Main offering: Public edge cloud platform that uses microdata centres close to the end … Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The best performing tech stock this year is an edge computing company. Fastly. You’ve heard of artificial intelligence, cloud computing, machine learning, 5G, Internet of Things and a host of other tech phrases that are legitimately disrupting how businesses and societies function. Cloud Computing Going Mainstream. By Wayne Duggan , Contributor Aug. 24, 2020 By Wayne Duggan , Contributor Aug. 24, 2020, at 3:23 p.m. Verizon (NYSE:VZ) is looking become an edge leader by pairing its ultra-fast 5G network based in dense urban centers -- which is in the early stages of deployment -- with its nation-spanning 4G network. Find out which stocks you should buy this month to make money even in this volatile market. Typically this data is relayed back to the cloud, the computationally expensive work is performed, and the results are sent back to the device. A turning point could likely come once it either sells off its ailing consumer services business or otherwise reorganizes it; regardless, its newer services catering to businesses need time to build momentum. For smaller investors, the right strategy now is to keep purchases small, average in, and focus on the best of the best … Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. The edge market was estimated between $1.7B to $7.9B in 2017, and is projected to grow to $16.5B to $43.4B between 2025 and 2027, producing a compound annual growth rate of between 11%-37%. The technology isn't new, but the advent of AI and other complex computing needs have boosted the demand for Xilinx's brand of silicon as of late. Verizon isn't exactly a high-growth company, but its move to the edge could help sustain its slow-and-steady pace, support a generous dividend that currently yields 4.3%, and further cement the wireless leader into the fabric of the internet. Cars, factories, phones, wearable devices and all other gadgets in the "smart" ecosystem receive data inputs and then must analyze all that information, and it's no small task to perform this seamlessly in real time. It has also recently partnered with private edge computing companies to continue to expand its services. However, as CEO Jayshree Ullal pointed out on a recent earnings call, the cloud was a new business segment for Arista at one point, too. CenturyLink has been announcing upgrades of its network geared toward businesses at a steady clip for some time, but this transition will require some patience. ... you can download 7 Best Stocks for the Next 30 Days. Get Your FREE REPORT. This year marks the beginning of the “data decade,” says Dell Technologies CEO Michael Dell. These 2020 Tech Outperformers Have Catalysts Coming in 2021, Why Upcoming IPO Roblox Could Become the YouTube of Gaming, 3 Tech Stocks That Could Soar, Even When There's a Coronavirus Vaccine, Copyright, Trademark and Patent Information. But the edge could help push the boundaries of what is possible in the next decade, and that makes it a trend worth digging into. Action Alerts PLUS is a registered trademark of TheStreet, Inc. For a detailed discussion as well as a more comprehensive list please see the top 10 cloud computing stocks to buy . Market data powered by FactSet and Web Financial Group. Don’t just take my word for it. I have what may be a new one for you, and it helps all those aforementioned technologies work: edge computing. And though growth of the cloud market shows no signs of letting up, a new related trend is only just beginning: the edge (not "The Edge" of U2 fame). Verizon and Amazon Web Services announced a new partnership on December 3, 2019 — 5G edge cloud computing — to help you build new applications, internet-of-things (IoT) … Mutable. Learn more now. Let's conquer your financial goals together...faster. Edge computing is quickly becoming a new category for cloud providers as they … Being ranked in the top 10 best performing stocks of the Cloud Computing sector, the company also succeeded in outperforming the returns generated by some of the popular stock … The technology is proliferating rapidly, and the estimations on its growth and market size vary widely, and all are bullish. That fact alone will give big investors pause. Those are all arbitrary figures, but here's the point: Much of the cloud is being relocated closer to the end users, and with it, incredibly powerful computing power that will pave the way to new services and further industry transformation. Pick Cloud-Software Stocks for Stellar Gains in 2020. As the current leader in telecom here in the U.S., I like the company's chances at maintaining that lead by using 5G to offer edge computing for the masses. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Market value: $8.3 billion. Not only will those computers multiply, they will collect exponentially rising amounts of data. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. The added online activity this drives towards Shopify will increase demand for Fastly's services. It’s grown revenues 39% and 38% YOY in each of the last two quarters, and is targeting 42% for the year. Pick Cloud-Software Stocks for Stellar Gains in 2020 We have, thus, zeroed down on four solid SaaS stocks that are worth a look next year. And it is investing proceeds from that highly lucrative ad business into a plethora of businesses like cloud computing, data science and analytics, autonomous vehicles and logistics, and connected entertainment -- all of which could benefit from a healthy dose of faster, lower-latency computing. Many data centers will be privately owned to support individual businesses'  operations, but not all of them. Cloudflare  (NET) - Get Report, which went public last September, is a content delivery network (CDN), web security, and infrastructure company. However, the rapid proliferation of connected devices in recent years, the rise of new processes like artificial intelligence, and the need for faster response times and real-time data monitoring have combined to create a demand for hubs that allow data to travel shorter distances. Cloud computing has been a big win for investors over the past decade, and it's still a double-digit growth investment motif. Want to be alerted before Cramer buys or sells these stocks? Fastly (FSLY, $80.11) is a content delivery network that ensures … However as data volumes and sophistication needs grow, the sending of information to cloud servers for processing, analysis, and storage and then sending them back when a command is made is untenable. Here's what the technology is and how you can capitalize on it. Though over 80% of Alphabet's revenues are derived from advertising, the tech giant has its hands in all sorts of cookie jars. Not only is the company's hardware and suite of software management tools open source and designed to be custom-fitted to the needs of its clients, it's leading the charge with faster network hardware, and has launched a new campus networking segment -- private data centers built onsite or near an office or facility to handle local computing needs. So how can you capitalize on this emerging tech? First, there's the construction of these edge data centers themselves. Thus, smaller localized data centers and technologies that allow for heavier lifting to be done at the device level are starting to emerge. Investors may be worried that increased scrutiny from antitrust regulators will put a damper on Alphabet's prospects, but that in itself is a reason for the search and advertising leader to keep its foot on the gas when it comes to innovation. Get My Report. The Covid-19 shutdowns and work-from-home trends have only accelerated this trend. With many of its subsidiaries and strategic investments dependent on a faster internet and higher-level computing power, the edge could help accelerate the development of Alphabet's portfolio of new ventures and boost profits as they grow. Now it's the company's bread-and-butter. Massive data centers deployed by the likes of Amazon, Microsoft, and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) provide enormous amounts of computing power for businesses. 5 Stocks That Could Benefit From the Edge Computing Revolution The cloud is moving much closer to you, and the trend could deliver major profits for the companies that power and … Almost everything we use on a daily basis has a computer in it, and as the Internet of Things permeates every facet of our lives, that will only accelerate. © 2020 TheStreet, Inc. All rights reserved. This is a high-level overview of edge computing and the businesses that could benefit as a result of its development, so investors should do their own due diligence and research before buying any of the stocks mentioned. Cloud Computing And Top Cloud Stocks Fair Isaac Joins Long-Term Leaders As Member No. As the burgeoning wave of edge computing spreads, hardware suppliers are a good place to start a search for investments, and both Arista Networks and Xilinx look likely to benefit in the years ahead. Best Cloud Computing Stocks to Watch In December: Fastly. Hewlett Packard Enterprise  (HPE) - Get Report has made a $4 billion investment into its edge network, and IBM  (IBM) - Get Report and Cisco  (CSCO) - Get Report are emphasizing it as well. Cumulative Growth of a $10,000 Investment in Stock Advisor, 5 Stocks That Could Benefit From the Edge Computing Revolution @themotleyfool #stocks $GOOGL $VZ $LUMN $XLNX $GOOG $ANET $MSFT $AMZN $CSCO $IT, Got $3,000? These stocks flaunt a Zacks Rank #2 (Buy). Many of the megacap names you may already own such as Microsoft  (MSFT) - Get Report, Amazon  (AMZN) - Get Report and Alphabet  (GOOGL) - Get Report will be integral to edge computing as they incorporate it into their IoT platforms. There are a lot of other companies that could get a big boost from incorporating edge computing into their operations, and one article is not enough to cover them all. If you want more explicit exposure to the edge, there are two smaller names that have had parabolic moves as of late that deserve your attention. These stocks flaunt a Zacks Rank #2 (Buy). However these aren’t very direct plays. Stock Advisor launched in February of 2002. Its legacy consumer communications business is to blame for its current woes, as the cord-cutting trend continues, but management is looking for strategic alternatives elsewhere that could deliver growth, and in that effort, it's investing in over 100 edge centers around the country.