Cloud Stocks: Qualys Scouting For Acquisitions

With the continuous digital transformation and growing adoption of smart connected devices supported by AI and Machine Learning capabilities, enterprise security systems globally are exposed to vulnerabilities. According to Gartner, enterprise spending on Security Technology is expected to grow to $124 billion this year. A MarketsandMarkets report expects the global cybersecurity market to grow 10% annually over the next four years to $248.3 billion by 2023. Another Research and Markets report expects the global security & vulnerability management market to grow 9% annually to become a $13.7 billion industry by 2026. These stellar growth projections are also getting reflected in the financial performance of the security players. Recently, cloud-based security player Qualys (Nasdaq: QLYS) reported its first quarter results that surpassed market expectations.

Cloud Stocks: How Upwork Can Leverage the Virtual Company Trend

Mountain View-based Upwork (NASDAQ: UPWK), the largest online marketplace that enables businesses to find and work with highly-skilled freelancers, went public last year. I am a huge fan of this platform, and my company has used it extensively for 15 years. Upwork has just announced its results for the first quarter that missed the analyst revenue estimates.

For Apple, Growth Exists Beyond iPhones

According to a recent Gartner report on global smartphones, for Q4 2018, Apple (Nasdaq: AAPL) reported its worst quarterly decline in phone sales since Q1 2016. With demand for entry level smartphones continuing to grow, vendors like Huawei are eating into both Apple’s and Samsung’s smartphone share. But Apple is turning the trend around by focusing on subscription-based services and the emerging trend of digital health. The efforts are being appreciated by the market as the stock climbed 5% post result announcement.

Proofpoint Expanding Footprint Via Acquisitions

According to a recent Research Report World report, the global enterprise cyber security market is expected to grow at 18% CAGR through 2025. The cloud-based enterprise email security, e-discovery, and compliance service provider Proofpoint (Nasdaq: PFPT) recently announced its first quarter results that surpassed market expectations. This was the fourth consecutive quarter that Proofpoint beat market expectations.

PaaS: Six Cloud Stock Picks Based on PaaS Prospects

Cloud products often tend to have low switching costs. The best way to create exit barriers is to have a Platform-as-a-Service (PaaS) strategy and invite entrepreneurial developers to come develop apps on it. As apps gain traction, some of the startups developing them can be acquired. Integration is easy because of the technology stack compatibility.

This is my analysis of how SaaS companies need to be scaled inorganically.

With this lens on, I have identified a set of cloud stocks that look promising for the next decade.

1. Salesforce.com (NYSE: CRM). Their lead is so great in this space, that the chance of anyone else catching up is minuscule if not zero. Further analysis here.

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Tableau Needs a PaaS Strategy

According to a Market Reports report published earlier this year, the  global data visualization market is estimated to grow 9.5% annually to $7.76 billion by 2023 from $4.51 billion in 2017. Tableau (NYSE: DATA) is a leading player in the market, but the company is leaving a lot of money on the table by not pursuing a developer ecosystem strategy more aggressively.

BigBasket’s Acquisitions

According to a Goldman Sachs report, the Indian online grocery market is expected to reach $40 million in FY2019 and is expected to grow at a CAGR of 62% from 2016 to 2022. According to Crisil, online grocery in India is expected to grow between 65-70% annually to $1.4 billion by 2020. A leading player in this industry is BigBasket, which recently joined the Billion Dollar Unicorn Club.

Cloud Stocks: Should Alarm.com Follow a PaaS Strategy?

According to a Market Watch report, the global connected home market is estimated to grow 14% annually to reach a valuation of more than $138 billion by 2026. Connected homes include the ability to operate and connect various devices and appliances including those that provide security, healthcare, energy management, media, lighting, and kitchen solutions with mobile and internet connected devices. The high growth rate of the market has attracted tech giants like Amazon and Google to enter the space too. One early participant in the market is Virgina-based Alarm.com (NASDAQ: ALRM) that provides security solutions for smart homes and businesses.