Time for Cloud ETFs on Earnings Strength & Promising Growth?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2024
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Source: NASDAQ.COM
- Cloud Computing Market Growth: The global cloud computing market is projected to grow from $626.4 billion in 2023 to $1.27 trillion by 2028 at a CAGR of 15.1%, driven by remote work and e-commerce demands.
- Key Players in Cloud Computing: Microsoft, Google Cloud, and Amazon Web Services dominate the global cloud infrastructure market, collectively accounting for 67% of the $76 billion market in Q1 of 2024.
- Financial Performance of Cloud Leaders: Microsoft's Intelligent Cloud business generated $26.7 billion, AWS had revenues of over $25 billion, and Google Cloud reported sales of $9.6 billion in Q1 of 2024.
- Market Share and Growth Forecasts: AWS leads with a 31% market share, followed by Microsoft (25%) and Google (11%). Global end-user spending on public cloud services is expected to reach $678.8 billion in 2024.
- ETFs and Investment Opportunities: ETFs like Wisdomtree Cloud Computing Fund, Global X Cloud Computing ETF, and others have seen gains amid the cloud computing boom, offering investment opportunities in the sector.
Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BABA is 203.66 USD with a low forecast of 172.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 177.180
Low
172.00
Averages
203.66
High
230.00
Current: 177.180
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
