When the Dow Jones Industrial Average experienced its worst four-week period since 2008, the 20 SaaS and cloud companies that make up the Talkin' Cloud Stock Index weren't immune. And after weeks and weeks of halting progress, offset by small but significant losses, the Talkin' Cloud Stock Index plunged 12.71 percent for the week ending Aug. 19, 2011, bringing us to an overall loss 13.90 percent for the year thus far.
In fact, the only winner last week was Intuit (INTU), which saw its stock price rise 2.97 percent to $43.65. Apparently, investor confidence is being bolstered by the fact that the financial software developer's overall quarterly loss, reported last week, Intuit's small business segment is on the rise and led the company to post a profit.
While there was no shortage of losers, there were a few standouts on the index:
- NetSuite (N) was the top of the bottom, with the cloud ERP provider posting a massive 22.75 percent drop to $27.43 per share. Intriguingly, it appears it may have escaped the week relatively unscathed if not for a combination of short seller interest and NetSuite CEO Zachary Nelson selling off 9,374 shares on Friday morning.
- SaaS business execution solution developer SuccessFactors Inc. (SFSF) dipped a staggering 22.32 percent to $19.52 per share. It seems it was just the biggest victim of the overall market downturn.
- Finally, PR management specialist Vocus (VOCS) fell 18.54 percent from last week, hitting $18.19 per share at the closing bell. Overall, Vocus has been showing downward momentum all year, and that was only exacerbated by the overall poor market performance.
Before we go, I want to leave you with our standard warning: TalkinCloud only maintains the Talkin' Cloud Stock Index to match Wall Street hype against real-world performance. Whether you buy, sell, or hold is up to you and you alone.
Needless to say, things aren't looking good for cloud stocks. And while TalkinCloud is hopeful that we'll be able report an overall gain next week, it may be a while until things stand where they were even last week.