Top 10 High Conviction Cloud Stocks To Buy On The Next Down
Today I’m covering my top high conviction cloud stocks to buy them on the next downside. These are high growth software as a service (SaaS) and cloud stocks that I currently hold in my $ 1.6 million long term investment portfolio.
If you are unfamiliar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside your organization and offered as a subscription service. Overall, SaaS generally offers businesses a lower total cost of ownership. The latest software updates and enhancements are usually done for you as the customer, allowing businesses to have the latest and greatest without the extra effort or expense. Additionally, SaaS allows companies to shift capital spending to operating expenses, allowing them to stretch budgets from an accounting perspective.
Cloud computing refers to servers connected through the Internet, as well as software, data centers and databases that create an online network. Leveraging the âcloudâ enables users and businesses to consume and analyze data without having to manage databases or software on their own physical servers and machines on-premises.
Digital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected television (CTV) , streaming, work from anywhere, the gig economy, and other age-old growth trends are fueling SaaS and cloud infrastructure. But what are the best stocks to buy to ride those waves and boost your portfolio?
I will provide 10 actions in total on two articles and videos. Today I will cover actions 6 to 10.
#ten. salesforce.com (NYSE: CRM) is the leader in customer relationship management (CRM). Salesforce is a SaaS provider that enables organizations to integrate marketing, sales, services, e-commerce, and IT into a single customer view. Salesforce acquires Soft (NYSE: WORK), which caused the volatility of the title. The management team has proven time and time again to shareholders that they can successfully acquire businesses and add value. I am confident that this acquisition will bring tremendous added value to Salesforce customers. The company plans to integrate Slack into its Service Cloud products, which will increase the productivity of employees anywhere.
# 9. DocuSign (NASDAQ: DOCU) offers more than most people realize. Its business consists of four main pillars – manage, prepare, sign and act – which are collectively referred to as the DocuSign Agreement Cloud. The company continues to expand its offerings, and its recent results prove it. For the first quarter of Fiscal 22, revenue increased 58% year-over-year to $ 469 million. Its billings also increased 54% year-over-year to $ 527 million with a net retention rate of 125%. The video below goes into more detail, breaking down the pillars and solutions.
# 8. Twilio (NYSE: TWLO) is often misunderstood. Sure, it helps companies like Uber and DoorDash connect customers to businesses, but what else does it do? Here is a list of solutions Twilio can offer:
- Messaging: You can send and receive SMS, MMS and OTT messages worldwide (to and from over 180 countries) and in a scalable way. For example, Twilio can be used to create automated responses to customers and route important requests to humans for further interaction.
- Customer engagement: Contact centers can leverage Twilio for customer engagement channels, and the tools can be quite complex. For example, Twilio offers AI-based tools for customer self-service, automatic text notifications, reminders, and more.
- Marketing: Campaigns can use Twilio to send specific, customizable messages with the ability to track data such as click-through rates.
- Professional messaging services: Twilio can send and receive e-mails. The Twilio SendGrid messaging API enables businesses to create flexible, scalable, and engaging campaigns.
# 7 The trade office (NASDAQ: TTD) focuses on the ad-tech space, and it has a huge Total Addressable Market (TAM) when you consider the possibilities of CTV. CTV stands for âConnected TV,â which is basically any TV connected to the Internet. Thought Roku (NASDAQ: ROKU), YouTube, part of Alphabet (NASDAQ: GOOGL), Amazon First (NASDAQ: AMZN), Disneyfrom disney + (NYSE: DIS), and others. Smart TVs are changing the internet and in my opinion buying The Trade Desk is the best way to play this space. The company allows its clients to purchase advertisements or conduct global marketing campaigns in areas such as CTV, display advertisements and even social media. These are massive secular growth trends, and the Trade Desk can help your portfolio capture some of that growth.
# 6. Zoom video (NASDAQ: ZM) is the epitome of a work at home stock, but can it be a big part of the movement of work from anywhere that’s here to stay? The answer, in my opinion, is yes. Zoom is now a verb, and recently Charlie Munger told CNBC he was “in love with Zoom” and thought he was “here to stay”. I agree with him, and the video below shares more details on why.
These 10 cloud growth stocks can boost your long-term investment portfolio, so watch the video below and subscribe to make sure you don’t miss the second video covering my top five stocks.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.