Top 6 Big Data Stocks to Watch in 2022 for Long Term Growth
Big data stocks are falling along with overall market weakness, creating a buying opportunity for long-term growth. With new ways to analyze information and find patterns, data is more valuable than ever.
If you haven’t noticed yet, data is being collected everywhere. For example, internet searches, social media posts, and consumer data are all being gathered. This data is becoming super valuable for those who can sort through it, finding key trends that can help make better decisions.
Meanwhile as businesses look to gain an edge over the competition, spending on data continues multiplying. With this in mind, global spending on big data analytics is expecting to reach over $215.7 billion, growing 10% from 2020.
Keep reading to find the best big data stocks leading the way with massive upside potential.
Top 6 Big Data Stocks
Have you ever wondered how Amazon (Nasdaq: AMZN) knows exactly what you need to add to your basket? Or how Netflix (Nasdaq: NFLX) suggests endless shows/movies of your liking? It comes down to superior data analytics.
In light of this, here are the top big data companies empowering this ability.
- Snowflake (NYSE: SNOW)
- Datadog (Nasdaq: DDOG)
- Palantir (NYSE: PLTR)
- Amazon (Nasdaq: AMZN)
- Alphabet (Nasdaq: GOOGL)
- Microsoft (Nasdaq: MSFT)
Now let’s see why these are the best big data stocks in 2022 and what you need to know about them.
No. 6 Snowflake
- Market Cap: 80.5B
- 1 Yr. Revenue Growth: 110%
- Percent Down from Highs: (-38%)
After one of the most highly anticipated IPOs ever, Snowflake did not disappoint, running to an ATH of $429. Yet Snowflake is now less than a third of the value after losing ground since mid-November.
The data storage and analytics company has several of the largest brands in the world as clients (Capital One, JetBlue, DoorDash) and continues expanding. Furthermore, the company offers an all-in-one solution, making it easy for businesses to use.
No. 5 Datadog
- Market Cap: 47.8B
- 1 Yr. Revenue Growth: 84%
- Percent Down from Highs: (-23%)
Datadog is another Wall Street favorite with its cloud monitoring platform. Rather than having tech issues wipe out valuable uptime, Datadog’s platform will track business networks in real-time. If a problem occurs, then it will alert the dashboard, allowing quick diagnoses.
Like Snowflake, Datadog is also a big enterprise favorite with clients including Peloton, Samsung and Whole Foods.
No. 4 Palantir
- Market Cap: 21.1B
- 1 Yr. Revenue Growth: 34%
- Percent Down from Highs: (-76%)
After the selloff, Palantir, one of the hardest-hit growth stocks, is struggling to find support. Sitting right above all-time lows, the software company finally looks at a fair value.
At the same time, Palantir’s unique product is helpful in several big markets. In fact, the company’s tech is being used for counter-terrorism purposes. If Palantir’s technology can detect enemy movements on the battlefield, then it can also help companies make better decisions in the boardroom.
No. 3 Amazon
- Market Cap: 1.49T
- 1 Yr. Revenue Growth: 9%
- Percent Down from Highs: (-22%)
I know what you’re thinking. How is an eCommerce retailer considered one of the best big data stocks? For one thing, the company collects a mind-boggling amount of information from all of its segments. There are endless amounts of information to analyze between Alexa (voice assistant), Ring (security cameras) and the Amazon marketplace.
The more information Amazon can gather, the better it can predict your interests. As a result, they can recommend personalized products while “building your basket.”
Most important, Amazon Web Services (AWS) leads the $180 billion cloud market with a 33% share. That said, in the fourth quarter, AWS accounted for 10% of net sales but over 50% of operating income.
Keep reading to find the best big data stocks for long-term growth.
No. 2 Alphabet
- Market Cap: 1.69T
- 1 Yr. Revenue Growth: 32%
- Percent Down from Highs: (-15%)
Google’s parent company, Alphabet, is well known for the amount of data it processes. For instance, Google alone processes over 3.5 billion searches a day, or in other words, +40,000 searches a second. The company is essentially the “gatekeeper” of the internet.
With this in mind, Google cloud controls the third-largest share of the global cloud market. Not only is Google a cloud leader, but it also maintains dominant control over video advertising with YouTube.
The company continues growing while becoming more profitable, with over $257 billion in revenue in 2021. Given these points, Google is well-positioned for growth as spending on digital advertising is expected to nearly double by 2025.
Big Data Stocks No. 1 Microsoft
- Market Cap: 2.11T
- 1 Yr. Revenue Growth: 20%
- Percent Down from Highs: (-19%)
Best known for its Windows and Office tools, Microsoft is the largest software company by value. But the company’s growing Azure controls the second-largest share of the cloud market at 21%, challenging AWS. Businesses from all corners of the world rely on Microsoft’s tools and technology.
Cloud revenue advanced another 32% YOY to $22.1 billion with a 70% gross margin. On top of this, Microsoft owns LinkedIn and Xbox, two leaders in rapidly growing gaming and social media markets.
And lastly, Microsoft’s recent buyout of Activision Blizzard will give the company access to a gold mine of titles. If anyone can turn the gaming firm into a revenue-generating machine, it will be Microsoft.
Is Now the Time to Buy Big Data Stocks?
The overall market is down the past few months with inflation soaring and the recent tension in Europe. The selloff is creating a buying opportunity to buy leaders for long-term growth.
Software stocks, in particular, are one of the worst-performing sectors after leading the market through the pandemic. The iShares Tech-Software ETF (IGV) is down 22% in the past six months compared to the S&P 500 (SPX), down only 5%.
Although markets will continue feeling the pressure in the short term, in the long run, these big data stocks are on track for growth. As companies collect more and more data, they will see the value in sorting through it effectively.
With this in mind, look for businesses to continue adopting data services from these top providers in the future.