No wonder a recent headline in The Motley Fool screamed “3 Top Cloud Computing Stocks to Buy Right Now.”
The Virginia-based investing advice company wrote that one of the biggest beneficiaries of working at home during the COVID-19 pandemic has been cloud computing stocks.
“Some cloud computing specialists are skyrocketing because the positive effects of coronavirus mitigation policies are obvious to any investor,” Motley Fool wrote. “The coronavirus pandemic is driving everyone toward cloud-based services faster than ever.”
The three stock recommendations include IBM, a global leader in artificial intelligence (AI), blockchain technologies and big data.
“The key area of focus is to ensure that IBM leads into two major transformational journeys our clients are on, cloud and AI,” CEO Arvind Krishna told analysts in Big Blue’s first quarter (Q1) earnings call. “I believe that what we are going through today with the shift to remote work, automation, application modernization will accelerate our client shift to hybrid cloud.”
The numbers tell the story. On March 16, Big Blue’s stock closed at $97.77. At the opening Monday (June 22), it was $122.12, a 25 percent increase.
Ali Niknam, founder and CEO of the 8-year-old European digital bank Bunq, told PYMNTS, as reported in the Digital Banks and the Power of the Cloud Tracker, that it’s crucial for financial institutions to build out networks that can handle an increased amount of transactions or swiftly analyze large reams of data, while maintaining simplicity and a “seamless experience” for end users.
“Because we built the whole system up fresh, from the ground up, our entire system is running on the cloud,” Niknam said. “The [greatest] benefit is that it is just so much more scalable ... because we are on the cloud, we always have enough capacity, so our users never have to wait.”
In an interview last spring, Ariff Kassam, chief technology officer of database company NuoDB, spoke with PYMNTS about the importance of data management, noting that every time a company installs a new system or deploys a new database on-premises, it accumulates technical debt. Such debt, he said, is a tax on agility, productivity and adaptability.
“Data management is critical, not just internally between silos, but also as you expand into the cloud,” said Kassam.