The cloud computing industry has been growing consistently with the increasing need for cloud solutions to facilitate hybrid working models and with continued adoption of this technology as part of businesses’ digital transformations. As a result, we think two prominent players in the industry, Twilio (NYSE:TWLO) and Oracle (ORCL), should benefit. But let’s find out which of these two stocks is a better buy now.Twilio Inc. (TWLO) and Oracle Corporation (NYSE:ORCL) are two prominent players in the growing cloud computing industry. TWLO offers a cloud communications platform that enables developers to build, scale and operate real-time communications within software applications. ORCL provides products and services that address all aspects of corporate information technology (IT) environments. Its Oracle cloud software-as-a-service offering includes various cloud software applications.
The cloud computing industry, which got a significant boost last year thanks to the COVID-19 pandemic-driven surge in work-from-home structures, has been growing consistently with increasing use of advanced technologies, such as artificial intelligence (AI) and machine learning (ML). Because businesses are expected to partly continue with remote working for the foreseeable future, there should be steady demand for cloud solutions going forward. Furthermore, the increasing adoption of cloud solutions as part of an ongoing digital transformation by businesses should keep driving the industry’s growth. According to Fortune Business Insights, the global cloud computing market is expected to grow at a 17.9% CAGR over the next seven years. So, both TWLO and ORCL should witness increasing demand for their solutions.
But while TWLO has returned 59.5% over the past year, ORCL has gained 41.2%. Furthermore, in terms of their past nine months’ performance, TWLO is a clear winner with 46.2% returns versus ORCL’s 27.6%. So, which of these two stocks is a better pick now? Let's find out.