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We recently published a list of The 10 best cloud computing stocks to buy nowIn this article, we will look at how Oracle Corporation (NYSE:ORCL) compares to other cloud computing stocks. You can also check out the Here are the 10 best artificial intelligence stocks to buy for under $10.

Cloud computing has changed the way we access and manage computing resources. The industry is set to grow significantly in the coming years. Market estimates predict a jump from $0.68 trillion in 2024 to a projected $1.44 trillion by 2029, growing at a compound annual growth rate (CAGR) of 16.4%. This upward trend is expected to continue, with the market reaching a value of nearly $2.5 trillion by 2032. These figures indicate increasing adoption and use of cloud solutions across various industries.

The growth of the industry is expected to be driven by a number of factors. A key factor is the growing awareness among large companies of the impact that cloud computing can have on their business. In fact, an impressive 94% of companies worldwide have already adopted cloud computing solutions. This high rate of adoption is expected to have a significant economic impact. It is forecast to generate revenues of around $3 trillion by 2030.

Currently, North America and Europe are leading the way in cloud computing adoption, with Asia Pacific following closely behind. North America holds the largest share of the global market at 41%. The region’s early adoption of technologies such as artificial intelligence (AI) and machine learning (ML) has played a key role in the growth of the cloud market.

Despite tightening regulations on data privacy and security, European markets are seeing steady growth in cloud usage. Countries such as Sweden, Finland, the Netherlands and Denmark are industry leaders in cloud usage, indicating that European companies are increasingly realizing the value of cloud solutions while navigating a regulatory environment where data privacy is paramount.

The Asia Pacific region is also currently seeing a rise in cloud computing usage. The market size increased to an estimated $32.5 billion in 2022 and is expected to contribute significantly to the global cloud computing market in the coming years. This growth is due to a large-scale shift towards digital business models across various industries in the region. The need for cost-effective solutions has driven cloud usage among small and medium-sized enterprises (SMEs). About 78% of SMEs currently use cloud services, with 39% of these companies spending up to $600,000 per year on public cloud services.

Our methodology

To make a selection of the best cloud computing stocks to buy now, we drew on Insider Monkey’s extensive database of 920 hedge funds (as of Q1 2024). We selected the cloud computing stocks with the highest number of hedge fund investors. Why do we care about the stocks hedge funds invest in? The reason is simple: Our research has shown that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points (More details can be found here).

A team of IT experts carefully develops a comprehensive performance management system for companies.

Oracle Corporation (NYSE:ORCL)

Number of hedge fund owners: 96

Oracle Corporation (NYSE:ORCL) has become a leading player in business IT solutions on a global scale, making it one of the best cloud computing stocks to buy right now.

Oracle Corporation (NYSE:ORCL) has announced its financial results for the fourth quarter and full year of fiscal 2024. Total revenue for the fourth quarter reached $14.3 billion, representing a modest 3% increase year over year. Cloud services and license support revenue increased a healthy 9% to reach $10.2 billion, indicating a strong performance from Oracle’s cloud offerings. In addition, the company reported a significant increase in remaining performance obligations (RPO) in the fourth quarter by 44% to $98 billion.

Oracle Corporation (NYSE:ORCL) has been rated Moderate Buy based on 27 analyst recommendations over the past 3 months. The average 12-month price target for Oracle Corporation (NYSE:ORCL) is $149.35, suggesting potential upside of over 6% from current prices.

Here is what Aristotle Atlantic Partners, LLC, said about Oracle Corporation (NYSE:ORCL) in its third quarter 2023 investor letter:

“Oracle Corporation (NYSE:ORCL) provides products and services for enterprise-wide information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings delivered globally through a variety of flexible and interoperable IT delivery models. The company operates in three segments: Cloud and Licensing, Hardware, and Services.

We believe Oracle’s cloud infrastructure product OCI 2.0 continues to deliver strong revenue growth over multiple quarters. In addition, we see the rapid increase in demand for artificial intelligence (AI) as a differentiated growth driver for Oracle. We believe Oracle will continue to deliver positive results for the Cerner business through improved margin structure and revenue synergies.”

Total ORCL Rank 6 on our list of the best cloud computing stocks to buy. You can visit The 10 best cloud computing stocks to buy now to see the other cloud computing stocks that are on hedge funds’ radar. While we recognize ORCL’s potential as an investment, we believe AI stocks promise higher returns and do so in a shorter time frame. If you’re looking for an AI stock that’s more promising than ORCL but trades at less than 5x its earnings, read our report on the cheapest AI stock.

READ MORE: Analyst sees a new $25 billion ‘opportunity’ for NVIDIA and Jim Cramer recommends these 10 stocks in June.

Disclosure: None. This article was originally published on Insider Monkey.

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