The Next Salesforce? 3 Cloud Computing Stocks That Investors Shouldn’t Ignore

Noah Bolton

February 12, 2024 4 min read

Cloud computing is a burgeoning industry that is only projected to keep growing fairly rapidly due to the data optimization within large businesses, the greater adoption of hybrid working models, and the growing use of omni-cloud systems. This led us to create this list of the top cloud computing stocks.

Many new and innovative companies are helping to grow the cloud computing industry alongside Salesforce (NYSE:CRM), for example, which is one of the most prominent players in the market.

Below are a few cloud computing companies that are perfect for investors looking for exposure to the industry without buying shares in Salesforce or other very large cloud computing companies.

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Top Cloud Computing Stocks: Nutanix (NTNX)

An image of a blue and green "Nutanix" logo on the front of a tan building, a row of windows below the sign, and the blue sky in the background.

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Nutanix Inc (NASDAQ:NTNX) offers a cloud software platform that simplifies processes like running apps and data storage through hyperconverged infrastructure (HCI).

Over the past six months, Nutanix’s share price has been climbing, which began in early September when it released earnings for the fourth quarter of fiscal year 2023, in which it beat expectations on earnings per share and total revenue. NTNX’s board also approved a stock buyback program for $350 million in share repurchases.

In mid-September, it was announced that Micron Technology (NASDAQ:MU) selected Nutanix to construct a cloud infrastructure platform that would be given global rollout among Micron’s facilities.

On November 29, Nutanix reported earnings for the first quarter of the fiscal year 2024, stating that its total revenue grew by 18% and its net loss shrank by 84%. Within the same time period, its free cash flow nearly doubled.

Nutanix share price has nearly doubled in the last six months. With the recent upgrade for Nutanix by the investment firm William Blair the previous month citing a “tectonic shift” within the software industry. Nutanix is a great company that investors should pay greater attention to moving forward.

Liveramp Holdings (RAMP)

illustration the LiveRamp Holdings logo seen displayed on a smartphone

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Liveramp Holdings Inc (NYSE:RAMP) operates a data collaboration platform that provides analytical and identity solutions for multiple industries, including retail, automotive, healthcare, and finance.

On February 8, Liveramp announced its earnings report for the third quarter of 2023, which stated that total revenue increased by 10% and subscriber revenue grew by 5% compared to the year before. Furthermore, in Q3 2022, Liveramp reported a net loss of $30 million; for Q3 2023, it was a net income of approximately $14 million. Among other news provided by Liveramp within its most recent press release, it was also announced that on Jan. 31, 2024, it acquired Habu. This data-cleaning provider will enable Liveramp to expand its data collaboration endeavors.

Over these six months, Liveramp’s share price has risen by 43%, positive earnings reports, especially its Q2 2023 report, which sent the stock soaring by 20% following its release, and the change of multiple leadership positions within Liveramp such as the appointment of Lauren Dillard, as its new Chief Financial Officer.

Liveramp is a company with a solid financial position at the moment that is experiencing notable positive shifts with the company. It may continue bringing more investors into this great option for exposure to the cloud computing industry. Easily, this is one of the top cloud computing stocks.

Workday Inc (WDAY)

Workday Layoffs. A close-up view of a Workday (WDAY Stock) sign in Pleasanton, California.

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Workday Inc (NASDAQ:WDAY). It is a cloud-based platform that provides business management tools such as accounts payable, contract management, employee recruitment, and analytics services.

On November 28, it reported third-quarter earnings for fiscal year 2024, stating that total revenue increased by 17% and subscription revenue improved by 18% compared to the previous year. For Q3 FY 2023, there was a net loss of approximately $75 million; for Q3 FY2024, it reported net income of $114 million.

Within the last year, Workday’s share price has increased by 60%, partly due to the recent earnings report that sent the stock higher by more than 10%. Moreover, the new appointment of Carl Eschenbach as Workday’s Chief Executive Officer.

Workday has recently experienced positive press releases and offers investors a decent buying opportunity in the future. It is another strong company similar to Salesforce, helping shape the cloud computing industry. If you are seeking out the top cloud computing stocks, start here.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.