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5 Best Cloud Computing Stocks Heading into 2023

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In this article, we will discuss the 5 best cloud computing stocks to buy heading into 2023. If you want to explore similar stocks, you can read 15 Best Cloud Computing Stocks Heading into 2023.

5. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 103

ServiceNow, Inc. (NYSE:NOW) is a leading provider of cloud-based services and solutions in the enterprise software space, and it has seen tremendous growth in recent years. The company has a strong and growing customer base, which is reflected in its growing revenue and market share. Additionally, ServiceNow, Inc. (NYSE:NOW) has a strong balance sheet with low debt levels. ServiceNow, Inc. (NYSE:NOW) has free cash flows of $1.89 billion and a debt-to-equity ratio of 0.32, as of September 30. The company is also expanding into new markets and is investing heavily in research and development, which should provide a long-term boost to its growth prospects.

On November 17, Morgan Stanley named ServiceNow, Inc. (NYSE:NOW) as his “Top Pick” and reiterated an Overweight rating and his $520 price target on the shares.

At the end of Q3 2022, 103 hedge funds were long ServiceNow, Inc. (NYSE:NOW) and held stakes worth $4.26 billion. Of those, Tiger Global Management LLC was the top investor in the company and held a position worth $639.7 million.

Here is what Aristotle Atlantic Partners, LLC had to say about ServiceNow, Inc. (NYSE:NOW) in its third-quarter2022 investor letter:

“Underperformance in the third quarter can be attributed to ServiceNow, Inc. (NYSE:NOW)’s slight miss on the second quarter earnings and guidance that was lower than expected for its third quarter outlook. The company is facing headwinds from the weaker macroeconomic conditions and a tempered outlook resulting from elongated sales cycles and an overall slowing software spending environment. These worsening conditions were highlighted by many software companies during the second quarter earnings season. We expect this to be temporary for ServiceNow where the long-term thesis of the company’s platform strategy and relevance to digital transformation strategies remains intact. The stock was also likely impacted by the rapid increase in interest rates during the third quarter and the resulting contraction of multiples on high-growth software stocks.”

Follow Servicenow Inc. (NYSE:NOW)

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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