Cloud computing stocks were very popular last year, with many stocks soaring. But now investors' attitudes seem to have changed, and they have begun to withdraw from high-priced cloud computing stocks and turn to established technology stocks with lower valuations.
focuses on the ETF "WisdomTree Cloud Computing Fund" of cloud computing companies. On the 22nd, it plunged 5.39% to close at $56.57, a new closing low since the third day, and broke the monthly support.
Barron’s reported that almost all large cloud computing stocks closed lower on the 22nd, including Snowflake, Zscaler, DocuSign, Okta (OKTA), Sumo Logic, etc., with declines of 5% to 10%. The valuations of many popular cloud computing stocks have reached high points, and outsiders have questioned whether they are sustainable. At least 15 companies have stock prices that are 35 times their expected revenue.
Compared with established enterprise software and hardware stocks, such as IBM, HP Inc., HP Enterprise, and Seagate Technology, the stock prices have all climbed. Barron’s is highly optimistic about Oracle (Oracle), and its stock price has soared by more than 5%. Barron’s cover story last weekend was titled Oracle , believing that it is expected to successfully transform like Adobe and Microsoft , and the operating model will be changed to cloud computing-based services to replace the traditional licensed software business.
Not only did cloud computing stocks subside, but home-based epidemic prevention stocks also fell on the 22nd, and economic restart concept stocks turned red. Online retailer Etsy fell 6%, food delivery company DoorDash fell 13.55%, and fitness company Peloton fell 9.99%. On the other hand, travel stocks soared, with Expedia rising 1% and Booking.com rising 2.5%.
CNBC and Barron’s reported at the end of last year that Zscaler is a booming stock in the United States, ranking third among U.S. technology stocks in terms of increase so far in 2020, second only to Zoom and Fastly. Affected by the epidemic, employees use various devices to connect to the Internet from all over the world, and large companies find ways to protect scattered data and networks, which greatly increases Zscaler's momentum.
