Cloud Computing and Cloud Services Stocks Fall 2.43%
Cloud computing and cloud services stocks fell 2.43 percent for the week ended May 11, 2012. The biggest one-week losers in our Talkin’ Cloud Stocks Index were Rackspace (NYSE: RAX), Salesforce.com (NYSE: CRM), VMware (NYSE: VMW), Kenexa (NASDAQ: KNXA) and SolarWinds (NYSE: SWI). The biggest weekly winner was Carbonite (NASDAQ: CARB). Much like the broader Dow Jones Industry Index and the NASDAQ, our Talkin’ Cloud Stocks Index has been particularly volatile in the past few weeks.
Among the weekly changes worth watching:
Rackspace (RAX, down 10.34% for the week ending May 11): Shares fell after the cloud hosting provider gave a growth and profit forecast that somewhat disappointed investors and Wall Street.
Salesforce.com (CRM, down 9.71%): The cloud-based CRM provider and SaaS specialist is expected to announce quarterly results on May 17, so investors may have been taking profits ahead of the earnings.
Kenexa (KNXA, down 5.10%): Kenaxa shares have been climbing steadily in recent weeks, so investors seem to have been locking in profits this past week. For its three months ended March 31, revenues hit $77 million, up sharply$59.9 million in the corresponding quarter last year.
SolarWinds (SWI, down 5.01%): Here’s another example of a stock that has been climbing sharply in recent weeks, so the recent sell-off may have more to do with investor profit taking. For its quarter ended March 31, SolarWinds said revenue was $59.7 million — beating analyst expectations by about $3.3 million.
The Talkin’ Cloud Stock Index’s one big weekly winner was Carbonite (CARB, up 16.69%). Shares in the cloud storage and online backup company experienced heavy trading on May 9, triggering circuit breakers. Carbonite didn’t announce any official news that day but the company’s financial leaders apparently spoke at financial analyst conferences on May 8 and May 9 in New York and San Francisco, respectfully. Carbonite’s stock is still down about 20 percent since the start of 2012.
Meanwhile, cloud computing and cloud services stocks are still up about 23 percent since the start of 2012, according to our Talkin’ Cloud Stocks Index. The index, updated after U.S. markets close each Friday, allows Talkin’ Cloud to track financial trends in the cloud computing and cloud services markets. We do not make buy, sell or hold recommendations.