3 millionaire cloud computing stocks to buy and hold forever

Investors are interested in growth, which is why cloud computing stocks will continue to make sense in the long run. Grand View Research projects that the cloud computing market will grow at an annual rate of 14.1% between 2023 and 2030.

That growth far exceeds the growth of the entire economy and will attract investment capital in droves. In short, investors can reasonably expect that a dollar invested in cloud computing stocks today will be worth much more in the future.

To be fair, the best ever buy-and-hold cloud computing stocks are probably the three biggest tech names. I have included just one below. Let’s explore it and two others that offer strong potential returns in the near future.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT extension) is a clear buy-and-hold stock for investors seeking long-term value and returns.

A lot has happened to the company in recent years, most of which has accelerated what was already strong growth.

The pandemic has given Microsoft a huge boost. It has accelerated tech companies in a way that has been hugely beneficial. The lockdowns have accelerated the evolution of technology at a rate that would not have been possible in the absence of a pandemic. Profits in turn soared and Microsoft exploded.

More recently, AI has once again helped Microsoft move forward. His investment in OpenAI has already paid off. Stock prices have risen in 2023 because of this.

Microsoft is also a cloud computing giant. Microsoft’s intelligent cloud revenue reached $22.1 billion in the second quarter. This represented a 17% year over year increase and more than 40% of overall sales.

Revenue from Azure and other cloud services increased 27% during the period. The general thrust is that Microsoft is a cloud computing stock that is much more than just cloud computing and is very likely to continue to grow even though it is already huge.

Snowflake (SNOW)

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Snowflake (NYSE:TO SNOW) provides a data cloud platform that allows users to access their data cloud consisting of multiple public clouds.

It was not built using legacy big data technology like other clouds. Instead, it was designed for native use within the cloud. Companies simply sign up and access Case Snowflake data with no hardware and very little software.

The snowflake is very large and growing at a phenomenal rate. Revenue grew 48% during the recent quarter year over year to $624 million.

There is no other cloud company of that scale that delivers growth at that rate. This is the hook for Snowflake. It is a growth stock and it comes with the related problems that growth stocks have. Net losses eclipsed $226 million during the first quarter. They are increasing, not decreasing.

In addition, SNOW stock is particularly sensitive to interest rates. Share prices have plummeted in 2022, but the long-term narrative still favors the company given its size and growth. Any reduction in losses will certainly send higher prices as well.

Digital Ocean (DOCN)

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Digital Ocean (NYSE:DOC) is a dormant stock in the cloud computing industry.

It comes nowhere near the attention of the big three cloud service providers. The reason is simple: the big three serve large enterprise customers while Digital Ocean serves their small and medium business counterparts.

Large enterprises account for a larger percentage of overall IT investments. This is not good for Digital Ocean. However, small businesses make up the majority of the world economy.

They also lag behind large companies in terms of digital transformation. That’s where the Digital Ocean opportunity lies. It has a huge opportunity in front of itself. It can sell, sell, sell to SMEs and take them into the digital age.

Many investors believe in DOCN stock for this very reason, which partly explains why it is currently oversold. Investors should wait for prices to fall a bit and pick up stocks that could grow to some breakeven.

At the date of publication, Alex Sirois did not hold (either directly or indirectly) positions in the securities mentioned in this article. The views expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.