In this article, we will be taking a look at the 5 best cloud computing stocks to buy now. To go through our detailed analysis of the cloud computing industry, you can go directly to see the 16 Best Cloud Computing Stocks To Buy Now.
5. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 116
Alibaba Group Holding Limited (NYSE:BABA) stands as a prominent figure in Chinese e-commerce, with Alibaba.com emerging as one of the industry’s largest platforms. Beyond its core e-commerce operations, Alibaba Group Holding Ltd – ADR (NYSE:BABA) has made significant investments across diverse markets, including cloud computing, digital media, and entertainment. Alibaba Cloud, the company’s cloud computing division, ranks among the world’s largest and offers a comprehensive suite of services spanning infrastructure, security, and data analytics.
In December, Baird analyst Colin Sebastian suggested that Alibaba Group Holding Limited (NYSE:BABA) could potentially benefit in 2024 from advancements in artificial intelligence (AI) and enhanced operational efficiencies. Despite this optimistic outlook, the analyst revised the stock’s price target down to $95. Sebastian highlighted various potential catalysts for the company, including factors such as intensified e-commerce competition, corporate restructuring, shareholder returns, initiatives related to generative AI, and developments within Alicloud, Alibaba Group Holding Ltd – ADR (NYSE:BABA)’s cloud computing division.
According to Insider Monkey’s fourth quarter database, 116 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), compared to 110 funds in the last quarter.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 131
Salesforce, Inc. (NYSE:CRM) stands as a prominent American cloud-based software company specializing in customer relationship management. Offering a suite of customized software and applications spanning sales, customer service, marketing automation, e-commerce, analytics, and application development, Salesforce, Inc. (NYSE:CRM) caters to a diverse array of business requirements.
On January 30, BofA designated Salesforce, Inc. (NYSE:CRM) as one of their top picks for 2024. Analyst Brad Sills highlighted Salesforce’s strategic positioning to further expand its market share in the cumulative $200 billion market. Notably, Sills emphasized Salesforce’s competitive advantage, boasting a market share of only 15% and a robust moat derived from its extensive installed base of over 150,000 customers in the core sales/front office category.
As of the end of the fourth quarter of 2023, 131 hedge funds tracked by Insider Monkey had stakes in Salesforce, Inc. (NYSE:CRM), up from 122 funds in the previous quarter. This indicates a surge in hedge fund sentiment for Salesforce, Inc. (NYSE:CRM).
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 166
Alphabet Inc. (NASDAQ:GOOG), a prominent player in the technology industry, is best recognized for its flagship product, Google, which serves as a leading search engine handling billions of daily queries. The company boasts a diverse portfolio that includes platforms for video streaming and productivity, with YouTube being a standout asset. Additionally, it provides Google Cloud as part of its cloud computing services, offering infrastructure, cybersecurity, data analytics, and other solutions. Furthermore, Alphabet Inc. (NASDAQ:GOOG) is active in the retail sector, offering various electronic devices such as smartphones, ultra-thin notebooks, and speakers.
As of the end of December 2023, 166 out of the 933 hedge funds covered by Insider Monkey’s research held a stake in the company. The largest shareholder of Alphabet Inc. (NASDAQ:GOOG) is Ken Fisher’s Fisher Asset Management, with holdings valued at $6.3 billion.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 293
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, maintains a diverse portfolio of business interests encompassing e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence.
In the December quarter of 2023, 293 out of the 933 hedge funds covered by Insider Monkey’s research held a stake in the firm. The largest hedge fund investor in Amazon.com, Inc. (NASDAQ:AMZN) is Ken Fisher’s Fisher Asset Management, with a stake valued at $6.4 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 302
Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) stands as a leading technology company renowned for its diverse array of products and services. These offerings include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games.
Microsoft Corporation (NASDAQ:MSFT) received praise from Wall Street following its December quarter results announced on January 31, which exceeded expectations. The positive reception underscores the company’s increasing benefits from artificial intelligence, which are only beginning to unfold. Notably, AI played a pivotal role in driving a six-percentage-point growth for Azure in the quarter, resulting in a 30% overall growth rate, surpassing the company’s earlier guidance.
In the Q4 2023 database compiled by Insider Monkey, 302 out of 933 hedge funds had acquired and held shares of Microsoft Corporation (NASDAQ:MSFT). The largest shareholder was Michael Larson’s Bill & Melinda Gates Foundation Trust, with holdings valued at $14.3 billion.
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