Cloud companies are booming as the world economy transitions from offline to online. Due to companies’ widespread adoption of the technology, the demand for cloud-related services has increased dramatically in recent years. Over the past ten years, businesses of all sizes, both small and big, have migrated to the cloud. This article selects the top 10 cloud stocks to buy in 2023. We describe their inclusion on our list, why, and how to obtain shares.
What are Cloud Stocks?
Cloud stocks refer to companies that perform in the world of cloud computing. “cloud technology” describes how data is stored and managed. The more technical definition of the cloud is servers hosting and storing user data in a physical location, enhancing security and dependability. Users can upload their data to a cloud’s servers, where it will be stored for them, eliminating the need for them to store the data themselves on a USB stick.
Some of the biggest technology businesses in the world operate in the cloud, which is a global network of data centers. It is a company that manages a cloud, offers cloud services, or controls a cloud. Although cloud stocks have been around since the early 2000s, their prices have greatly increased over the past ten years.
Below are the list of the best 10 cloud stocks to buy in 2023.
Amazon (NASDAQ: AMZN)
Amazon is the world’s largest cloud infrastructure and one of the best cloud stocks to buy in 2023. Amazon Web Service, the company’s market-leading cloud platform, gives companies a choice of platform as a service, infrastructure as a service, and software as a service option. AWS offers over 200 goods and services, including processing, storage, and analytics.
Microsoft (NASDAQ: MSFT)
The world’s biggest software manufacturer and technology behemoth Microsoft has provided investors with enormous gains since its initial public offering (IPO) in 1986. Although it is best known for its Windows operating system, it has emerged recently as a major player in the cloud service industry.
Microsoft Azure, its cloud computing division, was first introduced in 2008, but Satya Nadell, the company’s new CEO, convinced it to enter the market in 2014. Since then, it has clawed market share from Amazon, its main competitor in the industry. One of the best cloud stocks to buy in 2023 is Azure, which holds a 20% share of the global cloud computing market.
Alphabet Inc. (GOOG, GOOGL)
Alphabet, the parent firm of Google and YouTube, trails Amazon and Microsoft in market share among U.S. cloud infrastructure service providers. According to Post, Google Cloud revenue growth actually accelerated from 36% to 38% in the third quarter, while Alphabet’s search and YouTube revenue growth fell short of market expectations. This 38% increase indicates that Google Cloud is continuing to gain Amazon and Microsoft from the cloud market share.
The Trade Desk (NASDAQ: TTD)
The Trade Desk, a leading provider of cloud-based advertising, is one of the cloud stocks on the list of cloud companies to buy in 2023. TTD, based in California, was established in 2009 and went public in 2016. Since then, the platform’s worth has increased by more than 2500%, making it one of the world’s fastest-growing providers of cloud computing services.
It provides advertising services to some of the best-known brands worldwide, including Spotify, Walmart, and NBC. Its cloud-based demand-side platform enables ad buyers to build and handle data-driven, optimized advertisements through various channels, such as connected TVs and streaming services.
Salesforce (NYSE: CRM)
Salesforce is a top software provider with a global headquarters in San Francisco, offering complete client relationship management solutions. Salesforce was one of the first companies to market cloud-based software, and after making several acquisitions over its 20-year existence, it now provides a wide variety of services.
We included it on our list of the best cloud stocks to buy in 2023 because of its capacity to consistently produce and grow sizable revenues. It frequently invests in or buys lesser cloud technology firms like Monday.com and Snowflake.
Shopify (NYSE: SHOP)
One of the best cloud stocks to buy in 2023 is Shopify. Businesses can use the e-commerce giant as a platform to market their products online. It is Canada’s largest publicly traded business and has been one of the biggest success tales in the tech sector for the past ten years.
SHOP allows companies to host sales websites while assisting with analytics and payments using a cloud-based platform. Most of its income comes from monthly subscription payments, which increased in popularity during the lockdowns of 2020. Shopify’s company sored and its share price tripled as the covid set in.
Alibaba Group Holding Ltd. (BABA)
Alibaba is China’s top cloud service supplier, but it’s not for the weak. Alibaba’s stock has dropped 61% over the last five years due to Chinese and American regulators’ crackdowns on Chinese tech stocks. Alibaba’s stock fell in October following Xi Jinping’s confirmation for a third term as China’s president, indicating that regulatory pressures will persist for some time to come.
According to analyst Eddie Leung, Alibaba remains dominant in the Chinese cloud computing and e-commerce industries, making the stock a great long-term investment. BABA stock, which closed on November 22 at $75.99, has a “buy” rating and a $147 price objective from Bank of America.
IBM Corp. (IBM)
IBM, a leader in enterprise technology, has struggled to update its legacy business model and generate steady growth, but its cloud business assisted in producing outstanding third-quarter results. In the most recent quarter, IBM said that revenue increased by 6.5% and hybrid cloud income increased by 15% to $22.2 billion. According to analyst Wamsi Mohan, the report’s standout was IBM’s mainframe sales, which were boosted by the company’s first complete quarter of z16 mainframe computer sales.
According to Mohan, IBM’s revenue growth and improvement in free cash flow indicate the company’s turnaround narrative will continue. The IBM stock, which closed at $149.10 on November 22, has a “buy” rating and a $145 price objective from Bank of America.
Cisco Systems Inc. (CSCO)
Cisco Systems offers a diversified networking, security, and application software technology portfolio and collaboration. Additionally, Cisco has a wide range of cloud products in infrastructure, multi-cloud software, integrated solutions, and other cloud services. Analyst Tal Liani says Cisco is experiencing systemic issues, including weak order growth and continuing market share losses in switching and routing.
However, he says Cisco shares have an appealing valuation, the market has priced in very low expectations, and management will continue to support the stock through aggressive share repurchases. CSCO stock, which closed at $48.38 on November 30, has a “buy” rating and a $52 price objective from Bank of America.
Advanced Micro Devices
Thanks to its potent graphic processing units and CPUs, AMD is well-known in the data processing industry and has partnered with major cloud providers like AWS, Azure, Oracle, and Alphabet’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google. AMD is essential to the industry’s growth because data centers power the cloud.
While investing in the software side of cloud computing with Amazon is a wonderful idea, you can also invest in the hardware required for the industry’s expansion with Advanced Micro Devices (NASDAQ: AMD).