We recently compiled a list of the 12 Best Cloud Computing Stocks to Buy According to Analysts. In this article, we are going to take a look at where Rumble Inc. (NASDAQ:RUM) stands against the other cloud computing stocks.
Cloud computing enables companies to store their infrastructures remotely using the Internet, ultimately reducing costs and creating value. As per Gartner, worldwide end-user spending on public cloud services is expected to reach $723.4 billion in 2025, reflecting a rise from $595.7 billion in 2024. The use of Al technologies in IT and business operations continues to accelerate the role of cloud computing in helping operations and outcomes. The cloud use cases have been expanding with an increased focus on distributed, hybrid, cloud-native, and multi-cloud environments, aided by a cross-cloud framework, which should make the public cloud services market achieve a growth rate of 21.5% in 2025.
Gartner believes that 90% of organizations will adopt a hybrid cloud approach through 2027. Resultantly, all segments of the cloud market should see a double-digit growth rate in 2025 demonstrating how I&O (Infrastructure and Operations) leaders remain focused on effectively integrating I&O into their GenAl strategies and laying the groundwork for running Al and GenAl infrastructure at the edge.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Key Trends to Watch Out in 2025
Moving forward, the concept of cloud computing is expected to change because of technological enhancements and dynamic business requirements. As per Nasscom Community, quantum computing integration, AI-driven cloud services and multi-cloud, and interoperability are some of the future trends in cloud computing. The emerging field of quantum computing focuses on changing how data processing is done because it can handle even the most complicated computations that some other conventional systems cannot solve. Over the next 5 years, more cloud services are expected to offer its clients quantum computing capabilities, which should in turn help in cryptography, drug development, material science, and optimization.
AI and ML are some of the leading technologies behind innovation in the cloud. Nasscom Community believes that pervasive AI is expected to be in each layer of the cloud system, right from the server level to the customer service level by 2025. Moving forward, AI algorithms should help in predictive analysis and, therefore, prevent problems that can arise with infrastructure, control workload, and reduce automation of tedious tasks.
Future developments in the cloud computing field are expected to enhance the multi-cloud strategies involving using more than one cloud service provider between the business and the cloud altogether. Notably, distributing workloads among several cloud providers would help enterprises maximize cost and performance. The businesses have been dividing their workload across multiple cloud service providers in a bid to control data and resources and use the strength of each cloud service provider.
Our Methodology
To list the 12 Best Cloud Computing Stocks to Buy According to Analysts, we conducted extensive research and sifted through several online rankings. After getting the initial list of 18 stocks, we chose the ones that were popular among hedge funds and that analysts saw the most upside to. Next, the stocks were arranged in ascending order of their average upside potential, as of 10th January. We also mentioned the hedge fund sentiment around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A large flat-screen TV streaming video from a video hosting platform.
Rumble Inc. (NASDAQ:RUM)
Number of Hedge Fund Holders: 6
Average Upside Potential: 18.6%
Rumble Inc. (NASDAQ:RUM) operates video-sharing platforms in the US, Canada, and internationally. Rumble Cloud is a cloud infrastructure offering solutions like virtual machines, and virtual private cloud services, among others. This infrastructure can be utilized by companies for hosting applications, running workloads, and building scalable cloud-native solutions. Rumble Inc. (NASDAQ:RUM)’s stock saw an increase of ~34.6% in just a month, primarily due to a $775 million investment from Tether.
Apart from providing Rumble Inc. (NASDAQ:RUM) with significant capital to support its growth and strategic initiatives, the investment also enhanced investor confidence in its future growth prospects. The company’s partnership with Tether can open avenues for collaborations in advertising, cloud services, and cryptocurrency payment solutions. This can further fuel Rumble Inc. (NASDAQ:RUM)’s market position.
Part of the funds is expected to be earmarked to scale Rumble Inc. (NASDAQ:RUM)’s infrastructure, which can include enhancing Rumble Cloud’s capabilities. This will involve the upgradation of data centers, adding more compute and storage resources, and making sure that the platform is suitable to handle increased demand as users expand their cloud services usage. The partnership with Tether can result in integration with cryptocurrency or blockchain services within Rumble Cloud. This can include providing cloud services that are optimized for cryptocurrency applications or decentralized (DeFi) projects, further enhancing Rumble Cloud’s use cases.
Overall RUM ranks 6th on our list of the best cloud computing stocks to buy according to analysts. While we acknowledge the potential of RUM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than RUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
