AMZN, GOOGL, CRM among top 5 cloud stocks to explore in May

Highlights:

• Amazon.com, Inc. (NASDAQ:AMZN) net sales rose 7% YoY in Q1, FY22.
• Alphabet Inc. (NASDAQ:GOOGL) revenue soared 23% YoY in Q1, FY22.
• Salesforce, Inc. (NYSE:CRM) expects its revenue to be between US$32.00 billion and US$32.1 billion in fiscal 2023.

Cloud computing has been one of the fastest-growing sectors in recent years. The trend, which was already growing, has been accelerated due to the Covid-19 pandemic. The shift towards digitalization during the period has helped the companies engaged in cloud computing.

Although the market has witnessed choppy trading in recent months due to various uncertainties, the cloud segment of the companies has seen growth. With the earnings season on track, investors are exploring opportunities in the cloud computing sector, given the sector's growth potential.

Here we explore some of the top cloud computing companies to explore in May.

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Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com, Inc. is one of the leading e-commerce-focused technology companies based in Seattle, Washington. It also provides cloud computing, media streaming, artificial intelligence, and other related services.

The shares of the company traded at US$2460.09 at 2:02 pm ET on May 4, down by 1.01% from their closing price of May 3. Its stock value decreased by 27.08% YTD.

The firm has a market cap of US$1.23 trillion, a P/E ratio of 58.82, and a forward one-year P/E ratio of 95.65. Its EPS is US$41.43.

The 52-week highest and lowest stock prices were US$3,773.08 and US$2,367.50, respectively. Its trading volume was 3,956,668 on May 3.

The company's net sales increased by 7% YoY to US$116.4 billion in Q1, FY22. Its net loss came in at US$3.84 billion, or US$7.56 per diluted share, as compared to US$8.10 billion, or US$15.79 per diluted share in Q1, FY21.

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                                                             Source: Pixabay

Microsoft Corporation (NASDAQ:MSFT)

Microsoft is another leading technology firm that specializes in software, consumer electronics, personal computers, cloud computing, and other related services. It is based in Redmond, Washington.

The stock of the company traded at US$281.18 at 2:07 pm ET on May 4, down by 0.21% from its previous closing price. The MSFT stock fell 15.82% YTD.

The market cap of the company is US$2.11 trillion, the P/E ratio is 29.48, and the forward one-year P/E ratio is 30.23. Its EPS is US$9.58.

The stock saw the highest price of US$349.67 and the lowest price of US$238.07 in the last 52 weeks. Its share volume on May 3 was 25,978,610.

The company's revenue increased by 18% YoY to US$49.4 billion in Q3, FY22. On a GAAP basis, its net income came in at US$16.72 billion, or US$2.22 per diluted share, as compared to US$15.45 billion, or US$2.03 per diluted share in Q3, FY21.

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Alphabet Inc. (NASDAQ:GOOGL)

Alphabet is one of the major conglomerate firms based in Mountain View, California. It offers various internet and technology-related services like search engines, cloud computing, etc., to its clients. Notably, Alphabet is the parent company of Google.

The shares of the company traded at US$2365.91 at 2:12 pm ET on May 4, up 0.82% from their closing price of May 3. Its stock value declined 19.08% YTD.

The firm has a market cap of US$1.56 trillion, a P/E ratio of 21.53, and a forward one-year P/E ratio of 20.84. Its EPS is US$110.56.

The 52-week highest and lowest stock prices were US$3,030.93 and US$2,193.62, respectively. Its trading volume was 1,248,368 on May 3.

The company's revenue surged 23% YoY to US$68.01 billion in Q1, FY22. Its net income came in at US$16.43 billion, or US$24.62 per diluted share, as compared to US$17.93 billion, or US$26.29 per diluted share in the year-ago quarter.

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Salesforce, Inc. (NYSE:CRM)

Salesforce is a cloud-based software firm based in San Francisco, California. It provides customer relationship management (CRM) software and tools to its clients to help them in their sales, customer service, analytics, etc.

The stock of the company traded at US$177.37 at 2:19 pm ET on May 4, down 0.56% from its previous closing price. The CRM stock plunged 30.18% YTD.

The market cap of the company is US$178.27 billion, the P/E ratio is 119.58, and the forward one-year P/E ratio is 84.93. Its EPS is US$1.50.

The stock saw the highest price of US$311.75 and the lowest price of US$167.55 in the last 52 weeks. Its share volume on May 3 was 5,047,686.

The company's revenue increased by 26% YoY to US$7.33 billion in Q4, FY22, while its net loss came in at US$28 million, or US$0.03 per diluted share. For fiscal 2022, the company's revenue surged 25% YoY to US$26.49 billion.

Meanwhile, it now expects its revenue to be between US$32.00 billion and US$32.1 billion in fiscal 2023.

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Adobe Inc. (NASDAQ:ADBE)

Adobe is a software company that provides a wide range of services and products for professionals, marketers, app developers, and other related sectors. It is based in San Jose, California.

The shares of the company traded at US$404.01 at 2:39 pm ET on May 4, down 0.88% from their closing price of May 3. Its stock value decreased by 27.78% YTD.

The firm has a market cap of US$191.72 billion, a P/E ratio of 40.3, and a forward one-year P/E ratio of 36.75. Its EPS is US$10.07.

The 52-week highest and lowest stock prices were US$699.54 and US$394.04, respectively. Its trading volume was 2,196,257 on May 3.

The company's revenue surged 9% YoY to US$4.26 billion in Q1, FY22. Its net income came in at US$1.266 billion, or US$2.66 per diluted share, as compared to US$1.261 billion, or US$2.61 per diluted share in Q1, FY21.

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Bottom line:

Although experts anticipate that the cloud computing sector will maintain steady growth in the coming days, the recent macroeconomic factors have forced investors to keep away from these growth stocks. Meanwhile, the S&P 500 technology sector declined 17.48% YTD after witnessing a strong momentum in the previous year. On the other hand, the tech-savvy Nasdaq Composite dropped 20.52% YTD.

Hence, investors should closely evaluate the companies before spending on the stocks.