<div id="readability-page-1">Wall Street investors have been paying close attention to the growth of the cloud computing sector. According to a recent survey, 94% of major companies worldwide utilize cloud computing in their operations. Businesses are migrating their operations and data onto cloud platforms, seeking the benefits of scalability, cost-efficiency and enhanced security. From remote workforces to on-demand storage, cloud solutions offer agility and flexibility that traditional IT infrastructure simply can’t match. Meanwhile, cloud platforms are continuously evolving, offering new features and services such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT) and advanced analytics. Companies that invest in these technologies can gain a competitive edge, making cloud providers indispensable partners. Further highlighting the sector’s strength, the First Trust Cloud Computing ETF (NASDAQ:SKYY) has already gained over 12% year-to-date (YTD). SKYY is an exchange-traded fund (ETF) providing exposure to U.S. companies involved in the cloud computing industry. This strong performance reflects the high demand from investors seeking a diversified play on the cloud computing industry. With that being said, here are three best cloud computing stocks that could be prime candidates for significant growth in the third quarter of 2024. <h2>Amazon (AMZN) </h2> <div id="1444591"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Sundry Photography / Shutterstock.com</div>First up on our list of best cloud computing stocks is Amazon (NASDAQ:AMZN). Unequivocally regarded as the global e-commerce leader, Amazon’s reach extends far beyond online retail. Through Amazon Web Services (AWS), the company has become a dominant player in the cloud computing industry, too. AWS offers a comprehensive suite of on-demand cloud computing services, including storage, compute power, databases, networking, analytics, and machine learning. Amazon delivered solid first quarter of fiscal year 2024 results, with net sales climbing 13% year-over-year (YOY) to $143.3 billion. Investors noted that AWS revenue jumped by 17% to $25 billion. Furthermore, net income and diluted EPS both skyrocketed around 220% to $10.4 billion and 98 cents, respectively. In late April, AWS announced the launch of Amazon Q, a powerful generative artificial intelligence (GenAI) assistant. Amazon Q is designed to improve software development tasks, such as generating, testing and transforming code. This AI tool could also empower businesses to leverage internal data, streamlining data utilization across various departments. So far in 2024, AMZN stock has soared more than 30%. The shares are trading at 41.2 times forward earnings and 3.5 times sales. Analysts have a 12-month price target of $220 for AMZN, signaling a 10% upside potential. <h2>Microsoft (MSFT)</h2> <div id="2459325"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: The Art of Pics / Shutterstock.com</div>Windows and Office, the operating system and productivity suite, have cemented Microsoft (NASDAQ:MSFT) as a household name. However, a significant growth engine for MSFT in recent years has been Microsoft Azure, its cloud computing platform. Azure offers a robust portfolio of cloud solutions, including virtual machines, storage, databases, analytics and AI tools. Microsoft, the second name among our best cloud computing stocks to buy, delivered a robust fiscal third-quarter report with revenue climbing 17% YOY to $61.9 billion. This growth was fueled by surging demand for Microsoft Cloud services, which saw revenue surge 23% YOY to $35.1 billion. Profitability also improved, as net income and diluted earnings per share both increased 20%, reaching $21.9 billion and $2.94 respectively. Currently, Microsoft Azure is addressing developer needs with its new stock keeping unit (SKU) for its Azure Bastion service: Bastion Developer. This low-cost, zero-configuration solution offers secure-by-default connectivity to Azure Virtual Machines (VMs). It also eliminates the need for complex configurations, public IP addresses and other security risks traditionally associated with VM access. MSFT stock has surged more than 22% YTD. The shares are currently trading at 43.3 times forward earnings and 14.4 times sales. Wall Street has a 12-month median price forecast of $480 for MSFT, suggesting 5% upside. <h2>ServiceNow (NOW)</h2> <div id="2250790"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Sundry Photography / Shutterstock.com</div>Rounding out our discussion of best cloud computing stocks is ServiceNow (NYSE:NOW). While not directly providing cloud computing infrastructure, ServiceNow instead focuses on a specialized cloud-based software-as-a-service (SaaS) platform for enterprise workflow management. Its “Now Platform” streamlines digital workflows across various IT operations functions, including incident management, problem resolution and change management. This cloud-based approach allows enterprises to automate processes, improve efficiency, and gain real-time visibility into their IT operations. In the first quarter of 2024, ServiceNow reported robust financials, with total revenues exceeding $2.6 billion for 24% YOY growth. Current remaining performance obligations grew 21% YOY to $8.45 billion. Net income totaled $707 million while diluted EPS came in at $3.41. ServiceNow and Microsoft have recently strengthened their strategic alliance by integrating their GenAI capabilities. This collaboration brings together ServiceNow’s Now Assist and Microsoft’s Copilot, where each AI assistant can automatically identify the most relevant context to assist the user. NOW stock has jumped almost 12% YTD. The shares are trading at a rich valuation of 56.4 times forward earnings and 17.2 times sales. Finally, analysts have a 12-month price target of $850 for ServiceNow stock, around an 8% upside. On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace’s Publishing Guidelines. On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.Growth Stocks </div>

CP00055

SKYY

02826

AMZN

MSFT

Wall Street investors are closely watching the growth of the cloud computing sector, with 94% of major companies worldwide utilizing cloud computing in their operations. The First Trust Cloud Computing ETF has gained over 12% year-to-date, reflecting the high demand from investors. The three best cloud computing stocks to buy in July 2024 are Amazon, Microsoft, and ServiceNow. These companies have shown strong performance and offer a comprehensive suite of cloud solutions. Amazon's AWS revenue jumped by 17%, Microsoft Azure saw revenue surge 23%, and ServiceNow provides a specialized cloud-based SaaS platform for enterprise workflow management.

The 3 Best Cloud Computing Stocks to Buy in July 2024