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 that 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 The Great British Bake Off 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 1 January 2020 up to the time of writing. We go into the first five in more depth below.

Company Ticker Performance year to date
Zoom Video Communications Inc. ZM 635.64%
Fastly Inc. FSLY 339.01%
DocuSign DOCU 185.41%
Amazon AMZN 62.34%
Apple AAPL 45.92%
Salesforce CRM 45.10%
Adobe Inc. ADBE 42.62%
Zendesk Inc. ZEN 29.53%
Microsoft MSFT 27.20%
Slack Technologies Inc. WORK 17.30%

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 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 socialising with loved ones while in lockdown.

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

2. Fastly

Fastly is one of those companies that work behind the scenes of ones that you know. It works on optimising 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). This is one for you 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 the lockdown, people turned to Amazon for their shopping, which led to the stock price increasing during this time.

5. Apple

Here’s another company that probably doesn’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 faff 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)
  • Global X Cloud Computing ETF (CLOU)
  • WisdomTree Cloud Computing Fund (WCLD)
  • Wedbush ETFMG Global Cloud Technology ETF (IVES)

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.

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Your first 50 trades are free with Fineco, until 31/12/2020. T&Cs apply.
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
Capital at risk. 0% commission but other fees may apply.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Open an ISA, Trading Account or SIPP you will get £100 of free trades to buy or sell any investment (new customers only).
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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Compare up to 4 providers

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. Capital is at risk.

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