3 Must-Own AI, Cloud, and Data Stocks to Buy for the Long Haul

Group 1: Market Overview - AI, cloud, and data stocks have experienced significant growth, driven by expanding data segments and strong market demand [1] - Caution is advised regarding certain AI, cloud, and data stocks with inflated valuations, as they may face substantial declines [1] Group 2: Company Analysis - Automatic Data Processing (ADP) - ADP is a leading provider of human capital management solutions, benefiting from a strong job market and increased hiring [2] - In Q3 FY2024, ADP reported a revenue growth of 6.6% and adjusted earnings per share growth of 14.3% [2] - The company's investments in technology and AI capabilities, such as ADP Assist, are enhancing client retention and positioning ADP for future growth [2][3] Group 3: Company Analysis - SPS Commerce (SPSC) - SPS Commerce specializes in cloud-based supply chain solutions, achieving a revenue growth of 19% year-over-year, totaling $149.6 million [4] - The company has established long-term partnerships, contributing to consistent revenue and stock performance [5] - Analysts project annual revenue growth of around 15%, indicating a positive outlook for the company's stock [5] Group 4: Company Analysis - Data Storage Corporation (DTST) - Data Storage Corporation provides cloud storage and IT management services, with a revenue growth of 19.7% year-over-year, reaching $8.2 million [6] - The company's gross profit margin improved from 30% to 36%, showcasing a scalable business model [6] - Recent strategic moves, including consolidating their cloud division and securing major contracts, position Data Storage for continued growth [7]