Top 5 Cloud Stocks To Buy According To Hedge Funds

What are the best cloud stocks to buy today? In this time of uncertainty characterized by volatile market movements, economic contraction, and spiraling unemployment, finding stocks that would guarantee returns, let alone preservation of capital, seems like a herculean task.

This is the perfect environment to buy cloud stocks which aren’t negatively affected by the present economic predicament. If there is anything we have learnt from the coronavirus induced lockdowns, it is that more than ever, we would need technology to meet our existential needs.

Savvy investors have used hedge funds as a litmus test to gauge the profitability of stocks and to know the trajectory of market sentiment.

Based on hedge funds sentiment, we present 5 top cloud stocks among the 800+ hedge funds tracked by Insider Monkey. If you are hoping to find the most publicly traded cloud stocks such as Amazon(NASDAQ:AMZN) or Microsoft (NASDAQ:MSFT) on this list, you are in for a huge surprise.

5. Anaplan, Inc. (NYSE:PLAN)

Anaplan, Inc. (NYSE: PLAN) has witnessed increased interest from hedge fund managers. The software development company has a market capitalization of $6.093B. Over the past month, the stock has risen by 2.94% but has lagged behind the sector’s gain of 4.01%. Though Anaplan isn’t among the 30 most popular stocks among hedge funds, a total of 51 hedge funds hold long positions in this stock, a change of 30% from one quarter earlier.

4. Twilio Inc. (NYSE: TWLO)

Twilio Inc. (NYSE: TWLO) ranks 4th with 52 bullish hedge fund positions. The company provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The stock has a market capitalization of $36.646bn. Over the past month, the stock has increased by 25.4%, and increased by 156.5% so far this year.

3. Workday Inc (NASDAQ: WDAY)

Workday Inc (NASDAQ: WDAY) ranks third in our list with a total of 55 bullish hedge fund positions. It provides enterprise cloud applications worldwide. Its applications help its customers to manage critical business functions and optimize their financial and human capital resources. The company has a market capitalization of $41.878B. Over the past month, the stock has underperformed by -1.21% but has increased by 9.82% YTD.

2. Coupa Software Incorporated (NASDAQ: COUP)

Coupa Software Incorporated (NASDAQ: COUP) ranks second with a total of 66 bullish hedge funds. It is a cloud-based business spend management platform. Its platform connects organizations with suppliers globally, providing visibility into how companies spend money, thereby enabling them to gain better financial control and achieve savings that drive profitability. The company has a market capitalization of $20.347bn. Over the past month, the stock has increased by 10% while its YTD performance is 95.3%.

1. Netflix, Inc. (NASDAQ: NFLX)

Netflix, Inc. (NASDAQ: NFLX) is by far the most popular cloud stock in our list with a total of 109 hedge funds. Netflix provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. The company has a market capitalization of 214.84B. The stock has increased by 46.8% so far this year.