We recently The 10 best cloud computing stocks to buy nowIn this article, we’ll look at how Workday, Inc. (NASDAQ:WDAY) stands relative to other cloud computing stocks. Here are the top 10 artificial intelligence stocks you can buy for under $10.
Cloud computing has transformed the way we access and manage computing resources, and the industry is set to experience significant growth over the next few years. Market forecasts predict that cloud computing will grow to between $1 billion and $2 billion.0.68 The cloud market size was $1 trillion in 2024 and is projected to reach $1.44 trillion in 2029, a compound annual growth rate (CAGR) of 16.4%. This upward trend is expected to continue, with the market size expected to reach nearly $2.5 trillion by 2032. These figures indicate the increasing adoption and usage of cloud solutions across various industries.
The growth of the industry is likely driven by several factors. One key factor is the increasing awareness among large enterprises of the impact that cloud computing has on their operations. 94% of businesses worldwide have already adopted cloud computing solutions. This high adoption rate is expected to have a significant impact on the economy, with a projected potential to generate approximately $3 trillion in revenue by 2030.
Currently, North America and Europe lead the way in cloud computing adoption, followed by Asia Pacific, with North America accounting for the largest share of the global market. 41The region has been an early adopter of technologies such as artificial intelligence (AI) and machine learning (ML) and has played a key role in driving the growth of the cloud market.
Despite increasing regulations around data privacy and security, cloud adoption is steadily increasing in the European market. Countries such as Sweden, Finland, the Netherlands and Denmark are leading the way in cloud adoption within certain industries. This shows that European businesses are increasingly realizing the value of cloud solutions while navigating a regulatory environment that prioritizes data protection.
Asia Pacific is also currently seeing an increase in cloud computing adoption. The market size is expected to grow to an estimated $32.5 billion in 2022, contributing significantly to the global cloud computing market over the next few years. This growth is attributed to a massive shift to digital business models across various industries in the region. The need for cost-effective solutions is driving cloud adoption among small and medium-sized businesses (SMBs). 78% of small and medium-sized businesses currently use cloud services, and of those, 39% spend up to $600,000 annually on public cloud services.
Our Methodology
To narrow down the best cloud computing stocks to buy now, we turned to Insider Monkey’s massive database of 920 hedge funds as of Q1 2024. We picked cloud computing stocks with the highest number of hedge fund investors. Why are we interested in stocks that hedge funds are flooding into? The reason is simple: our research has shown that you can outperform the market by mimicking the top picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (Click here for details).
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Workday, Inc. (NASDAQ:WDAY)
Number of hedge fund holders: 83
Workday, Inc. (NASDAQ:WDAY) is a global provider of enterprise cloud applications for finance and human resources founded in California in 2005. The company’s software offers financial management, human capital management, and analytics solutions to businesses, educational institutions, and government organizations.
Workday, Inc. (NASDAQ:WDAY) announced strong financial results for the first quarter of fiscal year 2025, which ended April 30, 2024. Total revenue reached $1.99 billion, an impressive increase of 18.1% year over year. Additionally, Workday, Inc. (NASDAQ:WDAY) reported earnings per share of $1.74, beating expectations of $1.58. The company has beaten EPS expectations in each of the past four quarters.
Workday, Inc. (NASDAQ:WDAY) has received a Moderate Buy rating based on 31 analyst recommendations over the past three months. The average target price for the stock over the next 12 months is $288.42, which could suggest an upside of 29.52% from the current price level. Analysts have also projected a high of $352 and a low of $240.
This is what Clearbridge Investments In its Q1 2024 investor letter, the company said the following about Workday, Inc. (NASDAQ:WDAY):
“Prior to its acquisition by Cisco Systems, the company also sold its remaining stake in data monitoring software maker Splunk. Part of the proceeds were reallocated to the enterprise resource planning and finance software maker. Workday, Inc. (NASDAQ:WDAY) as we believe the company’s offerings are well-positioned for continued strong subscription growth and further upside as it scales new investment initiatives.”
Workday, Inc. (NASDAQ:WDAY) was held by 83 hedge funds at the end of the first quarter of 2024.
Overall WDAY No.8 Check out our list of the best cloud computing stocks. The 10 best cloud computing stocks to buy now To see other cloud computing stocks hedge funds are watching, click here. While we see WDAY’s potential as an investment, we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you’re looking for AI stocks that have better prospects than WDAY and are trading at less than five times earnings, check out our report. Cheapest AI Stocks.
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Disclosures: None. This article originally appeared on Insider Monkey.