The cloud computing industry is expected to grow exponentially in the coming months, driven primarily by businesses’ continued adoption of hybrid working models. So, we think it could be beneficial for investors to investigate two major players in this industry— Teradata (TDC) and MongoDB (NASDAQ:MDB). Let’s see which of these two stocks is a better buy now. Read on.Teradata Corporation (NYSE:TDC) and MongoDB, Inc. (MDB) are two popular players in the cloud space. TDC is a hybrid cloud analytics software provider known primarily for its analytics platform, Teradata Vantage. MDB provides a general-purpose database platform worldwide. Its offerings include MongoDB Enterprise Advanced and MongoDB Atlas (NYSE:ATCO).
Most cloud stocks soared to new highs last year as the COVID-19 pandemic-led remote working trend increased significantly. Investors’ interest in the cloud stocks is evident in the First Trust Cloud Computing ETF’s (SKYY) 37.5% returns over the past year. With ongoing rapid digitalization, and the adoption of technologies such as artificial intelligence (AI) and internet of things (IoT), the cloud computing industry is expected to grow even more in the coming months. According to a Fortune Business Insights report, the global cloud computing market is expected to grow at a 17.9% CAGR17.9% between 2021 -2028. As such, TDC and MDB could witness increasing demand for their products and services.
While TDC has gained 131.1% over the past year, MDB has returned 22.4%. Also, in terms of their nine months’ performance, TDC is a clear winner with 109.6% returns versus MDB’s 20.1%. But which of these two stocks is a better pick now? Let's find out.