Looking for the best cloud stocks to buy now? 3 To Consider
Cloud stocks have had a fantastic year so far. In fact, major cloud stocks have outperformed much of the stock market. Thanks to the coronavirus pandemic, demand for cloud services has reached record levels. With businesses focusing on digital acceleration, cloud data storage has become a vital infrastructure. Being able to easily store and access corporate data is critical as businesses continue to push their projects and innovations in these troubled times. Investors and businesses seem to be aware of these trends.
How do you find the best cloud stocks in the stock market today?
First, we can see that cloud companies like Crowdstrike (CRWD Stock Report) and Cloudflare (NET Stock Report) are booming in 2020. Their stock prices have both registered gains of over 400%. since the lows of March. A large number of companies have also doubled their cloud computing services. One in particular that most are aware of is Amazon (AMZN Stock Report). The company’s Amazon Web Services (AWS) has a collection of cloud services that give other competitors in the industry a run for their money. Just this week, AWS announced that Twitter (TWTR Stock Report) will use its cloud infrastructure to support real-time delivery of its users’ content.
It’s no wonder that investors have flocked to this industry throughout the year. With the growing viability of cloud computing, it might appear to some to be a profitable business. However, there are no easy wins. Even the most seasoned investors would find it difficult to sort the wheat from the chaff in this ever-growing industry. To help you fix that, here’s a list of the top cloud stocks to watch as 2021 approaches.
Best cloud stocks to watch in December: Fastly Inc
First we have Fastly (FSLY Stock Report). The company’s proprietary cloud platform has been around since 2017. It is designed to help developers extend cloud services to users. The Fastly platform does this through a combination of load balancing and cloud security services. Notably, the company’s stock prices have risen more than 350% since the start of the year. Notably, FSLY shares jumped nearly 6% on Thursday. Let’s take a closer look at what may have caused this.
On December 16, it was announced that market leader in client-side website security Source Defense was working with Fastly. The agreement involves the execution of a comprehensive cybersecurity training program. Source Defense CEO Dan Dinnar said: “Given the combination of the growing cyber threats facing businesses and the growing number of open cybersecurity jobs, the need to attract and certify professionals in the field. sector has never been so large. Naturally, this could bode well for Fastly as it could expand its cybersecurity expertise to a wider customer base. In turn, this would not only expose it to more potential customers, but could also solidify its reputation in the long run.
When it comes to its finances, the company has also blasted investors out of the water. In its last fiscal quarter released in late October, Fastly reported a 42% increase in total revenue year over year. With corporate clients generating 88% of its total revenue for the past twelve months, the company’s recent strategy makes sense. Fastly seems to know where its strengths lie and may be looking to grab even more market share. Could FSLY’s stock continue to grow in 2021 and beyond? Be the judge.
Best cloud stocks to watch in December: Veeva Systems Inc
Then we have Veeva (VEEV Stocks Report). The company focuses on cloud applications in the fields of pharmacy and life sciences. Eagle-eyed investors would likely be watching the company due to its synergy with the biotech industry which has also been booming this year. This is reflected in VEEV stock prices, which have risen more than 130% since the pandemic began in March. Investors may be wondering if it could prosper by 2021.
Although it is down more than 9% from its October record, the company appears to be moving up a gear. Once again this week, the company announced the adoption of its services by two new partners. The first is the award-winning global contract development and manufacturing organization Samsung Biologics. In this agreement, Veeva will help streamline Samsung’s operations on a single cloud platform. Second, it was also selected by Integra Lifesciences (IART Stock Report) to provide essential cloud services for its clinical trials. Integra is a world leader in regenerative technologies, neurosurgical and orthopedic solutions for the extremities. All of this bodes well for Veeva as it continues to attract new customers at all levels. For investors, this could be an interesting time to observe the company indeed.
Looking at its recent fiscal quarter released in December, Veeva also appears to be thriving. The company reported a 34% increase in total revenue and revenue from subscription services year over year. In keeping with the company’s current momentum, CFO Brent Bowman mentioned that Veeva will continue to “aggressively invest” in opportunities in hopes of achieving its long-term goals. Do you think this could mean long term growth for VEEV stock?
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Best cloud stocks to watch in December: Magnite Inc.
Finally, we have the rising star of cloud advertising, Magnite (MGNI Stock Report). Magnite is the world’s largest independent advertising platform that operates across multiple channels and formats. The company’s stock prices have exploded with gains of over 370% since early April. Magnite is the result of a merger between digital advertising company Rubicon Project and software company Telaria. Since then, the company has clearly done something right by hitting a new all-time high earlier this month.
Around this time, Magnite announced a collaboration with Chicken Soup for the Soul Entertainment (CSSE Stock Report). The deal involved the use of Magnite’s cloud-based advertising solutions to analyze content metadata from CSSE’s Crackle Plus streaming platform. Tim Ware, director of Crackle Plus, has called Magnite “the most valued ad technology partner”. He continued, “Its technology and real-time reporting continue to help us deliver rich information to our advertising partners. Investors must have seen this as a big step for the company judging by the performance of MGNI shares. However, they might be wondering if Magnite has something up its sleeves to keep this pace going.
Based on the company’s financial data, the company said it had total revenue of $ 60.98 million for the quarter. For the most part, it saw a 51% increase in connected TV sales year over year. The reason may be behind the massive increase in video streaming content on the internet this year. In turn, this creates a scenario where content producers could rely more on Magnite to monetize their content. Ultimately, this sets the stage for Magnite in a world dominated by streaming services. The real question remains: Can Magnite make the most of these favorable winds to solidify its long-term growth prospects? Either way, investors seem to be watching MGNI stocks closely. Will you do the same?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.