Cloud Computing and Cloud Stocks Tiptoe Up 2 Percent
It was another solid week for the 20 cloud service providers and cloud companies on the Talkin’ Cloud Stocks Index. Indeed, our stock index rose a respectable 1.83 percent for the week ending Feb. 17, 2012 — while the Dow Jones Industrial Average climbed closer to its former heights amid hopes that Greece would be receiving its long-awaited bailout, NASDAQ lagged behind, and most tech stocks were caught in the middle on both fronts.
Before we take a look at a few notable winners, it’s our standard disclaimer: We maintain the Talkin’ Cloud Stocks Index to analyze cloud computing hype vs. real-world performance. We don’t offer specific financial advice, and whether you buy, sell or hold is up to you and you alone.
The biggest winner of the week was Rackspace Hosting (RAX), which jumped 9.11 percent to $52.93/share after its Q4 2011 financials beat analyst expectations for revenue at $264.6 million, while meeting the same for earnings per share (EPS) at $0.14.
The only other member of the index that came close was VMware (VMW), which shot up 4.90 percent to $99.11/share as the week’s VMware Partner Exchange generated plenty of buzz around the virtualization specialist. It seems a little bit of virtualization hype spilled over from VMware’s event into Citrix (CTXS), which went up 4.63 percent to $74.77/share despite not making any moves of its own.
None of the 20 companies we track posted a loss really worth discussing this go-round. But I did want to single out cloud storage provider Carbonite (CARB), which sunk 2.8 percent to $9.71 percent/share. As one of the newest members of the Talkin’ Cloud Stocks Index, I’ve notice that Carbonite has rarely broken above the $10/share mark in the two months or so we’ve been tracking it.
That’s all there is this week. The Talkin’ Cloud Stocks Index is already up 18.41 percent since January 1st. We will update the index again after financial markets close this coming Friday.