Technology

3 Mega Cap Technology Stocks Dominate the Cloud

Lee Jackson

Published: April 12, 2016 11:10 am

Last Updated: January 13, 2020 10:52 am

Needless to say, the migration to the cloud for a variety of services for everybody from the individual consumer to the largest corporate enterprise has become ubiquitous. In what should be little if any surprise to most technology investors, due to the sheer size and money required, three top technology mega cap leaders dominate the platform, and there is every reason to believe they will continue to do so for some time.

In new and separate research reports, Merrill Lynch focuses in on the companies that are dominating the cloud with a superior presence and product. All three are rated Buy, and they have the very deep pockets and expertise to continue to dominate for years to come.

Alphabet

This technology giant is the top pick all across Wall Street. Alphabet Inc. (NASDAQ: GOOGL) builds technology products and provides services to organize the information. The company offers Google Search, which provides information online; Google Now, which offers information to users when they need it; AdWords, an auction-based advertising program; AdSense, which enables websites that are part of the Google network to deliver ads; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and other advertising platforms, such as AdExchange and AdMob.

Alphabet also provides YouTube, which offers video, interactive and other ad formats; Android, an open source mobile software platform; hardware products, including Chromebook, Chrome OS devices, Chromecast and Nexus devices; Google Play, a cloud-based digital entertainment store for apps, music, books and movies; Google Drive, a place for users to create, share, collaborate and keep their stuff; and Google Wallet, a virtual wallet for in-store contact-less payments.

Many Wall Street analysts have lauded the numerous upcoming catalysts and point out that the company has shown consistent revenue growth and margin stabilization, and it finally gave cash back in the form of a $5.1 billion stock buyback last year. Last, but certainly not least, the company remains one of the best overall portfolio plays that focuses on the biggest Internet trends: the mobile/multiscreen shift, wearable devices, video, the Internet of Things and much more. Alphabet delivers investors the full package.

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