What are the top big data stocks? Here’s an overview of 10 top companies that investors may want to consider.
The term "big data" is constantly being redefined as people across the world adopt new technologies and products based on data collection and analytics.
Originally, big data was simply used to describe datasets whose size went beyond that of a traditional database. However, big data has evolved to encompass a set of technologies designed to capture, manage and analyze complex datasets to 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 11 percent between 2021 and 2026, according to Markets and Markets, to reach a value of US$273.4 billion, which means there are ample opportunities for investors to cash in on big data stocks.
The firm attributes this upcoming growth to factors such as “plummeting technology costs and development of open-source big data software frameworks, data connectivity through hybrid and multi-cloud environments, and incorporation of digital transformation in top-level strategies are driving the growth of the big data market.”
Big data companies pursuing transformational technologies such as data storage, network and content delivery platforms, security, cloud computing, the Internet of Things (IoT), machine learning and predictive analysis offer growth opportunities for investors willing to step into this complex market.
With that in mind, the 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 April 5, 2022.
1. Microsoft (NASDAQ:MSFT)
Market cap: US$2.33 trillion
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.
Microsoft is taking steps to establish the largest data center region in India to add to its existing network of data centers in the country. “The new data center in Hyderabad will deliver advanced data security and cloud solutions that will help enterprises, start-ups, developers, education, and government institutions,” Microsoft said.
2. Alphabet (NASDAQ:GOOGL)
Market cap: US$1.86 trillion
Alphabet is the holding company of internet search giant Google, and operates through multiple brands with a portfolio of companies. 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 is a big player in big data.
Alphabet's big data platforms include 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.
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,” TechHQ reported.
3. Amazon (NASDAQ:AMZN)
Market cap: US$1.66 trillion
Founded in 1994, Amazon has evolved from its roots as an online retail shopping platform to become a major global 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 other services on this list, AWS uses machine learning to help its consumers harness big data.
The company has a major cloud-computing hub in Montreal, Canada, and is set to open another in Calgary in late 2023. "When you combine our existing region in Montreal and this new region being announced today, AWS will invest $21 (billion) in Canada by 2027," said Eric Gales, head of AWS in Canada.
4. Oracle (NYSE:ORCL)
Market cap: US$221.19 billion
Oracle is primarily focused on cloud, hardware and services, and 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 bring in data to integrate with its system, helping them store and process the data. Further, using artificial intelligence, the processed data can be analyzed and consumed.
5. Accenture (NYSE:ACN)
Market cap: US$217.19 billion
Ireland-based global professional services firm Accenture is a Fortune Global 500 company that specializes in IT services and consulting with a focus on digital, cloud and security technologies. Accenture serves clients across 40 industries in more than 120 countries, including 89 of the Fortune Global 100 companies.
“Becoming data-driven starts with defining what really matters to the business — in the short and long term — and then creating the data and AI strategy, systems and data culture that empower your whole business to achieve value, faster,” the company states on its website.
6. Salesforce (NYSE:CRM)
Market cap: US$207.79 billion
Salesforce designs and develops cloud-based enterprise software for customer relationship management.
The company uses its cloud-based enterprise software to engage in activities like salesforce automation, customer service support and digital commerce, in addition to helping customers with big data analytics. Salesforce customers can feed in their data, with the company using its cloud software to automate datasets and provide insights and analytics using artificial intelligence.
7. SAP (NYSE:SAP)
Market cap: US$130.41 billion
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.
The German multinational company's Business Technology Platform is comprised of four technology portfolios: 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$115.82 billion
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.”
In March 2022, IBM launched the first cloud service that gives businesses control of securing critical data across hybrid, multi-cloud environments, helping to lower risks from cyberattacks and insider threats.
9. VMware (NYSE:VMW)
Market cap: US$48.68 billion
VMware is a data solutions and security solutions company that provides its clients with tools for managing multiple clouds and on-premise infrastructure via one dashboard. VMware has partnerships with AWS, Microsoft Azure, Google Cloud and Dell Technologies (NYSE:DELL).
In late 2021, Dell completed a spinoff of its VMware shares, which represented an 81 percent equity interest in the company. The two companies will keep their commercial agreements in place, including “the co-development of critical solutions and alignment on sales and marketing activities, while allowing strategic flexibility.”
10. Splunk (NASDAQ:SPLK)
Market cap: US$22.5 billion
Splunk is a big data analytics firm that makes software for searching, monitoring and analyzing machine-generated big data. It 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 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 says 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.