Cloud computing truly has revolutionized American business. The ability to deliver top-level performance anywhere — to a customer of nearly any size — has leveled the playing field for small and medium-sized businesses. And growth is only going to rise going forward.
That would seem to create a huge opportunity in cloud computing stocks. But the problem is that the trend isn’t exactly hidden — or new. Investors already are pricing many cloud plays at exceedingly high multiples to earnings — and in the cases of many companies that remain unprofitable, to sales.
But there are still opportunities to play the cloud computing trends with stocks whose valuations still allow for strong upside going forward. These four stocks all will benefit from cloud computing — and all are priced reasonably enough to satisfy investors looking for attractive entry points.
Top Dividend Stocks To Watch For 2019: Weibo Corporation(WB)
Known as “China’s answer to Twitter,” Weibo (NASDAQ:WB) is a social media company that allows Chinese users to express themselves, connect with others, discover Chinese-language content and use push notifications on their mobile devices.
While its Twitter of China description was pretty accurate in its early days, now it’s much more diversified — it’s more like the Facebook of China at this point.
Weibo now offers online games and mobile apps that have created a very complete social media experience in a young, enthusiastic consumer demographic.
It’s no surprise then that WB has experienced tremendous growth since its launch in 2010, and it shows no signs of slowing down.
Trade war talk has soured the market on WB, but that’s to our advantage. WB has enormous potential growth in China and Asia, without any need to look to the U.S.
Top Dividend Stocks To Watch For 2019: Facebook, Inc.(FB)
At 23.5-times forward earnings, Facebook Inc (NASDAQ:FB) isn’t exactly your traditional “cheap” stock. But I’d argue it is actually one of the cheapest stocks in the market.
Facebook stock got knocked down recently by a really bad PR incident now known as the Cambridge Analytica scandal. A whistleblower blew the lid open on a data leak that happened 3 years ago and may have impacted the 2016 Presidential Election. But amid that awful PR incident — which was arguably the company’s worst PR incident in history — Facebook proceeded to report what was arguably the company’s best earnings report in history.
Revenue growth accelerated. Margin expansion remained robust. User growth remained strong. Engagement trends were healthy.
Those overall strong results are a testament to the company’s business model, the platform’s value, and management’s ability to navigate through turbulent waters.
As such, things are back to normal for Facebook. And “back to normal” implies 30%-plus revenue growth over the next several years alongside healthy margin drivers. That combination should lead to at least 35-40% earnings growth per year.
Facebook stock trades at just 23.5-times forward earnings.
That is dirt cheap for 35-40% earnings growth. Plus, this stock normally trades at 34-timesforward earnings, so today’s 23.5 multiple seems like a big bargain.
All in all, Facebook stock has staged a huge comeback. That comeback is far from being done. A still cheap valuation and only strengthening growth prospects imply a ton more upside for Facebook stock. Consequently, this is also one the best cheap stocks to buy.
Top Dividend Stocks To Watch For 2019: GoPro, Inc.(GPRO)
GoPro (NASDAQ:GPRO) shares are rounding higher and could be ready to break free from a five-month consolidation range.
Watch for a possible test of the 200-day moving average last touched in November — which would be worth a 36%+ gain from here. Shares have been bolstered by an increase in takeover speculation as well.
The company will next report results on August 2 after the close. Analysts are looking for a loss of 21 cents per share on revenues of $270.6 million. When the company last reported on May 3, a loss of 34 cents per share beat estimates by two cents on a 7.4% decline in revenues.