5 best cloud stocks to buy for Q1 2024

Demand for cloud related services has skyrocketed in recent years with organisations around the world using the technology. This page picks out five of the best cloud stocks for the year ahead.
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Updated: Nov 30, 2023
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Small and large scale businesses across the globe have been shifting to cloud computing for the past decade. This page selects five of the top cloud companies to buy this year. We explain why they have made our list and where to get their shares. 

What are the top cloud stocks to buy?

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Our expert analysts have selected five of the best cloud stocks which you can find listed in the table below. Click the links to get up to date price information or continue scrolling for a summary of each one. 

#Stock tickerCompany nameTrade now
1MSFTMicrosoft
Trade MSFT

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2TTDThe Trade Desk
3CRMSalesforce
Trade CRM

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4SHOPShopify
Trade SHOP

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5AMZNAmazon
Trade AMZN

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List chosen by our team of analysts, updated February 2024.

1. Microsoft (NASDAQ: MSFT)

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Technology giant Microsoft is the largest software maker in the world and has offered investors tremendous gains since it had its IPO in 1986. Although it is best known for its Windows operating system, in recent years it has become a powerhouse for cloud related services. 

Its cloud computing business known as Microsoft Azure, initially launched in 2008 but it was new CEO, Satya Nadell who committed the company to the industry in 2014. Since then it has clawed market share from its biggest rival in the space, Amazon. Azure has a 20% share of the cloud computing market worldwide. 

It is a leading source of revenue for Microsoft and generates over one third of all income made from its three business segments. It has data centers on every continent, including Africa, all linked by fiber cables. Analysts believe Microsoft’s cloud services are on track to generate $140 billion in annual revenue, ahead of expectations. 

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2. The Trade Desk (NASDAQ: TTD)

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Second spot on our list goes to cloud based advertising giant, The Trade Desk. Located in California and incorporated in 2009, TTD listed on the stock market in 2016. Since then its platform has grown in value by over 2500% making it one of the fastest growing cloud technology companies around. 

It offers advertising services to some of the best known brands in the world including Walmart, Spotify, and NBC. Its cloud based demand-side platform allows ad buyers to create and manage data-driven optimised adverts through multiple channels including connected TVs and streaming services.  

One of the top reasons it makes our list is its independence. Competitors like Facebook, Amazon, and Google are incentivised to push traffic to their own platforms. The Trade Desk can direct traffic anywhere which has helped it retain 95% of its customers. Its exponential gains and continued success makes it a strong growth stock contender in the cloud market.

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3. Salesforce (NYSE: CRM)

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Headquartered in San Francisco, Salesforce is a leading software company providing comprehensive customer relationship management solutions worldwide. It was one of the first to market with cloud based software and now offers a broad range of services through multiple acquisitions made in its two decade history. 

It regularly invests in or acquires smaller cloud technology companies including Snowflake and Monday.com. However its largest takeover has been of business communication platform Slack for $27.7 billion. This purchase helped CRM navigate through the pandemic with relative ease, as more people stayed home and used online communication tools. 

It takes third place on our list because of its ability to generate and increase substantial revenues every year. Its latest financials for 2021 show it made over $21 billion. An increase of 20% compared the the year before. Furthermore, it expects to more than double revenue within the next five years to over $50 billion.  

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4. Shopify (NYSE: SHOP)

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Ranked fourth on our best cloud shares list is Shopify. The e-commerce giant provides a platform for businesses to sell their goods online. It is the largest Canadian publicly traded company and has been one of the tech industry’s biggest success stories for the past ten years. 

Using a cloud based platform, SHOP lets businesses host sales websites, while helping with analytics, and payments. It generates most of its revenue from charging monthly subscription fees, which jumped in numbers during the lockdowns of 2020. As covid hit, Shopify’s business sored and its share price tripled. 

Its popularity has resulted in over 1.5 million websites running on its platform serving customers in approximately 175 countries worldwide. It caters to some well-known brands including Pepsi and Tesla while recently signing a deal with Tik Tok allowing users to shop while they scroll. 

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5. Amazon (NASDAQ: AMZN)

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The final place on our list goes to the largest online retailer in the world, Amazon. Its industry leading cloud platform, Amazon Web Service, offers organisations a selection of infrastructure as a service (IaaS), platform as a service (Paas), and software as a service (Saas). AWS comprises over 200 products and services including computing, storage, and analytics among others. 

Launched in 2006, it offers a pay-as-you-go cloud computing model with millions of active users and tens of thousands of partners . It has the largest cloud infrastructure in the world including over 80 availability centers and 190 data centers spread across 25 geographical regions. 

Amazon web service continues to represent an increasingly large part of AMZNs overall growth. In 2020, it was responsible for delivering $13.50 billion in revenue for the company, an increase of nearly 30% from the year prior. AWS contributes 12% of Amazon’s total revenue. 

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Where to buy the best cloud shares

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To buy the best cloud computing shares you’ll first need to register with a broker. The links below will take you to our expertly selected platforms where you can get shares straight away. 

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What is a cloud stock?

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It is a company that operates the cloud, provides services on the cloud, or owns the cloud. The cloud is a global network of data centers and you’ll find some of the biggest technology companies in the world operating in this space. Cloud stocks have been around since the early 2000’s although its the past decade that has seen a massive increase in their values. 

Are cloud shares a good investment?

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They are some of the best stocks to own. Cloud stocks will range from well established tech titans like Microsoft and Google, to newer startups trying to break into the industry. Although some cloud stocks can be expensive, they are a good way to invest in businesses who also operate in other tech sectors. 

Owning cloud stocks is a good way to spread your money around and diversify your portfolio. Cloud stocks belong to the tech sector where a lot of younger companies can experience fast growth. So it’s a good idea to invest in both newer and established businesses to keep your exposure to risk low. 

The technology industry and more specifically cloud computing can be affected by new developments and changes in the market quickly. It’s sensible to keep up to date with the latest news and analysis which you can do by going to the links below. 

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Latest stock market news

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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.