What happened
Many cloud computing companies saw their share prices rise in May, according to data from S&P Global Market Intelligence. I'm going to focus on non-SQL database veteran MongoDB (NASDAQ:MDB), infrastructure-as-a-service expert Nutanix (NASDAQ:NTNX), and software management specialist New Relic (NYSE:NEWR). Here's how these stocks performed last month:
^SPX data by YCharts.
For the most part, these gains were part of a larger rebound from the depth of the COVID-19 shutdown in March. The S&P 500has climbed 34% since March 18, and my three tickers simply amplified that gain. New Relic is up by 90% over this period, MongoDB gained 94%, and Nutanix posted a 98% return.
New Relic accelerated its upward trajectory with a solid fourth-quarter report on May 14. The company beat Wall Street's estimates across the board but also issued slightly pessimistic next-quarter guidance. Many of New Relic's customers fall into the small-business sector, and some of them are having trouble paying their bills at the moment. The company is also knee-deep in closing down its physical data centers and moving into public cloud services instead, which will weigh on profit margins for the next couple of quarters. That being said, management said that these issues should be short-lived and the long-term growth opportunity in 2021 and beyond remains exciting.
Image source: Getty Images.
MongoDB didn't have much news to share in May, but investors and analysts expected an impressive showing in early June's first-quarter report. The company absolutely demolished Wall Street's official expectations, but MongoDB's stock still fell more than 7% the next day. The pre-earnings market momentum turned out to be just a little bit too strong, so some MongoDB investors felt that it was time to take some profits off the table.
As for Nutanix, the cloud-based infrastructure specialist also crushed analysts' estimates in a late-May third-quarter report. The road to that impressive financial report was somewhat bumpy, including a couple of significant drops along the way as management withdrew its full-year guidance and furloughed 1,465 workers in the San Francisco area. It expects that the cost-saving habits the company is acquiring during the coronavirus crisis will stick around for years to come, herding Nutanix toward more efficient and more profitable operations.
I'm talking about three well-managed companies here, all in the red-hot cloud computing sector, where strong revenue growth should be easy to find for years to come. All of them are trading double-digit percentages below their 52-week highs, which counts as a serious discount in the high-growth corner of Wall Street. Importantly, I believe that all three should be able to shrug off a second wave of COVID-19 infections if it turns out that states started reopening a bit too early.
View original post here:
Here's Why Several Cloud Computing Stocks Surged in May - The Motley Fool
- Roundup Of Cloud Computing Forecasts, 2017 - Forbes - May 3rd, 2017 [May 3rd, 2017]
- RCom arm in tie-up for cloud computing - Moneycontrol.com - May 3rd, 2017 [May 3rd, 2017]
- How Do You Define Cloud Computing? - Data Center Knowledge - May 3rd, 2017 [May 3rd, 2017]
- 5 Cloud Computing Stocks to Buy - TheStreet.com - May 3rd, 2017 [May 3rd, 2017]
- Cloud Computing Continues to Influence HPC - insideHPC - May 3rd, 2017 [May 3rd, 2017]
- Red Hat's New Products Centered Around Cloud Computing, Containers - Virtualization Review - May 3rd, 2017 [May 3rd, 2017]
- Adobe bets big on cloud computing for marketing, creative professionals - Livemint - May 3rd, 2017 [May 3rd, 2017]
- Verizon sells cloud services to IBM in 'unique cooperation between ... - Cloud Tech - May 3rd, 2017 [May 3rd, 2017]
- How Cloud Computing Is Turning the Tide on Heart Attacks - Fortune - May 3rd, 2017 [May 3rd, 2017]
- Hospital CIOs see benefits of healthcare cloud computing - TechTarget - May 3rd, 2017 [May 3rd, 2017]
- Trends In Cloud Computing - Business Solutions Magazine - June 6th, 2017 [June 6th, 2017]
- A deeper dive into cloud security as a service: Advantages and issues - Cloud Tech - June 6th, 2017 [June 6th, 2017]
- OpenText buys cloud computing firm for US$103 million - TheRecord.com - June 6th, 2017 [June 6th, 2017]
- Belfast IT firm celebrates cloud computing success in 57 countries ... - Belfast Telegraph - June 6th, 2017 [June 6th, 2017]
- Meet The Cloud Wars Top 10: The World's Most-Powerful Cloud-Computing Vendors - Forbes - June 6th, 2017 [June 6th, 2017]
- How to approach cloud computing and cyber security in 2017 - Information Age - June 6th, 2017 [June 6th, 2017]
- CFOs have discovered the big stick of cloud computing - InfoWorld - June 6th, 2017 [June 6th, 2017]
- Belmont Stakes Odds 2017: Latest Vegas Betting Lines Before Post Positions Draw - Bleacher Report - June 7th, 2017 [June 7th, 2017]
- Cloudistics Announces New Cloud Computing Program That Enables High Margin Reoccurring Revenue Models for ... - Marketwired (press release) - June 7th, 2017 [June 7th, 2017]
- CloudCheckr, cloud computing company expects rapid growth in Rochester - WXXI News - June 7th, 2017 [June 7th, 2017]
- IBM Losing Facebook's WhatsApp as Cloud Customer, says CNBC - Barron's - June 7th, 2017 [June 7th, 2017]
- What My Father Taught Me About Cloud Computing - Virtualization Review - June 7th, 2017 [June 7th, 2017]
- Workday Phenomenon Goes Global As Cloud Computing Goes Mainstream - Forbes - June 7th, 2017 [June 7th, 2017]
- New Cloud Computing and IT Outsourcing Requirements in the Financial Sector - JD Supra (press release) - June 9th, 2017 [June 9th, 2017]
- 3 Things You Should Know About Cloud Computing Right Now - Fortune - June 9th, 2017 [June 9th, 2017]
- Learning in the Sky: Collaborative Robots Embrace Cloud Computing - Machine Design - June 9th, 2017 [June 9th, 2017]
- Best Practices To Manage Your Hybrid Cloud - Forbes - June 9th, 2017 [June 9th, 2017]
- Here's how venture capitalists are thinking about cloud computing companies and technologies - GeekWire - June 9th, 2017 [June 9th, 2017]
- Amazon is helping veterans find jobs in cloud computing - Marketplace - Marketplace.org - June 9th, 2017 [June 9th, 2017]
- New Cloud Computing and IT Outsourcing Requirements in the Financial Sector - Lexology (registration) - June 9th, 2017 [June 9th, 2017]
- Growing Patent Claim Risks in Cloud Computing - Lexology (registration) - June 9th, 2017 [June 9th, 2017]
- The benefits of cloud computing, Rust 1.18, and intelligent tracking prevention in WebKit SD Times news digest ... - SDTimes.com - June 9th, 2017 [June 9th, 2017]
- Edge Computing Is New Cloud Computing Tech Investors Should Track - GuruFocus.com - June 9th, 2017 [June 9th, 2017]
- Real Estate Weekly: Digital Realty Becomes A Cloud Computing Giant - Seeking Alpha - June 9th, 2017 [June 9th, 2017]
- Virtualization admin? Pivot -- pivot now -- to a cloud computing career - TechTarget - June 10th, 2017 [June 10th, 2017]
- Why isn't Cloud Computing in the 2017 Belmont Stakes? - FanSided - June 11th, 2017 [June 11th, 2017]
- Cloud Computing Companies Move Into Medical Diagnosis (GOOG, IBM) - Investopedia - June 11th, 2017 [June 11th, 2017]
- China's cloud industry moving to new era with emergence of unicorns - TechNode (blog) - June 12th, 2017 [June 12th, 2017]
- Terry Crews Is On Crackdown 3 Trailer, No Cloud Computing For Single Player - EconoTimes - June 12th, 2017 [June 12th, 2017]
- The Risks and Perquisites of Cloud Computing - DATAQUEST - June 12th, 2017 [June 12th, 2017]
- Alibaba Cloud announces launch of data centres in India and Indonesia - Cloud Tech - June 12th, 2017 [June 12th, 2017]
- Indonesia banks have yet to implement cloud computing - Jakarta Post - June 13th, 2017 [June 13th, 2017]
- 'Sweden is heaven for cloud computing': Amazon Nordic chief - The ... - The Local Sweden - June 14th, 2017 [June 14th, 2017]
- Amazon.com to open second government cloud-computing region ... - The Seattle Times - June 14th, 2017 [June 14th, 2017]
- Shadow raises $57 million for its cloud computing service for ... - TechCrunch - June 14th, 2017 [June 14th, 2017]
- Amazon Still Leads Cloud Rankings, But Competition Is Coming On Strong - Fortune - June 16th, 2017 [June 16th, 2017]
- Alibaba to enter European cloud computing market in mid-2017 | Air ... - Air Cargo World (registration) - June 17th, 2017 [June 17th, 2017]
- Alibaba to enter European cloud computing market in mid-2017 - Air Cargo World (registration) - June 17th, 2017 [June 17th, 2017]
- Pressing Tech Issue: Enterprise Software Vs. Cloud Computing? - Credit Union Times - June 17th, 2017 [June 17th, 2017]
- 7 Tips for Securely Moving Data to the Cloud - Government Technology (blog) - June 20th, 2017 [June 20th, 2017]
- Chinese tech giant Alibaba joins key open-source cloud computing foundation - GeekWire - June 20th, 2017 [June 20th, 2017]
- Microsoft Could Surpass Amazon in Cloud Computing This Year (AMZN, MSFT) - Investopedia - June 20th, 2017 [June 20th, 2017]
- GDS Holdings Limited (GDS) Announces Strategic Partnership with Tencent Cloud - StreetInsider.com - June 20th, 2017 [June 20th, 2017]
- Cloud first - Philippine Star - June 20th, 2017 [June 20th, 2017]
- Three Considerations for Reducing Risk in Cloud Computing - CIOReview - June 21st, 2017 [June 21st, 2017]
- Cloud Computing and Digital Divide 2.0 - CircleID - CircleID - June 21st, 2017 [June 21st, 2017]
- Microsoft will ride artificial intelligence, cloud computing to higher ... - CNBC - June 21st, 2017 [June 21st, 2017]
- Cloud-Computing Business Lifts Oracle's Profit -- Update - Fox Business - June 21st, 2017 [June 21st, 2017]
- Report affirms continued cloud spend for US businesses in 2017 - Cloud Tech - June 22nd, 2017 [June 22nd, 2017]
- Catching up with an interconnected federal cloud - GCN.com - June 22nd, 2017 [June 22nd, 2017]
- Cloud-Computing Business Lifts Oracle's Profit -- 2nd Update - Fox Business - June 22nd, 2017 [June 22nd, 2017]
- Cisco adapts to the rise of cloud computing - The Economist - June 22nd, 2017 [June 22nd, 2017]
- Amazon accuses Walmart of bullying in cloud computing clash - BBC News - June 22nd, 2017 [June 22nd, 2017]
- Companies plan to spend more on cloud computing services this year, higher prices among drivers: Clutch - Canadian Underwriter - June 23rd, 2017 [June 23rd, 2017]
- Survey: businesses ramp up spending on cloud computing DC ... - DC Velocity - June 24th, 2017 [June 24th, 2017]
- Morgan Stanley: Cloud computing is at 'an inflection point' but how big will it get? - GeekWire - June 26th, 2017 [June 26th, 2017]
- How the cloud has changed education and training - TNW - June 26th, 2017 [June 26th, 2017]
- Cloud computing key to 4th industrial revolution - News VietNamNet - VietNamNet Bridge - June 26th, 2017 [June 26th, 2017]
- Lady Eli, Cloud Computing Among Workers for Brown - BloodHorse.com (press release) (registration) (blog) - June 26th, 2017 [June 26th, 2017]
- Microsoft signs cloud-computing partnership with Box - The Seattle Times - June 27th, 2017 [June 27th, 2017]
- Microsoft Signs Cloud Computing Partnership with Box - CIO Today - June 30th, 2017 [June 30th, 2017]
- US action on Microsoft email case could devastate cloud computing - Irish Times - June 30th, 2017 [June 30th, 2017]
- Cloud computing challenges today: Planning, process and people - TechTarget - July 2nd, 2017 [July 2nd, 2017]
- Five podcasts to catch up on the latest trends in cloud computing - TechTarget - July 2nd, 2017 [July 2nd, 2017]
- Microsoft reportedly set to lay off thousands as part of massive sales reorganization - GeekWire - July 3rd, 2017 [July 3rd, 2017]
- VMware to surge more than 20 percent because the Amazon cloud ... - CNBC - August 25th, 2017 [August 25th, 2017]
- Google Unveils Custom Hardware Chip for Cloud - Investopedia - August 25th, 2017 [August 25th, 2017]
- Cloud Computing Confirmed for Travers | TDN | Thoroughbred Daily ... - Thoroughbred Daily News - August 25th, 2017 [August 25th, 2017]
- Why 2017 Is The Year To Understand Cloud Computing - Nasdaq - August 25th, 2017 [August 25th, 2017]
- Biz Cloud Computing - Four States Homepage - August 25th, 2017 [August 25th, 2017]