You could say that cloud stocks have weathered through the stock market this year. The resilience top cloud stocks to watch have shown is a feat not many industries can pull off. As the coronavirus pandemic devastated the stock market this year, cloud companies are still thriving and have shown their worth. The pandemic had essentially shifted companies online in order to carry on business as usual. With work from home orders and lockdowns in place, many companies would turn to these cloud computing companies for support and growth.
For instance, cloud stocks like Snowflake (SNOW Stock Report) have been on investors’ minds lately. Despite only going public in September, the stock has been up by over 160% since its IPO. The cloud stock is backed by Warren Buffett’s Berkshire Hathaway (BRK.A Stock Report). If Warren Buffett has bet on a cloud stock, you can expect many investors to follow suit. Microsoft (MSFT Stock Report) is also another example of a cloud stock that has been enjoying much success recently. MSFT stock is up by over 50% since the March lows.
Cloud stocks are no doubt a high growth investment as 2020 has shown us so far. These stocks generally have very high valuations as well. The question is, could this growth be carried on into 2021 and beyond? Even with the Moderna (MRNA Stock Report) and Pfizer (PFE Stock Report) vaccine being distributed next year to the masses, cloud companies will still be in high demand. Many cloud companies are also highly scalable in their services, so they will be able to facilitate expansion as well. With that in mind, here are 3 of the best cloud stocks to watch this month.
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Salesforce.com (CRM Stock Report) is a cloud stock that has enjoyed huge success this year. The company essentially provides customer relationship management (CRM) service and also sells a complementary suite of enterprise applications. The company’s shares have almost doubled since the March lows.
The company is set to release its third-quarter fiscal today after the market closes. In its second-quarter fiscal, Salesforce has delivered durable growth yet again. The company has been the No. 1 CRM software provider worldwide by revenue for the 7th consecutive year. It has also delivered a whopping revenue of $5.15 billion, which is a 29% increase year-over-year. Overall, the company’s financials seem to be in good shape as it noted increased revenue in cloud sales and service. Will Salesforce be able to report strong growth today as well?
More recently, there has been a hot buyout rumor right now. Salesforce is in the midst of acquiring Slack Technologies (WORK Stock Report), which is known for its business communication software. WORK shares have skyrocketed by about 40% in the last week alone. As Salesforce’s services automate business processes, these could help its employees make better business decisions. This on top of a total addressable market of $176 billion by 2024 for Salesforce promises substantial growth for the company in the years to come. All things considered, should you have CRM stock in your portfolio?Best Cloud Stocks To Watch Now: Veeva Systems Inc.
Next on this list is Veeva Systems (VEEV Stock Report). Veeva Systems is a leading global provider of cloud-based software solutions for the life sciences industry. It basically allows pharmaceutical and other life sciences companies to utilize modern cloud-based architectures and mobile applications for their most critical business functions. The company’s shares are up by over 90% year-to-date and show no signs of stopping. Veeva Systems will announce its third-quarter results later today.
In its second-quarter fiscal, the company reported that its subscription services revenues increased by 30% to $283.5 million. It also posted a net income per share of $0.58, which is a 16% increase year-over-year. Veeva Systems attributes this growth to strong demand for its products and services as life sciences companies pursue strategic initiatives across R&D and commercial. The company also remains committed to investing in product excellence, customer success, and long-term growth.
In this quarter, the company unveiled MyVeeva for Doctors. It is a website and mobile application that will give healthcare professionals access to contacts, content, and services from across many pharma companies and brands. This would no doubt help doctors give better care to their patients. With its easy to use interface, more healthcare professionals would turn to Veeva Systems in the long run. Through the Veeva Vault Platform, it allows companies to bring content and data together for seamless end-to-end business processes. With the strength of its product portfolio, would you add VEEV stock to your watchlist in December?Best Cloud Stocks To Watch Now: Amazon Inc.
It is hard to write a cloud stock list without mentioning the industry titan Amazon (AMZN Stock Report). Through its subsidiary Amazon Web Services (AWS), the company provides on-demand cloud computing platforms and Application Programming Interface (API) to companies and governments. Amazon shares have been up by over 80% since the March lows.
AWS had exceeded estimates on operating income in its third-quarter fiscal posted in October. Amazon’s cloud business reports a 29% increase in revenue as demand for products that rely on it such as Slack and Zoom (ZM Stock Report) remains at an all-time high during the coronavirus pandemic. In total, the company also reported net sales of $96.1 billion, a 37% increase compared to a year earlier. The company also posted a net income of $6.3 billion in this quarter.
Amazon announced that there was significant customer momentum for AWS with new commitments and migrations. This includes leading payments technology company Global Payments (GPN Stock Report) and biotechnology company Moderna. For instance, AWS will help Moderna accelerate the development of its messenger RNA medicines to prevent and fight diseases. The company also announced Luna, a new cloud gaming service that allows customers to play high-quality games on devices they already own. Luna is built on AWS and harnesses the power of the industry’s broadest and deepest cloud platform. As there are so many exciting developments surrounding Amazon, will you consider AMZN stock as a top cloud stock to buy this month?