Businesses have transformed the way they are run as a result of the transition to cloud computing, which is now the key to achieving flexibility and scalability in IT service delivery. This kind of transformation has been instrumental in the emergence of the Internet technology service sector especially in areas related to communication, documents sharing and working from home services. If businesses are already adopting these innovations, several cloud stocks have come out as frontrunners in this field. Zoom Communications (ZM), DocuSign (DOCU) and Upwork (UPWK) are the leaders of change in the future workplace.
As work from home and other flexible working models become more widespread, cloud computing is the foundation of today’s business. The key trends that have been identified in this industry are growth of hybrid cloud, AI services, and enhanced collaboration tools. All these advancements are as a result of the growing need for flexible and affordable solutions that can help organizations to change and grow quickly.
The cloud computing market around the world is projected to increase at a CAGR of 21.2% in the period between 2024 and 2030. As a result, the global IT services market, which was $1.4 trillion in 2023, is expected to be $2.9 trillion in 2034 with a CAGR of 7.1%. Such growth reflects the rising demand for cloud solutions in different spheres of business.
Zoom Communications (ZM)
Zoom Communications is one of the leading cloud stocks that are available to investors in the market. It has a full suite of unified communications solutions, which include Zoom Meetings, Zoom Phone, Zoom Rooms and Zoom Webinar. These solutions cater for various fields such as healthcare, education, financial, government and retail among others.
Hybrid cloud solution was launched in September 2024 when Zoom partnered with Mitel Networks to provide it. This partnership combines Zoom Workplace with Mitel’s communications solution to deliver increased efficiency and security to address enterprise demands for hybrid unified communications.
Source analysis: The most recent fiscal performance of Zoom speaks for itself. In detail, for the third quarter ending October 31, 2024, ZM recorded YoY growth of 3.6% in its revenue, $1.18 billion. Overall income from operations not on a GAAP basis increased by 2.4%, and the company also reported increased non-GAAP net income as well as non-GAAP EPS. For the financial year ending on 31st January 2025, Zoom has forecasted revenue of $1350.76, up from $1308.69, an increase of 3.2% while Earning per share has been forecasted to be 2.95, up from 2.81, an increase of 5.1%.
The leading cloud stocks is Zoom, which has risen 21.3% over the past year and 15.9% this year to date.
Given that companies are adopting cloud solutions at the speed of light, remote work and collaboration enablers such as Zoom Communications, DocuSign and Upwork remain at the forefront. These cloud stocks are still well-poised for growth in the future because the use of cloud technologies is only going to increase in the future and businesses around the world will continue to require more scalable IT solutions.
Source:: Â stocknews.com
