We recently compiled a list of the 10 Best Cloud Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Snowflake Inc (NYSE:SNOW) stands against the other cloud stocks.
Based on a report by MarketsandMarkets, the global cloud industry in 2025 is projected to grow by 15.1% to $1,256.8 billion. While 2024 was marked by high adoption by the BFSI sector, the year ahead should see applications being developed that meet the unique specifications of each industry. North America and Europe should capture the bulk of the market size but APAC is expected to register the fastest growth. The integration of AI with cloud platforms accompanied by new service models is another key development expected to shape this industry.
Cloud ETFs have generated generous returns of 2.74%, 28.54% and 11.00% for 1-month, 6-month and 1-year tenors. One would assume that the underlying stocks would continue to perform well, propelled by strong industrial tailwinds.
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For this article we picked 10 cloud stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc (NYSE:SNOW)
Number of Hedge Fund Investors: 71
Snowflake (NYSE:SNOW) offers data analytics and management software that runs on cloud computing platforms of Google, Microsoft and Amazon. It has been proactively investing in its cloud capabilities and is looking to invest $20 million for training more than 100,000 users on Snowflake AI Data Cloud by 2027. It has also teamed up with Anthropic, a research and security company in the AI domain, to enhance analytics and visualization.
The company registered a 23% y-o-y growth in Q3 earnings but it incurred an operating loss amidst shrinking margins and escalating marketing and R&D expenses. It caters to 10,618 clients with 542 customers generating more than $1 million in revenue. It has shown interest in high-growth markets like ASEAN, LATAM and the Middle East, spending significant amounts in training and developing cloud capabilities. The next fiscal should see SNOW d
Overall SNOW ranks 9th on our list of the best cloud stocks to buy according to hedge funds. While we acknowledge the potential of SNOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SNOW 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
