3 Best Cloud Computing Stocks To Buy

Cloud computing, which is the cool term for remote data storage, has been growing for years. But COVID-19 became a big driver of the cloud with the rise in remote working. Revenue for cloud computing companies was $220 billion in 2020 and is expected to hit $360 billion in 2022. By the end of the decade, cloud computing is expected to reach $1 trillion in revenue. That's a great reason to look at these three companies.

FASTLY INC (NYSE: FSLY)

When is a major service outage good for a cloud company? We'll see what happens with Fastly, long term. On June 8, 2021, Fastly suffered a global outage. The outage occurred because one of Fastly's clients made a mistake during a configuration change. This caused an outage at Fastly's clients and their clients. Fastly was able to have everything back to normal within 46 minutes. If you've ever waited for your IT person to fix something at your office, you know that's quick.

This outage could turn out to be a major selling point for Fastly, in that they nailed the fix and returned everyone to service in less than one hour. By the end of June, Fastly's stock had increased by 22%. Overall, the stock is still 60% below its all-time high because of its relationship with TikTok and the uncertainty surrounding that company.

SALESFORCE.COM INC (NYSE: CRM)

Salesforce was an early entrant in cloud computing and is used by businesses worldwide for customer relationship management. Salesforce has acquired several companies, each of which is involved in cloud computing. Salesforce delivered revenue of $25 billion in 2020 and says it expects organic revenue growth of 19% in each of the next four years, reaching $50 billion in revenue by 2026.

TWILIO INC (NYSE: TWLO)

TWILIO went public in 2016 and its current market cap is $55 billion, putting it in the top tier of cloud computing companies. You might not have heard of TWILIO, but you've likely used it. TWILIO owns many cloud-based application interfaces, linking functions from apps and services. TWILIO recently acquired Segment, which collects and manages consumer data. TWILIO revenue is growing quickly. 1Q20 revenue saw a 57% increase over 1Q19. 1Q21 revenue was up 62% over 2020.