Sphere3D Corp (NASDAQ: ANY) Is A Cloud Computing Play With Massive Analyst Upside Potential-Based On ANY’s 6 Month Chart. This Stock Could Be Poised For A Breakout!
Cloud Computing Has Been On A Tear Before COVID-Why Sphere3D Is Right In The Thick Of It…With Potentially More Room For Growth.
- With the effects of COVID-19, cloud computing today is powering the world and keeping it functional. It has become as critical to economic prosperity as other general purpose markets, such as power, water, and, of course, money.
- Sphere3D is in the midst of the cloud computing boom with its recent mergers and acquisitions in the water space.
Cloud computing has been a growing industry, but now it has been enhanced with COVID-19 forcing people to work from home more, and forcing people to do things more virtually.
Cloud computing roughly refers to the on-demand availability of computer based resources, namely when it comes to the storage of big data, communication services, as well as computing power. This has caused the increase of an entirely new generation of data centers, and a new generation of booming stocks which work in this world
People were already shifting to cloud computing before the pandemic hit. But now, with people being forced to adapt, the shift to cloud computing and technology has been even more drastic and desperate. According to the MIT Technology Review, “the key to survival during covid-19 has been a rapid revamp of IT infrastructure in search of new business models and ways of working.”
Why Cloud Computing Is The Wave Of The Future: Not A COVID Fad
If COVID has proven anything, it’s that Cloud Computing, and the adaptation that the human race has made over the last 6 months is not the “fad of the week,” but is the wave of the future, and has been for the last decade before the pandemic even hit.
Forbes was already talking about cloud computing 10 years ago, and its projected growth trajectory. Looking at these projections from 10 years ago today, with how much the cloud computing sector has boomed, is laughable.
It is now the fastest growing sector in the world, with comparisons to the early days of the web in the late 90s. With COVID, it shows no signs of slowing down- only expansion while human beings look to deal with “the new normal.”
Sphere 3D Corp is a Canada-based technology development company, with a strong footprint in Cloud Computing. According to their profile description on Reuters, Sphere:
“The Company delivers data management, desktop and application virtualization solutions through hybrid cloud, cloud and on premise implementations by its global reseller network. The Company achieves this through a combination of containerized applications, virtual desktops, virtual storage and physical hyper-converged platforms. The Company’s products allow organizations to deploy a combination of public, private or hybrid cloud strategies while backing them up with the latest storage solutions. The Company has a portfolio of brands including RDX, Glassware 2.0, SnapCLOUD, SnapServer, SnapSync, NEO and V3.”
In other words, they offer very diverse, cloud-based services, which is the perfect investment, for the perfect time, during the unprecedented challenges we are facing from COVID-19. But with unprecedented challenges, comes unprecedented innovation.
Cloud Computing + Water Services=Boom Potential
ANY’s 6 month chart shows us some very valuable things as potential investors:
As you can see, ANY has been trading sideways for approximately the last month, and is currently just around its support level. It is nearly 50% below its mid-July intraday high of $5.55, and is currently trading at around $2.88 a share. What does this all mean exactly?
ANY is poised for a potential breakout upon any hint of good news.
ANY hit an intraday high of $5.55, with a closing price of $5.28 on July 14. What happened on July 14th? ANY, merged with Nevada based Rainmaker Worldwide Inc. a global Water-as-a-Service (“WaaS”) provider. People obviously cannot live without water. In other words, it’s a very important, and stable industry to invest in. But if you combine that with a cloud computing provider, you have a potential juggernaut.
Plus, on August 3, Sphere3D entered an agreement to acquire 100% of the outstanding shares of 101250 Investment Limited. (“101250”), a Turks and Caicos Islands water partner of Rainmaker Worldwide Inc.
Potential Upside For ANY?
Additionally, ANY’s stock price currently trades at $2.88 a share. ANY has a upside potential of approximately 93% from its intraday high of $5.55 which it hit just one month ago.
ANY’s Gross margin for Q2 of 2020 was 49.6%, compared to 25.4% for Q2 of 2019.
The July Breakout Could Be a Sign Of More To Come
When Sphere announced its merger with Rainmaker, it jumped over 40% in one day. Can we soon see another breakout? Sphere is part of a rapidly growing sector of the market, is trading at a cheap multiple, is expanding its business with strategic acquisitions and mergers, and could be poised for strong growth.
Cloud Computing is a business sector that was thriving before COVID, and will thrive after, and Sphere is no exception. In fact, Cloud computing stocks in 2020 have been compared to early internet stocks in the late 90s that gave birth to a whole entirely new generation of multi-billionaires.
- Combining Cutting Edge Technology With An Important Utilities: With it’s merger and acquisition with Rainmaker Worldwide, Sphere is combining its cutting edge cloud computing business, with a utility that is vital to the day to day survival of human beings.
- Canada’s Natural Resources=Opportunities: Canada is known for its lucrative natural resources sector, which could pose additional opportunities for partnerships such as the Rainmaker one.
- Upside Potential: Cloud Computing as a whole has massive upside potential. With ANY’s stock history and chart analysis, the potential profit with this stock could be over 1000% over the short term.
- Inflation Risk+Interest Rate Risk=Low: Sphere being a Canadian company gives it many advantages over other potential cloud computing competitors. Canada is known for its stable economy, especially during volatile times such as COVID, and also has a relatively low rate of inflation. “(Canada’s) financial, business and banking policies have shielded its domestic economy from many of the worst excesses of the global economy in recent decades. While it has missed out on much of the speculative growth of the past 30 years, it also has effectively protected itself from many of the worst slowdowns.”
- Cloud Computing=Wave Of The Past, COVID’s Present, and Future: Humans have been warming to, and growing cloud computing for over a decade now. However, with COVID, there has been a rapid revamp of IT infrastructure in search of new business models and ways of working.
- Cloud Computing Is Now Powering The World: Cloud computing today is powering the world and keeping it functional, and has become as critical to economic prosperity as power, water, and even money. Companies such as ANY are at the forefront of this with their strategic partnerships.
- More and More Publicity and Exposure: ANY is gathering more and more widespread exposure and publicity with its strategic acquisitions. The fact that Steve Grasso of CNBC is now part of one of their acquisitions’ advisory boards will only give them a bigger platform, and more exposure.
- Upside With Lack Of Political Risk: One of the biggest headwinds with stocks today are the geopolitical risks that certain investments can pose- namely investments that have lots of Chinese exposure. Canada, along with being known to be economically stable, is politically stable. Canada has not experienced many of the geopolitical issues, as well as political extremes that are appearing all over the world nowadays. With ANY’s upside, combined with Canada’s stability, it is hard to see the downside.
- Increased Demand For Cybersecurity: Cloud computing offers increased security for clients- something that is becoming more and more important with the increase of cyberattacks. Companies such as ANY and the services they provide will become more and more in high demand, the more and more internet security becomes compromised. Company data as a whole is much safer with cloud computing.
- The New Dot Com Boom: Over the course of the last decade, especially over the course of 2020, the boom of cloud computing services, and demands for their offerings, has created a new generation of wealthy investors benefiting from their growth. Just as the late 90s created a new generation of wealthy investors betting on the early days of the internet.
- Growth Of Gross Margin: ANY’s Gross margin for Q2 of 2020 was 49.6%, compared to 25.4% for Q2 of 2019. This signifies CONSIDERABLE growth- even for a cloud computing company.
- Globalization+Networking: With how international and interconnected the world is now, globalization and networking platforms are at an all time high. Something that also bodes very well for businesses such as ANY.
Sphere 3D Corp (NASDAQ:ANY) Possible Opportunity To Reap The Benefits of the Cloud Computing Boom
Active and aggressive investors do not want to miss the opportunities of companies such as ANY.
Increasing Cloud Computing exposure should be the top priority of any savvy investor. Why? Because increasing Cloud Computing exposure, as well as infrastructure is the top priority of almost every single business, large or small, today.