The cloud computing industry is booming, making it an attractive investment area. The need for cloud computing is set to increase rapidly in the coming years, thanks to the secular growth of the technology. In 2023, several trends are expected to shape the industry, such as the growing use of artificial intelligence, machine learning, edge computing, and the Internet of Things (IoT).
These underlying trends will experience exponential growth, paving the way for the cloud computing industry. Investors need to consider innovation, supply and demand, diversification, scalability and market share to invest in cloud computing stocks. The best cloud computing stocks for 2023 will excel at tailoring solutions to these areas.
For example, cloud computing stocks with strong innovation and technology will be well positioned to benefit from the growing use of AI and ML. Those with high supply and demand will meet the needs of businesses that rely on cloud computing services. Cloud computing stocks with diversification and scalability will adapt to changing market conditions and continue to grow.
This article will focus on three cloud computing stocks best positioned to benefit from the major trends of 2023. These companies are leaders in the cloud computing industry and have a proven track record of innovation and technology. They also possess a strong market share, high supply and demand, diversification and scalability. By investing in these cloud computing stocks, investors can gain exposure to one of the fastest growing industries in the world and potentially profit from its continued growth.
Without further ado, here are three cloud computing stocks for you to consider.
Sales force (CRM)
Source: Miscellaneous Photography / Shutterstock.com
Salesforce (NYSE:CRM) is among the top cloud computing companies, making it a viable option for investors looking for cloud computing stocks to buy for 2023 trends. The company’s strength lies in its innovation and technology, having opened the road to cloud technology in the late 1990s.
As a comprehensive technology platform for businesses of all sizes, Salesforce has diversified its offering through organic growth and acquisitions, making it a standout in the industry.
Salesforce is renowned for the broad adoption of its customer relationship management software by companies around the world. The high demand and supply of its software adds to its appeal. The company’s diversification and scalability offer investors a reliable choice as the growth of cloud computing persists. No wonder it was on a big stock list compiled by my colleague, Alex Sirois.
Salesforce’s acquisition of Slack competes directly with Microsoft’s Teams collaboration suite. As a comprehensive technology platform for businesses of all sizes, Salesforce invests in or acquires smaller peer clouds such as Snowflake (NYSE:TO SNOW) AND Monday.com (NASDAQ:MNDY).
With shares up nearly 42% year-to-date, the momentum shows no signs of slowing. It’s the perfect time to take the train.
In summary, Salesforce is a highly profitable company that invests heavily to maximize its expansion. Under the ambitious vision of CEO Marc Benioff, the company aims to become a global tech giant within a decade. This focus positions it for sustained growth and solidifies its status among the best cloud computing stocks. Its strengths include innovation, technology, high demand, diversification, scalability and solid market share.
And if you’re still not convinced, check out this great analysis by Joel Baglole. It just adds to the reasons to invest in Salesforce.
Digital Ocean (DOCN)
Source: Monticello/Shutterstock.com
Digital Ocean (NASDAQ:DOC), a new player in the cloud computing industry, went public in early 2021.
As a public cloud infrastructure and software provider similar to AWS, Azure and Google Cloud, it stands out to cater to small businesses and start-ups. Often overlooked by larger players focusing on big business, these communities find a valuable asset in this provider.
While small businesses account for about half of the global economy’s output, the majority of IT investments are typically made by large organizations. However, a lucrative niche serving small businesses needs digital transformation. DigitalOcean addresses this need by offering a full range of affordable services to help small businesses adapt to the new age of technology.
As investors scour the market for the best cloud computing stocks to buy for 2023 trends, DigitalOcean emerges as the frontrunner. By focusing on a niche market, it aims to establish itself as a driving force in the industry.
DigitalOcean is distinguished by its emphasis on diversification and scalability. Providing a wide range of cloud services, the cloud computing company welcomes businesses of all sizes. Leveraging the capabilities of cloud computing, DigitalOcean has developed flexible and scalable solutions to drive growth.
In summary, as the demand for cloud-based services increases, DigitalOcean claims a strong market share. As a result, this makes it one of the best cloud computing stocks for astute investors. DigitalOcean positions itself well in the burgeoning cloud computing industry by maintaining a forward-thinking approach and investing in pioneering technologies.
Zoom Video Communications (ZM)
Source: Girts Ragelis/Shutterstock.com
Zoom in (NASDAQ:ZM extension) quickly went from obscurity to household name status. During the pandemic, it has emerged as an essential tool, enabling families and business teams to stay connected despite the distance.
Before the pandemic, many in-person meetings weren’t necessary, and Zoom filled the gap without a problem. Its success during the pandemic makes it a critical need for business communications services even after pandemic restrictions have been lifted.
Zoom caused a stir in the summer of 2021 by revealing plans to acquire enterprise contact center specialist Five9. Although Five9 shareholders did not approve of the deal, Zoom launched its Engagement Center video product. This move shows that Zoom is targeting a larger share of the global telecom industry by pursuing major corporate communications accounts.
Zoom is reaping the benefits of changes in personal communication. While mobile phone service remains indispensable, cloud-based video interactions could challenge conventional telecommunications companies in the future. As Internet access expands, maintaining connections may lean increasingly towards cloud software providers, sidelining traditional phone companies.
However, there is one thing worth noting before investing in Zoom stock. Undoubtedly, the company has had exemplary years during the pandemic. As a result, the markets have also helped the stock prosper. But, as of press time, the shares are down nearly 100% from their all-time high.
A slowdown in momentum can be worrying, but it’s essential to consider the bigger picture. The pandemic has shown that remote working and maintaining productivity is feasible for many organisations. This bodes well for Zoom’s long-term prospects, making a valuation adjustment profitable for investors.
Are you done with this list and want to know more? Here’s a great list of stocks worth looking into.
As of the date of publication, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed in this article are those of the writer, subject to InvestorPlace.com posting guidelines.
#cloud #computing #stocks #benefit #key #trends