3 Best Cloud Stocks to Buy Now

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As the bear market wears on, most stocks have taken a pretty good hit so far in 2022. However, tech has gotten hit especially hard. Not only is this damaging to sentiment, it’s damaging to many investors’ portfolios. The silver lining is that we have an opportunity as we parse through certain categories, looking for the best cloud stocks, best advertising stocks and so forth.

As it pertains to the cloud, there are some very high-quality companies that are getting lumped in with the bad companies. That’s both good news and bad news.

It’s bad because great companies are seeing their stock prices evaporate. It may not be fair, but that’s the reality of the situation. The good news is that these sell-offs create great opportunities for long-term investors looking for the best cloud stocks.

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Ticker

Company

Current Price

CRM

Salesforce, Inc.

$167.38

MSFT

Microsoft Corporation

$256.72

TWLO

Twilio Inc.

$84.43

Best Cloud Stocks: Salesforce (CRM)

A hand with pink painted fingernails holds a Salesforce (CRM) sticker.
A hand with pink painted fingernails holds a Salesforce (CRM) sticker.

Source: Bjorn Bakstad / Shutterstock.com

Salesforce (NYSE:CRM) is perhaps one of the best opportunities on the board when it comes to cloud stocks. Many companies are seeing some sort of slowdown in their business, whether it’s related to demand, supply chain issues or inflation.

Not Salesforce, though.

The company issued strong guidance earlier this year, then raised its guidance last quarter. That came alongside a top- and bottom-line beat as sales grew 24% year over year. Co-CEO Marc Benioff had this to say: “So far, we’re just not seeing any material impact from the broader economic world that all of you are in.”

Further, Salesforce is forecast to grow revenue by 17% to 20% in each of the next four years. By maintaining top-line momentum, Salesforce is effectively securing its future bottom-line growth.

The stock still remains more than 40% below its high, giving investors a juicy discount if they’re looking to accumulate this stock for the long term.

Microsoft (MSFT)

Image of corporate building with Microsoft (MSFT) logo above the entrance.
Image of corporate building with Microsoft (MSFT) logo above the entrance.

Source: NYCStock / Shutterstock.com

Microsoft (NASDAQ:MSFT) has one of the largest cloud businesses in the entire industry. Coming in just behind Amazon (NASDAQ:AMZN) in terms of market share, this company — however obvious — should not be ignored. But it’s not just that Microsoft is one of the best cloud stocks out there. It’s that it’s one of the best stocks overall.

The company has a fortress for a balance sheet and despite its 30% peak-to-trough decline, it still sports a market cap of roughly $2 trillion. It has better operating and profit margins than the entire FAANG group too.