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5 Best Cloud Stocks to Buy for Q1 2025
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?
Copy link to sectionOur 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 of the best stocks.
| # | Stock ticker | Company name | Learn more |
|---|---|---|---|
| 1 | MSFT | Microsoft | Learn more > |
| 2 | TTD | Alphabet | Learn more > |
| 3 | CRM | Salesforce | Learn more > |
| 4 | SHOP | Shopify | Learn more > |
| 5 | AMZN | Amazon | Learn more > |
1. Microsoft (NASDAQ: MSFT)
Copy link to section- Market Cap: $3.8 trillion
- 2023 Revenue: $211 billion
- Forward Revenue Growth: 13.9%
- P/E Ratio: 37
- Stock Price: $441
Microsoft is one of the best cloud stock to invest in. In the past decade, it has transitioned its business from selling DVDs into the biggest SaaS company in the world by market cap. Some of its top cloud services are its office suite and Microsoft Dynamics.
Microsoft has also become the second-biggest public cloud infrastructure company in the world with a 25% market share. Its Azure product is used by companies like Verizon, Close Brothers, BMO, and Adobe.
Microsoft is a good investment because of its growing market share, high margins, low churn, and high profitability. Its revenue jumped to over $211 billion in 2023 while its net income has passed $80 billion. It also has a strong balance sheet with over $100 billion in cash.
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2. Alphabet (NASDAQ: GOOG)
Copy link to section- Market Cap: $2.1 trillion
- 2023 Revenue: $307 billion
- Forward Revenue Growth: 11%
- P/E Ratio: 23
- Stock Price: $176
Alphabet is another top cloud computing company to invest in. While Google is known for its search engine, it is also a big name in the cloud industry.
It runs Google Cloud, a solution that provides storage and computing infrastructure solutions to companies from around the world. Some of its top customers are companies like Mercedes Benz, Bayer, Continental, and Audiomob. Google’s assets like YouTube and Google Music run on its cloud platform.
Alphabet has a leading market share in the cloud computing industry, where it comes third from Amazon and Microsoft. It has an 11% market share and the trend is growing.
Alphabet, like Microsoft, is a high-margin and high-growth company with a strong balance sheet. It is also a diversified business with a presence in the advertising and cloud computing industries.
3. Salesforce (NYSE: CRM)
Copy link to section- Market Cap: $221 billion
- 2023 Revenue: $34 billion
- Forward Revenue Growth: 37%
- P/E Ratio: 23
- Stock Price: $229
Salesforce is another top cloud stock to buy. It is a leading company that provides numerous services through the cloud. Its main product is its Customer Relations Management (CRM) busines, which helps companies to communicate with their customers.
Salesforce has expanded its offerings over the years. It bought Slack, the leading communication platform for companies. It also expanded to data visualization through its Tableau buyout. Also, the company bought Mulesoft, a leading platform for automation solutions.
Salesforce has been a good company to invest in as its stock has more than doubled in the past decade. Its revenue soared from over $17 billion in 2019 to over $34 billion in 2023 while its profits have moved above $5 billion.
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4. Shopify (NYSE: SHOP)
Copy link to section- Market Cap: $83 billion
- 2023 Revenue: $7 billion
- Forward Revenue Growth: 22%
- P/E Ratio: 65
- Stock Price: $65
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)
Copy link to section- Market Cap: $83 billion
- 2023 Revenue: $574 billion
- Forward Revenue Growth: 11%
- P/E Ratio: 40
- Stock Price: $183
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. It is used by some of the biggest companies the world like Uber, Netflix, Lyft, and Booking.com
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. It made over $90 billion in annual revenue in 2023 and generated most of its profits.
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Where to buy the best cloud shares
Copy link to sectionTo 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?
Copy link to sectionIt 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?
Copy link to sectionThey 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.
Methodology: How we choose the best cloud stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.
