3 Top Cloud Stocks to Buy in April
Enterprises everywhere are migrating to the cloud or offering innovative cloud-based platforms and services. By 2025, over 95% of new digital workloads will utilize cloud-native platforms, according to Gartner. This is a tremendous increase over the 30% figure in 2021 and has some researchers predicting an addressable cloud market significantly eclipsing $1 trillion within this decade. This offers companies and investors a terrific opportunity to profit. Let's look at some dynamic cloud companies.
Any conversation on cloud investing may as well start with the current king of the cloud infrastructure market, Amazon (NASDAQ: AMZN), and its Amazon Web Services (AWS) platform. AWS is the market leader with a market share of 33%, according to Statista. Over $62 billion in revenue was provided by AWS alone in 2021, with an impressive 30% operating margin.
The most telling aspect of AWS' dominance is its accelerating growth. The segment grew sales by 37% in 2019, only to see this fall to 30% in 2020, mainly due to the pandemic. The growth accelerated to 37% again in 2021. Because of the beauty of compound growth figures, this acceleration means a much more significant gain on a dollar basis, as shown below. The market leader is not resting on its laurels.
Source Fool.com
