The recent weakness in tech stocks made many investors question the true strength of cloud stocks, but not CNBC’s Jim Cramer.
“The answer from pretty much everyone in the industry is the same. It’s simple: the idea that the cloud has reached saturation is absurd,” the “Mad Money” host said. “If anything, given the prevalence of older forms of storing data — expensive on-premise servers that are more costly and have less analytics horsepower than the cloud — I bet we could have years of growth ahead of us.”
Cramer said that only 10 percent of U.S. companies have adopted the cloud, which proves that the industry is nowhere near saturation. In China, cloud adoption is more like 2 to 3 percent.
“After all my canvassing, I come back and say that while there might be some speed bumps in cloud adoption, we’re still very much at the beginning of a massive long-term shift, one that’s growing faster than anything else in tech, which is why I like so much Amazon, and I like so much Microsoft, and I like so much Alphabet,” Cramer said. That’s why I’d use the weakness to buy every one of those and nearly everything else in the cloud food chain.”