The rise of cloud computing has transformed how businesses operate, with more and more companies turning to the cloud for their computing needs. As a result, the demand for cloud computing stocks has skyrocketed, with investors looking to capitalize on this growing trend.
If you’re looking to invest in cloud computing stocks in Canada, you may be wondering which ones are the best. With so many options, it can be challenging to know where to start. However, with some research and analysis, you can identify Canada’s top cloud computing stocks and make an informed investment decision.
In this article, we’ll look at the Canadian cloud computing market and highlight the top companies to invest in. Whether you’re a seasoned investor or just getting started, this guide will provide the information you need to make the right investment choices in cloud computing.
Why invest in Cloud Stocks in Canada?
For several reasons, investing in cloud stocks in Canada can be an attractive option. Firstly, the cloud computing market is experiencing rapid growth as businesses and organizations increasingly adopt cloud-based solutions for their data storage, computing, and software needs. This growth will continue as more companies move their operations to the cloud.
Secondly, many Canadian companies are at the forefront of cloud innovation, with several offering unique cloud solutions in high demand. In addition, companies like Shopify, OpenText, and Constellation Software have demonstrated impressive growth and profitability, making them attractive investment opportunities. With more and more companies investing in AI, new opportunities arise in Microsoft and Alphabet.
The recent shift to work at home has also increased the need for remote storage and online collaboration, which relies heavily on cloud infrastructure. Not to mention our ever-growing shift towards digitally-based everything.
The best Cloud Computing Stocks in Canada
These are the top companies in Canada which use cloud-based systems and get significant exposure to cloud computing in Canada.
Shopify Inc. (SHOP.TO)
Shopify is a leading e-commerce platform that provides cloud-based software solutions to businesses of all sizes. It enables companies to create online stores, manage inventory, and process payments. With the shift towards online shopping, Shopify’s services are in high demand, and the company has experienced significant growth in recent years.
OpenText Corporation (OTEX.TO)
OpenText is a software company that provides enterprise information management solutions, including cloud-based services for managing digital content and business processes. The company has a diverse customer base and a strong growth and profitability track record.
Constellation Software Inc. (CSU.TO)
Constellation Software is a software company that acquires, manages, and grows vertical market software businesses. The company has a long-term growth strategy and a proven track record of successful acquisitions, making it a potentially good investment for those interested in cloud-based software.
Kinaxis Inc. (KXS.TO)
Kinaxis provides cloud-based supply chain management software solutions to various industries, including automotive, high-tech, and healthcare. The company’s solutions help businesses optimize their supply chain operations, improve efficiency, and reduce costs.
Lightspeed POS Inc. (LSPD.TO)
Lightspeed POS is a cloud-based point-of-sale software provider for retail and restaurant businesses. Its software enables companies to manage their inventory, sales, and customer relationships all in one place.
BlackBerry Limited (BB.TO)
BlackBerry is a technology company that provides security software and services, including enterprise cloud-based security solutions. The company has a strong reputation in the cybersecurity industry and is well-positioned to benefit from the increasing demand for cloud-based security solutions.
CGI Inc. (GIB.A.TO)
CGI is a global IT consulting and outsourcing company that provides cloud-based services to various industries. The company has a strong track record of growth and profitability, making it a potentially good investment for those interested in the cloud computing industry.
Descartes Systems Group Inc. (DSG.TO)
Descartes provides cloud-based logistics and supply chain management solutions to businesses across various industries. Its solutions help businesses streamline operations, reduce costs, and improve customer satisfaction.
Sierra Wireless Inc. (SW.TO)
Sierra Wireless provides cloud-based device-to-cloud solutions for the Internet of Things (IoT) industry. Its solutions enable businesses to connect and manage their IoT devices, collect and analyze data, and automate operations.
Is There a Cloud Computing ETF?
Yes, there are several cloud-computing ETFs available to investors. These ETFs provide exposure to a diversified portfolio of cloud computing companies, making them a convenient and cost-effective way to invest in the cloud computing industry. Here are a few examples of cloud-computing ETFs that trade on Canadian exchanges:
- Global X Cloud Computing ETF (CLOU.TO)
- BMO Global High Dividend Covered Call ETF – ZWG.TO
- iShares Cloud Computing ETF (SKYY.TO)
- Evolve Cloud Computing Index Fund (DATA.TO)
What’s the largest cloud provider in Canada?
The largest cloud storage provider in Canada is likely Microsoft Azure, a subsidiary of Microsoft Corporation.
Azure is a cloud computing platform that provides a wide range of services, including storage, networking, analytics, and machine learning. It is widely used by businesses and organizations in Canada for their cloud computing needs.
Other major cloud providers in Canada include Amazon Web Services (AWS) and Google Cloud.
These cloud providers are the biggest players in quantum computing, allowing us to eventually compute more with less in the cloud.
How to Invest in Cloud Computing Stocks
Investing in cloud computing stocks is relatively straightforward and can be done through a brokerage account. Here are the steps to follow:
- Choose a brokerage firm: Many online brokerage firms allow you to buy and sell stocks. Do some research to find a reputable firm that offers the features and tools you need.
- Open a brokerage account: Once you have chosen a brokerage firm, you must open an account. This typically involves filling out an application and providing personal and financial information.
- Fund your account: After your account is set up, you must deposit funds to buy stocks. You can fund your account by transferring money from your bank account, using a debit or credit card, or mailing a check.
- Research cloud computing stocks: Before investing in any stock, it’s essential to do your research. Look for companies with strong financials, a competitive advantage, and a solid growth strategy. Many online resources are available to help you research and analyze stocks, such as financial news websites, stock screeners, and company annual reports.
- Buy stocks: Once you have identified the cloud computing stocks you want to invest in, you can buy them through your brokerage account. Simply enter the ticker symbol of the stock you want to buy, choose the number of shares, and place the order.
Will You Invest in Cloud Systems in Canada?
Investing in cloud computing stocks in Canada can be a wise investment decision for those looking for exposure to the rapidly growing technology sector. With Canada’s strong technology industry and increasing demand for cloud-based services, there are many promising companies to choose from.
As with any investment, it’s essential to research and invest in companies with a solid financial track record, competitive advantage, and a strong growth strategy.
By following these principles and diversifying your portfolio, you can potentially reap the benefits of investing in cloud computing stocks in Canada.