3 Trending Cloud Computing Stocks To Watch In May 2022
Cloud computing stocks have seen their ups and downs over the past few years. For obvious reasons, many cloud computing companies benefited greatly from the coronavirus pandemic as it prompted an increasing cloud adoption among consumers and businesses. However, fears of pandemic-driven growth coming to an end and rising interest rates have led to bearish sentiments around the industry. Having said that, many continue to see cloud migration as a secular trend.
Yesterday, we saw one of the biggest cloud computing companies report their first-quarter earnings. Google (NASDAQ: GOOGL) came in short on multiple metrics but its Cloud segment did not disappoint. The company’s revenue came in at $68.01 billion, slightly short of the $68.11 billion expected by Refinitiv. Out of which, Google Cloud revenue contributed $5.82 billion, up 44% year-over-year and exceeding estimates of $5.76 billion, according to StreetAccount.
Not to mention, companies are also working around the clock to improve their cloud offerings. For instance, Adobe (NASDAQ: ADBE) recently added Frame.io’s industry-leading video collaboration platform to its millions of Creative Cloud customers. With this, video editors and key project stakeholders could easily collaborate in the cloud. Considering all these, here are some of the top cloud computing stocks in the stock market today.
Cloud Computing Stocks To Watch In May 2022
In a world where technology is an important defining factor in the things we do today, Microsoft is a force to be reckoned with. The company develops and supports a range of software products, services, and other solutions. Its Windows Azure is one of the top public cloud computing platforms available today. Consumers can access a range of cloud services that include basic computing, storage, analytics, and networking. Hence, providing users with the flexibility to use their preferred tools to meet their goals.
Now, investors are turning their attention to MSFT stock yet again. This is largely due to its encouraging fiscal third-quarter earnings report released yesterday. Its revenue climbed to $49.4 billion, an increase of 18% year-over-year and exceeding analysts’ expectations of $49.0 billion. Out of which, the company’s Intelligent Cloud business revenue soared by 26% year-over-year to $19.1 billion. Meanwhile, its adjusted earnings per share were $2.22, versus estimates of $2.19. Overall, it appears that Microsoft is firing on all cylinders as cloud adoption increases by the day.
Aside from that, the company also recently collaborated with Mastercard (NYSE: MA) to launch an enhanced identity solution. First-party fraud is a global issue that is having an impact of approximately $50 billion. More than ever before, having a frictionless shopping experience is paramount for retailers and customers alike. Therefore, the new solution aims to improve the online shopping experience while tackling digital fraud. Mastercard will address these needs by enhancing its Digital Transaction Insights solution with next-generation authentication and real-time decision-making capabilities. And, Microsoft will be the first partner to share its insights and integrate with the new solution across several lines of business. All things considered, would you bank on the future of MSFT stock?
Following that, we will be looking at Datadog. Essentially, the company provides a monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud age. Organizations of all sizes and across a range of industries utilize its platform for digital transformation and cloud migration. As such, investors that have a special interest in cloud computing would likely have DDOG stock on their radar. Over the past year, the stock has risen more than 25%.
In fact, Datadog revealed last month that it is now a Microsoft partner within the Azure Cloud Adoption Framework. The company now integrates with the full suite of Azure services. Thus, Azure customers can now leverage Datadog’s monitoring and security capabilities to accelerate their cloud adoption with confidence. Overall, the partnership will provide companies with a clearer roadmap for cloud migration.
On top of that, Datadog also announced two new capabilities for Watchdog, its AI engine, earlier this month. Firstly, the Log Anomaly Detection will automatically understand and baseline normal patterns in logs. It will also proactively discover abnormalities such as new text patterns, and meaningful changes in data volumes of existing patterns. Meanwhile, the Root Cause Analysis works with the company’s APM products to automatically identify causal relationships between symptoms of an issue across an organization’s services. All in all, these are great additions to Watchdog as the complexity of cloud-based environments continues to be a challenge. With that said, would you be adding DDOG stock to your watchlist?
When mentioning a list of the top cloud stocks today, it is difficult to leave out the likes of Salesforce. In detail, the company’s Customer 360 platform connects customer data across systems, applications, and devices to help companies conduct commerce from anywhere. Besides that, its software is also used for application development, analytics, and marketing automation among others. With more than 150,000 companies utilizing its software to grow their businesses, Salesforce is one of the best at what it does.
Despite the stock’s struggles since the start of the year, it is not stopping Salesforce from advancing its products and services. The company started the month of April by announcing that Bose will deploy its Salesforce Customer 360. This will help Bose to expand its robust direct-to-consumer business and provide more personal and tailored experiences for its customers. Safe to say, Salesforce will take Bose’s digital footprint to a whole new level.
Additionally, another partnership was also recently forged between Salesforce and CodePath. Under which, CodePath will help to host a 10-week paid pre-internship program to prepare rising college juniors for careers in technology. The program will offer students early access to Salesforce internships and real-world experience that keeps them dedicated to completing their degree. At a time when tech talent is in high demand, having early access to these talents is a luxury that most companies would appreciate. Given these exciting developments, would you still consider CRM stock as a top cloud computing stock to watch?