Talkin’ Cloud Stock Index Dips 2.5% For Week Ending Feb. 25
For the second week in a row, the 20 cloud and SaaS industry stocks that make up the Talkin’ Cloud Stock Index showed an overall dip. Alas, the week ending February 25, 2011 saw the Talkin’ Cloud Stock Index fall 2.57%. Now, it’s not time to panic. A sub 3 percent dip is hardly a bubble bursting. That said, it could be time to take a close look at why some of the best known cloud computing stocks fell.
Normally, when we look back at the Talkin’ Cloud Stock Index’s performance over the course of a week, we list three winners and some notable losers.
But the only company that posted a gain of any kind of was Vocus (VOCS), turning around a two-week losing streak with a gain of….0.82%, or $24.60 a share. Providing the boost appears to be Vocus’ acquisition of Facebook pp developer North Social, which is a logical move for the cloud-based marketing and PR solution provider.
As for the biggest losers:
- Blackboard Inc. (BBBB), which serves SaaS to the education industry, saw a 9.56% drop to $34.52 a share on news that upper-level executive William Raduchel resigned from the company while complaining about the board and CEO. It’s easy to see how that would shake investor confidence.
- E-mail marketing provider Constant Contact (CTCT) followed up a strong showing last week with a dip of 5.27% or $29.12 per share. Part of it is certainly just the market correcting itself after reaching a new 52-week high in mid-February. But it also looks like investors weren’t happy with Constant Contact’s new partnership with WeReward.
- Finally, Amazon (AMZN), purveyors of the Amazon Web Services IaaS offering, saw its stock price dip to $177.24. A 4.97% dip seems to be more attributable to speculation that the e-retail arms of Amazon will have to start collecting sales tax than any cloud services buzz.
Before we leave you for the week between Talkin’ Cloud Stock Index updates, just a friendly reminder: Talkin’ Cloud doesn’t offer specific financial advice, and it’s your call whether you want to buy, sell, or hold. We just keep this scorecard to match cloud hype against real-world performance.