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What is Cloud Computing?

Cloud computing (CC) is the technique of processing, storing, and managing data on a network of remote computers hosted on the internet rather than on a personal computer or local server.

What Is CC's Market Size & Projected Growth?

 According to a Markets and Markets report, the cloud computing market will expand at a 17% CAGR between 2022 and 2027 which is an astronomical growth rate that should bode well for CC companies.

The Pure-Play Cloud Computing Companies Index

Below is a list of the 8 largest pure-play CC companies presented in descending order of their performances last week and YTD and the latest news, commentary and/or analysis on each company.

1. Arista Networks (ANET): UP 9.1% last week; UP 5.1% MTD
   • Business Model: develops, markets, and sells cloud networking solutions that consist of a set of network applications, as well as gigabit Ethernet switching and routing platforms.
   • Current PE ratio: 38.6 (High)
   • Number of Analysts Following Company: 20
   • Consensus Rating: Strong Buy
   • Consensus Price Target: $220.26
     • Variance from Current Price: 11.5% below 
   • Latest News, Commentary and/or Analysis
     • Arista Networks (ANET) Increases Despite Market Slip: Here's What You Need to Know
2. Dropbox (DBX): UP 8.3% last week; UP 7.1% MTD
   • Business Model: provides a platform that allows individuals and groups to collaborate and sign up for free through its website or app, or upgrade to a paid subscription plan for premium features.
   • Current PE ratio: 15.9 (Excellent)
   • Number of Analysts Following Company: 6
   • Consensus Rating: BUY
   • Consensus Price Target: $32.17
     • Variance from Current Price: 3.7% above 
   • Latest News, Commentary and/or Analysis
     • Dropbox, Inc. (DBX) Soars to 52-Week High, Time to Cash Out?
3. DataDog (DDOG); UP 6.0% last week; UP 1.3% MTD
   • Business Model: operates an observability and security platform for cloud applications
   • Current PE ratio: 80.7 (Very High)
   • Number of Analysts Following Company: 35
   • Consensus Rating: Buy
   • Consensus Price Target: $113.90
     • Variance from Current Price: 9.6% below 
   • Latest News, Commentary and/or Analysis
     • Datadog (DDOG) Increases Despite Market Slip: Here's What You Need to Know
4. Digital Reality Trust (DLR): UP 4.8% last week; UP 1.9% MTD
   • Business Model: a REIT that provides data center, colocation, and interconnection solutions.
   • Current PE ratio: NM
   • Number of Analysts Following Company: 13
   • Consensus Rating: Buy
   • Consensus Price Target: $120.83
     • Variance from Current Price: 10.9% below 
   • Latest News, Commentary and/or Analysis
     • • 2 Data Center REITs With Yields Up to 3.6%
5. Verisign (VRSN): UP 3.7% last week; DOWN 0.9% MTD
   • Business Model: provides domain name registry services and internet infrastructure that enables internet navigation of .com and .net domains that support global e-commerce and also provides back-end systems for .cc, .gov, .edu, and .name domain names, as well as operates distributed servers, networking, security, and data integrity services.
   • Current PE ratio: 28.1 (Good)
   • Number of Analysts Following Company: 2
   • Consensus Rating: Buy
   • Consensus Price Target: $247.00
     • Variance from Current Price: 22.4% above 
   • Latest News, Commentary and/or Analysis
     • Estimating The Intrinsic Value Of VeriSign
6. Equinix (EQIX): UP 3.4% last week; UP 1.2% MTD
   • Business Model: provides businesses with access to important locations, partners, and opportunities to expand their digital services, enhance customer experiences, and increase their overall value.
   • Current PE ratio: NM
   • Number of Analysts Following Company: 15
   • Consensus Rating: Buy
   • Consensus Price Target: $818.85
     • Variance from Current Price: 2.5% above 
   • Latest News, Commentary and/or Analysis
     • 2 Data Center REITs With Yields Up to 3.6%
7. Box (BOX): UP 2.6% last week; DOWN 1.2% MTD
   • Business Model: provides a platform that enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features.
   • Current PE ratio: 17.8 (Excellent)
   • Number of Analysts Following Company: 10
   • Consensus Rating: Buy
   • Consensus Price Target: $31.00
     • Variance from Current Price: 22.1% above 
   • Latest News, Commentary and/or Analysis
     • Box, Inc.'s (NYSE:BOX) Business Is Yet to Catch Up With Its Share Price
8. Pure Storage (PSTG): UP 2.0% last week; UP 2.7% MTD
   • Business Model: provides data services, such as data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object. 
   • Current PE ratio: 26.5 (Good)
   • Number of Analysts Following Company: 15
   • Consensus Rating: Buy
   • Consensus Price Target: $41.05
     • Variance from Current Price: 11.09% above 
   • Latest News, Commentary and/or Analysis
     • Pure Storage (NYSE:PSTG) Shareholders Will Want The ROCE Trajectory To Continue

Summary

The consensus price target of the analysts has already been achieved which exemplifies just how strong the surge is in the cloud computing space.

Conclusion

The above 8 CC stocks were UP 4.6% last week, on average, and are currently UP 2.0% MTD.

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