|Bid||55.62 x 900|
|Ask||56.00 x 900|
|Day's Range||55.66 - 56.00|
|52 Week Range||45.36 - 57.07|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.01|
|Expense Ratio (net)||0.60%|
Cloud stocks are back. During the late 2018 market selloff, cloud stocks were thrown out -- along with every other growth stock in the market. But as financial markets have improved in early 2019 due to stabilizing economic fundamentals, cloud stocks have come roaring back.The First Trust Cloud Computing ETF (NASDAQ:SKYY) dropped more than 20% in late 2018. Since bottoming on Christmas Eve, the SKYY ETF has soared nearly 20%, and is now just 5% off of all-time highs.The big rebound in cloud stocks can be chalked up to improving fundamentals and sentiment. As it turns out, the global economy isn't spiraling downward at a rapid rate. Instead, it is simply slowing at a reasonable rate to a more steady 2-3% growth rate. Amid this slowdown, cloud services demand has remained robust, since cloud services are seen both as the future and a way to cut costs amid slowing growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, the fundamentals and sentiment underlying cloud stocks have dramatically improved over the past month. As they have, cloud stocks have soared higher. * 10 Monster Growth Stocks to Buy for 2019 and Beyond This rally is far from over. Considering only 20% of enterprise workloads have shifted to the cloud, it's fair to say that the rally in cloud stocks is still in its early stages. With that in mind, let's take a look a 7 cloud stocks to buy now.Source: Shutterstock Adobe (ADBE)Perhaps the best-in-class cloud stock to buy now for healthy upside and limited risk is Adobe (NASDAQ:ADBE).The core growth narrative here is quite promising. Adobe is one part stable-growth business with a huge moat, and one part hyper-growth business with a rapidly expanding addressable market. Those two parts put together are worth far more than what the market is saying today.On the stable growth side, Adobe is a one-stop shop digital solution for creative professionals with relatively muted competition. This has always been the case. If you can't think of any true competitors to Adobe in the creative solutions space, you aren't alone. Just check out this list or this list of Adobe Photoshop alternatives. None of them are household names. Nor do any of them offer products even close in quality to Adobe's offerings. As such, this creative solutions business is a stable growth business with a huge moat and no competition, implying healthy revenue and profit growth for the foreseeable future.On the hyper growth side, Adobe is morphing into a cloud business with a unique value prop. Other cloud solutions focus on various factors. Adobe's cloud solutions focuses on experiences and visuals, and the company is leveraging its experience in visual-oriented solutions to create cloud solutions for companies looking to enhance their consumer's experience. As it does, Adobe's revenue and profits will move considerably higher.Overall, there's a lot to like about ADBE stock. This is a big growth company that will keep growing at a big rate for a lot longer. That level of robust growth will power ADBE stock significantly higher in a long term window.Source: Web Summit Via Flickr Twilio (TWLO)Another best-in-class cloud stock is cloud communications app maker Twilio (NYSE:TWLO)Over the past several quarters, Twilio has emerged as the unchallenged leader in the rapidly growing Communication Platforms-as-a-Service (CPaaS) market. The CPaaS market essentially consists of companies integrating real-time communication into their services. Think of Uber or Lyft using messages to communicate with riders when their rides are approaching.This market will be huge due to continuous shifts towards cloud-based communication, personalized customer experience and digital engagement. Quite simply, as consumers, we enjoy digital, real-time, and personalized communication about the services and products we are paying for. Twilio enables this communication. That positions this company for huge growth as the CPaaS market expands over the next several years. For what it's worth, research firm IDC expects this market to grow five fold over the next five years.Thanks to its huge customer and revenue growth and 95%-plus retention rate, Twilio has emerged as the clear leader in this space. As this space matures over the next several years, companies will increasingly turn towards Twilio to enable CPaaS solutions thanks to the company's leadership position (in new industries, you always tend to trust the leader). * The 9 Best Stocks to Invest In During a Manic Market As such, over the next several years, Twilio will continue to grow at a rather robust rate. This big growth will ultimately power TWLO stock higher, especially against a favorable equity backdrop. ServiceNow (NOW)In the digitization and automation fields, the cloud stock to buy is ServiceNow (NYSE:NOW).ServiceNow is currently in the business of digitizing corporate operations. This includes automating corporate workflows and IT tasks. But, this is just the tip of the iceberg for ServiceNow. Automation is a big, big market. Automating IT tasks represents just a fraction of what the automation market will look like at scale.At scale, jobs across the entire corporate ecosystem will be replaced by more efficient digitized and automated solutions. ServiceNow will provide the lion's share of these solutions. As such, as the automation revolution plays out over the next several years, ServiceNow's revenues and profits will explode higher. As they do, NOW stock will explode higher, too, considering the valuation today remains reasonable.Overall, NOW stock is a great way to play the automation revolution. This revolution is still in the first inning, and the next eight innings promise to have broad and immense financial implications. For ServiceNow, those implications are hugely positive. As such, NOW stock should trend consistently higher over the next several years. Okta (OKTA)One of the more exciting cloud stocks to consider here is Okta (NASDAQ:OKTA).Okta is pioneering what the company calls the identity cloud. Essentially, this is a cloud solution centered on individual identity that allows millions of people across a corporate ecosystem to seamlessly, securely, and uniformly connect to the technological tools that the corporation is adopting. This may sound like a complex idea. The underlying technology is complex. But, the idea isn't. The idea is that companies everywhere are rapidly adopting new technologies, and that the implementation of these technologies is often difficult, chunky, and risky to identities and data. Okta solves this problem, and allows companies to adopt new technologies seamlessly and within the same secure cloud solution.This is a big idea. Big ideas have big markets. Indeed, the addressable market for Okta's identity cloud is the whole IT space. Okta recorded revenues of just over $100 million last quarter from growth of nearly 60%. This is nothing new. Over the past several quarters, the average revenue growth rate has hovered around 60% and the average customer growth rate has hovered around 40%. * 3 Red-Hot Stocks (And 3 That Aren't) Thus, this is a small company that is consistently and rapidly growing in a huge market. Gross margins are high, and marching higher, leaving room for big profits at scale. Overall, this is a big growth company with a ton of potential. The valuation is big, but the amount of growth firepower underneath this business implies a tremendous opportunity to grow into the valuation, and then some, making OKTA stock an attractive long term investment here.Source: Shutterstock Salesforce (CRM)The king of all cloud stocks is Salesforce (NYSE:CRM), and there's good reason for that.Salesforce is at the heart of the cloud and data revolutions. The company leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights. Demand for this type of service will grow by leaps and bounds over the next several years as data-driven strategies and cloud solutions become the enterprise norm. Salesforce has developed a long-standing reputation for being the best in class for delivering these services.That won't change any time soon. As such, Salesforce's revenues and profits will soar higher over the next several years as the cloud and data revolutions gain mainstream traction.This will naturally push CRM stock higher. Valuation is somewhat of a concern at nearly 60x forward earnings. But, the company has enough growth firepower through cloud and data tailwinds to grow into its valuation. Plus, valuation has been a long-running concern for this stock, and the stock has done nothing but defy those concerns and head higher over the past several years.The same will be true over the next several years, too. Cloud and data tailwinds will propel CRM stock higher, and this stock will ultimately grow into its valuation. Indeed, numbers indicate the stock could double in the long run.Source: Shutterstock Amazon (AMZN)Amazon (NASDAQ:AMZN) is better known for its giant e-commerce business. But, the true profit growth driver behind Amazon is the company's cloud business -- Amazon Web Services.AWS is the world's largest cloud infrastructure services business, and it's not even close. Amazon Web Services is bigger than its four closest competitors … combined. And the company has consistently controlled more than 30% of the cloud services market.This dominance speaks volumes about just how good AWS is. Indeed, AWS is so good that even Amazon's commerce competitors are giving money to the company through AWS. Notably, Amazon's e-commerce competitor Zulily migrated its infrastructure to AWS recently. Also, AWS is so good that Amazon it is the clear front-runner to win a $10 billion Joint Enterprise Defense Infrastructure (JEDI) commercial cloud contract with the U.S. government. If Amazon were to win that contract, that would be the second government contract this decade (AWS won a $600 million CIA contract in 2013). * 4 Brazilian Stocks to Buy as the Emerging Market Pauses Overall, AWS is the clear leader in the cloud infrastructure services. As this market grows over the next several years, AWS will grow, too, and that will provide a big boost to Amazon's profits. A big boost to Amazon's profits will give AMZN stock firepower to head higher.Source: Shutterstock Alphabet (GOOGL)Much like Amazon, Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) is better known for its non-cloud businesses.But, a significantly underappreciated and underrated aspect of Alphabet is Google Cloud. Google Cloud is a big growth, big margin business for Alphabet. To be sure, the business has lost some steam over the past several quarters as Microsoft (NASDAQ:MSFT) has gained cloud market share at a more robust pace than Alphabet recently. But, there have been some C-suite changes at Google Cloud which could give the business new direction and new firepower to regain some lost momentum.Regardless, Google Cloud will remain a 20%-plus growth business for a lot longer. Overall, Google Cloud is the key to unlocking the next leg of value in GOOGL stock. Fortunately, this business is progressing as expected, and will continue to do so over the next several years. As it does, GOOG stock will move higher.As of this writing, Luke Lango was long ADBE, TWLO, CRM, AMZN and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monster Growth Stocks to Buy for 2019 and Beyond * 7 Cloud Stocks To Buy Now * 5 Undervalued Stocks to Invest In Compare Brokers The post 7 Cloud Stocks to Buy Now appeared first on InvestorPlace.
It can be tough to find winners in any State of the Union speech. This is especially true when the President's approval ratings are in the 30s and congressional opposition to his agenda has become intense. As such, it might be better to look for stocks to buy in spaces that have already benefitted from the Trump years and assume little change in policy going forward. The 2017 tax cut is the signature event of this Administration, but it has not lifted all boats equally. The impact of any Administration lies in its actions rather than its rhetoric. While the Obama Administration talked a lot about the need to rein in healthcare costs, healthcare stocks did very well during that time. Trump keeps talking about coal, but don't dare invest in it. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some of the biggest market winners over the last two years have been among companies the President has attacked rhetorically, while companies he has boosted, like big banks and oil companies, have not done as well as the averages. This may change in the next two years. I think a pro-Trump portfolio without Exxon Mobil (NYSE:XOM) is missing something, although the shares are down 8.4% over the last two years. Shares in Goldman Sachs (NYSE:GS), former employer of Treasury Secretary Steve Mnuchin, are likewise down 18.4% over the last two years, despite the President's embrace of Wall Street. * 10 F-Rated Stocks That Could Break Your Portfolio With all of that in mind, here are the spaces where you might find solid stocks to buy with Trump still in charge. Source: Shutterstock ### Cloud Stocks As I mentioned earlier, companies that Trump has attacked rhetorically have been among the best investments during his Administration -- and perhaps no other space has come under fire as much as the Cloud Czars during his reign. The First Trust Cloud Computing ETF (NYSEARCA:SKYY) is up 47% over the last two years, while the average Nasdaq stock is up only 28%. Shares in Amazon (NASDAQ:AMZN), where CEO Jeff Bezos has been a particular target of Trump's animus, have doubled in value over the last two years. As stocks opened for trade Feb. 6, Amazon was the second-most-valuable company in the world, trailing only Apple (NASDAQ:AAPL), and that is by less than $10 billion. Other cloud czars such as Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), have also done exceedingly well. The cloud's chip suppliers, such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), have done spectacularly well. Companies whose applications run in the clouds, like Netflix (NASDAQ:NFLX), Adobe Systems (NASDAQ:ADBE) and Salesforce.com (NYSE:CRM), have all risen to glory over the last two years, and trillions of dollars in new market cap have been created, even after accounting for the bear market in late 2018 that took some down as much as 30%. Source: Shutterstock ### Defense Stocks When most analysts looked for stocks to buy with the coming Trump Administration on their radar, their first bet was on the defense stocks, represented by the SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR). Over the last two years, XAR has gained 37% in value, which is one-third better than the average Nasdaq stock. XAR's biggest holding is Boeing (NYSE:BA), up 146% over the last two years. BA still pays a dividend that still yields over 2%, having recently been hiked by 20% to $2.05 per share. Other big defense stocks haven't done quite that well, but Northrop Grumman (NYSE:NOC) has increased its dividend from 90 cents per share to $1.20, and General Dynamics (NYSE:GD) has increased its quarterly payout from 84 cents per share to 93 cents. * 10 Cold Weather Stocks to Heat Up Your Returns Your best bets in this sector may lie in smaller companies with specialized technologies. Harris (NYSE:HRS), known for avionics and defense satellites, is up by 49% over the last two years. Leidos (NYSE:LDOS), which makes command and control systems, has been on a tear since 2019 began, rising 16%. Source: Shutterstock ### Healthcare Stocks Health insurers have been free to fly, in terms of the rates they charge and the care they may not provide, under President Trump. You will find some of these companies in the Health Care Select Sector SPDR ETF (NYSEARCA:XLV). One of XLV's largest holdings is in UnitedHealth Group (NYSE:UNH), which has been the star of the healthcare sector show, up 65% over the last two years. Its strategy of avoiding the Obamacare exchanges while focusing on technology and drug disbursement through its Optum unit has paid off handsomely, making it one of the best healthcare stocks to buy over the past two years. The company grew revenue over 22% between 2016 and 2018, but, more importantly, profits grew 70%. The stock is still trading roughly in-line with the rest of the market, at a trailing price-to-earnings multiple of just 22. Managed care companies have done even better. The star here has been Centene (NYSE:CNC), which makes money managing Medicare and Medicaid contracts. CNC has doubled in value over the last two years. Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, he owned shares in AAPL, MSFT and AMZN. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Won Super Bowl Sunday * 7 High-Yield ETFs for Brave Investors * 10 F-Rated Stocks That Could Break Your Portfolio Compare Brokers The post 3 Stock Market Winners From Trump's State of the Union appeared first on InvestorPlace.
Cloud computing is one of the fastest-growing corners of the technology universe, but as of today, there is only one exchange traded fund dedicated to the industry. The New York-based ETF issuer recently filed plans for the Global X Cloud Computing ETF, which will target the the Indxx Global Cloud Computing Index. “The Underlying Index is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of cloud computing technology, including but not limited to companies whose principal business is in offering computing Software-as-a-Service (“SaaS”), Platform-as-a-Service (“PaaS”), Infrastructure-as-a-Service (“IaaS”), managed server storage space and data center real estate investment trusts (“REITs”), and/or cloud and edge computing infrastructure and hardware (collectively, “Cloud Computing Companies”), as defined by Indxx LLC, the provider of the Underlying Index (“Index Provider”),” according to the Global X filing with the Securities and Exchange Commission (SEC).
Comprised of stocks focused on software and services, communications and electronic equipment, semiconductors and more, the information technology sector underwent important changes in recent months. For investors looking to capture some of the momentum of the information technology sector, a great way to gain broad exposure is through a focused exchange-traded fund (ETF). ETFs centering on the information technology sector in 2018 faced many of the same struggles as funds focused on other industries and sectors, too.
First Trust Advisors L.P. ("FTA") announces the declaration of special distributions for 2 exchange-traded funds (each a "Fund," collectively, the "Funds") advised by FTA. FTA and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services.
Solid results and an encouraging outlook pushed shares of Oracle up. ETFs with the highest allocation to this software giant look to be big movers this week.
Optimism after the G20 Trump-Xi truce drove up soybean prices as the Chinese are expected to resume orders for U.S. agricultural products. Master Limited Partnerships are looking forward to the upcoming OPEC+ meeting this week in Vienna. On the technology side, cloud computing enjoyed rejuvenated investor interest following solid earnings from big players. China and various agricultural commodities like sorghum and corn made this week's list as the U.S.-China truce should propel U.S. exports to 2017 levels and beyond. Check our previous Ttrends edition at Trending: Cold Weather and Low Inventories Push Natural Gas Prices to Four-Year Highs.
Apple (AAPL) got a downgrade, and Cirrus Logic (one of Apple’s suppliers)(CRUS) pre-announced a miss for the December quarter. But most eyes were focused on the two-pronged trade war and rate move. Suddenly, the Dow (DIA) was down 800 points, and the Nasdaq (QQQ) dropped as much as 3%. The 10-yr treasury yield dropped as low as 2.88% today, down from a high of 3.24% a month ago. And the prevailing wisdom is that when 10-yr yield drops like that, it is foreshadowing lower economic growth ahead. Add that to the Fed still seemingly about to raise short term rates on Dec. 19th to 2.25%-2.5%, and we are very close to an inverted yield curve, which supposedly predicts recessions.
The last redoubt of the bull market, the cloud service stocks, was taken Nov. 19 as Twilio (NASDAQ:TWLO) fell 15% despite an absence of news. Twilio stock has been on fire in 2018, and even with the hard fall of $12.27 in intraday trading, and another $1.72 drop overnight, it was still due to open nearly three times higher than the $25.78 price it fetched at the start of the year. The rout of Twilio stock on Nov. 19 was joined by other cloud stocks and the First Trust Cloud Computing ETF (NYSEARCA:SKYY), which fell 3.53%.
FAANG stocks have lost nearly $1 trillion in value since hitting their respective 52-week highs, more than $300 billion in market value this month and about $575 billion since the start of October.
Equinix’s (EQIX) impressive back-to-back quarterly performances and a healthy demand environment for data center services is reflected in analysts’ ratings for its stock. On October 23, eight of the 25 analysts gave EQIX a “strong buy” rating, 14 gave it a “buy” rating, and the remaining three gave the stock a “hold” rating. About 88.0% of these analysts were bullish on the stock, and the remaining 12.0% have a neutral position.
Expansion in key markets through acquisitions has been an integral part of Equinix’s (EQIX) growth strategy, which has helped it expand its footprint in these markets. In the last three years, the company has almost doubled the size of its business through mergers and acquisitions. The company’s total data center count was 200 on June 30, up from 112 at the end of 2015.
As the exchange traded funds industry has matured, funds dubbed “thematic” have proliferated. Thematic ETFs are often industry funds targeting a newer, fast-growing segment of a traditional sector, such as cloud computing, cybersecurity or robotics. When the idea of thematic ETFs was still relatively new, some of these funds were panned by critics.
Emerging markets bear the brunt of angst over trade as President Trump threatens to slap another round of tariffs on Chinese goods. Cloud computing trended thanks to skyrocketing cloud usage and record capital expenditures of the largest cloud infrastructure players. Argentina came third in the list as optimism surfaced after government and IMF officials signaled progress in the talks regarding the improvement of a standby loan agreement approved in June. Lithium oversupply in China has sent prices to 14-month lows as cheap, locally produced material hurts the international market. The U.S. dollar closed the list due to positive reaction to strong wage data and an overall upbeat jobs report. Check out our previous trends edition at Trending: Markets Plough Ahead on NAFTA Breakthrough.
Is it true that the S&P 500 is flirting with failing to hold above the January highs? Yes. Is the Dow Jones Composite Average, which combines the Dow Jones Industrial Average, Dow Jones Transportation Average and Dow Jones Utility Average, running into the same dilemma? Yes.
The price-to-AFFO (adjusted funds from operations) ratio is considered to be the best multiple for valuing REITs like Equinix (EQIX). The multiple’s implications are similar to the PE ratio.
Equinix’s (EQIX) impressive back-to-back quarterly performances, an encouraging outlook for 2018, and a healthy demand environment for data center services have instilled confidence among analysts. This confidence is easily visible in their ratings on the stock.