9 Best Cloud Stocks to Buy as Azure Growth Hits 40%

7. JFrog Ltd. (NASDAQ:FROG)

Number of Hedge Fund Holders: 50

With a short float of 4.89% and upside potential of 22.90%, JFrog Ltd. (NASDAQ:FROG) earns a place on our list of the best cloud stocks to buy as Azure growth hits 40%.

On May 8, 2026, D.A. Davidson raised its price target on JFrog Ltd. (NASDAQ:FROG) to $90 from $65 and kept a “Buy” rating on the shares. The firm pointed to impressive Q1 2026 results, noting that security adoption and cloud usage exceeded commitments tied to AI workloads across JFrog’s customer base. According to the analyst, that combination helped drive a sharp acceleration in cloud growth and sent shares higher after hours.

A more recent update came on May 11, 2026, when Barclays analyst Raimo Lenschow raised JFrog Ltd. (NASDAQ:FROG)’s price target to $75 from $70, while maintaining an “Overweight” rating.

The analyst activity followed JFrog Ltd. (NASDAQ:FROG)’s first-quarter 2026 results, where revenue increased 26% year-over-year to $154 million. The cloud business carried much of that momentum, with revenue there rising 50% to $78.9 million. That took cloud to 51% of total revenue, up from 43% in the same period last year.

That expansion was visible in the customer base as well.

JFrog Ltd. (NASDAQ:FROG)’s trailing four-quarter net dollar retention rate improved to 120% from 116%, while the number of customers spending more than $1 million annually jumped 48% to 80%.

The security business added another layer to the quarter, with CEO Shlomi Ben Haim citing growing momentum as customers consolidated tooling onto JFrog Ltd. (NASDAQ:FROG)’s platform amid rising software supply chain threats.

Profitability and cash flow held up alongside that growth, with non-GAAP operating income reaching $32.9 million and free cash flow coming in at $37.3 million. For the full year, management expects revenue of $628 million to $632 million.

JFrog Ltd. (NASDAQ:FROG) is a software company with major operations and development activities in Israel. The company provides software supply chain platforms that help organizations manage, secure, distribute, and update software applications across cloud, hybrid, and on-premises environments.