Cloud stock pullback: Morgan Stanley sees 3 names poised for growth

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Morgan Stanley identifies Snowflake (SNOW), MongoDB (MDB), and Datadog (DDOG) as three cloud stocks poised for growth in 2026, despite recent pullbacks. The firm argues that accelerating public-cloud demand, driven by AI workloads and digital transformation, strengthens the outlook for these companies, with hyperscaler expansion accelerating for the third consecutive quarter. Morgan Stanley maintains overweight ratings on all three.

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