The Next Wave of Cloud-Computing Companies
April 2, 2016
Grazed from Barron’s. Author: Tiernan Ray.
The stock market’s broad move this year from growth to value is nowhere more starkly evident in technology than in the downturn of cloud-computing stocks. As it has matured, cloud computing has lost some of its sizzle. Cloud companies sell software as a service, which customers tap into by visiting a Website, rather than installing the software on their own computing equipment.
Stocks that used to be the “pure plays” in cloud that every investor needed to own—names such as Salesforce.com (CRM) and Workday (WDAY)—have underperformed, while traditional software names such as Oracle (ORCL) and IBM (IBM) have surged…
Oracle and IBM are up 13% and 11%, respectively, this year, versus the Nasdaq Composite Index’s 1.9% decline. Salesforce, the poster child of cloud computing, is down 3% this year, while Workday has held up a little better, falling only 1.4%. Lesser-known names such as NetSuite (N) and ServiceNow (NOW) are down more sharply, falling 18% and 28%, respectively…
Read more from the source @ www.barrons.com/articles/the-next-wave-of-cloud-computing-companies-1459570617