Most companies in the cloud space are expected to continue benefiting from the growing demand for their solutions from almost every industry because of the ongoing digital transformation. Hence, we think cloud data analytics companies Teradata (NYSE:TDC) and Domo (NASDAQ:DOMO) should benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.San Diego, Calif.-based hybrid cloud analytics software provider Teradata Corporation’s (TDC) solutions and services comprise software, hardware, and related business consulting and support services. It offers primarily Teradata Vantage, an analytics platform. In comparison, Domo, Inc. (DOMO) in American Fork, Utah, operates a cloud-based platform in the United States. Its platform digitally connects the CEO and frontline employees with the people, data, and systems in an organization, giving them access to real-time data and insights to manage the business from smartphones.
Even though cloud-based service providers are vulnerable to cyber-attacks, governments and businesses have been spending billions of dollars on cloud-based services to facilitate the ongoing digital transformation and continued remote working. According to a Synergy Research Group report, cloud infrastructure spending reached $42 billion in the second quarter of 2021. Furthermore, the future looks promising for the cloud data analytics industry due to consistent advancements in the artificial intelligence (AI) and machine learning (ML) space and rapid deployment of 5G, among other factors. As a result, both TDC and DOMO are expected to benefit in the coming quarters.
DOMO’s shares have gained 36.4% in price over the last three months, while TDC has returned 11.6%. However, TDC’s 8.1% gains over the past month are higher than DOMO’s 2% returns. Moreover, TDC is the clear winner with 141.4% in price gains year-to-date versus DOMO’s 40.4%.