--- title: "What Are the Hottest Cloud Computing Stocks Right Now? 3 Top Picks." description: "The rapid adoption of cloud technologies in the last decade has boosted the growth of cloud computing stocks. The market for cloud technologies is expected to reach $1.44 trillion by 2029, with a comp" type: "news" locale: "en" url: "https://longbridge.com/en/news/210743057.md" published_at: "2024-08-05T11:00:00.000Z" --- # What Are the Hottest Cloud Computing Stocks Right Now? 3 Top Picks. > The rapid adoption of cloud technologies in the last decade has boosted the growth of cloud computing stocks. The market for cloud technologies is expected to reach $1.44 trillion by 2029, with a compound annual growth rate (CAGR) of 16.4%. While Amazon's AWS and Microsoft's Azure dominate the market, mid-sized companies like Salesforce, ServiceNow, and Datadog show promise for long-term gains. These companies offer innovative solutions and have strong growth prospects, making them top picks for investors in the cloud computing sector. The rapid adoption of cloud technologies in the last decade has served as a boon for cloud computing stocks. The technology offers businesses and individuals a plethora of benefits — namely increased scalability, efficiency and lower IT costs. This has been amplified by the emergence of GenAI which spurred a new wave of growth, catapulting cloud computing companies to new heights. These benefits alone give cloud computing companies plenty of staying power but the industry is poised for substantial growth. Data shows that the market for cloud technologies currently valued at $0.68 trillion will reach $1.44 trillion by 2029. That represents a compound annual growth rate (CAGR) of 16.4%. While the cloud computing market is a competitive one, it is largely dominated by a few tech companies. **Amazon’s** (NASDAQ:**AMZN**) AWS and **Microsoft’s** (NASDAQ:**MSFT**) Azure control over half of the market share for cloud technologies. However, beyond the big names, there’s a host of mid-sized companies that show promise for long-term gains. Here’s a look at three names vying for a piece of the pie. ## Salesforce (CRM) Source: Sundry Photography / Shutterstock.com When it comes to cloud computing, **Salesforce** (NYSE:**CRM**) is a major player in the space. The company was an early mover in the industry and one of the first companies to dabble in cloud technology. Today, its customer relationship management (CRM) system offers software critical to several industries. This includes several communication channels for marketing and commerce along with data analytics tools. This has led to substantial growth for Salesforce in the last decade. Salesforce holds a strong market position with a high-growth business model but its recent earnings were a mixed bag. Earnings per share (EPS) for the first quarter of FY25 came in at $2.44 beating the estimated $2.38 per share. Revenue grew 11% year-over-year (YOY) to $9.13 million but missed analysts’ expectations by $40 million. The company touted macroeconomic headwinds as a major reason for the dip in revenue. Nevertheless, Salesforce’s long-term prospects remain strong and the dip presents a great buying opportunity. The company has seen consistent sales growth since its public market debut in 2004. Moreover, CRM tools remain a critical component for many organizations and as a leader in the space, demand for its platform will sustain its growth trajectory. CRM stock is one of the top cloud computing stocks on the market for investors seeking a long-term play. ## ServiceNow (NOW) Source: Sundry Photography / Shutterstock.com **ServiceNow** (NYSE:**NOW**) is an enterprise software maker that helps businesses handle large amounts of data with ease. Companies can store their data on its AI-powered centralized platform to support a more collaborative work environment and prevent data silos. Needless to say, the IT giant was a large beneficiary of the emergence of AI which catapulted its growth to new heights. This was fairly evident in its impressive second-quarter numbers. ServiceNow delivered several key wins in Q2. Subscription revenues for the period climbed 25% YOY to $2.54 billion. This was largely fueled by the demand for its GenAI cloud platform that secured 11 contracts worth over $1 million. This business will serve as a major growth tailwind in the coming years. Total revenue rose by 24% with earnings at $3.13 per share. Looking ahead, the company anticipates a 20% increase in subscription revenue for the current quarter and a 22% increase for the full year. With strong financials and plenty of growth prospects, NOW stock has the potential to generate mouth-watering returns for investors in the long haul. Investors seeking a high-reward play will put ServiceNow among the top cloud computing stocks on the market. ## Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com **Datadog** (NASDAQ:**DDOG**) is a software-as-a-service (SaaS) platform that helps businesses manage their infrastructure through its cloud-based platform. It does this by providing real-time visibility on the company’s servers and databases to help troubleshoot problems before they occur. Like many of its cloud computing peers, Datadog leverages AI and uses its chatbot Bits AI to assess potential issues. Despite facing macroeconomic headwinds, the company has managed to put up some impressive results over the years. Its CAGR from 2018 to 2023 was 61%. Although it experienced a slowdown in 2023 as it reined in costs amidst declining industry growth, 2024 is shaping up to be a strong year. Revenue in Q1 grew 27% YOY and beat analysts’ estimates, giving investors plenty to celebrate. Looking ahead, the company anticipates continued momentum and expects full-year revenue to fall in the $2.59 billion to $2.61 billion range. Datadog’s earnings signal massive upside potential for the company. While the stock isn’t cheap at 69 times forward earnings, its strong market position and solid growth prospects are likely to sustain its growth trajectory. This makes DDOG one of the most compelling cloud computing stocks on the market today. *On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com* *Publishing Guidelines**.* *On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.* Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including stocks, crypto, blockchain and global policy. Cloud, Technology ### Related Stocks - [NOW.US - ServiceNow](https://longbridge.com/en/quote/NOW.US.md) - [DDOG.US - Datadog](https://longbridge.com/en/quote/DDOG.US.md) - [CRM.US - Salesforce](https://longbridge.com/en/quote/CRM.US.md) - [CP00055.US - Cloud Computing](https://longbridge.com/en/quote/CP00055.US.md) - [02826.HK - GX CN CLOUD](https://longbridge.com/en/quote/02826.HK.md) - [SKYY.US - First Trust Cloud Computing](https://longbridge.com/en/quote/SKYY.US.md) - [AMZN.US - Amazon](https://longbridge.com/en/quote/AMZN.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 亚马逊年度营收首超沃尔玛，零售双雄加码 AI 竞赛 | 亚马逊取代沃尔玛，成为年营收最高的公司。沃尔玛周四公布，其最近一个财年的年度营收为 7132 亿美元，这略低于亚马逊的 7169 亿美元。两家公司在人工智能领域采取了不同的策略：亚马逊大幅加大了对人工智能的投资，而沃尔玛则更依赖技术合作伙伴 | [Link](https://longbridge.com/en/news/276384959.md) | | 机构 “最超配” 闪迪，“最低配” 英伟达 | 据摩根士丹利最新的统计：“机构对美国大型科技股的低配程度是 17 年来最大的” 相比 2025 年 Q4 的标普 500 指数权重，“$NVDA 仍然是机构低配程度最大的大型科技股，其次是苹果、微软、亚马逊和博通，而存储巨头闪迪则是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) | | Datadog｜10-K：2025 财年营收 34.27 亿美元超过预期 | | [Link](https://longbridge.com/en/news/276238506.md) | | 缺电、缺水、缺人还抢地！美国数据中心建设狂潮面临阻力 | 科技巨头掀起的数据中心基建狂潮正遭遇严峻 “现实墙”：从电网容量、水资源瓶颈到技术工人短缺，执行风险急剧上升。亚马逊等巨头以惊人高价抢地，直接挤压住宅开发，甚至斥资 7 亿美元购入原定建房的地块。这场资源竞赛不仅推高了运营成本，更可能拖累 | [Link](https://longbridge.com/en/news/276290793.md) | | 沃尔玛四季度财报超预期但盈利指引不及预期，CEO 称 “美国低收入家庭只能勉强维持生计” | 沃尔玛 Q4 营收超预期，新财年盈利指引（每股 2.75-2.85 美元）远低于市场预期的 2.96 美元，显示通胀压力下消费者支出不确定性犹存，拖累股价下跌 1.38%。财报印证 K 型” 分化：高收入家庭驱动增长，低收入群体 “钱包吃紧 | [Link](https://longbridge.com/en/news/276398633.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.