SaaS Stocks Rise 4% for Week Ending March 12
Software as a service (SaaS) and cloud stocks continue to show some strength. For the week ending March 12, The VAR Guy’s SaaS 20 Stock Index — which tracks 20 SaaS and cloud stocks — rose 4.19%, and the index is now up a healthy 5.57% so far in 2010. Weekly winners included Kenexa Corp. (KNXA), Vocus Inc. (VOCS) and NetSuite (N). Here’s a closer look at the weekly leaders and laggards.
Within the SaaS 20 Stock Index, leaders for the week ending March 12, 2010 featured:
- Kenexa Corp. (KNXA, +14.49%): The HR-focused SaaS specialist landed on TrainingIndustry.com’s Leadership Training Companies Watch List. Shares in the company climbed after Kenexa filed its 10-K on March 9. Frankly, The VAR Guy is still trying to figure out what caused Kenexa shares to rally during the week…
- Vocus Inc. (VOCS, +13.60%): The PR SaaS specialist also filed its 10-K with the SEC on March 9. In addition to PR-oriented software, Vocus makes tools that allow companies to monitor company chatter on social networks. Despite the one-week rally, Vocus shares are still down about 6.7% so far this year.
- NetSuite (N, +12.12%): A new NetSuite partner program and support for the Google Apps Marketplace seem to have impressed Wall Street. Next, NetSuite company is gearing up for its SuiteCloud 2010 Partner Conference. Still, the news isn’t all good. NetSuite’s financial guidance for 2010 hasn’t impressed some skeptics on Wall Street. Overall, the company’s shares are down about 12% so far this year. And rivals like Microsoft are seeking to steal NetSuite’s customers.
For the year to date, the SaaS 20 Stock Index’s biggest gainers include:
- Websense (WBSN, +39.12%): Despite overhauling its partner program, Websense continues to impress Wall Street. The security software company’s recent partnership with Juniper seems to have impressed analysts as well. SaaS sales should continue to rise, assuming Websense’s new Managed Security Service Provider partner program gains momentum.
- Constant Contact (CTCT, +36.13%): One of the strongest brands in email marketing, Constant Contact has also launched an Event Marketing tool that has attracted more than 5,000 customers since Oct. 2009. Still, ConstantContact lost money in 2009 because of sales and marketing costs. Based on recent share performance, ConstantContact investors seem to be betting on improved profits in 2010.
- SuccessFactors Inc. (SFSF, +25.03%): Yet another SaaS company that specializes in HR and human capital management. SuccessFactors shares have been on an upward climb for the past year. The company’s most recent move involves Google Apps Marketplace support.
New Names and Faces
Looking ahead, The VAR Guy may shake up the SaaS 20 Stock Index a bit. Among the companies he may cut from the index: Dell Inc., which doesn’t seem to be making many headlines with its various SaaS (Silverback,Everdream and MessageOne) efforts… Perhaps VMware would make a good replacement for Dell in the index?
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