What are the top big data stocks? Here’s an overview of 10 top companies that investors may want to consider.
The definition of big data is being redefined each and every single day as we adopt new technologies and new products based on data collection and analytics.
Originally the term “big data” was simply used to describe datasets whose size went beyond that of a traditional database. However, the definition of big data has evolved to encompass a set of technologies designed to capture, manage and analyze complex datasets to better understand patterns, trends and associations for better business and policy decisions.
The global big data market is expected to grow at a compound annual growth rate of 10.6 percent between 2020 and 2025, according to Markets and Markets, to reach a value of US$229.4 billion — that means there are ample opportunities to cash in on big data stocks.
The research firm attributes this upcoming big data growth to factors such as “the increasing awareness of Internet of Things (IoT) devices among organizations, increasing availability of data across the organization to gain deeper insights to remain competitive, and increasing government investments in various regions for enhancing digital technologies.”
Big data companies pursuing transformational technologies such as data storage, network and content delivery platforms, machine learning and predictive analysis offer growth opportunities for investors.
With that in mind, Investing News Network has gathered the 10 top big data companies covered in Markets and Markets’ report on the big data industry. The big data stocks below are listed in order of market cap size from largest to smallest, with all numbers and figures current as of market close on November 30, 2020.
1. Microsoft (NASDAQ:MSFT)
Market cap: US$1.62 trillion; current share price: US$214.07
Taking the first spot on this top big data stocks list is major tech company Microsoft. It offers tools similar to its rivals, but goes a step further in letting users access and analyze data with familiar tools like Excel.
Microsoft describes its HDInsight solution as a cost-effective, enterprise-grade service for open-source analytics. According to the company, it can run popular open-source frameworks like Apache and Hadoop, and enables customers to gain insights from both structured and unstructured data.
In late 2020, Microsoft announced a big data alliance with several life science and tech companies, including genomics researcher Illumina (NASDAQ:ILMN), synthetic DNA company Twist Bioscience (NASDAQ:TWST) and computer memory firm Western Digital (NASDADQ:WDC). Together the companies plan “to spin digital data into DNA itself to archive information in the arrangement of its molecules.”
2. Amazon (NASDAQ:AMZN)
Market cap: US$1.59 trillion; current share price: US$3,168.04
Founded in 1994, Amazon has evolved from its online retail shopping platform to become a tech giant through its Amazon Web Services (AWS) platform.
AWS helps users build and deploy big data analytics applications with the ability to scale up any big data application, including data warehousing, clickstream analytics and IoT processing. The company claims that its AWS platform is the most complete solution for big data. Like many others on this list, AWS uses machine learning to help its consumers harness big data.
3. Alphabet (NASDAQ:GOOGL)
Market cap: US$1.19 trillion; current share price: US$1,754.40
Alphabet is the holding company of internet search giant Google, and operates through multiple brands with a portfolio of companies dealing with investments to acquisitions. Some of the companies under Alphabet include Calico, GV, Capital G, Verily, Waymo, X and Google Fiber. As such, it’s no surprise that Alphabet ranks high on this top big data stocks list.
The product page of Google Cloud Big Data welcomes users with the line, “Drive Innovation with Google Cloud Smart Analytics Solutions,” and it’s hard to argue given the products at Google’s disposal.
Google’s big data is powered by Google BigQuery, Google Cloud Datalab and Google Cloud Dataproc, and behind each of these products is Google Cloud Machine Learning. BigQuery is a cloud data warehouse for analytics, while Cloud Datalab is an interactive tool for data exploration. While these products are for the analysis of big data, Google’s serverless big data platform captures data from numerous Google products, including YouTube and Google Cloud.
Alphabet is applying its big data and robot technology to the agricultural industry in an effort to improve global food sustainability. “Similar to the way Google began indexing and organizing the world wide web, the team at Alphabet X are now imagining the possibilities of measuring the data of every plant in a field,” reported TechHQ.
4. Adobe (NASDAQ:ADBE)
Market cap: US$229.53 billion; current share price: US$478.87
Adobe is a software-as-a-service heavyweight in the global tech market. A pioneer in the creation of the desktop publishing, the company is best known for its flagship product, Photoshop.
Adobe’s portfolio includes dozens of applications across its Creative, Document and Marketing Cloud platforms. Its business model includes generating predictable cash flows through subscriptions.
In late 2020, Adobe announced the acquisition of marketing workflow startup Workfront for US$1.5 billion. According to Stephanie Liu, an analyst at Forrester, the acquisition is representative of a trend that has companies combining digital asset management with content collaboration and production capabilities, reported CMS Wire.
5. Salesforce (NYSE:CRM)
Market cap: US$223.86 billion; current share price: US$245.80
Salesforce engages in the design and development of cloud-based enterprise software for customer relationship management.
The company uses its cloud-based enterprise software to engage in salesforce automation, customer service support and digital commerce, in addition to helping customers with big data analytics. Customers can feed in their data and Salesforce uses its cloud software to automate datasets and provide insights and analytics using artificial intelligence.
6. Oracle (NYSE:ORCL)
Market cap: US$173.79 billion; current share price: US$57.72
Oracle, a top big data stock that’s primarily focused on cloud, hardware and services, has been in the business for over three decades.
The company claims to simplify big data with its solutions, enabling users to manage both traditional and new datasets on a single cloud platform. Oracle lets users to bring in data to integrate with its system, which can help users store and process the data. Further, using artificial intelligence, the processed data can be analyzed and consumed.
7. SAP (NYSE:SAP)
Market cap: US$144.62 billion; current share price: US$121.16
German multinational software corporation SAP is one of the largest European software companies by revenue and is best known for its enterprise resource planning software, designed to help businesses manage operations and customer relations.
SAP’s Business Technology Platform is comprised of four technology portfolios, including database and data management, application development and integration, analytics and intelligent technologies. According to the company’s website, “the platform offers users the ability to turn data into business value, compose end-to-end business processes, and build and extend SAP applications quickly.”
8. IBM (NYSE:IBM)
Market cap: US$110.06 billion; current share price: US$123.52
Founded in 1911, information technology giant IBM provides integration solutions that leverage data and knowledge of business processes.
IBM is betting on big data through its hybrid SQL engine Hadoop ecosystem and open-source software such as Apache Hadoop and Apache Spark, which offer “cost-effective, flexible data processing and storage tools designed to handle the volume of data being generated today.”
IBM is launching IBM Cloud Pak for Data as a Service, an integrated set of services for building analytics and machine learning models. “IBM is taking a rolling thunder approach to the managed Cloud Pak for Data service, gradually bringing more data and AI services to the platform,” according to ZDNet. “The basic pieces are in place, but the data integration components, including DataStage technologies for ETL, data replication, and data virtualization are on the horizon for early-mid 2021.”
9. Palantir Technologies (NYSE:PLTR)
Market cap: US$50.91 billion; current share price: US$27.11
New to the market with an initial public offering in late September 2020, Palantir Technologies is a software company specializing in data analytics. The company’s technology has been used by US federal agencies, including the Intelligence Community and the Department of Defense, as well as by hedge funds, banks and financial services firms.
More recently, Palantir has targeted the public health sector by offering COVID-19 data-tracking services for hospitals and contact tracers. According to Forbes, “the company is also developing tools to help authorities with the logistics related to Covid vaccines.”
10. Splunk (NASDAQ:SPLK)
Market cap: US$32.75 billion; current share price: US$204.18
Splunk is a big data analytics firm that produces software for searching, monitoring and analyzing machine-generated big data. On its website, the company claims its software can “unlock the hidden value” by providing enterprises with “a unified way to organize and extract real-time insights from massive amounts of machine data from virtually any source.”
Splunk’s partner base includes tech giants such as AWS, Accenture (NYSE:ACN) and Cisco (NASDAQ:CSCO). The integration of Splunk’s products with those of its partners has no doubt helped it build its enterprise customer base, which it claims is comprised of 92 of the Fortune 100 companies.
This is an updated version of an article first published by the Investing News Network in 2018.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.