Talkin' Cloud Stock Index Sinks After Previous Week's Gain

Talkin' Cloud Stock Index Sinks After Previous Week's Gain

Only one of the 20 SaaS and cloud providers we track on the Talkin' Cloud Stock Index posted a gain for the week, leading to an overall dip of 7.58 percent for the week ending Sept. 23, 2011. It's a discouraging turn of events after last week's big gain, and we're now back down to a net negative 5.63 percent change to the index since the beginning of the year.

Before we take a look at the week's -- sigh -- winner and biggest losers, here's our standard warning. We only maintain the Talkin' Cloud Stock Index to match cloud hype against real-world financial performance. We don't offer specific financial advice, and whether you buy, sell or hold is up to you and you alone.

One Winner

  • Red Hat (RHT), the open source titan that's increasingly making a splash in the cloud and virtualization markets, posted a 2.69 percent gain to $42.32 per share, and it's no mystery why: according to its second quarter earnings statement, Red Hat is well on its way to a $1 billion 2011.

Three Losers

I have an educated guess as to what happened this week: Investors, encouraged by last week's boom, sold off their cloud stocks while prices were high -- and precipitated another dip. We'll keep watching, so come back next week for another update on the Talkin' Cloud Stock Index.
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