3 High-Growth Cloud Computing Stocks to Buy on the Dip

Core Viewpoint - High-growth cloud computing stocks are currently trading at significant discounts, presenting potential buying opportunities despite bearish sentiment in the tech sector [1] Group 1: CrowdStrike (CRWD) - CrowdStrike provides cloud-based cybersecurity solutions and has faced challenges due to a software bug causing IT outages, leading to a nearly 40% stock drop in July [2][3] - Despite the setback, analysts have mixed views; Wells Fargo maintains an overweight rating with a reduced price target of $350, while Piper Sandler holds a neutral rating with a $310 target [2] - CrowdStrike's Q1 2025 earnings showed a record net new annual recurring revenue (ARR) growth of 22% year-over-year, with ending ARR at $3.65 billion, but potential lawsuits from affected customers could impact financials [3] Group 2: Nutanix (NTNX) - Nutanix provides cloud computing software for hybrid and multi-cloud deployments, reporting Q3 fiscal 2024 revenue growth of 17% year-over-year to $525 million and a 24% increase in ARR to $1.82 billion [5][6] - The stock has pulled back around 35% from its highs, presenting an attractive entry point, with a forward earnings valuation of 39 times and a forward sales multiple of 5.4 times [5] - Management noted increasing interest from large enterprise customers, although sales cycles are elongating, indicating potential for future growth [6] Group 3: Arista Networks (ANET) - Arista Networks provides cloud networking solutions and reported Q2 2024 revenue growth of 15.9% year-over-year to $1.69 billion, with non-GAAP EPS of $2.10, beating estimates by 16 cents [7] - The stock has seen a 13% pullback from its highs, suggesting a buying opportunity for long-term investors [7] - Collaboration with Nvidia on AI networking positions Arista to benefit from customer AI infrastructure investments by 2025, making it an interesting stock to consider [8]