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Talkin' Cloud Stock Index Dips After High-Profile Outages
Matthew Weinberger
May 9, 2011
3 Min Read
If a rising tide lifts all boats, does a departing tide lower them? That’s the question posed by this week’s Talkin’ Cloud Stock Index update. The 20 cloud and SaaS companies that make up the index are still up an overall 12.56 percent for 2011, but every single stock we monitor (with the exception of Amazon.com) posted a loss for the week ending May 6, dragging the whole thing down 3.74 percent. Why? Our money’s on a combination of disappointing earnings statements and general investor malaise after the high-profile cloud outages of April.
Before we take a closer look at our sole winner and top four losers for the week, here’s our standard warning: We only maintain the Talkin’ Cloud Stock Index to match cloud hype against real-world financial performance. Whether you sell, buy or hold is up to you – we don’t offer specific financial advice.
The Cheese Stands Alone
As TalkinCloud’s noted before, e-retail is the bread and butter of Amazon.com’s (AMZN) operation, no matter how much we might talk about Amazon Web Services. That’s why even in the aftermath of an Amazon Web Services outage, the company is still up 0.91 percent to $197.60 a share on the news that Wal-Mart soon will start carrying the Amazon Kindle.
And The Losers
SaaS cost management vendor Concur Technologies (CNQR) fell 13.72 percent to $49.93 per share after its 2011 Q1 earnings statement showed its revenues beat expectations but earnings per share fell short. Investors reacted accordingly.
Similarly, analysts are projecting that RightNow Technologies (RNOW) will fall short of its own earnings estimates, leading the cloud marketing solution provider to dip 10.53 percent to $32.37 per share.
Rackspace Hosting (RAX) had a roller coaster of a week, dipping when the Slicehost severance went public but coming back again when analysts predicted that the company would beat its old 52-week high. But at the end of the day, not even an optimistic earnings statement preview could save its stock from dropping 7.71 percent to $42.63 per share.
Analyst predictions were the downfall of Vocus (VOCS), too, after the reiteration of a “neutral” rating for the company’s stocks. The PR management developer saw its price per share fall to $27.37, a change of 7.63 percent.
Normally, these kind of analyst ratings don’t produce this kind of violent and immediate dip in a stock’s price. But my guess is that the cloud outages we’ve all been talking about have left some investors on the razor’s edge when it comes to their dollars.
Another thing I want to call attention to are the new entrants to the Talkin’ Cloud Stock Index – or rather, the fact that they didn’t make an appearance, on either the top winners or top losers lists. Come back next week to see if that holds.
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