The cloud-based market is thriving owing to consistently increasing hybrid work trends, inherent effectiveness, and growing spending on cloud services. The widespread adoption of cloud technology is contributing to a digital shift, impacting businesses and industries all over the globe.

Amid this backdrop, investors could scoop up shares of fundamentally stable cloud-based solutions stocks, Atlassian Corporation (TEAM), Autodesk, Inc. (ADSK), and Okta, Inc. (OKTA), which are well positioned for significant gains.

Cloud-based services are an integral part of the greater cloud computing space. With increased speed, cost-effectiveness, scalability, and security, cloud computing services have been the general go-to for the majority of organizations. Additionally, the popularity of remote and hybrid work trends has also greatly affected the usage of these services.

With increasing investment and popularity across different sectors, the cloud computing market is on a high road to success. Gartner (IT) forecasts that the worldwide end-user spending on public cloud services is set to reach $723.40 billion in 2025, up from $595.70 billion in 2024, underscoring the market’s growth potential.

Moreover, as per a report by Fortune Business Highlights, the cloud computing market is forecasted to hit $2.29 trillion by 2032, growing at a CAGR of 16.5%.

Now, let us dive deep into the fundamentals of three cloud-based services stocks, starting with #3.

Stock #3: Atlassian Corporation (TEAM)

Headquartered in Sydney, Australia, TEAM designs, develops, licenses, and maintains numerous software products. The company’s offerings include Jira, a project management system; Confluence, a connected workspace solution; Loom, an asynchronous video communication tool; and Trello, designed to organize and streamline dynamic workflows.

On December 4, 2024, TEAM announced a multi-year strategic collaboration with Amazon Web Services (AWS) to expedite cloud transformation and deliver advanced AI and security capabilities to enterprise customers.

The agreement could drive user growth for Atlassian Cloud, which offers users access to the latest cloud-enabled services with world-class security, privacy, compliance, and reliability.

For the fiscal 2025 first quarter that ended September 30, 2024, TEAM’s total revenues increased 21.5% year-over-year to $1.19 billion. Its non-GAAP operating income rose 19.2% from the year-ago value to $268.05 million.

Additionally, the company’s non-GAAP net income and non-GAAP net income per share grew 18.2% and 18.5% from the prior year’s quarter to $199.70 million and $0.77, respectively.

Analysts expect TEAM’s revenue and EPS for the fiscal 2025 second quarter (ended December 2024) to increase 17% and 3.5% year-over-year to $1.24 billion and $0.76, respectively. In addition, the company surpassed the consensus revenue and EPS estimates in each of the four trailing quarters, which is impressive.

Shares of TEAM have surged 44.9% over the past three months to close the last trading session at $247.85.

TEAM’s POWR Ratings reflect its fundamentals. It has a B grade for Growth, Momentum, Sentiment, and Quality. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Within the B-rated Software – Application industry, TEAM is ranked #63 out of 126 stocks. In addition to the POWR Rating highlighted above, you can check TEAM’s ratings for Stability and Value here.

Stock #2: Autodesk, Inc. (ADSK)

ADSK provides 3D design, engineering, and entertainment technology solutions. Its software suite includes AutoCAD Civil 3D for surveying and design, Revit for Building Information Modeling, and Autodesk BIM Collaborate Pro, a cloud-based tool for design collaboration and management, along with other innovative solutions.

On May 21, 2024, ADSK announced the acquisition of Wonder Dynamics, makers of Wonder Studio, a cloud-based 3D animation and VFX solution that combines artificial intelligence (AI) with established tools.

The acquisition could offer ADSK users the ability to add 3D animated characters to their projects and stories while minimizing the learning curve and automating typically complex and time-consuming processes.

For the fiscal 2025 third quarter that ended October 31, 2024, ADSK’s total net revenue increased 11% year-over-year to $1.57 billion. Its non-GAAP income from operations rose 4.8% from the year-ago value to $573 million.

Moreover, ADSK’s net income and non-GAAP net income per share grew 14.1% and 4.8% from the prior year’s quarter to $275 million and $2.17, respectively.

The consensus revenue and EPS estimates of $1.63 billion and $2.14 for the fiscal 2025 fourth quarter (ending January 2025) exhibit a year-over-year rise of 11.1% and 2.3%, respectively. Moreover, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters.

ADSK’s hares have surged 17.3% over the past six months and 26.7% over the past year to close the last trading session at $290.82.

ADSK’s robust fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.

ADSK has an A grade for Quality and a B for Sentiment and Momentum. It is ranked #32 out of 126 stocks within the Software – Application industry.

Click here to access ADSK’s ratings for Value, Growth, and Stability.

Stock #1: Okta, Inc. (OKTA)

OKTA is an identity partner that offers products and services used to manage and secure identities, such as single sign-on, adaptive multi-factor authentication, API access management, access gateway, and Okta device access.

On October 16, OKTA announced a new Customer Identity Cloud product to help developers and organizations secure identity in GenAI applications, through secure identity standards. With the expansion of the GenAI market, the new offering could enhance OKTA’s market position and drive user growth.

On the same day, OKTA and the OpenID Foundation announced the formation of an OpenID Foundation working group with Ping Identity, Microsoft Corporation (MSFT), SGNL, and Beyond Identity to establish a new identity security standard, the Interoperability Profile for Secure Identity in the Enterprise (IPSIE).

The new security standard could enhance the end-to-end security of the companies’ products across every touchpoint of the technology stack.

For the fiscal 2025 third quarter that ended October 31, 2024, OKTA’s total revenue increased 13.9% year-over-year to $665 million. Its non-GAAP operating income grew 62.4% from the prior year’s quarter to $138 million.

Additionally, the company’s non-GAAP net income and non-GAAP net income per share increased 53.2% and 52.3% year-over-year to $121 million and $0.67, respectively.

Street expects OKTA’s revenue and EPS for the fiscal 2025 fourth quarter (ending January 2025) to increase 10.6% and 16.9% year-over-year to $669.10 million and $0.74, respectively. Additionally, the company topped the consensus revenue and EPS estimates in all four trailing quarters, which is noteworthy.

OKTA’s shares have surged 17.1% over the past three months to close the last trading session at $84.66.

OKTA’s sound prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

OKTA has an A grade for Growth and a B for Momentum. Within the A-rated Software – Security industry, OKTA is ranked #10 out of 20 stocks.

To access OKTA’s Value, Sentiment, Stability, and Quality ratings, click here.

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TEAM shares . Year-to-date, TEAM has gained 1.84%, versus a 0.44% rise in the benchmark S&P 500 index during the same period.

About the Author: Aritra_Gangopadhyay

Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success. More...

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