With rapid global digitalization and deployment of 5G, the demand for cloud platforms is expected to continue climbing. So, the industry tailwinds should help Dropbox (NASDAQ:DBX) and Fastly (NYSE:FSLY) benefit this year. But let’s find out which of these software stocks is a better buy now.Dropbox, Inc. (DBX) in San Francisco, and Fastly, Inc. (FSLY), which is also headquartered in San Francisco, are two popular companies in the cloud-computing space. DBX provides online file storage and sharing services. It operates the Dropbox platform, which offers a range of collaboration, editing, document management, and synchronization tools for individuals and business teams worldwide. FSLY operates an Infrastructure-as-a-Service edge cloud platform, which offers cloud computing, image optimization, security, edge computer technology, streaming solutions, and real-time content delivery network (CDN) services.
Since the beginning of the pandemic, the cloud-computing market has been witnessing huge demand from small- to large-sized businesses and enterprises that are seeking to make their operations efficient. The continuation of remote working due to the resurgence of COVID-19 cases should drive the demand for efficient and secure cloud platforms even more amid increasing cybersecurity threats. The global cloud computing market is projected to grow at a 17.9% CAGR to $791.48 billion by 2028. So, both DBX and FSLY should benefit from the growing demand for their solutions this year and beyond.
But while FSLY’s shares lost 21.6% over the past month, DBX gained 4.1%. And in terms of the past year’s performance, DBX is a clear winner with 68.6% gains versus FSLY’s negative returns. But, which of these stocks is a better pick now? Let’s find out.