Cloud computing stocks continue to show wide variation in performance throughout the first half of this year.
Ten of the twenty companies in the Cloud Computing Stock Index delivered returns to shareholders with NetSuite leading with a 37.30% share gain, delivering $13,730 on $10,000 invested on January 2, 2013.
To more fully define the stock performance of these companies, I’ve added Earnings Per Share (EPS), Price/Earnings Ratio, Year-To-Date (YTD) Total Gains or Loss, Annualized Gain or Loss, and Total Dollar Value of $10,000 invested on January 2, 2013. You can download the latest version of the Cloud Computing Stock Index here. The filter applied to these companies is that 50% or more of their revenues are generated from cloud-based applications, infrastructure and services. Additional details of the index are provided at the end of this post.
Best Performing
|
Name |
Symbol |
(1/2/13 – 7/5/13)Total Gain or Loss |
Annualized Gain or Loss |
Total Dollar Value of $10K invested in this stock on Jan. 2, 2013 as of July 5th: |
| NetSuite Inc |
37.30% |
87.55% |
$13,730.00 |
|
| Keynote Systems, Inc. |
KEYN |
36.18% |
84.53% |
$13,618.00 |
| CA, Inc. |
26.67% |
59.83% |
$12,667.00 |
|
| Workday Inc |
23.81% |
52.77% |
$12,381.00 |
|
| Cisco Systems, Inc. |
22.60% |
49.82% |
$12,260.00 |
|
| Symantec Corporation |
18.84% |
40.84% |
$11,884.00 |
|
| Amazon.com, Inc. |
11.10% |
23.23% |
$11,110.00 |
Worst Performing
|
Name |
Symbol |
(1/2/13 – 7/5/13)Total Gain or Loss |
Annualized Gain or Loss |
Total Dollar Value of $10K invested in this stock on Jan. 2, 2013 as of July 5th: |
| Rackspace Hosting, Inc. |
-46.78% |
-71.39% |
$5,322.00 |
|
| Fusion-IO, Inc. |
-41.21% |
-65.13% |
$5,879.00 |
|
| F5 Networks, Inc. |
-31.57% |
-52.88% |
$6,843.00 |
|
| VMware, Inc. |
-29.94% |
-50.63% |
$7,006.00 |
|
| Riverbed Technology… |
-24.91% |
-43.34% |
$7,509.00 |
|
| Red Hat, Inc. |
-11.47% |
-21.46% |
$8,853.00 |
Key Take-Aways:
- NetSuite leads the index with a 37.3% gain in their stock price, and $10K invested in their stock on January 2nd of this year would be worth $13,730 as of July 5th. Cloud-based Enterprise Resource Planning (ERP) systems acceptance is accelerating, evidenced by the success NetSuite is having with their two-tier ERP strategy and recent announcement they are moving into manufacturing. Their recent alliance with Oracle also shows upside potential. A cloud-based ERP provider leading the index is good news for Acumatica and Plex Systems especially, the leader in cloud-based ERP systems for manufacturing and one of the most enthusiastic customer bases in enterprise software. Both of these companies are privately held or they would have been included in the index.
- The 20 companies that comprise the Cloud Computing Stock Index attained a 29.6% return from July 10, 2012 to July 5, 2013. The Dow Jones Industrial Average (DJIA) gained 18.83%; Microsoft, 14.02%; Oracle, 7.17%; and SAP, 27.51%. The following chart compares the performance of each. Please click on the index to expand it for easier viewing.
- Widespread adoption of Amazon Web Services, success using the Kindle series of tablets as customer acquisition tools for digital content, market leadership of the online retail landscape, and successful pilots of the AmazonFresh online grocery business in Los Angeles and Seattle are all fueling Amazon’s stock performance this year.
Specifics on the Cloud Computing Stock Index
I used The Cloud Times 100 as the basis of the index, and included the 20 following companies, all of which are publically traded. The latest edition of the Cloud Computing Stock Index is shown here. Please click on the index to expand it for easier viewing.
Note: I do not hold equity positions or work for any of the companies mentioned in this blog post or included in the Cloud Computing Stock Index.