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Cloud stocks | Top cloud companies to invest in 2020

Cloud stocks have soared in 2020, here's a list of the top cloud computing companies and how to invest in them.

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Twenty years ago, the cloud was just a fluffy thing in the sky. The only thing stored there was rainwater and maybe the odd daydream.

Nowadays, the cloud is a huge digital infrastructure which companies build applications on. That’s right!

The cloud lets you safely store 183,402 photos of your pet dog, it lets you catch up on Master Chef Canada, or read your emails from the other side of the world.

Cloud computing companies have really taken off. Companies like Microsoft are building applications that exist entirely in the cloud. Meanwhile, the coronavirus pandemic has accelerated the use and growth of some of these companies, with more people working from home than ever before.

The sky’s the limit with these cloud-based opportunities, and the rising valuation of cloud computing companies shows this.

List of best performing cloud stocks in 2020

Below are 10 of the biggest cloud stocks of 2020 with their performance since January 1 2020 up to the time of writing. We go into the first five in more depth below.

CompanyTickerPerformance year to date
Zoom Video Communications Inc.ZM635.64%
Fastly Inc.FSLY339.01%
DocusignDOCU185.41%
AmazonAMZN62.34%
AppleAAPL45.92%
SalesforceCRM45.10%
Adobe Inc.ADBE42.62%
Zendesk Inc.ZEN29.53%
MicrosoftMSFT27.20%
Slack Technologies Inc.WORK17.30%

The top five cloud computing stocks in more depth

Some of the companies here owe some of their success to the coronavirus pandemic, while some saw a hit during this time and have still bounced back.

1. Zoom

If you hadn’t heard of Zoom before the pandemic, you certainly will have now, especially if you were the one tasked with setting your grandparents up on it over the phone. Nevertheless, let’s explain for those who haven’t taken part in several hundred Zoom quizzes in the last six months.

Zoom is a video conferencing platform. In the increase of remote working and distance education during the coronavirus pandemic, there was a huge increase in the use of Zoom and similar products. It was also used for online socializing with loved ones while in lockdown.

As a result, its stock performed really well throughout the first 6 months of 2020.

2. Fastly

Fastly is one of those companies that works behind the scenes of ones that you know. It works on optimizing websites and apps to help make them fast and secure. It works with well known companies such as The New York Times, Pinterest, Boots, Deliveroo and Wayfair, among many (many!) more.

Fastly was in the news in mid-2020, with social media app TikTok one of its largest clients. Fastly faced some issues in the US when President Donald Trump signed an order to ban TikTok in the US. The stock dropped during this period, but Trump then approved a deal that allowed TikTok to remain in the US, seeing its stock recover.

3. Docusign

You’ll have come across Docusign if you’ve recently moved house or signed a new tenancy or work agreement. It’s software that lets you sign contracts or agreements from anywhere in the world on your mobile phone.

Again, COVID-19 accelerated the use of electronic signature platforms like Docusign due to the forced removal of physical paperwork and drop off in face-to-face interactions. On top of all the automation and ease of use, it saves a lot of trees (2.5 million since 2003). One for your green heads out there!

4. Amazon

We’re sure you don’t need us to explain what Amazon is, but for those who haven’t been online before, welcome to the internet. Strange that this is one of the first articles you’ve come across but, anyway.

Amazon is a technology company. It’s best known for its online store where you can buy pretty much anything.

Amazon also offers digital streaming services and cloud storage and owns companies like audiobook retailer, Audible and home automation company, Ring, among others.

With high-street retailers closing during lockdown, people turned for Amazon for their shopping, which led to the stock price increasing during this time.

5. Apple

Here’s another company you probably don’t need explaining. Apple is a multinational technology company that sells electronics including the iPhone, iPad, Mac, Apple Watch, Apple TV and more. As a result, its iShare price has been the fruit of its labour.

Apple saw a crash in its share price during the stock market crash at the end of March 2020, but it has since bounced back.

Investing in Cloud Exchange Traded Funds (ETFs)

There are ETFs that bundle together cloud computing companies into ONE type of investment, allowing you to get more diverse spread of companies, without the trouble of investing in each one. Some of the stocks mentioned above will be included in the holdings of these ETFs.

  • First Trust Cloud Computing ETF (SKYY)
  • Next Generation Internet ETF from Ark Funds (ARKW/NYSE)
  • WisdomTree Cloud Computing ETF (WCLD)

Compare investment platforms

To buy stocks in any of the companies listed above, you’ll need to sign up to an investing platform. Here they are! The ETFs mentioned above will also be listed on some of these platforms.

Name Product Available asset types Stock Fee Option Fee Account Fee ETF Transaction Cost Feature Table description
Wealthsimple Trade
Stocks, ETFs
$0
N/A
$0
Free
Get a $50 bonus when you open a Wealthsimple Trade account and deposit and trade at least $100.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple Trade.
Scotia iTRADE
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
$4.99-$9.99
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
$0
$9.99 ($4.99 if completed 150 trades or more a quarter)
Pay no annual account fees.
Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.
CIBC Investor's Edge
Stocks, Bonds, Options, Mutual Funds, ETFs
$4.95 - $6.95
$4.95 - $6.95 (+$1.25 per contract)
$0 if conditions met, otherwise $100/year
$6.95
$4.95 - $6.95 is applicable for online stock, ETF and option trades only. Pay $4.95 when you qualify as an Active Trader (trade 150+ times per quarter).
An intuitive and easy-to-use platform with access to a variety of tools that help you make smart decisions and trade with confidence.
Interactive Brokers
Stocks, Bonds, Options, ETFs, Currencies, Futures
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
$0
Min. $1.00, Max. 0.5% of trade value
Extensive trading capabilities and global investment tracking.
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
Questrade
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95-$9.95
$9.95 + $1 per contract
$0
Free
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
Qtrade Direct Investing
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$6.95 - $8.75 + $1.25 per contract
$0 if conditions met, otherwise $25/quarter
$0 - $8.75
Trade 100 select ETFs free of charge.
Qtrade Direct Investing offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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