Go bargain hunting with these cheap cloud stocks

Cloud stocks have been under pressure in the past few months as investors worry about growth. The Global X Cloud Computing ETF (CLOUD) has crashed by over 30% from its highest level in December. This decline has led to some interesting opportunities in the industry as evidenced by the strong results by Microsoft and IBM. So, here are the best cloud computing stocks to buy.

IBM

International Business Machines (NYSE: IBM) is one of the most undervalued stocks in the United States. The firm has a market capitalization of about $121 billion and annual sales of over $57 billion. It also has one of the biggest dividend yields in the country.

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IBM has been a victim of its own success and ambition. For example, recently, the company decided to sell its Watson Health product for about $1 billion. That was a remarkable surrender considering that the company invested billions of dollars in the division.

The company also recently exited its technology solutions by spinning it into a separate company known as Kyndryl that is now valued at over $5 billion.

IBM is a good cloud stock because it has become a leaner company that is fully focused on cloud computing. It generated about $16.7 billion in revenue in the fourth quarter and $2.33 billion in profits.

Salesforce

Salesforce (NYSE: CRM) is a cloud computing company that is part of the Dow Jones industrial average. The company offers a wide variety of services like customer relations, communications (Slack), app integration, and business intelligence (Tableau). Today, Salesforce is a company valued at over $212 billion.

However, the Salesforce stock price has struggled recently. It has crashed by 15% in the past 30 days and 26% in the past 3 months. This decline is mostly because investors are worried about the company’s organic growth. That’s primarily because Salesforce has recently used acquisitions to fund its growth. 

Still, Salesforce is a good cloud stock to buy because of its strong market share and the fact that its business is seeing strong growth.

Snowflake

Snowflake (NYSE: SNOW) is a cloud computing company that is backed by Warren Buffett. The company offers a platform known for cloud data warehousing services. 

In the past few months, the Snowflake stock price has been under intense pressure. It has crashed by 20% in the past three months and by 22% in the past 30 days. This crash has brought its total market cap to about $81 billion. 

Snowflake is a good cloud stock because of its strong growth and demand for its services. In the past quarter, the company’s revenue rose by 109% to over $334 million.

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