Today, I cover my top high-conviction cloud stocks to buy on the next dip. These are high-growth software-as-a-service (SaaS) and cloud stocks that I currently hold in my $1.6 million long-term investing portfolio.

If you aren't familiar with the terminology, SaaS is simply a component of cloud computing. SaaS refers to software hosted outside of your organization and offered as a subscription-based service. Overall, SaaS generally offers businesses lower total cost of ownership. The latest software updates and enhancements are generally done for you as the client, allowing businesses to have the latest and greatest without additional effort or overhead. Additionally, SaaS enables businesses to shift capital expenses to operating expenses, allowing them to stretch budgets from an accounting perspective. 

Cloud computing refers to servers that are connected through the internet, as well as the software, data centers, and databases that create an online network. Leveraging "the cloud" allows users and businesses to consume and analyze data without having to manage databases or software on their own physical, on-premises servers and machines. 

Digital transformation, artificial intelligence (AI), cybersecurity, machine learning, centralized analytics, customer relationship management, enterprise resource planning (ERP), connected TV (CTV), streaming, work from anywhere, the gig economy, and other secular growth trends fuel SaaS and cloud infrastructure. But what are the best stocks to buy in order to ride these waves and boost your portfolio? 

I'll provide 10 total stocks over two articles and videos. Today, I will cover stocks 6 through 10.

#10. salesforce.com (CRM -1.62%) is the leader in customer relationship management (CRM). Salesforce is a SaaS provider that enables organizations to integrate marketing, sales, service, e-commerce, and IT into a single customer view. Salesforce is acquiring Slack (WORK), which has caused volatility in the stock. The leadership team has proven to shareholders many times that they can successfully acquire businesses and add value. I firmly believe that this acquisition will add tremendous value to Salesforce customers. The company plans to build Slack into its Service Cloud products, which will increase employee productivity from anywhere. 

#9. DocuSign (DOCU -0.97%) offers more than most people realize. Its business consists of four primary pillars -- manage, prepare, sign, and act -- which collectively are called the DocuSign Agreement Cloud. The company continues to expand offerings, and its recent earnings results prove it. For Q1 FY22, revenues grew 58% year over year to $469 million. Its billings also grew 54% year over year to $527 million with a 125% net dollar retention rate. The below video goes into more detail, breaking down the pillars and solutions. 

#8. Twilio (TWLO -0.78%) is often misunderstood. Sure, it helps companies like Uber and DoorDash connect customers to businesses, but what else does it do? Here is a list of solutions Twilio can offer:

  • Messaging: You can send and receive SMS, MMS, and OTT messages globally (to and from over 180 countries) and in a scalable manner. For example, Twilio can be used to created automated replies to customers and route important requests to humans for additional interaction. 
  • Customer engagement: Contact centers can leverage Twilio for customer engagement channels, and the tools can be quite complex. For example, Twilio offers AI-powered tools for customer self-service, automatic text notifications, callbacks, etc. 
  • Marketing: Campaigns can use Twilio to send specific, customizable messages with the ability to track data such as click-through rates.
  • Business email services: Twilio can send and receive emails. Twilio SendGrid Email API allows businesses to create flexible, scalable, and engaging campaigns.

#7 The Trade Desk (TTD -1.52%) focuses on the ad-tech space, and it has a tremendous total addressable market (TAM) when you consider the possibilities in CTV. CTV means "connected TV," which is essentially any television connected to the internet. Think Roku (ROKU -3.31%), YouTube, part of Alphabet (GOOG -1.00%) (GOOGL -1.05%), Amazon Prime (AMZN -1.54%), Disney's Disney+ (DIS -2.68%), and others. Smart TVs are changing the internet, and buying The Trade Desk is the best way to play this space, in my opinion. The company allows its clients to buy advertisements or run global marketing campaigns in areas such as CTV, display ads, and even social media. These are massive secular growth trends, and The Trade Desk can help your portfolio capture some of this growth. 

#6. Zoom Video (ZM -1.42%) is the epitome of a work-from-home stock, but can it be a large part of the work-from-anywhere movement that is here to stay? The answer, in my opinion, is yes. Zoom is now a verb, and recently Charlie Munger told CNBC that he's "in love with Zoom" and thinks it's "here to stay." I agree with him, and the below video shares more details as to why. 

These 10 cloud growth stocks can boost your long-term investing portfolio, so please check out the below video and subscribe to make sure you don't miss the second video covering my top five stocks.