Growth in the cloud sector decelerated in 2023, but cloud computing and its infrastructure remain essential, underpinning both digital economy and artificial intelligence (AI) applications. Here is a curated collection of cloud stocks to watch.
- Amazon’s cloud unit AWS to invest $5bn in cloud infrastructure in Mexico.
- Snowflake has appointed a former Google executive as its new CEO.
- Alibaba Cloud has slashed the prices of more than 100 products by up to 55%, to win AI customers.
Amazon
The Cloud Infrastructure Stock
Amazon’s [AMZN] cloud division Amazon Web Services (AWS) plans to invest over $5bn in cloud infrastructure in Mexico over the next 15 years, in order to fuel innovation and growth in the country. “We welcome AWS’s investment and expansion in Mexico because it is a sign of trust and demonstrates conditions are right to support the nearshoring trend across many sectors of our economy,” commented the country’s Secretary of the Economy, Raquel Buenrostro, in a press release. The Amazon share price is up 93.4% over the past 12 months as of 4 March.
Snowflake
The CEO Change Stock
Snowflake [SNOW] CEO Frank Stootman is retiring and will be replaced by former Alphabet [GOOGL] executive Sridhar Ramaswamy, whose job will be to the lead the cloud software company “into this next phase of growth and deliver on the opportunity ahead in AI and machine learning”. The announcement came as the Montana-based cloud company delivered Q4 2024 earnings and issued weak Q1 2025 guidance, sending its share price tumbling 18.1% on 29 February. Snowflake’s stock is down 38% over the past 12 months.
Alibaba
The Price Cut Stock
Alibaba [BABA] has announced it is slashing cloud prices by up to 55%, in an attempt to win more AI customers. The new prices, which apply to more than 100 public products, are effective as of 29 February. “We aim to become the most open cloud and help our customers to turn AI into productivity,” said Liu Weiguang, President of Public Cloud Business at Alibaba Cloud Intelligence, adding that the price cuts should help unlock the potential of China’s digital market.
Workday
The HR Technology Stock
Workday [WDAY] announced last week that it intends to acquire HiredScore, a leading provider of AI-based matching tools for recruiting, to boost its human resources technology offering. “The combination of our AI technologies that keep humans at the centre, along with a deep understanding of the workforce landscape, will help organisations thrive and move forever forward,” said Workday CEO Carl Eschenbach in a statement. The terms of a potential deal weren’t disclosed. Workday’s share price has climbed 55.1% in the past year.
Twilio
The Operational Review Stock
Twilio [TWLO] is currently carrying out an operational review of its customer data platform Segment following pressure from activist investors. Segment was acquired by Twilio for $3.2bn in 2020, but Anson Funds and Legion Partners have been pushing for it to be broken up or sold. The outcome of the review will be announced sometime in March. The Twilio share price is down 15.7% over the past year.
Another Way to Invest in Cloud Computing
The Global X Cloud Computing ETF
The Global X Cloud Computing ETF [CLOU] holds Amazon, Alibaba, Twilio and Workday as of 1 March. As of 31 January, information technology accounts for 78.3% of the portfolio, while communications services has been allocated 10.6%; consumer discretionary, real estate and healthcare have single-digit weightings. The fund is up 27.4% in the past year through 4 March and up 8% in the past six months.
The WisdomTree Cloud Computing ETF [WCLD] holds Snowflake, Twilio and Workday. As of 1 March, information technology accounts for 86.4% of the portfolio, while financials, industrials, healthcare and communication services all have single-digit weightings. The fund is up 25.2% in the past year and up 10.9% in the past six months.
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