Free Trial

How to Find Cloud Software Company Stocks to Trade and Invest

→ The Worst is Yet to Come… (From Porter & Company) (Ad)
Image of businessman with cloud computing

Key Points

  • Cloud computing services include technology stacks for the end user, enabling on-demand access to a shared pool of configurable computing resources.
  • There are three main categories: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS).
  • Learn some ways you can invest in companies in the cloud computing space.
  • 5 stocks we like better than Amazon.com

As digital media expands and personal file collections grow, cloud computing stocks have become a major focal point for investors. This industry, vital for global connectivity and collaboration, has experienced steady growth, particularly highlighted during the ongoing digital transformation spurred by the COVID-19 pandemic.

Discover the mechanics behind cloud computing and what investors are seeking in this dynamic sector.

Exploring Cloud Computing Companies

Understanding how cloud computing companies operate is essential before investing. These companies manage remote servers accessed by users who aren't physically connected, allowing them to download, edit, and store on a virtual platform. This arrangement saves substantial money and physical space over maintaining physical infrastructure.

Cloud computing delivery can be segmented into:

  • Public cloud: Public clouds like Netflix NASDAQ: NFLX are available to the public through subscriptions or accounts, allowing access to vast resources and potential investment opportunities.
  • Private cloud: Contrastingly, private clouds serve a specific organization and are often located near the company's main operations to optimize performance and security.

Investment opportunities in cloud computing can also stem from supporting industries like those producing necessary hardware, such as Nvidia Corp. NASDAQ: NVDA, which has benefited from increased demand.

Cloud companies vary in structure and service level, from foundational Infrastructure-as-a-Service (IaaS) to Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS).

Key Factors Affecting Cloud Computing Stocks

Cloud computing stocks, like those within the broader tech sector, are influenced by various factors including market demand, technological advancements, and financial performance.


Demand for cloud services is shaped by innovations in AI, IoT (Internet of Things), and edge computing, which involves processing data closer to the source of data generation, thus enhancing speed and connectivity.

Financial Health

Important financial metrics for investors include revenue growth, profit margins, and operating expenses. Companies like Amazon.com Inc. NASDAQ: AMZN dominate the market, underlining the importance of robust financial health in sustaining growth.

Competitive Analysis

Understanding the competitive landscape is crucial, with major players like Salesforce NYSE: CRM, Microsoft NASDAQ: MSFT, and Adobe NASDAQ: ADBE shaping the industry.

Risks and Challenges

Investing in cloud computing comes with its set of challenges, including regulatory hurdles, cybersecurity risks, and market volatility. Regulations like GDPR and cybersecurity threats are significant concerns that could impact investments.

Investment Strategies in Cloud Computing

Investors can choose between individual stocks and ETFs based on their risk tolerance, knowledge level, and investment goals. Companies like ServiceNow NYSE: NOW and Zoom Video Communications NASDAQ: ZM represent potential stock investments.

For broader exposure, ETFs like Global X Cloud Computing ETF NASDAQ: CLOU, Themes Cloud Computing ETF NASDAQ: CLOD, and First Trust Cloud Computing ETF NASDAQ: SKYY are attractive for their diversified holdings.

How to Get Started with Cloud Computing Stocks

Starting your investment in cloud computing involves research, selecting the right brokerage, and placing your buy orders effectively. Websites like MarketBeat provide essential guidance in these initial steps.

FAQs

What are the best cloud stocks?

Leading companies like Amazon, Google, and Salesforce are prominent players in the cloud computing arena.

Is it good to invest in cloud computing?

With the industry's rapid growth and significant innovation, investing in cloud computing can offer substantial returns, though it requires careful analysis and strategy.

What are the big cloud software companies?

Major firms such as Amazon, Microsoft, Adobe, and Alphabet (Google) dominate the cloud computing landscape, offering a variety of services and substantial market presence.

→ Biden Nomination CANCELED? (From The Freeport Society) (Ad)

Should you invest $1,000 in Amazon.com right now?

Before you consider Amazon.com, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amazon.com wasn't on the list.

While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

20 Stocks to Sell Now Cover

MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. Are any of these companies lurking around your portfolio? Find out by clicking the link below.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Amazon.com (AMZN)
4.6133 of 5 stars
$179.77-1.2%N/A50.36Buy$211.62
Microsoft (MSFT)
4.8207 of 5 stars
$418.47-2.5%0.72%36.23Moderate Buy$454.70
Compare These Stocks  Add These Stocks to My Watchlist 

Sarah Horvath

About Sarah Horvath

  • horvath.sarah17@gmail.com

Contributing Author

Retail, Healthcare, and Real Estate stocks

Experience

Sarah Horvath has been a contributing writer for MarketBeat since 2022.

Areas of Expertise

Retirement investing, long-term retail investing, personal finance

Education

Bachelor of Arts, Arcadia University

Past Experience

Vanguard, Nationwide, Benzinga and MarketWatch


Featured Articles and Offers

How to Become a "Make Money" Investor

How to Become a "Make Money" Investor

Whether you're a seasoned investor or just starting, this video offers valuable insights into making strategic choices that prioritize long-term growth and stability over short-term gains.

Search Headlines: