On the Rise: The Top 3 Cloud Computing Stocks to Watch
Cloud computing has evolved into one of the most significant game-changers in modern technology. It allows enterprises to run and manage their websites, data and applications faster. And enables them to do it more efficiently and with less maintenance. It has also helped IT teams easily manage fluctuating and unpredictable computing power demands. Analysts see a bright future for cloud computing stocks, even if AI takes most of the headlines.
As the industry grows, so do companies that specialize in the technology. This article will look at three cloud computing stocks that are poised to grow alongside it.
Altair Engineering (ALTR)
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Altair Engineering (NASDAQ:ALTR) is a software and cloud solutions company specializing in computational science and AI. Its products provide cloud solutions and software for high-performance computing, simulation and data analytics. Many of its offerings include an ITS portfolio of software products with a list of optimization technology products. Its client engineering services offer expertise and consultations for its existing and long-term customers.
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Altair reported a solid quarterly results for Q3 2023. It experienced a 14.8% YoY increase in its software product revenues and a 12.3% increase in total revenue. The report also outlined an improvement in net loss reduction from $33.20 million in Q3 2022 to $4.40 million in Q3 2023, signifying a shift towards profitability. Its adjusted EBITDA and non-GAAP net income showed significant headway to a positive outlook for the rest of the fiscal year. ALTR’s strong leadership has made it one of the top cloud computing stocks worth buying for any growth-seeking investor.
Kyndryl Holdings (KD)
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Kyndryl Holdings (NYSE:KD) is a technology services and infrastructure company created from the spin-off of IBM’s (NYSE:IBM) infrastructure services business. The company provides technology services centered on hybrid cloud solutions, network services for information technology transformations and business resiliency. Its cloud service offerings provide a 360-degree approach to determining solutions to challenges and driving change. Its Core Enterprise and zCloud Services support services offer private clouds, enterprise infrastructure, mainframe environments and distributed computing.
KD recently reported upbeat Q2 2024 results. Its strategy, which focuses on alliances, advanced delivery and accounts initiatives, paid off. Its quarterly earnings beat analyst expectations by 76.19%, and adjusted EBITDA increased by 34%.
In addition, KD’s alliances initiative raked in $180 million in revenue, redeployed 7,500 professionals via its advanced delivery initiative and successfully addressed contracts with substandard margins under the accounts initiative. These initiatives have improved the company’s performance and created an even more positive outlook for the rest of the fiscal year and the next. Its commitment to returning to revenue growth and resilience are just some reasons why KD is currently one of the key cloud computing companies on the rise.
Akamai Technologies (AKAM)
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Akamai Technologies (NASDAQ:AKAM) is a cloud service provider specializing in optimizing, securing and delivering online content through its worldwide network of servers. Its services fall under three main categories, content delivery, computing and security. It offers web applications and API protections as part of its cloud security solutions to protect customer information and data from various threats. Its mobile and web services provide real-time monitoring and intelligent performance optimization to help enterprises identify and address performance issues. The company recently announced a partnership with Deloitte to develop a unified product and service to mitigate ransomware attacks.
Akamai reported a strong quarter with a 9% increase in revenue. Cloud computing and security accounted for 61% of that total. AKAM still has a positive overall financial picture despite not meeting analyst earnings estimates. Its robust financials and strong management that made strategic initiatives and investments in key growth areas may be why investors love the stock and make it one of the best cloud companies to buy.
On the date of publication, Rick Orford 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.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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