Mad Money

Cramer sees big cloud on the horizon


Pro investors like Jim Cramer are always looking ahead. And if you have money in the market, he doesn't want you to miss this.

He's just found new evidence that the cloud is coming; and it's gathering energy this very minute.

By cloud, Cramer means cloud computing although the analogy to an approaching storm is not without merit.

Benoist Sebire | Flickr | Getty Images

That's because Cramer believes the potential that lies ahead from the cloud easily compares to a virtuous weather system that showers investors with profits.

And that new evidence cited above lies with the latest results from Workday, a cloud based provider of human capital software.

"The relatively young company posted a smaller than anticipated loss, with revenues that soared 74.1% year over year, higher than what the analysts were looking for," Cramer said.

But perhaps more important, billings climbed 67%, and Workday's customer base grew by 50%. On top of that, the company gave upside guidance for the next quarter and the next fiscal year.

Those are the metrics that matters to Cramer and Workday appears to be firing on all cylinders.

"Workday helps companies save a bundle on tech hardware costs because it means they no longer need expensive servers hosting their own data," Cramer explained. These results suggest their services are growing in their appeal and that the larger trend of migrating from single servers to the cloud is powerful.

In in the case of Workday, Cramer added the company has been aggressively taking share from old-school software companies like Oracle. And he reminded that Workday is one of his Mad Money Momentum Monsters.

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"I've been telling you over and over that cloud computing is the future," Cramer reminded.

The thesis appears to have been confirmed by Workday. "I view their results as one more piece of evidence that the cloud is on fire."

Call Cramer: 1-800-743-CNBC

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