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.
- 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.
- The biggest loser award goes to employee management solution vendor Kenexa (KNXA), which saw its stock price sink 14.03 percent to $16.30 a share. Intriguingly, Kenexa's stock was riding high after it announced a major product upgrade, but that looks to have precipitated a massive investor selloff, resulting in the price drop.
- Marketing specialist Constant Contact (CTCT) continued its on-again, off-again losing streak, dipping 12.18 percent to $16.58 per share. CTCT started things off on the wrong foot, opening far lower than it closed last week, and never quite picked itself back up, despite an announcement that Constant Contact would be integrating with other cloud solutions.
- Finally, Salesforce.com (CRM) dropped 11.91 percent to $120.30 per share. Apparently, investors weren't pleased with the Assistly acquisition, and liked the mobile app patent lawsuit Salesforce was slapped with this week even less.
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.