Best cloud stocks to invest in 2025

Cloud computing continues to reshape the digital economy, powering everything from enterprise software to artificial intelligence. Investors looking for growth, scalability, and recurring revenue should consider leading companies in the cloud space.

Oracle has evolved into a cloud powerhouse through aggressive innovation and enterprise-focused services. IBM is leveraging its hybrid cloud and AI capabilities to transform legacy operations for global clients. Google, through Google Cloud, is expanding its enterprise footprint while remaining a leader in AI infrastructure.

These companies represent a broad spectrum of cloud providers – from infrastructure and platforms to SaaS leaders and niche specialists. For long-term exposure to digital transformation and cloud-driven innovation, these are among the best cloud stocks to invest in 2025.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

• Arista Networks (NYSE:ANET)

  Arista Networks is a leading provider of cloud networking solutions, specializing in high-performance switches, routers, and software-defined networking. Founded in 2004 and headquartered in Santa Clara, California, Arista has revolutionized data center and enterprise networking with its scalable, software-driven approach. The company's products are widely used by hyperscale cloud providers, financial institutions, and large enterprises requiring ultra-low latency and high reliability.

  With a focus on automation, artificial intelligence, and network security, Arista delivers cutting-edge solutions that enhance connectivity and operational efficiency. Its Extensible Operating System (EOS) is a key differentiator, providing a highly programmable and resilient platform for modern cloud environments. Through continuous innovation and strategic partnerships, Arista Networks remains at the forefront of cloud networking technology.

  Arista Networks financial statements

  Analysts recommendation: 1.54

  Financial Health

  • Return on assets (ROA): 15.23%
  • Return on equity (ROE): 33.64%
  • Return on investment (ROI): 29.93%

  Profitability

  • Gross margin: 64.24%
  • Operating margin: 44.73%
  • Net profit margin: 40.89%

  Growth

  • EPS (past 5 years): 27.37%
  • EPS (current): 2.56
  • EPS estimate (next quarter): 0.65
  • EPS growth (this year): 34.6%
  • EPS growth (next year): 16.96%
  • EPS growth (next 5 years): 16.17%
  • EPS growth (quarter-over-quarter): 27.65%
  • Sales growth (past 5 years): 23.77%
  • Sales growth (quarter-over-quarter): 30.4%

  💡 Why invest in Arista Networks?

  Several key factors make Arista an attractive prospect for investors seeking exposure to the ever-evolving cloud computing and data center landscape:

  • Leader in Cloud Networking: Arista stands as a recognized leader in the cloud networking arena, enjoying a strong reputation for high-performance, reliable solutions. This leadership position translates into a significant market share and brand recognition within the industry.
  • Software-Defined Approach: Arista's commitment to SDN simplifies network management, reduces operational costs, and allows for greater flexibility compared to traditional networking solutions. This innovative approach positions Arista for future success as SDN adoption continues to grow.
  • Open Networking Standards: Arista embraces open standards, ensuring compatibility with a wider range of hardware and software solutions. This open approach fosters a broader customer base and reduces vendor lock-in for its clients.
  • Strong Customer Focus: Arista prioritizes customer satisfaction, offering robust technical support and a strong focus on building long-term partnerships. This customer focus fosters loyalty and potentially recurring revenue streams.

  🐌 Key considerations before investing in Arista Networks

  While Arista navigates the dynamic data center landscape with its leadership in cloud networking, SDN expertise, and open standards approach, there are some challenges to consider before plugging into this investment opportunity:

  • Competition Heats Up: The data center networking market is a competitive landscape, with established players like Cisco and emerging challengers vying for market share. Staying informed about industry trends and how Arista plans to maintain its competitive edge is crucial.
  • Rapid Technological Change: The technology sector is characterized by constant innovation. Arista must stay at the forefront of emerging trends in networking technologies to maintain its market position. Analyzing the company's innovation strategy is key.
  • Vulnerability to Economic Downturns: Economic slowdowns can lead businesses to delay IT infrastructure upgrades, potentially impacting Arista's sales and profitability. Monitoring economic indicators is essential for understanding potential market fluctuations.
  • Valuation Considerations: As a leading technology company, Arista often trades at a premium valuation. Investors should carefully consider the company's growth prospects and long-term potential before investing.

  Final thoughts on Arista Networks

  Arista Networks' leadership in cloud networking, commitment to SDN, open standards approach, and strong customer focus paint a potentially promising picture for long-term investors seeking exposure to the data center and cloud computing sectors. However, the competitive landscape, rapid technological change, vulnerability to economic downturns, and premium valuation necessitate a cautious approach. Thorough research, analysis of Arista's future plans and the data center networking market landscape, and a clear understanding of your risk tolerance are crucial before joining this high-speed networking expedition. Remember, navigating the intricate terrain of cloud networking stocks requires both a discerning eye for market trends and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself seamlessly connected alongside the success story of Arista Networks.

• Vysarn (AX:VYS)

  Vysarn Ltd is an Australian technology company that specializes in data analytics and business intelligence solutions for enterprise clients. Founded in 2015, the company has established itself as a growing player in the Australian tech sector, focusing on helping businesses transform their data into actionable insights. The company has shown steady growth in recent years as demand for data analytics solutions continues to expand across various industries.

  Vysarn's core business operations center around developing and deploying advanced analytics platforms that enable organizations to make data-driven decisions more effectively. The company provides cloud-based solutions that integrate with existing enterprise systems, offering real-time analytics, predictive modeling, and automated reporting capabilities. With the increasing digitization of business processes and growing emphasis on data-driven decision making, Vysarn is positioned to benefit from the expanding market for business intelligence and analytics solutions.

  Vysarn financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 8.57%
  • Return on equity (ROE): 15.23%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 34.54%
  • Operating margin: 14.32%
  • Net profit margin: 10.04%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.02
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 36.4%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 77%

  💡 Why invest in Vysarn?

  Vysarn rides the data analytics wave with precision and innovation:

  • Strong Market Positioning: Strong positioning in the rapidly growing business intelligence and data analytics market, benefiting from increasing enterprise demand for data-driven decision-making solutions globally.
  • Scalable Platform Architecture: Cloud-based platform architecture provides scalable solutions with recurring revenue potential, offering flexibility and cost-effectiveness for enterprise clients across industries.
  • Local Market Expertise: Focus on Australian market provides competitive advantages through local expertise, regulatory knowledge, and established relationships with domestic enterprise customers and partners.
  • Advanced Analytics Capabilities: Advanced analytics capabilities including predictive modeling and real-time processing differentiate the company from basic reporting tools and create higher customer value propositions.

  🐌 Key considerations before investing in Vysarn

  Vysarn faces headwinds in a competitive and rapidly evolving landscape:

  • Intense Competitive Pressure: Intense competition from established global players like Microsoft, Salesforce, and IBM who have significantly larger resources and broader product portfolios in the analytics space.
  • Operational Scale Limitations: Relatively small size limits ability to invest heavily in R&D and marketing compared to larger competitors, potentially affecting long-term competitive positioning and growth prospects.
  • Geographic Concentration Risk: Dependence on Australian market creates geographic concentration risk and limits growth potential compared to companies with global reach and diversified revenue streams internationally.
  • Technology Evolution Risks: Rapid technological changes in AI and machine learning require continuous innovation and significant investment to maintain competitive edge and avoid obsolescence in the evolving market.

  Final thoughts on Vysarn

  Vysarn represents a focused play on the growing demand for business intelligence and data analytics solutions in the Australian market. While the company benefits from strong market tailwinds and local expertise, it faces significant competitive pressures from larger global players and geographic limitations. For investors seeking exposure to the data analytics sector, Vysarn offers a specialized approach but requires careful consideration of its competitive positioning against industry giants.

• Cloudflare (NYSE:NET)

  Cloudflare, Inc. is a global web infrastructure and security company that enhances the performance, reliability, and safety of internet properties through its expansive content delivery network (CDN), DDoS protection, and security services. The company was founded in July 2009 by Matthew Prince, Lee Holloway, and Michelle Zatlyn, and is headquartered in San Francisco, California. From its early days emerging from Project Honey Pot to launching at TechCrunch Disrupt in September 2010, Cloudflare has rapidly scaled its network infrastructure to over 330 data centers across 125+ countries, supporting nearly 20% of all websites globally.

  Cloudflare's core business centers on delivering a comprehensive suite of cloud, security, and performance services to millions of websites and applications worldwide. Key offerings include its global CDN, robust DDoS mitigation, next-gen Web Application Firewall, domain name services, and edge computing via its Workers platform. The company is also investing in AI-powered tools – such as bot detection, API protection, and content scraping defenses – to stay ahead in the evolving cybersecurity landscape .

  Cloudflare financial statements

  Analysts recommendation: 2.09

  Financial Health

  • Return on assets (ROA): -2.73%
  • Return on equity (ROE): -11.04%
  • Return on investment (ROI): -2.87%

  Profitability

  • Gross margin: 76.14%
  • Operating margin: -13.13%
  • Net profit margin: -6.22%

  Growth

  • EPS (past 5 years): 8.13%
  • EPS (current): -0.34
  • EPS estimate (next quarter): 0.18
  • EPS growth (this year): 6.24%
  • EPS growth (next year): 28.68%
  • EPS growth (next 5 years): 22.99%
  • EPS growth (quarter-over-quarter): -5.9%
  • Sales growth (past 5 years): 42.21%
  • Sales growth (quarter-over-quarter): 27.8%

  💡 Why invest in Cloudflare?

  Cloudflare offers several compelling reasons to consider investing:

  • Robust growth trajectory: The company grew revenue 29% in 2024 and has maintained ~25 – 27% growth into 2025, driven by enterprise adoption and large deals.
  • Strong product differentiation: With edge computing, AI integration, and Zero Trust security built into its core platform, Cloudflare remains well-positioned in competitive markets.
  • High-value customer acquisition: Q4 2024 saw a 47% increase in $1M+ customers, with 173 such contracts, including the largest-ever deal exceeding $100M.
  • Cash-rich and profitable model: Despite GAAP losses, free cash flow exceeded $166 million in 2024, with non-GAAP earnings turning positive and strong operating leverage.

  🐌 Key considerations before investing in Cloudflare

  However, prospective investors should weigh the following challenges:

  • GAAP profitability still negative: While non-GAAP profits improve, Cloudflare still posted GAAP losses, which may concern conservative investors.
  • Potential valuation risks: Shares surged ~67% YTD in 2025, raising the risk of a pullback if growth or guidance disappoints.
  • Guidance misses may trigger volatility: Q1 2025 projection fell slightly short of analyst expectations, indicating sensitivity to guidance delivery.
  • Intense competition: The cybersecurity and edge computing sectors are crowded, with strong competition from the likes of Palo Alto, Microsoft, and AWS.

  Final thoughts on Cloudflare

  Cloudflare has demonstrated strong 2024 growth and entered 2025 with robust momentum, powered by enterprise deals, innovative edge and security offerings, and improving cash flows. Its differentiated, AI-infused platform and customer expansion strategy support long-term scalability and defensibility. However, investors should remain cautious of its GAAP losses, valuation stretch, occasional guidance softening, and intensifying competition in the sector.

• Oracle (NYSE:ORCL)

  Oracle Corporation is a multinational technology company headquartered in Austin, Texas. Founded in 1977, Oracle is one of the world's largest providers of enterprise software and cloud solutions. The company initially gained recognition for its pioneering relational database management systems, and over the years, it has expanded its portfolio to include a wide range of cloud computing, software, and hardware products.

  Oracle specializes in offering cloud-based infrastructure, software-as-a-service (SaaS), and database solutions to businesses globally. Its flagship products, such as Oracle Cloud and Oracle Database, enable organizations to manage, analyze, and secure their data efficiently. With a focus on innovation and customer success, Oracle continues to lead the way in providing scalable, integrated solutions for enterprises of all sizes.

  Oracle financial statements

  Analysts recommendation: 1.83

  Financial Health

  • Return on assets (ROA): 7.26%
  • Return on equity (ROE): 82.38%
  • Return on investment (ROI): 10.56%

  Profitability

  • Gross margin: 70.51%
  • Operating margin: 32.48%
  • Net profit margin: 21.68%

  Growth

  • EPS (past 5 years): 7.12%
  • EPS (current): 4.33
  • EPS estimate (next quarter): 1.48
  • EPS growth (this year): 7.3%
  • EPS growth (next year): 20.85%
  • EPS growth (next 5 years): 17.88%
  • EPS growth (quarter-over-quarter): 7.3%
  • Sales growth (past 5 years): 8%
  • Sales growth (quarter-over-quarter): 11.3%

  💡 Why invest in Oracle?

  Oracle's dominant position in the enterprise software market offers several potential advantages for investors seeking exposure to this essential sector:

  • Mission-Critical Software: Businesses rely on Oracle's database and enterprise applications to function, making their products irreplaceable for many organizations. This translates to recurring revenue streams.
  • Cloud Transition: Oracle successfully migrates its enterprise software portfolio to cloud infrastructure, ensuring market relevance while capitalizing on expanding global cloud computing demand and modern deployment preferences.
  • Strong Brand Recognition: The Oracle brand represents enterprise-grade reliability and innovation, providing competitive advantages in customer acquisition, retention, and premium pricing power across markets.
  • Global Reach: Oracle operates worldwide with established presence in developed and emerging markets, positioning the company to capitalize on international growth opportunities and digital transformation.

  🐌 Key considerations before investing in Oracle

  However, before investing in Oracle, it's crucial to consider the potential challenges they face:

  • Competition: Intense competition from Microsoft, Amazon, Google, and cloud-native startups challenges Oracle's market position through innovative solutions, competitive pricing, and modern architectures.
  • Shifting Customer Preferences: Evolving customer preferences toward cloud-native solutions and subscription models require Oracle to adapt its traditional approach while competing against modern development paradigms and agile competitors.
  • Maturing Market: The traditional enterprise software market shows maturation signs with slower growth rates and increased competition that could limit Oracle's expansion opportunities in core database and applications segments.
  • Integration Challenges: Complex enterprise system migrations present technical and timeline challenges that can delay customer adoption of Oracle's cloud solutions and impact implementation success rates and customer satisfaction.

  Final thoughts on Oracle

  Oracle's strong brand recognition, established customer base, successful cloud transition, and global market presence create compelling advantages for investors seeking exposure to the essential enterprise software sector. However, intense competition from technology giants and cloud-native startups, evolving customer preferences toward modern architectures, and complex enterprise migration challenges present significant headwinds that require careful evaluation. Like a master architect of digital infrastructure, Oracle continues building the foundation for enterprise data management while adapting to the cloud-first future that defines modern business operations.

• Google (NYSE:GOOG)

  Google LLC, a subsidiary of Alphabet Inc, is a global technology company that provides internet-related services and products including search engines, cloud computing, software, and advertising technologies. Founded in 1998 by Larry Page and Sergey Brin while they were PhD students at Stanford University, Google began as a search engine and quickly became a dominant force in the technology industry. The company has expanded its offerings to include cloud computing, software, hardware, and advertising services that serve billions of users worldwide.

  Google operates diverse products beyond its famous search engine. The company leverages artificial intelligence and machine learning technologies. Google shapes digital transformation across industries worldwide.

  Google financial statements

  Analysts recommendation: 1.42

  Financial Health

  • Return on assets (ROA): 16.79%
  • Return on equity (ROE): 34.83%
  • Return on investment (ROI): 30.02%

  Profitability

  • Gross margin: 58.94%
  • Operating margin: 32.43%
  • Net profit margin: 31.12%

  Growth

  • EPS (past 5 years): 26.76%
  • EPS (current): 9.38
  • EPS estimate (next quarter): 2.16
  • EPS growth (this year): 22.3%
  • EPS growth (next year): 6.2%
  • EPS growth (next 5 years): 12.93%
  • EPS growth (quarter-over-quarter): 48.77%
  • Sales growth (past 5 years): 16.73%
  • Sales growth (quarter-over-quarter): 13.8%

  💡 Why invest in Google?

  Google's grip on online advertising, cloud computing prowess, relentless innovation, and diversified portfolio create a compelling investment case:

  • Advertising Market Dominance: Google dominates the global online advertising market with unparalleled reach and sophisticated data-driven targeting capabilities, securing robust foundations for consistent revenue streams.
  • Cloud Platform Growth: Google Cloud Platform rapidly expands market share by offering robust, scalable enterprise solutions, unlocking vast growth potential in the booming cloud computing market and digital transformation.
  • Technology Innovation Leadership: Google consistently pioneers breakthrough technologies including artificial intelligence, machine learning, and autonomous vehicle development, ensuring continued market relevance and competitive advantages.
  • Diversified Product Portfolio: Google's diversified portfolio spans YouTube, Android, hardware ventures, and emerging technologies, effectively mitigating sector-specific risks while providing broad exposure to digital trends.

  🐌 Key considerations before investing in Google

  While Google's strengths are undeniable, some factors merit careful consideration:

  • High Stock Valuation: Like many established tech giants, GOOG's stock currently sits near all-time highs, demanding a cautious approach due to potentially limited immediate gains. A patient, long-term perspective might be wise.
  • Regulatory Compliance Challenges: Google's market dominance and data collection practices attract intense regulatory scrutiny and antitrust investigations worldwide, creating operational uncertainties and potential business restrictions.
  • Intense Cloud Competition: Established competitors like Amazon Web Services and Microsoft Azure maintain significant market advantages, requiring Google Cloud to invest heavily in innovation and competitive pricing.
  • Economic Downturn Sensitivity: Economic downturns can significantly reduce corporate advertising budgets and cloud service investments, potentially impacting Google's revenue growth and profitability across primary business segments.

  Final thoughts on Google

  Google's advertising dominance, cloud computing growth, and technological innovation create compelling long-term investment opportunities in the digital economy. However, regulatory scrutiny, competitive pressures, and economic sensitivity require careful risk assessment and strategic patience. Like a digital lighthouse guiding ships through vast information oceans, Google illuminates pathways to knowledge while navigating complex technological and regulatory waters.

• Rubrik (NYSE:RBRK)

  Rubrik, Inc. is a cloud data management and cyber-resilience company founded in January 2014 in Palo Alto, California, by Bipul Sinha, Arvind Jain, Soham Mazumdar, and Arvind Nithrakashyap. The company went public via a NYSE IPO in April 2024 and saw remarkable stock performance, with its total return soaring approximately 194% over the past 12 months, significantly outperforming the S&P 500.

  Rubrik's core business centers on converged data management and data security, providing hybrid cloud solutions that integrate backup, recovery, and continuous cyber protection. Its Zero Trust Data Security platform enables live data access and protection across on-premises and cloud environments, supporting resilience against cyberattacks and operational disruptions. With a rapidly expanding customer base and strong ARR growth, Rubrik empowers enterprises to secure, manage, and leverage their data efficiently in increasingly complex IT landscapes.

  Rubrik financial statements

  Analysts recommendation: 1.43

  Financial Health

  • Return on assets (ROA): -23.77%
  • Return on equity (ROE): N/A
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 76.45%
  • Operating margin: -33.43%
  • Net profit margin: -53.68%

  Growth

  • EPS (past 5 years): -57.67%
  • EPS (current): 3.47
  • EPS estimate (next quarter): -0.34
  • EPS growth (this year): 36.06%
  • EPS growth (next year): 45.33%
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): 87.15%
  • Sales growth (past 5 years): 22.97%
  • Sales growth (quarter-over-quarter): 48.7%

  💡 Why invest in Rubrik?

  Rubrik offers several compelling reasons to consider investing:

  • Accelerating subscription growth: Subscription ARR surged 54% year-over-year in fiscal 2025, signaling strong demand and successful upsell execution.
  • Cloud-native Zero Trust platform: Rubrik's data protection platform is built for modern hybrid environments, appealing to enterprises seeking security and resilience.
  • Improving profitability and cash flow: Significant progress in operating leverage led to free cash flow of $75 million in Q4 and narrower losses per share.
  • High customer retention: Consistent NRR above 120% and expansion into large enterprise segments (2,246 customers with ≥$100K ARR) point to strong customer loyalty.

  🐌 Key considerations before investing in Rubrik

  However, prospective investors should weigh the following challenges:

  • Still unprofitable on GAAP basis: Despite improving margins, the company remains GAAP unprofitable, with a full-year loss per share of $(7.48) and elevated stock compensation costs.
  • Highly competitive market: Rubrik competes with major players like Commvault, Veeam, and new entrants, requiring constant innovation to maintain differentiation.
  • Execution risk scaling operations: Rapid growth demands could strain support, as hinted by some customer service complaints on Reddit.
  • High valuation sensitivity: A recent 48% stock surge in 2025 suggests elevated growth expectations that could reverse with any setback.

  Final thoughts on Rubrik

  Rubrik has emerged as a fast-growing leader in cloud-native data resilience, showing substantial ARR growth, improving financial discipline, and strong customer loyalty. Its differentiated Zero Trust platform positions it well in an expanding cybersecurity market. Investors should, however, be mindful of its ongoing GAAP losses, competitive pressures, service delivery execution, and valuation dependence on milestone execution.

• IBM (NYSE:IBM)

  International Business Machines Corporation (IBM) is a globally renowned technology and consulting company that provides enterprise software, hardware, and cloud computing solutions worldwide. Founded in 1911 as the Computing-Tabulating-Recording Company and headquartered in Armonk, New York, the company was later renamed IBM in 1924. With over a century of innovation, IBM has become a leader in developing advanced technology solutions for businesses across multiple industries.

  IBM specializes in cloud computing, artificial intelligence, quantum computing, and IT services for enterprises across various industries. Its flagship AI platform Watson and hybrid cloud offerings help organizations optimize operations and drive digital transformation. IBM continues to shape technology through research and development, delivering transformative solutions that empower businesses globally.

  IBM financial statements

  Analysts recommendation: 2.32

  Financial Health

  • Return on assets (ROA): 4.81%
  • Return on equity (ROE): 22.67%
  • Return on investment (ROI): 6.36%

  Profitability

  • Gross margin: 57.57%
  • Operating margin: 18.32%
  • Net profit margin: 9.11%

  Growth

  • EPS (past 5 years): -9.46%
  • EPS (current): 6.19
  • EPS estimate (next quarter): 2.65
  • EPS growth (this year): 17.7%
  • EPS growth (next year): 6.35%
  • EPS growth (next 5 years): 6.3%
  • EPS growth (quarter-over-quarter): -35.1%
  • Sales growth (past 5 years): -4.05%
  • Sales growth (quarter-over-quarter): 7.7%

  💡 Why invest in IBM?

  IBM offers several compelling reasons to consider investing:

  • Diversified Technology Portfolio: IBM's broad range of offerings, from cloud computing to consulting, provides stable revenue streams and reduces dependency on any single market segment or technology area globally.
  • Innovation Technology Focus: The company's investments in cutting-edge fields like AI and quantum computing demonstrate a commitment to staying at the forefront of technological advancements and emerging technologies.
  • Strong Enterprise Relationships: IBM's established partnerships with large organizations worldwide give it a competitive edge in delivering scalable enterprise solutions and comprehensive technology services globally.
  • Attractive Dividend Yield: IBM's consistent dividend payments appeal to income-focused investors, making it a reliable choice for long-term portfolios seeking steady income and capital preservation strategies.

  🐌 Key considerations before investing in IBM

  However, prospective investors should weigh the following challenges:

  • Slower Revenue Growth: Compared to other tech giants, IBM has struggled with consistent revenue growth, raising concerns about its competitiveness in high-growth markets and emerging technology sectors globally.
  • Complex Integration Challenges: Acquisitions like Red Hat require significant integration efforts, which could delay expected synergies or result in unforeseen costs and operational disruptions across business units.
  • Intense Market Competition: IBM faces intense competition from both established tech companies and agile startups, particularly in the cloud computing and AI sectors where innovation moves rapidly worldwide consistently.
  • Legacy Business Dependence: Despite its modernization efforts, IBM still relies on some legacy businesses, which may weigh on its overall performance and limit growth potential in emerging markets globally and domestically.

  Final thoughts on IBM

  IBM is a legacy technology company with a strong global presence and a diversified portfolio that spans innovative and traditional markets. Its emphasis on cloud computing, AI, and quantum computing positions it well for future growth, particularly as businesses accelerate their digital transformations. However, challenges like slower revenue growth, high competition, and legacy dependencies are factors investors should consider when evaluating IBM's potential.

• F5 (NYSE:FFIV)

  F5, Inc. (formerly F5 Networks) is a technology company that specializes in application delivery, multi-cloud security, and zero-trust solutions. Founded in 1996 and headquartered in Seattle, Washington, F5 has established itself as a key player in managing and securing internet traffic for Fortune 500 firms. Over the past 12 months, F5's stock has rallied approximately +40.5%, hitting a 52 – week high near $313 and demonstrating strong investor confidence

  F5's core business centers on its flagship BIG – IP platform – available in hardware, virtual, and SaaS formats – delivering application delivery controllers (ADCs), web application firewall (WAF), secure remote access, and API protection. The company has evolved F5 ADSP solutions into full zero-trust architectures, providing granular application-layer enforcement, encrypted traffic inspection, and identity-aware proxy services. With growing adoption of its ADSP and partnerships with cloud and identity providers, F5 fortifies digital transformation initiatives by ensuring performance, reliability, and security for enterprise applications.

  F5 financial statements

  Analysts recommendation: 2.93

  Financial Health

  • Return on assets (ROA): 8.27%
  • Return on equity (ROE): 20.58%
  • Return on investment (ROI): 17.5%

  Profitability

  • Gross margin: 81.03%
  • Operating margin: 25.16%
  • Net profit margin: 22.06%

  Growth

  • EPS (past 5 years): 6.18%
  • EPS (current): 11.34
  • EPS estimate (next quarter): 3.49
  • EPS growth (this year): 33.2%
  • EPS growth (next year): 6.98%
  • EPS growth (next 5 years): 7.39%
  • EPS growth (quarter-over-quarter): 23.97%
  • Sales growth (past 5 years): 4.66%
  • Sales growth (quarter-over-quarter): 12.2%

  💡 Why invest in F5?

  F5 offers several compelling reasons to consider investing:

  • Market leadership in application infrastructure: F5 is trusted by 85% of Fortune 500 companies, underlining its dominance in application delivery and security.
  • Software-driven growth accelerating: The company saw 19% growth in software revenue in Q4 2024, shifting its business toward recurring, higher-margin offerings.
  • Strong operational margins and cash generation: With non-GAAP operating margins above 34% and free cash flow margins around 40%, F5 demonstrates disciplined financial execution.
  • Strategic repositioning for cloud and security: Ongoing acquisitions like NGINX, Shape Security, Volterra, and Wib bolster its capabilities in multicloud, automated security, and edge platforms.

  🐌 Key considerations before investing in F5

  However, prospective investors should weigh the following challenges:

  • Enterprise IT spending sensitivity: The company's 2024 warning about flat to slight revenue decline highlights vulnerability to cautious IT budgets.
  • Hardware legacy drag: Although shifting to software, F5 still carries hardware and services components that may limit margin expansion.
  • Competitive cloud-native landscape: F5 faces pressure from major players like AWS, Microsoft, and cloud security specialists as enterprises migrate to cloud-centric solutions.
  • Valuation and growth expectations: With 2025 guidance calling for modest 4 – 5% revenue growth, upside may be capped unless cloud-driven momentum accelerates.

  Final thoughts on F5

  F5 remains a stalwart in application delivery and security, leveraging its robust installed base and leadership in global enterprises. Its transition toward software and cloud services has improved margins and recurring revenue, though growth may stay moderate amid cautious spending. Investors should closely monitor its execution in expanding multi-cloud capabilities, competitive positioning, and ability to unlock next-generation edge and security revenue.

• Microsoft (NYSE:MSFT)

  Microsoft Corporation is a global technology company that develops software, cloud computing services, and hardware products for consumers and enterprises worldwide. Founded in 1975 by Bill Gates and Paul Allen and headquartered in Redmond, Washington, Microsoft revolutionized the software industry with its Windows operating system. The company has since expanded into cloud computing, hardware, and digital services, becoming one of the largest and most influential technology firms globally.

  Microsoft specializes in software products like Windows and Office, cloud services through Azure, and hardware including Surface devices and Xbox consoles. The company leads in cloud computing by offering comprehensive cloud-based services for businesses and developers across multiple industries. Microsoft continues to drive technological advancements and digital transformation through innovation, empowering people and organizations to achieve more.

  Microsoft financial statements

  Analysts recommendation: 1.3

  Financial Health

  • Return on assets (ROA): 14.2%
  • Return on equity (ROE): 33.28%
  • Return on investment (ROI): 23.24%

  Profitability

  • Gross margin: 68.82%
  • Operating margin: 44.9%
  • Net profit margin: 36.15%

  Growth

  • EPS (past 5 years): 18.45%
  • EPS (current): 13.66
  • EPS estimate (next quarter): 3.37
  • EPS growth (this year): 23.7%
  • EPS growth (next year): 13.13%
  • EPS growth (next 5 years): 14.51%
  • EPS growth (quarter-over-quarter): 17.88%
  • Sales growth (past 5 years): 14.33%
  • Sales growth (quarter-over-quarter): 18.1%

  💡 Why invest in Microsoft?

  Microsoft presents a compelling investment case due to its unwavering revenue streams, cutting-edge AI ventures, thriving gaming presence, and unwavering commitment to innovation:

  • Strong Recurring Revenue: Microsoft's financial stability rests on Office 365 and Azure cloud platform, generating consistent recurring income while capturing significant market share in the rapidly expanding global cloud sector.
  • AI Technology Leadership: Microsoft's strategic investments in OpenAI and ChatGPT integration into Bing demonstrate forward-thinking AI leadership, positioning the company to challenge Google's search dominance effectively.
  • Gaming Division Strength: Microsoft's Xbox division thrives with Series X/S success and Game Pass cloud gaming ecosystem. This diversified gaming presence creates powerful revenue streams and insulates against market fluctuations.
  • Strong Market Adaptability: Microsoft consistently adapts and innovates across AI, cloud computing, and productivity tools. This agility enables continuous growth, market share expansion, and relevance in the dynamic tech landscape.

  🐌 Key considerations before investing in Microsoft

  While Microsoft's strengths are undeniable, some factors merit careful consideration:

  • Intense Cloud Competition: Azure faces fierce competition from AWS, Google Cloud, and other established players in the crowded cloud computing market, requiring continuous innovation and competitive pricing strategies.
  • Regulatory Compliance Scrutiny: Large acquisitions like Activision Blizzard face lengthy regulatory approval processes and potential challenges that could significantly impact future growth plans and strategic partnerships.
  • High Valuation Premium: Microsoft's stock trades near all-time highs with limited room for immediate significant gains, suggesting investors should consider waiting for more attractive entry points before investing.
  • Economic Downturn Sensitivity: Economic downturns could reduce corporate and consumer technology spending, affecting Azure and Office 365 subscriptions and making revenue vulnerable to broader economic trends and cycles.

  Final thoughts on Microsoft

  Microsoft's diverse revenue streams, AI leadership, and market adaptability make it a compelling long-term investment opportunity. However, intense cloud competition, regulatory scrutiny, and elevated valuation levels present notable challenges requiring careful consideration. Like a seasoned conductor orchestrating multiple instruments, Microsoft harmonizes various business segments to create a symphony of sustainable growth and innovation.

• Manhattan Associates (NYSE:MANH)

  Manhattan Associates, Inc., headquartered in Atlanta, Georgia, is a leading provider of supply chain and omnichannel commerce software solutions. In 2024, the company reported record revenues of $1.04 billion, marking a 12.2% increase from the previous year, and a net income of $218.4 million, up 23.7% year-over-year. Operating income reached $261.6 million, reflecting a 25% increase from 2023. Manhattan Associates' core business centers on delivering cloud-native supply chain and omnichannel commerce solutions through its Manhattan ActiveВ® platform. The company offers a comprehensive suite of applications, including warehouse management systems (WMS), transportation management systems (TMS), order management systems (OMS), and supply chain planning tools. These solutions enable businesses to optimize inventory, streamline operations, and enhance customer experiences across various industries.

  Manhattan Associates financial statements

  Analysts recommendation: 2.09

  Financial Health

  • Return on assets (ROA): 24.44%
  • Return on equity (ROE): 85.16%
  • Return on investment (ROI): 74.34%

  Profitability

  • Gross margin: 56.28%
  • Operating margin: 15.83%
  • Net profit margin: 20.91%

  Growth

  • EPS (past 5 years): 21.66%
  • EPS (current): 3.57
  • EPS estimate (next quarter): 1.13
  • EPS growth (this year): 0%
  • EPS growth (next year): 9.08%
  • EPS growth (next 5 years): 9.36%
  • EPS growth (quarter-over-quarter): -0.73%
  • Sales growth (past 5 years): 11.02%
  • Sales growth (quarter-over-quarter): 16.6%

  💡 Why invest in Manhattan Associates?

  Manhattan Associates offers several compelling reasons to consider investing:

  • Strong Financial Performance: In 2024, the company achieved a 12.2% increase in revenue and a 23.7% rise in net income compared to the previous year.
  • Cloud-Native Platform: The Manhattan ActiveВ® platform offers scalable, microservices-based solutions that support rapid deployment and continuous innovation.
  • Diverse Customer Base: Serving over 1,200 customers worldwide, including retailers, wholesalers, and manufacturers, the company has a broad market reach.
  • Investment in R&D: In 2024, Manhattan Associates invested $149.8 million in research and development, reflecting its commitment to innovation.

  🐌 Key considerations before investing in Manhattan Associates

  However, prospective investors should weigh the following challenges:

  • Profit Outlook: The company projected a 4% to 6% decrease in adjusted earnings per share for 2025, citing a challenging macroeconomic environment.
  • Market Competition: Manhattan Associates faces competition from major players like Oracle and SAP in the supply chain software market.
  • Customer Transition to Cloud: With less than 20% of its customer base on cloud solutions, the company faces the challenge of migrating existing clients to its cloud platform.
  • Stock Volatility: Following the profit warning in early 2025, the company's stock experienced a significant decline, highlighting potential volatility.

  Final thoughts on Manhattan Associates

  Manhattan Associates' robust financial performance and commitment to innovation position it as a strong player in the supply chain software industry. However, investors should consider the company's profit outlook, competitive landscape, and the challenges associated with transitioning customers to its cloud platform.

• Zscaler (NYSE:ZS)

  Zscaler, Inc. is a cloud-native cybersecurity company delivering comprehensive security services via its Zero Trust Exchange platform to enterprises across more than 125 countries. Founded in 2007 and headquartered in San Jose, California, Zscaler has rapidly scaled its network to over 330 data centers worldwide. In the past year, its stock has seen a total return of approximately +75%, significantly outperforming the S&P 500 (~14%), and its share price has climbed about +64% year-to-date, reflecting strong investor confidence.

  Zscaler's core business is centered on delivering cloud-based security solutions that replace traditional on-premises architectures with scalable, automated protective services. Its platform includes Zero Trust Internet Access, Private Access, and Security Service Edge (SSE), protecting user connections, cloud workloads, and web applications from threats using AI, machine learning, and extensive threat intelligence. By continuously enhancing its capabilities – such as adding SASE and AI-powered bot detection – Zscaler empowers organizations to securely embrace cloud transformation and remote work.

  Zscaler financial statements

  Analysts recommendation: 1.69

  Financial Health

  • Return on assets (ROA): -1.37%
  • Return on equity (ROE): -2.7%
  • Return on investment (ROI): -2.11%

  Profitability

  • Gross margin: 76.88%
  • Operating margin: -3.62%
  • Net profit margin: -1.55%

  Growth

  • EPS (past 5 years): -10.72%
  • EPS (current): -0.27
  • EPS estimate (next quarter): 0.8
  • EPS growth (this year): -0.04%
  • EPS growth (next year): 14.41%
  • EPS growth (next 5 years): 11.53%
  • EPS growth (quarter-over-quarter): -121.43%
  • Sales growth (past 5 years): 48.24%
  • Sales growth (quarter-over-quarter): 21.3%

  💡 Why invest in Zscaler?

  Zscaler offers several compelling reasons to consider investing:

  • Rapid growth and scale-up: After 34% revenue growth in 2024, Zscaler reached $2.17B, supported by broad enterprise adoption of SASE and Zero Trust platforms.
  • Leader in Zero Trust security: The company is consistently ranked a market leader, with its cloud-native platform processing trillions of transactions daily – a strong moat.
  • Innovative product expansions: Strategic partnerships (e.g., Vectra AI) and acquisitions like Red Canary reinforce its threat detection and cybersecurity ecosystem.
  • Recurring subscription model: High renewal rates and expanding billings maintain predictable, recurring revenue streams and strong deferred revenue growth.

  🐌 Key considerations before investing in Zscaler

  However, prospective investors should weigh the following challenges:

  • Recent revenue slowdown: After 2024 growth, revenue fell ~8% year-over-year by April 2025, indicating slower momentum and potential market saturation.
  • GAAP profitability lag: The firm remains loss-making under GAAP accounting, with non-GAAP adjustments masking core losses.
  • Intensifying competition: Zscaler faces pressure from major players like Palo Alto Networks, Microsoft, and emerging rivals like Wiz.
  • Valuation ebbing: Its high-growth premium has cooled, evidenced by a 16% stock decline in 2024 and post-earnings dips on conservative guidance.

  Final thoughts on Zscaler

  Zscaler stands as a leading innovator in cloud-based security with a scalable subscription model, strong platform differentiation, and solid 2024 expansion. While growth has moderated in early 2025 and the company remains non-GAAP profitable, its focus on AI-driven capabilities and platform integration positions it well for future enterprise adoption. However, investors should weigh valuation normalization, ongoing GAAP losses, and intensifying competitive pressures when assessing Zscaler's long-term investment potential.

• ServiceNow (NYSE:NOW)

  ServiceNow Inc is a leading provider of cloud-based enterprise workflow automation solutions that help organizations streamline operations and improve productivity worldwide. Founded in 2004 by Fred Luddy and headquartered in Santa Clara, California, the company has revolutionized digital workflows with its comprehensive platform. ServiceNow's suite of applications and tools focuses on improving productivity and delivering better customer and employee experiences through automation and intelligent workflows.

  The company specializes in delivering enterprise cloud services for IT service management, human resources, customer service, and security operations across multiple industries. ServiceNow's platform integrates AI and machine learning to automate complex processes, enabling businesses to operate more efficiently and adapt to changing market needs. With a strong emphasis on innovation and continuous platform development, ServiceNow helps organizations digitally transform their operations for improved agility and business outcomes.

  ServiceNow financial statements

  Analysts recommendation: 1.42

  Financial Health

  • Return on assets (ROA): 5.17%
  • Return on equity (ROE): 16.95%
  • Return on investment (ROI): 12.37%

  Profitability

  • Gross margin: 78.52%
  • Operating margin: 12.07%
  • Net profit margin: 13.78%

  Growth

  • EPS (past 5 years): 16.56%
  • EPS (current): 7.95
  • EPS estimate (next quarter): 3.57
  • EPS growth (this year): 46%
  • EPS growth (next year): 19.78%
  • EPS growth (next 5 years): 19.57%
  • EPS growth (quarter-over-quarter): 31.5%
  • Sales growth (past 5 years): 25.99%
  • Sales growth (quarter-over-quarter): 22.4%

  💡 Why invest in ServiceNow?

  Several key factors make ServiceNow an attractive prospect for investors seeking exposure to the growing cloud software market:

  • Enterprise Workflow Leadership: ServiceNow boasts a dominant market share in the cloud-based enterprise workflow management space, offering a comprehensive and scalable platform for digital transformation initiatives.
  • Subscription Revenue Model: Their recurring subscription fees provide predictable and consistent revenue streams, enabling sustainable growth and long-term customer relationships across enterprise markets globally.
  • Platform Innovation Focus: The Now Platform's continuous development ensures ServiceNow remains at the forefront of technological advancements and emerging enterprise automation trends worldwide consistently.
  • Strong Developer Ecosystem: A vibrant developer community fosters innovation and expands the platform's capabilities through custom applications and third-party integrations across industries globally and effectively.

  🐌 Key considerations before investing in ServiceNow

  While ServiceNow's leadership position, subscription model, and focus on innovation are strengths, there are challenges to consider:

  • Legacy Vendor Competition: Established software companies are increasingly offering cloud-based solutions, posing a competitive threat to ServiceNow's market position and growth opportunities worldwide consistently.
  • System Integration Complexity: Integrating ServiceNow with existing enterprise systems can be complex and time-consuming, potentially hindering adoption and implementation timelines for customers globally and domestically.
  • Data Security Concerns: As a cloud-based platform, ServiceNow faces the ever-present challenge of ensuring data security and compliance with evolving regulatory requirements globally and domestically consistently.
  • High Valuation Concerns: ServiceNow's stock price has experienced significant growth, and some investors might consider it overvalued relative to current market conditions and growth prospects globally and domestically.

  Final thoughts on ServiceNow

  ServiceNow's leadership position, subscription model, and focus on platform innovation paint a potentially promising picture for long-term investors seeking exposure to the essential enterprise software market. However, competition from established players, integration complexity, security concerns, and potential valuation concerns necessitate a cautious approach. Thorough research, analysis of ServiceNow's plans for navigating these challenges, and a clear understanding of your risk tolerance are crucial before adding ServiceNow to your portfolio. Remember, the future of work is digital, and ServiceNow's ability to maintain its leadership position will depend on its agility, continued innovation, and ability to address the evolving needs of its enterprise customers. Choose wisely, and your portfolio might find itself well-aligned with the success story of ServiceNow.

• SAP (DE:SAP)

  SAP SE is a leading European software company that provides enterprise resource planning and cloud computing solutions to organizations worldwide. Founded in 1972 by five former IBM engineers and headquartered in Walldorf, Germany, SAP has grown into one of the world's largest enterprise software providers. The company serves organizations in over 180 countries with its flagship ERP suite SAP S/4HANA and comprehensive business software solutions.

  SAP specializes in cloud-based customer experience solutions, AI-driven data analytics, and tools for sustainability and intelligent automation across multiple industries. The company's offerings help businesses integrate operations, finance, human resources, and supply chain management through advanced in-memory processing and analytics capabilities. SAP empowers clients to achieve digital transformation while upholding European standards of data privacy and security compliance.

  SAP financial statements

  Analysts recommendation: 1.4

  Financial Health

  • Return on assets (ROA): 8.73%
  • Return on equity (ROE): 15.84%
  • Return on investment (ROI): 10.85%

  Profitability

  • Gross margin: 73.8%
  • Operating margin: 28.46%
  • Net profit margin: 18.23%

  Growth

  • EPS (past 5 years): -1.42%
  • EPS (current): 5.57
  • EPS estimate (next quarter): 1.65
  • EPS growth (this year): 97%
  • EPS growth (next year): 17.86%
  • EPS growth (next 5 years): 27.71%
  • EPS growth (quarter-over-quarter): 306.69%
  • Sales growth (past 5 years): 3.85%
  • Sales growth (quarter-over-quarter): 8.9%

  💡 Why invest in SAP?

  Key strengths that make SAP an attractive investment:

  • ERP Market Leadership: SAP dominates the global ERP market, with a strong foothold among Fortune 500 companies and major enterprises worldwide, providing comprehensive business solutions and digital transformation.
  • Robust Cloud Transition: Its shift to cloud-native platforms anchored by SAP S/4HANA Cloud drives recurring subscription revenue and long-term growth potential across enterprise markets globally and consistently.
  • Advanced AI Analytics: Embedded machine learning and advanced analytics across its portfolio enhance automation, predictive insights, and real-time decision-making capabilities for enterprises worldwide.
  • Strong Financial Profile: Consistent subscription and maintenance revenues underpin stable cash flows, a solid balance sheet, and shareholder returns via dividends across market cycles consistently and reliably.

  🐌 Key considerations before investing in SAP

  Potential challenges and risks to consider:

  • Competitive Cloud Landscape: SAP faces intense competition in cloud services from Microsoft Azure, Amazon Web Services, Oracle, and Salesforce, requiring continuous innovation and investment globally and consistently.
  • Complex Implementation Challenges: Large-scale SAP deployments can be costly and time-intensive, posing barriers for small and mid-market customers seeking enterprise solutions and digital transformation initiatives.
  • Enterprise Customer Dependency: A significant share of revenue comes from large corporations, making SAP sensitive to macroeconomic swings in IT spending and budget constraints across markets globally and consistently.
  • Cloud Adoption Challenges: While accelerating, SAP's overall migration from on-premises to cloud solutions trails some purely cloud-native rivals in market adoption and customer preference globally and consistently.

  Final thoughts on SAP

  SAP SE combines deep European roots and a storied history in enterprise software with a forward-looking cloud and AI strategy. Its leadership in ERP, expanding cloud footprint, and strong financials make it a compelling choice for investors seeking exposure to digital transformation trends, particularly those valuing European data-privacy standards and sustainability commitments. Nonetheless, prospective investors should weigh competitive pressures, implementation complexities, and macroeconomic sensitivities before taking a long-term position.

• Amazon (NYSE:AMZN)

  Amazon.com, Inc. is a global e-commerce and technology giant headquartered in Seattle, Washington. Founded in 1994 by Jeff Bezos, Amazon originally began as an online bookstore before expanding into a wide variety of product categories and services. Today, it is one of the largest and most influential companies in the world, with a diverse portfolio spanning retail, cloud computing, digital streaming, and artificial intelligence.

  The company specializes in e-commerce, offering millions of products through its online platform, Amazon.com, while also providing cloud services through Amazon Web Services (AWS). Amazon is also a major player in the entertainment industry with services like Prime Video, as well as in smart home technology with products like Alexa and Echo. Committed to innovation, customer satisfaction, and sustainability, Amazon continues to revolutionize industries and shape the future of commerce and technology.

  Amazon financial statements

  Analysts recommendation: 1.23

  Financial Health

  • Return on assets (ROA): 7.7%
  • Return on equity (ROE): 24.77%
  • Return on investment (ROI): 15.02%

  Profitability

  • Gross margin: 49.61%
  • Operating margin: 11.43%
  • Net profit margin: 10.54%

  Growth

  • EPS (past 5 years): 36.89%
  • EPS (current): 6.55
  • EPS estimate (next quarter): 1.32
  • EPS growth (this year): 33.3%
  • EPS growth (next year): 17.21%
  • EPS growth (next 5 years): 17.16%
  • EPS growth (quarter-over-quarter): 62.33%
  • Sales growth (past 5 years): 17.86%
  • Sales growth (quarter-over-quarter): 13.3%

  💡 Why invest in Amazon?

  Several key factors make Amazon an attractive prospect for investors seeking exposure to the ever-evolving retail and technology landscape:

  • E-commerce Dominance: Amazon commands a dominant market share in global online retail, offering an unparalleled product selection, convenient shopping experience, and sophisticated logistics network that delivers products worldwide.
  • Diversified Business: Amazon's strategic presence across cloud computing through AWS, streaming entertainment via Prime Video, and emerging technologies provides multiple robust revenue streams beyond retail.
  • Innovation Focus: Amazon consistently pioneers breakthrough innovations from advanced logistics automation to AI-powered technologies like Alexa, ensuring sustained competitive advantages and market leadership.
  • Brand Loyalty: The Amazon brand represents trusted online shopping excellence, while the Prime membership program creates exceptional customer loyalty through exclusive benefits and fast shipping.

  🐌 Key considerations before investing in Amazon

  While Amazon's dominant position, diversified business model, and focus on innovation are strengths, there are challenges to consider:

  • Regulatory Scrutiny: Amazon's massive size and market influence have attracted intense regulatory scrutiny from governments worldwide, with potential antitrust actions and stricter regulations threatening business practices.
  • Labor Relations: Amazon faces ongoing criticism regarding labor practices and working conditions in fulfillment centers, creating potential reputational risks, operational disruptions, and regulatory challenges.
  • Competitive Pressure: Amazon confronts intensifying competition from established retailers like Walmart, emerging e-commerce platforms, and technology giants expanding into retail, threatening market share.
  • Valuation Premium: Amazon's stock trades at elevated valuations following significant price appreciation, potentially limiting near-term upside potential and creating vulnerability to market corrections.

  Final thoughts on Amazon

  Amazon's e-commerce dominance, diversified business model, and relentless innovation create compelling long-term investment opportunities for technology-focused portfolios. However, regulatory scrutiny, labor challenges, competitive pressures, and elevated valuations require careful consideration and risk assessment. Like a master chess player controlling multiple pieces simultaneously, Amazon strategically positions itself across various markets to maintain competitive advantages and drive sustainable growth.

• Varonis Systems (NYSE:VRNS)

  Varonis Systems is a cybersecurity software company that specializes in data security and analytics, helping organizations manage and protect their sensitive information. Founded in 2005 and headquartered in New York City, the company has built a strong presence in the data protection sector by focusing on insider threats and access control. Over the past year, Varonis stock has gained approximately 34%, reflecting solid investor confidence amid growing demand for data security solutions.

  The core business of Varonis revolves around its data-centric security platform, which provides visibility and control over critical data, including files, emails, and sensitive records. The platform leverages automation and machine learning to detect threats, enforce least-privilege access, and ensure compliance across on-premises and cloud environments. Varonis is particularly known for its effectiveness in securing unstructured data – such as documents and spreadsheets – which often represents the bulk of an organization's risk exposure.

  Varonis Systems financial statements

  Analysts recommendation: 1.71

  Financial Health

  • Return on assets (ROA): -5.27%
  • Return on equity (ROE): -25.73%
  • Return on investment (ROI): -10.6%

  Profitability

  • Gross margin: 81.46%
  • Operating margin: -24.02%
  • Net profit margin: -17.29%

  Growth

  • EPS (past 5 years): 0.23%
  • EPS (current): -0.92
  • EPS estimate (next quarter): 0.01
  • EPS growth (this year): -47.43%
  • EPS growth (next year): 121.81%
  • EPS growth (next 5 years): 22.01%
  • EPS growth (quarter-over-quarter): 13.72%
  • Sales growth (past 5 years): 16.73%
  • Sales growth (quarter-over-quarter): 16.7%

  💡 Why invest in Varonis Systems?

  Varonis Systems offers several compelling reasons to consider investing:

  • Cloud transition and recurring growth: ARR rose 18% in 2024, and SaaS now exceeds 50% of ARR, reflecting strong momentum in recurring revenue.
  • Robust free cash flow generation: The company produced $108 million in free cash flow in 2024, doubling the previous year and supporting financial flexibility.
  • Technical depth and platform stickiness: Its comprehensive metadata-driven platform has earned Gartner recognition and >90% renewal rates among large enterprises.
  • Positive price momentum and market leadership signals: Varonis recently achieved an RS rating of 82 and is forming a cup-with-handle pattern, signaling technical strength.

  🐌 Key considerations before investing in Varonis Systems

  However, prospective investors should weigh the following challenges:

  • Legacy-to-SaaS shift-related volatility: Revenue growth in SaaS is robust, but traditional license streams are declining, creating transitional pressure.
  • Unprofitable GAAP operations: The company posted GAAP operating losses near $118 million, suggesting it still struggles to reach full profitability.
  • Market-sensitive tech spending: Broader macroeconomic tightening and budget controls in large enterprises could slow sales adoption.
  • Competitive data protection landscape: The increased inclusion of DLP and risk tools in broader security platforms may challenge Varonis's value proposition.

  Final thoughts on Varonis Systems

  Varonis is successfully navigating its transition from legacy licensing to a SaaS-driven, metadata-first security platform with strong ARR growth, free cash flow, and technical market momentum. Its depth in data security, high renewal rates, and AI-enhanced capabilities position it well in the evolving cybersecurity space. Yet, profitability remains elusive under GAAP, and competition and macroeconomic headwinds may impact future growth – making execution on its SaaS transformation and market messaging critical.

• Qualys (NYSE:QLYS)

  Qualys, Inc. is a cloud-native cybersecurity company that delivers advanced solutions for vulnerability management, compliance, and threat protection. Founded in 1999 and headquartered in Foster City, California, the company has grown into a trusted provider of security and compliance services used by over 10,000 organizations worldwide. Over the past year, Qualys' stock has exhibited resilient performance, with its Relative Strength Rating improving to 72 – indicative of strengthening momentum – and record revenue and earnings growth, alongside a robust share repurchase initiative.

  Qualys' core business revolves around its Enterprise TruRisk platform, which offers integrated cloud-based tools for vulnerability detection, patch management, compliance monitoring, and continuous threat protection. The platform leverages automation and machine learning to deliver real-time visibility and prioritization, helping organizations reduce risk and maintain compliance across on-premises, cloud, and hybrid environments. As digital transformation accelerates, Qualys remains at the forefront of cybersecurity, empowering enterprises with scalable and effective security solutions.

  Qualys financial statements

  Analysts recommendation: 2.92

  Financial Health

  • Return on assets (ROA): 13.16%
  • Return on equity (ROE): 39.53%
  • Return on investment (ROI): 33.88%

  Profitability

  • Gross margin: 81.84%
  • Operating margin: 31.33%
  • Net profit margin: 29.04%

  Growth

  • EPS (past 5 years): 22.62%
  • EPS (current): 5.02
  • EPS estimate (next quarter): 1.47
  • EPS growth (this year): 10.3%
  • EPS growth (next year): 6.81%
  • EPS growth (next 5 years): 4.56%
  • EPS growth (quarter-over-quarter): 22.69%
  • Sales growth (past 5 years): 13.61%
  • Sales growth (quarter-over-quarter): 10.3%

  💡 Why invest in Qualys?

  Qualys offers several compelling reasons to consider investing:

  • Stable double-digit revenue growth and margins: 2024 revenues increased 10% YoY with EBITDA margins at 47%, showcasing both growth and profitability.
  • Cash-generative with strong capital returns: Free cash flow exceeded $230 million in 2024, and the company boosted its share repurchase authorization by $200 million.
  • Trusted, differentiated unified platform: Enterprise TruRisk integrates a broad suite – vulnerability management, patching, endpoint detection – simplifying vendor consolidation.
  • Technical credentials and enterprise adoption: Certifications like MITRE ATT&CK and elevated channel adoption (partner revenue ~48%) reinforce product reliability and go-to-market execution.

  🐌 Key considerations before investing in Qualys

  However, prospective investors should weigh the following challenges:

  • Growth may underwhelm compared to peers: While stable, 10% revenue growth lags behind high-speed cybersecurity scale-ups (e.g., CrowdStrike, Palo Alto).
  • Execution and innovation demands intensify: User feedback on support delays and the need to modernize risk tools underscore potential product – go-to-market challenges.
  • Stock momentum contingent on breakthrough: The chart pattern forming a double bottom and RS rating in the 70s indicates the stock needs technical breakout to attract investors.
  • Crowded cybersecurity landscape: With strong competitors and customer upgrades within multi-vendor stacks, Qualys must continuously refresh offerings to maintain relevance.

  Final thoughts on Qualys

  Qualys is a financially disciplined cybersecurity player, combining steady growth, robust cash generation, and a comprehensive security platform trusted by large enterprises. Its achievements in industry recognition, margin management, and channel momentum provide a strong base for future progress. However, expected slower growth relative to hyper-growth peers, evolving competitive pressure, and execution demands mean investors should look for catalysts like platform innovation and sustained stock momentum before considering entry.

• Salesforce (NYSE:CRM)

  Salesforce Inc. is a leading global provider of customer relationship management (CRM) software and cloud-based solutions, headquartered in San Francisco, California, United States. Founded in 1999 by Marc Benioff and Parker Harris, Salesforce pioneered the SaaS (Software as a Service) model, revolutionizing how businesses interact with their customers. Today, it serves millions of users across various industries, enabling organizations to enhance customer engagement and drive growth.

  The company specializes in CRM platforms, offering products like Sales Cloud, Service Cloud, Marketing Cloud, and Tableau for data analytics. Salesforce also focuses on innovation with its AI-powered Einstein platform and Slack for team collaboration. With a strong emphasis on sustainability and philanthropy through its 1-1-1 model, Salesforce continues to empower businesses worldwide by providing comprehensive tools to transform customer experiences.

  Salesforce financial statements

  Analysts recommendation: 1.48

  Financial Health

  • Return on assets (ROA): 5.52%
  • Return on equity (ROE): 11.2%
  • Return on investment (ROI): 8.64%

  Profitability

  • Gross margin: 77.65%
  • Operating margin: 22.82%
  • Net profit margin: 16.87%

  Growth

  • EPS (past 5 years): 112.11%
  • EPS (current): 6.87
  • EPS estimate (next quarter): 2.78
  • EPS growth (this year): 33.3%
  • EPS growth (next year): 11.75%
  • EPS growth (next 5 years): 12.57%
  • EPS growth (quarter-over-quarter): 2.08%
  • Sales growth (past 5 years): 17.25%
  • Sales growth (quarter-over-quarter): 9.8%

  💡 Why invest in Salesforce?

  Salesforce offers several compelling reasons to consider investing:

  • Market Leader in CRM: Salesforce dominates the CRM market, leveraging its reputation and expertise to drive adoption of its broader cloud services portfolio.
  • Diverse Cloud Ecosystem: Its comprehensive suite of solutions, including AI-powered Einstein Analytics and the Salesforce Platform, caters to a wide range of business needs across industries.
  • Strong Customer Retention: High renewal rates and long-term contracts ensure a reliable revenue stream from its enterprise cloud clients.
  • Commitment to Innovation: Salesforce continually invests in R&D and acquisitions, such as Tableau and Slack, to enhance its cloud offerings and expand market share.

  🐌 Key considerations before investing in Salesforce

  However, prospective investors should weigh the following challenges:

  • Intense Competition: The company faces strong competition from cloud giants like AWS, Microsoft, and Google, particularly in areas beyond CRM.
  • High Operating Costs: Salesforce's heavy investment in innovation, marketing, and acquisitions can pressure profit margins, particularly during economic downturns.
  • Integration Challenges: Managing the integration of acquired companies like Slack and Tableau into its ecosystem has posed operational complexities.
  • Economic Sensitivity: Enterprise clients may scale back spending on software and cloud services during economic slowdowns, impacting revenue growth.

  Final thoughts on Salesforce

  Salesforce is a cloud computing powerhouse with unparalleled expertise in CRM and a rapidly growing portfolio of enterprise solutions. Its focus on innovation, customer loyalty, and strategic acquisitions has positioned it as a leader in the digital transformation space. However, competitive pressures, high costs, and reliance on enterprise spending are key factors for investors to consider when evaluating Salesforce as a top cloud provider stock.

• monday.com (NASDAQ:MNDY)

  monday.com Ltd. is a cloud-based platform that democratizes the power of software so organizations can easily build work management tools and software applications to fit their every need. Founded in 2012 by Roy Mann and Eran Zinman, the company has grown from a simple project management tool to a comprehensive Work OS platform serving over 180,000 customers worldwide across various industries and team sizes.

  The company's no-code/low-code platform enables teams to create custom workflows, automate processes, and collaborate effectively through intuitive visual interfaces and flexible building blocks. monday.com continues to expand its platform capabilities through product development and strategic acquisitions, positioning itself as a leader in the growing work management and business process automation market.

  monday.com financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): -0.71%
  • Return on equity (ROE): 3.8%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 89.42%
  • Operating margin: -3.86%
  • Net profit margin: 3.63%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.76
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): -88.9%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 26.6%

  💡 Why invest in monday.com?

  Like a versatile digital workspace that adapts to any team's needs, monday.com demonstrates compelling software platform strengths:

  • Platform Flexibility: No-code/low-code Work OS platform enables customers to build custom workflows and applications without technical expertise, driving high user adoption.
  • Market Growth: Benefits from accelerating digital transformation trends and growing demand for work management, collaboration, and process automation solutions.
  • Customer Expansion: Strong land-and-expand model with high net revenue retention rates as customers add more users, features, and use cases over time.
  • Product Innovation: Continuous platform development and strategic acquisitions expand capabilities and addressable market opportunities in business software.

  🐌 Key considerations before investing in monday.com

  Like competing in a crowded software marketplace, monday.com faces significant platform and market challenges:

  • Intense Competition: Faces competition from established players like Microsoft, Atlassian, and Salesforce, as well as numerous specialized work management solutions.
  • Customer Acquisition: High customer acquisition costs and competitive sales cycles require significant marketing and sales investments to maintain growth rates.
  • Market Saturation: Growing market maturity in work management software could limit expansion opportunities and increase pricing pressure over time.
  • Economic Sensitivity: Business software spending is sensitive to economic conditions, with potential for reduced IT budgets during downturns affecting growth.

  Final thoughts on monday.com

  monday.com benefits from its flexible Work OS platform, strong customer expansion metrics, and exposure to growing digital transformation trends in business software. However, the company faces challenges from intense competition, high customer acquisition costs, and economic sensitivity affecting IT spending. Like a dynamic platform evolving with user needs, monday.com's success depends on maintaining product innovation and customer satisfaction while efficiently scaling its business model.

• DigitalOcean (NYSE:DOCN)

  DigitalOcean Holdings Inc. is a prominent provider of cloud computing services, headquartered in New York City, United States. Founded in 2011 by Ben Uretsky, Moisey Uretsky, Jeff Carr, Alec Hartman, and Mitch Wainer, the company has established itself as a go-to platform for small and medium-sized businesses (SMBs) and developers. DigitalOcean simplifies cloud infrastructure management, offering scalable solutions tailored to meet the needs of growing businesses.

  The company specializes in cloud hosting, virtual servers, and managed database solutions, enabling developers to deploy, manage, and scale applications effortlessly. Its user-friendly platform and transparent pricing have made it a favorite among startups and independent developers. With a strong focus on community support and educational resources, DigitalOcean empowers users to build and innovate efficiently in the cloud environment.

  DigitalOcean financial statements

  Analysts recommendation: 2.12

  Financial Health

  • Return on assets (ROA): 5.19%
  • Return on equity (ROE): N/A
  • Return on investment (ROI): 7.55%

  Profitability

  • Gross margin: 60.4%
  • Operating margin: 16.29%
  • Net profit margin: 15.18%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 1.31
  • EPS estimate (next quarter): 0.47
  • EPS growth (this year): 88.9%
  • EPS growth (next year): 3.44%
  • EPS growth (next 5 years): 8.79%
  • EPS growth (quarter-over-quarter): 147.61%
  • Sales growth (past 5 years): 25.09%
  • Sales growth (quarter-over-quarter): 13.6%

  💡 Why invest in DigitalOcean?

  Like a neighborhood coffee shop competing against global chains, DigitalOcean thrives by serving its community with personalized attention:

  • Developer-Centric Focus: DigitalOcean's platform specifically targets developers and SMBs with simplified cloud infrastructure, transparent pricing, and extensive documentation that reduces complexity.
  • Community Engagement: The company builds strong user loyalty through educational resources, tutorials, and community support that foster long-term customer relationships and organic growth.
  • Cost-Effective Solutions: DigitalOcean's transparent and affordable pricing model appeals to budget-conscious startups and small businesses seeking cloud infrastructure without enterprise complexity.
  • Recurring Revenue: The company benefits from predictable subscription-based revenue streams and high customer retention rates that provide financial stability and growth visibility.

  🐌 Key considerations before investing in DigitalOcean

  Even the most developer-friendly platforms face challenges in the competitive cloud computing landscape:

  • Cloud Giant Competition: DigitalOcean competes against AWS, Microsoft Azure, and Google Cloud, which have vastly superior resources, global infrastructure, and enterprise relationships.
  • Limited Enterprise Reach: The company's SMB focus restricts access to large enterprise contracts that drive significant revenue growth and provide competitive advantages for larger rivals.
  • Economic Sensitivity: DigitalOcean's customer base of startups and small businesses faces higher vulnerability to economic downturns, potentially impacting demand and customer retention rates.
  • Scale Limitations: The company's smaller infrastructure footprint and limited service portfolio may constrain its ability to compete for complex, multi-cloud enterprise deployments.

  Final thoughts on DigitalOcean

  DigitalOcean's developer-focused approach and community-driven growth strategy create a compelling niche in the cloud computing market. The company's simplified platform and transparent pricing resonate strongly with its target audience of developers and SMBs. However, investors must consider the competitive pressures from cloud giants and the inherent volatility of serving smaller businesses. Like a specialized tool that excels at specific tasks, DigitalOcean's focused approach may limit its total addressable market but creates deep customer loyalty and sustainable competitive advantages within its chosen segment.

• Adobe (NYSE:ADBE)

  Adobe is a global software company known for its industry-leading creative, digital marketing, and document management solutions. Founded in 1982 and headquartered in San Jose, California, the company has revolutionized digital media with products like Photoshop, Illustrator, Premiere Pro, and Acrobat. Adobe's software is widely used by professionals, businesses, and individuals to create, edit, and manage content across various platforms.

  With a strong focus on innovation, Adobe has expanded its offerings through cloud-based solutions like Adobe Creative Cloud, Document Cloud, and Experience Cloud. These platforms integrate artificial intelligence, analytics, and automation to enhance user experiences and streamline workflows. By continuously evolving its technology, Adobe remains at the forefront of digital transformation, empowering creators and businesses worldwide.

  Adobe financial statements

  Analysts recommendation: 1.81

  Financial Health

  • Return on assets (ROA): 17.85%
  • Return on equity (ROE): 52.25%
  • Return on investment (ROI): 38.3%

  Profitability

  • Gross margin: 89.25%
  • Operating margin: 35.91%
  • Net profit margin: 30.39%

  Growth

  • EPS (past 5 years): 15.54%
  • EPS (current): 15.6
  • EPS estimate (next quarter): 5.17
  • EPS growth (this year): 12.9%
  • EPS growth (next year): 12.33%
  • EPS growth (next 5 years): 12.13%
  • EPS growth (quarter-over-quarter): 12.97%
  • Sales growth (past 5 years): 14.1%
  • Sales growth (quarter-over-quarter): 10.6%

  💡 Why invest in Adobe?

  Creative Cloud empire, digital transformation trailblazer, innovation alchemist, and global reach expansionist make ADBE a potentially eye-catching tech investment:

  • Creative Cloud Empire: Adobe's subscription-based Creative Cloud, encompassing iconic tools like Photoshop and Illustrator, boasts millions of loyal users, generating predictable and recurring revenue streams.
  • Digital Transformation Trailblazer: As businesses embrace digital strategies, Adobe spearheads content creation workflows, offering marketing cloud solutions and e-commerce platforms, unlocking diverse growth avenues.
  • Innovation Alchemist: From artificial intelligence-powered editing tools to immersive 3D experiences, Adobe constantly pushes creative boundaries, ensuring its offerings remain relevant and in-demand.
  • Global Reach Expansionist: With operations spanning continents, Adobe taps into diverse creative needs and unlocks international growth potential, particularly in regions embracing digitization.

  🐌 Key considerations before investing in Adobe

  Valuation concerns, subscription renewal uncertainty, competition heats up, and macroeconomic headwinds present potential smudges for ADBE investors:

  • Valuation Concerns: Like many established software giants, ADBE's stock currently sits near all-time highs, demanding a cautious approach due to potentially limited immediate gains. A patient, long-term perspective might be wise.
  • Subscription Renewal Uncertainty: Fluctuations in the subscription renewal rate can impact Adobe's financial performance, making close analysis of customer satisfaction and industry trends crucial.
  • Competition Heats Up: Free and open-source software are emerging competitors, requiring Adobe to constantly innovate and offer unparalleled value to retain market share.
  • Macroeconomic Headwinds: Economic downturns and reduced advertising budgets can impact businesses relying on Adobe's solutions, adding a layer of uncertainty to its performance.

  Final thoughts on Adobe

  Adobe's Creative Cloud dominance, pioneering role in digital transformation, relentless innovation, and global reach paint a potentially vibrant picture for long-term investors seeking exposure to the evolving digital landscape. However, near-peak valuation, subscription renewal uncertainties, rising competition, and economic headwinds warrant a measured approach. Thorough research, analysis of Adobe's future plans and market dynamics, and a clear understanding of your risk tolerance are crucial before adding this colorful titan to your portfolio. Remember, navigating the ever-shifting palette of software stocks requires both an appreciation for cutting-edge creativity and a balanced perspective on potential market stumbles. Choose wisely, and your portfolio might just become a masterpiece fueled by the innovative engine of Adobe.

• Okta (NYSE:OKTA)

  Okta, Inc. is a leading independent identity management company that provides cloud-based solutions to securely connect people and organizations to the technologies they use. The company was founded in 2009 by Todd McKinnon and Frederic Kerrest and is headquartered in San Francisco, California. In the past year, Okta's stock has shown moderate recovery after a period of volatility, supported by improved profitability metrics and renewed enterprise demand.

  Okta's core business revolves around identity and access management (IAM), offering tools that help businesses manage and secure user authentication into applications and devices. Its product suite includes Single Sign-On (SSO), Multi-Factor Authentication (MFA), Lifecycle Management, and API Access Management, which are critical for securing hybrid IT environments. Okta's services are widely used across industries to ensure secure user experiences while reducing risks associated with unauthorized access and data breaches.

  Okta financial statements

  Analysts recommendation: 2

  Financial Health

  • Return on assets (ROA): 0.56%
  • Return on equity (ROE): 2.61%
  • Return on investment (ROI): 1.86%

  Profitability

  • Gross margin: 76.91%
  • Operating margin: 5.63%
  • Net profit margin: 6.08%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.84
  • EPS estimate (next quarter): 0.84
  • EPS growth (this year): 148.4%
  • EPS growth (next year): 8.95%
  • EPS growth (next 5 years): 12.61%
  • EPS growth (quarter-over-quarter): 245.12%
  • Sales growth (past 5 years): 34.82%
  • Sales growth (quarter-over-quarter): 12.7%

  💡 Why invest in Okta?

  Okta offers several compelling reasons to consider investing:

  • Market leadership and trust: Okta is widely recognized as a best-in-class identity provider, with thousands of enterprise customers relying on its secure and scalable platform.
  • Strong growth backed by recurring revenue: Its subscription-based model, complemented by rising remaining performance obligations (RPO up ~15 – 25%), provides predictable, high-quality revenue.
  • Innovative product evolution: Okta continues to lead with new offerings – like identity solutions for AI agents and token security – keeping it ahead in the evolving cybersecurity landscape.
  • Solid financial discipline and cash flow: The company delivered record free cash flow (~$284 million in Q4 FY25) and has moved into adjusted profitability territory, reinforcing operational resilience.

  🐌 Key considerations before investing in Okta

  However, prospective investors should weigh the following challenges:

  • Exposure to cyber incidents: Past breaches and hacks targeting its platform have impacted investor sentiment and increased scrutiny.
  • Intense competitive pressure: Major rivals like Microsoft, Palo Alto Networks, and emerging identity security startups underpin pricing and market-share challenges.
  • Guidance-driven volatility: Despite beating expectations, Okta's shares dropped over 11% after Q1 FY25 results due to cautious full-year guidance and macro concerns.
  • Reliance on enterprise tech budgets: As a B2B SaaS provider, Okta is sensitive to fluctuations in IT spending among large corporate customers.

  Final thoughts on Okta

  Okta stands out as a top-tier identity management company, underpinned by robust recurring revenue, growing cash flow, and leadership in emerging security trends like GenAI identity protection. While the competitive landscape and cyber-incident exposure pose challenges, Okta's strategic innovation and disciplined execution offer reliable long-term growth potential. Investors should watch management's ability to maintain momentum in product expansion, guide through tech spending cycles, and preserve trust amid heightened cybersecurity demands.

If you are interested in other stock categories, check out my other lists of the best AI, basic materials, healthcare, communication services, brokers, utility, energy, european financial, european industrial, european tech, european retail, beauty, waste management, financial, defense, european, european defense, hotel, automotive, tech, retail, real estate, industrial, semiconductor, insurance, manufacturing, construction, cybersecurity, european construction stocks.