The "big data" revolution will help enterprises simplify their operations like never before. But just like the dot-com boom, not all big data stocks will end as winners.
Big Data is a data collection that is both large and complicated, to the point that typical data processing programs are unable to deal with it effectively.
Big Data is defined by the 3V model, which stands for "high volume," "high velocity," and "high variety." There are several issues associated with handling such a large amount of data, including data gathering, storage, analysis, data transport, and data sharing, among other things.
The phrase "big data" is continually being redefined as people worldwide adopt new technologies and solutions that are data-driven and analytics-driven.
Initially, the term "big data" was used to refer to datasets that exceeded the size of a standard database. But big data has evolved to encompass a collection of technologies for capturing, managing, and analyzing large datasets in order to uncover patterns, trends, and associations that can be used to make more informed business and policy decisions. Big Data refers to the massive amounts of data that daily flood a firm, coming from an ever-growing range of sources. Additionally, it frequently refers to data volumes that are too large for traditional data processing software tools to acquire, process, and curate in a timely manner.
The data collection and creation process is facilitated by various sources, including wholesale or retail transactions, e-commerce data, shipping, audio and video logs, text messaging, internet search queries, satellite imagery, GPS data, and stock market activity financial transactions. Additionally, data from the Internet of Things are flowing in.
Big Data companies can approach the market in a variety of ways and specialize in specific sectors due to the massive amounts and diverse sorts of data acquired.
According to Markets and Markets, the global big data industry is predicted to develop at a compound annual growth rate of 11% between 2021 and 2026, reaching a value of US$273.4 billion, indicating sufficient potential for investors to profit from big data stocks.
The firm attributes this anticipated rise to causes such as "falling technology costs and the growth of open-source big data software frameworks," data connectivity via hybrid and multi-cloud environments, and the incorporation of digital transformation into top-level initiatives.
Big data companies are pursuing transformative technologies in areas such as data storage, network, and content delivery platforms, security, cloud computing, the Internet of Things (IoT), machine learning, and predictive analysis present growth opportunities for investors willing to enter this complex market.
How Is Data Analytics Defined?
Data analytics is the process of extracting and analyzing a variety of different types of data in order to develop conclusions about them. Additionally, it identifies previously unknown patterns or connections within the data and upcoming market trends and client preferences.
However, data analytics is not limited to Big Data. For example, data analytics can refer to any sort of processing that analyzes data, but as organizational data expands in size, the phrase data analytics is developing to emphasize systems capable of handling Big Data.
Additionally, the discipline of data analytics is rapidly expanding, driven by the market need for systems that can withstand the rigors of Big Data.
The market as a whole has been down in recent months due to rising inflation and current tensions in Europe. The selloff is offering an opportunity to acquire long-term growth leaders.
After leading the market through the epidemic, software stocks, in particular, have been one of the worst-performing sectors. The iShares Technology-Software ETF (IGV) is down 22% over the last six months, while the S&P 500 (SPX) is down only 5%.
Although markets will remain under pressure in the medium term, these big data stocks are poised for long-term development. As companies amass more data, they will recognize the value of correctly classifying it.
Keeping this in mind, businesses will likely continue to embrace data services from these leading providers in the future.
1. Alphabet (NASDAQ:GOOGL)
Alphabet is the holding company behind Google, the world's largest search engine, and operates through a portfolio of companies under numerous brands. Calico, GV, Capital G, Verily, Waymo, X, and Google Fiber are just a few of the companies that make up Alphabet. As such, it's unsurprising that Alphabet is a big player in the field of big data.
Google BigQuery, Google Cloud Datalab, and Google Cloud Dataproc are three of Alphabet's big data platforms, and each of these products is powered by Google Cloud Machine Learning. BigQuery is an analytics-focused cloud data warehouse, whereas Cloud Datalab provides an interactive platform for data exploration.
Alphabet is bringing its big data and robotics expertise to the agricultural sector in an effort to improve global food sustainability. "Much like Google began indexing and organizing the world wide web, the team at Alphabet X is now considering the possibility of measuring the data of each plant in a field," TechHQ stated.
2. MongoDB (MDB)
MDB is a great pick for investors interested in big data stocks. In February 2021, the stock reached a high of approximately $429 and had since corrected to around $307 at the time of posting. This appears to be an excellent opportunity for new exposure. According to analyst projections, the average price objective is $381.38, and this implies a 24.2 percent increase from current levels.
MongoDB is a general-purpose database platform. At the moment, the organization serves 24,800 consumers in more than 100 countries. The database market for the corporation is one of the largest in the software industry. Additionally, it is predicted to reach $97 billion in FY2023. This gives the organization a big growth opportunity.
For the fiscal year 2021, the company recorded revenue of $590.4 million, a 40% increase year over year. The corporation has forecast sales of $755 million for the current fiscal year (mid-range of guidance). The stock is favorable due to the company's impressive top-line growth.
The company announced cooperation with Tencent's (OTCMKTS: TCEHY) Tencent Cloud in the fourth quarter of 2021. This will enable users to utilize MongoDB as a Service throughout Tencent's global cloud infrastructure. Additionally, during the quarter, the company increased its cooperation with Alphabet's (NASDAQ: GOOG, NASDAQ: GOOGL) Google Cloud.
Strong growth is anticipated to be sustained through aggressive client acquisition and partnerships. These features make MDB stock a good candidate for accumulation during corrections.
3. New Relic, Inc. (NYSE: NEWR)
New Relic, Inc. (NYSE: NEWR) is a cloud-based software firm that provides a platform for planning and running software globally. The platform, New Relic One Platform, provides users with a variety of tools for analyzing telemetry data within their applications. The company is ranked eighth on our list of the top data stocks to purchase right now.
The company reported adjusted earnings per share of $0.15 for the fiscal first quarter, compared to estimates of $0.03 and revenue of $162.59 million. Revenue increased by 11.37 percent year over year. Additionally, New Relic, Inc. (NYSE: NEWR) had a gross profit margin of 72.81 percent and has increased its revenue by 3.47 percent in the last six months and 13.71 percent year to date.
By the end of the first quarter of 2021, 27 of the 886 hedge funds monitored by Insider Monkey held New Relic, Inc. shares (NYSE: NEWR). Their stakes were worth approximately $1.14 billion.
Teradata Corporation (NYSE: TDC), along with Netflix, Inc. (NASDAQ: NFLX), Hulu, Uber Technologies, Inc. (NYSE: UBER), Alphabet, Inc. (NASDAQ: GOOG), Salesforce.com, Inc. (NYSE: CRM), Oracle Corporation (NASDAQ: ORCL), and Airbnb, Inc. (NASDAQ: ABNB), is one of the top data stocks to purchase right now.
4. Splunk Inc
Splunk Inc. develops and markets software solutions that enable enterprises to gather real-time operational insight in the United States and globally. Splunk Inc., founded in 2003, is based in San Francisco, California.
Splunk Enterprise is a real-time data platform that includes data collecting, indexing, search, reporting, analysis, alerting, monitoring, and data management. Splunk Cloud is a cloud-based service for machine data.
Additionally, it offers Splunk Enterprise Security, which addresses security threats and information, as well as event management use cases; SignalFx, which enables real-time monitoring and troubleshooting of cloud infrastructure and applications; Splunk IT Service Intelligence, which monitors the health and key performance indicators of critical IT and business services; Splunk Phantom, which automates and orchestrates incident response workflows; and VictorOps, which enables collaboration and IT issue resolution.
Additionally, the company offers the Splunk App for Amazon Web Services, which collects and analyzes data from Amazon Web Services data sources; the Cisco Firepower App for Splunk, which integrates advanced visualizations and investigative capabilities for Cisco Firepower and Firepower Management Console; the Splunk Machine Learning Toolkit, which includes custom visualizations and guided workflows; and the Splunk Connected Experiences, which provides access to data, alerts, and actions on mobile devices.
Additionally, the company provides application programming interfaces and software development kits, as well as maintenance and customer support, training, consulting, and implementation services. Additionally, the company operates the Splunkbase and Splunk Answers websites.
5. SAP (SAP)
SAP may appear to be an unexpected option in light of the company's recent troubles. SAP recently reversed course on financial expectations, causing the company's shares to plunge. Indeed, in the last week, its shares have fallen from $150 to about $105 per share. This precipitous decline was triggered by SAP's downward revision of its sales forecast. Nonetheless, SAP cut its projection for the remainder of the year by between 2.16 percent and 2.46 percent.
This is not to minimize the company's difficulties but to suggest that the market's reaction may have been exaggerated. SAP is unquestionably risky at the moment, but as a contrarian bet with a lot of big data know-how, it is worthwhile.
SAP's Predictive Analytics solution is an excellent illustration of how big data may be used. Predictive analytics enables businesses and people to better interpret data and make intelligent guesses. SAP Predictive Analytics is flexible to the data of individual companies, enabling businesses to obtain insight into future expectations across the enterprise.
Despite current enterprise software worries, the company has a plethora of analytics products and will rebound.
6. Cloudera Inc. (CLDR)
CLDR is another example of a big data stock that has retreated from its recent highs. The stock is currently trading at $12.50, down from a high of $19.35 earlier this year. The stock is attractive at a forward price-to-earnings (P/E) ratio of 32.9.
Cloudera is a provider of enterprise data cloud software and public cloud services. In plain English, the organization converts complex data into useful insights.
The company recorded revenue of $869.3 million for the fiscal year 2021. Notable is the $778 million in annually recurring revenue. The corporation anticipates recurring revenue of $827 million for the fiscal year. With consistent top-line and recurring revenue growth, the company appears well-positioned to generate healthy cash flows.
Cloudera's Cloudera Data Platform (CDP) is a potential growth engine in the future. The number of consumers shifting to CDP has increased significantly. Additionally, this is likely to benefit the company's annual recurring revenue.
Cloudera announced in March 2021 that the Cloudera Data Platform would be offered on Google Cloud. The company has already provided CDP Public Cloud capabilities to Amazon Web Services (NASDAQ: AMZN) and Microsoft Azure (NASDAQ: MSFT). Additionally, the company has teamed with Nvidia (NASDAQ: NVDA) to speed up cloud-based data analytics and artificial intelligence (AI).
7. International Business Machines Corporation (NYSE: IBM)
IBM (NYSE: IBM) is a global integrated solutions and services provider. The company's Cloud and Cognitive Software sector develops software for domain-specific solutions across a variety of industries. The company is ranked fourth on our list of the top data stocks to purchase right now.
This June, IBM (NYSE: IBM) announced a five-year agreement with the UK's Hartree Centre research facility to develop the Hartree National Centre for Digital Innovation. The alliance is valued at more than $290 million.
Credit Suisse added IBM to its list of top picks for 2021 earlier this month. According to the organization, these stocks combine "the strongest conviction with the least demanding market expectations."
By the first quarter of 2021, 41 of the 866 hedge funds monitored by Insider Monkey had positions in International Business Machines Corporation (NYSE: IBM). Their stakes were worth approximately $1.36 billion.
8. Alteryx
Alteryx, Inc. is a global provider of end-to-end analytics solutions for data analysts and scientists. Alteryx, LLC was the company's previous name until March 2011, when it changed to Alteryx, Inc. Alteryx, Inc., headquartered in Irvine, California, was formed in 1997.
Among Alteryx's products are Alteryx Designer, a product for data profiling and preparation, blending, and analytics; Alteryx Server, a server-based product for scheduling and running analytical processes and applications in a Web-based environment. Alteryx Connect, a collaborative data exploration platform for discovering information assets and sharing recommendations across the enterprise; and Alteryx Workflow, a tool for creating visual workflows or analytic processes.
Additionally, the firm offers Alteryx Analytics Gallery, a cloud-based collaboration tool that enables users to share workflows in a centralized repository, and Alteryx Community, which enables users to obtain useful insights into the company's platform.
Additionally, it provides technical assistance, training, and customer service.
9. Palantir (PLTR)
Palantir recently completed its initial public offering (IPO) one month ago. As a publicly-traded company, it is thus relatively new. During that time period, the stock has neither increased nor decreased in value. The initial public offering was priced at $9.50, and shares are currently trading at $10.13. On Nov. 12, the company will report third-quarter earnings, which should offer investors with additional context.
The company previously stated that it anticipates revenue of between $278 and $280 million, and this would represent a 46 to 47 percent year-over-year gain. The business anticipates sales of between $1.05 billion and $1.06 billion for the full year, a 41 percent to 43 percent year-over-year growth.
Palantir develops enterprise data solutions and earns almost half of its income from the federal government. To that goal, the business announced a $91 million contract with the Army to research artificial intelligence and machine learning. The US Army will utilize Palantir's Gotham and Foundry projects throughout the two-year initiative.
Whether or if PLTR stock appreciates it remains to be seen in the long run. However, it appears to be an excellent firm to follow for investors with an interest in the intersection of defense and big data and a penchant for contrarian companies.
10. Workiva Inc. (WK)
In Ames, Iowa, WK delivers cloud-based compliance and regulatory reporting solutions globally through its subsidiaries. Thousands of organizations worldwide rely on it to simplify complex work with its open, intelligent, and intuitive platform for connecting data, papers, and teams.
"We continue to expand on our market leadership and the rising need for financial and ESG reporting solutions that enable digital transformations," Marty Vanderploeg, CEO, stated on Nov. 3, 2021.
For the fiscal third quarter ended Sept. 30, 2021, WK's subscription and support revenue increased 30.4 percent year over year to $98.91 million. Non-GAAP net income was $8.71 million, up 251.6 percent year over year, and non-GAAP earnings per share were $0.15, up 200 percent year over year.
Analysts forecast WK's fiscal 2022 revenue to be $531.34 million, up 20.8 percent year over year. In three of the last four quarters, the company's earnings per share were above Street projections. The stock has risen 10% in value over the last year, closing Friday's trading session at $110.97. Wall Street experts forecast that the stock will reach $169.25 in the near term, implying a potential 52.5 percent gain.
Final Remarks
By integrating big data corporations and analytics technology, businesses can gain tremendous insights into a range of sectors. This requires comprehensive customer research, product development, cost management, and competition analysis. Additionally, Big Data provides operational information, which enables firms to investigate, monitor, assess, and adapt to changing conditions. Data analytics has a huge impact on firms in virtually every area and is crucial in the formulation of their success strategies. We have examined the top Big Data companies in this post. This is not an exhaustive list; there are numerous other companies that are still in their infancy but have the potential to expand rapidly.
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