3/18/2023 0 Comments Cloud backblaze nasdaq 100m ipo![]() That’s not to say the cloud can’t be a catalyst for BABA stock. 10, while AWS is a profit center for Amazon, this company’s cloud business is currently a drag. Yet, comparing their respective cloud businesses isn’t exactly apples-to-apples. Just like its stateside equivalent, BABA stock is up significantly since March’s coronavirus crash. But, just like Amazon here in America, what’s been a headwind for most (the pandemic) has been a tailwind for this e-commerce and cloud powerhouse. When the coronavirus first hit China, it looked like tough times ahead for Alibaba. With the underlying factors still in its favor, keep Amazon on your radar. That being said, an additional selloff may mean a solid long-term entry point is just around the corner. Yet, with shares trading for 70.7 times fiscal 2021 (ending Dec 2021) earnings, a contraction to 50x FY21 could mean continued downside from here. ![]() Yes, with its growth rate ahead of FAANG peers like Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) and Facebook (NASDAQ: FB), there will still be a premium. However, that may not make the stock immune to multiple contraction. Sure, with the company’s earnings projected to grow nearly 39% between this year and the next, a premium multiple is warranted. Amazon stock changes hands at a forward price-to-earnings ratio of 98x. But, valuation today may have gotten ahead of itself. Yet, with multiple tailwinds in motion, can success continue for the e-commerce and cloud powerhouse?Ĭertainly. Shares are up 68.6% year-to-date, and more than 90% off their March pandemic selloff lows. With this in mind, it’s no surprise AMZN stock has performed so well this year. But, besides boosting the company’s most well-known business, the pandemic has boosted its Amazon Web Services (AWS) unit as well. When you think “pandemic tailwinds” and Amazon, the first thing that comes to mind is probably e-commerce. Let’s take a closer look at what makes each of these strong stocks to buy now. In a field of winners, these five cloud stocks are some of the best opportunities out there: So, what’s the play here? Despite concerns about valuation, there’s still opportunity to dive into these names. All the names listed here trade at premium valuations, and could see more contraction as investors take profit. On the other hand, these factors could be already factored into cloud stocks. That means a strong environment for the cloud industry to thrive, via the “stay at home economy.” But, that’s not all! As I wrote back in the midst of the lockdowns, there’s ample reason why remote work trends, which bode well for the cloud space, are here to stay, even after the pandemic. On one hand, until there’s a vaccine, chances are today’s “new normal” will continue. But, with the recent selloff in big tech names, is the party over? With the novel coronavirus pandemic being more of a tailwind than a headwind, names in this space have dominated the market as of late. It’s safe to say 2020 has been a banner year for cloud stocks. ![]()
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