Global X Cloud Computing ETF: Grow Old With Me (NASDAQ:CLOU)

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You have to maintain the balance between fast growth and smooth growth. It’s like driving a car and knowing when to balance the gas pedal and the brake. – Guo GuangchangCOVID-19 triggered a massive rally in tech stocks since March 2020, including cloud technology stocks (SaaS, PaaS, etc.). But now, clarity is emerging on virus containment. Pfizer (PFE) and Moderna (MRNA) have announced successful vaccines and it seems that it will be a matter of time before the virus is contained. Despite the runaway rally in techs, Global X Cloud Computing ETF (CLOU) gained a modest 61% since its inception in December 2019. The buzz these days is that because the virus will be contained soon, investors are likely to dump techs and move to value stocks. With sector rotation taking place, is it wise to invest in CLOU at its current price of about $24 as of November 16, 2020? Here is my analysis: Cloud Computing’s X Factor Virus or no virus, the cloud computing sector is estimated to grow at a CAGR of 17.5% between 2020 and 2025. Sure, COVID-19 increased the rate of cloud technologies adoption, but it doesn’t mean that the sector is entirely dependent on COVID-19 for growth. Source: Markets & Markets The reasons why …

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