Cloud Investment Predictions for 2014
All projections suggest that cloud computing spending will explode within the next couple of years. Prudent capitalists see cloud computing stocks as a strong buy because of the rapid expansion of the market. Given all of the options available to investors, you are probably wondering which investments you can trust to produce consistent results over the long term. This report is not meant to be used as implicit investment advice. Our breakdown will point out the logical possibilities of the companies discussed within.
When it comes to stability and general upside, IBM is a good candidate for being the first cloud company you should secure inside your 2014 portfolio. When you compare today’s stock quote with any quote from the summer of 2010, you will see that the IBM quote was actually higher a few years ago as opposed to the quote today. Consider a few things before you make blind assumptions about IBM being a sinking ship. IBM has made multiple billion dollar acquisitions to beef up its cloud computing platform. Experts are down on IBM’s physical hardware sales numbers. Looking at only these numbers is short sighted. The future of IBM will be heavily involving the cloud. If IBM can successfully reinvent itself as the de-facto private cloud solution for the world’s largest international businesses and governments, the stock price could rise significantly. Some experts say that the stock price has been suppressed because IBM has spent so much cash in acquisitions over the past few years.
Another prediction for 2014 is the symbol SKYY. This is the ticker symbol for the Cloud Computing ETF. The official name for this investment is the First Trust ISE Cloud Computing Index Fund (SKYY). When you look at some of the companies that make up this ETF, you’ll understand why this stock pick is a prediction we are comfortable making.
Top 10 Holdings (as of 12/24/2013) Source: FTPortfolios
| Holding |
Percent |
| Red Hat, Inc. |
3.68% |
| Oracle Corporation |
3.46% |
| F5 Networks, Inc. |
3.38% |
| Rackspace Hosting, Inc. |
3.38% |
| Facebook Inc. (Class A) |
3.34% |
| Teradata Corporation |
3.33% |
| Aruba Networks, Inc. |
3.32% |
| Cisco Systems, Inc. |
3.30% |
| EMC Corporation |
3.30% |
| Salesforce.com, Inc. |
3.30%
|
Some experts suggest that ETFs help you invest smarter because of the diversification within a certain industry. With these two picks, we are sure that as the cloud market goes, so will these two cloud predictions for 2014.
