The 7 Best Growth Stocks to Buy in Cloud Computing (2023)

The dynamic cloud computing space presents excellent opportunities for investors to capitalizestock growthAlthough the industry is under pressure from last year's stock market crash, the growth potential for cloud computing stocks remains stronger than ever. As market sentiment changes, investors may build positions in top growth cloud computing stocks at historically low levels.

Cloud computing has revolutionized the way organizations operate, increasing the level of efficiency in digital business. Companies around the world are using the power of cloud computing to analyze data, develop cutting-edge machine learning models, and facilitate seamless collaboration across teams.

Market estimates show that the cloud computing industry was worth around $483 billion last year,Could triple to over $1.5 trillion by 2030.. Given these incredible numbers, investing in the top growth stocks in cloud computing can be very profitable for the savvy investor.

Cloud computing growth stocks to buy: Amazon(Amazonas)

Amazonas(NASDAQ:Amazonas) is the undisputed leader in the multi-billion dollar cloud infrastructure services market. Amazon Web Services (AWS) is firmly positioned as a leading competitor in the cloud,It has a market share of 33%, almost twice as much as the next two competitors.

His cloud division has been experiencing double-digit revenue growth for years, essentially becoming the cash cow for his business. Recent results indicate a significant slowdown in the sector's growth rate amid a challenging macro environment. Still, its sales grew 20% year-over-year, contributing $21.4 billion to its total revenue base.

In the long term, research firms like Redburn believe the sector could be a separate entity valued at more than $3 trillion. Also, given Amazon's market capitalization of roughly $1.04 trillion, the value of its cloud division alone could grow 200%.

Sales force(CRM)

Sales force(NYSE:Customer relationship management system.) has established itself as a software leader in cloud-based customer relationship management solutions. It is a very stable business that has achieved double-digit revenue and EBITDA growth in recent years. Also, it has a very strong user base that helps generate strong cash flow every year.

Despite the post-pandemic economic slowdown and customers increasingly choosing to buy software, the company has proven resilient in terms of growth. In the fourth quarter,The company reported revenue of $8.4 billion, up 14% year-over-year., more than 90% of revenue comes from subscriptions. Additionally, the tech giant's full-year sales rose an impressive 18% to $31.4 billion.

Additionally, CRM has recently shown a shift towards prioritizing shareholder returns. It increased its share buyback program from $10 billion to $20 billion on the back of strong cash flow performance. In addition, the appointment of an Elliott Management director to its board of directors further strengthens its commitment to investors. That makes it one of the fastest growing cloud computing stocks in my book.

adobe(ADBE)

Adobe(NASDAQ:ADBEThe ubiquitous stack of creative software has made it a household name for content creators around the world. After switching its business model to software as a service (SaaS) more than a decade ago, the company has become a formidable force in the cloud computing ecosystem. Their paid subscriptions now account for more than 93% of their total quarterly sales, helping to strengthen their ongoing revenue base. Additionally, its free cash flow per share increased from $1.92 in 2013 to $15.75 in 2022.

Adobe's creative, documentary and experiential clouds collectively posted double-digit growth in annual paid subscriptions. For example, your annual fixed income (ARR) as its Creative Cloud grew from $768 million in 2013 toAn incredible $11.6 billion at the end of last yearThese staggering growth numbers are a testament to the impact of the strategic shift to cloud computing.

microsoft(Microsoft Corporation)

tech giantmicrosoft(NASDAQ:Microsoft Corporation) grabbed headlines this year for its investments in artificial intelligence through OpenAI. However, its involvement eclipsed its other successful products, such as the Azure cloud platform. according to a market research firmpolitical, Azure has about 23 percent of the global cloud infrastructure market, just behind AWS, which controls 33 percent of the market share.

Revenue from its cloud division is growing rapidly every quarter. Despite the slowdown in cloud spending, cloud segment revenue grew 29% in constant currency in the second quarter of fiscal 2023. Perhaps most impressive is its ability toIncreased market share from 23% to 21%During the quarter, it fell from 34% to 33% compared to AMZN.

Snowflake(snow)

Snowflake(NYSE:snow) is a pioneer in the data-as-a-service space, a market on the verge of becomingWorth more than $42.7 billion next year.

While it still has a ways to go to be profitable, its absurd top-line growth is unmatched. Its sales have grown 127% in the last five years, with future estimates of around 50%. Additionally, its FY2023 revenue will grow 69% year-over-year, demonstrating its strength in this area.

Additionally, their user base has grown by 31% over the last year, with a whopping 79% growth in large accounts. With an excellent revenue retention rate of more than 150%, the company appears to be on track to reach $10 billion in product sales in fiscal 2029. Additionally, its board of directors has approved a $2,000 share buyback program million over the next two years, which points to an extremely bright future. tiprank analystEstimated growth potential of 25%.from current price levels.

data dog(no)

data dog(NASDAQ:no) is a giant in the cloud monitoring market that offers its clients an unrivaled SaaS-based data analysis platform. It allows users to effectively monitor and protect digital infrastructure channels from a single location. Additionally, it reduces deadlocks and vulnerabilities, ensuring a robust digital environment.

The company's meteoric rise is unmatched in its niche, with sales rising from $101 million in 2017 to $1.7 billion last year. It has 317 users who have spent more than $1 million on the platform, 47% more than the previous year. On top of that, it continues to add new features to its platform, including a recent integration with Amazon Security Lake.

Datadog has its tentacles in some of the most lucrative cloud verticals that are predicted to experience phenomenal growth each year. For example,Future vision of the marketThe observation deck market is estimated to grow at a staggering CAGR of 8.2% between 2022 and 2032.

Palo Alto Networks(PANW)

The unprecedented proliferation of cloud-based platforms has ushered in a new era of cybersecurity. Cloud security has become more important than ever, with cybersecurity leaders likePalo Alto Networks(NASDAQ:PANW) are ready to benefit from this trend.

The company offers superior security solutions designed to effectively protect cloud environments from cyber threats. With integrations with major cloud platforms such as AWS, Azure, and GCP, it effectively provides some of the most powerful data protection tools in the cloud. As businesses continue to embrace digital transformation, Palo Alto Networks is poised to capitalize on the growing demand for strong cloud security.

3er trimester 2022,Palo Alto is a leading provider of cybersecurity, which represents an interannual growth of 24.9%, and its market share increased to 8.4%. Additionally, its revenue growth rate of more than 26.7% is higher than the five-year average growth rate of 25.5%, indicating the importance of its customer services.

As of the date of publication, Muslim Farooque has not held (directly or indirectly) any position in the securities mentioned in this document. The opinions expressed in this article are those of the author and are administered by InvestorPlace.comPosting Guidelines.

Muslim Farooque is a passionate investor and an optimist at heart. A lifelong gamer and technology enthusiast, he is particularly interested in analyzing technology stocks. Muslim has a degree in applied accounting from Oxford Brookes University.