-0.33%
last session
Amazon's push into custom AI chips and expanding AWS AI services is driving the stock higher, supported by Buffett'...
Sourcefool.com - Jun 7
Theme Performance
How Cloud Software is trading against SPY and QQQ
See which stocks are driving the theme and how the basket performs relative to the broader market.
Track Cloud Software Stocks without checking every day
Weekly updates on performance, valuation changes, and key movers.
What Changed Recently in Cloud Software Stocks
Theme Breakdown
Cloud Software Stocks Composition
Explore how the Cloud Software Stocks universe is distributed across key business segments.
Composition last reviewed
As of Jun 1, 2026
Categories reflect each company's primary theme role. Some companies may have exposure to multiple segments.
Theme Overview
Why segmentation matters
See how the theme breaks down across business segments and where concentration risk lives.
Selected Stocks
33
in theme
Total Market Cap
$12.53T
combined
Highly Concentrated
The top 2 segments (Hyperscale Platforms & Enterprise SaaS & AI Applications & Other segments) represent 90.3% of this theme by market cap.
Top Cloud Software Stocks Stocks
Top Cloud Software Stocks Stocks by Segment, Performance, and Valuation
GOOGL
Alphabet Inc.
Price$363.31
Mkt Cap-
YTD+15.3%
Rev G17.5%
MSFT
Microsoft Corporation
Price$411.77
Mkt Cap-
YTD-12.9%
Rev G17.9%
AMZN
Amazon.com, Inc.
Price$245.22
Mkt Cap-
YTD+8.3%
Rev G14.2%
ORCL
Oracle Corporation
Price$211.80
Mkt Cap-
YTD+8.2%
Rev G14.9%
PLTR
Palantir Technologies Inc.
Price$136.47
Mkt Cap-
YTD-18.7%
Rev G67.7%
APP
AppLovin Corporation
Price$563.69
Mkt Cap-
YTD-8.8%
Rev G40%
PANW
Palo Alto Networks, Inc.
Price$266.24
Mkt Cap-
YTD+48.4%
Rev G19.5%
CRWD
CrowdStrike Holdings, Inc.
Price$658.79
Mkt Cap-
YTD+45.2%
Rev G23.2%
CRM
Salesforce, Inc.
Price$182.55
Mkt Cap-
YTD-28%
Rev G11%
NOW
ServiceNow, Inc.
Price$114.19
Mkt Cap-
YTD-22.6%
Rev G21.7%
| # | Chart (YTD) | |||||||
|---|---|---|---|---|---|---|---|---|
| 1 | GOOGL Alphabet Inc. | $363.31 | $4.4T | +15.3% | -9.3% | 33.6 | 17.5% | |
| 2 | MSFT Microsoft Corporation | $411.77 | $3.06T | -12.9% | -0.8% | 30.2 | 17.9% | |
| 3 | AMZN Amazon.com, Inc. | $245.22 | $2.64T | +8.3% | -10.1% | 34.2 | 14.2% | |
| 4 | ORCL Oracle Corporation | $211.80 | $608.91B | +8.2% | +8.1% | 48.8 | 14.9% | |
| 5 | PLTR Palantir Technologies Inc. | $136.47 | $312.72B | -18.7% | -1% | 216.6 | 67.7% | |
| 6 | APP AppLovin Corporation | $563.69 | $189.37B | -8.8% | +20.3% | 57.8 | 40% | |
| 7 | PANW Palo Alto Networks, Inc. | $266.24 | $181.45B | +48.4% | +28.1% | 166.4 | 19.5% | |
| 8 | CRWD CrowdStrike Holdings, Inc. | $658.79 | $167.69B | +45.2% | +24.8% | -1013.5 | 23.2% | |
| 9 | CRM Salesforce, Inc. | $182.55 | $149.51B | -28% | +0.4% | 23.4 | 11% | |
| 10 | NOW ServiceNow, Inc. | $114.19 | $118.32B | -22.6% | +25.2% | 68.4 | 21.7% |
Showing 10 of 33 stocks
Daily Intelligence
Yesterday in Cloud Software Stocks
Key headlines and stock-level movers from the last trading session.
Last session recap is current.
End-of-day analysis published after market close. Next update after Jun 9, 2026 market close.
Session Brief
Jun 8, 2026Cloud software is driven by AI chip development from Amazon, Alphabet, and Microsoft, boosting Nvidia and related AI memory stocks. SaaS leaders like Salesforce, ServiceNow, and DocuSign face mixed earnings outlooks; DocuSign’s cautious guidance contrasts with Palantir’s expected double‑digit gains. Oracle’s quantum‑blockchain progress fuels a $553B backlog, while CrowdStrike’s earnings beat sparks a sell‑off.
Key Drivers
Stock-level moves behind the theme
Sentiment reflects catalyst narrative, not price direction - a stock can close lower while the fundamental driver is bullish.
-2.33%
last session
DOCU shares fell after Q1 earnings beat, but management's cautious outlook and weak guidance weighed on sentiment.
Sourcefool.com - Jun 8
-0.76%
last session
Fresh EOD news and price action made this stock a theme driver.
+0.69%
last session
Fresh EOD news and price action made this stock a theme driver.
Sourcefool.com - Jun 8
-0.62%
last session
Fresh EOD news and price action made this stock a theme driver.
Sourcezacks.com - Jun 4
Updated after market close
Jun 8, 2026
Valuation Pulse
Are Cloud Software Stocks cheap or expensive right now?
DCF valuations and Wall Street ratings across the theme.
Data as of Jun 8, 2026 (EOD)
33 stocks in theme - 21 with full coverage
DCF Valuation
(Intrinsic Value)21
of 33
covered
Undervalued
5(24%)
Fair Value
2(10%)
Overvalued
14(67%)
Top DCF Upside (Undervalued Only)
View all
Wall Street Consensus
(Price Targets)33
of 33
covered
Buy / Strong Buy
27(82%)
Hold
6(18%)
Sell / Strong Sell
0(0%)
Coverage Snapshot
Consensus is based on 33 stocks with analyst price targets. DCF analysis is based on 21 stocks with intrinsic value estimates.
Valuation Distribution
(33 covered stocks)Theme Valuation Score
2.6
Fair
Scale: 1 (Cheap) to 5 (Expensive)
1
Bargain
7 stocks (21%)
>= +30%
2
Cheap
7 stocks (21%)
+10% to +30%
3
Fair
13 stocks (39%)
-10% to +10%
4
Expensive
4 stocks (12%)
-25% to -10%
5
Very Expensive
2 stocks (6%)
<= -25%
Valuation score blends Wall Street target upside at 65% weight and DCF upside at 35% weight when both are available; single-source covered stocks use the available signal. Higher score means more expensive.
Earnings Calendar
Upcoming Earnings in Cloud Software Theme
Companies reporting in the next 30 days. Earnings dates and estimates can change as reports approach.
| Company | Reports | Timing | Est. EPS | Est. Revenue |
|---|---|---|---|---|
 GTLBGitLab Inc. | Tue, Jun 9 | After Close | $0.21 est. | $254M est. |
 ORCLOracle Corporation | Wed, Jun 10 | After Close | $1.96 est. | $19.1B est. |
 ADBEAdobe Inc. | Thu, Jun 11 | After Close | $5.83 est. | $6.46B est. |
Estimates are based on available consensus data. BMO = Before Market Open, AMC = After Market Close.
Research & Methodology
How to evaluate Cloud Software Stocks
Methodology, investment thesis, and key risks for this theme.
How we evaluate these stocks
Our methodology
We focus on recurring revenue, expansion, margins, cash flow, and the durability of software demand. AI features matter when they support retention, pricing, or workflow depth.
- Revenue growth and net retention quality
- Gross margin and free cash flow conversion
- Rule-of-40 style balance between growth and profit
- AI monetization must be visible, not just claimed
- Valuation is checked against growth durability
Investment thesis
Why this theme exists
Cloud software companies can scale with high margins when they become core systems of record or workflow. The best names turn customer expansion and AI features into durable revenue growth.
- Subscription models can create predictable revenue
- Expansion inside existing customers supports compounding
- AI features can raise product value
- Workflow depth can improve retention
- High gross margins can drive operating leverage
Key risks
What could go wrong
Cloud software valuations can compress quickly when growth slows. Budget pressure, weaker net retention, platform competition, and AI commoditization can all damage the thesis.
- IT budget pressure can lengthen sales cycles
- Net retention can fall as customers optimize spend
- Premium P/S multiples are vulnerable to guidance cuts
- Large platforms can bundle competing features
- AI features may not translate into pricing power
FAQ
Frequently asked questions
Common questions investors have about the Cloud Software Stocks theme.
01What are cloud software stocks?
Cloud software stocks are companies selling SaaS, data platforms, infrastructure software, developer tools, cybersecurity software, automation tools, or AI-enabled application software.
02How is this different from AI stocks?
AI stocks include chips, cloud, platforms, and adoption beneficiaries. This theme focuses on the software and application layer.
03What makes a cloud software stock high quality?
High-quality software companies usually show durable revenue growth, high gross margins, strong retention, improving free cash flow, and enough pricing power to protect margins as they scale.
04What valuation metric matters most?
For profitable software companies P/E and FCF yield matter. For faster-growing or less profitable names, P/S and revenue growth are often more useful starting points.
05Are cloud software stocks high risk?
They can be. Recurring revenue is attractive, but high valuations can make the group volatile when growth slows, IT budgets tighten, or AI features fail to produce pricing power.
Related Themes
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Curated theme paths that share catalysts, supply chains, or investor workflows with this page.
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