5 Best Cloud Computing Stocks Heading into 2023

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is a leader in the cloud computing industry. The company’s cloud platform, Amazon Web Services (AWS), is the largest provider of cloud computing services, offering cloud infrastructure, storage, databases, analytics, and more. AWS is used by millions of customers, including consumers, large enterprises, and startups. The cloud business of Amazon.com, Inc. (NASDAQ:AMZN) is one of the key drivers of the company’s success and has become the backbone of many businesses, providing the infrastructure and tools needed to build, deploy, and scale applications. Amazon.com, Inc. (NASDAQ:AMZN) is well-positioned to capitalize on the secular growth trends of the global cloud computing industry.

On November 22, Piper Sandler analyst Thomas Champion updated his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $119 from $125 and maintained an Overweight rating on the shares.

At the end of Q3 2022, Amazon.com, Inc. (NASDAQ:AMZN) was a part of 269 investors’ portfolios that held stakes worth $34.6 billion in the company. This is compared to 252 hedge funds in the previous quarter with stakes worth $30 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top investor in the company and has a position worth $5.63 billion.

Here is what Alger Capital had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”

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