12 Best Cloud Computing Stocks to Buy According to Analysts

2) Domo, Inc. (NASDAQ:DOMO)

Number of Hedge Fund Holders: 15

Average Upside Potential: 39.7%

Domo, Inc. (NASDAQ:DOMO)’s cloud-based platform enables businesses in integrating, visualizing, and analyzing data. The company has been pursuing several strategic initiatives to strengthen its market position and drive growth. For example, its emphasis has been on transition to a consumption-based revenue model. To be precise, this means garnering revenue on the basis of actual usage of its platform, and not via fixed subscription fees.

This shift demonstrated healthy results and continues to contribute to Domo, Inc. (NASDAQ:DOMO)’s Annual Recurring Revenue (ARR). In Q3 2025, 100% of the company’s new logo deals were structured as consumption contracts, which now represent 55% of its ARR. By year-end, the company expects this to reach over 60%. The flexibility has made Domo, Inc. (NASDAQ:DOMO)’s services more accessible to a broader range of organizations. The company has been forming partnerships with cloud data warehouse providers like Snowflake and Databricks, which should help it improve lead flow and expand market reach.

By integrating with well-established cloud data warehouses, Domo, Inc. (NASDAQ:DOMO) can tap into a larger customer base, potentially fueling user adoption and revenue growth. Such alliances should help boost lead flow, potentially reducing customer acquisition costs and improving sales efficiency. Domo, Inc. (NASDAQ:DOMO) has also been investing in innovation, mainly in agentic AI capabilities, to enhance product offerings and sustain its competitiveness in the ever-evolving business intelligence market.