Amid the ongoing digital transformation, the heightened demand for secure and efficient cloud-based platforms is brightening the cloud industry’s prospects. Therefore, prominent cloud stocks Snowflake (SNOW) and Veeva Systems (NYSE:VEEV) should benefit. But which of these stocks is a better buy now? Let’s find out.Snowflake, Inc. (SNOW) in San Mateo, Calif., and Pleasanton, Calif.-based Veeva Systems Inc. (VEEV) are two prominent players in the cloud-computing industry. SNOW provides a cloud-based data platform that enables customers to consolidate data into a single source to drive business insights, build data-driven applications and share data. In comparison, VEEV provides cloud-based software solutions for the global life sciences industry. The company offers enterprise applications, multichannel platforms, customer relationships, and content management solutions.
Because the resurgence of COVID-19 cases due to the spread of its Delta variant is causing delays in office-reopening plans, cloud companies are expected to witness high demand for their products and services. Furthermore, amid the ongoing digital transformation of almost every industry, the need for safe and efficient cloud platforms should drive the cloud industry’s growth. The cloud computing market is expected to grow at an 18% CAGR to $303.07 billion by 2025. So, both SNOW and VEEV should benefit.
But while SNOW’s shares have gained 5.8% in price year-to-date, VEEV has surged 21.4%. In terms of their past nine months’ performance, VEEV is a clear winner with 19.5% price gains versus SNOW’s negative returns. But which of these stocks is a better pick now? Let’s find out.