The Kickoff: Cloud Stocks Rise 3.24% In First Week of 2011
The Talkin’ Cloud Stock Index finished 2010 with a strong 50% rise, a potential indication that businesses are accelerating their shift to cloud services and applications. That momentum continued during the first week of 2011, when our Talkin’ Cloud Stock Index rose a healthy 3.24 percent for the week ending January 7, 2011.
Before we take a look at the companies that made it big on Wall Street this week and a few that didn’t, a reminder: Talkin’ Cloud doesn’t offer specific financial advice. We just keep an eye on how cloud hype matches up to financial reality.
- Leading the pack is SaaS CRM/ERP vendor NetSuite (NYSE: N). Shares in the company rose 12.60% to $28.15 per share on the week. That puts NetSuite within spitting distance of its 52-week high of $28.97. And while reasons for this rally aren’t immediately apparent, I’m sure NetSuite investors are thrilled to start off 2011 on the right foot.
- The next biggest winner is Taleo (NASDAQ: TLEO), saw shares jump 8.93% to $30.12 per share. The news: Panda Restaurant Group, proprietors of Talkin’ Cloud favorite fast food chain Panda Express, chose Taleo’s cloud-delivered talent management platform.
- Finally, SaaS suite developer RightNow (NASDAQ: RNOW) grew 7.94% week-over-week to $25.55 per share. The move comes amid reports that RightNow is targeting the government market.
- The biggest loser of the week was Vocus, Inc. (NASDAQ: VOCS), which dipped a full 5.28% to $26.20 a share. Vocus CEO and President Richard E Rudman recently sold 50,000 shares in his company — a common move, which may or may not have influenced share prices.
- Constant Contact (CTCT), which provides e-mail marketing and sales tools, saw their own shares drop to $29.73 per share, or a dip of 4.07%. On Thursday, January 6, Constant Contact saw a marked and inexplicable uptrend in its price, only to have it dip below its starting point on Friday, January 7. Again, no reason was immediately forthcoming — but we have to ask if this is the work of short sellers.
- And while financial software developer Intuit, Inc. (INTU) did see a fall, it wasn’t a sharp one: News that the IRS was changing tax codes delayed some Intuit revenue and saw their shares dip 1.85% week-over-week.
And that, as they say, is that. But make sure to come back next week for another update on the Talkin’ Cloud Stock Index as we watch to see if 2010 was a sign of things to come — or a train about to come to a stop.