Cloud computing & software-as-a-service (Saas) stocks have been hit hard the past week amid fears of rising interest rates & the economy opening up again.
More Details🧐 With the entry of COVID, organizations of all kinds were forced to transition to the cloud to access remote communication, collaboration & storage tools. E-commerce platform Shopify, video chat service Zoom, & e-signature provider DocuSign were some of the notable winners.
Since mid-November 2021, however, cloud stocks have been plummeting. Shopify & Zoom are each more than 50% below their 52-week highs, while DocuSign is 32% below its 52-week high. The ISE Cloud Computing Index is down 18% since mid-November 2021, while the WisdomTree Cloud Computing Fund is down 28% since mid-November.
Why is this Important🤔 Cloud stocks have been some of the best bets for investors over the past five years. Some analysts are not too worried about the drop & describe it as a buying opportunity, citing strong fundamentals.