Source: Peshkova \/ Shutterstock <\/p>\n
Cloud computing has helped millions of companies save time and money. Businesses dont have to worry about hardware costs and can access data quickly. Also, cloud computing companies offer cybersecurity resources to keep data safe from hackers. <\/p>\n
Many stocks in the sector have outperformed the market over several years and can generate more gains in the years ahead. Therefore, these cutting-edge tech stocks look poised to expand and shape the future of cloud computing. <\/p>\n
Source: Sundry Photography \/ Shutterstock.com <\/p>\n
ServiceNow(NYSE:NOW) boasts a high retention rate for its software and continues to attract customers with deep pockets. The company has over 7,700 customers and almost 2,000 of them haveannual contract values that exceed $1 million. <\/p>\n
Further, NOWs remaining performance obligations are more than triple the companys Q3 revenue. The platform allows businesses to runmore efficient help desksand streamline repetitive tasks with built-in chatbots. Also, ServiceNow offers high-level security to protect sensitive data. <\/p>\n
Additionally, the company has been a reliable pick for investors who want to outperform the market. Shares are up by 74% over the past year and have gained 284% over the past five years. The stock is trading at a 58-forward P\/E ratio. The companys net income growth can lead to a better valuation in the future. And, ServiceNow more than tripled its profits year over year (YOY) in thethird quarter. Revenue grew at a nice 25% clip YOY. <\/p>\n
Source: IgorGolovniov \/ Shutterstock.com <\/p>\n
Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL) makes most of its revenue from advertising and cloud computing. Google Cloud has become a popular resource for business owners, boasting over 500,000 customers. Also, Alphabet stands at the forefront of AI , enhancing the tech giants future product offerings. <\/p>\n
Notably, the companys cloud segment remains a leading growth driver. Revenue for Google Cloud increased by 22.5% YOY in thethird quarter. And, Alphabets entire business achieved 11% YOY revenue growth, which is an acceleration from the previous period. <\/p>\n
Also, Google Cloud reported a profitable quarter, swinging from a $440 million net loss in Q3 2022 to $266 million net income in Q3 2023. Alphabet investors positive response to the news helped the stock rally by 57% over the past year. The stock has gained 163% over the past five years. <\/p>\n
Alphabet currently trades at a 22-forward P\/E ratio and has a $1.8 trillion market cap. Finally, the companys vast advertising network gives them plenty of capital to reinvest in Google Cloud and the companys smaller business segments. <\/p>\n
Source: Karol Ciesluk \/ Shutterstock.com <\/p>\n
Datadog(NASDAQ:DDOG) helps companies improve their cybersecurity across multiple cloud computing solutions. Cloud spending is still in its early innings and is expected to reach$1 trillion in annual spending in 2026. The company is projected to have a $62 billion total addressable market (TAM) in that year. <\/p>\n
Specifically, Datadog removes silos and friction associated with keeping cloud applications safe from hackers. Over 26,000 customers use Datadogs software including approximately 3,130 customers with annual contract values exceeding $100,000. The companys revenue growth over the trailing twelve months is currently 31%. Further, operating margins have improved significantly to help the company secure a net profit in the third quarter. <\/p>\n
In fact, DDOG has a good relationship with many cloud computing giants, including Alphabet. The two corporationsexpanded their partnership to close out 2023. <\/p>\n
Investors have been rushing to accumulate Datadog stock in recent years. Shares have gained 68% over the past year and are up by 240% over the past five years. DDOG is still more than 35% removed from its all-time high. However, continued revenue growth and profit margin expansion can help the stock reclaim its all-time high. <\/p>\n
On this date of publication, Marc Guberti held a long position in NOW. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.com Publishing Guidelines. <\/p>\n
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet. <\/p>\n
<\/p>\n
Read the original post:<\/p>\n
Beyond Cloud Nine: 3 Cutting-Edge Tech Stocks Shaping the Future of Computing - InvestorPlace<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Source: Peshkova \/ Shutterstock Cloud computing has helped millions of companies save time and money. Businesses dont have to worry about hardware costs and can access data quickly. Also, cloud computing companies offer cybersecurity resources to keep data safe from hackers. Continue reading