Exploring Olo Inc.: A Top Cloud Computing Stock Under $10
As part of our ongoing analysis of promising investment opportunities, we’ve recently highlighted 10 Best Cloud Computing Stocks to Buy Under $10. Today, we delve into Olo Inc. (NYSE: OLO) and see how it stacks up against other contenders in this budget-friendly category.
What is Cloud Computing?
At its core, cloud computing represents the delivery of various computing services—including servers, storage, databases, networking, software, and analytics—via the Internet, commonly referred to as "the cloud." This model allows businesses and individuals to access resources on demand, significantly reducing the need for physical infrastructure and the associated costs, making it an appealing option for enterprises of all sizes.
Cloud computing encompasses more than just the infrastructure itself; it includes services delivered via the cloud through various models such as software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS). These services are becoming increasingly critical as businesses undergo digital transformations, striving to stay competitive in an ever-evolving marketplace.
A Thriving Industry with Boundless Potential
The cloud computing industry has seen substantial growth, driven by its cost-effective nature, scalability, and the accelerating pace of digital transformation. Companies, particularly smaller firms, can now leverage cutting-edge technologies that were previously unaffordable, creating a more level playing field in the market.
According to a recent report by Gartner, the cloud computing landscape is projected to continue its upward trajectory. By 2027, an astounding 90% of organizations will have adopted hybrid cloud environments, with global spending on public cloud services expected to soar to $723 billion by 2025. Notably, the IaaS and PaaS segments are forecasted to lead this growth, making up a significant portion of total cloud expenditures.
The Synergy Between AI and Cloud Computing
In a recent discussion on CNBC’s Closing Bell Overtime, Eric Sheridan, a managing director at Goldman Sachs, emphasized the robustness of the cloud computing sector, particularly within the context of AI integration. He noted that businesses are increasingly looking to merge AI technologies into their workflows, which enhances productivity and efficiency.
The quest for the "killer application" of AI—a transformative use case capable of revolutionizing industries—is ongoing. While AI’s immediate benefits are becoming evident, its long-term potential remains a key area of exploration.
Discovering the Best Cloud Computing Stocks Under $10
To help you navigate the crowded cloud computing landscape, we meticulously screened through various financial reports, ETFs, and market data to compile our list of the best cloud computing stocks under $10. Our criteria were focused on identifying companies with a market capitalization of at least $300 million and a potential upside exceeding 10%. By analyzing hedge fund ownership data from Insider Monkey’s Q4 2024 database, we ranked the top stocks based on the number of hedge funds invested in them.
Spotlight on Olo Inc. (NYSE: OLO)
- Current Share Price: $6.15
- Number of Hedge Fund Holders: 30
Olo Inc. offers an enterprise-grade, open SaaS platform designed to support restaurants in managing online orders and deliveries efficiently. Their platform integrates seamlessly with various restaurant technologies, such as point-of-sale systems and payment processors, allowing clients to streamline operations and enhance customer interactions. With a client roster that includes popular chains like Shake Shack and Wingstop, Olo is well-positioned to capitalize on the ongoing digital shift within the restaurant industry.
In its latest financials, Olo reported a 21% year-over-year revenue increase, amounting to $76.1 million in Q4. The company also demonstrated impressive growth metrics such as a gross merchandise volume of $29 billion. For 2025, Olo projects revenue of $333-$336 million and an adjusted operating income of $45.5-$47 million, indicating strong forward momentum.
While Olo ranks 3rd in our list of top cloud computing stocks under $10, our analysis suggests that AI-focused stocks may yield even greater returns sooner. If you’re intrigued by this prospect, we invite you to explore our report on the cheapest AI stock available.
Stay Ahead with Extreme Investor Network
For those looking to dive deeper into this dynamic market, we recommend checking out our other resources, including the 20 Best AI Stocks to Buy Now and the 30 Best Stocks to Buy Now According to Billionaires.
As always, make sure to conduct thorough research and consider your investment strategy carefully. Happy investing!
Disclosure: None. This article originated from research conducted by Extreme Investor Network, with insights adapted from numerous financial sources.