© Reuters. 3 Best Cloud Stocks to Buy in August
While companies that offer cloud-based services face challenges, such as frequent cyber-attacks, the industry is expected to perform well due to the continuation of the adoption of remote working and the requisite need therein for advanced technologies. So, we think it could be wise to bet on Veeva (VEEV), Teradata (TDC), and Brightcove (BCOV). These names are well-positioned to capitalize on the industry tailwinds. Read on.Even though cloud-based service providers are vulnerable to cyber-attacks, governments and businesses have been spending billions of dollars on cloud-based services to facilitate the ongoing digital transformation and remote working. According to a Synergy Research Group report, cloud infrastructure spending reached $42 billion in the second quarter of 2021.
Investors’ interest in the cloud industry is evidenced by the WisdomTree Cloud Computing Fund’s (WCLD) 12.5% gain over the past three months versus the SPDR S&P 500 ETF’s (SPY) 4.9% gains. With continuous innovation in artificial intelligence (AI) and machine learning (ML), the cloud industry is expected to continue growing. According to a Fortune Business Insights report, the global cloud computing market is expected to grow at a 17.9% CAGR between 2021 – 2028.
So, we think it could be wise to bet on the shares of established cloud-based companies Veeva Systems Inc. (NYSE:), Teradata Corporation (NYSE:), and Brightcove Inc. (BCOV). They each have the potential to capitalize on the industry’s growth.