Cloud Computing, Cloud Services Stocks Still Falling
Cloud computing and cloud services stocks have been declining sharply in recent weeks. Indeed, our Talkin’ Cloud Stocks Index fell 4.20 percent for the week ending May 18, 2012. And now, investors are keeping a close eye on Hewlett-Packard earnings, which are expected to be announced May 23.
Although HP is not a member of our Talkin’ Cloud Stocks Index, HP earnings could influence the broader IT market as well as the mood among cloud computing companies. HP is expected to announce plans to cut as many as 30,000 jobs as CEO Meg Whitman attempts to trim costs and plow money back into research and development (R&D) — including new cloud services initiatives.
Several other big tech companies have produced underwhelming earnings results so far this quarter. Cisco Systems, for instance, had good earnings but the company’s profit forecast didn’t impress investors. Cisco said big customers and government organizations were not spending as much as expected on TelePresence (high-end video conferencing).
Meanwhile, Talkin’ Cloud will be analyzing more cloud computing earnings results as they surface in the days ahead. Our own Talkin’ Cloud Stocks Index is updated each Friday after U.S. markets close. The index allows us to offer a reality check amid all the cloud computing and cloud services industry hype.
