Amazon.com Lifts SaaS 20 Stock Index for Week Ended July 25

Amazon.com Lifts SaaS 20 Stock Index for Week Ended July 25

Amazon Web ServicesA strong financial report from Amazon.com lifted the SaaS 20 Stock index a tiny 0.20% gain for the week ended July 25. The index has now climbed almost four percent since early July. Are software as a service (SaaS) stocks ready to continue a rally? We'll find out on July 30, when RightNow (RNOW) is scheduled to announce 2Q results after the market closes.



A strong showing from RightNow could help the overall SaaS market, which has suffered from endless hype coupled with mixed financial results. Despite back-to-back winning weeks, our SaaS 20 Stock Index is still down more than 16 percent in 2008.

Even so, the week ended July 25 had some movers for the week.

  • Winners: Amazon.com (AMZN, +13.30%), EMC Corp. (EMC, +11.46%), Concur Tech (CNQR, +9.84%) and Salary.com (SLRY, +8.57) posted the index's biggest gains for the week.
  • Losers: Omniture (OMTR,-14.10%), Salesforce.com (CRM, -9.88%) and Taleo Corp. (TLEO, -7.45%) were the index's biggest one-week losers.
Amazon.com announced strong quarterly results. Most of the company's financial statement focused on online product sales. However, a lot of people overlooked this rather amazing piece of info. According to Amazon's financial report:
"Over 400,000 developers have registered to use Amazon Web Services (AWS), up more than 30,000 from last quarter."
Managed service providers that doubt or underestimate the rise of Amazon Simple Storage Service (S3) and other AWS services could be in for a rude awakening. Shelly Palmer, a media blogger, does a great job explaining Amazon.com's financials and AWS/SaaS strategy.

Meanwhile, Omniture -- which specializes in SaaS-driven analytical software -- took a hit when the company disclosed revenue and profit targets that were a bit below Wall Street's expectations.

The next major SaaS financial event should be RightNow's financials on July 30. I'm watching the SaaS industry for other news in the meantime.
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