Cloud Infra Vendor ETF idea
Would love your feedback on a self-managed "Cloud Infra Vendor ETF" I'm putting together. Prospectus: I'm bullish on cloud computing vendors like BABA, AMZN, GOOG, MSFT, who all did great last year and likely will do well this year, based on sentiment, as well as core underlying businesses. Lots of start-ups and enterprise companies seeking agile development continue to increase their investment in cloud infra to achieve scale and keep costs down, including SNAP, WORK, NFLX, etc. These are just a few of the technical reasons I don't expect these companies to decelerate even if there's a recession, not to mention the non-technical reasons. These companies will probably be bellwether stocks for the foreseeable future considering their large moats and economic ecosystems. Future future: I see a world where cloud infra is very mature and become dividend income sources, something MSFT does already, further increasing investment opportunities. Allocation**: - AMZN 40% - MSFT 19% - GOOG 9% - BABA 6% Others (???) **Rebalanced quarterly, based on the market share numbers (not the company market caps), for example, https://www.srgresearch.com/articles/amazon-microsoft-google-and-alibaba-strengthen-their-grip-public-cloud-market Let me know what you think! TC 317K - 355K (9 YOE) #stock
Why can't these companies switch to cheap hosting companies like hetzner, scaleway, ovh, digitalocean etc? Especially if the latter keep investing into their offerings to compete on features with the big clouds? I rent a small box from hetzner and it's MASSIVELY cheaper than aws/gcp. Nice not to get extorted on egress traffic for one thing.
I hadn't considered smaller accounts, but my hypothesis is that there's extra compliance, security, support requirements for large customers that aren't met by smaller vendors (at this time.)
Mrvl