Debt Ceiling Crisis Hits the Talkin’ Cloud Stock Index
No sooner do I express optimism that cloud stocks might be heading for a turnaround, and the debt ceiling crisis in Washington causes the stock market to drop. In fact, for the week ending July 29, 2011, the Talkin’ Cloud Stock Index fell 3.31 percent. While the 20 cloud and SaaS providers that make up the index are still up an overall 10.51 percent since January, only RightNow posted a positive stock price change worth noting, despite some impressive Q2 2011 financial results.
But before we take our weekly look at the big winner and some losers, let’s go over the standard warning: The Talkin’ Cloud Stock Index is only maintained to match cloud hype against real-world performance. We don’t offer specific financial advice, and whether you buy, sell or hold is up to you and you alone.
- RightNow Technologies (RNOW) surged a solid 11.27 percent over last week, landing at $33.95 per share. Leading the way was the news that the SaaS project management and consulting firm had a stronger second quarter than the analysts expected.
- Topping the bottom this week was cloud marketing provider Constant Contact (CTCT), which fell a whopping 16.05 percent to $18.93 per share after its own Q2 financial results failed to meet expectations.
- Meanwhile, HR SaaS specialist Kenexa Corp. (KNXA) dipped 10.44 percent to $25.57 per share. Evidence as to why isn’t immediately forthcoming, but given its sharp drop on July 25, Kenexa may just be a victim of the overall depression in the market.
- Finally, Concur Technologies (CNQR) fell to $45.44 per share — an 8.05 percent drop — after lowering its guidance for the rest of the year.
While they didn’t chart as a huge winner or a big loser this week, I want to call attention to Talkin’ Cloud Stock Exchange members Amazon (AMZN), which rose 2.77 percent to $222.52 per share, and NetSuite (N), which gained 3.73 percent to $39.21 per share, both of which announced strong second-quarter earnings this past week.
Here’s hoping the Talkin’ Cloud Stock Index rebounds when the debt ceiling issue gets resolved. In fact, here’s hoping the reports of a resolution aren’t exaggerated.