which has caused the company to experience impressive growth â?? its share price has risen from $7.60 a share in 2003 to $431 in October 2017.
F5 Networks, Inc. is a global company that specializes in application services and application delivery networking (ADN). F5 technologies focus on the delivery, security, performance, and availability of web applications, as well as the availability of servers, cloud resources, data storage devices, and other networking components
Interest in F5 Networks has surged dramatically in recent years due to the growing interest in cloud computing, and the price performance of its shares. F5 Networks closed above $199 in October 2018, up 74% from November 2017's price of $114. The company is predicted to continue growing, with a YoY revenue growth forecast of 14% for 2018 and a further 9% by the end of 2019.4
Google Cloud Platform, offered by Google, is a suite of cloud computing services that runs on the same infrastructure that Google uses internally for its end-user products, such as Google Search and YouTube. Alongside a set of management tools, it provides a series of modular cloud services including computing, data storage, data analytics and machine learning. Registration requires a credit card or bank account details. Google Cloud Platform provides Infrastructure as a service, Platform as a service, and Serverless computing environments.
GCP is one of the leading cloud computing platforms on the public market today, but it is still behind Amazon Web Services and Microsoft Azure. Google's parent company Alphabet (GOOGL)announced that GCP revenue had surpassed $1 billion per quarter in February 2018, which saw shares of GOOGL rise 7% in the following two weeks.
However, the income from this cloud unit represents just 3% of Alphabet's total earnings. Like Amazon, a large portion of Alphabet's revenue comes from a range of different businesses - notably Google's advertising arm - so it is important to remain aware of the successes and failures of these other sections for an accurate Google stock forecast.
Intuit Inc (INTU) provides cloud-based tax preparation and accounting software that is commonly used by individuals and small companies. The company was founded on the principle that paper-and-pencil accounting would become outdated, and Intuit's growth over the past decade shows that the founders' forecast was correct.
INTU stock has seen an increase in price of over 1000% â?? from $2 per share in 1993 to over $227 in 2018. With a revenue growth forecast of 15% for the end of 2018 and another 13% expected next year, Intuit is continuing to pique market interest.5
Microsoft Azure is a cloud computing service created by Microsoft for building, testing, deploying, and managing applications and services through a global network of Microsoft-managed data centers. It provides software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS) and supports many different programming languages, tools and frameworks, including both Microsoft-specific and third-party software and systems. The success of Microsoft is also due to its constant exploration of new technologies, which led to a deal with Volkswagen in September 2018 that will see the company connect cars to the cloud.
The focus on cloud computing has seen the MSFT share price increase by 45% between October 2017 and October 2018. Microsoft is predicted to continue its expansion, with a revenue growth forecast of 10% by the end of 2018 and 15% in 2019.6
Combined, Amazon, Google and Microsoft are expected to capture 76% of the public cloud market by the end of 2018.
Salesforce.com (CRM) was at the forefront of the cloud computing revolution and the 'software as a service' trend. The majority of Salesforce's revenue comes from a customer relationship management platform, which is used as a standard across a range of industries. The cloud platform helps companies better understand their customers with a range of tools for marketing, e-commerce, community management and analytics.
In June 2018, Salesforce.com announced another above-expectation earnings report to add to their three-year streak â?? the quarterly revenue of Â£3.01 billion exceeded analysts' forecasts by over $70 million. On the back of the revenue growth, shares of CRM gained almost 60% between September 2017 and September 2018, and this growth is only predicted to continue into 2019.
VMware (VMW) is a provider of cloud computing and platform software that offers security and data management tools to other cloud networks. In 2004, it was acquired by Dell EMC, and has seen a vast amount of growth ever since, aided by its connections to both Amazon and Microsoft.
Shares of VMW rose by over 97% after VMware and Amazon announced their strategic alliance in October 2016. The history of VMware's revenue growth continues to impress markets, with over 17 consecutive positive quarters and a growth rate forecast of 7.3% in 2019.