Shopify Stock And 2 Cloud Software Picks Retail Investors Are Watching

When Berkshire Hathaway starts putting more of its US$350b equity firepower to work, investors tend to pay attention. Fresh Q2 portfolio moves around Alphabet and other mega-cap U.S. technology growth stocks have put a spotlight on a small group of giants that are directly exposed to this shift. This article walks through three such stocks from our screener and explains why each could matter for your portfolio decisions right now.

The three mega-cap U.S. technology growth stocks highlighted below are just a sample, and the full screen surfaced 67 more large platform and cloud companies with equally compelling quantitative stories that are not covered here. To size up this broader opportunity set and identify your own highest conviction ideas, head straight into the Mega-cap U.S. technology growth stocks screener

Palo Alto Networks (PANW)

Palo Alto Networks is a US$291.7b mega-cap cybersecurity company that fits this screener by providing cloud, platform and AI-driven security tools that many large enterprises now treat as essential infrastructure. Almost all of its US$10.6b in revenue comes from security software and services, ranging from next generation firewalls and SASE to AI-powered operations platforms like Cortex

For investors looking at mega-cap tech, Palo Alto Networks offers an AI-focused cybersecurity platform with subscription-heavy revenues, long contract durations and strong free cash flow that many institutions view as a defensive growth story. The company is leaning into themes like AI security, Zero Trust and platform consolidation, yet faces real trade offs around its rich valuation, margin pressure compared with last year, and heavy competition. If you care about where security budgets and AI spending are converging, this is one stock you may not want to ignore just yet.

Palo Alto Networks keeps emphasizing its AI security story, yet many investors still view it as a simple firewall stock. Get the fuller picture with the 2 key rewards and 3 important warning signs and see what might be hiding in plain sight

Build your own AI security shortlist

Palo Alto Networks and the two other mega cap tech stocks in this article all came out of a single screener, but the real edge is in shaping filters around what matters most to you. Use our flexible Screener to blend valuation, growth, quality and risk checks, or tap into curated themes through our Investing Ideas

Workday (WDAY)

Workday is a US$48.7b enterprise cloud applications company that fits the mega cap tech growth theme by delivering subscription based HR, finance and planning software that large organisations use as mission critical infrastructure. Virtually all of its US$9.9b in revenue comes from cloud applications, with customers using Workday to manage core processes such as hiring, payroll, financial reporting, planning, and increasingly AI driven automation.

Investors watching Berkshire’s renewed tilt toward durable cloud and platform stocks may want Workday on their radar. The company is leaning hard into AI agents, data products and deeper Google Cloud ties. These initiatives could support higher contract values and stickier customer relationships, while margin work and cash generation appeal to long term holders. The flip side is a rich valuation, slower revenue growth forecasts than some software peers and intense competition from large incumbents and new AI first entrants, plus headline risk from ongoing Silver Lake buyout chatter. For investors seeking to understand whether Workday’s AI and cloud momentum can justify that premium and the interest from private equity, this is a story worth unpacking further.

Workday is leaning hard into AI driven automation and long term cloud contracts, yet many investors still treat it as just another software stock. Put that view to the test with the analyst forecasts for Workday and see what the revenue, earnings and price target forecasts might be hinting at below the surface

Shopify (SHOP)

Shopify is a US$189.4b commerce technology platform that fits this mega cap internet and cloud theme by running a global operating system for merchants rather than just hosting online stores. Almost all of its US$13.3b in revenue comes from internet software and services that help businesses manage products, payments, fulfillment and customer relationships across online and offline channels. For investors, that scale and focus on recurring software and payments income is what puts Shopify alongside larger U.S. platform stocks on this screener.

Investors watching Berkshire’s renewed interest in large platform stocks may want Shopify on the radar because it is quietly becoming the operating backbone for many online brands, not just a storefront builder. The company is leaning into AI tools, payments and merchant services that can deepen its role inside each business, yet the premium P/E multiple, recent margin compression and insider selling mean expectations are already high, and the risk of disappointment is real. If you care about where long term e commerce infrastructure and AI assisted commerce might concentrate, Shopify is a stock where the potential benefits and the warning signs both deserve a closer look before making a decision.

Shopify’s premium P/E and margin pressure have many investors cautious, yet its role as a commerce operating system keeps expanding. Get the analysis report for Shopify to see what the current numbers might be indicating

Seeking Fresh Alternatives Beyond Big Tech

Markets move fast and the most interesting stocks can shift from under the radar to fully priced while investors hesitate. Scan these fresh ideas before the crowd and act now

• Spot income workhorses with yields that could help support your cash flow using the curated 12 dividend fortresses before others start chasing the same payouts.
• Track early AI momentum where profits already matter by scanning the hand picked 76 profitable AI stocks that aren’t just burning cash while expectations around the theme are still resetting.
• Position ahead of potential infrastructure spending shifts by reviewing the curated 39 power grid technology and infrastructure stocks while these stories are still mostly flying under the radar.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we’re here to simplify it

Discover if Workday might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition

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Have feedback on this article? Concerned about the content? Get in touch with us directly.Alternatively, email editorial-team@simplywallst.com

MI
mitchell_lawler
The Foxhole

1615
ST
steve_investor1d

Is it a safer bet on gold to have just exposure to ETFs?

MA
marcus_l38oa1d

Between 2003 and 2011, gold nearly went 5x. Dollar went weak too. The gold companies did bad. It is worth noting that between 2003 and 2011, there was 2008! I will leave it your inference and research

About NasdaqGS:WDAY

Workday

Provides enterprise cloud applications in the United States and internationally

See The Free Research Report

Flawless balance sheet with solid track record

See The Free Research Report

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