One of the ways the world economy is being revolutionized is through the use of “big data.” Big data is very large sets of information that, when analyzed, can reveal patterns and trends in almost all areas of life.
Companies of all kinds are eager to use big data to expand their business opportunities, which creates enormous demand for systems that can distill the crucial elements from this ocean of information. Which of the “big data” companies are the best investment right now?
These 4 big data stocks are positioned to capitalize on this growing trend.
The Best Big Data Stocks: IBM (IBM)
IBM (NYSE:IBM) may seem like an old-fashioned name in the tech world, but it continues to demonstrate its resourcefulness.
While continuing to maintain a strong market share in the existing computer market, it has been effectively branching out into cloud computing and other newer areas.
The company just inked a deal with KMD, a major European supplier of software and IT services. IBM will help the Denmark-based firm upgrade its infrastructure offerings for its clients. With increasing inroads in Europe and one of the strongest brand in America, it continues to keep pace.
The Best Big Data Stocks: Oracle (ORCL)
Oracle (NYSE:ORCL) stock has been hammered in recent weeks due to some disappointing earnings and uncertainty about how reliable its numbers regarding its cloud computing capacity are.
That said, Oracle has been through many shakeups in the Internet era and has lived to tell the tale. Its customer base remains very large, and its new Oracle Soar module is designed to make the transition to greater cloud computing more efficient.
The market’s harsh reaction was largely prompted by one downgrade by JP Morgan. At the same time, Moody’s said Oracle “will maintain robust liquidity” and that “its total debt-to-EBITDA will decline over the next two to three years.”
While the company still needs to gain some ground, its current price looks like a bargain.
The Best Big Data Stocks: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) may not be the utterly dominant company it was 20 years ago, but it remains a force to be reckoned with. Its venture into cloud computing has been quite successful, with its Azure platform posting double-digit growth for 10 consecutive quarters.
Overall, Microsoft sales for the first quarter of 2018 came in at more than $26 billion, increasing by 16% year over year. Management has done a good job keeping expenses in check, which means profit margins are moving in the right direction too.
The stock has done consistently well this year despite all the turbulence in the market. The price-earnings ratio is on the high side, but a company of this quality deserves a place in anyone’s long-term portfolio.
The Best Big Data Stocks: Tableau Software (DATA)
Tableau Software (NYSE:DATA) is not as well known as the others discussed here, but it is definitely one to watch. Tableau has been expanding rapidly, both through internal growth and absorbing potential rivals.
It just acquired Empirical Systems, a leader in the automation data modeling. Combining Empirical’s expertise with Tableau’s existing software offerings will allow the enlarged company to provide customers with in-depth analysis of complex statistical models and patterns.
Unlike the three companies discussed above, Tableau doesn’t have a lengthy track record of increasing profits. But its ability to seize a significant segment of the market after just a few years indicates that it may offer the most explosive growth potential of all.
The author does not own any of the stocks discussed in this article.
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