Cloud Computing is a Market Investors Can’t Ignore

VSLoud computing is rapidly gaining ground all over the world and is a high point of modern technology. This has enabled businesses and consumers to achieve digital feats that previously seemed impossible.

Simply put, cloud computing has already started shaking the world. So what exactly is cloud computing?

Cloud computing is the delivery of computing services – including servers, storage, databases, networking, software, analytics and intelligence – over the Internet to provide accelerated innovation, flexible resources and economies of scale.

There are several reasons why consumers are turning to cloud computing.

First, cloud computing completely eliminates the high cost of purchasing expensive hardware and software and operating on-premises data centers.

Second, the cloud is secure – many cloud providers offer a comprehensive set of policies, technologies, and controls that enhance security and protect data, applications, and other infrastructure from threats.

Third, cloud computing is reliable – data backup and other digital storage issues are much easier to navigate and less expensive due to the fact that data can be mirrored across multiple sites.

Finally, the cloud is fast – the majority of cloud services are on-demand, giving consumers a higher level of flexibility and easing the pressure on capacity planning.

These are just a few of the reasons why cloud computing is growing in popularity. It’s exciting to think about what businesses can accomplish using this advanced technology in the future.

Salesforce Inc. quarterly results

A giant in the cloud space, Salesforce CRM, released its quarterly results earlier this week, and the market reacted very positively to the release. Following the report, shares jumped almost 10% the next day, and today shares climbed another 7%.

Looking at the report, quarterly EPS of $0.98 was more than enough to beat expectations, with a 5.4% beat in net income. Revenue also showed strength, as CRM reported sales of $7.4 billion, slightly beating Zacks Consensus’ sales estimate of 0.5%.

The company is no stranger to EPS beats, stringing together a more than impressive streak of 20 consecutive beats since 2017.

Revenue of $7.4 billion led to a 24% increase in revenue over the prior year quarter, and CRM launched a revenue forecast for the second quarter of the fiscal year 23 from $7.69 to $7.70 billion. Additionally, operating cash flow was $3.7 billion, a significant year-over-year increase of 14%.

The cloud results were robust. The company’s Sales Cloud continued to accelerate, surpassing $1.6 billion in the quarter under review, an 18% year-over-year increase.

The CRM Cloud Service grew 17% year-over-year to $1.8 billion in revenue during the quarter. Combined, Commerce Cloud and Marketing Cloud grew 22% year-over-year for the quarter under review.

Additionally, the company’s data clouds grew 15% year over year.

The company highlighted its success with DoorDash DASH, saying the company fulfilled over 400 million orders in the last quarter alone. DASH turned to Salesforce to improve the customer experience and respond to real-time issues for its hundreds of thousands of merchants, customers, and customers.ashrs.

Simply put, it was a great quarter for the company, and it shows just how quickly cloud computing has grown.

Alphabet (GOOGL) and Microsoft (MSFT) are some of the other companies with cloud computing operations worth highlighting.

Google Cloud

The Alphabet GOOGL company sports a robust cloud computing segment, contributing to substantial revenue growth and has been a major key enabler. The company’s cloud offerings include Google Cloud Platform and Google Workspace, which are gaining momentum in the booming cloud computing market.

Currently, Google Cloud has 29 cloud regions and 88 availability zones.

Google Cloud raked in $6.4 billion in revenue in its most recent quarter, showing a massive 41% growth over the year-ago quarter. Since fiscal 2017, Google Cloud’s revenue has grown 375%.

Additionally, the company’s growing number of data centers helps the company expand its cloud footprint.

Alphabet Inc. Price, Consensus and EPS Surprise

Alphabet Inc. price-consensus-eps-surprise-chart | Alphabet Inc. Quote

Microsoft Azure

Microsoft MSFT Azure is the company’s cloud computing service. It’s the only consistent hybrid cloud, delivering unparalleled developer productivity and comprehensive multi-layered security. Azure is available in over 60 regions around the world.

Microsoft’s Azure cloud platform led the way in a strong performance in its latest quarterly report. Since 2017, Microsoft’s cloud revenue has grown 119%.

It saw above-expected commercial bookings growth of 28% and Azure Cloud revenue was $23.4 billion, up 32% year-over-year. In addition, MSFT believes that cloud technology will be a key growth driver for global economic output and further boost its revenue in the future.

Microsoft Corporation Price, Consensus, and EPS Surprise

Microsoft Corporation Price, Consensus, and EPS Surprise

Microsoft Corporation price-consensus-eps-surprise-chart | Microsoft Corporation Quote

Conclusion

Cloud computing has quickly become a part of today’s modern world, and it seems to be the future of the digital world.

CRM’s strong quarterly report revealed just how highly consumers value cloud computing. Additionally, GOOGL and MSFT also saw robust growth on their respective cloud platforms.

It’s an exciting technology that everyone can celebrate, and companies with these operations, such as CRM, MSFT and GOOGL, will undoubtedly reap the rewards of this industry for years to come.

Investors cannot miss the boat on this wave.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Aldrich Stanley

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