Cloud computing is a technology sector that has flourished amid the COVID-19 pandemic. It is now critical for businesses to have cloud infrastructure in today’s fast-changing market environment. As such, this segment of the technology sector is at the cusp of exponential growth and the stocks of cloud service providers are expected to witness major growth. Indeed, Wall Street analysts predict more than 20% upside in Twilio (NYSE:TWLO), DocuSign (NASDAQ:DOCU), Splunk (NASDAQ:SPLK), and Zscaler (NASDAQ:ZS). Read on.Rapid digitization has favored the cloud computing sector greatly. The COVID-19 pandemic and the remote working culture it ushered in have been major driving forces. Resources such as databases, remote servers, and storage centers have replaced expensive on-premises infrastructure. Companies have adopted cloud computing rapidly thanks to its scalability, cost-effectiveness, and efficiency, and the migration from expensive on-premises IT infrastructure to on-demand services has been a major boon for companies that offer these services.
Analysts believe the demand for cloud infrastructure will continue increasing because the remote working culture is expected to continue even after the pandemic. Interestingly, cloud computing is evolving and now many applications are being built exclusively for the cloud. Gartner (NYSE:IT) predicts that the portion of enterprise IT spending on public cloud computing will expand 18.4% in 2021 to $304.9 billion. Further, cloud computing still has much untapped potential, and investors can capitalize on it by picking fundamentally sound cloud stocks.
Four cloud stocks that Wall Street analysts believe will surge by more than 20% are Twilio Inc. (TWLO), DocuSign, Inc. (DOCU), Splunk Inc . (SPLK), and Zscaler, Inc. (ZS).