5 Best Cloud Computing Stocks To Buy

2. Microsoft Corp (NASDAQ:MSFT)

Microsoft’s cloud revenue is a monster in comparison to Alphabet’s. Microsoft’s CFO Amy Hood projected total cloud computing revenues between $12.55 billion and $12.8 billion for its upcoming earnings announcement. Microsoft generated total cloud computing revenues of $11.4 billion a year ago. So, its cloud division is growing at a 10-12% rate at the moment. That’s probably why MSFT is a more valuable company than GOOGL at the moment but we believe Google Cloud will close the gap over the next few years.

By the way, Microsoft is the second most popular cloud computing stock in our list. Microsoft is also the second most popular stock among hedge funds. There were a total of 222 hedge funds with bullish MSFT positions in their portfolios at the end of June. This means one out of every 4 hedge funds had bullish MSFT positions right now. Brown Advisory recently talked about MSFT in its Q2 2020 Investor Letter, a copy of which you can download here. You can read their comments in this article.