Don’t Miss the Boom: 3 Cloud Computing Stocks Set to Explode Higher

Stock Market

In the bustling realm of technology, cloud computing shines brilliantly.

So, Astute investors are actively scouting cloud computing stocks to buy, fueled by some enticing forecasts. Fortune Business Insights predicts cloud computing’s revenue to escalate from $677.95 billion in 2023 to an astounding $2.43 trillion by 2030. And, reflecting a 20% compound annual growth rate, the sector is undeniably tantalizing.

Tracing back, the past decade has illuminated cloud computing’s transformative influence. From vibrant streaming services to meticulous financial platforms, diverse enterprises have eagerly adopted this game-changing technology. Currently, premier cloud computing stocks are at the helm, facilitating enterprises’ ambitious journey to the cloud.

In essence, cloud computing has laid out the red carpet for enterprises, presenting on-demand services such as networking and storage. No longer burdened with hefty infrastructure costs, businesses can effortlessly lean on cloud providers. With undeniable prowess and promising trajectory, these three cloud computing appear poised to redefine the digital landscape.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) is making significant strides, fueled by its size and dynamic momentum.

With an enticing price-to-earnings ratio of 32, its fourth-quarter GAAP earnings per share hit $2.69, surpassing expectations by 14 cents. Moreover, it also reported a revenue growth of 8.3% year over year (YOY), reaching $56.2 billion while beating estimates by $710 million.

Furthermore, an 18% surge in operating profits topped $24.3 billion. Meanwhile, its intelligent cloud segment, anchored predominantly by Azure, reported a commendable 15% YOY revenue growth, ringing in at $24 billion. This segment alone accounted for 40% of Microsoft’s total revenue during that quarter.

Yet, Microsoft’s horizon extends beyond these impressive figures. While its tentacles stretch into personal computers and video gaming, its foray into AI is most intriguing. As AI continues its meteoric ascent, Microsoft’s CEO Satya Nadella emphasizes its pivotal role in enriching the company’s profit landscape.

ServiceNow (NOW)

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In the shimmering world of cloud computing, ServiceNow (NYSE:NOW) is hard to overlook. With a towering valuation soaring past the $110 billion mark, NOW stock has been nothing short of stellar. Recently, it posted a 44% year-to-date (YTD) return and an eye-popping 187% rise over the past five years.

Moreover, NOW offers a game-changing software as a service (SaaS) platform. ServiceNow is propelling over 7,700 enterprise customers into a streamlined future, of which 85% hail from the Fortune 500 list. Therefore, their loyalty is undeniable, reflected in a steadfast 99% renewal rate.

Furthermore, the company’s Q2 results were exemplary, reporting a staggering revenue of $2.15 billion, eclipsing expectations by a whopping $20 million. With such performance, the company ambitiously eyes a $6.89 billion subscription revenue in 2023, signaling a 28.5% YOY growth.

Additionally, ServiceNow’s strategic foray into expansive AI language models speaks volumes about its future-oriented vision. Echoing this sentiment, TipRanks analysts are currently waving a bullish flag, suggesting a robust buy with a promising 16% upside potential.

Amazon (AMZN)

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Amazon Web Services (AWS) is much more than a mere subsidiary. It’s becoming the heartbeat of the e-commerce titan.

Amazon’s (NASDAQ:AMZN) cloud dynamo notched a notable 12% sales hike in the second quarter, touching $22.1 billion, as it eclipsed Wall Street’s $21.8 billion estimate. This surge prompted Amazon’s CEO to tip his hat to AWS, crediting it for the firm’s largest earnings beat since fourth-quarter 2020.

Yet, the real dazzler is the weight AWS pulls within Amazon’s financial framework. Clocking in a staggering 70% of Amazon’s $7.7 billion operating profit in the recent quarter, AWS’s prowess is undeniable. And it’s not just about numbers. AWS’s AI-enhanced products are drawing the attention of industrial behemoths, including 3M (NYSE:MMM) and HSBC (NYSE:HSBC).

Moreover, riding on a 50.5% spike in its stock this year, Amazon’s evolution sends a compelling message. With AWS transitioning from a mere subsidiary to the cornerstone of its vision, Amazon’s all-in bet on the future is turning heads and setting trends.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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