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The COVID-19 pandemic dramatically changed the landscape of American business, forcing millions of Americans to work out of their homes due to the nationwide lockdown.
According to surveys from MIT and Gallup, more than 60% of Americans — maybe even you — are working out of their home. Wow!
Working from home might be a new reality for millions, but I’ve been working out of a home office since the early 1990s. And I wouldn’t have it any other way.
Besides the convenience, telecommuting offers investors several opportunities.
With every major business change, there will be winners as well as losers. Just like cars and refrigerators killed the business of buggy whip makers and ice vendors, the same is true about the work-at-home revolution.
And one winner in this trend is the expansion of data stored on the cloud.
Just look at the latest quarterly results from the three largest cloud storage companies in the U.S.: Google, Amazon (AMZN) and Microsoft (MSFT).
- Google (owned by parent company Alphabet (GOOGL)) is a distant third in cloud market share, but its Google Cloud division still pulled in $2.8 billion of revenues in the first 90 days of 2020. That’s a whopping 52% year-over-year increase.
- Amazon Web Service, or AWS, has the second largest cloud platform and has pulled in $10 billion in revenue for the first time, representing annual growth of 33%.
- Market leader Microsoft reported a gangbuster quarter of $10.8 billion of profits on $35 billion of revenues. Microsoft’s cloud division was responsible for $13.3 billion of revenues, an impressive 39% year-over-year increase.
Look, these three tech giants pulled in more than $23 billion in just 90 days. On an annualized basis, you’re looking at $100 billion a year!
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The overall cloud market, according to a new forecast from Synergy Research Group, is estimated to reach $29 billion in the first quarter, a 37% year-over-year increase.
That means the big three — Google, Amazon and Microsoft — are hogging 82% of the global cloud market and that unless you own one of those three tech giants, you are missing out on the gangbuster growth of the cloud market.
I can also tell you that my Weiss Crypto Investor subscribers already own two out of those three and are sitting on some fat open profits.
That doesn’t mean you should rush out and buy Google, Amazon or Microsoft tomorrow morning, but you darn well better put them on your “watch list” to buy when they go on sale.
That’s exactly what I am going to do for my subscribers.
Best wishes,
Tony Sagami
