We have identified the best cloud computing stocks to buy under $10 that offer strong growth potential.
Cloud computing refers to delivering computing services—such as servers, storage, databases, networking, software, and analytics—over the Internet (the “cloud”). It means businesses and individuals can access these resources on demand instead of owning and maintaining physical servers and infrastructure, paying only for what they use. This article looks at a broader definition of cloud computing, not just cloud infrastructure companies. These include companies delivering products via the cloud, including the “as-a-service” model, such as software-as-a-service (SaaS), Infrastructure-as-a-service (IaaS), Platform-as-a-service (PaaS), cloud-native applications, or platforms and services running on the cloud.
The cloud computing industry has grown impressively over the years because of its cost-effectiveness, its ability to provide unlimited scalability, and the increased speed of digital transformation. Simply put, digital transformation and adopting new technologies have become crucial to survival and competitiveness in the current market environment, which leads to higher demand for cloud computing services. Even smaller firms can now afford to adopt new technologies with the help of cloud services. This allows them to become agile and well-equipped to compete and adapt to changing market dynamics.
However, this technology still has a long growth trajectory ahead of it, as highlighted by Gartner in its latest report on this topic. In this report, Gartner had projected that 90% of organisations will adopt hybrid cloud by 2027. The research firm also forecasted that worldwide end-user spending on public cloud services will reach around $723 billion in 2025 from $596 billion in 2024. Of the total, IaaS and PaaS segments are expected to grow the fastest, with an increase of 25% and 21.6%, respectively. While these two segments are growing faster, SaaS is expected to remain the largest segment, contributing around 41% of the total spending.
On CNBC’s Closing Bell Overtime program some months ago, Goldman Sachs’s managing director Eric Sheridan discussed AI and cloud computing, among other topics. He noted that the cloud computing sector remains robust and is further strengthened by the increasing deployment of AI technologies. Additionally, businesses are increasingly looking to integrate AI into their workflow to improve productivity and efficiency. In addition, he said that the industry is still looking for that “killer application” for AI, which essentially means a use case that could have a sizeable transformative effect on industries or lives using AI. Adding to his views, Eric also highlighted that while AI’s benefits are visible in the short term, long-term impacts and benefits are yet to become visible. Overall, this discussion indicated robust growth in cloud computing in the coming years.
With these insights, let’s explore our selection of the 10 best cloud computing stocks to buy under $10.
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
Our Methodology
To identify the best cloud computing stocks to buy under $10, we first compiled a list of cloud computing stocks using screeners, ETFs and financial media reports. We then screened for stocks trading below $10, with a market capitalisation of at least $300 million, and a potential upside greater than 10%. We identified the top 10 stocks with the highest hedge fund ownership from this refined list by leveraging data from Insider Monkey’s Q4 2024 hedge fund database. Finally, we ranked these stocks in ascending order based on the number of hedge funds holding positions in them.
Note: All pricing data is as of market close on March 28.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Cloud Computing Stocks to Buy Under $10
10. PubMatic Inc. (NASDAQ:PUBM)
Current Share Price: $9.28
Number of Hedge Fund Holders: 17
PubMatic Inc. (NASDAQ:PUBM) provides a technology platform that digital content publishers and app developers use to maximise advertising revenue. The company offers a cloud-based infrastructure customised for real-time programmatic advertising. It enables publishers to automate and optimise the sale of digital ad inventory across various formats, such as display, video, mobile, and connected TV (CTV).
PubMatic is well-positioned to benefit from the rapid growth of digital media, the need for specialised infrastructure to manage increasing complexity in the digital advertising market, and the continued rise in online consumer engagement. Its platform differentiates using data, artificial intelligence, and machine learning to boost ad yield and improve client monetisation results.
Following the Q4 2024 results, PubMatic’s co-founder and CEO, Rajeev Goel, emphasised the company’s strong fundamentals, noting:
“Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell-side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand-safe, curated inventory in the open internet.”
Despite slightly softer Q4 results and Q1 guidance, Evercore ISI analyst Robert Coolbrith maintained a Buy rating on PubMatic Inc. (NASDAQ:PUBM) with a $16 price target.
9. Lightspeed Commerce Inc. (NYSE:LSPD)
Current Share Price: $9.09
Number of Hedge Fund Holders: 18
Lightspeed Commerce Inc. (NYSE:LSPD) is a Canada-based provider of cloud-based e-commerce and point-of-sale (POS) solutions for small and medium-sized businesses globally. The company offers an integrated platform enabling retailers, restaurants, and hospitality businesses to manage operations, process payments, engage customers, and drive online and offline revenue.
Over the last three years (FY 2022-25), Lightspeed Commerce Inc. (NYSE:LSPD) grew revenue at a solid compounded annual growth rate (CAGR) of 30%. To accelerate growth in the coming years, the company focuses on complex, more significant, higher Gross Transaction Volume (GTV) customers, product innovation and footprint expansion. The company has a considerable growth potential with its North American (NoAM) retail market addressable market opportunity standing at a massive $74 billion over the coming years. Not this large, but the EMEA hospitality opportunity also stands at a healthy $5 billion.
With growth momentum in place, the company gave healthy guidance at its investor day on March 26. It expects to grow customer locations (billing merchant) in the NoAM and EMEA businesses at a CAGR of 10%-15% between 2025 and 2028. In the same period, gross profit is expected to grow at a CAGR of 20%-25%. For the overall business, gross profit is expected to reach $700 million by 2028, implying a growth of 15%-18%.
Before the investor day, an RBC Capital analyst had reiterated an Outperform rating on the shares. However, he lowered his price target to $15 from $20 after the company reduced its FY 2025 revenue growth guidance.
8. Sprinklr Inc. (NYSE:CXM)
Current Share Price: $8.43
Number of Hedge Fund Holders: 25
Sprinklr Inc. (NYSE:CXM) provides customer experience management (CXM) solutions using an AI-powered unified-CXM platform for businesses which enables them to handle customer interactions across various channels, including social media, messaging, and email. The platform integrates data analytics, artificial intelligence, and machine learning to enhance customer engagement, streamline marketing efforts, and improve overall brand experience.
Sprinklr Inc. (NYSE:CXM) ended Q4 with $484 million in cash and no debt. FY 2026 is expected to be a transition year as the company focuses on cost optimisation, refining its go-to-market approach, and enhancing product innovation. Management is aiming for sustainable, efficient growth and improving profitability, with progress towards the software industry’s Rule of 40 metric. A recent 15% reduction in headcount is expected to support margin improvement.
In FY 2025 (FY ends in January), Sprinklr delivered steady results, with revenue rising 9% year-over-year to $796.4 million, driven by $718 million in subscription revenue (+7% YoY). However, revenue growth is expected to moderate to over 3% in FY 2026, reaching $823 million. Despite this, EPS is projected to improve by 10% to $0.39, rebounding after a decline in FY 2025.
The company is well-poised to benefit from the rising demand for smooth digital customer experiences. However, its financial performance has been below expectations in recent quarters, and the company is working on an improvement plan. Thus, the market remains on the sidelines for visible signs of improvement. However, on March 13, Patrick Walravens from JMP Securities reiterated a Buy rating on Sprinklr with a price target of $17, which essentially implies that the share price will double from here.
7. Mitek Systems Inc. (NASDAQ:MITK)
Current Share Price: $8.50
Number of Hedge Fund Holders: 26
Mitek Systems Inc. (NASDAQ:MITK) provides a cloud-based software platform and services for digital identity verification, mobile check deposits, fraud prevention and cybersecurity solutions. The company offers AI-powered technology that enables banks, financial services firms, and enterprises to verify user identities and authenticate transactions securely.
In a report dated February 11, H.C. Wainwright analyst Scott Buck maintained a Buy rating on Mitek Systems (MITK) with a $13 price target, citing growing demand for identity protection and fraud prevention solutions. The analyst noted that even though there were challenges in areas like mobile deposit reorders, the company’s Q1 FY25 revenue came in slightly above expectations. The stronger results show company’s underlying strengths and its potential for growth particularly in its fraud prevention and identity verification segments.
Moreover, the company reaffirmed its FY25 revenue guidance and narrowed its adjusted EBITDA margin outlook, which the analyst viewed positively. The analyst expects FY26 to bring faster revenue growth and stronger profitability as Mitek continues to streamline its business.
The consensus opinion on the stock is largely positive. The 1-year median price target of $13 indicates a 53% upside potential.
6. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS)
Current Share Price: $8.92
Number of Hedge Fund Holders: 26
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) offers a software-as-a-service (SaaS) platform for the property and casualty (P&C) insurance and automotive industries. The platform connects insurers, repair shops, parts suppliers, and customers to simplify claims processing, repairs, and customer service workflows.
In its latest results, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) reported FY 2024 revenue of $944.8 million, a 9% year-over-year increase. Adjusted EBITDA rose 12% to $397.4 million, implying a 42% margin. For FY 2025, the company has guided revenue to range between $1.06 billion and $1.07 billion, implying over 12% year-over-year growth at the midpoint. The reported EBITDA margin is projected to be about 200 basis points lower due to the integration of EvolutionIQ, which is currently operating at an EBITDA loss. However, the adjusted EBITDA margin is still expected to reach 43%.
In January 2025, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) completed the acquisition of EvolutionIQ, which it had announced in December 2024 for $730 million. This acquisition is expected to support its expansion into the disability and workers’ compensation markets and underpin its AI and casualty solutions. Management notes that the insurance sector is still in the early phases of digital transformation and thus presents strong growth opportunities in the coming years.
5. BigCommerce Holdings Inc. (NASDAQ:BIGC)
Current Share Price: $5.87
Number of Hedge Fund Holders: 27
BigCommerce Holdings Inc. (NASDAQ:BIGC) operates a leading open Software-as-a-Service (SaaS) platform for e-commerce. Its cloud-based platform enables merchants to build, manage, and scale online stores across multiple sales channels, including branded websites, marketplaces, social networks, and in-person point-of-sale systems.
The global business-to-business (B2B) e-commerce market is expected to grow substantially over the next several years. According to the company, 35% of B2B businesses are not selling online today, leaving a large addressable market. BigCommerce should be able to grow competitively as it differentiates itself through its highly customisable, API-driven architecture and its focus on serving both B2C and B2B merchants. Thus, the company benefits from the growing adoption of digital commerce globally.
In a note on March 12, Needham analyst Scott Berg maintained a Buy rating on BigCommerce Holdings Inc. (NASDAQ:BIGC) with a price target of $10. According to the analyst, the company is introducing a new payment solution, refining its product integration, and restructuring its go-to-market leadership to enhance B2B capabilities and cross-selling potential. All such measures are encouraging as they are aimed at improving brand awareness and setting up a clearer growth path, particularly in the company’s SMB segment.
That said, the analyst considers the current fiscal year a transition period, with stronger growth expected to materialise in the following year. He also points out that the payment solution adds flexibility to BigCommerce’s intermediate-term model, potentially positioning the company for accelerated growth by FY26.
4. Semrush Holdings Inc. (NYSE:SEMR)
Current Share Price: $9.57
Number of Hedge Fund Holders: 27
Semrush Holdings Inc. (NYSE:SEMR) offers a digital marketing software platform that helps businesses enhance their online presence (services commonly known as SEO (Search Engine Optimization)). The platform enables companies worldwide to identify and engage with the target audience through the right channels.
The company reported Q4 2024 results which showed robust growth, but its FY 2025 guidance came below consensus. Despite the cautious outlook, street sentiment remains positive, with the current 1-year median price target at $18, implying an 88% upside potential.
Supporting this view, Needham analyst Scott Berg reiterated a Buy rating in late February, citing strong momentum in enterprise SEO and solid execution, particularly in December. There was recently a management rejig, co-founder Oleg Shchegolev moved to the CTO role, and Bill Wagner stepped in as CEO. The analyst highlighted this leadership transition as a constructive change. Semrush Holdings Inc.’s (NYSE:SEMR) continued expansion in high-value enterprise customers and new product launches are expected to strengthen its market position. Despite softer revenue guidance, the analyst viewed the market’s reaction as overdone and maintained a favourable stance.
3. Olo Inc. (NYSE:OLO)
Current Share Price: $6.15
Number of Hedge Fund Holders: 30
Olo Inc. (NYSE:OLO) provides an enterprise-grade, open SaaS platform to help restaurants with online ordering and delivery. Its cloud-based platform allows restaurants to handle orders, manage deliveries, and improve how they connect with customers. The software integrates with a range of restaurant technology solutions like point-of-sale (POS) systems, delivery service providers, and payment processors. Its software makes operations more efficient for restaurant businesses. The company serves various restaurant chains, including Shake Shack and Wingstop.
Olo’s platform is key in helping restaurants update their operations, handle orders more efficiently, and improve the customer experience as more consumers turn to digital platforms and off-premise dining. The company is well-positioned to capitalise on a vast addressable market, fuelled by the restaurant industry’s shift toward digital operations and the rising need for seamless ordering and payment systems.
The company continued its innovation momentum with 13 new platform enhancements and a higher ARPU, driving Q4 revenue up 21% year-over-year to $76.1 million. It reported strong growth metrics, including $29 billion in gross merchandise volume and a rise in gross payment volume to $2.8 billion from $1 billion in 2023. For 2025, the company expects revenue between $333-$336 million and adjusted operating income of $45.5-$47 million. The company is also likely to witness better operating leverage, which should partly offset the impact on gross margins due to revenue mix shifts.
2. Blend Labs Inc. (NYSE:BLND)
Current Share Price: $3.56
Number of Hedge Fund Holders: 33
Blend Labs Inc. (NYSE:BLND) provides a cloud-based platform for banks, credit unions, and lenders which makes lending easier for them. Its software helps simplify the process for mortgages, home equity, auto loans, and personal loans, and enables financial institutions to provide a smooth and digital experience for borrowers.
In Q4 2024, Blend Labs’ total revenue increased 15% year-over-year to $41.4 million, primarily driven by the Consumer Banking Suite business, where revenue rose 48% YoY. However, its Mortgage Suite business saw a slower revenue growth of 6%. That said, the company has seen its profitability improve sharply, with adjusted net profit for the quarter coming in at $5.2 million, versus an adjusted loss of $13.1 million in the prior year period.
For the longer term, the company expects its Consumer Banking Suite Revenue to grow at a CAGR of 35%-40% from 2023 to 2026, which is impressive. The company also reported some important deal wins in the quarter, including multi-year mortgage and home equity deals with a U.S. bank, which ranks in the top 10 banks by asset size. They also signed an agreement with PHH Mortgage, one of the nation’s largest home mortgage servicers. The momentum in customer base expansion is well driven by the company’s leverage of data integration and automation to drive efficiency, compliance, and improved customer satisfaction.
1. Alight Inc. (NYSE:ALIT)
Current Share Price: $5.92
Number of Hedge Fund Holders: 42
On the top of our list of 10 Best Cloud Computing Stocks Under $10, we have Alight Inc. (NYSE:ALIT), which provides cloud-based human capital technology and solutions. The company specialises in delivering cloud-based services that help organisations manage their employee benefits, payroll, and HR processes efficiently. The company’s platform integrates data analytics and artificial intelligence to enhance decision-making and improve employee engagement.
On March 20, 2025, Alight Inc. (NYSE:ALIT) hosted its investor day and unveiled its mid-term financial targets and strategy for long-term growth. Compared to its 2024 revenue of $2.4 billion, the company estimates its existing client opportunity at $9 billion. However, its long-term total addressable market (TAM) is projected at a substantial $50 billion.
With that opportunity, Alight aims for a total annual organic revenue growth of 4-6% and an adjusted EBITDA margin of around 30% by 2027. Additionally, it targets a cumulative free cash flow of around $1 billion between 2025 and 2027, implying double-digit annual growth.
Needham analyst Kyle Peterson reaffirmed a Buy rating on Alight Inc. (NYSE:ALIT) with a $9 price target following the event. He remained optimistic as the company unveiled updated medium-term financial targets that met market expectations while maintaining an ambitious outlook to appeal to investors. The analyst believes Alight’s discounted valuation further strengthens the positive outlook.
While we acknowledge the potential of ALIT to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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