Cloud and SaaS Stocks: Reality Check
Do investors believe in all the cloud computing hype? The answer to that question depends on which metrics you’re using. Take a look at the SaaS 20 Stock Index, and you’ll see some rather interesting SaaS and cloud stock trends since the index launched in January 2008. Here’s the update.
First, the good news for this year. From January 2010 through July 30, 2010, the SaaS 20 Stock Index is up roughly 8 percent. You can find the major winners and losers over on The VAR Guy (MSPmentor’s sister site).
Despite all the cloud hype, check out this stat: Since its launch on Jan. 1, 2008, the SaaS 20 Stock Index is down 12.70 percent. The index had declined more than 50 percent in 2008 amid the credit crunch, but the index nearly doubled from 2008 to 2009 as the economy stabilized.